AMC Entertainment shines when the lights go down. The company, whose initials once stood for American Multi-Cinema, is the #2 movie theater chain in the US (behind Regal Entertainment). It owns, partially owns, or operates about 350 theaters with 5,000 screens, most of which are in megaplexes (units with more than 12 screens and stadium seating). Nearly all of its theaters are in the US, though it does have a few in Europe. AMC also owns about 25% of MovieTickets.com. Chinese investment firm Wanda Group bought AMC in 2012 and took the company public again in 2013.
The company has theaters in all major US markets, as well as one theater in Canada, one in the UK, and a partial interest in two in Hong Kong. It once had international holdings, but has spent the last several years divesting the majority of its theaters in Argentina, Brazil, Canada, Chile, France, Hong Kong, Japan, Mexico, Portugal, Spain, and Uruguay as part of its strategic focus on the US.
AMC generates about 70% of its revenue from ticket sales, while more than 25% comes from the concession stand. The company also sells digitally projected on-screen advertising and pre-show entertainment videos through its National CineMedia joint venture with Regal and Cinemark. It is the largest IMAX exhibitor in the world, with a 44% market share in the US.
The company’s revenue decreased by 2% to $2.7 billion in fiscal 2014 compared to $2.75 billion in fiscal 2013. The slight drop was primarily due decreased Admissions revenues partially offset by an increase in average ticket price.
AMC’s net income decreased by 82% to $64 million in fiscal 2014 compared to $364 million in fiscal 2013. The drop in net income was largely caused by decreased revenue, impairment of long-lived assets, and higher tax liabilities.
The company's cash flow from operations decreased by more than $60 million during fiscal 2014, with cash on hand reported at about $297 million.
AMC is busy buying up smaller theater operators and upgrading its technologies to allow theaters to charge higher ticket prices. Besides increasing theater technology, AMC is also using enhanced food and beverage options to entice movie lovers. Its dine-in theaters combine the dinner and a movie experience with full kitchen facilities, seat-side servers, and a separate bar and lounge area. The company has converted about a dozen smaller theaters with the new dine-in theatre option and plans to open 20 more in the next five years. In addition, it is testing another food and beverage concept in conjunction with Union Square Hospitality Group named DIT Express. With DIT Express, currently offered at two theaters, guests order food and drinks in the lobby and the order is delivered to their reserved seat.