EXHIBIT 99.1
AMC Entertainment Inc. Reports Results
for Fourth Quarter and FY 2003
KANSAS CITY, Missouri (May 20, 2003)—AMC Entertainment, one of the
world’s leading theatrical exhibition companies, today announced results for the fourth quarter and for the fiscal year
2003.
Revenues for the fourth quarter were a record $446 million, an 8 percent increase from pro-forma (which treats the results from the
General Cinema and Gulf States acquisitions as if acquired at the beginning of fiscal 2002) revenues of $415 million last year. Not
considering pro-forma impacts, revenues increased 32 percent from $339 million last year.
For
fiscal 2003, revenues were a record $1.79 billion, a 7 percent increase over pro-forma revenues of $1.68 billion last year. Not
considering pro-forma impacts, revenues increased 33 percent from $1.34 billion last year.
Net loss for common
shares for the fourth quarter was $24.2 million (67 cents per diluted share) compared to pro-forma net loss of $18.2
million (68 cents per diluted share) last year. Last year’s net loss for common shares not considering pro-forma
impacts was $18.4 million (76 cents per diluted share).
For fiscal 2003, net loss
for common shares was $47.5 million ($1.31 per diluted share) compared to pro-forma net loss of $35.8 million ($1.37
per diluted share) last year. Last year’s net loss not considering pro-forma impacts was $40.9 million ($1.73 per common
share).
Adjusted EBITDA for the fourth quarter was a record $52 million, an 8 percent increase from pro-forma Adjusted EBITDA of $48
million last year. Not considering pro-forma impacts, Adjusted EBITDA increased 34 percent from $39 million last year.
For fiscal 2003, Adjusted EBITDA was a fiscal year record $230 million, a 12 percent increase over pro-forma Adjusted EBITDA
of $205 million last year. Not considering pro-forma impacts, Adjusted EBITDA increased 43 percent from $161 million last year.
“Our asset quality and continued execution of our strategic plan, including the
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successful integration of two acquisitions, contributed to record results in fiscal 2003,” said Peter Brown, chairman and
chief executive officer. “With our growing free cash flow and AMC’s brand strength we are well positioned to continue
our 80-plus year tradition of industry innovation and leadership as we move into a new fiscal year.”
Highlights of fiscal 2003 included:
Record revenues and adjusted EBITDA
Continued improvement in the quality of the AMC Theatres portfolio with the closing of 111 screens and the successful opening of
93 new megaplex screens
Successful integration of the General Cinema and Gulf States acquisitions
Growth in free cash flow
Substantial liquidity and improvement in credit profile.
This press release contains non-GAAP financial measures as defined by Regulation G of the
Securities and Exchange Commission. As required, the attached financial summary contains a discussion of management’s use of
these measures and reconciliations to the most directly comparable GAAP measures. In addition, reconciliations of GAAP and non-GAAP
financial measures are available on the Company’s web site, www.amctheatres.com. These non-GAAP financial measures
should be considered in addition to, not as a substitute for or superior to, the financial measures prepared in accordance with
GAAP. The financial measures as determined by management may not be comparable to the same financial measures as reported by other
companies. As used herein, GAAP refers to generally accepted accounting principles in the United States of America.
Investors will have the opportunity to listen to the earnings conference call and view the
supporting slide presentation at 9 a.m. CDT on Tuesday, May 20, 2003, through the website www.amctheatres.com. Listeners can also
access the call by dialing (877) 307-8182, or (706) 634-8221 for international callers. A replay of the call will be available on
the website and by phone through Tuesday, June 3, 2003. The telephone replay can be accessed by calling (800) 642-1687, or (706)
645-9291 for international callers, and entering the conference ID number 9828682.
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AMC Entertainment Inc. is a leader in the theatrical exhibition industry. Through its circuit of AMC Theatres, the Company
operates 239 theatres with 3,524 screens in the United States, Canada, France, Hong Kong, Japan, Portugal, Spain, Sweden and the
United Kingdom. Its Common Stock trades on the American Stock Exchange under the symbol AEN. The Company, headquartered in Kansas
City, Mo., has a website at www.amctheatres.com.
Any forward-looking statements contained in this release, which reflect management’s best judgment based on factors
currently known, involve risks and uncertainties. Actual results could differ materially from those anticipated in the
forward-looking statements included herein as a result of a number of factors, including among others the Company’s ability
to enter into various financing programs, the performance of films licensed by the Company, competition, construction delays, the
ability to open or close theatres and screens as currently planned, domestic and international political, social and economic
conditions, demographic changes, increases in demand for real estate, changes in real estate, zoning and tax laws, unforeseen
changes in operating requirements, the Company’s ability to identify suitable acquisition candidates and to successfully
integrate acquisitions into its operations and results of significant litigation.
Contact:
Richard J. King, Senior Vice President, Corporate Communications
AMC Entertainment Inc.
(816) 221-4000
(FINANCIAL SUMMARY FOLLOWS)
AMC ENTERTAINMENT INC.
FINANCIAL SUMMARY
(In thousands, except per share data)
Fourteen/Thirteen Weeks Ended
Fifty-three/Fifty-two Weeks Ended
Pro Forma(6)
Pro Forma(6)
April 3,
2003
March 28,
2002
March 28,
2002
April 3
2003
March 28,
2002
March 28,
2002
Statement of Operations Data:
Admissions
$308,265
$282,060
$231,077
$1,217,083
$1,125,999
$ 901,566
Concessions
113,666
112,689
90,581
469,966
455,465
359,042
Other theatre
12,086
10,831
7,723
48,828
52,518
40,156
NCN and other
12,409
9,297
9,297
55,693
41,768
41,768
Total revenues
446,426
414,877
338,678
1,791,570
1,675,750
1,342,532
Film exhibition costs
160,900
146,060
120,471
663,416
608,175
487,577
Concession costs
13,774
15,209
11,807
58,520
61,823
45,756
Theatre operating expense
112,787
109,172
84,106
438,161
428,221
328,691
Rent
78,971
72,846
60,470
302,445
288,123
236,829
NCN and other
14,075
10,962
10,962
52,444
45,264
45,264
General and administrative
14,745
12,925
12,439
68,254
39,397
37,798
Preopening expense
349
357
357
3,227
4,345
4,345
Theatre and other closure expense
120
300
300
5,416
2,124
2,124
Reorganization items
-
1,457
-
-
6,026
-
Depreciation and amortization
33,767
31,642
25,872
127,020
122,822
99,742
Impairment of long-lived assets
19,563
4,668
4,668
19,563
4,668
4,668
(Gain) loss on disposition of assets
(353)
5
5
(1,385)
(1,821)
(1,821)
Total costs and expenses
448,698
405,603
331,457
1,737,081
1,609,167
1,290,973
Other expense
-
-
-
-
3,754
3,754
Interest expense
20,892
18,791
17,060
77,800
67,684
60,760
Investment income
(987)
(1,244)
(1,244)
(3,509)
(2,087)
(2,087)
Total other expense
19,905
17,547
15,816
74,291
69,351
62,427
Loss before income taxes
(22,177)
(8,273)
(8,595)
(19,802)
(2,768)
(10,868)
Income tax provision
(4,200)
1,100
1,000
500
3,600
600
Net loss
$ (17,977)
$(9,373)
$(9,595)
$(20,302)
$(6,368)
$(11,468)
Preferred dividends
6,268
8,834
8,834
27,165
29,421
29,421
Net loss for common shares
$ (24,245)
$ (18,207)
$ (18,429)
$(47,467)
$ (35,789)
$ (40,889)
Net loss per share:
Basic
$(0.67)
$(0.68)
$(0.76)
$(1.31)
$(1.37)
$(1.73)
Diluted
$(0.67)
$(0.68)
$(0.76)
$(1.31)
$(1.37)
$(1.73)
Average shares outstanding:
Basic
36,302
26,784
24,369
36,296
26,107
23,692
Diluted
36,302
26,784
24,369
36,296
26,107
23,692
Fourteen/Thirteen Weeks Ended
Fifty-three/Fifty-two Weeks Ended
Pro Forma(6)
Pro Forma(6)
April 3,
2003
March 28,
2002
March 28,
2002
April 3,
2003
March 28,
2002
March 28,
2002
Other Financial Data:
Net cash provided by operating activities
$ 14,874
$ -
$ 28,787
$128,747
$ -
$101,091
Net cash used in investing activities
(31,264)
-
(74,250)
(137,201)
-
(144,510)
Net cash provided by financing activities
20,591
-
216,274
33,437
228,879
Adjusted EBITDA (1)
51,669
47,818
38,538
229,591
205,189
161,059
After tax cash flow (1)
28,374
-
19,146
131,356
-
91,470
Net capital expenditures (2)
16,411
-
30,074
52,982
-
77,274
Free cash flow (3)
11,963
-
(10,928)
78,374
-
14,196
Other Data:
Screen additions
-
16
16
95
158
146
Screen acquisitions
-
-
68
641
-
68
Screen dispositions
40
24
24
111
86
86
Average screens
3,512
3,518
2,839
3,516
3,484
2,804
Attendance (in thousands)
48,160
48,994
40,459
198,117
196,301
158,884
Number of screens operated (period end)
3,524
3,540
2,899
Number of theatres operated (period end)
239
250
181
Screens per theatre circuit wide
14.7
14.2
16.0
April 3,
2003
March 28,
2002
Balance Sheet Data:
Cash and equivalents
$ 244,412
$ 219,432
Corporate borrowings
668,661
596,540
Capital and financing lease obligations
59,101
57,056
Net debt(4)
483,350
434,164
Stockholders' equity
291,904
258,356
Total shares (5)
76,481
71,501
(1)We have included Adjusted EBITDA and After tax cash flow because we believe they provide investors with additional
information to measure our performance and liquidity, estimate our value and evaluate our ability to service debt. In
addition, we use Adjusted EBITDA for incentive compensation purposes. Adjusted EBITDA represents earnings before interest
expense, income tax provision, depreciation and amortization as adjusted for impairment of long-lived assets, stock-based and
special compensation expense (related primarily to forgiveness of loans to executive officers) included in general and
administrative, preopening expense, theatre and other closure expense, reorganization items, disposition of assets, investment
income and other expense incurred in connection with the issuance of Preferred Stock in fiscal 2002.
(2)We have included Net capital expenditures because we believe it provides investors with additional
information concerning our net cash requirements for property, excluding acquisitions.
(3)Represents After tax cash flow less Net capital expenditures. We have included Free cash flow because we
believe it provides investors with additional information concerning the resources available for strategic opportunities including,
among others, to invest in the business, make acquisitions and strengthen the balance sheet.
(4)Represents corporate borrowings and capital and financing lease obligations less cash and equivalents. We
have included Net debt because we believe it provides investors with additional information to estimate our value and evaluate our
leverage.
(5)Represents outstanding shares of Common Stock and Class B Stock and incremental shares issuable under stock
options, using the treasury stock method, stock awards and upon the conversion of Series A Convertible Preferred Stock to Common
Stock.
(6)The unaudited pro forma financial information presented above sets forth our historical statements of operations
for the periods indicated and gives effect to the acquisitions of GC Companies, Inc. and Gulf States Theatres as adjusted for the
related purchase price allocations. Such information is presented for comparative purposes only and does not purport to
represent what our results of operations would actually have been had these transactions occurred on the date indicated or to
project our results of operations for any future period or date. The unaudited pro forma financial information should be read
in conjunction with our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 28,
2002, and our reports on Form 8-K filed on March 13, 2002, March 18, 2002 and April 10, 2002.
The following tables provide reconciliations of certain of our non-GAAP financial measures to their most directly comparable
GAAP measures.
Fourteen/Thirteen Weeks Ended
Fifty-three/Fifty-two Weeks Ended
Pro Forma (6)
Pro Forma (6)
April 3,
2003
March 28,
2002
March 28,
2002
April 3,
2003
March 28,
2002
March 28,
2002
Adjusted EBITDA Reconciliation
(In thousands)
Net loss
$ (17,977)
$(9,373)
$ (9,595)
$(20,302)
$(6,368)
$(11,468)
Interest expense
20,892
18,791
17,060
77,800
67,684
60,760
Income tax provision
(4,200)
1,100
1,000
500
3,600
600
Depreciation and amortization
33,767
31,642
25,872
127,020
122,822
99,742
Impairment of long-lived assets
19,563
4,668
4,668
19,563
4,668
4,668
Investment income
(987)
(1,244)
(1,244)
(3,509)
(2,087)
(2,087)
Stock-based and special compensation
495
115
115
21,261
442
442
Theatre and other closure expense
120
300
300
5,416
2,124
2,124
(Gain) loss on disposition of assets
(353)
5
5
(1,385)
(1,821)
(1,821)
Preopening expense
349
357
357
3,227
4,345
4,345
Reorganization items
-
1,457
-
-
6,026
-
Other expense
-
-
-
-
3,754
3,754
Adjusted EBITDA
$ 51,669
$47,818
$38,538
$229,591
$205,189
$161,059
Fourteen/Thirteen Weeks Ended
Fifty-three/Fifty-two Weeks Ended
April 3,
2003
March 28,
2002
April 3,
2003
March 28,
2002
After Tax Cash Flow and
Free Cash Flow Reconciliations
(In thousands)
Net cash provided by operating
activities
$14,874
$ 28,787
$128,747
$ 101,091
Gain (loss) on disposition of
assets
353
(5)
1,385
1,821
Changes in working capital
items and other
509
1,704
(8,514)
(502)
Deferred taxes excluding
benefit for impairment of
long-lived assets
12,638
(11,340)
9,738
(10,940)
After tax cash flow
$28,374
$19,146
$131,356
$91,470
Less Net capital expenditures
16,411
30,074
52,982
77,274
Free cash flow
$11,963
$ (10,928)
$ 78,374
$14,196
Fourteen/Thirteen Weeks Ended
Fifty-three/Fifty-two Weeks Ended
April 3,
2003
March 28,
2002
April 3,
2003
March 28,
2002
Net Capital Expenditures Reconciliation
(In thousands)
Net cash used in investing
activities
$ (31,264)
$ (74,250)
$(137,201)
$(144,510)
Acquisition of GC Companies, Inc.,
net of cash acquired and proceeds
from sale of venture capital
investments
(95)
-
47,314
-
Acquisition of Gulf States
Theatres
14
45,020
752
45,020
Purchase of leased furniture,
fixtures and equipment
-
-
7,052
23,739
Proceeds from disposition of
long-term assets
(617)
(2,717)
(5,494)
(6,647)
Other, net
3,794
1,873
4,983
4,243
Construction projects costs
reimbursed by landlord for
financing activities
11,757
-
29,612
881
Net capital expenditures
$(16,411)
$ (30,074)
$(52,982)
$ (77,274)