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AMC Entertainment (AMC) Tops Q1 Earnings, Revenues Lag

AMC Entertainment Holdings Inc. AMC reported mixed financial results in the first quarter of 2016. While the bottom line outpaced the Zacks Consensus Estimate, the top line lagged the same.

GAAP net income was $28.3 million or 29 cents per share compared with $6.1 million or 6 cents per share in the prior-year quarter. First-quarter adjusted earnings per share of 27 cents handsomely beat the Zacks Consensus Estimate of 21 cents.

Quarterly total revenue was $766 million, up 17.3% year over year but short of the Zacks Consensus Estimate of $770 million. Segment wise, Admission revenues were $428.6 million, up 15.3% year over year. Food and beverage revenues were $244.2 million, up 21.8% year over year. Other theater revenues were $39.3 million, up 15.9% year over year.

First quarter operating expenses were $706.8 million, up 13.8% year over year. Operating income was $59.3 million, up a whopping 84.9% year over year. Operating margin was expanded to 7.7% from 4.9% in the year-ago quarter. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $146.5 million, up 26.6% year over year.

During the first quarter of 2016, Average screens-continuing operations were 5,313, up 8.8% year over year. Number of screens operated was up 8.5% to 5,380. Number of theatres operated was up 11.6% to 385. Screens per theatre were 14% compared with 14.4% in the prior-year quarter.  

During the first quarter of 2016, AMC Entertainment generated $22.9 million of cash from operations compared with $21.6 million in the year-ago quarter. Free cash flow, in the reported quarter was $72.1 million compared with $19.2 million in the prior-year quarter.

At the end of the first quarter of 2016, AMC Entertainment had $107.9 million of cash and cash equivalents and $1,861.4 million of outstanding debt compared with $211.3 million of cash and cash equivalents and $1,912.8 million of outstanding debt at the end of 2015. The debt-to-capitalization ratio, at first-quarter 2016 end, was 0.55, flat with the end of 2015.   

Zacks Rank & Stocks to Consider

AMC Entertainment currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry are Carmike Cinemas Inc. CKEC, Carnival Corp. CCL and The Madison Square Garden Co. MSG. All three stocks currently carry a Zacks Rank #2 (Buy).

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AMC ENTERTAINMT (AMC): Free Stock Analysis Report
 
CARNIVAL CORP (CCL): Free Stock Analysis Report
 
MADISON SQUAR-A (MSG): Free Stock Analysis Report
 
CARMIKE CINEMA (CKEC): Free Stock Analysis Report
 
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