AMC CEO says domestic box office has 'finally turned upwards'

By James Rogers

U.S. box office has its best March in five years, according to AMC CEO Adam Aron

AMC Entertainment Holdings Inc. CEO Adam Aron said domestic box office enjoyed its best March in five years, despite concerns about the lingering impact of the Hollywood strikes.

"My good news on this Easter Sunday is that in March, the domestic industry box office finally turned upwards," he wrote Sunday on X, formerly known as Twitter. "The best March in five years."

He added: "This is so encouraging in looking at the movie slate deeper into 2024. Many superb movies are coming." In his post, Aron used an image from "Kingdom of the Planet of the Apes," which hits theaters next month.

Related: AMC CEO says first part of 2024 'a slog to wade through'

AMC shares (AMC) ended Monday's session down 15.6% after ending the last trading session before Friday's market holiday down 14.3%.

Last week, Aron highlighted the opening of "Godzilla x Kong: The New Empire," director Adam Wingard's sequel to his successful "Godzilla vs. Kong," which came out in 2021.

"Godzilla x Kong: The New Empire opened large last night in movie theatres across the country," he wrote. "At this point, you know me well and that I prefer Apes over Lizards!" The investors who turned the movie-theater chain's shares into a meme stock in 2021 often refer to themselves as "apes" or "ape nation."

Related: AMC shares fall 14% after movie-theater chain announces $250 million stock sale

"Godzilla x Kong: The New Empire" led the domestic box office over the Easter weekend, bringing in an estimated $80 million, according to Comscore data. It was followed by "Ghostbusters: Frozen Empire," "Dune: Part Two," "Kung Fu Panda 4" and "Immaculate." However, total year-to-date domestic box-office revenue is estimated at $1.645 billion through Sunday, according to Comscore - 6% lower than in the same period in 2023.

Aron recently warned that the first part of 2024 would be a "slog" for the movie-theater chain, citing the ongoing impact of last year's writers and actors strikes.

Last week AMC filed to sell up to $250 million worth of stock. The company said it plans to use the proceeds to bolster liquidity; to repay, refinance, redeem or repurchase its existing debts; and for general corporate purposes.

Related: AMC clinches deal with NBC to show live Olympics coverage in theaters

During the conference call to discuss AMC's fourth-quarter results in February, Aron highlighted the need for cash, pointing to the $418 million raised through the company's AMC Preferred Equity Units, which were converted to common stock in August 2023.

AMC's total cash and cash equivalents at the end of 2023 were $884.3 million, up from $631.5 at the end of 2022. The company's total debt, including finance leases, at the end of 2023 was around $4.56 billion, down from $5.01 billion at the end of 2022.

In December, AMC completed an at-the-market equity offering, raising approximately $350 million as it attempts to reduce its debt burden.

Related: AMC's stock to remain unstable until connections re-established with institutional investors, says Benchmark

AMC's stock has seen a decline in recent months and is down 48.7% this year, compared with the S&P 500 index's SPX gain of 9.9%.

-James Rogers

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04-01-24 1641ET

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