AMC Theatres Announces AMC's Go Plan a Multi-Year Plan to Invest up to $1.5 Billion Over Four to Seven Years, Greatly Improving the Movie-Going Experience at AMC

Business Wire 7-Nov-2024 6:30 PM

AMC "goes on offense" with plans to expand its Premium Large Format ("PLF"), Extra Large Format ("XLF") and Laser at AMC footprint over the next four to seven years

AMC's Go Plan also includes theatre renovations and seating upgrades at AMC theatres in the United States and ODEON Cinemas in Europe

AMC's Go Plan positions AMC to thrive as the box office recovery gains momentum

AMC Theatres® (NYSE:AMC), the largest theatrical exhibitor in the United States and in the world, today announced AMC's Go Plan, an ambitious investment in the future of moviegoing at AMC. Through AMC's Go Plan, AMC expects to invest between $1 billion and $1.5 billion over the next four to seven years, greatly enhancing its locations in the United States and Europe.

With AMC's Go Plan, AMC will provide guests with an even greater selection of premium experiences, immersive sight & sound enhancements, more comfortable seating and upgraded theatres, as well as other initiatives.

AMC's Go Plan includes investing in some of AMC's best and most productive theatres. In addition to recent and current renovations at AMC flagship locations like AMC Lincoln Square 13 & AMC Empire 25 in New York, and AMC Burbank 16 in Los Angeles, AMC has a long list of high-performing theatres that could receive significant seating and other upgrades as part of AMC's Go Plan.

Similarly, for ODEON Cinemas in Europe, there are opportunities to develop a meaningful number of additional Luxe Cinemas, especially in the UK.

On the premium moviegoing front, AMC's consumer data makes it clear that moviegoers are increasingly seeking out premium large format experiences. Through AMC's Go Plan, AMC expects to greatly expand its premium large format (PLF), and extra-large format (XLF) offerings, as well as expand the number of Laser at AMC auditoriums. This includes IMAX® with Laser at AMC, Dolby Cinema at AMC, PRIME at AMC, and AMC's new XLF format – XL at AMC.

The timing and extent of AMC's Go plan will be calibrated according to the box office recovery trajectory and AMC's available capital, liquidity levels, and leverage ratios. Components of the plan include:

• Not so long ago, 42 of AMC's 223 global IMAX locations offered the superb IMAX with Laser product, including laser projection, enhanced 12 channel sound system and significant recliner or plush rocker seating upgrades. Through AMC's Go Plan, the number of IMAX deployments will increase, and IMAX with Laser could be installed in more than two-thirds of our IMAX auditoriums.

• Through AMC's Go Plan, the number of PRIME at AMC PLF houses could increase from 31 to up to 100.

• The AMC Go Plan would also significantly increase the number of Dolby Cinema at AMC locations.

• At the end of September, AMC had 2,137 auditoriums in the United States that featured Laser at AMC. The Company expects to double or triple that count over the next seven years.

Finally, AMC's Go Plan also includes the expected roll out of our newest initiative, XL at AMC, for 200-250 auditoriums, in addition to the 68 XL auditoriums that we already have in Europe. XL at AMC will be offered in auditoriums where the screen is at least 40-feet wide. All XL at AMC auditoriums will feature 4K laser projection on the biggest non-PLF screen in the building. Every XL at AMC auditorium will receive a branded entry, and easy-to-identify branding on the AMC website and mobile app.

AMC Chairman and CEO Adam Aron commented:

"With AMC's Go Plan, AMC is officially going back on offense. First and foremost, that means investing in the theatrical experience in our movie theatres, both at AMC locations in the U.S. and ODEON Cinemas in Europe. This Go Plan is AMC's most aggressive, forward-looking theatrical investment initiative this decade, and will greatly enhance the moviegoing experience for millions of our U.S. guests. And, of course, we will manage the timing of our Go Plan investments consistent with the prudent management of our debt levels, leverage, and liquidity."

About AMC Entertainment Holdings, Inc.

AMC is the largest movie exhibition company in the United States, the largest in Europe and the largest throughout the world with approximately 900 theatres and 10,000 screens across the globe. AMC has propelled innovation in the exhibition industry by: deploying its Signature power-recliner seats; delivering enhanced food and beverage choices; generating greater guest engagement through its loyalty and subscription programs, website, and mobile apps; offering premium large format experiences and playing a wide variety of content including the latest Hollywood releases and independent programming. In addition, in 2023 AMC launched AMC Theatres Distribution with the highly successful releases of TAYLOR SWIFT | THE ERAS TOUR and RENAISSANCE: A FILM BY BEYONCÉ. AMC Theatres Distribution expects to release more concert films with the world's leading musical artists in the years ahead. For more information, visit www.amctheatres.com.

Forward-Looking Statements

This communication includes "forward-looking statements" within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In many cases, these forward-looking statements may be identified by the use of words such as "will," "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "indicates," "projects," "goals," "objectives," "targets," "predicts," "plans," "seeks," and variations of these words and similar expressions. Examples of forward-looking statements include statements we make regarding our expected revenue, net loss, capital expenditure, Adjusted EBITDA and estimated cash and cash equivalents, the potential for sustained growth, our cash generation potential, our financial runway, the continued box office recovery as well as the future box office outlook. Any forward-looking statement speaks only as of the date on which it is made. These forward-looking statements may include, among other things, statements related to AMC's current expectations regarding the performance of its business, financial results, liquidity and capital resources, and the impact to its business and financial condition of, and measures being taken in response to, the COVID-19 virus, and are based on information available at the time the statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks, trends, uncertainties and other facts that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks, trends, uncertainties and facts include, but are not limited to: the sufficiency of AMC's existing cash and cash equivalents and available borrowing capacity; availability of financing upon favorable terms or at all; AMC's ability to obtain additional liquidity, which if not realized or insufficient to generate the material amounts of additional liquidity that will be required unless it is able to achieve more normalized levels of operating revenues, likely would result with AMC seeking an in-court or out-of-court restructuring of its liabilities; the effectiveness of the refinancing transactions completed in the third quarter of 2024 to allow AMC to generate net positive operating cash flow and long-term profitability to overcome liquidity concerns; the impact of the COVID-19 virus on AMC, the motion picture exhibition industry, and the economy in general; increased use of alternative film delivery methods or other forms of entertainment; the continued recovery of the North American and international box office; AMC's significant indebtedness, including its borrowing capacity and its ability to meet its financial maintenance and other covenants and limitations on AMC's ability to take advantage of certain business opportunities imposed by such covenants; shrinking exclusive theatrical release windows; the seasonality of AMC's revenue and working capital; intense competition in the geographic areas in which AMC operates; risks relating to impairment losses, including with respect to goodwill and other intangibles, and theatre and other closure charges; motion picture production and performance (including as a result of production delays to the release of movies caused by labor stoppages, including but not limited to the Writers Guild of America strike and the Screen Actors Guild-American Federation of Television and Radio Artists strike that occurred during 2023); general and international economic, political, regulatory and other risks, including but not limited to rising interest rates; AMC's lack of control over distributors of films; limitations on the availability of capital, including on the authorized number of Class A common stock; dilution of voting power through the issuance of Class A common stock underlying the Exchangeable Notes and the issuance of preferred stock; AMC's ability to achieve expected synergies, benefits and performance from its strategic initiatives; AMC's ability to refinance its indebtedness on favorable terms; AMC's ability to optimize its theatre circuit; AMC's ability to recognize interest deduction carryforwards, net operating loss carryforwards, and other tax attributes to reduce future tax liability; supply chain disruptions, labor shortages, increased cost and inflation; and other factors discussed in the reports AMC has filed with the SEC. Should one or more of these risks, trends, uncertainties, or facts materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by the forward-looking statements contained herein. Accordingly, we caution you against relying on forward-looking statements, which speak only as of the date they are made.

Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. For a detailed discussion of risks, trends and uncertainties facing AMC, see the section entitled "Risk Factors" and elsewhere in our most recent annual report on Form 10-K and quarterly report on Form 10-Q, as well as our other filings with the SEC, copies of which may be obtained by visiting our Investor Relations website at investor.amctheatres.com or the SEC's website at www.sec.gov.

AMC does not intend, and undertakes no duty, to update any information contained herein to reflect future events or circumstances, except as required by applicable law.

Category: Company Release

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