AMC Entertainment Holdings, Inc., through its direct and indirect subsidiaries, operates in the theatrical exhibition business. The company owns, operates, or has interests in theatres primarily located in the United States. The company’s subsidiaries include AMC Entertainment Inc. (AMCE) and American Multi-Cinema, Inc. (OpCo). As of December 31, 2014, the company owned, operated or held interests in 348 theatres with a total of 4,960 screens primarily in North America. Its main markets are New York, Los Angeles, Chicago, Washington, D.C. and San Francisco. Across its entire circuit, approximately 190 million customers visited its theatres during the calendar year 2014. In 2005, the company formed a joint venture with Regal Entertainment Group (Regal) and combined its respective cinema screen advertising businesses into a company called National CineMedia, LLC (NCM). In 2005, Cinemark Holdings, Inc. (Cinemark) joined NCM by contributing its cinema screen advertising business, and together with the company and Regal, became ‘Founding Members’ of NCM. As of December 31, 2014, the company owned 14.96% ownership interest in NCM. In 2011, the company launched a distribution company, called Open Road Films, LLC (Open Road Films) along with another theatrical exhibition chain. Open Road Films is an acquisition-based domestic theatrical distribution company that concentrates on wide-release movies. In 2011, the company entered into an agreement with Union Square Events (a division of Union Square Hospitality Group) to develop service concepts, menu offerings, recipes and throughput processes for its Enhanced Food and Beverage strategic initiative. The company holds a 29% interest in Digital Cinema Implementation Partners, LLC (DCIP), a joint venture charged with implementing digital cinema in its theatres, which has allowed the company to substantially complete its planned digital deployments. The company owns a 15.45% interest in Digital Cinema Distribution Coalition, LLC (DCDC), a joint venture with certain other exhibitors and film distributors. DCDC was formed to develop a satellite distribution network for feature films and other digital cinema content. As of December 31, 2014, 307 of its theatre locations are equipped to receive content via the DCDC network with an additional 32 locations awaiting landlord approvals. Film Licensing The company licenses ‘first-run’ motion pictures from distributors owned by major film production companies and from independent distributors. The company licenses films on a film-by-film and theatre-by-theatre basis. The company obtains these licenses based on various factors, including number of seats and screens available for a particular picture, revenue potential and the location and condition of its theatres. Food and Beverage Food and beverage items include popcorn, soft drinks, candy, hot dogs, premium food and beverage items, specialty drinks (including premium beers, wine and mixed drinks), healthy choice items and made to order hot foods, including menu choices such as curly fries, chicken tenders and mozzarella sticks. Different varieties of food and beverage items are offered at its theatres based on preferences in that particular geographic region. As of December 31, 2014, the company has implemented dine-in theatre concepts, including AMC Red Kitchen at 16 locations, which feature full kitchen facilities, seat-side servers and a separate bar and lounge area. Strategy The company aims to maintain and increase its leadership position and competitive advantage through the following five tightly defined strategies: more comfort and convenience; enhanced food and beverage; greater engagement and loyalty; premium sight and sound; and targeted programming. Regulations The company’s theatres must comply with Title III of the Americans with Disabilities Act (ADA). Compliance with the ADA requires that public accommodations ‘reasonably accommodate’ individuals with disabilities and that new construction or alterations made to ‘commercial facilities’ conform to accessibility guidelines unless ‘structurally impracticable’ for new construction or technically infeasible for alterations. Seasonality The most marketable motion pictures are usually released during the summer and the year-end holiday seasons. Therefore, its business is highly seasonal, with higher attendance and revenues occurring during the summer months and holiday seasons. History AMC Entertainment Holdings, Inc. was founded in 1920.
amc entertainment hlds-cl a
(AH9:Berlin Stock Exchange)
One AMC Way
11500 Ash Street
Leawood, KS 66211
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