UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(mark one)
[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended December 28, 1995
or
[] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from __________ to __________
Commission File Number 01-12429
AMC ENTERTAINMENT INC.
(Exact name of registrant as specified in its charter)
Delaware 43-1304369
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
106 West 14th Street
Kansas City, Missouri 64105-1977
(Address of principal executive offices) (Zip Code)
(816) 221-4000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes x No ________
Number of Shares
Title of Each Class of Common Stock Outstanding as of December 28, 1995
Common Stock, 66 2/3 cents par value 5,368,380
Class B Stock, 66 2/3 cents par value 11,157,000
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AMC ENTERTAINMENT INC. AND SUBSIDIARIES
INDEX
Page Number
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Consolidated Statements of Operations 3
Consolidated Balance Sheets 4
Consolidated Statements of Cash Flows 5-6
Notes to Consolidated Financial Statements 7-8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS 9-12
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS 12
ITEM 4. SUBMISSION OF MATTERS TO A VOTE
OF SECURITY HOLDERS 13
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 14
SIGNATURES 15
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AMC ENTERTAINMENT INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Thirteen Thirty-nine
Weeks Ended Weeks Ended
12/28/95 12/29/94 12/28/95 12/24/94
(Unaudited) (Unaudited)
Revenues
Admissions $100,944 $ 92,933 $ 324,737 $286,160
Concessions 45,484 41,881 148,323 131,387
Other 8,998 7,811 21,242 18,150
Total revenues 155,426 142,625 494,302 435,697
Film rentals 50,761 46,448 166,054 145,082
Concession merchandise 7,731 6,458 24,566 20,469
Other 61,016 55,095 185,772 169,724
Total cost of
operations 119,508 108,001 376,392 335,275
Depreciation and
amortization 10,399 8,977 30,842 27,138
General and
administrative expenses 10,637 9,777 34,555 29,380
Total expenses 140,544 126,755 441,789 391,793
Operating income 14,882 15,870 52,513 43,904
Other expense (income)
Interest expense
Corporate borrowings 5,259 6,066 16,404 18,689
Capitalized leases 2,624 2,865 8,106 8,523
Investment income (1,958) (2,064) (6,624) (7,581)
Loss (gain) on
disposition of assets (159) 4 (21) 79
Earnings before income taxes
and extraordinary item 9,116 8,999 34,648 24,194
Income tax provision 3,800 3,600 14,300 9,800
Net earnings before
extraordinary item 5,316 5,399 20,348 14,394
Extraordinary item -
Loss on early
extinguishment of debt
(net of income tax
benefit of $13,400) (19,350) - (19,350) -
Net earnings (loss) $(14,034) $ 5,399 $ 998 $ 14,394
Preferred dividends 1,750 1,750 5,250 5,250
Net earnings (loss) for
common shares $(15,784) $3,649 $ (4,252) $ 9,144
Earnings per share before
extraordinary item:
Primary $ 0.21 $ .22 $0.90 $0.55
Fully diluted $ 0.21 $ .22 $0.89 $0.55
Earnings (loss) per share:
Primary $ (.93) $ 0.22 $ (0.25) $0.55
Fully diluted $ (.93) $ 0.22 $ (0.25) $0.55
AMC ENTERTAINMENT INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
December 28, March 30,
1995 1995
(Unaudited)
ASSETS
Current assets:
Cash and equivalents $ 22,687 $ 71,233
Investments - 69,144
Receivables, net of allowance
for doubtful accounts of
$1,659 as of December 28, 1995, and
$1,529 as of March 30, 1995 18,716 8,572
Other current assets 21,732 12,069
Total current assets 63,135 161,018
Property, net 321,172 279,904
Intangible assets, net 38,707 42,926
Other long-term assets 41,193 38,306
Total assets $464,207 $522,154
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 38,447 $ 29,047
Accrued expenses and other liabilities 36,288 33,794
Current maturities of corporate
borrowings and capital lease obligations 2,879 2,516
Total current liabilities 77,614 65,357
Corporate borrowings 136,112 200,183
Capital lease obligations 59,795 64,805
Other long-term liabilities 37,041 34,421
Total liabilities 310,562 364,766
Stockholders' equity:
Cumulative Convertible Preferred Stock;
4,000,000 shares issued and
outstanding (aggregate liquidation
preference of $100,000) 2,667 2,667
Common Stock; 5,388,880 shares issued
as of December 28, 1995,
and 5,306,380 shares as of March 30, 1995 3,593 3,538
Convertible Class B Stock; 11,157,000
shares issued and outstanding 7,438 7,438
Additional paid-in capital 107,986 107,163
Retained earnings 32,330 36,582
Less - Common Stock in treasury, at cost, 154,014 157,388
20,500 shares as of December 28, 1995 369 -
Total stockholders' equity 153,645 157,388
Total liabilities and stockholders' equity $464,207 $522,154
AMC ENTERTAINMENT INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Thirty-nine
Weeks Ended
December 28, December 29,
1995 1994
INCREASE (DECREASE) IN CASH AND EQUIVALENTS (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 998 $ 14,394
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization - property 24,163 22,086
- other long-term assets 6,679 5,052
Gain on sale of available for sale investments - (1,407)
Loss (gain) on sale of other long-term assets (21) 79
Extraordinary item 19,350 -
Change in assets and liabilities:
Receivables (10,144) (111)
Other current assets 3,737 (867)
Accounts payable 9,400 6,879
Accrued expenses and other liabilities 4,517 (313)
Other, net 2,887 42
Total adjustments 60,568 31,440
Net cash provided by operating activities 61,566 45,834
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (72,496) (29,037)
Purchases of available for sale investments (424,134) (254,982)
Proceeds from maturities of available for
sale investments 493,278 266,422
Proceeds from sales of available for
sale investments - 11,689
Proceeds from disposition of other
long-term assets 949 30
Other, net (6,790) (1,922)
Net cash used in investing activities (9,193) (7,800)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments under capital lease
obligations (1,845) (1,583)
Repurchase of Senior and Senior
Subordinated Notes (220,734) -
Other repayments (398) (25)
Borrowings under revolving credit facility 130,000 -
Proceeds from exercise of stock options 878 203
Dividends paid on preferred stock (5,250) (5,483)
Deferred financing costs and other (3,570) -
Net cash used in financing activities (100,919) (6,888)
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS (48,546) 31,146
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 71,233 32,319
CASH AND EQUIVALENTS AT END OF PERIOD $22,687 $ 63,465
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AMC ENTERTAINMENT INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
(Unaudited):
During the thirty-nine weeks ended December 28, 1995, the Company
executed a new lease agreement in connection with the expansion of an
existing theatre. Based on the terms of the new agreement, the lease
has been classified as an operating lease and accordingly, the capital
lease obligation of $2,805 related to the previous agreement was
removed from the consolidated balance sheet.
During the thirty-nine weeks ended December 29, 1994, a capital
lease obligation of $1,363 was incurred in connection with property
acquired.
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Thirty-nine
Weeks Ended
12/28/95 12/29/95
(Unaudited)
Cash paid during the period for:
Interest (net of amounts capitalized
of $2,260 and $425) $ 29,291 $ 21,066
Income taxes 9,295 15,069
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