<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) JULY 16, 1998
AMC ENTERTAINMENT INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-8747 43-1304369
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
106 W. 14TH STREET, KANSAS CITY, MO 64105-1977
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (816) 221-4000
1
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ITEM 5. OTHER EVENTS
(a) Attatched as Exhibit 99.1 and incorporated by reference is AMC
Entertainment Inc.'s earnings release for the first quarter of
fiscal year 1999, which was issued on July 16, 1998.
2
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(b) Set forth below are AMC Entertainment, Inc.'s unaudited Consolidated
Statements of Operations for the thirteen weeks ended July 2, 1998 and July
3, 1997 and the unaudited Consolidated Balance Sheets as of July 2, 1998 and
April 2, 1998.
AMC ENTERTAINMENT INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Thirteen
Weeks Ended
July 2, July 3,
1998 1997
---- ----
(Unaudited)
<S> <C> <C>
Revenues
Admissions $155,020 $125,998
Concessions 73,817 59,072
Other 10,213 9,392
-------- --------
Total revenues 239,050 194,462
-------- --------
Expenses
Film exhibition costs 85,208 71,142
Concession costs 11,450 10,056
Other 106,288 78,472
-------- --------
Total cost of operations 202,946 159,670
General and administrative 14,601 14,755
Depreciation and amortization 20,342 16,367
-------- --------
Total expenses 237,889 190,792
-------- --------
Operating income 1,161 3,670
Other expense (income)
Interest expense
Corporate borrowings 6,386 5,899
Capital lease obligations 2,160 2,346
Investment income (286) (172)
Gain on disposition of assets (1,393) (1,178)
-------- --------
Loss before income taxes (5,706) (3,225)
Income tax provision (2,650) (1,386)
-------- --------
Net loss $ (3,056) $ (1,839)
======== ========
Preferred dividends - 1,369
-------- --------
Net loss for common shares $ (3,056) $ (3,208)
======== ========
Loss per share:
Basic $ (0.13) $ (0.18)
======== ========
Diluted $ (0.13) $ (0.18)
======== ========
</TABLE>
3
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<TABLE>
<CAPTION>
AMC ENTERTAINMENT INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
July 2, April 2,
1998 1998
---- ----
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash and equivalents $ 34,767 $ 9,881
Receivables, net of allowance for doubtful accounts of
$741 as of July 2, 1998 and $706 as of April 2, 1998 15,818 13,018
Reimbursable construction advances 25,571 58,488
Other current assets 29,197 25,736
-------- --------
Total current assets 105,353 107,123
Property, net 598,422 562,158
Intangible assets, net 21,646 22,066
Other long-term assets 102,480 104,433
-------- --------
Total assets $827,901 $795,780
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 86,083 $ 72,633
Construction payables 17,440 24,588
Accrued expenses and other liabilities 78,419 72,598
Current maturities of corporate borrowings and capital lease obligations 4,039 4,017
-------- --------
Total current liabilities 185,981 173,836
Corporate borrowings 375,500 348,990
Capital lease obligations 49,534 50,605
Other long-term liabilities 80,509 82,894
-------- --------
Total liabilities 691,524 656,325
-------- --------
Stockholders' equity:
$1.75 Cumulative Convertible Preferred Stock, 66 2/3 CENTS par value; 0 shares
issued and outstanding as of July 2, 1998 and 1,800,331 shares issued
and outstanding as of April 2, 1998
(aggregate liquidation preference of $0 as of July 2, 1998 and $82,590
as of April 2, 1998) - 1,200
Common Stock, 66 2/3 CENTS par value; 18,473,934 shares issued as of
July 2, 1998 and 15,376,811 shares issued as of April 2, 1998 12,316 10,251
Convertible Class B Stock, 66 2/3 CENTS par value; 5,015,657 shares issued
and outstanding as of July 2, 1998 and April 2, 1998 3,344 3,344
Additional paid-in capital 106,713 107,676
Foreign currency translation adjustment (3,613) (3,689)
Retained earnings 17,986 21,042
-------- --------
136,746 139,824
Less - Common Stock in treasury, at cost,
20,500 shares as of July 2, 1998 and April 2, 1998 (369) (369)
-------- --------
Total stockholders' equity 136,377 139,455
-------- --------
Total liabilities and stockholders' equity $827,901 $795,780
======== ========
</TABLE>
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibits:
27. Financial Data Schedule
99.1 July 16, 1998 earnings release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AMC ENTERTAINMENT INC.
Date: July 17, 1998 By: /s/Richard L. Obert
-----------------------------------
Richard L. Obert
Senior Vice President and
Chief Accounting and
Information Officer
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<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Financial Statements of AMC Entertainment Inc. as of and for the
thirteen weeks ended July 2, 1998, submitted in response to the requirements to
Form 8-K and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> APR-01-1999
<PERIOD-END> JUL-02-1998
<CASH> 34,767
<SECURITIES> 0
<RECEIVABLES> 42,130
<ALLOWANCES> 741
<INVENTORY> 0
<CURRENT-ASSETS> 105,353
<PP&E> 943,740
<DEPRECIATION> 345,318
<TOTAL-ASSETS> 827,901
<CURRENT-LIABILITIES> 185,981
<BONDS> 425,034
0
0
<COMMON> 15,660
<OTHER-SE> 120,717
<TOTAL-LIABILITY-AND-EQUITY> 827,901
<SALES> 73,817
<TOTAL-REVENUES> 239,050
<CGS> 11,450
<TOTAL-COSTS> 202,946
<OTHER-EXPENSES> 20,342
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,546
<INCOME-PRETAX> (5,706)
<INCOME-TAX> (2,650)
<INCOME-CONTINUING> (3,056)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,056)
<EPS-PRIMARY> (0.13)
<EPS-DILUTED> (0.13)
</TABLE>
<PAGE>
Exhibit 99.1
[AMC LETTERHEAD]
AMC Entertainment Inc. reports record first-quarter revenues
KANSAS CITY, Mo. - AMC Entertainment Inc. (AMEX: AEN) today reported record
revenues and an improved EBITDA for the first quarter ended July 2, 1998 (13
weeks).
Total revenues for the quarter rose to $239.1 million, a 22.9 percent increase
from revenues of $194.5 million in the same period last year. Earnings before
interest, taxes, depreciation and amortization (EBITDA) increased by 7.3 percent
to $21.5 million, compared to $20.0 million in the year-ago quarter. Net
earnings for Common Shares were a loss of $3.06 million, or $0.13 per share,
compared to a loss of $3.21 million, or $0.18 per share, in the same period last
year.
"We are pleased with these record results in the first quarter, which is
traditionally the Company's weakest," said Peter Brown, co-chairman of AMC
Entertainment Inc. "Our revenues for the first quarter benefited from the shift
in our theatre mix from multiplexes to the more productive megaplexes." Brown
continued, "Cash flow was impacted positively by cost control, particularly in
the G&A expense area."
Highlights of the first quarter of Fiscal 1999 included:
- - EBITDA grew by 7.3 percent.
- - The Company continued to expand, opening three new theatres with 47 screens
during the quarter. The Company now operates a total of 1,029 megaplex
screens, representing more than 40 percent of the circuit, continuing the
strategy of shifting to more productive assets.
- - A contributing factor to EBITDA was the Company's improved international
operations.
AMC Entertainment Inc. is a leader in the U.S. motion picture exhibition
industry through its largest subsidiary, American Multi-Cinema, Inc., and is
also active in select international markets. The Company operates 230 theatres
with 2,489 screens in 23 states, the District of Columbia, Portugal and Japan.
Its Common Stock trades
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on the American Stock Exchange under the symbol AEN. The Company is
headquartered in Kansas City, Mo. For more information, visit the AMC web site
at http://www.amctheatres.com.
ANY FORWARD-LOOKING STATEMENTS CONTAINED IN THIS RELEASE, WHICH REFLECT
MANAGEMENT'S BEST JUDGMENT BASED ON FACTORS CURRENTLY KNOWN, INVOLVE RISKS AND
UNCERTAINTIES. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN
THE FORWARD-LOOKING STATEMENTS INCLUDED HEREIN AS A RESULT OF A NUMBER OF
FACTORS, INCLUDING BUT NOT LIMITED TO THE COMPANY'S ABILITY TO ENTER INTO
VARIOUS FINANCING PROGRAMS, COMPETITION FROM OTHER COMPANIES, DEMOGRAPHIC
CHANGES, CHANGES IN ECONOMIC CLIMATE, INCREASE IN DEMAND FOR REAL ESTATE,
CONSTRUCTION DELAYS, THE ABILITY TO OPEN NEW THEATRES AND SCREENS AS CURRENTLY
PLANNED, CHANGES IN REAL ESTATE, ZONING AND TAX LAWS, THE PERFORMANCE OF FILMS
LICENSED BY THE COMPANY AND OTHER RISKS AND UNCERTAINTIES.
<PAGE>
AMC ENTERTAINMENT INC.
FINANCIAL SUMMARY
(In Thousands, Except Per Share Amounts)
<TABLE>
<CAPTION>
13 Weeks 13 Weeks
-------- --------
7/2/98 7/3/97
------ ------
<S> <C> <C>
Total Revenues $239,050 $194,462
EBITDA (1) 21,503 20,037
Depreciation and amortization 20,342 16,367
Interest expense (2) 8,546 8,245
Other income 1,679 1,350
-------- --------
Earnings (loss) before income taxes (5,706) (3,225)
Income tax provision (2,650) (1,386)
-------- --------
Net earnings (loss) $ (3,056) $ (1,839)
======== ========
Preferred dividends - 1,369
-------- --------
Net earnings (loss) for common shares $ (3,056) $ (3,208)
======== ========
Earnings (loss) per share $ (0.13) $ (0.18)
Average shares outstanding 23,105 18,006
Cash and equivalents $ 34,767 $ 24,245
Corporate borrowings 375,500 404,450
Capital lease obligations 53,573 57,777
Stockholders' equity 136,377 166,537
Total assets $827,901 $832,729
</TABLE>
(1) Represents operating income plus depreciation and amortization.
(2) Represents interest expense on corporate borrowings and capital lease
obligations.
