<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) JANUARY 15, 1999
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
<PAGE>
ITEM 5. OTHER EVENTS
(a) Attatched as Exhibit 99.1 and incorporated by reference is AMC
Entertainment Inc.'s earnings release for the third quarter of
fiscal year 1999, which was issued on January 15, 1999.
2
<PAGE>
(b) Set forth below are AMC Entertainment Inc.'s unaudited
Consolidated Statements of Operations for the thirteen and thirty-nine weeks
ended December 31, 1998 and January 1, 1998 and the unaudited Consolidated
Balance Sheets as of December 31, 1998 and April 2, 1998.
AMC ENTERTAINMENT INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Thirteen Thirty-nine
Weeks Ended Weeks Ended
December 31, January 1, December 31, January 1,
1998 1998 1998 1998
---- ---- ---- ----
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Revenues
Admissions $165,812 $140,317 $509,571 $411,034
Concessions 77,436 64,049 239,998 189,476
Other 14,003 11,473 35,784 29,380
-------- -------- -------- --------
Total revenues 257,251 215,839 785,353 629,890
-------- -------- -------- --------
Expenses
Film exhibition costs 88,839 75,583 278,243 227,563
Concession costs 13,356 10,903 38,499 30,810
Other 113,239 85,822 331,634 244,074
-------- -------- -------- --------
Total cost of operations 215,434 172,308 648,376 502,447
General and administrative 14,517 15,041 44,717 41,893
Depreciation and amortization 23,100 17,227 64,472 50,116
Impairment of long-lived assets - - - 46,998
-------- -------- -------- --------
Total expenses 253,051 204,576 757,565 641,454
-------- -------- -------- --------
Operating income (loss) 4,200 11,263 27,788 (11,564)
Other expense (income)
Interest expense
Corporate borrowings 7,270 7,552 19,844 20,513
Capital lease obligations 2,079 2,318 6,373 7,007
Investment income (434) (124) (1,085) (805)
Gain on disposition of assets (901) (864) (2,259) (3,360)
-------- -------- -------- --------
Earnings (loss) before income taxes (3,814) 2,381 4,915 (34,919)
Income tax provision (2,100) 950 1,800 (14,150)
-------- -------- -------- --------
Net earnings (loss) $ (1,714) $ 1,431 $ 3,115 $(20,769)
======== ======== ======== ========
Preferred dividends - 1,198 - 3,849
-------- -------- -------- --------
Net earnings (loss) for
common shares $ (1,714) $ 233 $ 3,115 $(24,618)
======== ======== ======== ========
Earnings (loss) per share:
Basic $ (0.07) $ 0.01 $ 0.13 $ (1.34)
======== ======== ======== ========
Diluted $ (0.07) $ 0.01 $ 0.13 $ (1.34)
======== ======== ======== ========
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
AMC ENTERTAINMENT INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
December 31, April 2,
1998 1998
----------- ---------
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash and equivalents $ 34,277 $ 9,881
Receivables, net of allowance for doubtful accounts of
$698 as of December 31, 1998 and $706 as of April 2, 1998 22,352 13,018
Reimbursable construction advances 16,180 58,488
Other current assets 28,407 25,736
-------- --------
Total current assets 101,216 107,123
Property, net 675,321 562,158
Intangible assets, net 20,113 22,066
Other long-term assets 107,802 104,433
-------- --------
Total assets $904,452 $795,780
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 82,158 $ 72,633
Construction payables 7,313 24,588
Accrued expenses and other liabilities 96,071 72,598
Current maturities of corporate borrowings and capital lease obligations 3,998 4,017
-------- --------
Total current liabilities 189,540 173,836
Corporate borrowings 452,030 348,990
Capital lease obligations 45,428 50,605
Other long-term liabilities 80,849 82,894
-------- --------
Total liabilities 767,847 656,325
-------- --------
Stockholders' equity:
$1.75 Cumulative Convertible Preferred Stock, 66 2/3 CENTS par value;
1,800,331 shares issued and outstanding as of April 2, 1998
(aggregate liquidation preference of $45,008 as of April 2, 1998) - 1,200
Common Stock, 66 2/3 CENTS par value; 19,447,598 shares issued as of
December 31, 1998 and 15,376,811 shares issued as of April 2, 1998 12,965 10,251
Convertible Class B Stock, 66 2/3 CENTS par value; 4,041,993 and 5,015,657
shares issued and outstanding as of December 31, 1988 and
April 2, 1998, respectively 2,695 3,344
Additional paid-in capital 106,713 107,676
Foreign currency translation adjustment (801) (3,689)
Retained earnings 24,157 21,042
-------- --------
145,729 139,824
Less:
Employee notes for common stock purchases (8,755) -
Common Stock in treasury, at cost,
20,500 shares as of December 31, 1998 and April 2, 1998 (369) (369)
-------- --------
Total stockholders' equity 136,605 139,455
-------- --------
Total liabilities and stockholders' equity $904,452 $795,780
======== ========
</TABLE>
4
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibits:
27. Financial Data Schedule
99.1 January 15, 1999 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: January 15, 1999 By: /s/Richard L. Obert
-----------------------------------
Richard L. Obert
Senior Vice President and
Chief Accounting and
Information Officer
5
<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
thirty-nine weeks ended December 31, 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> 9-MOS
<FISCAL-YEAR-END> APR-01-1999
<PERIOD-END> DEC-31-1998
<CASH> 34,277
<SECURITIES> 0
<RECEIVABLES> 39,230
<ALLOWANCES> 698
<INVENTORY> 0
<CURRENT-ASSETS> 101,216
<PP&E> 1,045,762
<DEPRECIATION> 370,441
<TOTAL-ASSETS> 904,452
<CURRENT-LIABILITIES> 189,540
<BONDS> 497,458
0
0
<COMMON> 12,965
<OTHER-SE> 123,640
<TOTAL-LIABILITY-AND-EQUITY> 904,452
<SALES> 239,998
<TOTAL-REVENUES> 785,353
<CGS> 38,499
<TOTAL-COSTS> 648,376
<OTHER-EXPENSES> 64,472
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 26,217
<INCOME-PRETAX> 4,915
<INCOME-TAX> 1,800
<INCOME-CONTINUING> 3,115
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,115
<EPS-PRIMARY> 0.13
<EPS-DILUTED> 0.13
</TABLE>
<PAGE>
Brenda Nolte January 15, 1999
Corporate Affairs Officer
AMC Entertainment Inc.
(816) 221-4000
AMC ENTERTAINMENT REPORTS
RECORD THIRD-QUARTER REVENUES
KANSAS CITY, Mo. -- AMC Entertainment Inc. (AMEX: AEN), one of the world's
leading theatrical exhibition companies, today reported revenues of
$257.3 million for the third quarter of fiscal 1999, ended Dec. 31, 1998
(13 weeks), an increase of 19 percent over the same quarter a year ago.
Due to an increase of 457 screens since last year, revenues for the third
quarter increased from the previous year's quarter. The third quarter of
fiscal 1999 did not include New Year's Day as did the same quarter last year.
Earnings before interest, taxes, depreciation, amortization and impairment
losses (EBITDA) for the quarter was $27.3 million, compared to $28.5 million
in the year-ago quarter. Net earnings for Common Shares were a loss of
$1.7 million, or a loss of 7 cents per share, compared to earnings of
$233,000, or 1 cent per share, in the same period last year.
"This is a product-driven business and this year, unlike the third quarter
last year, we didn't have a TITANIC," said Peter Brown, co-chairman of AMC
Entertainment Inc.
MORE
<PAGE>
-2-
"But our year to date results are well ahead of last year and we continue to
lead the industry in the transition from multiplexes to megaplexes. We see
that as confirmation for our ongoing megaplex growth strategy."
For fiscal 1999 to date, the three quarters ended Dec. 31, 1998, AMC
Entertainment reported total revenues of $785.4 million, up 25 percent from
total revenues of $629.9 million in the same period the year before; EBITDA
of $92.3 million, up 8 percent from EBITDA of $85.6 million in the year-ago
period; and net earnings for Common Shares of $3.1 million, or 13 cents per
share, compared with a loss of $24.6 million, or a loss of $1.34 per share,
in the same period last year.
Earnings for Common Shares in the second quarter of fiscal 1998 were affected
by a non-cash charge of $47.0 million ($27.7 million after taxes, or $1.51
per share) related to Statement of Financial Accounting Standards No. 121
(SFAS 121), "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed Of."
AMC Entertainment Inc. is a world leader in the theatrical exhibition
industry through its largest subsidiary, American Multi-Cinema, Inc., and is
also active in select international markets. The Company operates 238
theatres with 2,742 screens in 23 states, the District of Columbia, Canada,
Hong Kong, Japan, Portugal and Spain. Its Common Stock trades on the American
Stock Exchange under the symbol AEN. The Company is headquartered in Kansas
City, Mo. For more information on the Company, visit the website 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 3/3
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THIRTEEN WEEKS THIRTEEN WEEKS THIRTY-NINE WEEKS THIRTY-NINE WEEKS
ENDED ENDED ENDED ENDED
-------------- -------------- ----------------- -----------------
DECEMBER 31, 1998 JANUARY 1, 1998 DECEMBER 31, 1998 JANUARY 1, 1998
-------------- -------------- ----------------- -----------------
<S> <C> <C> <C> <C>
SUMMARY CONSOLIDATED STATEMENT OF OPERATIONS:
Total revenues $257,251 $215,839 $785,353 $629,890
Total cost of operations 215,434 172,308 648,376 502,447
General and administrative expense 14,517 15,041 44,717 41,893
Depreciation and amortization 23,100 17,227 64,472 50,116
Impairment of long-lived assets - - - 46,998
-------- -------- -------- --------
Operating income (loss) 4,200 11,263 27,788 (11,564)
Interest expense 9,349 9,870 26,217 27,520
Investment income (434) (124) (1,085) (805)
Gain on disposition of assets (901) (864) (2,259) (3,360)
-------- -------- -------- --------
Earnings (loss) before income taxes (3,814) 2,381 4,915 (34,919)
Income tax provision (2,100) 950 1,800 (14,150)
-------- -------- -------- --------
Net earnings (loss) $ (1,714) $ 1,431 $ 3,115 $(20,769)
-------- -------- -------- --------
-------- -------- -------- --------
Preferred dividends - 1,198 - 3,849
-------- -------- -------- --------
Net earnings (loss) for common shares $ (1,714) $ 233 $ 3,115 $(24,618)
-------- -------- -------- --------
-------- -------- -------- --------
Earnings (loss) per share:
Basic $ (0.07) $ 0.01 $ 0.13 $ (1.34)
-------- -------- -------- --------
-------- -------- -------- --------
Diluted $ (0.07) $ 0.01 $ 0.13 $ (1.34)
-------- -------- -------- --------
-------- -------- -------- --------
Average shares outstanding:
Basic 23,469 18,543 23,348 18,310
-------- -------- -------- --------
-------- -------- -------- --------
Diluted 23,469 18,789 23,522 18,310
-------- -------- -------- --------
-------- -------- -------- --------
CONSOLIDATED BALANCE SHEET DATA (AT PERIOD END):
Cash and equivalents $ 34,277 $ 53,525
Corporate borrowings 452,030 378,977
Capital lease obligations 49,426 55,446
Stockholders' equity 136,605 144,269
Total assets 904,452 838,159
OTHER FINANCIAL DATA:
Rent expense $ 41,663 $ 26,780 $119,065 $ 72,406
Preopening expense 1,209 1,056 1,982 1,592
Theatre closure expense - - 2,801 -
EBITDA (1) 27,300 28,490 92,260 85,550
EBITDAR (2) 68,963 55,270 211,325 157,956
After-tax Cash Flow (3) 21,386 17,460 67,587 53,226
</TABLE>
(1) Represents operating income plus depreciation and amortization and
impairment of long-lived assets.
(2) Represents EBITDA plus rent expense.
(3) Represents net earnings (loss) for common plus depreciation and
amortization and impairment of long-lived assets, net of taxes.
