AMC Entertainment Inc.: J.P. Morgan Global High Yield Debt Conference

AMC Entertainment Inc.
J.P. Morgan Global High Yield Debt Conference

March 2010
Safe Harbor Disclosure

This presentation may include forward looking statements within the meaning of Section forward-looking 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements included herein, other than statements of historical fact, may constitute forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from the Companys expectations are disclosed in the risk factors contained in the Companys Annual Report for the fiscal year ended April 2, p y p y p , 2009 (Form 10-K filed with the Securities and Exchange Commission on May 21, 2009). All forward-looking statements are expressly qualified in their entirety by such factors.
Debt Conference
March 2010
Private and Confidential
Page 2
Company Representatives
Gerry Lopez CEO & President Craig Ramsey C i R Executive Vice President & Chief Financial Officer Terry Crawford Vice President & Treasurer Mike Zwonitzer Senior Vice President, Finance
Debt Conference
March 2010
Page 3
Company Overview
Innovator with Highest Performing Theatres I t ith Hi h t P f i Th t

AMC is one of the worlds largest and most innovative theatrical exhibition companies
299 theatres; 4 528 screens 4,528 Revenues of $2.4 billion 17,600 associates
Leading major market operator Industrys highest performing theatres
Per Theatre Metrics Attendance Screens AMC Regal Cinemark Industry 15.2 12.4 13.0 7.1 (000s)1 669 437 560 249 Revenues (MM's)1 $7.9 $5.2 $5.3 OCFBR (MM's)1 $2.8 $1.7 $2.0 -
Source: (1) Based on U.S. and Canada for 12/09 LTM, Industry as of 12/08.
Debt Conference
March 2010
Page 5
Leading M j Market Th t Operator L di Major M k t Theatre O t

Wilkes-Barre Seattle / Tacoma Spokane p Minneapolis Lansing Grand Rapids Cleveland Hartford Buffalo Detroit Milwaukee Chicago g Omaha Salt Lake City Denver Kansas City Charlotte St. Louis Los Angeles Oklahoma City Okl h Cit Phoenix San Diego Dallas / Fort Worth Tucson Austin San Antonio Houston Tampa / St. Pete St Fort Myers Tallahassee New Orleans Orlando West Palm Beach Miami / Ft Lauderdale Tulsa Ft. Smith Atlanta Columbia Charleston Jacksonville Indianapolis Columbus Washington, DC Cincinnati Norfolk Binghamton Rochester Harrisburg Pittsburgh San Francisco / San Jose Baltimore New York Philadelphia Boston Providence
% of Screens in Top DMAs

As of 12/31/09 AMC Regal Cinemark Top 25 80% 56% 46% Top 50 94% 76% 61%
Source: Rentrak and Claritas.
Debt Conference
March 2010
Page 6
Benefits of M j Market F B fit f Major M k t Focus

Higher population density Greater levels of affluence Broader ethnic and cultural diversity Greater importance to content providers Greater population growth
Superior Population Growth in Top DMAs

2008-2013 Population Growth Top 25 DMAs Top 50 DMAs All Other DMAs 5.8% 5.9% 2.9% % of LTM Box Office 60% 76% 24%
Debt Conference
March 2010
Page 7
Digital Offers E iti Di it l Off Exciting Growth Opportunities G th O t iti

3D
AMCs Portfolio Plans to add up to 1,500 RealD 3D screens th throughout circuit in U.S. and h t i it i U S d Canada Currently 117 2K and 247 4K systems have been installed with an additional 522 4K units planned for installation by FYE 11 Financial Impact Generates double the attendance of 2D Admission price $2 - $3 more per ticket Minimal capital expenditures under revenue sharing model
IMAX
AMC has an agreement in place with IMAX to i t ll 100 MPX digital t install di it l projection systems Currently available in 78 theatres with planned expansion to 81 by FYE 10
~40% of IMAX attendance is incremental Admission price is greater than $4 more per ticket
Upcoming Products
C09 over $1.3B Gross, 4x C08 of $0.3B 24 titles to release in C 0 t t es e ease C10
11 titles to release in C10
Debt Conference
March 2010
Page 8
DCIP a R lit Reality

Distributor Agreements Participating Distributors support deployment period of 5-years; supported by a 10-year Virtual Print Fee (VPF) payment agreement 100% of content in a digital format Non-participating Distributors pay higher VPF
Exhibitor Agreements
12-year exclusive Agree to maintain equipment; DCIP pays repairs and replacement
Financing
$425M in debt, plus $135M of junior capital plus $80M from Exhibitors in the form of cash and existing equipment h d i ti i t Current funding ($640M) will complete ~85% of deployment plan ($740M) Moodys Rating: Baa2 Baa3
Deployment Plan
DCIP targeting to close on financing today! AMC deployment to begin in April and take 3.5 years to complete circuit 3D screens to be deployed in first 12 months
Debt Conference
March 2010
Page 9
Growth Strategies Within Our Core Business

In addition to incremental revenues from new digital offerings, AMC will broaden and enhance the customer experience in order to create new or expand existing revenue streams Concessions and In-Theatre Dining Expanding the menu of premium food and beverage products Alcohol, better for you items, made to order, customized coffee, hot food items and other gourmet products P Pre-packaged SKU it k d items t encourage i to impulse purchases l h Enhancing dining experience Fork & Screen: Casual, in-theatre dining and entertainment experience Cinema Suites: Premium, upscale in-theatre dining and entertainment option M G ffi B and llounge area MacGuffins: Bar d
Customer y y Loyalty Programming
MovieWatcher frequent moviegoer loyalty program
5.0 5 0 million database; 1 5 million active members 1.5
Aggressively target film projects to our demographics urban, action, diverse
Develop alternative sources D l lt ti sports, music, specialty film

March 2010 AMC Entertainment Inc. Private and Confidential Page 10
Debt Conference
Box Office Strength B Offi St th

Strong Calendar 2009 performance
Box Office Revenues
($ in billions)
Revenues up 10%. Attendance up 5%. 32 films over $100 million, 25 last year Established new Industry Box Office record First six weeks of Calendar 2010 up 3%
$12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $2 0 2004 2005 2006 2007 2008 $9.2 $9.1 $9.6 $9.6
$10.5 $8.8
2009
Debt Conference
March 2010
Page 11
Recession Resilient Industry

Demonstrated resiliency of the industry during y y g economic contractions Least expensive form of out-of-home entertainment 2008 average theatre ticket price was $7.18 vs. vs average out of home entertainment out-of-home (1) ticket price of $45.83 The theatre industry has proven to be resilient during economic contractions Averaged 10.5% growth over the past 5 economic contractions (2) Performing well in light of current economy; up 9% on an LTM basis Box office more correlated to perceived quality of film slate than to economic conditions
Least Expensive Form of Out-of-Home Entertainment
2008 Out-of-Home Ticket Prices
$80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $ Theme Park Movie Theatre $50.00 $50 00 $48.72 $48 72 $35.95 $23.50 $7.18 $71.00
(1) MPAA research. Average out-of-home ticket price includes football game, basketball game, hockey game, baseball game and theme park. (2) Not including current contraction.
Debt Conference
March 2010
Page 12
Financial Update
Consolidated Summary Operating Statement F10 Q3 (12/31/09)

$ in m illions
39 weeks ended 12/31/09 1/1/09 % chg. Admissions revenues Concessions revenues Other revenues Total revenues Film exhibition costs Concession costs Operating expense G&A expense - other NCM dividend Other (Inc) Expense Adj EBITDAR Rent Adj. Adj EBITDA 1,281 488 45 1,814 697 53 446 40 (20) (12) 610 331 279 1,198 479 44 1,721 647 51 435 32 (19) (12) 587 337 250 7% 2% 2% 5% 8% 4% 3% 25% 5% 0% 4% -2% 12%
LTM 1,663 636 59 2,358 893 70 585 52 (30) (14) 802 443 359
Debt Conference
March 2010
Page 14
Consolidated Key Analyticals F10 Q3 (12/31/09)

39 weeks ended 1/1/09 % chg. 12/31/09 Screen additions Screen dispositions Average screens Attendance (000's) APS (annlzd, 000's) Average ticket price Concessions per head Other revenues per head FEC % Admissions GP per screen (annlzd 000's) Concession costs % Concession GP per patron OE % Revenues G&A expense- Other % expense Rent per screen (annlzd, 000's) Adj. EBITDAR margin Adj. EBITDA margin 6 90 4,501 152,147 45.1 8.42 3.21 0.29 54.4% 173.1 11.0% 2.86 24.5% 2.2% 98.1 33.7% 15.4% 83 61 4,546 149,457 43.8 8.02 3.20 0.30 54.0% 161.8 10.7% 2.86 25.3% 1.8% 98.8 34.1% 14.6% (77) 29 -1.0% 1.8% 2.8% 5.0% 0.2% -1.3% 40 7.0% 30 -0.2% (80) 40 -0.7% (40) 80 LTM 6 106 4,511 198,875 44.1 8.23 3.19 0.29 53.3% 165.3 11.0% 2.84 24.8% 2.2% 98.2 34.0% 15.2%
Debt Conference
March 2010
Page 15
Consolidated Free Cash Flow F10 Q3 (12/31/09)

$ in m illions
39 weeks ended 12/31/09 1/1/09 % chg. Adj. EBITDA - Open/Close expense - Net cash interest expense - Cash taxes + Working capital and other - Net capex - CLO and FLO payments Free Cash Flow 279 5 120 1 79 59 3 170 250 2 115 2 37 66 2 100 12% -5% -50% --11% 50% 70%
LTM 359 6 156 1 12 86 3 119
Debt Conference
March 2010
Page 16
Consolidated Capitalization and Maturity Profile 12/31/09

$ in m illions
Cash Senior Secured Debt CLO's and other Sr. Secured Sr Unsecured Notes Total Sr Debt Senior Sub Debt Total OpCo Debt Sr Discount Notes Total HoldCo Debt Stockholders' Equity Total Capitalization (net of cash) LTM Adj. EBITDA Net Debt N t D bt Net Debt/LTM Adj. EBITDA
$ $ $
533 626 58 684 600 1,284 625 1,909 241 2,150 508 2,125 359 1,617 1 617 4.5x
MaturityProfile (Calendar Year)
$241 $626 $200 2010 2011 2012 2013 $300 2014 2015 $325 2016 2017 2018 2019 $600
Revolver(undrawn) 8.0%Sr.SubNotes
TermLoanB 11.0%Sr.SubNotes
8.75%Sr.Notes 12.0%Sr.discount Notes
Debt Conference
March 2010
Page 17
Kerasotes Acquisition
Company Overview Key Metrics
Founded 1909 93 Theatres with 929 Screens Annual revenues of $317M Top 50 DMA Concentration
10.0 Screens per Theatre 76% of Screens in Top 50 DMAs
Transition
Rationale
Terms Purchase Price Retained Theatres Synergy y gy NCM Stock
Market Fit Similar Operating Styles Strategic use of Cash Good Price ce Deleveraging
Debt Conference
March 2010
Page 18
Upcoming Film Releases

Release Window
Q1 2010 March DIS: Alice in Wonderland PAR: How to Train Your Dragon DIS: Alice in Wonderland PAR: How to Train Your Dragon DIS: Alice in Wonderland (3D) PAR: How to Train Your Dragon (3D)
2D Releases
Digital 3D Releases
IMAX Releases
Q2 2010 April May WB: Clash of The Titans PAR: Shrek Forever After PAR: Iron Man 2 WB: Sex and the City 2 DIS: Prince of Persia: The Sands of Time DIS: Toy Story 3 WB: Jonah Hex WB: Clash of The Titans PAR: Shrek Forever After PAR: Shrek Forever After (3D) PAR: Iron Man 2
June Q3 2010 July
DIS: Toy Story 3
DIS: Toy Story 3 (3D)
SMT: Twilight Saga: Eclipse UNIV: Despicable Me DIS: The Sorcerers Apprentice WB: Inception
UNIV: Despicable Me
SMT: Twilight Saga: Eclipse WB: Inception
Q4 2010 November December WB: Harry Potter & The Deathly Hallows DIS: Tangled DIS: Tron Legacy WB: Yogi Bear UNIV: Little Fockers FOX: Gullivers Travels WB: Harry Potter & The Deathly Hallows DIS: Tangled DIS: Tron Legacy WB: Yogi Bear WB: Harry Potter & The Deathly Hallows DIS: Tron Legacy
Debt Conference
March 2010
Page 19

AMC Entertainment Inc.: J.P. Morgan Global High Yield Debt Conference

Transféré par

Informations du document

Description originale:

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

AMC Entertainment Inc.: J.P. Morgan Global High Yield Debt Conference

Transféré par

Droits d'auteur :

Formats disponibles

AMC Entertainment Inc.

J.P. Morgan Global High Yield Debt Conference

Safe Harbor Disclosure