AMC Entertainment Holdings Inc. (NYSE:AMC) reported mixed financial results in the first quarter of 2016. While the bottom line outpaced the Zacks Consensus Estimate, the top line lagged the same.
GAAP net income was $28.3 million or 29 cents per share compared with $6.1 million or 6 cents per share in the prior-year quarter. First-quarter adjusted earnings per share of 27 cents handsomely beat the Zacks Consensus Estimate of 21 cents.
Quarterly total revenue was $766 million, up 17.3% year over year but short of the Zacks Consensus Estimate of $770 million. Segment wise, Admission revenues were $428.6 million, up 15.3% year over year. Food and beverage revenues were $244.2 million, up 21.8% year over year. Other theater revenues were $39.3 million, up 15.9% year over year.
First quarter operating expenses were $706.8 million, up 13.8% year over year. Operating income was $59.3 million, up a whopping 84.9% year over year. Operating margin was expanded to 7.7% from 4.9% in the year-ago quarter. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $146.5 million, up 26.6% year over year.
During the first quarter of 2016, Average screens-continuing operations were 5,313, up 8.8% year over year. Number of screens operated was up 8.5% to 5,380. Number of theatres operated was up 11.6% to 385. Screens per theatre were 14% compared with 14.4% in the prior-year quarter.
During the first quarter of 2016, AMC Entertainment generated $22.9 million of cash from operations compared with $21.6 million in the year-ago quarter. Free cash flow, in the reported quarter was $72.1 million compared with $19.2 million in the prior-year quarter.
At the end of the first quarter of 2016, AMC Entertainment had $107.9 million of cash and cash equivalents and $1,861.4 million of outstanding debt compared with $211.3 million of cash and cash equivalents and $1,912.8 million of outstanding debt at the end of 2015. The debt-to-capitalization ratio, at first-quarter 2016 end, was 0.55, flat with the end of 2015.
Zacks Rank & Stocks to Consider
AMC Entertainment currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry are Carmike Cinemas Inc. (NASDAQ:CKEC) , Carnival (LON:CCL) Corp. (NYSE:CCL) and The Madison Square (NYSE:SQ) Garden Co. (NYSE:MSG) . All three stocks currently carry a Zacks Rank #2 (Buy).
AMC ENTERTAINMT (AMC): Free Stock Analysis Report
CARNIVAL CORP (CCL): Free Stock Analysis Report
MADISON SQUAR-A (MSG): Free Stock Analysis Report
CARMIKE CINEMA (CKEC): Free Stock Analysis Report
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