AMC swings to Q3 profit, reports positive net income for second straight quarter

AMC Entertainment Holdings Inc. reported third-quarter results that beat top- and bottom-line expectations Wednesday, as the movie-theater chain and meme-stock darling swung to a profit.

The company swung to net income of $12.3 million, or 8 cents a share, compared with a loss of $226.9 million, or $2.20 a share, in the prior year’s quarter. Excluding nonrecurring items, AMC
AMC,
-1.27%

reported a loss of 9 cents a share. Analysts surveyed by FactSet were looking for a loss of 25 cents a share.

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Revenue grew 45.2% to $1.406 billion, above the FactSet consensus of $1.260 billion. AMC’s adjusted Ebitda was $194 million.

“For both revenue and adjusted Ebitda, these were AMC’s most successful third-quarter results in our company’s entire 103-year history, by definition being greater than the third quarter of pre-pandemic 2019,” AMC Chief Executive Adam Aron said in a statement. “For the second consecutive quarter, AMC reported positive net income, and we ended the quarter with $730 million of cash. This all suggests that we are well underway on our growth path to recovery from the ravages of the COVID pandemic.”

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“What is perhaps most impressive of all is that our success in the third quarter came at a time when our attendance at the domestic box office in the quarter was still 16% below comparable 2019 levels,” Aron added. “That success is because our contribution per patron was up 30% versus 2019.”

Admissions revenue was $797.7 million, above the FactSet consensus of $739 million. Food and beverage revenue was $482.7 million, above the FactSet consensus of $449 million.

AMC’s stock fell 0.6% in extended trading Wednesday.

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