Q4 2022 AMC Entertainment Holdings Inc Earnings Call
[music].
Greetings and welcome to the AMC Entertainment fourth quarter and year end 2022 earnings webcast.
At this time all participants are in a listen only mode.
A brief question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded.
It is now my pleasure to introduce to your host John Merriwether, Vice President capital markets and Investor Relations.
Thank you John you may begin.
Thank you Vikram good afternoon, I'd like to welcome everyone to Amc's fourth quarter and year end 2022 earnings webcast.
With me. This afternoon is Adam Aron, our chairman and CEO and Sean Goodman, our Chief Financial Officer.
Before I turn the webcast over to Adam Let me remind everyone that some of the comments made by management. During this webcast may contain forward looking statements that are based on management's current expectations.
Numerous risks uncertainties and other factors may cause actual results to differ materially from those that might be expressed today.
Many of these risks and uncertainties are discussed in our most recent public filings, including our most recently filed 10-K and 10-Q.
Several of the factors that will determine the company's future results are beyond the ability of the company to control or predict.
In light of the uncertainties inherent in any forward looking statements listeners are cautioned against relying on these statements.
The company undertakes no obligation to revise or update any forward looking statements, whether as a result of new information or future events.
On the webcast, we may reference non-GAAP financial measures such as adjusted EBITDA constant currency free cash flow operating cash burn and operating cash generated among others.
For a full reconciliation of our non-GAAP measures to GAAP results. Please see our earnings release posted in the Investor Relations section of our website earlier today.
After our prepared remarks, there will be a question and answer session.
This afternoons webcast is being recorded and a replay will be available in the Investor Relations section of our website at AMC theaters Dot Com later today with.
With that I'll turn the call over to Adam.
Thank you John .
Good afternoon wanted to all and thank you for joining us today.
Let me add a very special welcome to the thousands of our individual shareholders who've been making it a habit to tune into these quarterly earnings Webcasts for AMC Entertainment.
2022 marked another year of significant strategic operational and financial gains for AMC Entertainment.
With our two announcements today.
Q4 2022 earnings.
Out of the launch of AMC perfectly popcorn.
More than 2600 U S. Walmart stores once again AMC is demonstrating unmistakable progress.
Along our multi year pandemic recovery glide path.
In my opinion, there are five reasons, why AMC shareholders should be especially excited.
Smiling today.
First.
The increasing size of our industry as it recovers.
Amc's performance in Q4.
Third the fact that we are outperforming our competitors.
Fourth our agility, and raising cash and reducing debt and fifth.
This morning's Walmart AMC perfectly popcorn announcement.
First an overarching.
Is the size of our industry itself.
Which is increasing.
For five consecutive years prior to the pandemic.
From 2015 to 2019 the.
The domestic box office.
Which is all theaters all brands across the United States and Canada.
Exceeded $11 billion.
It was 11 4 billion.
In 2019.
But then COVID-19 came and brought our industry to its knees.
And the 2020 domestic box office was only $2 2 billion.
Down as we all know a breathtaking, 82% year over year from the pre pandemic level in 2019.
Since then our industry has seen a steady growth trajectory.
121 domestic box office was $4 5 billion.
More than double that of 2020.
And 2020 two's full year domestic box office of seven 4 billion.
Was about 65% higher than 2021.
The numbers again.
11, 4 billion in 2019, following the $2 2 billion rising to $4 5 billion rising to seven 4 billion.
Based on the box office results so far in the first quarter of 2023.
Which is already up 44% year over year.
Combined with a much larger number.
A broader and deeper movie titles to be released in the coming quarters.
Just on what we know today the 2023 domestic box office will almost certainly be significantly higher.
In 2023.
And that of 2022.
You all know that we finished 2022 and started 2023.
A very strong note.
With what is already the third highest grossing film of all time, James Cameron's epic sequel, Avatar the way of water.
It really is a testament to the genius of James Cameron that he is responsible for three of the four highest grossing movies in the history of cinema.
I digress for a moment to say thank you Jim Cameron and thank you to your producing partner John Lando. It won't surprise you both to hear that you're both are greatly appreciated by AMC and by the millions of AMC shareholders and the millions of AMC moviegoers.
Please please Jim and John .
Keep making more movies.
Speaking of more movies.
That's one of the key stories of the coming year 2023.
The incredible Tom cruises top gun, Maverick, which grows more than one $5 billion of movie theaters in 2022, and avatar the way of water, which has already grossed almost two $3 billion in movie theaters at only 11 weeks among many other successful movie release.
They all prove that moviegoers no longer or are afraid to go to a cinema.
To watch a movie.
As they once were afraid in the darkest days of 2020 at the height of the pandemic.
Our problem now and generating attendance in theaters is quite different instead is simply the Hollywood has been releasing fewer movies of late.
Depending upon how you count.
The number of major movies released in 2022 was somewhere between a third and a half.
Fewer.
Then the total number of such major films released in 2019.
Before the pandemic.
Fortunately now finally.
That is all changing.
We currently estimate that.
<unk> 30, or more movies will growth more than a $100 million domestically.
Domestically in 2023.
That compares with only 18 doing so in the just completed 2022.
That is an increase in 2023 of about 75%.
Of the number of movie titles.
Dosing of $100 million or more let.
Let me repeat that.
We are expecting in 2023 about a 75% increase in the number of major movie titles grossing $100 million or more.
Compared to last year.
Okay.
The second reason for our enthusiasm.
Is it AMC posted much improved results.
For the fourth quarter of 2022.
Naturally we're pleased that AMC entertainment easily bested consensus estimates for Q4 2022.
Revenue for Q4, 2022, adjusted EBITDA as well as posting a beat on adjusted net income and EPS for 2022 Q4 after excluding for noncash impairment write offs.
We are similarly encouraged.
<unk> Q4, 2022 revenue per trade per patron of $19 98.
Was well above pre pandemic levels, thanks to rising ticket prices and the two consumers continued predilection to indulge more at our concession stands in our high margin food and beverage business.
Amc's full year 2022 results represented our strongest year since pre pandemic 2019.
With 2022 results improving over 2021, which in turn were better than those of 2020.
Indeed in full year 2022, AMC saw our annual revenue increase by more than 54% year over year and our adjusted EBITDA improved in a single year by more than $338 million.
Versus 2021.
It's an enormous increase.
The third reason, we're smiling today.
Is that is the world's largest theatre chain.
We are outrunning our competitors.
Number two Regal Cineworld is in bankruptcy court because they essentially ran out of cash in September by contrast, AMC has been masterful in raising equity as needed and we ended 2022 with over $840 million of cash in the bank.
Our undrawn revolving credit lines.
As for number three operators Cinemark, we encourage you to look at the Q4 metrics, where we overlap in the United States.
Average ticket price AMC $12 22.
Cinemark only $10, even $12 20 to $10 food and beverage per patron AMC $7 76.
Cinemark $7 43.
Total revenues per patron AMC $21 85.
Cinemark $19 35.
Film exhibition costs and this is one where you want that number to be lull in that high <unk>.
EMC or film exhibition costs were 51% of our admissions revenues at Cinemark It was 58%.
Sure.
To strengthen.
Our balance sheet by extending debt maturities, reducing debt and reducing associated interest costs three invest in our business to continue to enhance the guest experience and for opportunistically pursue value enhancing initiatives, including those that lead to diversification.
All of our business and revenue streams.
Having the flexibility to raise equity capital allows us to Opportunistically take critical actions to strengthen our balance sheet and at the same time successfully navigate through the ongoing recovery of our industry.
For these reasons I would like to take this opportunity to urge shareholders to vote in favor of the proposals that we that will be voted on at the upcoming shareholder meeting on March 14th.
These proposals are designed to protect the long term value of AMC equity.
And provide us with the flexibility necessary to ensure a successful recovery from the ongoing impact of the Covid pandemic.
Our capital expenditure net of landlord contributions was $69 million in the fourth quarter of 2022, and we finished the year with a total net capex spend of $182.
Yes.
And similar to 2022 looking towards 2023, we expect our capital expenditure to be in the range of $150 million to $200 million.
Actively managed managing our theater portfolio continues to be our priority as we add new high performing locations and eliminate low performance all with the goal of improving our guest satisfaction and enhancing our overall profitability.
During the fourth quarter, we added five new theaters and we closed nine <unk>.
It brings the total number of locations closed since the pandemic began to 115 and the total new locations opened 254 for a net reduction of 61 locations.
Combined 54, new locations continued to substantially outperform the 115 closed locations prior to their closings and they also are outperforming our underwriting expectations.
Okay fraud, we are optimistic about the future and the opportunities to strengthen and diversify our business, while continuing to enhance our financial position.
So with that I'll hand, the call back over to Adam to review some exciting recent announcements and provide an update on our strategic initiatives, including our upcoming stockholder meeting Adam Greg you Shaun.
Yes.
As I said at the top of the call at AMC were all smiles today.
But by no means are we out of the woods yet.
We will need to remain smart and action oriented to.
To successfully charter away through we're still COVID-19 impacted waters, but clearly.
We have been and are now making great progress.
And while we have much more work ahead of US still my ongoing conversations with our studio partners, including some as recently as this weekend buoys my optimism that more movies R&D, the theaters and that the value of theatrical exhibition.
Is clearly recognized and internalized by the heads of every single major studio.
As the leader of AMC.
I am proud that we are resilient, we weathered many storms over.
Over the past 36 months.
Storm first of the virus itself.
Then the threat to exclusive theatrical windows more recently the convention held by some that streaming services would win out over theaters and all through it was a concern that there would not be enough cash in the coffers for AMC to outlast all that we had the stare down.
What's more there was the added complexity for us of doing something well that few if any companies ever thought about before how to adjust to a whole new cadre of millions of individual shareholders.
Ownership of our company.
Fortunately for us.
People, who predicted that we could not weather the storms were all wrong.
And more Fortunately for us.
Those new retail investors turned out to be the saviors of our company.
Their passion for AMC saved our company.
As they provide us with the cash resources we needed.
To survive.
They also flooded us with some truly great ideas.
<unk> one of my personal favorites.
That we should sell popcorn to the whole market and what is after all a multibillion dollar category.
This morning's exciting news announcement.
That the retail launch of Amc's microwave and ready to eat perfectly popcorn.
He is at hand and exclusively with the nation's largest retailer Walmart.
It keeps a promise to do so that I made 16 months ago to our shareholders and is yet. Another example of amc's powerful commitment to innovation.
Beginning on March 11, just ahead of the Oscars telecast on March 12.
AMC is ready to eat popcorn will be available exclusively at hundreds of Walmart locations on much sought after featured end cap displays.
In the weeks that follow AMC perfectly popcorn will hit the shelves again exclusively at more than 2600 <unk>.
Walmart stores in the United States with three varieties of ready to eat popcorn in the following flavors classic butter extra butter and for those seeking a lower sodium solution lightly sold in the ready to eat varieties are expected to be priced at $3 98 per bag plus tax and they all.
All offer the authentic taste of real AMC movie theater popcorn to be enjoyed anywhere.
Then our microwave AMC perfectly popcorn will become available at Walmart again in the same three flavors classic butter extra butter light resulted.
And they are expected to retail for $4 98, plus tax for a six count box.
As an added and unique benefit the extra butter microwave boxes will include six packets.
Additional buttery topping that heaters at home can used slather all over their popcorn truly replicating that ultimate AMC.
Movie Theater popcorn experience.
This first of its kind approach viasat theatrical exhibitor <unk> distribute ready to eat in microwave popcorn at retail outlets all across the country further differentiates AMC as the undisputed leader in this industry and.
And greatly extends the visibility.
Of the AMC brand.
Another idea that came to us from our investors was to sell AMC movie themed merchandise.
We are doing so now across the United States and online.
Every major movie releases every big Tentpole releases, we have something theme for that film.
But one of many such examples of success here.
Or if you can believe it ant man popcorn outlets have.
<unk> been quite popular selling almost $2 million worth.
In less than two weeks.
This has proven to be such a successful concept that we're about to launch the same activity across our theaters in Europe .
Thank you retail shareholders for the idea.
Next on the innovation docket is the launch of our new co branded AMC Entertainment visa card.
Coming soon to a wallet or a purse near you.
It's been designed to drive increased AMC brand loyalty, along with incremental attendance to our AMC theaters and should generate attractive financial returns with very little risk.
Sure.
And finally.
We recently announced a potentially important development.
We announced that we are testing sideline ceiling at AMC in some of our theaters in New York, Chicago, and Kansas City, New York and Chicago, because there are big cities in United States, Kansas City, because we're headquartered here and we ourselves when we walk into our theaters and talk to our guests and gateway.
Our reactions directly and firsthand.
This is the test is being done.
For a potential nationwide rollout later in 2023 with sideline seating as you know if you saw the release, we are charging a slight premium for the most popular seats in an auditorium.
But discounting the prices of less popular seats closer to the screen upfront.
This is in line with our other sellers price their seats for live theater for concerts for sporting events. It's also how we've been pricing movie theater tickets in Europe for many years.
We do understand however that this is a substantial change to the status quo for U S. Moviegoers.
So we will be watching very closely how moviegoers react to the changes that are being tested right now.
We'll report back to you in future calls what we're seeing in the tests.
And we look forward to this thing working well for the benefit both of our movie going public and for AMC.
Amcs ability to continue to raise capital during.
During our ongoing recovery.
It makes all these potentially transformative innovations and new actions possible.
And it is crucial.
To our future success.
To that end.
We utilized the remainder of my formal remarks today to.
To discuss the upcoming March 14 <unk>.
Special stockholders meeting and.
And the importance of the proposals.
On which our shareholders are already voting.
Last August we issued $516 million 800000, a preferred equity units as the dividends to holders of our AMC common shares on a one for one basis.
The primary goals of issuing the dividend was to provide AMC with a new currency that can be used to strengthen our balance sheet by generating cash and bolstering our liquidity.
To reduce our debt.
Andrew will allow us to grow.
And that is precisely what the eight units have done.
Since September of 2022.
The creation of eight units resulted.
In AMC successfully raising $314 million.
Of gross cash proceeds.
And allowed us to reduce the principal balance of our debt by more than $221 million.
Most of which was profitably repurchased at a substantial discount.
Indeed, AMC is unequivocally a stronger company today.
As a result of the creation of the eighth dividend and it's allowing us to raise cash and reduce debt.
I might add that that came amidst a lot of press speculation that will be unsuccessful in doing so.
To the naysayers and do them tellers.
What I say.
So on that.
However.
Despite having the same economic and voting rights as our AMC common shares.
A preferred equity units have consistently traded at a mysterious and substantial discount to AMC common shares.
This discount creates inefficiencies that increases our cost of capital and causes unnecessary and preventable dilution.
So after careful thought.
The AMC board of directors is presenting important proposals for shareholders to vote on at the upcoming special meeting on March 14, 2022. These proposals are designed to protect the long term value of a shareholders' investment in AMC, while still providing AMC with the flexibility necessary to continue.
<unk>, along our recovery trajectory.
The challenging environment as.
As you already know.
The two key proposals are.
To one increase the number of authorized AMC common shares from 524 million to $550 million.
<unk>.
Combined the AMC.
Common shares in a preferred unit second to effect a reverse stock split of one share for every 10, which together with the increase in authorized common shares permits that automatic conversion of <unk> units in the AMC common stock.
Our board and I strongly believe that's in the best interest now of AMC shareholders to convert eight unit to convert eight units into AMC common shares, thereby simplifying our capital structure and eliminating the gap between the prices of eight units.
AMC shares.
As amc's single largest individual shareholder.
With millions of AMC shares and <unk> units.
I have a vested interest.
And the outcome of this election.
Because my net worth rises.
As AMC strengthens and my network falls as AMC gets weaker.
I currently own outright some $3 7 million AMC shares or eight units.
And have a further economic interest.
An additional $4 5 million.
H units, our AMC shares.
As a result of granted but unvested stock.
In total I have some $8 2 million.
AMC shares.
AMC units.
You know what that means it means that my interests are directly aligned with those of our shareholders.
I am not some hedge fund plan or Trojan horse as a few of the more bizarre conspiracy theories go.
On the side of the retail investor.
Because I am myself.
A retail investor.
And I would like to share with you the seven reasons why I voted yes.
Putting for the proposals.
That are being recommended by the board.
Before I do so however.
I should point out that litigation has been brought in the Delaware Court of Chancery.
Sampling attempting to block.
Our shareholder proposals.
And you're right.
Vote on them.
We believe such litigation is without merit that our actions have been totally lawful and consistent with our charter and we will vigorously defend our position in this matter.
The court has ordered that the March 14, both shall take place on schedule.
But then any implementation actions, resulting from the vote be held in advance until the court rules on the substance of the claims being made.
So the vote is on and it is on now.
<unk> urge our shareholders to vote now so that your voice can be heard.
And because I think thats the right thing for me to do and for you to do I urge you to vote for the proposals with me.
Here's why first.
A more resilient AMC having.
Having the flexibility to efficiently and Opportunistically tap, both the equity and debt capital markets results in a more resilient company.
Were it not for our ability to raise both equity and debt over the past three years AMC would not have survived the pandemic.
That caused a material decline in.
In our business activity.
<unk>.
Reduced capital raising inefficiencies associated with APE units trading at a discount to AMC shares.
Converting eight units to AMC shares will result in a single price for all AMC equity. This single price eliminates the inefficiency inherent in the discount.
H units and AMC common stock and will allow AMC to more efficiently raise equity capital at.
At the most attractive terms in the future.
Third enhance the ability to raise cash and increase liquidity.
Well I believe AMC is currently in a strong liquidity position with more than $840 million of available liquidity at the end of December 'twenty two.
The ability to efficiently raise additional liquidity when needed.
Has proven to be critical for this company in the past.
And depending upon the path and timing of recovery may be critical to our survival again in the future.
Fourth.
Strengthen amcs balance sheet.
<unk> balance sheet is expected to strengthen over time as the box office growth at the same time.
As we have demonstrated in recent months there continue to be attractive opportunities for us to use available equity or equity proceeds to buyback debt or exchange debt for equity at a discount to face value, which greatly benefits shareholders.
Fifth simplify ownership in AMC.
Consolidating ownership of AMC into one single class for all shareholders eliminates the added complexity that some brokerages have imposed on their clients and the holding our trading of our preferred equity Securities. In addition, the single class of equity eliminates the potential for hedge funds or other investors.
To engage an arbitrage trading strategies.
Between the APE and AMC Securities.
Six.
Positioning AMC to transform into a stronger more diversified company.
Single equity class will better allow us to pursue attractive shareholder value creation opportunities to diversify and to transform our business and last.
Seventh create long term value for AMC.
A vote for the resolutions is a vote in favor of the long term value of AMC.
Since we announced our intention to hold a shareholder vote to convert eight units in the AMC shares the total equity value of our company has increased.
The other matter.
Of consequence being discussed at the March 14 shoulder meeting.
Is the one for 10 reverse stock split so let me quickly address that topic.
If you have 10, one dollar bills in your pocket.
Our new exchange them for $110 Bill.
You still have $10 either way.
If you would have 10 $10 bills in your pocket.
And you exchange them for $100 Bill.
You'd still have $100 either way.
This reverse split.
In and of itself should be neutral.
However for a variety of reasons, including the technical listing rules of stock exchanges, we think it's unwise for our shares to be trading at levels in the single digits.
The reverse split also creates room to allow for the full conversion of apes into common stock, which we also think is a good idea for each of you as I previously explained.
And creates the capacity for common stock to be issued.
As equity in the future.
In my view.
I believe.
But there is no compelling argument.
While our shareholders should generally be.
<unk>.
Sure reverse stock split.
As I stated earlier.
Having the flexibility to continue to raise capital as we navigate through our recovery is crucial to amc's future success and is thus far kept us from the fate of several of our competitors.
Who have been forced to seek bankruptcy protection.
Were we to be somehow deprived of this cash raising capability.
Our future may not nearly be so bright.
As it appears currently.
Indeed, our future could turn quite bleak.
Just a blink of an eye.
I cannot emphasize enough.
That while things are looking up now our success could literally vaporize in an incident, if we miss step.
The reason we have succeeded to date is that in our opinion, we have threaded the needle perfectly here to fore during this pandemic.
But make no mistake the need to continue to thread the needle perfectly going forward is unchanged at AMC Entertainment.
Fortunately.
We're pretty good at this.
And we've been out in a while and we know what we're doing.
I know I have about three or 4 million friends out there I'd like to give me advice.
But I'd like to remind you we've done a pretty good job of Stewarding. This company during tough times.
Avoiding a dire fate.
Is a commitment that I personally made to our shareholders in the earliest days of this global pandemic when our revenues went to zero overnight and stayed there for months.
I remain steadfast in that commitment to you today.
Every action that AMC has taken.
Is in direct support of that commitment.
Despite what the naysayers of the short sellers are those who wishes arm would have you believe our mission now is clear.
And it's the same exact cause that so many of our shareholders joined and embraced way back in the dark days of 2020 and early 2021.
You all remember the hash tag.
Save AMC.
That's the report for Q4 2022 strong, let's now move to questions both from our industry analysts and from our shareholders.
Great. Thanks, Adam.
Start with some questions.
From our shareholders.
There are a number of questions coming through about the upcoming shareholder vote that we just spoke about.
He is a good example.
What are the implications if the vote pastas and what are the implications if the vote does not pass.
So if the bill passes.
It's my expectation.
That this ridiculous gap.
Between the price of an APE and the price of an AMC share will go away.
Say, it's a ridiculous gap.
Folks are the same thing.
They have the same economic rights. They are the same voting rights.
Why shouldnt be trading at.
And a third the price of our common share or seven of the price of our common share as it was just two months ago.
If it passes the vote passes I think what Youll find is that this discounting of the APE goes away.
That means is that we will be able to raise capital.
In my opinion more attractive terms.
If the similarly.
Similarly, what will happen to the passes.
<unk>.
One to 10 reverse stock split so youll start seeing the share price of AMC floating around three.
Three or four or $5 a share.
The simple math is it should multiply by 10, where it goes from there up or down that's a function of market dynamics, but it is simple math youll be trading one share you'll be trading 10 shares for one which mathematically it should be priced at times higher.
If it if the votes.
Then we're voting on this shareholder meeting do not pass.
It's true that the reverse split won't happen.
But what is true.
Is that the status quo doesn't change.
Which means that there's still the apes and theyre still the AMC shares.
The <unk> will continue to trade at a discount I would guess.
No one has a perfect crystal ball, but.
So that's been the experience since since August and since our ability to raise capital.
Is tied only to the price of the APE.
If the APE continues to exist.
It would seem that we would be we wouldn't be bought from raising capital.
<unk> be raising capital on much less attractive terms.
It would cause more dilution of the stock that is entirely 100% preventable.
If a majority of our shareowners vote, yes.
So he has another question related to this it's related to the reverse stock split.
And basically it says why do we need to do a reverse stock split call me just convert APE units into AMC without doing this reverse stock split.
Could.
But as I said in my early remarks.
The share price would hover in the single digits.
And.
There are certain technical listing rules on stock exchanges, we don't think it's a good idea for our stock would be trading in single digits and since we're going to have a shareholder vote anyway.
It seems logical to us.
To resolve both.
Questions at the same time, it's expensive to call. These special meetings of shareholders cost millions of dollars to do so we'd rather get them both done now.
And have to deal with.
We're a stock split at some point in the future.
We have a number of shareholders asking about the proxy materials. When example, yes I have not yet received my proxy materials from a broker.
Do I need to do to be able to vote or to get my proxy materials and be able to but as bill Clinton famously said the $19 90 as for those of you are old enough to remember the 19 nineties I feel your pain.
My AMC shares and eight units are at for brokerage firms and I have received a voting materials from three of the four firms, but not the fourth so if you have not heard from your broker you should do and are about to do call them.
Explain to them that there is a march 14th shareholder vote that you own shares or units.
And that you'd like to cast your vote and they should get you a proxy.
If you're a broker is not acting in response to your question quickly enough email.
E mail or call our proxy solicitor DF King.
Can resubmit an email address.
<unk> King Dot com.
AMC at DS King Dot com their phone number is $885 98511, all of the information I. Just gave is for our U S shareholders, probably our Canadian shareholders and international showrooms in many countries, but we are all in.
We're painfully.
That the brokerage firms in some countries, especially in Europe .
Do not facilitate shareholder voting.
And if that was one of those firms there's not much you can do other than puts you for your shares in a different broker would allow you to vote at future shareholder meetings.
And there's a question here about the law suit that you mentioned in your prepared remarks. It says it has been reported that AMC is defending against two lawsuits relating to the issuance of eight units is this true.
Can you elaborate.
Yes, litigations in fall, we think it's misguided.
We believe that.
All of the actions we've taken are lawful.
We think we have the merits and in this case, it's consistent with our charter we will defend our position vigorously and we are encouraged that the Delaware Court of Chancery has allowed this March 14 vote to proceed on schedule.
There are some questions here about our loyalty programs.
I'll just read a few of them.
And does the AMC have any plans to revise loyalty programs and Alice memberships for example, what about family memberships partnerships with streaming companies, maybe a lower price for memberships with restrictions to limit the frequency of attendance et cetera.
So those are all good questions and good ideas.
We have been and are studying them all.
The two of the most important marketing programs we have.
Our AMC stubs.
And especially AMC stubs a list about.
About half of our total clientele in the United States.
<unk> participates in stubs.
And about 15% of our total activity.
Stacey comes from a list members.
These are very important programs, we're constantly reviewing them for possible changes and improvements.
There is nothing immediately on the horizon that would change either program other than <unk>.
<unk> Entertainment card, that's going to be added and AMC Entertainment visa card guys that are right AMC entertainment visa card that will be coming as part of the stubs program that will allow stubs members.
Even to earn even more subs points, both when they spend at our theaters and when they spend away from our theaters.
But keep the good ideas flowing.
We continue to think hard about what's the best way.
For AMC to.
Approach the movie going public.
Question about our theater footprint does AMC plan on opening new theaters in areas, such as perhaps South Carolina or other states.
M C.
Limited presence.
I can't make a specific comment about South Carolina.
But.
At least South Carolina is one of our theaters.
We have not and why we have done in Alaska, We have 19, Mississippi I don't think we are in Vermont.
But we do have the largest national footprint.
Any operator.
We're in 43 of 44 states in the district of Columbia.
We have a sizable market share in the largest cities all across the country plus we have a big platform of theaters, even if smaller rural markets.
We're always looking to add theaters and you said earlier in the call Sean.
We closed over 100 theaters that were not performing during the pandemic, but we opened up 54, new ones and the 54 new ones.
We're producing those bottom line far more.
Then the 100 that we close I think Ted is 54, probably produce far more EBITDA than the 100 that we closed.
So we're always looking to grow we can grow by adding newbuild theaters from the ground up or there is also the opportunity for us to inexpensively add into our system theatres that may have been opened by other operators who have faltered during the pandemic.
Several firms declared for bankruptcy.
And over the last three years and shed a lot of theaters and we picked up a bunch as you know we picked up about a third of the Arclight circuit.
Which was headquartered in Los Angeles, we picked up more than half of the bowtie circuit that was headquartered in Connecticut.
Our eyes continue to be wide open I do believe.
That there will be a continued opportunity for AMC.
Add theater locations quite inexpensively, and I might add to do so sometimes that requires money.
Which is why it was so very helpful to us that we have raised over $300 million of cash.
From August through.
Sure.
January .
The more cash in the bank.
The easier it is to make the decision to add theaters and grow.
There is a huge amount of interest in the retail launch of AMC perfectly popcorn.
Let me read to you just a few of the questions can you talk more about the opportunity for AMC in retail popcorn when will AMC popcorn be available in the U S nationwide will AMC popcorn and be available to purchase online through the AMC website with AMC popcorn be available to purchase in Canada and maybe in Europe .
It's a lot of questions.
Yes.
Yes, the enthusiasm and excitement for AMC perfectly popcorn at home.
Is real.
It on Twitter.
I look at the readership of the tweets I've been putting out recently on popcorn.
They are sky high.
<unk> Sky high the re tweets are sky high.
Comments back to meet every single one of which I read by the way I kind of like four to 5000 inbound messages.
Popcorn <unk> recently and I read them all.
Where they make me excited because you're excited about it.
We launched March 11.
Yeah.
Oscar weekend.
With ink end cap displays at Walmart, they're almost impossible to get at.
And Walmart volunteer them up to us because they're excited about popcorn.
And by late April we will be at 2600 more than 2600, Walmart stores, that's more than half of all Walmart locations in the United States. We will have a website, where you'll be able to go to find out at what locations youll be able to.
<unk>.
Actually pick up boxes of microwave popcorn or bags of <unk> popcorn.
We are going to sell on Walmart Dot com, which of course is nationwide I would expect that we will sell and AMC theatres dot com, we're discussing whether or not we should.
Sell microwave boxes of popcorn at our theaters.
Like it's all new we haven't started yet.
The interest level is very high this is a nice position to be in when you're launching new product, let's put it this way.
We're setting up our production plants.
To make millions of bags and microwave pouches of popcorn.
This is a big opportunity for US right now we're going to launch only in the United States.
Canada is a possibility.
If we did it in Europe , we would probably not do it under the AMC brand, we would do it under the one of the Odeon brands of our cinemas operate with their own distinct brands.
Several countries across Europe .
But right now we're.
You crawl before you walk you walk before you run we're going to start in the United States and see where it goes from there.
And we continue to receive.
A very large number of really terrific suggestions from our retail investors business ideas to grow and diversify and build on the business and I want to say that we.
As a management team review these we investigate these so please <unk>.
Please keep these ideas coming.
With that let me just respond.
What are the oddity accompany that actually listens to its investors how about that for a change yes. Sir you want to go to a question from an analyst questions, we're already running a little bit long, but.
On this call today, but if any investor wants to ask go ahead.
Operator, we can go to questions from.
Analysts.
Thank you very much.
We will now be taking live questions if you'd like to ask a question. Please press star one on your telephone keypad.
A confirmation tone will indicate your line is in the question queue.
You May press star two if you'd like to remove your question from the queue.
All participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
So we have time for only one question and we take question from the line of Eric Wold with B.
B Riley Securities. Please go ahead.
Hey, good afternoon, Adam and Sean I appreciate it.
And as much as I'm looking forward to the popcorn business separately.
Separately reported segments.
Couple of questions on the on the core the theater business I guess I guess first off.
Eric <unk> to interrupt, but youre going to like more than.
Our how we report the popcorn results.
Eating the popcorn, it's really good we actually worked for a full year on the flavor profile of these products they are really great.
I'm looking forward enjoying it with the Oscars.
On the same line seating.
Plan.
Our program.
Obviously, it makes sense given what we've seen with other entertainment businesses I guess, what are your thoughts on where you see the biggest benefit coming from is it the.
Premium on the better keep filling up the less desirable seats out there price lower or is it that.
Loyalty members don't pay the premium seat charges the benefit driving more loyalty membership into that program.
And the answer is all of the above.
You've got the three benefits of the concept right, we can discount upfront charges slight premium in the middle and we don't charge.
When I say the middle of the Dead Center of the auditorium, where most people want to set.
And if we don't charge that.
Premium and impose it on a listers that's just another big value increase for a list members.
Which should make more people want to be a list members. So all three.
Have the ability to drive improvement and.
Some people have looked at this as a price increase.
Which of course it is on day, one, but what's really interesting is that.
We are in inflationary times.
And inflationary times cause costs to rise.
And without making any comment about what AMC is going to do because it's not.
It's not legal to talk about pricing prospectively.
But companies facing inflationary pressures tend to raise prices not talking about AMC under the pre sightline.
Structure of our industry.
We wanted to raise the price in a theater.
The only choice we had with the raised the price on all of the seats in the theater.
And so one of the many benefits of sideline.
Other than the three that you mentioned.
Are there.
If we feel the need to raise prices, we might only do it.
And the most popular seats in the auditorium and actually hold the line.
And not raise prices.
Other seats in the auditorium.
So it is actually a way of well is a way of increasing the price now.
The potential way of preventing a price increase later on and then there is in fact.
The opportunity to discount upfront I'm, telling you I was looking at what we call heat maps, which are.
The what seats are booked for particular movie.
And <unk>.
Nobody sits in row, one and.
In the movie theater, it just doesn't happen it could be opening night of Star Wars.
Every seat auditoriums in row.
<unk> 18 is booked solid in row, one is empty.
And it really is there is a possibility here.
By discounting the price upfront, we might be able to expand the movie going market.
To more price sensitive consumers.
Okay. That's helpful. Thank you very much appreciate it.
Thank you ladies and gentlemen, we have reached the end of the question and answer session and I would like to turn the floor back over to MS. Sharon for her closing comments over to you Sir.
Thank you operator to everyone on the call. Thank you for being with us today.
Today was a good day for AMC, we reported results that were unexpectedly positive.
We introduced our popcorn line.
And we've had a lot of discussion about the importance of the March 14 shareholder meeting.
That will simplify and strengthen the capital structure of this company going forward. Thank you for joining US today, there are a lot of big movies coming out.
We look forward to seeing you at our theaters sometime soon.
Thank you very much sir ladies and gentlemen.
This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
Yeah.