AMC Entertainment Inc.

20 Pages·2010·0.46 MB·English

AMC Entertainment Inc.
J.P. Morgan Global High Yield
Debt Conference
March 2010
Safe Harbor Disclosure
TThhiiss pprreesseennttaattiioonn mmaayy iinncclluuddee ““ffoorrwwaarrdd-llooookkiinngg ssttaatteemmeennttss”” wwiitthhiinn tthhee mmeeaanniinngg ooff SSeeccttiioonn
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 Company’s expectations are disclosed in
the risk factors contained in the Comppanyy’s Annual Repport for the fiscal yyear ended Appril 2,,
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 AMC Entertainment Inc. Private and Confidential Page 2
Company Representatives
GGeerrrryy LLooppeezz
CEO & President
CCraiig RRamsey
Executive Vice President & Chief Financial Officer
Terry Crawford
Vice President & Treasurer
Mike Zwonitzer
Senior Vice President, Finance
Debt Conference March 2010 AMC Entertainment Inc. Private and Confidential Page 3
Company Overview
IInnovattor wiitthh HHiighhestt PPerfformiing TThheattres
(cid:131)
AMC is one of the world’s largest and most innovative theatrical exhibition companies
••
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•
Revenues of $2.4 billion
•
17,600 associates
(cid:131)
Leading major market operator
(cid:131)
Industry’s highest performing theatres
Per Theatre Metrics
Attendance Revenues OCFBR
Screens (000s)1 (MM's)1 (MM's)1
AMC 15.2 669 $7.9 $2.8
Regal 12.4 437 $5.2 $1.7
Cinemark 13.0 560 $5.3 $2.0
Industry 7.1 249 - -
Source: (1) Based on U.S. and Canada for 12/09 LTM, Industry as of 12/08.
Debt Conference March 2010 AMC Entertainment Inc. Private and Confidential Page 5
LLeaddiing MMajjor MMarkkett TThheattre OOperattor
Wilkes-Barre
Seattle / Tacoma Lansing
Grand Rapids
Hartford
Sppokane Cleveland Boston
BBuuffffaalloo
Providence
Binghamton
Minneapolis
Detroit
Rochester
Harrisburg
Milwaukee New York
Philadelphia
Pittsburgh
SSaann FFrraanncciissccoo // Chicaggo Baltimore
Columbus
San Jose Omaha
Washington, DC
Salt Lake City Indianapolis Cincinnati
Norfolk
Kansas City
Denver
Charlotte
St. Louis
Los Angeles
Tulsa
OOkkllahhoma CCiitty Columbia
Ft. Smith Atlanta
Phoenix
Charleston
San Diego
Dallas / Fort Worth
Tallahassee Jacksonville
Tucson
New Orleans
Austin Orlando
Houston
TTaammppaa // SStt. PPeettee WWeesstt PPaallmm BBeeaacchh
San Antonio
Miami / Ft Lauderdale
% of Screens in Top DMAs Fort Myers
As of
12/31/09 Top 25 Top 50
AMC 80% 94%
Regal 56% 76%
Cinemark 46% 61%
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Debt Conference March 2010 AMC Entertainment Inc. Private and Confidential Page 6
BBeneffiitts off MMajjor MMarkkett FFocus
(cid:131)
Higher population density
(cid:131)
Greater levels of affluence
(cid:131)
Broader ethnic and cultural diversity
(cid:131)
GGrreeaatteerr iimmppoorrttaannccee ttoo ccoonntteenntt pprroovviiddeerrss
(cid:131)
Greater population growth
Superior Population Growth in Top DMAs
2008-2013 % of LTM
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Top 25 DMAs 5.8% 60%
Top 50 DMAs 5.9% 76%
AAllll OOtthheerr DDMMAAss 22..99%% 2244%%
Debt Conference March 2010 AMC Entertainment Inc. Private and Confidential Page 7
DDiigiittall OOffffers EExciittiing GGrowtthh OOpporttuniittiies
3D IMAX
(cid:131) (cid:131)
Plans to add up to 1,500 RealD 3D AMC has an agreement in place with
AMC’s
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Portfolio
Canada projection systems
(cid:131) (cid:131)
Currently 117 2K and 247 4K systems Currently available in 78 theatres with
have been installed with an additional planned expansion to 81 by FYE ’10
522 4K units planned for installation by
FYE ‘11
(cid:131) (cid:131)
Generates double the attendance of 2D ~40% of IMAX attendance is incremental
Financial
Impact (cid:131) (cid:131)
Admission price $2 - $3 more per ticket Admission price is greater than $4 more
per ticket
(cid:131)
MMiinniimmaall ccaappiittaall eexxppeennddiittuurreess uunnddeerr
revenue sharing model
(cid:131)
Upcoming (cid:131) C’09 over $1.3B Gross, 4x C‘08 of $0.3B 11 titles to release in C’10
(cid:131)
Products 24 ttittleess ttoo reeleeaassee in CC’100
Debt Conference March 2010 AMC Entertainment Inc. Private and Confidential Page 8
DDCCIIPP a RRealliitty
(cid:131)
Distributor Participating Distributors support deployment period of 5-years; supported by a 10-year
Agreements Virtual Print Fee (“VPF”) payment agreement
(cid:131)
100% of content in a digital format
(cid:131)
Non-participating Distributors pay higher VPF
(cid:131)
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Agreements (cid:131)
Agree to maintain equipment; DCIP pays repairs and replacement
(cid:131)
Financing $425M in debt, plus $135M of junior capital plus $80M from Exhibitors in the form of
cashh andd exiisttiing equiipmentt
(cid:131)
Current funding ($640M) will complete ~85% of deployment plan ($740M)
(cid:131)
Moody’s Rating: Baa2 – Baa3
(cid:131)
Deployment DCIP targeting to close on financing today!
Plan (cid:131)
AMC deployment to begin in April and take 3.5 years to complete circuit
(cid:131)
3D screens to be deployed in first 12 months
Debt Conference March 2010 AMC Entertainment Inc. Private and Confidential Page 9
GGrroowwtthh SSttrraatteeggiieess WWiitthhiinn OOuurr CCoorree BBuussiinneessss
(cid:131)
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
(cid:131)
Expanding the menu of premium food and beverage products
Concessions and
In-Theatre Dining •
Alcohol, better for you items, made to order, customized coffee, hot food
items and other gourmet products
••
PPre-packkagedd SSKKUU iittems tto encourage iimpullse purchhases
(cid:131)
Enhancing dining experience
•
Fork & Screen: Casual, in-theatre dining and entertainment experience
•
Cinema Suites: Premium, upscale in-theatre dining and entertainment option
••
MMacGGuffffiins: BBar andd llounge area
(cid:131)
Customer MovieWatcher frequent moviegoer loyalty program
Loyyaltyy •
55.00 mmiilllliioonn ddaattaabbaassee;; 11.55 mmiilllliioonn aaccttiivvee mmeemmbbeerrss
(cid:131)
Programming Aggressively target film projects to our demographics
•
urban, action, diverse
(cid:131)(cid:131)
DDevellop alltternattiive sources
•
sports, music, specialty film
Debt Conference March 2010 AMC Entertainment Inc. Private and Confidential Page 10