AMC adjusted EBITDA jumps 69.6% to $321.4M in Q2

AMC Entertainment Holdings posted a sharp second-quarter improvement as higher movie theater traffic boosted revenues and cash flow. Total attendance rose 13.5% year over year to 71.3 million patrons, driving total revenues up 14.2% to $1.597 billion.

U.S. market revenues grew 13% to $1.26 billion with attendance rising 12% to 52.5 million patrons. International revenues gained 19.2% to $338.1 million as attendance advanced 17.9% to 18.8 million patrons. Meanwhile, food and beverage revenues increased 15.3% to $576.1 million, and spending per patron rose 1.6% to $8.08. Competitor Cinemark Holdings also saw U.S. attendance rise 8.7% to 40.1 million patrons.

Operating discipline helped lift profitability, as operating costs and expenses increased 4.1% to $1.36 billion. Operating income rose to $238.1 million from $92.6 million a year earlier. Adjusted EBITDA jumped 69.6% to $321.4 million, with the adjusted EBITDA margin expanding 650 basis points to 20.1% from 13.6%. About 66% of the roughly $200 million in incremental revenues flowed directly to adjusted EBITDA.

Cash generation strengthened during the period. Net cash provided by operating activities reached $235.4 million, up from $138.4 million a year earlier, while free cash flow rose to $190.1 million from $88.9 million. AMC noted that working capital typically provides cash in the second and fourth quarters but consumes cash in the first and third quarters, meaning annual free cash flow breakeven will require further progress.