AMC Entertainment Holdings Inc. (AMC - Free Report) reported mixed financial results in the third quarter of 2016. While the top line lagged the Zacks Consensus Estimate, the bottom line surpassed the same.
GAAP net income was $30.4 million or 31 cents per share compared with $12.1 million or 12 cents in the prior-year quarter. Third-quarter earnings per share of 31 cents were ahead of the Zacks Consensus Estimate of 28 cents.
Quarterly total revenue was $779.8 million, up 13.2% year over year but slightly below the Zacks Consensus Estimate of $782 million. Segment wise, Admission revenues were $496.7 million, up 12.6% year over year. Food and beverage revenues were $248.9 million, up 14.8% year over year. Other theater revenues were $34.2 million, up 10.8% year over year.
Quarterly operating expenses were $714.2 million, up 9.3% year over year. Operating income was $65.5 million, down a whopping 84.3% year over year. Operating margin increased to 8.4% from 5.4% in the year-ago quarter. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $144.4 million, surging 32.5% year over year. Adjusted EBITDA margin was 18.5% compared with 15.8% in the year-ago quarter.
During the third quarter of 2016, AMC Entertainment generated $77.4 million of cash from operations compared with $16.3 million in the year-ago quarter. Adjusted free cash flow was a negative $38.9 million compared with a negative $55.5 million in the prior-year quarter.
At the end of the third quarter of 2016, AMC Entertainment had $46.3 million of cash and cash equivalents and $1,853.5 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 third-quarter 2016 end, was 0.54 against 0.55 at the end of 2015.
AMC Entertainment competes with Carmike Cinemas Inc. (CKEC - Free Report) , Cinemark Holdings Inc. (CNK - Free Report) and Live Nation Entertainment Inc. (LYV - Free Report) . AMC Entertainment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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