AMC Entertainment, Inc. (AMC) is a movie theater owner and operator headquartered in Leawood, Kansas. The company operates the second largest theatre circuit in North America with 1,258 theatres and 11,259 screens across the United States and Canada as of June 30, 2018. AMC has its operations divided into three segments: U.S. Markets ( theaters and screens), International Markets (theaters and projection equipment), and Investments & Other Activities (transmission equipment rental).
Market cap of AMC
AMC has a market cap of around $2.5 billion as of October 2018. The company trades at a premium as measured by the average enterprise value to EBITDA multiple of 16.5x, which is higher than other comparable movie theater operators.
In June 2008, AMC announced the acquisition of Starplex Cinemas for US$172 million in cash and 1.3 million shares worth about US$83 million. The acquisition more than doubled the U.S. footprint of AMC and made the company the largest movie theater operator in America, with over 830 theatres and 7,500 screens. Revenues for Starplex Cinemas were about US$350 million in 2007.
In September 2010, AMC announced its acquisition of Odeon & UCI Cinemas from private-equity firm Terra Firma for US$921 million, including assumed debt. The acquisition more than doubled AMC’s international footprint to 242 theatres and 1,009 screens in nine countries across Europe.
In May 2011, the company acquired an additional 126 cinemas from its parent company Mid-Atlantic Amusements.
In November 2012, AMC completed the acquisition of U.K.-based Odeon Cinemas for US$235 million from Guy Hands’ private equity firm Terra Firma. The transaction included a seven-theatre cinema in Ohio and a 15-theatre cinema in Michigan, as well as Odeon’s multiplex properties in the United Kingdom, Italy, Spain, and Portugal. After the acquisition, Odeon will operate in eight countries with over 470 theatres and close to 715 screens.
In 2013, AMC acquired Carmike Cinemas for $8.5 billion in cash and stock; at the time of its acquisition by AMC, it had more than 1,700 theatres and almost 4,200 screens in the U.S., making it the largest movie theater operator in the country.
In August 2016, Odeon & UCI Cinemas was sold to AMC for US$921 million following a loss of earnings by Terra Firma between 2008 and 2015, resulting from its investment into Odeon & UCI Cinemas. The purchase is worth up to US$1.2 billion, depending on future performance.
On December 3, 2018, AMC announced its intent to acquire Nordic Cinema Group for $822 million in cash and stock. Nordic Cinema operates Scandinavian theatres with 168 screens primarily in Sweden, Norway, Denmark, and Finland. The deal is subject to antitrust approval and is expected to be complete by next summer.
AMC’s largest market is in the United States, where it operates over 900 theatres with a total of 5,034 screens in 40 states and Puerto Rico as of June 2018. In addition to their own operations, AMC has been the largest partner in the MoviePass subscription program since August 2017.
If you’re looking for a place to invest your money, AMC Entertainment is one of the best options out there. The company has been around since 1920 and has grown significantly in recent years by acquiring smaller theaters like Starplex Cinemas and Carmike Cinemas. AMC’s mission is to be the world’s leading movie theater operator, which explains why they are continuing with their acquisition streak by buying Nordic Cinema Group next year. We hope this article on all things AMC stocks helped!