Amc Entertainment Holdings, Inc. · NYSE:AMC
Amc Entertainment — Merger or Acquisition (March 2016)
13 slides from Amc Entertainment's merger presentation, Mar 4, 2016
Slide 1: Disclaimer
Disclaimer 2 This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “will,” “would,” “expect
Slide 2: Transaction Highlights
3 Transaction Highlights Increases platform for AMC’s strategic growth initiatives - Expect over 400 incremental Recliner Re-seat screens over the next 5 years Circuits with limited geographic overlap and complementary genre box office performance Combination of AMC and Carmike results in over 600 t
Slide 3: Transaction Overview
Transaction Overview 4 Key Transaction Terms As of March 3, 2016. Combined Operating Strategy Maintain two brands, one focused on large, urban areas and one focused on midsize non-urban areas Plan to eliminate redundant overhead costs Closing Conditions & Timing Shareholder vote required only for Ca
Slide 4: Significant Value Creation for AMC Shareholders
+ Significant Value Creation for AMC Shareholders Accretive to free cash flow per share in first full year Increases opportunity for deployment of growth initiatives Expected annual cost synergies of approximately $35 million Quarterly dividend maintained Receive founder shares in National CineMedia
Slide 5: Pro Forma Circuit Snapshot Post Transaction
Pro Forma Circuit Snapshot Post Transaction 6 Source: Public filings. + = Attendance (in millions) Theatres Screens Revenue (in $million) Screens per Theatre 197 65 262 AMC Carmike PF AMC 387 276 663 AMC Carmike PF AMC 5,426 2,954 8,380 AMC Carmike PF AMC $1,892 $490 $2,382 $1,055 $314 $1,369 $2,947
Slide 6: Geographic Focus: Complementary Circuits
Geographic Focus Large Urban Areas Midsize Non-Urban Areas Northeast, Midwest, West Coast South, Southeast Theatres by DMA(1) Top 10 DMAs 182 - (47%) 36 - (13%) Top 11-25 DMAs 78 - (20%) 46 - (17%) Top 25 – 50 DMAs 59 - (15%) 51 - (18%) 50+ 68 - (18%) 143 - (52%) Top 5 Films in 2015 (Ordered by Rank
Slide 7: Complementary Consumer Base Reduces Volatility
8 Complementary Consumer Base Reduces Volatility Source: Rentrak - Reflects percentage of respective median box office market share. Comparative Box Office Performance Versus Industry Norm
Slide 8: Significant Synergy Opportunity
Significant Synergy Opportunity 9 Ability to achieve synergies with Elimination of corporate overhead Net operating contract synergies Approximately $35 million of estimated annual operating synergies + = + Larger platform of theatres for AMC growth initiatives Additional founders shares in National
Slide 9: AMC's Growth Initiatives Have Track Record of Success
10 AMC’s Growth Initiatives Have Track Record of Success Recliner Success(1) First 43 locations converted prior to January 1, 2016, excludes screens acquired. 52 weeks ended December 29, 2011 and twelve months ended December 31, 2015 First 11 locations open prior to January 1, 2014, Second year post
Slide 10: Combination Expands Platform for Growth Initiatives
11 AMC Current Screens (1) 3,995 1,119 312 AMC 5-Yr. Target Screens (2) 2,185 3,523 450 Carmike 5-Yr. Target Screens(2) 2,018 428 86 Consolidated 5-Yr. Target Screens(2) 4,203 3,951 536 Big, Stable Core Circuit Recliner Re-seats Dine-In Theatres Emerging Growth Circuit As of December 31, 2015 Includ
Slide 11: Transaction Financing Overview
12 Transaction Financing Overview ($ in millions) (1) Assumes Carmike bondholders do not exercise change of control put option. Fully committed financing TLB commitment of $560 million (under existing accordion capacity) $325 million to fund acquisition $235 million to backstop the change of control
Slide 12: Key Takeaways
Key Takeaways Creates the leading U.S. theatrical exhibition company Enhanced opportunities for AMC’s comfort and convenience growth initiatives Expect approximately $35 million annual run-rate synergies Minimal overlap between AMC’s large urban areas and Carmike’s midsize non-urban areas Receive ad
Slide 13: Key Takeaways
Key Takeaways v Creates the leading U.S. theatrical exhibition company Enhanced opportunities for AMC’s comfort and convenience growth initiatives Y Expect approximately $35 million annual run-rate synergies Minimal overlap between AMC’s large urban areas and Carmike’s midsize non-urban areas Receiv
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