Amc Entertainment Holdings, Inc. · NYSE:AMC
Amc Entertainment — Debt Investor Presentation (June 2012)
31 slides from Amc Entertainment's debt investor presentation, Jun 13, 2012
Slide 1: AMC Entertainment Inc. Presentation to Lenders
AMC Entertainment Inc. Presentation to Lenders June 13, 2012
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure All statements, other than statements of historical facts, included in this presentation regarding the prospects of our industry and our prospects, plans, financial position and business strategy may constitute “forward - looking statements” within the meaning of Section 27 A
Slide 3: AMC, Wanda and Citi Representatives
Private & Confidential Lender Presentation - June 2012 Page 3 AMC Representatives Gerry Lopez Chief Executive Officer & President Craig Ramsey Executive Vice President & Chief Financial Officer Wanda Representatives Lin Zhang Vice President and Chief Financial Officer Geffrey Liu General Manager, Se
Slide 4: Agenda
Private & Confidential Lender Presentation - June 2012 Page 4 Agenda x Review acquisition structure and strategic rationale x Review key business highlights x Review FY2012 financial results x Wanda overview x Discuss proposed capital structure plan x Q&A
Slide 5: Wanda Acquisition
Private & Confidential Lender Presentation - June 2012 Page 5 Wanda Acquisition
Slide 6: Dalian Wanda merger agreement to acquire AMC Entertainment
Private & Confidential Lender Presentation - June 2012 Page 6 x On May 20, 2012, Dalian Wanda entered into a merger agreement to acquire AMC Entertainment • Wanda Group (“Wanda”) is a large, privately held corporation with five major businesses: commercial properties, cultural industries, tourism, d
Slide 7: Wanda Acquisition of AMC - Transaction Rationale
Private & Confidential Lender Presentation - June 2012 Page 7 x Creates world’s largest movie exhibitor x Only theatre operator with exposure to the two largest movie exhibition markets in the world x Marries the heft and size of the U.S. business of AMC with the rapid growth of the Wanda Chinese ci
Slide 8: Performance Highlights
(SSE Performance Highlights
Slide 9: Key highlights
Private & Confidential Lender Presentation - June 2012 Page 9 Key highlights x Strength of recent box office performance x Highest performing theatres x Leading position in largest, most important markets x Incremental growth from enhancing customer experience • IMAX and 3D deliver a differentiated
Slide 10: Recent Industry Box Office Strength
Private & Confidential Lender Presentation - June 2012 Page 10 Recent Industry Box Office Strength Industry Box Office – LTM ($ in billions ) x The US Box Office has historically been volatile on a year - over - year basis, however the long term trend has been positive x CY ’12 results have been pos
Slide 11: AMC is well positioned in the face of industry volatility
Private & Confidential Lender Presentation - June 2012 Page 11 AMC is well positioned in the face of industry volatility $8.96 $8.76 $6.59 AMC Regal Cinemark $3.73 $3.36 $3.21 AMC Regal Cinemark (1) US only, LTM March 2012. Pro forma for AMC Stubs. M Attendance / Theatre (1) OCFBR / Theatre in M (1)
Slide 12: Leading position in largest, most important markets
Private & Confidential Lender Presentation - June 2012 Page 12 Source: Rentrak and Nielsen Claritas (1) As of March 29 , 2012. Major Market Benefits x Higher population density and growth x Better demographics – affluence, diversity x Visibility / importance to U.S. box office x Real estate scarcity
Slide 13: IMAX and 3D deliver a differentiated experience at a higher ticket price
Private & Confidential Lender Presentation - June 2012 Page 13 x Premium format pricing is 39% to 68% above traditional 2D x 16% of attendance in IMAX, ETX and 3D; ~$121 million premium admissions revenue x Building programming consistency and differentiation with IMAX (e.g., MI4) x Consumer demand
Slide 14: Enhanced seating platforms significantly improve guest experience
Private & Confidential Lender Presentation - June 2012 Page 14 x Seating upgrades driving significant results x Attendance, revenue and operating cash flow exceeded pre - remodel levels x ROIs exceeding targets x Landlords are providing capital as well x Plans to replicate elsewhere • Five planned i
Slide 15: Portfolio approach to enhanced food & beverage concepts
Private & Confidential Lender Presentation - June 2012 Page 15 Capital Intensity Lower Higher Refreshed Concession Stands (Broader Assortment) Concession Marketplace (Fixturing) MacGuffins Bar & Lounge Fork & Screen / Cinema Suites Dine - in Theatres x New menu boards & merchandising x “Better for Y
Slide 16: AMC concession per patron continues to provide revenue upside
Private & Confidential Lender Presentation - June 2012 Page 16 x CPH from $ 3.42 to $ 3.73 in F’2012 (PF AMC Stubs) • For every $1.00 generated in ticket gross profit we generate an additional $ 0.77 in concession gross profit $3.24 $3.42 $3.73 F'10 F'11 F'12 AMC concession per patron continues to p
Slide 17: AMC builds guest engagement in theatres and sustains online
Private & Confidential Lender Presentation - June 2012 Page 17 AMC builds guest engagement in theatres and sustains online x AMC Stubs loyalty program acquired 3.2 million members in launch year x Higher guest satisfaction – increased to 51.6% “top box” x Greater digital engagement • Refreshed AMCTh
Slide 18: Financial Update
Private & Confidential Lender Presentation - June 2012 Page 18 Financial Update
Slide 19: Historical Operating Results
Private & Confidential Lender Presentation - June 2012 Page 19 Historical Operating Results Consolidated Summary Operating Statement (1) Excludes preopening expense, theatre and other closure expense (income) and disposition of assets and gains. (2) Excludes stock - based compensation. (3) Adj . EBI
Slide 20: Consolidated Key Analyticals – F'12 Q4
Private & Confidential Lender Presentation - June 2012 Page 20 Consolidated Key Analyticals – F’12 Q4 (3/29/12) Consolidated Key Analyticals 52 weeks ended 3/29/12 3/31/2011 % change Average Screens 4,977 5,086 (2%) Attendance (000's) 199,884 194,412 3% APS (annualized, 000's) 40.2 38.2 5% Average T
Slide 21: Wanda Overview
Private & Confidential Lender Presentation - June 2012 Page 21 Wanda Overview
Slide 22: Wanda Overview
Private & Confidential Lender Presentation - June 2012 Page 22 Wanda Overview x Wanda, established in 1988, is the one of the largest private companies in China, specializing in: • Commercial Properties • Luxury Hotels • Tourism • Cultural Businesses • Department Stores x Wanda has approximately $17
Slide 23: Wanda Business Line Overview
Private & Confidential Lender Presentation - June 2012 Page 23 Wanda Business Line Overview Business Line Description Commercial Properties x Leading company in China’s commercial property sector x Currently owns 49 Wanda Plazas, with 9mm square meters x Expects to have 120 Wanda Plazas with 24mm sq
Slide 24: Wanda Cinema Line Corporation
Private & Confidential Lender Presentation - June 2012 Page 24 Wanda Cinema Line Corporation x Incorporated in 2005, Wanda Cinema is the first private theatrical exhibition company in China • Currently operates 86 locations with 730 screens x On March 24, 2011, Wanda Cinema has entered an agreement
Slide 25: Financial Highlights (2011)
Private & Confidential Lender Presentation - June 2012 Page 25 Financial Highlights (2011) x Contracted revenue of $17bn x Recognized revenue (Chinese GAAP) of $9.9bn x Assets of $42bn x Expects to increase contracted annual revenue to $32bn and assets to $48bn by 2015 x Cash balance of $7.7bn x Net
Slide 26: Key Relationships
Private & Confidential Lender Presentation - June 2012 Page 26 Key Relationships x Wanda received financing commitments from its banks sufficient to manage any refinancing needs related to this transaction x AMC and its subsidiaries will not become obligors in the event that any of these commitments
Slide 27: Wanda Management Team
Private & Confidential Lender Presentation - June 2012 Page 27 Wanda Management Team Name and Title Background Wang Jianlin, Chairman x Senior Engineer x 20 years of experience in real estate industry x Founder and principal shareholder x Vice Chairman of the All - China Federation of Industry and C
Slide 28: Proposed Capital Structure Plan
Private & Confidential Lender Presentation - June 2012 Page 28 Proposed Capital Structure Plan
Slide 29: Transaction Overview and Additional Capital Structure Plans
Private & Confidential Lender Presentation - June 2012 Page 29 x Seek consents from lenders to waive the change of control provision in AMC’s $962.5mm Credit Facility x Also seek to change AMC’s fiscal year to calendar year - end $600mm 8.75% Senior Notes and $600mm 9.75% Senior Subordinated Notes •
Slide 30: Capitalization overview
Private & Confidential Lender Presentation - June 2012 Page 30 Capitalization overview $ in millions Pro Forma Capitalization Maturity Profile $140 $300 $470 $600 $600 2012 2013 2014 2015 2016 2017 2018 2019 2020 Secured Debt Unsecured Debt Call 8.0% Senior Notes 3/29/2012 3/29/2012 ($ in millions)
Slide 31: Indicative timeline
Private & Confidential Lender Presentation - June 2012 Page 31 Indicative timeline Date Event June 13 th Lender Conference Call June 21 st Lender Consents Due June 25 th Finalize and Close Amendment May 2012 June 2012 S M T W T F S S M T W T F S 1 2 3 4 5 1 2 6 7 8 9 10 11 12 3 4 5 6 7 8 9 13 14 15
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