AMC Entertainment: Buying Opportunity Emerging, With Strong Fundamentals Intact
Johannes Salim, CFA
Johannes Salim, CFA
Mon, Sep. 19, 12:32 PM
- Lions Gate (NYSE:LGF) is off 4.4% after its critically mixed horror film Blair Witch fell well short of knocking off Sully (TWX +1.4%) from the top of the box-office chart.
- Blair Witch was the best of three top-five debuts, but Sully's $22M kept it on top for the second straight week.
- Lions Gate's new revisit to the woods of its 1999 cult film The Blair Witch Project pulled just $9.7M despite opening in more than 3,000 theaters. It has a "36% Fresh" rating on review aggregator Rotten Tomatoes.
- Just behind at No. 3 was another disappointing showing in Bridget Jones's Baby (CMCSA -0.2%), with $8.2M, followed by Snowden (AMC -0.2%, RGC) with $8M.
- Sully, directed by Clint Eastwood and starring Tom Hanks, has hit $70.5M cumulative in its two weeks, and $93.9M total worldwide.
Tue, Aug. 30, 9:45 AM
Mon, Aug. 29, 11:42 AM
- The U.S. box office is up 5.5% to $7.9328B after the first eight months of the year, according to tallying from Box Office Mojo.
- Higher ticket prices account for some of the gain.
- Despite a solid summer in terms of movie theater attendance, studios may have left something on the table as they suffered from "sequelitis virus," according to an insider look from The Hollywood Reporter.
- SA contributor L&F Capital Management pointed out last week that Disney's box office dominance (Finding Dory, Captain America: Civil War, The Jungle Book) this year bodes well for Netflix (NFLX +0.7%) which has exclusive streaming rights for the movies geared at children.
- Related stocks: CKEC, AMC, CNK, RLD, IMAX, RDI, MCS, NCMI.
Wed, Aug. 24, 7:33 AM
- Exhibitor stocks have a new fan in boutique firm Loop Capital.
- Loop Capital starts coverage on Cinemark (NYSE:CNK) and AMC Entertainment (NYSE:AMC) with Buy ratings. Regal Entertainment (NYSE:RGC) is initiated with a Hold rating.
- The U.S. box office is up 4.8% over last year's level through August 22, according to tracking from Box Office Mojo.
Mon, Aug. 8, 3:19 PM
- AMC Entertainment (AMC -0.5%) announces it plans to accelerate the number of Dolby Cinema at AMC installations to 100 operational sites by the end of 2017 after receiving "rave reviews" from customers. The new pace is seven years ahead of the originally announced schedule.
- In addition, AMC and Dolby (NYSE:DLB) are collaborating on expansion plans to increase the amount of Dolby Cinema at AMC locations to beyond the initial 100.
- The Dolby Cinema at AMC format features premium audio and power recliners.
- Source: Press Release
Thu, Aug. 4, 1:05 PM
- Driehaus Capital Management says it will vote in favor of accepting AMC Entertainment's (AMC +2.7%) higher offer for Carmike Cinemas (NASDAQ:CKEC).
- "We are confident that Carmike's current standalone value is substantially in excess of the $33.06 per share offer. However, we are not as confident that it would be one year from today given management's focus on selling the company rather than growing it," reads a statement from the investment advisory firm.
- Driehaus beneficially holds over 2.430M shares of Carmike.
- Shares of CKEC are up 3.57% to $31.29.
Mon, Aug. 1, 7:00 AM
- AMC Entertainment (NYSE:AMC) reports admissions revenue decreased 9.8% to $481.2M in Q2.
- Attendance declined 7.1% to 49.996M, while the average ticket price dropped 2.8% to $9.63.
- Food and beverage revenue fell 2.8% to $243.5M.
- F&B revenue per patron rose 4.7% to $4.87.
- The company had 5,334 screen in operation at the end of Q2 compared to 5,031 screens a year ago.
Mon, Aug. 1, 6:47 AM
Sun, Jul. 31, 5:30 PM
Tue, Jul. 26, 4:41 PM
Mon, Jul. 25, 7:00 AM
- AMC Entertainment (NYSE:AMC) has agreed to buy Carmike Cinemas (NASDAQ:CKEC) in a cash and stock deal valued at $1.2B.
- Under terms of the transaction, for each outstanding share of CKEC common stock, Carmike’s stakeholders will have the option to receive either $33.06 in cash or 1.0819 shares of AMC's Class A common stock.
- The transaction is expected to produce annual cost synergies of approximately $35M.
Fri, Jul. 15, 2:45 AM
- AMC Entertainment (NYSE:AMC) is exploring a potential sweetened bid for Carmike Cinemas (NASDAQ:CKEC) that would top its previous $1.1B offer, Reuters reports.
- The smaller movie theater chain said on Thursday it will continue to have ongoing discussions with AMC after it delayed a July 15 shareholder vote on its previous $30 per share offer.
- It was the second time Carmike postponed the vote, which is now set for July 25.
Thu, Jul. 14, 6:50 PM
- After it postponed a special shareholder vote to July 15 at the end of June, Carmike Cinemas (NASDAQ:CKEC) is again postponing its special meeting in light of ongoing talks with AMC (NYSE:AMC) about a merger deal.
- The meeting had first been planned for June 30, but amid some contentious talk between the sides it was moved to tomorrow. That meeting is now set for July 25 at 9 a.m. Atlanta time.
- After Carmike postponed the last meeting, with observers saying some Carmike shareholders wanted too rich a price, AMC chief Adam Aron said the $1.1B deal was in jeopardy because of the "loose price talk."
Thu, Jul. 14, 9:34 AM
- Niantic Labs appears set to allow businesses to officially sponsor locations for in-game activities for Nintendo's (OTCPK:NTDOY, OTCPK:NTDOF) Pokémon, according to media reports.
- That's not news to followers of Reddit posts which dug deep into the Pokémon code to discover bits with "McDonald's" already in it (see code here)
- Though the monetization of the Pokémon phenomenon was widely expected, it also has deeper implications for retailers even beyond trying to scrap for foot traffic through establishing Lure modules, PokeStops, and Pokemon Gyms. Pokémon may come and go. The intersection of real-world shopping and augmented reality games is probably here to stay.
- Companies with an eye on augmented reality and location-based entertainment as it relates to increasing traffic run far and wide. Restaurants (QSR, SBUX, MCD, CMG, WEN, NDLS, PNRA, DNKN), store chains (GPS, AEO, ANF, TGT, ROST, DG, DLTR), and movie theaters (AMC, CKEC, IMAX, CNK, RGC) come to mind.
- Google (GOOGL, GOOG) is also keeping track of all the Pokémon developments as it served as an incubator for Niantic Labs up until the Alphabet creation. Recode says it's unclear what stake that Google still has in the software developer.
- Pokémon news on Seeking Alpha
Wed, Jul. 13, 2:02 PM
- Wedbush Securities analyst Michael Pachter updates investors on its view on theater stocks with the back half of the year starting to ramp up.
- IMAX (NYSE:IMAX): Q2 results are forecast to arrive in-line with consensus estimates. A number of growth drivers -- including virtual reality, global growth, higher film volume, and laser projectors -- keep Wedbush locked in with an Outperform rating and $40 price target.
- AMC Entertainment (NYSE:AMC): Shares are rated at Outperform with a $33 price target. Though AMC is expected to lose market share in Q2, concessions and film rental margins are seen improving.
- Carmike Cinemas (NASDAQ:CKEC): Held at Neutral with a $30 price target. The AMC acquisition is seen closing by the end of the year.
- Cinemark Holdings (NYSE:CNK): Also rated at Neutral, the view on Cinemark is that a strong domestic performance will be muted by F/X pressure abroad.
- Regal Entertainment Group (NYSE:RGC): The investment firm expects in-line performance from the chain at the box office.
- Previously: U.S. box office up 1.3% YTD after 4th of July weekend (July 8)
Tue, Jul. 12, 7:38 AM
- AMC Entertainment (NYSE:AMC) says it remain committed to a potential acquisition of Carmike Cinemas (NASDAQ:CKEC).
- AMC CEO Adam Aron adds insight to the company's mindset below.
- “AMC remains committed to moving forward with our plan to acquire Carmike Cinemas.
- “Some Carmike shareholders have an unrealistic view as to Carmike’s value to AMC, and their resulting price expectations are simply beyond what AMC believes is prudent to pay."
- “We intend to continue to work this week with Carmike to see if the AMC/Carmike transaction can be saved, but we again note that the economics of a transaction get marginal very quickly for AMC above the $30 deal price. Therefore, the likelihood of an AMC/Carmike transaction continues to be at considerable risk."
- Earlier today, AMC announced the acquisition of with Odeon & UCI.
- Previously: AMC Entertainment to acquire Odeon & UCI Cinemas Group (July 12)
- Source: Press Release