Revs rise 14% in second quarter
HOLLYWOOD — Exhib AMC Entertainment got back into the black in its fiscal second quarter, as revenue climbed 14% on strong demand for late-summer pics.
The Kansas City, Mo.-based company posted Monday a $19 million profit for the 13-week period ended Sept. 28, as revenue hit $377.1 million. AMC had reported a $5.5 million loss in the year-earlier period.
Positive results — which follow several quarters written in red — rep further notice AMC has emerged from the recent exhib-industry financial crisis as one of the healthier U.S. circuits. Company announced its quarterly results after the close of market trading, with AMC shares gaining 20¢ at $9.70 on the session.
“The company is in excellent shape, and business is healthy,” chairman-CEO Peter Brown said. “Thanks to strong product performance and the key initiatives we have implemented over the past two years, we are well positioned to continue successfully executing our strategic plan.”
Plan calls for growth through acquisitions, fueled by heavy financial backing from New York investment firm Apollo Management. At the same time, AMC has been closing many money-losing theaters after a period of aggressive megaplex construction.
Several other circuits also have been shutting unprofitable properties of late. But unlike many of its rivals, AMC didn’t have to file for bankruptcy reorganization to accelerate that process.