Kansas City, Mo.
Revenue: $1.34 billion
Loss: $11.5 million
No. 2 U.S. circuit AMC Entertainment’s latest fiscal year was again written in red, but the Kansas City, Mo.-based cinema circuit was able to lessen its latest annual loss without resorting to bankruptcy reorganization like so many of its exhibition rivals.
Also, AMC topper Peter Brown was able to make good on his vow to grow the now-3,600-screen circuit through selective acquisitions. In fiscal 2002 that meant gobbling up Northeast-dominant General Cinemas and New Orleans-based regional player Gulf States Theaters.
AMC secured three financings repping a total of $500 million in new capital — extremely important in the circuit’s continuing quest to convince investors that its biz fundamentals are superior to those found elsewhere in exhibition. Chief among them was a $250 million infusion by New York investment firm Apollo Management, which now holds a majority equity position in the company and a minority voting interest.
The company’s first quarterly results in the current fiscal year showed continued progress in reducing losses and raising revenue. However, a related disclosure of a $19 million charge for “executive compensation” raised a ruckus and reduced AMC’s stock price.