KANSAS CITY, Mo. — American Multi Cinema executives detailed for stockholders at their annual meeting Thursday the operating plan under which the 1,617-screen circuit has enjoyed its best fiscal performance since it went public in 1983.
Cost cutting has been the essence of the plan, according to Phil Singleton, senior VP and chief operating officer.
The plan was implemented three years ago when Singleton was promoted from VP and division manager to his present position. The strategy came to fruition in the past fiscal year, which ended March 31, by cutting costs by $ 15.9 million. That, along with a surge of good screen product, moved the company into the black with $ 1.3 million profit on revenues of $ 404.5 million.
Singleton said the company had sought to implement efficiencies and to position itself for a windfall following a glut of quality films. That also is coming to bear as the financial report for the first half of the current fiscal year shows earnings of $ 11.7 million compared to a year-ago loss of $ 467,000.
The recent transaction whereby AMC acquired control of 56 screens in which it previously had been partnered with TPI Enterprises also contributes to the favorable picture, Singleton said.
He presented statistics showing AMC averaged an attendance of 61,800 per square foot and revenues of $ 327,000 per square foot in the last fiscal year. He said these were the highest averages among the five largest theater circuits.
Edward Durwood, president and vice chairman, told the approximately 50 stockholders in attendance that the company expects a rush of good product for the holiday period and showed trailers of half a dozen upcoming releases. Stockholders were also treated to a screening of “Mrs. Doubtfire.”
Richard Walsh, VP and head of the central division, revealed the company is ready to begin construction on a 10-screen addition to the Ward Parkway 12 in Kansas City — where the meeting took place — within the month.
In the formal portion of the meeting, board members were re-elected, including Stanley Durwood, chairman and chief executive; Edward Durwood, president and vice chairman; Peter Brown, senior vice president, chief financial officer and treasurer; and Phil Singleton, senior vice president and chief operating officer, all by holders of Class B stock. Charles Egan and Paul Vardeman were elected by holders of common stock.