The Kansas City-based exhibition company reported a net loss of $ 1.3 million (8 cents a share) for the fourth quarter ended April 1, compared with a net loss of $ 396,000 (4 cents) a year earlier.
Revenue for the company dropped 15% to $ 98.3 million from $ 116.1 million in 1992. AMC was impacted by the sluggish spring box office, which generally left exhibitors devoid of strong drawing cards beyond Columbia Pictures’ hit “Groundhog Day.”
AMC senior veepee and chief operating officer Philip M. Singleton said in a statement the company expects a strong slate of summer 1993 product to propel the company toward better results in fiscal 1994.
For the year ended April 1, AMC’s revenues dipped 0.6% to $ 404.5 million from the $ 407 million posted a year earlier. Net income was $ 1.3 million (6 cents) compared with a loss of $ 5.5 million (38 cents) a year earlier.
The company trumpeted a 203% surge in operating income from $ 8.8 million in fiscal 1992 to $ 26.7 million in fiscal 1993 as one of the most positive developments in the year.
The 1,617-screen circuit shaved 4.6% off its cost of operations during the fiscal year ended April 1, which allows the company “to weather periods of weak film product” and achieve “substantial operating leverage in times when films are good,” according to Singleton.
Traditionally near the top in customer service and presentation, AMC has decreased operating expenses through tighter scheduling of labor, decreases in staff through employee attrition, and penny-pinching computerized heating and cooling controls for its theaters.
Full-year results come as AMC battles against a pair of lawsuits filed in Delaware court alleging that officers and directors of the company have grossly mismanaged the theater circuit.
Both lawsuits name AMC founder, director and chief executive officer Stanley H. Durwood, president and director Edward D. Durwood and outside directors Charles J. Egan Jr. and Paul Vardeman as responsible parties.