Kansas City-based theater chain AMC Entertainment Inc. on Wednesday reported record revenues of $846 million for fiscal 1998, an increase of 13% over the previous year’s $749.6 million.
But after deducting a previously announced non-cash, after-tax charge of $27.7 million, or $1.50 per share, the company’s annual net loss was $24.5 million, or $1.59 per common share. That compares to net earnings of 75¢ per common share last year.
The charge, for impairment of long-lived assets, “relates primarily to the company’s older multiplexes and will result in reduced depreciation and amortization from the date of the charge,” according to a company statement.
Earnings for the year, which ended April 2, were impacted by startup costs associated with the opening of 608 screens and by declining performance of some older multiplexes that are facing competition from new megaplexes, the company said.
For the fourth quarter, AMC lost $3.7 million, or 25¢ per share, compared with a profit of $12.4 million (38¢) in the fiscal 1997 fourth quarter, excluding a non-cash accounting charge.
AMC has 2,439 screens in 228 theaters.