(NYSE: $AMC) Entertainment has bounced back with resounding success, proving that the silver screen is far from obsolete.

The third quarter of 2023 has seen AMC, the world’s largest chain of movie theaters, achieve remarkable financial milestones that have defied market expectations.

AMC Chairman and CEO Adam Aron shared the exciting news, emphasizing the resilience of the company in the face of challenges, and its future ahead.

Merchandise sales expected to surpass $50M

The concept of merchandise introduced by retail shareholders has yielded impressive outcomes. This business model was nonexistent for AMC in 2021.

In 2022, the company generated approximately $10 million in merchandise sales. By the close of 2023, AMC anticipates this revenue stream to exceed $50 million.

As a result of specific shareholder suggestions that came in from our retail shareholders, we embraced the idea thoroughly and it has quietly become a pleasant success story.

Way to go shareholders, keep those good ideas coming in.

Adam Aaron – CEO

AMC Popcorn’s Expansion Gains Momentum

AMC’s exclusive six-month partnership with Walmart stores and Walmart.com has proven to be a resounding success, garnering praise from both Walmart and other retailers who recognize the undeniable appeal of AMC-branded products.

Building on this success, AMC Popcorn is set to make significant strides in the next two months, as it debuts in Kroger stores, along with their subsidiary brands under Kroger Co., including City Market, Foods Co, Fred Meyer, and more.

By Christmas, AMC popcorn will be available on the shelves of all Publix supermarkets. According to their official website, Publix ranks among the top 10 largest-volume supermarket chains in the United States, with a remarkable $54.5 billion in retail sales for the year 2022.

Additionally, CEO Adam Aaron has announced plans for AMC popcorn to be available on Amazon.com this Black Friday, further solidifying its presence in the market.

AMC Ventures into Gourmet Candy with AMC Cinema Sweets

In a strategic move, AMC is stepping into the world of gourmet candy, set to launch its new line of confections in November and December.

Dubbed “AMC Cinema Sweets,” this line’s inaugural offerings include a delectable selection of chocolate-covered pretzels, almonds, peanuts, and raisins.

AMC’s strategy here will be to offer top of the line quality treats, with some of the finest chocolate made, and lots of it. Even though ours will be gourmet lines, we will sell at the same price as mass market brands.

That’s something that AMC can do given the huge demand for candy products that exisits within a Movie theater environment. Without a requirement for us to run up massive distribution or marketing cost.

At least initially, AMC Sweets will be sold in AMC theaters

Adam Aaron, CEO

Record-Breaking Q3 Performance

The numbers tell an inspiring tale of growth and recovery, marking a significant turning point for the company. Here are the key highlights:

• Total revenue surged by a remarkable 45.2% compared to Q3 2022, reaching a staggering $1,405.9 million.
• Net earnings took a giant leap, soaring by $239.2 million to $12.3 million, compared to a net loss of $226.9 million in Q3 2022.
• Diluted earnings per share underwent a drastic transformation, improving by $2.28, now standing at $0.08 compared to $(2.20) in Q3 2022.
• Adjusted EBITDA showed impressive growth, increasing by $206.6 million to $193.7 million, compared to $(12.9) million in Q3 2022.
• Net cash provided by operating activities made a remarkable turnaround, improving by $289.5 million, reaching $65.9 million compared to Q3 2022.

What’s even more remarkable is that these results were achieved despite a 16% reduction in domestic box office attendance compared to 2019 levels.

The success was driven by an astonishing 30% increase in contribution per patron, highlighting AMC’s ability to enhance profitability through innovative marketing, pricing initiatives, and efficient cost management.

Q4 Poised for Monumental Succes

Looking ahead, AMC has exciting plans for the fourth quarter of 2023, and they involve some of the biggest names in the entertainment industry.

The distribution of “TAYLOR SWIFT: THE ERAS TOUR” back in October marks the company’s first foray into theatrical movie releases, and it has already been met with considerable success. Following this, “RENAISSANCE: A FILM BY BEYONCÉ” is set to captivate audiences in December.

AMC’s CEO Adam Aron expressed his gratitude to Taylor Swift and Beyoncé for their collaboration and remained optimistic about future partnerships with globally renowned musical artists in 2024 and beyond.

For what it’s worth, we did very well. We going to make a handsome profit from facilitating a stadium only concert tour (Eras Tour), converting it into film and into theaters quickly.

Adam Aaron, CEO

Cash and Liquidity

At the end of the third quarter in 2023, AMC was sitting on a comfortable pile of cash and cash equivalents, totaling $729.7 million, excluding restricted cash of $22.4 million.

AMC’s revival in Q3 2023 serves as a beacon of hope for the film industry as it continues to weather the impacts of the pandemic and navigate through the turbulence of labor strikes.

The company’s ability to adapt, innovate, and thrive in challenging times underscores its enduring commitment to the world of cinema.

In the grand scheme of things, AMC’s Q3 2023 results are not just numbers on a balance sheet; they represent a revival of the cinematic experience and a testament to the enduring power of storytelling on the silver screen.

As the credits roll on this impressive quarter, AMC is ready for the next blockbuster in its journey to recovery.