EX-99.2 3 a17-18486_1ex99d2.htm EX-99.2

Exhibit 99.2

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

The following unaudited pro forma condensed combined financial information of AMC Entertainment Holdings, Inc. (“AMC” or the “Company”) is presented to illustrate the estimated effects of (i) the acquisition of Odeon and UCI Cinemas Holdings Limited (“Odeon” or the “Odeon Acquisition”), the acquisition of Carmike Cinemas, Inc. (“Carmike or the “Carmike Acquisition”) and the acquisition of Nordic Cinema Group Holdings AB (“Nordic or the “Nordic Acquisition”); (ii) the incurrence of $595,000,000 aggregate principal amount of Senior Subordinated Notes due 2026 (the “Dollar Notes”) and £250,000,000 aggregate principal amount of Senior Subordinated Notes due 2024 (the “Sterling Notes”) and $500,000,000 aggregate principal amount of incremental term loans (the “New Term Loans due 2023”) used to fund the Odeon Acquisition; (iii) the issuance of 4,536,466 shares ($156,735,000) of the Company’s Class A Common Stock in a private placement in connection with the Odeon Acquisition and the issuance of 8,189,808 shares ($273,949,000) of the Company’s Class A Common Stock in connection with the Carmike Acquisition, (iv) the issuance of $475,000,000 aggregate principal amount of 6.125% Senior Subordinated Notes due 2027 and £250,000,000 aggregate principal amount of 6.375% Senior Subordinated Notes due 2024 used to fund the Nordic (clauses (ii), (iii) and (iv) collectively referred to as the “Financings”); (v) the issuance of 20,330,874 shares ($640,423,000 at an offering price of $31.50 per share of the Company’s Class A Common Stock to repay the $350,000,000 aggregate principal amount of Bridge Loans incurred to partially finance the Carmike Acquisition and for general and corporate purposes (the “2017 Equity Offering”) and (vi) the settlement the Company entered into with the United States Department of Justice, pursuant to which the Company agreed to divest theatres in 15 local markets where it has an overlap with Carmike (the “Theatre Divestitures”).

 

The pro forma financial information is based in part on certain assumptions regarding the foregoing transactions that we believe are factually supportable and expected to have a continuing impact on our consolidated results. The unaudited pro forma condensed combined statements of operations for the three months ended March 31, 2016, the three and six months ended June 30, 2016, the three and nine months ended September 30, 2016, the three months ended December 31, 2016, the year ended December 31, 2016 and the three months ended March 31, 2017, combine the historical consolidated statements of operations of the Company, Odeon, Carmike and Nordic, giving effect to the Odeon Acquisition, the Carmike Acquisition, the Nordic Acquisition, the Financings, the Theatre Divestitures and the 2017 Equity Offering as if they had been completed on January 1, 2016. The historical consolidated financial information for Odeon and Nordic have been adjusted to comply with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). The classification of certain items presented by Odeon under UK Generally Accepted Accounting Practice (“UK GAAP”) and by Nordic under International Financial Reporting Standards (“IFRS”) has been modified in order to align with the presentation used by the Company under U.S. GAAP.  In addition to the U.S. GAAP adjustments and the reclassifications, amounts for Odeon and Nordic have also been translated to U.S. dollars. The unaudited pro forma condensed combined financial statements should be read in conjunction with the accompanying notes to the unaudited pro forma condensed combined financial statements. In addition, the unaudited pro forma condensed combined financial information was based on, and should be read in conjunction with, the audited consolidated financial statements of the Company as of and for the year ended December 31, 2016, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, the unaudited consolidated financial statements of Carmike for the nine months ended September 30, 2016, which are contained in Carmike’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, and the unaudited condensed consolidated financial statements of Odeon prepared in accordance with UK GAAP as of and for the nine months ended September 30, 2016, which have been filed as an exhibit to the Company’s Current Report on Form 8-K dated as of  November 30, 2016.

 

The unaudited pro forma condensed combined financial information has been prepared by the Company, as the acquirer, using the acquisition method of accounting in accordance with U.S. GAAP. The acquisition method of accounting is dependent upon certain valuation and other studies that have yet to commence or progress to a stage where there is sufficient information for a definitive measurement. The assets and liabilities of Odeon, Carmike and Nordic have been measured based on various preliminary estimates using assumptions that the Company believes are reasonable based on information that is currently available. The preliminary purchase price allocations for Odeon,  Carmike and Nordic are subject to revision as a more detailed analysis is completed and additional information on the fair value of Odeon’s, Carmike’s and Nordic’s assets and liabilities becomes available. The final allocation of the purchase price, which will be based upon actual tangible and intangible assets acquired as well as

 


 

liabilities assumed, will be determined within one year from the completion of the Odeon Acquisition, Carmike Acquisition and Nordic Acquisition respectively, and could differ materially from the unaudited pro forma condensed combined financial information presented here. Any change in the fair value of the net assets of Odeon, Carmike and Nordic will change the amount of the purchase price allocable to goodwill and will also change any resultant depreciation and amortization or other similarly impacted income statement amounts. The pro forma adjustments are preliminary and have been made solely for the purpose of providing unaudited pro forma condensed combined financial information prepared in accordance with the rules and regulations of the Securities and Exchange Commission.

 

The unaudited pro forma condensed combined financial information does not purport to represent the actual results of operations that the Company, Odeon, Carmike and Nordic would have achieved had the companies been combined during the periods presented in the unaudited pro forma condensed combined financial statements and is not intended to project the future results of operations that the combined company may achieve after the Odeon Acquisition, Carmike Acquisition and Nordic Acquisition. The unaudited pro forma condensed combined financial information does not reflect any potential cost savings that may be realized as a result of the Odeon Acquisition, Carmike Acquisition and Nordic Acquisition and also does not reflect any restructuring or integration-related costs to achieve those potential cost savings. No historical transactions between Odeon, Carmike, Nordic and the Company during the periods presented in the unaudited pro forma condensed combined financial statements have been identified at this time.

 

The unaudited pro forma condensed combined financial information does not give effect to the settlement we entered into with the United States Department of Justice, pursuant to which we agreed to divest most of our holdings and relinquish all of our governance rights in NCM, our joint venture for cinema screen advertising, and (ii) agreed to transfer 24 theatres with a total of 384 screens to the network of Screenvision LLC, the cinema screen advertising business in which Carmike participates.

 

The Company previously filed unaudited pro forma condensed combined statements of operations in its 8-K/A on March 13, 2017.  The Company is furnishing the following pro forma condensed combined statements of operations for all reported quarterly periods in calendar 2016 and 2017 on both a consolidated basis and on a U.S. markets and International markets reporting segments basis and has updated Note 5 from the previously filed 8-K/A to include the pro forma impacts of the Nordic Acquisition, the Nordic Financing and the Theatre Divestitures for 2017.

 


 

Unaudited interim and year to date pro forma condensed combined statements of operations for 2016 and 2017 are as follows:

 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Odeon

 

Carmike

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Historical

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Pro Forma

 

AMC

 

 

 

March 31, 2016

 

March 31, 2016

 

March 31, 2016

 

March 31, 2016

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

766,017

 

$

297,309

 

$

206,188

 

$

105,466

 

(292

)(d)

$

1,358,034

 

 

 

 

 

 

 

 

 

 

 

(2,272

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(5,559

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(8,823

)(e)

 

 

Cost of operations

 

498,632

 

186,532

 

136,943

 

64,547

 

(3,609

)(e)

876,835

 

 

 

 

 

 

 

 

 

 

 

(6,210

)(e)

 

 

Rent

 

124,584

 

43,368

 

25,878

 

9,990

 

509

(d)

200,980

 

 

 

 

 

 

 

 

 

 

 

959

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,220

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

145

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(716

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,014

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(1,503

)(e)

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

4,604

 

448

 

3,752

 

—

 

(3,062

)(b)

1,645

 

 

 

 

 

 

 

 

 

 

 

(345

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(3,752

)(b)

 

 

Other

 

18,516

 

10,932

 

8,570

 

5,346

 

—

 

43,364

 

Depreciation and amortization

 

60,430

 

22,920

 

15,157

 

5,064

 

10,142

(d)

123,640

 

 

 

 

 

 

 

 

 

 

 

8,651

(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,353

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(706

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(371

)(e)

 

 

Impairment of long-lived assets

 

—

 

—

 

280

 

—

 

—

 

280

 

Operating costs and expenses

 

706,766

 

264,200

 

190,580

 

84,947

 

251

 

1,246,744

 

Operating income

 

59,251

 

33,109

 

15,608

 

20,519

 

(17,197

)

111,290

 

Other expense (income)

 

26

 

42,935

 

—

 

—

 

242

(d)

43,203

 

Interest expense

 

27,062

 

45,221

 

12,386

 

10,209

 

(36,312

)(a)

71,482

 

 

 

 

 

 

 

 

 

 

 

18,673

(a)

 

 

 

 

 

 

 

 

 

 

 

 

1,733

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(8,683

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

7,689

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(3,284

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(12,386

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,941

(d)

 

 

 

 

 

 

 

 

 

 

 

 

3,112

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(9,856

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

7,627

(d)

 

 

 

 

 

 

 

 

 

 

 

 

5,516

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(166

)(e)

 

 

Equity in (earnings) loss of non-consolidated entities

 

(4,264

)

84

 

(414

)

(1,872

)

—

 

(6,466

)

Investment (income) expense

 

(9,954

)

—

 

—

 

1,537

 

(1,968

)(d)

(10,385

)

Total other expense

 

12,870

 

88,240

 

11,972

 

9,874

 

(25,122

)

97,834

 

Earnings (loss) before income taxes

 

46,381

 

(55,131

)

3,636

 

10,645

 

7,925

 

13,456

 

Income tax provision (benefit)

 

18,090

 

611

 

1,411

 

2,579

 

(11,268

)(c)

8,721

 

 

 

 

 

 

 

 

 

 

 

(2,702

)(d)

 

 

Net earnings (loss)

 

$

28,291

 

$

(55,742

)

$

2,225

 

$

8,066

 

$

21,895

 

$

4,735

 

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 


 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Odeon

 

Carmike

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Historical

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Pro Forma

 

AMC

 

 

 

June 30, 2016

 

June 30, 2016

 

June 30, 2016

 

June 30, 2016

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

763,962

 

$

224,907

 

$

204,674

 

$

66,442

 

(292

)(d)

$

1,243,298

 

 

 

 

 

 

 

 

 

 

 

(1,400

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(5,845

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(9,150

)(e)

 

 

Cost of operations

 

497,066

 

154,429

 

140,260

 

48,858

 

(3,737

)(e)

830,122

 

 

 

 

 

 

 

 

 

 

 

(6,754

)(e)

 

 

Rent

 

122,819

 

39,860

 

26,876

 

9,645

 

5,025

(d)

200,653

 

 

 

 

 

 

 

 

 

 

 

959

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,220

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

147

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(737

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,147

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(1,574

)(e)

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

5,548

 

9,147

 

3,856

 

—

 

(5,548

)(b)

—

 

 

 

 

 

 

 

 

 

 

 

(9,147

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(3,856

)(b)

 

 

Other

 

20,634

 

13,325

 

7,565

 

4,217

 

(568

)(d)

45,173

 

Depreciation and amortization

 

62,291

 

23,085

 

15,311

 

5,426

 

10,453

(d)

126,294

 

 

 

 

 

 

 

 

 

 

 

8,497

(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,194

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(591

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(372

)(e)

 

 

Impairment of long-lived assets

 

—

 

158

 

1,980

 

—

 

—

 

2,138

 

Operating costs and expenses

 

708,358

 

240,004

 

195,848

 

68,146

 

(7,976

)

1,204,380

 

Operating income (loss)

 

55,604

 

(15,097

)

8,826

 

(1,704

)

(8,711

)

38,918

 

Other expense (income)

 

(110

)

31,564

 

—

 

—

 

1,373

(d)

32,827

 

Interest expense

 

27,035

 

44,948

 

12,382

 

8,511

 

(36,013

)(a)

71,000

 

 

 

 

 

 

 

 

 

 

 

18,673

(a)

 

 

 

 

 

 

 

 

 

 

 

 

1,733

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(8,683

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

7,689

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(3,241

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(12,382

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,941

(d)

 

 

 

 

 

 

 

 

 

 

 

 

3,112

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(8,697

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

7,627

(d)

 

 

 

 

 

 

 

 

 

 

 

 

5,530

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(165

)(e)

 

 

Equity in (earnings) loss of non-consolidated entities

 

(11,849

)

261

 

(1,101

)

(189

)

—

 

(12,878

)

Investment (income) expense

 

176

 

—

 

—

 

4,078

 

(3,659

)(d)

595

 

Total other expense

 

15,252

 

76,773

 

11,281

 

12,400

 

(24,162

)

91,544

 

Earnings (loss) before income taxes

 

40,352

 

(91,870

)

(2,455

)

(14,104

)

15,451

 

(52,626

)

Income tax provision (benefit)

 

16,385

 

(1,274

)

(857

)

(2,780

)

(10,147

)(c)

(1,344

)

 

 

 

 

 

 

 

 

 

 

(2,671

)(d)

 

 

Net earnings (loss)

 

$

23,967

 

$

(90,596

)

$

(1,598

)

$

(11,324

)

$

28,269

 

$

(51,282

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 


 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Odeon

 

Carmike

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Historical

 

 

 

 

 

 

 

Six Months Ended

 

Six Months Ended

 

Six Months Ended

 

Six Months Ended

 

Pro Forma

 

AMC

 

 

 

June 30, 2016

 

June 30, 2016

 

June 30, 2016

 

June 30, 2016

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,529,979

 

$

522,216

 

$

410,862

 

$

171,908

 

$

(584

)(d)

$

2,601,332

 

 

 

 

 

 

 

 

 

 

 

(3,672

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(11,404

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(17,973

)(e)

 

 

Cost of operations

 

995,698

 

340,961

 

277,203

 

113,405

 

(7,346

)(e)

1,706,957

 

 

 

 

 

 

 

 

 

 

 

(12,964

)(e)

 

 

Rent

 

247,403

 

83,228

 

52,754

 

19,635

 

5,534

(d)

401,633

 

 

 

 

 

 

 

 

 

 

 

1,918

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(2,440

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

292

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,453

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(2,161

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(3,077

)(e)

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

10,152

 

9,595

 

7,608

 

—

 

(8,610

)(b)

1,645

 

 

 

 

 

 

 

 

 

 

 

(9,492

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(7,608

)(b)

 

 

Other

 

39,150

 

24,257

 

16,135

 

9,563

 

(568

)(d)

88,537

 

Depreciation and amortization

 

122,721

 

46,005

 

30,468

 

10,490

 

20,595

(d)

249,934

 

 

 

 

 

 

 

 

 

 

 

17,148

(d)

 

 

 

 

 

 

 

 

 

 

 

 

4,547

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,297

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(743

)(e)

 

 

Impairment of long-lived assets

 

—

 

158

 

2,260

 

—

 

—

 

2,418

 

Operating costs and expenses

 

1,415,124

 

504,204

 

386,428

 

153,093

 

(7,725

)

2,451,124

 

Operating income

 

114,855

 

18,012

 

24,434

 

18,815

 

(25,908

)

150,208

 

Other expense (income)

 

(84

)

74,499

 

—

 

—

 

1,615

(d)

76,030

 

Interest expense

 

54,097

 

90,169

 

24,768

 

18,720

 

(72,325

)(a)

142,482

 

 

 

 

 

 

 

 

 

 

 

37,346

(a)

 

 

 

 

 

 

 

 

 

 

 

 

3,466

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(17,366

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

15,378

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(6,525

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(24,768

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

5,882

(d)

 

 

 

 

 

 

 

 

 

 

 

 

6,224

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(18,553

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

15,254

(d)

 

 

 

 

 

 

 

 

 

 

 

 

11,046

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(331

)(e)

 

 

Equity in (earnings) loss of non-consolidated entities

 

(16,113

)

345

 

(1,515

)

(2,061

)

—

 

(19,344

)

Investment (income) expense

 

(9,778

)

—

 

—

 

5,615

 

(5,627

)(d)

(9,790

)

Total other expense

 

28,122

 

165,013

 

23,253

 

22,274

 

(49,284

)

189,378

 

Earnings (loss) before income taxes

 

86,733

 

(147,001

)

1,181

 

(3,459

)

23,376

 

(39,170

)

Income tax provision (benefit)

 

34,475

 

(663

)

554

 

(201

)

(21,415

)(c)

7,377

 

 

 

 

 

 

 

 

 

 

 

(5,373

)(d)

 

 

Net earnings (loss)

 

$

52,258

 

$

(146,338

)

$

627

 

$

(3,258

)

$

50,164

 

$

(46,547

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 


 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Odeon

 

Carmike

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Historical

 

 

 

 

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

Pro Forma

 

AMC

 

 

 

September 30, 2016

 

September 30, 2016

 

September 30, 2016

 

September 30, 2016

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

779,771

 

$

251,461

 

$

209,730

 

$

84,002

 

(292

)(d)

$

1,307,366

 

 

 

 

 

 

 

 

 

 

 

(2,058

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(6,054

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(9,194

)(e)

 

 

Cost of operations

 

504,572

 

173,002

 

146,542

 

53,153

 

(3,767

)(e)

866,765

 

 

 

 

 

 

 

 

 

 

 

(6,737

)(e)

 

 

Rent

 

121,904

 

42,241

 

26,627

 

9,917

 

2,473

(d)

199,628

 

 

 

 

 

 

 

 

 

 

 

959

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,220

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

142

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(680

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,145

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(1,590

)(e)

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

4,961

 

205

 

6,845

 

—

 

(4,961

)(b)

71

 

 

 

 

 

 

 

 

 

 

 

(134

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(6,845

)(b)

 

 

Other

 

19,785

 

10,917

 

6,134

 

4,880

 

—

 

41,716

 

Depreciation and amortization

 

63,025

 

24,638

 

15,126

 

5,269

 

7,672

(d)

125,541

 

 

 

 

 

 

 

 

 

 

 

8,682

(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,089

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(587

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(373

)(e)

 

 

Impairment of long-lived assets

 

—

 

144

 

409

 

(4

)

—

 

549

 

Operating costs and expenses

 

714,247

 

251,147

 

201,683

 

73,215

 

(6,022

)

1,234,270

 

Operating income

 

65,524

 

314

 

8,047

 

10,787

 

(11,576

)

73,096

 

Other expense (income)

 

79

 

24,526

 

—

 

—

 

740

(d)

25,345

 

Interest expense

 

26,778

 

41,388

 

12,363

 

7,910

 

(34,549

)(a)

70,137

 

 

 

 

 

 

 

 

 

 

 

18,673

(a)

 

 

 

 

 

 

 

 

 

 

 

 

1,733

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(8,683

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

7,689

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(1,491

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(12,363

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,941

(d)

 

 

 

 

 

 

 

 

 

 

 

 

3,112

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(7,888

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

7,627

(d)

 

 

 

 

 

 

 

 

 

 

 

 

5,060

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(163

)(e)

 

 

Equity in (earnings) loss of non-consolidated entities

 

(12,030

)

(170

)

(1,843

)

(1,503

)

—

 

(15,546

)

Investment (income) expense

 

176

 

—

 

—

 

4,975

 

(4,538

)(d)

613

 

Total other expense

 

15,003

 

65,744

 

10,520

 

11,382

 

(22,100

)

80,549

 

Earnings (loss) before income taxes

 

50,521

 

(65,430

)

(2,473

)

(595

)

10,524

 

(7,453

)

Income tax provision (benefit)

 

20,085

 

3,114

 

(1,054

)

175

 

(9,197

)(c)

10,289

 

 

 

 

 

 

 

 

 

 

 

(2,834

)(d)

 

 

Net earnings (loss)

 

$

30,436

 

$

(68,544

)

$

(1,419

)

$

(770

)

$

22,555

 

$

(17,742

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 


 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

NINE MONTHS ENDED SEPTEMBER 30, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Odeon

 

Carmike

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Historical

 

 

 

 

 

 

 

Nine Months Ended

 

Nine Months Ended

 

Nine Months Ended

 

Nine Months Ended

 

Pro Forma

 

AMC

 

 

 

September 30, 2016

 

September 30, 2016

 

September 30, 2016

 

September 30, 2016

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,309,750

 

$

773,677

 

$

620,592

 

$

255,910

 

$

(876

)(d)

$

3,908,698

 

 

 

 

 

 

 

 

 

 

 

(5,730

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(17,458

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(27,167

)(e)

 

 

Cost of operations

 

1,500,270

 

513,963

 

423,745

 

166,558

 

(11,113

)(e)

2,573,722

 

 

 

 

 

 

 

 

 

 

 

(19,701

)(e)

 

 

Rent

 

369,307

 

125,469

 

79,381

 

29,552

 

8,007

(d)

601,261

 

 

 

 

 

 

 

 

 

 

 

2,877

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(3,660

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

434

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(2,133

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(3,306

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(4,667

)(e)

 

 

Merger, acquisition and transaction costs

 

15,113

 

9,800

 

14,453

 

—

 

(13,571

)(b)

1,716

 

 

 

 

 

 

 

 

 

 

 

(9,626

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(14,453

)(b)

 

 

Other

 

58,935

 

35,174

 

22,269

 

14,443

 

(568

)(d)

130,253

 

Depreciation and amortization

 

185,746

 

70,643

 

45,594

 

15,759

 

28,267

(d)

375,475

 

 

 

 

 

 

 

 

 

 

 

25,830

(d)

 

 

 

 

 

 

 

 

 

 

 

 

6,636

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,884

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(1,116

)(e)

 

 

Impairment of long-lived assets

 

—

 

302

 

2,669

 

(4

)

—

 

2,967

 

Operating costs and expenses

 

2,129,371

 

755,351

 

588,111

 

226,308

 

(13,747

)

3,685,394

 

Operating income

 

180,379

 

18,326

 

32,481

 

29,602

 

(37,484

)

223,304

 

Other expense (income)

 

(5

)

99,025

 

—

 

—

 

2,355

(d)

101,375

 

Interest expense

 

80,875

 

131,557

 

37,131

 

26,630

 

(106,874

)(a)

212,619

 

 

 

 

 

 

 

 

 

 

 

56,019

(a)

 

 

 

 

 

 

 

 

 

 

 

 

5,199

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(26,049

)(a)

 

 

 

 

 

 

 

 

 

 

 

 

23,067

(a)

 

 

 

 

 

 

 

 

 

 

 

 

(8,016

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(37,131

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

8,823

(d)

 

 

 

 

 

 

 

 

 

 

 

 

9,336

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(26,441

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

22,881

(d)

 

 

 

 

 

 

 

 

 

 

 

 

16,106

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(494

)(e)

 

 

Equity in (earnings) loss of non-consolidated entities

 

(28,143

)

175

 

(3,358

)

(3,564

)

—

 

(34,890

)

Investment (income) expense

 

(9,602

)

—

 

—

 

10,590

 

(10,165

)(d)

(9,177

)

Total other expense

 

43,125

 

230,757

 

33,773

 

33,656

 

(71,384

)

269,927

 

Earnings (loss) before income taxes

 

137,254

 

(212,431

)

(1,292

)

(4,054

)

33,900

 

(46,623

)

Income tax provision (benefit)

 

54,560

 

2,451

 

(500

)

(26

)

(30,612

)(c)

17,666

 

 

 

 

 

 

 

 

 

 

 

(8,207

)(d)

 

 

Net earnings (loss)

 

$

82,694

 

$

(214,882

)

$

(792

)

$

(4,028

)

$

72,719

 

$

(64,289

)

 

See Notes to Unaudited Pro Forma Condensed Combined Financial Statements

 


 

AMC ENTERTAINMENT HOLDINGS, INC.

UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS

THREE MONTHS ENDED DECEMBER 31, 2016

(dollars in thousands, except per share data)

 

 

 

AMC

 

Odeon

 

Carmike

 

Nordic

 

 

 

 

 

 

 

Historical

 

Historical

 

Historical

 

Historical

 

 

 

 

 

 

 

Three Months Ended

 

Two Months Ended

 

81 days Ended

 

Three Months Ended

 

Pro Forma

 

AMC

 

 

 

December 31, 2016

 

November 30, 2016

 

December 20, 2016

 

December 31, 2016

 

Adjustments

 

Pro Forma

 

 

 

 

 

 

 

 

 

 

 

Note (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

926,096

 

$

188,242

 

$

149,668

 

$

104,621

 

(291

)(d)

$

1,347,752

 

 

 

 

 

 

 

 

 

 

 

(5,979

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(6,125

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(8,480

)(e)

 

 

Cost of operations

 

604,854

 

111,410

 

108,647

 

65,453

 

(3,809

)(e)

882,126

 

 

 

 

 

 

 

 

 

 

 

(4,429

)(e)

 

 

Rent

 

136,156

 

29,706

 

22,308

 

9,734

 

1,094

(d)

195,031

 

 

 

 

 

 

 

 

 

 

 

958

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,220

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

116

(d)

 

 

 

 

 

 

 

 

 

 

 

 

(647

)(d)

 

 

 

 

 

 

 

 

 

 

 

 

(1,145

)(e)

 

 

 

 

 

 

 

 

 

 

 

 

(2,029

)(e)

 

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger, acquisition and transaction costs

 

32,782

 

4,345

 

35,515

 

96

 

(32,782

)(b)

—

 

 

 

 

 

 

 

 

 

 

 

(4,345

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(35,515

)(b)

 

 

 

 

 

 

 

 

 

 

 

 

(96

)(b)

 

 

Other

 

31,784

 

8,009

 

11,132

 

4,416

 

(576

)(d)

54,765

 

Depreciation and amortization

 

82,497

 

13,678

 

13,003

 

4,287

 

6,768

(d)

129,534

 

 

 

 

 

 

 

 

 

 

 

7,631

(d)

 

 

 

 

 

 

 

 

 

 

 

 

2,652

(d)