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AMC Entertainment Holdings, Inc. Announces Record Second Quarter 2018 Results

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AMC Entertainment Holdings, Inc. (NYSE:AMC) ("AMC" or "the Company"),
today reported results for the second quarter ended June 30, 2018.

Highlights for the second quarter ended June 30, 2018, include the
following:

  • AMC set second quarter records for the three months ended June 30
    period for all revenue categories: admissions, food and beverage and
    other.
  • Total revenues increased 20.0% to $1,442.5 million compared to total
    revenues of $1,202.3 million for the three months ended June 30, 2017.
    Total revenues in the quarter included approximately $313.2 million of
    revenues from our international theatres as compared to $294.9 million
    for the three months ended June 30, 2017.
  • Admissions revenues increased 17.7% to $896.3 million compared to
    $761.4 million for the same period a year ago.
  • Food and beverage revenues increased 19.2% to $445.8 million, compared
    to $374.1 million for the three months ended June 30, 2017.
  • Earnings before income taxes increased $305.7 million to
    $19.6 million, compared to a loss of $286.1 million for the same
    quarter a year ago. Included in the loss before income taxes for the
    second quarter ended June 30, 2017 was a $202.6 million
    other-than-temporary pre-tax impairment loss related to AMC's
    investment in National CineMedia, LLC and National CineMedia, Inc.
    ("NCM").
  • Net earnings increased $198.7 million to net earnings of $22.2 million
    compared to net loss of $176.5 million for the three months ended
    June 30, 2017.
  • Diluted earnings per share ("diluted EPS") increased by $1.52 to $0.17
    per share compared to a net loss of $1.35 per share for the same
    period a year ago. Weighted average diluted shares outstanding in the
    second quarter of 2018 decreased approximately 2.3% compared to the
    second quarter last year as a result of the effect of 3.7 million
    shares repurchased since August 2017.
  • Total Adjusted EBITDA(1) increased 80.3% to $244.8 million
    compared to $135.8 million for the three months ended June 30, 2017.
    U.S. markets Adjusted EBITDA for the second quarter grew 93.2% to
    $222.2 compared to $115.0 million in the same period last year.
    International Adjusted EBITDA for the second quarter grew 8.7% to
    $22.6 million compared to $20.8 million a year ago.

(1) Reconciliations and definitions of non-GAAP financial measures are
provided in the financial schedules accompanying this press release.

Adam Aron, CEO and President of AMC said, "Obviously we are very pleased
by AMC's record results for the second quarter of 2018, especially given
the magnitude of the impressive 20.0% increase in total revenues and an
80.3% year over year growth in Adjusted EBITDA for AMC. Our success was
the result of our continued innovation in the design of our marketing
programs and the theatrical experience we offer our guests, as well as
an intense focus on the disciplined execution of our financial and
operational strategies. And we had the opportunity to do so against a
backdrop of a record setting industry movie slate that delivered the
highest quarterly domestic box office admissions revenues in history."

Aron added, "In the second quarter of 2018, once again AMC truly blazed
new trails on a wide array of fronts. Our AMC Stubs program crossed 15
million-member households, and now stands at 15.8 million. We launched
AMC Stubs A-List, which as of midnight last night had 181,790 paid
members. Our online advance ticketing activity in the U.S. is soaring,
up 131% year over year. AMC's food and beverage revenue per patron in
the U.S. was $5.29, the highest of any major U.S. operator. Looking
globally, AMC is the largest operator of premium large format screens in
the world, and admissions revenues at our IMAX, Dolby Cinema and all of
our premium large format screens grew in the quarter by 70.3% in the
U.S. and 17.5% in Europe. In addition, we continued to march ahead
renovating theatres with our signature recliner seats to very attractive
financial returns both in the U.S. and in Europe, as well as in opening
new theatres, with expectations to renovate 44 theatres and open 16 new
ones this year. Nowhere did a theatre opening ever capture so much press
attention as was the case at the new AMC Cinema in Riyadh. That April
cinema unveiling, done in partnership with the sovereign wealth fund of
Saudi Arabia, ended a 37-year ban on cinemas and is the first of what we
expect will be 50-100 AMC Cinemas to open in the years ahead in our 16th
country. We managed our expenses tightly, triggering a 570-basis point
improvement to theatre adjusted EBITDA margins globally, including a
700-basis point margin improvement in the United States. And finally, in
the quarter, we continued to buy back stock, pay an attractive dividend
and deleverage -- in part due to our earnings strength and in part
through AMC having successfully monetized some $500 million of
non-strategic assets over the past 11 months. Taking all this together,
AMC made enormous progress in the second quarter of 2018."

Aron concluded, "While we are proud that AMC set financial records and
outperformed the competition in Q2, it really shouldn't be a surprise
that AMC did well financially at a time when industry revenues were
robust. What may be the biggest news of all, though, is just how healthy
are both AMC and the movie business overall. This is a solid and steady
industry over the long haul. Theatre revenues have been growing over the
past two decades. Honing in on our U.S. business in April through June,
AMC's attendance per screen increased 21.1%, AMC's domestic admissions
revenues were up 22.8%, outpacing overall domestic industry box office
revenues which were up a still noteworthy 21.4%. Consider that movie
after movie has shattered attendance and revenue records this year, and
that all-time overall monthly domestic industry box office revenue
records were set in five different months out of the past ten. It is
finally time for the sky-is-falling-in cynics to admit that they
misinterpreted a brief slump in moviegoing last summer. Our industry is
flourishing and strong, and the prospects for AMC are enormously bright."

Highlights for the six months ended June 30, 2018, include the
following:

  • Total revenues increased 13.8% to $2,826.1 million compared to total
    revenues of $2,483.7 million for the six months ended June 30, 2017.
    Total revenues for 2018 included approximately $714.7 million of
    revenues from our international theatres as compared to $584.1 million
    in the six-month period a year ago.
  • Admissions revenues grew 12.2% to $1,771.3 million compared to
    $1,578.9 million for the six months ended June 30, 2017.
  • Food and beverage revenues increased 10.4% to $851.6 million, compared
    to $771.7 million for the six months ended June 30, 2017.
  • Earnings before income taxes increased $328.9 million to
    $42.0 million, compared to a loss of $286.9 million for the same
    quarter a year ago. Included in the loss before income taxes for the
    six months ended June 30, 2017 was a $204.5 million
    other-than-temporary pre-tax impairment loss related to AMC's
    investment in NCM.
  • Net earnings increased $208.0 million to $39.9 million compared to a
    net loss of $168.1 million for the six months ended June 30, 2017.
  • Diluted EPS increased by $1.64 to $0.31 per share compared to loss of
    $1.33 per share for the same period a year ago. Weighted average
    diluted shares outstanding for the six months ended June 30, 2018
    increased approximately 1.4% compared to the second quarter last year
    as a result of the additional public offering of 20.3 million shares
    in February 2017 offset by the repurchase of 3.7 million shares since
    August 2017.
  • Total Adjusted EBITDA(1) grew 35.1% to $522.7 million
    compared to $386.9 million for the six months ended June 30, 2017.
    U.S. markets Adjusted EBITDA for the six months grew 37.6% to $430.5
    compared to $312.9 million in the same period last year. International
    Adjusted EBITDA grew 24.6% to $92.2 million compared to $74.0 million
    in the same period a year ago. Much of the growth in international
    Adjusted EBITDA is due to the March 28, 2017 acquisition of Nordic
    Cinema Group Holding AB ("Nordic").

(1) (Reconciliations and definitions of non-GAAP financial measures are
provided in the financial schedules accompanying this press release.)

CFO Commentary

Commentary on the quarter by Craig Ramsey, AMC's Executive Vice
President and Chief Financial Officer, is available at http://investor.amctheatres.com.

Additional information detailing select unaudited pro forma financial
data for the quarter ended June 30, 2017 is included in the second
quarter 2018 CFO Commentary. The select unaudited pro forma data for the
six-month period ended June 30, 2017 combines the historical financial
data of AMC and Nordic, giving effect to the acquisition, financings and
theatre divestitures related to our acquisition of Carmike Cinemas, Inc.
("Carmike") as if they had been completed on January 1, 2017. The
unaudited proforma data for the three-month period ended June 30, 2017
gives effect to the Carmike theatre divestitures. The historical
consolidated financial information for Nordic has been adjusted to
comply with U.S. GAAP. The classification of certain items presented by
Nordic under IFRS has been modified in order to align with the
presentation used by AMC under U.S. GAAP. In addition to the U.S. GAAP
adjustments and the reclassifications, amounts have also been translated
to U.S. Dollars. The unaudited pro forma financial information is
provided for informational purposes only and is not necessarily
indicative of what our results of operations would actually have been
had the acquisitions occurred on the date indicated. Please refer to the
August 1, 2017 Form 8-K and 8-K/A on December 4, 2017 for additional
information on pro forma financial statement adjustments. The historical
results included in the CFO Commentary for the periods ended June 30,
2018 have been adjusted for constant currency. Constant currency
amounts, which are non-GAAP measurements, were calculated using the
average exchange rate for the corresponding pro forma period ended
June 30, 2017.

Update on Share Repurchase Program

On August 3, 2017, AMC announced that its Board of Directors authorized
the repurchase of up to $100 million of the Company's Class A common
stock over a two-year period.

As of August 1, 2018, the Company has repurchased approximately 56% of
the authorized $100 million, having purchased approximately 3.7 million
shares of AMC's Class A common stock for approximately $55.7 million,
representing an average share price of $15.07.

Dividends

On May 3, 2018, the Company declared a regular quarterly dividend of
$0.20 per share for the quarter ended March 31, 2018, payable on
June 25, 2018 to stockholders of record on June 11, 2018. The total
dividends paid in the second quarter of 2018 were approximately
$25.7 million.

On July 24, 2018, the Company declared a regular quarterly dividend of
$0.20 per share for the quarter ended June 30, 2018, payable on
September 24, 2018 to stockholders of record on September 10, 2018.

Conference Call / Webcast Information

The Company will host a conference call via webcast for investors and
other interested parties beginning at 7:30 a.m. CDT/8:30 a.m. EDT on
Wednesday, August 1, 2018. To listen to the conference call via the
internet, please visit the investor relations section of the AMC website
at www.investor.amctheatres.com
for a link to the webcast. Investors and interested parties should go to
the website at least 15 minutes prior to the call to register, and/or
download and install any necessary audio software.

Participants may also listen to the call by dialing (877) 407-3982, or
(201) 493-6780 for international participants. An archive of the webcast
will be available on the Company's website after the call for a limited
time.

About AMC Entertainment Holdings, Inc.

AMC is the largest movie exhibition company in the U.S., in Europe and
throughout the world with more than 1,000 theatres and 11,000 screens
across the globe. AMC has propelled innovation in the exhibition
industry by: deploying its signature power-recliner seats; delivering
enhanced food and beverage choices; generating greater guest engagement
through its loyalty program, web site and smartphone apps; offering
premium large format experiences and playing a wide variety of content
including the latest Hollywood releases and independent programming. AMC
operates among the most productive theatres in the United States' top
markets, having the #1 or #2 market share positions in 22 of the 25
largest metropolitan areas of the United States, including the top three
markets (NY, LA, Chicago). Through its Odeon subsidiary AMC operates in
14 European countries and is the #1 theatre chain in Estonia, Finland,
Italy, Latvia, Lithuania, Norway, Spain, Sweden and UK & Ireland. In a
joint partnership with The Development and Investment Entertainment
Company, a subsidiary of The Public Investment Fund of Saudi Arabia, AMC
also operates AMC Cinemas in the Kingdom of Saudi Arabia. For more
information, visit www.amctheatres.com.

Website Information

This press release, along with other news about AMC, is available at www.amctheatres.com.
We routinely post information that may be important to investors in the
Investor Relations section of our website, www.investor.amctheatres.com.
We use this website as a means of disclosing material, non-public
information and for complying with our disclosure obligations under
Regulation FD, and we encourage investors to consult that section of our
website regularly for important information about AMC. The information
contained on, or that may be accessed through, our website is not
incorporated by reference into, and is not a part of, this document.
Investors interested in automatically receiving news and information
when posted to our website can also visit www.investor.amctheatres.com
to sign up for email alerts.

Forward-Looking Statements

This press release includes "forward-looking statements" within the
meaning of the "safe harbor" provisions of the United States Private
Securities Litigation Reform Act of 1995. Forward-looking statements may
be identified by the use of words such as "forecast," "plan,"
"estimate," "will," "would," "project," "maintain," "intend," "expect,"
"anticipate," "prospect," "strategy," "future," "likely," "may,"
"should," "believe," "continue," "opportunity," "potential," and other
similar expressions that predict or indicate future events or trends or
that are not statements of historical matters. These forward-looking
statements are based on information available at the time the statements
are made and/or management's good faith belief as of that time with
respect to future events, and are subject to risks, trends,
uncertainties and other facts that could cause actual performance or
results to differ materially from those expressed in or suggested by the
forward-looking statements. These risks, trends, uncertainties and facts
include, but are not limited to, risks related to: motion picture
production and performance; AMC's lack of control over distributors of
films; intense competition in the geographic areas in which AMC
operates; increased use of alternative film delivery methods or other
forms of entertainment; shrinking exclusive theatrical release windows;
international economic, political, regulatory and other risks; risks and
uncertainties relating to AMC's significant indebtedness; AMC's ability
to execute cost cutting and revenue enhancement initiatives; box office
performance; limitations on the availability of capital; risks relating
to AMC's inability to achieve the expected benefits and performance from
its recent acquisitions; AMC's ability to refinance its indebtedness on
favorable terms; optimizing AMC's theatre circuit through construction
and the transformation of its existing theatres may be subject to delay
and unanticipated costs; failures, unavailability or security breaches
of AMC's information systems; risks relating to impairment losses,
including with respect to goodwill and other intangibles, and theatre
and other closure charges; AMC's ability to utilize net operating loss
carryforwards to reduce its future tax liability or valuation allowances
taken with respect to deferred tax assets; review by antitrust
authorities in connection with acquisition opportunities; risks relating
to unexpected costs or unknown liabilities relating to recently
completed acquisitions; risks relating to the incurrence of legal
liability including costs associated with recently filed class action
lawsuits; general political, social and economic conditions and risks,
trends, uncertainties and other factors discussed in the reports AMC has
filed with the SEC. Should one or more of these risks, trends,
uncertainties or facts materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those indicated
or anticipated by the forward-looking statements contained herein.
Accordingly, you are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date they are
made. Forward-looking statements should not be read as a guarantee of
future performance or results and will not necessarily be accurate
indications of the times at, or by, which such performance or results
will be achieved. For a detailed discussion of risks, trends and
uncertainties facing AMC, see the section entitled "Risk Factors" in
AMC's Annual Report on Form 10-K, filed with the SEC on March 1, 2018,
and the risks, trends and uncertainties identified in its other public
filings. AMC does not intend, and undertakes no duty, to update any
information contained herein to reflect future events or circumstances,
except as required by applicable law.

           
AMC Entertainment Holdings, Inc.
Consolidated Statements of Operations
For the Fiscal Periods Ended 6/30/18 and 6/30/17
 

(dollars in millions, except share and per share data)

(unaudited)

 
Three Months Ended Six Months Ended
June 30, June 30,
  2018     2017     2018     2017  
Revenues
Admissions $ 896.3 $ 761.4 $ 1,771.3 $ 1,578.9
Food and beverage 445.8 374.1 851.6 771.7
Other theatre   100.4     66.8     203.2     133.1  
Total revenues   1,442.5     1,202.3     2,826.1     2,483.7  
 
Operating costs and expenses
Film exhibition costs 471.4 379.8 897.9 799.4
Food and beverage costs 72.2 62.1 138.4 121.9
Operating expense, excluding depreciation and amortization below 424.5 389.2 836.4 745.6
Rent 199.7 199.8 389.4 390.2
General and administrative:
Merger, acquisition and transaction costs 4.3 11.5 9.0 51.7
Other, excluding depreciation and amortization below 43.0 46.1 87.2 80.4
Depreciation and amortization   137.7     133.3     268.2     258.6  
Operating costs and expenses   1,352.8     1,221.8     2,626.5     2,447.8  
 
Operating income (loss) 89.7 (19.5 ) 199.6 35.9
Other expense (income):
Other expense (income) 2.2 1.1 3.4 (1.5 )
Interest expense:
Corporate borrowings 62.2 59.6 123.9 110.9
Capital and financing lease obligations 9.8 10.3 20.1 21.1
Non-cash NCM exhibitor service agreement 10.4 20.9
Equity in (earnings) loss of non-consolidated entities (13.0 ) 195.0 (4.0 ) 197.3
Investment (income) expense   (1.5 )   0.6     (6.7 )   (5.0 )
Total other expense   70.1     266.6     157.6     322.8  
 
Earnings (loss) before income taxes 19.6 (286.1 ) 42.0 (286.9 )
Income tax provision (benefit)   (2.6 )   (109.6 )   2.1     (118.8 )
Net Earnings (loss) $ 22.2   $ (176.5 ) $ 39.9   $ (168.1 )
       
Diluted earnings (loss) per share $ 0.17   $ (1.35 ) $ 0.31   $ (1.33 )
 
Average shares outstanding diluted (in thousands)   128,105     131,166     128,042     126,290  
 
   
Consolidated Balance Sheet Data (at period end):

(dollars in millions)

(unaudited)

 
As of As of
June 30, December 31,
2018 2017
Cash and cash equivalents $ 316.4 $ 310.0
Corporate borrowings 4,217.8 4,235.3
Other long-term liabilities 963.0 903.8
Capital and financing lease obligations 605.8 651.4
Stockholders' equity 1,969.9 2,112.4
Total assets 9,531.8 9,805.9
 
           
Consolidated Other Data:

(in millions, except operating data)

(unaudited)

 
Three Months Ended Six Months Ended
June 30, June 30,
Consolidated   2018     2017     2018     2017  
Net cash provided by operating activities $ 131.7 $ (54.1 ) $ 297.1 $ 118.4
Capital expenditures $ (133.8 ) $ (156.7 ) $ (241.1 ) $ (318.0 )
Screen additions 17 23 40 42
Screen acquisitions 9 22 31 705
Screen dispositions 44 219 134 236
Construction openings (closures), net (65 ) 10 (118 ) 14
Average screens 10,684 10,776 10,737 10,606
Number of screens operated 10,988 11,083 10,988 11,083
Number of theatres operated 1,005 1,009 1,005 1,009
Screens per theatre 10.9 11.0 10.9 11.0
Attendance (in thousands) 91,245 81,636 182,177 174,990
 
       
Segment Other Data:

(in millions, except per patron amounts and operating data)

(unaudited)

 
Three Months Ended Six Months Ended
June 30, June 30,
    2018   2017   2018   2017
Other operating data:
Attendance (patrons, in thousands):
U.S. markets 69,751 57,949 131,607 124,772
International markets   21,494   23,687   50,570   50,218
Consolidated   91,245   81,636   182,177   174,990
 
Average ticket price (in dollars):
U.S. markets $ 9.95 $ 9.76 $ 9.87 $ 9.49
International markets $ 9.40 $ 8.28 $ 9.34 $ 7.85
Consolidated $ 9.82 $ 9.33 $ 9.72 $ 9.02
 
Food and beverage revenues per patron (in dollars):
U.S. markets $ 5.29 $ 5.19 $ 5.17 $ 5.02
International markets $ 3.56 $ 3.10 $ 3.38 $ 2.89
Consolidated $ 4.89 $ 4.58 $ 4.67 $ 4.41
 
Average Screen Count (month end average):
U.S. markets 8,010 8,059 8,053 8,111
International markets   2,674   2,717   2,684   2,495
Consolidated   10,684   10,776   10,737   10,606
 
       
Segment Information

(unaudited, in millions)

 
Three Months Ended Six Months Ended
June 30, June 30,
    2018   2017   2018   2017
Revenues
U.S. markets $ 1,129.3 $ 907.4 $ 2,111.4 $ 1,899.6
International markets   313.2   294.9   714.7   584.1
Consolidated $ 1,442.5 $ 1,202.3 $ 2,826.1 $ 2,483.7
 
Adjusted EBITDA
U.S. markets $ 222.2 $ 115.0 $ 430.5 $ 312.9
International markets   22.6   20.8   92.2   74.0
Consolidated $ 244.8 $ 135.8 $ 522.7 $ 386.9
 
Capital Expenditures
U.S. markets $ 101.0 $ 139.4 $ 172.0 $ 289.7
International markets   32.8   17.3   69.1   28.3
Consolidated $ 133.8 $ 156.7 $ 241.1 $ 318.0
 
           
Reconciliation of Adjusted EBITDA:

(dollars in millions)

(unaudited)

 
Three Months Ended Six Months Ended
June 30, June 30,
    2018     2017     2018     2017  
Net earnings (loss) $ 22.2 $ (176.5 ) $ 39.9 $ (168.1 )
Plus:
Income tax provision (benefit) (2.6 ) (109.6 ) 2.1 (118.8 )
Interest expense 82.4 69.9 164.9 132.0
Depreciation and amortization 137.7 133.3 268.2 258.6
Certain operating expenses (2) 5.7 3.5 9.4 8.8
Equity in (earnings) loss of non-consolidated entities (3) (13.0 ) 195.0 (4.0 ) 197.3
Cash distributions from non-consolidated entities (4) 3.5 2.2 27.8 26.6
Attributable EBITDA (5) (0.4 ) 1.0 1.6 1.0
Investment income (expense) (1.5 ) 0.6 (6.7 ) (5.0 )
Other expense (income) (6) 2.5 1.0 3.7 (1.2 )
General and administrative expense—unallocated:
Merger, acquisition and transaction costs (7) 4.3 11.5 9.0 51.7
Stock-based compensation expense (8)   4.0     3.9     6.8     4.0  
Adjusted EBITDA(1) $ 244.8   $ 135.8   $ 522.7   $ 386.9  
 
        1)   We present Adjusted EBITDA as a supplemental measure of our
performance. We define Adjusted EBITDA as net earnings plus (i)
income tax provision (benefit), (ii) interest expense and (iii)
depreciation and amortization, as further adjusted to eliminate the
impact of certain items that we do not consider indicative of our
ongoing operating performance and to include attributable EBITDA
from equity investments in theatre operations in international
markets and any cash distributions of earnings from other equity
method investees. These further adjustments are itemized above. You
are encouraged to evaluate these adjustments and the reasons we
consider them appropriate for supplemental analysis. In evaluating
Adjusted EBITDA, you should be aware that in the future we may incur
expenses that are the same as or similar to some of the adjustments
in this presentation. Our presentation of Adjusted EBITDA should not
be construed as an inference that our future results will be
unaffected by unusual or non-recurring items. Adjusted EBITDA is a
non-U.S. GAAP financial measure commonly used in our industry and
should not be construed as an alternative to net earnings (loss) as
an indicator of operating performance (as determined in accordance
with U.S. GAAP). Adjusted EBITDA may not be comparable to similarly
titled measures reported by other companies. We have included
Adjusted EBITDA because we believe it provides management and
investors with additional information to measure our performance and
estimate our value.
 

Adjusted EBITDA has important limitations as an analytical tool, and you
should not consider it in isolation, or as a substitute for analysis of
our results as reported under U.S. GAAP. For example,

Adjusted EBITDA:

  • does not reflect our capital expenditures, future requirements for
    capital expenditures or contractual commitments;
  • does not reflect changes in, or cash requirements for, our working
    capital needs;
  • does not reflect the significant interest expenses, or the cash
    requirements necessary to service interest or principal payments, on
    our debt;
  • excludes income tax payments that represent a reduction in cash
    available to us;
  • does not reflect any cash requirements for the assets being
    depreciated and amortized that may have to be replaced in the future;
    and
  • does not reflect the impact of divestitures that may be required in
    connection with recently completed acquisitions.
        2)   Amounts represent preopening expense related to temporarily closed
screens under renovation, theatre and other closure expense for the
permanent closure of screens including the related accretion of
interest, non-cash deferred digital equipment rent expense, and
disposition of assets and other non-operating gains or losses
included in operating expenses. The Company has excluded these items
as they are non-cash in nature, include components of interest cost
for the time value of money or are non-operating in nature.
 
3) Equity in (earnings) loss of non-consolidated entities includes a
lower of carrying value or fair value impairment loss of the
held-for sale portion of our investment in NCM of $16.0 million for
the six months ended June 30, 2018. The three and six months ended
June 30, 2017 included an other-than-temporary impairment loss of
$202.6 million and $204.5 million, respectively on our investment in
NCM. The impairment charges reflect recording our held-for-sale
units and other-than-temporary impaired shares at the publicly
quoted per share price on March 31, 2018 of $5.19 and June 30, 2017
of $7.42. Equity in loss of non-consolidated entities also includes
loss on the surrender (disposition) of a portion of the Company's
investment in NCM of $1.1 million during the three months ended
March 31, 2018.
 
4) Includes U.S. non-theatre distributions from equity method
investments and International non-theatre distributions from equity
method investments to the extent received. The Company believes
including cash distributions is an appropriate reflection of the
contribution of these investments to its operations.
 
5) Attributable EBITDA includes the EBITDA from minority equity
investments in theatre operators in certain international markets.
See below for a reconciliation of the Company's equity loss of
non-consolidated entities to attributable EBITDA. Because these
equity investments are in theatre operators in regions where the
Company holds a significant market share, the Company believes
attributable EBITDA is more indicative of the performance of these
equity investments and management uses this measure to monitor and
evaluate these equity investments. The Company also provides
services to these theatre operators including information technology
systems, certain on-screen advertising services and our gift card
and package ticket program. As these investments relate only to our
Nordic acquisition, the second quarter of 2017 represents the first
time the Company has made this adjustment and does not impact prior
historical presentations of Adjusted EBITDA.
 
       

Reconciliation of Attributable EBITDA (Unaudited)

 
Three Months Ended Six Months Ended
June 30, June 30,
    2018     2017   2018     2017
Equity in (earnings) loss of non-consolidated entities $ (13.0 ) $ 195.0 $ (4.0 ) $ 197.3
Less:
Equity in (earnings) loss of non-consolidated entities excluding
international theatre JV's
  (13.9 )   195.3   3.6     197.6
Equity in earnings (loss) of International theatre JV's (0.9 ) 0.3 0.4 0.3
Depreciation and amortization   0.5     0.7   1.2     0.7
Attributable EBITDA $ (0.4 ) $ 1.0 $ 1.6   $ 1.0
 
        6)   Other income for the three and six months ended June 30, 2018
includes financing related foreign currency transaction losses.
 
7) Merger, acquisition and transition costs are excluded as they are
non-operating in nature.
 
8) Non-cash or non-recurring expense included in General and
Administrative: Other.
 

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