AMC Entertainment Holdings, Inc.

Hello, and welcome everyone to today's AMC Entertainment Holdings, Inc., fourth quarter and full year 2025 earnings webcast. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. To register to ask a question at any time, please press star 1 on your telephone keypad. Please note this call is being recorded. We are standing by should you need any assistance. It is now my pleasure to turn the meeting over to John Merriweather, Vice President, Capital Markets. Please go ahead.

Thank you, Stephanie. Good afternoon. I'd like to welcome everyone to AMC's fourth quarter and full year 2025 earnings webcast. With me this afternoon is Adam Aaron, our Chairman and CEO, and Sean Goodman, our Chief Financial Officer. Before I turn the webcast over to Adam, I'd like to remind everyone that some of the comments made by management during this webcast may contain forward-looking statements that are based on management's current expectations. Numerous risks, uncertainties, and other factors may cause actual results to differ materially from those that might be expressed today. Many of these risks and uncertainties are discussed in our most recent public filings, including our most recently filed 10-K and 10-Q. Several of the factors that will determine the company's future results are beyond the ability of the company to control or predict. In light of the uncertainties inherent in any forward-looking statements, listeners are cautioned against relying on these statements. The company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information or future events. On this webcast, we may reference non-GAAP financial measures such as adjusted EBITDA and constant currency, among others. For a full reconciliation of our non-GAAP measures to GAAP results, please see our earnings release posted in the investor relations section of our website. After our prepared remarks, there will be a question and answer session. This afternoon's webcast is being recorded, and a replay will be available in the investor relations section of our website at amctheaters.com later today. With that, I'll turn the call over to Adam.

Thank you, John. Hello, everybody. Before I begin today's call, I'd like to make a personal comment if I can. As you undoubtedly know, in early December, upon my return to AMC's home base in Kansas City, I put out a press release which advised you all that just before Thanksgiving, during a business trip to London, I suffered a minor stroke. Fortunately for me, I got immediate care at a superb London hospital run by the United Kingdom's National Health Service, and it was envisioned that I would have a speedy and full recovery. There was no cognitive problem at the time of the stroke, no issue with reasoning or logic or decision-making or memory, other than that for a day or so, I completely lost consciousness. my ability to speak. That was 14 weeks ago. You can hear for yourselves my voice today. My voice is back. I am delighted to report to you all that I am in fighting shape and fully ready to do battle. Speaking of which, let's talk about AMC. As we close the books on 2025, one thing is clear. This was a year of meaningful progress with AMC, both operationally and financially. While it is frustrating for us that the industry recovery unfolded at a much more measured pace than many, including ourselves, originally expected or hoped, Even so, the trajectory clearly remained positive, and AMC once again distinguished itself through consistent outperformance, exceeding the expectations of many who doubted us. Even in a softer industry environment for the fourth quarter, of 2025, where the North American box office declined by some 4.4%, AMC nonetheless demonstrated strength and resilience. For the fourth quarter, AMC generated approximately $1.29 billion in total revenue, $134 million of adjusted EBITDA, and notably $127 million of cash from operating activities. Along the way, especially, our domestic U.S. theaters once again delivered with 140 basis points of industry outperformance as we continued to capture increased market share. That's a testament to the strength of the marketing and loyalty platforms at AMC, the growing consumer preference for our industry-leading premium large format and extra large format offerings, and our commitment to deliver the very best in theatrical entertainment experiences. We believe that AMC has a powerful and commanding market lead. Our market share confirms that AMC represents more than one out of four of all the box office dollars generated in the United States. AMC is about 50% larger in size than the second or the third largest U.S. players, and everyone else in our highly fragmented industry has only a 1% or 2% market share or even less than that. Sean will discuss our full year financial results in more detail, but let me point you to this. In 2025, continuing an improvement trend that has been the case for several years now, We worked so hard at AMC to make our company more efficient. Globally, our attendance in the full year was down 2.1%, but our adjusted EBITDA was up 12.7%. That's a striking contrast. And there's so much operating leverage in our company. I cannot emphasize this point enough. The operating leverage in our company is meaningful. Approximately two-thirds of the incremental revenue dollar drops down to the adjusted EBITDA line. So if and when our revenues are growing, our adjusted EBITDA at AMC can grow and do so meaningfully. That's our expectation for 2026. No one's crystal ball is perfect, but most knowledgeable forecasters have the 2026 movie slate being considerably richer than that of the past three years, the past six years. And that is so vital because, candidly, the economic levels... that we experience in 2025 are simply not sufficient to carry the day. But we are optimistic and we are confident. Disney and Universal have what look to be fabulous movie slates. Warner Brothers says that it will be releasing more movies in 2026. Paramount says that it will be releasing more movies in 2026. Amazon MGM says that it will be releasing more movies in 2026. Theatrically, even Netflix has the capability to be releasing more movies. And smaller operations like A24 and Angel Studios, among others, also seem poised to embrace theatrical exhibition with ambition. With an increased count of widely released film titles coming out in 2026, it is our firm expectation at AMC that the industry box office will grow markedly in 2026. that AMC's market share will remain compelling and that the very real operating leverage inherent in our business will kick in in such a way that it can cause dramatic improvement in AMC's financial results. 2026 has only just begun. But encouragingly, January was off to a strong start with the North American box office up approximately 16% compared to last year. And growth in the European market has been even more significant. Across the 12-month year ahead, The film slate is shaping up to be one of the most compelling in recent memory, anchored by an extraordinary lineup of films that can only be described as a parade of juggernauts that are ideally suited to AMC's industry-leading network of highly productive, high-grossing theaters. Based on the strength of the upcoming release slate, we believe that the North American box office in 2026 could increase by approximately $500 million to as much as more than $1 billion greater than was the case in 2025. And as I just articulated, And as previously reported AMC financial results prove out to be true, with rising revenues, the growth in AMC's adjusted EBITDA can be substantial. I'm not going to take you through the list of 2026 movies title by title. That impressive cavalcade should play out during the year. Suffice it to say, though, that we expect to see a rising industry-wide box office in 2026, the biggest since 2019. And with the operating leverage of incremental revenues translating to incremental adjusted EBITDA, rising 2026 revenues bode well, to engender a material and positive impact on AMC. I do want to be clear, though, that we will likely need at least a strong 2027 film slate as well, which we do expect, by the way, for AMC to be cash flow positive in other years. But the considerable progress that we expect to make in this year, 2026, should fill us all with heightened confidence as to our future. Now let's turn from operating leverage to financial leverage and the improvements taking place within the AMC balance sheet. Strengthening the AMC balance sheet remains an extremely important strategic priority for this company. Since the end of 2020, AMC has reduced total debt by approximately $1.8 billion. including a $1.4 billion reduction in the principal balance of our outstanding debt and an additional $420 million repayment of COVID-related theater rental lease deferrals. During 2025, AMC continued to take capital markets actions to strengthen our balance sheet and prepare for the anticipated box office recovery that we think is coming this year. In July of 2025, we close a series of transformative transactions, including receiving more than $240 million in cash from new debt issuance and the equitization of $183 million in debt, with the potential to equitize even more, up to a total of approximately $337 million. These transactions address all, I repeat, all of our 2026 debt maturities, pushing them out to 2029. In addition, just last week, we launched yet another transaction to refinance another approximately $2.4 billion of our debt. If successful, that refinancing will extend the maturity of that debt from 2027 and 2029 all the way out to 2031. Simply put, At AMC, we continue to do exactly what we said we would do, take decisive action for AMC Entertainment to fortify our financial foundation, to bolster our tax reserves, and to enhance our flexibility. With that, I'll now turn the call over to Sean Goodman, our CFO. Sean?