EXCLUSIVE: The Kansas City-based exhibition chain accounts for about 6% of Canada’s box office revenues — but I’m told that its eight theaters, with 184 screens, are a tough sell because they’re hemorrhaging cash. Cineplex Entertainment (with 66% of Canada’s box office) and Empire Theaters (a subsidiary of a supermarket chain that has 13%) are said to be kicking the tires on some of the properties, which collectively generated $70.3M in revenue in the year that ended in April 2010. But AMC’s huge multiplexes have expensive leases, and some are in competitive film zones where the stronger chains have an easier time landing the most popular new releases. AMC may find a bad deal for the venues better than the status quo. The company’s owners — several funds led by J.P. Morgan Partners and Apollo Management — are said to be desperate to recoup their investments.
In March they told the SEC that they planned to take AMC public, but the initial public offering has been on hold as investors became uneasy about the exhibition industry and the economy. That’s a problem: Moody’s Investor service said in July that AMC’s ability to manage its huge debt “is questionable and largely depends on market conditions for the IPO.” Also holding back are some Chinese exhibition companies including Orange Sky Golden Harvest that have taken a look at the Kansas City-based exhibition chain. AMC lost $10.2M in the quarter that ended in September on revenues of $683.4M. up 4.5% from the same period last year. The company managed to report a $60.1M profit in the September quarter last year because it collected $64.6M from a sale of shares in National CineMedia.


Stan Durwood, where are you when we need you?
Stan was a Great Showman – one of The Greatest. He was also a Harvard MBA and he loved to surrouned himself with MBA’s, few (if any) of them having a real love for film exhibition.
He never groomed Mr. or Mrs. or Miss “Right” to take his CEO Chair.
I like to think that Stan is now CEO of Retro AMC Theatres in Heaven – with around 500,000 screens – some of them being the size of phone booths!
Hope if works out better for the AMC Canadian theatres than it has for the former Kerasotes theatres that are smaller than 8 screens.
Are Canadian movie theaters known a EhMC?
You Yanks never get it that we Cannucks say “eh” because “A” is the first letter in the word “asshole,” as in: “Welcome to Canada, Eh? You must be American, eh?”
And you don’t get that it is spelled Canucks. Like the hockey team. You sure you are Canadian?
Yup from Michigan. Crossed the ambassador bridge many a time. Most canadians I know and I know quite a few, recognize a lighthearted joke. Lighten the fuck up.
The AMC theatre in montreal NEVER gets any of the popular new releases. It’s more of a place to go watch smaller films, hence why almost nobody goes. It’s not rare to go to a 7pm showing to a friday and have a whole theatre room for you and your buddies.
A great example of a US company crossing the border without doing their homework. They built the wrong type of theatres for the market.
The issue in Canada is not the wrong kind of theater, it is that in all the locations in which AMC operates, the market is overwhelmed by Cineplex (who enjoys a monopoly in most branches) who punishes distribs that book the AMCs. In the States, anti-trust legislation would have solved the problem, but in Canada, the regulators are dumb and blind.