What changed in this filing

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Item 1. Financial Statements

2025-05-07 compared with 2024-11-06 · 318 added, 602 removed, 569 unchanged (62% of the section changed)

3 unchanged sentences

Three Months Ended

Nine Months Ended

(In millions, except share and per share amounts)

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

March 31, 2025

March 31, 2024

Food and beverage

10 unchanged sentences

Operating costs and expenses

Operating income (loss)

Operating loss

Other expense, net:

5 unchanged sentences

Total other expense, net

Earnings (loss) before income taxes

Income tax provision (benefit)

Net earnings (loss)

Net earnings (loss) per share:

Average shares outstanding:

Basic (in thousands)

Diluted (in thousands)

Loss before income taxes

Income tax provision

Net loss per share:

Basic and diluted

Weighted average shares outstanding:

Basic and diluted (in thousands)

See Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

Three Months Ended

Nine Months Ended

(In millions)

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

Net earnings (loss)

March 31, 2025

March 31, 2024

Other comprehensive income (loss):

1 unchanged sentence

Pension adjustments:

Net loss (gain) arising during the period

Net gain arising during the period

Other comprehensive income (loss)

Total comprehensive income (loss)

Total comprehensive loss

See Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

(In millions, except share data)

September 30, 2024

March 31, 2025

December 31, 2024

8 unchanged sentences

Intangible assets, net

Deferred tax asset, net

Other long-term assets

19 unchanged sentences

Preferred stock, $ .01 par value per share, 50,000,000 shares authorized;

no shares issued and outstanding as of September 30, 2024, and December 31, 2023

no shares issued and outstanding as of March 31, 2025, and December 31, 2024

Class A common stock ($ .01 par value, 550,000,000 shares authorized;

364,935,746 shares issued and outstanding as of September 30, 2024;

433,143,561 shares issued and outstanding as of March 31, 2025;

550,000,000 authorized;

8 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended

Three Months Ended

(In millions)

September 30, 2024

September 30, 2023

March 31, 2025

March 31, 2024

Cash flows from operating activities:

4 unchanged sentences

Deferred income taxes

Unrealized loss on investments in Hycroft

Amortization of net premium on corporate borrowings to interest expense

Unrealized loss (gain) on investments in Hycroft

Amortization of net discount (premium) on corporate borrowings to interest expense

Amortization of deferred financing costs to interest expense

PIK interest expense

Non-cash portion of stock-based compensation

Gain on disposition of Saudi Cinema Company

Equity in earnings from non-consolidated entities, net of distributions

Landlord contributions

Lease incentives

Deferred rent

Net periodic benefit cost

Non-cash shareholder litigation expense

Change in assets and liabilities:

4 unchanged sentences

Capital expenditures

Acquisition of theatre assets

Proceeds from disposition of Saudi Cinema Company

Proceeds from disposition of long-term assets

Net cash used in investing activities

Cash flows from financing activities:

Repurchase of Senior Subordinated Notes due 2025

Repurchase of Senior Subordinated Notes due 2026

Repurchase of Second Lien Notes due 2026

Net proceeds (disbursements) from equity issuances

Scheduled principal payments under Term Loan borrowings

Principal payments under Term Loan due 2026

Proceeds from issuance of Term Loan due 2029

Net proceeds from equity issuances

Principal payments under finance lease obligations

Cash used to pay for deferred financing costs

Debt extinguishment costs

Repurchase of Senior Subordinated Notes due 2025

Cash used to pay deferred financing costs

Taxes paid for restricted unit withholdings

Net cash provided by financing activities

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash and cash equivalents and restricted cash

Net increase (decrease) in cash and cash equivalents and restricted cash

Net decrease in cash and cash equivalents and restricted cash

Cash and cash equivalents and restricted cash at beginning of period

2 unchanged sentences

Cash paid during the period for:

Income taxes (received) paid, net

Income taxes paid, net

Schedule of non-cash activities:

1 unchanged sentence

Other third-party equity issuance costs payable

Deferred financing costs payable

Extinguishment of Second Lien Notes due 2026 in exchange for share issuance

Extinguishment of the 2025 Notes in exchange for share issuance (1)

Extinguishment of the 2026 Notes in exchange for share issuance (1)

Extinguishment of Second Lien Notes due 2026 in exchange for Term Loans due 2029 (1)

Extinguishment of principal amount of the Second Lien Notes in exchange for Term Loan due 2029 (1)

Extinguishment of principal amount of the Second Lien Notes in exchange for Exchangeable Notes due 2030 (1)

(1) See Note 1—Basis of Presentation and Note 6—Corporate Borrowings and Finance Lease Liabilities for further information on debt extinguishments and the Refinancing Transactions.

See Notes to Condensed Consolidated Financial Statements.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

March 31, 2025

NOTE 1—BASIS OF PRESENTATION

1 unchanged sentence

(“Holdings”), through its direct and indirect subsidiaries, including American Multi-Cinema, Inc.

and its subsidiaries, (collectively with Holdings, unless the context otherwise requires, the “Company” or “AMC”), is principally involved in the theatrical exhibition business and owns, operates, or has interests in theatres located in the United States and Europe.

(“Multi-Cinema”) and its subsidiaries, (collectively with Holdings, unless the context otherwise requires, the “Company” or “AMC”), is principally involved in the theatrical exhibition business and owns, operates, or has interests in theatres located in the United States and Europe.

The condensed consolidated financial statements include the accounts of Holdings and all subsidiaries and should be read in conjunction with the Company’s Annual Report on Form 10–K for the year ended December 31, 2024.

5 unchanged sentences

In the opinion of management, these interim financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the Company’s financial position and results of operations.

Due to the seasonal nature of the Company’s business, results for the nine months ended September 30, 2024, are not necessarily indicative of the results to be expected for the year ending December 31, 2024.

Due to the seasonal nature of the Company’s business, results for the three months ended March 31, 2025, are not necessarily indicative of the results to be expected for the year ending December 31, 2025.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

2 unchanged sentences

The Company’s cash burn rates are not sustainable long-term.

In order to achieve sustainable net positive cash flows provided by operating activities and long-term profitability, the Company believes that revenues will need to increase to levels at least in line with pre-COVID-19 revenues.

North American box office grosses were down approximately 25 % for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2019.

Until such time as the Company is able to achieve sustainable net positive cash flows provided by operating activities, it is difficult to estimate the Company’s future cash burn rates and liquidity requirements.

In order to achieve sustainable net positive cash flows from operating activities and long-term profitability, the Company believes that revenues will need to increase to levels at least in line with pre-COVID-19 revenues.

North American box office grosses were down approximately 40 % for the three months ended March 31, 2025, compared to the three months ended March 31, 2019.

Until such time as the Company is able to achieve sustainable net positive cash flows from operating activities, it is difficult to estimate the Company’s future cash burn rates and liquidity requirements.

Depending on the Company’s assumptions regarding the timing and ability to achieve increased levels of revenue, the estimates of amounts of required liquidity vary significantly.

There can be no assurance that the revenues, attendance levels, and other assumptions used to estimate the Company’s liquidity requirements and future cash burn rates will be correct, and the ability to be predictive is uncertain due to limited ability to predict studio film release dates, the overall production and theatrical release levels, and success of individual titles.

Additionally, the effects of labor stoppages that occurred during 2023 had a negative impact in 2024 on the film slate for exhibition, the Company’s liquidity and cash burn rates.

Further, there can be no assurances that the Company will be successful in generating the additional liquidity necessary to meet the Company’s obligations beyond twelve months from the issuance of these financial statements on terms acceptable to the Company or at all.

1 unchanged sentence

Such repurchases or exchanges, if any, will be upon such terms and at such prices as it may determine, and will depend on prevailing market conditions, its liquidity requirements, contractual restrictions and other factors.

amounts involved may be material and to the extent equity is used, dilutive.

See Note 6—Corporate Borrowings and Finance Lease Liabilities for a summary of debt transactions that occurred during the nine months ended September 30, 2024 and September 30, 2023, respectively.

See Note 13—Subsequent Events for further information about various debt exchanges that occurred subsequent to September 30, 2024.

Additionally, the Company has bolstered its liquidity through at-the-market offerings of its Class A Common Stock (“Common Stock”), see Note 7—Stockholders’ Deficit for further information on these offerings.

As of April 19, 2024, and in anticipation of the maturity of the Senior Secured Revolving Credit Facility, the Company voluntarily terminated the commitments under the Senior Secured Revolving Credit Facility in full and paid off any remaining obligations with respect to the Senior Secured Revolving Credit Facility.

The financial covenants and related covenant suspension conditions are no longer in effect pursuant to the terms of the Credit Agreement dated as of April 30, 2013 (as amended, restated, amended and restated, supplemented or otherwise modified).

The Company currently does not expect to replace the Senior Secured Revolving Credit Facility.

The Company has entered into a new letter of credit facility in order to continue to provide letters of credit in the ordinary course of business following the termination of the Senior Secured Revolving Credit Facility.

The amounts involved may be material and to the extent equity is used, dilutive.

See Note 6—Corporate Borrowings and

Finance Lease Liabilities for a summary of debt transactions that occurred during the three months ended March 31, 2025 and March 31, 2024, respectively.

Additionally, the Company has bolstered its liquidity through sales of its Class A Common Stock (“Common Stock”), see Note 7—Stockholders’ Deficit for further information on these sales.

Cash and Cash Equivalents.

As of September 30, 2024, cash and cash equivalents for the U.S.

As of March 31, 2025, cash and cash equivalents for the U.S.

markets and International markets were $ 302.5 million and $ 76.2 million, respectively, and as of December 31, 2024, cash and cash equivalents were $ 513.0 million and $ 119.3 million, respectively.

3 unchanged sentences

(In millions)

September 30, 2024

March 31, 2025

December 31, 2024

2 unchanged sentences

Total cash and cash equivalents and restricted cash in the statement of cash flows

As of September 30, 2024, restricted cash for the U.S.

As of March 31, 2025, restricted cash for the U.S.

markets and International markets were $ 19.8 million and $ 29.2 million, respectively.

6 unchanged sentences

Balance December 31, 2024

Other comprehensive income (loss)

Balance September 30, 2024

Other comprehensive income

Balance March 31, 2025

Accumulated Depreciation and Amortization.

Accumulated depreciation was $ 3,268.4 million and $ 3,109.8 million as of September 30, 2024, and December 31, 2023, respectively, related to property.

Accumulated amortization of intangible assets was $ 7.9 million and $ 7.3 million as of September 30, 2024, and December 31, 2023, respectively.

Other Expense (Income).

The following table sets forth the components of other expense (income):

Accumulated depreciation related to property was $ 3,351.8 million and $ 3,288.1 million as of March 31, 2025, and December 31, 2024, respectively.

Accumulated amortization of intangible assets was $ 8.3 million and $ 8.2 million as of March 31, 2025, and December 31, 2024, respectively.

Other Income.

The following table sets forth the components of other income:

Three Months Ended

Nine Months Ended

(In millions)

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

March 31, 2025

March 31, 2024

Foreign currency transaction (gains) losses

Governmental assistance - International markets

Non-operating components of net periodic benefit cost

Gain on extinguishment - Senior Subordinated Notes due 2025

Gain on extinguishment - Senior Subordinated Notes due 2026

(Gain) loss on extinguishment - Second Lien Notes due 2026

Term Loan modification - third party fees

Gain on extinguishment - Second Lien Notes due 2026

Derivative liability fair value decrease for embedded conversion feature in the Exchangeable Notes due 2030

Equity in earnings of non-consolidated entities

Derivative stockholder settlement

Shareholder litigation expense and (recoveries)

Vendor dispute settlement

Other settlement proceeds

Business interruption expense and insurance (recoveries)

Total other income

NOTE 2—LEASES

The Company leases theatres and equipment under operating and finance leases.

The Company typically does not believe that exercise of the renewal options is reasonably certain at the lease commencement and, therefore, considers the initial base term as the lease term.

Lease terms vary but generally the leases provide for fixed and escalating rentals, contingent escalating rentals based on the Consumer Price Index or other indexes not to exceed certain specified amounts and variable rentals based on a percentage of revenues.

The Company often receives contributions from landlords for renovations at existing locations.

The Company records the amounts received from landlords as an adjustment to the right-of-use asset and amortizes the balance as a reduction to rent expense over the base term of the lease agreement.

Equipment leases primarily consist of sight and sound and food and beverage equipment.

The following table reflects the lease costs for the periods presented:

Three Months Ended

Nine Months Ended

September 30,

(In millions)

11 unchanged sentences

Interest expense on lease liabilities

Finance lease obligations

Variable lease cost

Interest expense

Variable operating and finance lease cost

Theatre properties

Interest expense

Operating expense

1 unchanged sentence

Cash flow and supplemental information is presented below:

Nine Months Ended

September 30,

Three Months Ended

(In millions)

3 unchanged sentences

Financing cash flows used in finance leases

Landlord contributions:

Operating cash flows provided by operating leases

Lease incentives:

Operating cashflows provided by operating leases

Supplemental disclosure of noncash leasing activities:

1 unchanged sentence

(1) Includes lease extensions and option exercises.

The following table represents the weighted-average remaining lease term and discount rate as of September 30, 2024:

The following table represents the weighted-average remaining lease term and discount rate as of March 31, 2025:

Weighted Average

4 unchanged sentences

Finance leases

Minimum annual payments and the net present value thereof as of September 30, 2024, are as follows:

Minimum annual payments and the net present value thereof as of March 31, 2025, are as follows:

Operating Lease

1 unchanged sentence

(In millions)

Three months ending December 31, 2024

Nine months ending December 31, 2025

Total lease payments

1 unchanged sentence

Total operating and finance lease liabilities, respectively

As of September 30, 2024, the Company had signed additional operating lease agreements for two theatres that have not yet commenced.

The leases have terms of 10 and 15 years and total lease payments of approximately $ 15.0 million.

The timing of the lease commencement is dependent on the landlord providing the Company with control and access to the related facility.

During the nine months ended September 30, 2023, the Company received a $ 13.0 million buyout incentive from a landlord which provided the landlord the right to terminate the lease of one theatre.

The incentive was treated as a reduction to rent expense in the Company’s condensed consolidated statement of operations.

As of March 31, 2025, the Company had signed additional operating lease agreements for three theatres that have not yet commenced.

The leases have terms ranging from 10 to 15 years and total lease payments of approximately $ 26.0 million.

The timing of the lease commencement is dependent on the landlord providing the Company with control and access to the theatre.

NOTE 3—REVENUE RECOGNITION

2 unchanged sentences

Three Months Ended

Nine Months Ended

(In millions)

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

March 31, 2025

March 31, 2024

Major revenue types

5 unchanged sentences

Three Months Ended

Nine Months Ended

(In millions)

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

March 31, 2025

March 31, 2024

Timing of revenue recognition

3 unchanged sentences

(1) Amounts primarily include subscription and advertising revenues.

The following tables provide the balances of receivables, net and deferred revenues and income as of September 30, 2024, and December 31, 2023:

The following tables provide the balances of receivables, net and deferred revenues and income as of March 31, 2025, and December 31, 2024:

(In millions)

September 30, 2024

March 31, 2025

December 31, 2024

4 unchanged sentences

(In millions)

September 30, 2024

March 31, 2025

December 31, 2024

19 unchanged sentences

Foreign currency translation adjustment

Balance September 30, 2024

Balance March 31, 2025

(1) Includes movie tickets, food and beverage, gift cards, exchange tickets, subscription membership fees, and other loyalty membership fees.

8 unchanged sentences

Reclassification of the beginning balance to other theatre revenue, as the result of performance obligations satisfied

Balance September 30, 2024

(1) Represents the carrying amount of the National CineMedia, LLC (“NCM”) common units that were previously received under the annual Common Unit Adjustment (“CUA”) and subsequent adjustments related to the NCM bankruptcy, as discussed in greater detail below.

The deferred revenues are being amortized to other theatre revenues over the remainder of the 30-year term of the Exhibitor Service Agreement (“ESA”) ending in February 2037.

NCM Bankruptcy .

On April 11, 2023, NCM filed a petition under Chapter 11 of the U.S.

Bankruptcy Code in the Southern District of Texas.

NCM is the in-theatre advertising provider for the majority of the Company’s theatres in the United States.

Under the Chapter 11 plan of reorganization, which became effective on August 7, 2023 (the “Plan”), NCM has assumed its agreements with the Company.

As part of the Plan, on August 7, 2023, NCM issued 16,581,829 common units (“NCM Common Units”) that were owed to the Company as part of the annual common unit adjustment.

However, under the terms of the Plan and the restructuring of the equity of NCM thereunder, the NCM Common Units were immediately cancelled upon the effective date of the Plan.

On August 13, 2023, in response to an appeal by the Company regarding certain terms of the Plan, including modification of the terms of the Exhibitor Services Agreement with other parties that were not similarly granted to the Company and appeal of the court’s order to approve cancellation of the NCM Common Unit issuance, the United States District Court for the Southern District of Texas affirmed the rulings of the bankruptcy court, including confirmation of the Plan.

The Company filed an appeal to these rulings with the United States Court of Appeals for the Fifth Circuit and such appeal remains pending.

The Company does not expect NCM’s bankruptcy or the appeal to have a material impact on the Company.

Balance March 31, 2025

On April 17, 2025, NCM entered into the Second Amended and Restated Exhibitor Services Agreement (the “Amended ESA”) with the Company.

The term of the Amended ESA has been extended by five years through February 13, 2042, which will change how the deferred revenue is amortized in future periods.

Gift Cards and Exchange Tickets.

The total amount of non-redeemed gift cards and exchange tickets included in deferred revenues and income in the condensed consolidated balance sheet as of September 30, 2024 was $ 280.9 million.

This will be recognized as revenues as the gift cards and exchange tickets are redeemed or as the non-redeemed gift card and exchange ticket revenues are recognized in proportion to the pattern of actual redemptions, which is estimated to occur over the next 24 months .

The total amount of non-redeemed gift cards and exchange tickets included in deferred revenues and income in the condensed consolidated balance sheet as of March 31, 2025 was $ 302.1 million.

The deferred revenues will be recognized as revenues once the gift cards and exchange tickets are redeemed.

In the case of non-redeemed gift card and exchange tickets, the deferred revenues will be recognized in other theatre revenues in proportion to the pattern of actual redemptions, which is estimated to occur over the next 24 months .

In the International markets, certain gift card and exchange tickets are subject to expiration dates, which may trigger further adjustments to non-redemption revenue in other theatre revenues.

Loyalty Programs.

As of September 30, 2024, the amount of deferred revenues allocated to the loyalty programs included in deferred revenues and income in the condensed consolidated balance sheet was $ 77.4 million.

As of March 31, 2025, the amount of deferred revenues allocated to the loyalty programs included in deferred revenues and income in the condensed consolidated balance sheet was $ 81.0 million.

The earned points will be recognized as revenue as the points are redeemed, which is estimated to occur over the next 24 months .

2 unchanged sentences

NOTE 4—GOODWILL

The following table summarizes the changes in goodwill by reporting unit for the nine months ended September 30, 2024:

The following table summarizes the changes in goodwill by reporting unit for the three months ended March 31, 2025:

International

12 unchanged sentences

Currency translation adjustment

Balance September 30, 2024

Balance March 31, 2025

NOTE 5—INVESTMENTS

Investments in non-consolidated affiliates and certain other investments accounted for under the equity method generally include all entities in which the Company or its subsidiaries have significant influence, but not more than 50.0 % voting control, and are recorded in the condensed consolidated balance sheets in other long-term assets.

On December 30, 2022, the Company entered into an agreement to sell its 10.0 % investment in Saudi Cinema Company, LLC for SAR 112.5 million ($ 30.0 million), and on January 24, 2023, the Saudi Ministry of Commerce recorded the sale of equity and the Company received the proceeds on January 25, 2023.

The Company recorded a gain on the sale of $ 15.5 million in investment income during the nine months ended September 30, 2023.

Investments in non-consolidated affiliates as of September 30, 2024 include interests in Digital Cinema Distribution Coalition, LLC of 14.6 %, AC JV, LLC (“AC JV”), owner of Fathom Events, of 32.0 %, SV Holdco LLC, owner of Screenvision, of 18.4 %, Digital Cinema Media Ltd.

(“DCM”) of 50.0 %, Handelsbolaget Svenska Bio Lidingo of 50.0 %, Bergen Kino AS of 49.0 %, Odeon Kino Stavanger/Sandnes AS of 49.0 %, Capa Kinoreklame AS (“Capa”) of 50.0 % and Vasteras Biografer (“Vasteras”) of 50.0 %.

Investments in non-consolidated affiliates as of March 31, 2025 include interests in Digital Cinema Distribution Coalition, LLC (“DCDC”) of 14.6 %, AC JV, LLC (“AC JV”), owner of Fathom Events, of 32.0 %, SV Holdco LLC, owner of Screenvision, of 18.4 %, Digital Cinema Media Limited (“DCM”) of 50.0 %, Handelsbolaget Svenska Bio Lidingo of 50.0 %, Bergen Kino AS of 49.0 %, Odeon Kino Stavanger/Sandnes AS of 49.0 %, CAPA Kinoreklame AS (“Capa”) of 50.0 % and Vasteras Biografer, Aktiebolaget Svensk Filmindustri & Co (“Vasteras”) of 50.0 %.

Through its various investments the Company has interests in four U.S.

1 unchanged sentence

Indebtedness held by equity method investees is non-recourse to the Company.

During the three months ended September 30, 2024 and September 30, 2023, the Company recorded equity in earnings of non-consolidated entities of $ 5.2 million and $ 3.1 million, respectively.

During the nine months ended September 30, 2024 and September 30, 2023, the Company recorded equity in earnings of $ 9.9 million and $ 5.3 million, respectively.

Related Party Transactions

1 unchanged sentence

(In millions)

September 30, 2024

March 31, 2025

December 31, 2024

7 unchanged sentences

Three Months Ended

Nine Months Ended

(In millions)

Consolidated Statements of Operations

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

March 31, 2025

March 31, 2024

DCM screen advertising revenues

6 unchanged sentences

Other revenues

Capa screen advertising revenues

Other revenues

Investment in Hycroft

2 unchanged sentences

Each warrant is exercisable for one common share of Hycroft at a price of $ 10.68 per share over a 5-year term through March 2027.

The preceding amounts have been adjusted for the one-for-ten reverse stock split Hycroft effectuated on November 15, 2023.

The Company accounts for the common shares of Hycroft under the equity method and has elected the fair value option in accordance with ASC 825-10.

The Company accounts for the warrants as derivatives in accordance with

Accordingly, the fair value of the investments in Hycroft are remeasured at each subsequent reporting period and unrealized gains and losses are reported in investment income.

During the three months ended September 30, 2024 and September 30, 2023, the Company recorded unrealized loss in investment income of $ 1.4 million and $ 0.7 million, respectively.

During the nine months ended September 30, 2024 and September 30, 2023, the Company recorded unrealized loss in investment income of $ 1.7 million and $ 10.8 million, respectively.

See Note 9 — Fair Value Measurements for fair value information and the asset value for investments in Hycroft measured under the fair value option as well as the total asset value for other equity method investments.

The Company accounts for the warrants as derivatives in accordance with ASC 815.

Accordingly, the fair value of the investments in Hycroft are remeasured at each subsequent reporting period and unrealized gains and losses are reported in investment expense (income).

The Company recorded unrealized losses (gains) related to its investments in Hycroft in investment income of $( 2.8 ) million and $ 1.0 million, during the three months ended March 31, 2025 and March 31, 2024, respectively.

See Note 9 — Fair Value Measurements for further information.

NOTE 6—CORPORATE BORROWINGS AND FINANCE LEASE LIABILITIES

1 unchanged sentence

(In millions)

September 30, 2024

March 31, 2025

December 31, 2024

Secured Debt:

Credit Agreement-Term Loans due 2029 ( 11.919 % as of September 30, 2024)

Credit Agreement-Term Loans due 2029 ( 11.322 % as of March 31, 2025 and 11.356 % as of December 31, 2024)

12.75 % Odeon Senior Secured Notes due 2027

7.5 % First Lien Notes due 2029

Senior Secured Credit Facility-Term Loan due 2026 ( 8.474 % as of December 31, 2023)

6.00 %/ 8.00 % Cash/PIK Toggle Senior Secured Exchangeable Notes due 2030

1 unchanged sentence

10 %/ 12 % Cash/PIK Toggle Second Lien Subordinated Notes due 2026

6.375 % Senior Subordinated Notes due 2024 (£ 4.0 million par value as of September 30, 2024)

5.75 % Senior Subordinated Notes due 2025

3 unchanged sentences

Finance lease liabilities

Paid-in-kind interest for 6.00 %/ 8.00 % Cash/PIK Toggle Senior Secured Exchangeable Notes due 2030

Deferred financing costs

Net premium (discount) (1)

Net discount (1)

Derivative liability - Conversion Option

3 unchanged sentences

Total noncurrent carrying value of corporate borrowings and finance lease liabilities

(1) The following table provides the net premium (discount) amounts of corporate borrowings:

September 30,

(1) The following table provides details of the net discount of corporate borrowings:

(In millions)

10 %/ 12 % Cash/PIK Toggle Second Lien Subordinated Notes due 2026

Senior Secured Credit Facility-Term Loan due 2026

12.75 % Odeon Senior Secured Notes due 2027

1 unchanged sentence

6.00 %/ 8.00 % Cash/PIK/Toggle Senior Secured Exchangeable Notes due 2030

Net premium (discount)

The following table provides the principal payments required and maturities of corporate borrowing as of September 30, 2024:

The following table provides the principal payments required and maturities of corporate borrowing as of March 31, 2025:

(In millions)

Three months ended December 31, 2024

Nine months ended December 31, 2025

Debt Repurchases and Exchanges

The below table summarizes the various cash debt repurchase transactions, debt for equity exchange transactions and cash and debt for equity exchange transactions that occurred during the nine months ended September 30, 2024.

The debt for equity exchange transactions were treated as early extinguishments of debt.

In accordance with ASC 470-50-40-3, the reacquisition price of the extinguished debt was determined to be the fair value of the Common Stock exchanged.

The below table does not include the Refinancing Transactions described further below.

During the three months ended March 31, 2025, the Company executed a cash for debt transaction.

Aggregate Principal

Reacquisition

(Gain)/Loss on

Accrued Interest

(In millions, except for share data)

(In millions)

Repurchased/Exchanged

1 unchanged sentence

Paid/Exchanged

Cash debt repurchase transactions:

5.75 % Senior Subordinated Notes due 2025

Second Lien Notes due 2026

Total cash debt repurchase transactions

Debt for equity exchange transactions:

Second Lien Notes due 2026

Total debt for equity exchange transactions

Cash and debt for equity exchange transactions:

5.75 % Senior Subordinated Notes due 2025

5.875 % Senior Subordinated Notes due 2026

Second Lien Notes due 2026

Total cash and debt for equity exchange transactions

Total debt repurchases and exchanges

The total carrying value of the debt extinguished in the above transactions during the nine months ended September 30, 2024 was $ 343.8 million.

The below table summarizes the cash debt repurchase transactions during the nine months ended September 30, 2023, including repurchases with a related party:

The total carrying value of the debt extinguished in the above transactions during the three months ended March 31, 2025 was $ 1.3 million.

During the three months ended March 31, 2024, the Company executed a debt for equity exchange transaction.

This transaction was treated as an early extinguishment of debt.

In accordance with ASC 470-50-40-3, the reacquisition price of the extinguished debt was determined to be the fair value of the Common Stock exchanged.

The below table summarizes the debt for equity exchange.

Aggregate Principal

1 unchanged sentence

Accrued Interest

(In millions)

(In millions, except for share data)

Extinguishment

Related party transactions:

Second Lien Notes due 2026

5.875 % Senior Subordinated Notes due 2026

Total related party transactions

Non-related party transactions:

Second Lien Notes due 2026

Total non-related party transactions

Total debt repurchases

The total carrying value of the debt extinguished in the above transactions during the nine months ended September 30, 2023 was $ 199.0 million.

See Note 7—Stockholders’ Deficit for discussion of the $ 100.0 million aggregate principal amount of Second Lien Notes repurchased from Antara in exchange for 9,102,619 AMC Preferred Equity Units not included in the table above.

Refinancing Transactions

On July 22, 2024 (the “Closing Date”), the Company completed a series of refinancing transactions (the “Refinancing Transactions”) with two creditor groups to refinance and extend to 2029 and 2030 the maturities of approximately $ 1.6 billion of the Company’s debt previously maturing in 2026.

In connection with the refinancing on the Closing Date:

● The Company and Muvico, LLC, a newly formed indirect wholly-owned subsidiary of the Company (“Muvico”), entered into that certain credit agreement (the “New Term Loan Credit Agreement”), by and among the Company and Muvico, each, as a borrower (collectively, the “New Term Loan Borrowers”), the lenders party thereto and Wilmington Savings Fund Society, FSB, as administrative agent and collateral agent (in such capacities, the “New Term Loan Agent”) pursuant to which the Company and Muvico jointly and severally borrowed $ 1.2 billion of new term loans maturing 2029 (the “New Term Loans”).

● The New Term Loans were (i) used as consideration for the open market purchase of $ 1.1 billion of the Company’s existing senior secured term loans maturing in 2026 (the “Existing Term Loans”) and (ii) exchanged for $ 104.2 million of the Company’s 10 % / 12 % Cash/PIK Toggle Second Lien Subordinated Secured Notes due 2026 (the “Second Lien Notes”).

Under the terms of the New Term Loan Credit Agreement, lenders of remaining Existing Term Loans were entitled to exchange their remaining Existing Term Loans for New Term Loans subject to certain terms and conditions.

● Muvico also completed a private offering for cash of $ 414.4 million aggregate principal amount of 6.00 % / 8.00 % Cash/PIK Toggle Senior Secured Exchangeable Notes (the “Exchangeable Notes”), which are guaranteed by the Company, the existing guarantors under the Existing Term Loans, and the Existing First Lien Notes (as defined herein) (the “Existing Guarantors”) and Centertainment (as defined below) and which are exchangeable into Common Stock on the terms described herein.

● Muvico used the proceeds from the offering of the Exchangeable Notes to repurchase $ 414.4 million aggregate principal amount of the Second Lien Notes.

In connection with the formation of Muvico, among other things;

● The Company and certain of its subsidiaries (collectively, “AMC”) transferred certain leases, owned real property and related assets and rights in respect of 175 theatres (the “Transferred Theatres”) to Muvico, along with certain intellectual property, including the AMC brand name (the “Transferred IP”), pursuant to an asset transfer agreement (the “Asset Transfer Agreement”).

● Muvico and AMC entered into a management services agreement (the “Management Services Agreement”), pursuant to which Muvico engaged AMC to manage and operate the Transferred Theatres and provide certain other management services to Muvico.

● Muvico and AMC entered into an intellectual property license agreement (the “Intercompany License Agreement”), pursuant to which Muvico granted AMC a license to use the Transferred IP.

Muvico is a direct subsidiary of Centertainment Development, LLC (“Centertainment”).

Each of Muvico and Centertainment is an “unrestricted subsidiary” under the Existing Term Loans and the Existing First Lien Notes and therefore not subject to various restrictive covenants under the covenants governing such indebtedness.

On August 1, 2024, the Company completed follow-on open market repurchases of the Company’s Existing Term Loans (as defined below), and in exchange, issued to such selling holders the Company’s New Term Loans (as defined below) pursuant to the New Term Loan Credit Agreement (as defined below) of approximately $ 762.0 million.

On August 14, 2024, the Company completed an additional follow-on open market repurchase of the Company’s Existing Term Loans, and in exchange, issued to such selling holders the Company’s New Term Loans pursuant to the New Term Loan Credit Agreement of approximately $ 4.0 million.

On September 17, 2024, the Company issued $ 27.0 million of New Term Loans at par for cash and used the proceeds to redeem the remaining Existing Term Loans.

As of September 30, 2024, the Company completed open market purchases of $ 1,895.0 million aggregate principal amount of its Existing Term Loans and issued $ 2,024.3 million aggregate principal amount of the New Term Loans.

Accordingly, as of such date, the Company had no remaining aggregate principal amount of the Existing Term Loans outstanding and the loan documents relating to the Existing Term Loans were terminated.

The debt repurchases and exchanges for the Second Lien Notes were accounted for as extinguishments and resulted in a loss on extinguishment as follows:

(In millions)

Fair value of Exchangeable Notes due 2030

Fair value of Conversion Option

Fair value of New Term Loans due 2029

PIK fee paid to Second Lien Lenders

Cash fee paid to Second Lien Lenders

Second Lien Notes consideration

Principal Second Lien Notes

Premium Second Lien Notes

Carrying value Second Lien Notes

Loss on extinguishment of Second Lien Notes

The debt exchanges for the Existing Term Loans were accounted for as modifications and resulted in expense of approximately $ 41.0 million for costs paid to third parties.

See Note 1—Basis of Presentation for additional information about the components of other expense (income) related to the Refinancing Transactions.

The total carrying value of the debt extinguished in the above transactions during the three months ended March 31, 2024 was $ 19.9 million.

Exchangeable Notes

Carrying value (in millions) as of September 30, 2024:

Carrying value (in millions) as of March 31, 2025:

Carrying Value

at Issuance on

(Increase) Decrease to

July 22, 2024

(In millions)

December 31, 2024

Net Earnings (Loss)

September 30, 2024

March 31, 2025

Principal balance

Debt issuance costs

Accrued paid-in-kind interest

Derivative liability

Carrying value

On July 22, 2024, the Company issued $ 414.4 million aggregate principal amount of its Exchangeable Notes.

The Exchangeable Notes will bear interest at a rate of 6.00 % per annum, if paid in cash, and 8.00 % per annum, if paid in-kind by issuing the Exchangeable Notes (“PIK Notes”) having the same terms and conditions as the Exchangeable Notes (“PIK Interest”) in each case, payable semi-annually in arrears on June 15 and December 15, beginning on December 15, 2024.

The Exchangeable Notes will mature on April 30, 2030, unless redeemed or exchanged in full prior to such maturity date, pursuant to the terms contained in the Exchangeable Notes Indenture as further discussed below.

At any time prior to the close of business on the second Trading Day (as defined in the Exchangeable Notes Indenture) immediately preceding the final maturity date of the Exchangeable Notes, each holder of the Exchangeable

Notes shall have the right, at its option, to surrender for exchange all or a portion of its Exchangeable Notes at the Exchange Rate (as defined in the Exchangeable Notes Indenture) for Common Stock.

The Exchangeable Notes have an effective interest rate of 15.12 %.

At any time prior to the close of business on the second Trading Day (as defined in the Exchangeable Notes Indenture (the “Exchangeable Notes Indenture”)) immediately preceding the final maturity date of the Exchangeable Notes (as defined herein), each holder of the Exchangeable Notes shall have the right, at its option, to surrender for exchange all or a portion of its Exchangeable Notes at the Exchange Rate (as defined in the Exchangeable Notes Indenture) for Common Stock.

The Exchange Rate is initially set at 176.6379 shares of the Common Stock per $1,000 principal amount of Exchangeable Notes exchanged, which reflects a price of $ 5.66 per share Common Stock (“Exchange Price”), which price is equal to 113 % of the closing price per share of the Common Stock on July 19, 2024.

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Muvico, at its option, will be entitled to pay the Exchange Adjustment Consideration in the form of shares of Common Stock (using a modified exchange price equal to 140 % of the Exchange Price), subject to restrictions under the New Credit Agreement, cash in twelve equal installments over the twelve-month period following the applicable exchange or a combination thereof.

If certain corporate events that constitute a Fundamental Change (as defined in the Exchangeable Notes Indenture) occur, then holders will have the right to require Muvico to repurchase their Exchangeable Notes at a cash repurchase price equal to 100 % of the aggregate principal amount of the Exchangeable Notes to be repurchased, plus accrued and unpaid interest, if any, thereon to, but excluding, the Fundamental Change Repurchase Date (as defined in the Exchangeable Notes Indenture).

The definition of Fundamental Change includes certain business combination transactions involving the Company, stockholder approval of any plan or proposal for the liquidation or dissolution of the Company and certain de-listing events with respect to the Common Stock.

Muvico will also be required to mandatorily redeem all of the issued and outstanding Exchangeable Notes at a purchase price equal to 100 % of the aggregate principal amount, plus accrued and unpaid interest to, but excluding, the date of purchase in the event that, as of ninety (90) days prior to the maturity date of the Company’s 7.50 % first lien secured notes due 2029 (the “Existing First Lien Notes”), the aggregate principal amount outstanding of the Existing First Lien Notes with a maturity date prior to April 30, 2030 exceeds $ 190,000,000 .

The Exchangeable Notes Indenture contains covenants that limit the Centertainment Group Parties’ (as defined below) ability to, among other things:

(i) incur additional indebtedness or guarantee indebtedness;

(ii) create liens;

(iii) declare or pay dividends, redeem stock or make other distributions to stockholders;

(iv) make investments;

(v) enter into transactions with its affiliates;

(vi) consolidate, merge, sell or otherwise dispose of all or substantially all of their respective assets;

and (vii) impair the security interest in the collateral.

These covenants are subject to a number of limitations and exceptions.

The Exchangeable Notes Indenture also incorporates the other restrictive covenants contained in the New Term Loan Credit Agreement.

The Exchangeable Notes Indenture also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, interest and any other monetary obligations on all the then outstanding Exchangeable Notes to be due and payable immediately.

The Company analyzed the conversion option and Exchange Adjustment Consideration as one single conversion option (the “Conversion Option”).

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The Company bifurcated the Conversion Option as:

(i) the economic characteristics of a conversion option embedded in a debt instrument are not clearly and closely related to the economic

characteristics and risks of a debt host contract, as stated in ASC 815-15-25-51;

(i) the economic characteristics of a conversion option embedded in a debt instrument are not clearly and closely related to the economic characteristics and risks of a debt host contract, as stated in ASC 815-15-25-51;

(ii) the host debt instrument is not remeasured at fair value but rather, the Exchangeable Notes are measured at amortized cost;

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The Conversion Option also includes a make-whole adjustment, the Exchange Adjustment Consideration.

The Exchange Adjustment Consideration (i.e., make-whole payment) does not meet the criteria for indexation under ASC 815-40-15-7C because the design of the feature does not meet the time-value scope exception and as a result is accounted for as a derivative.

The initial estimated fair value of the Exchangeable Notes of $ 293.6 million resulted in a discount to the principal balance of $ 120.8 million and is amortized to interest expense resulting in an effective rate of 13.42 % over the term of the Exchangeable Notes.

The Company also recorded deferred debt issuance costs of approximately $ 23.2 million related to the issuance of the Exchangeable Notes and will amortize those costs to interest expense following the effective interest method over the term of the Exchangeable Notes.

The Company recorded interest expense for the period from July 22, 2024 to September 30, 2024 of $ 7.9 million.

The Exchange Adjustment Consideration (i.e., make-

whole payment) does not meet the criteria for indexation under ASC 815-40-15-7C because the design of the feature does not meet the time-value scope exception and as a result is accounted for as a derivative.

The derivative liability is remeasured at fair value each reporting period with changes in fair value recorded in the consolidated statement of operations as other expense or income.

See Note 9–Fair Value Measurements for a discussion of the valuation methodologies.

The principal balance exceeded the if-converted value of the Exchangeable Notes (including the Exchange Adjustment Consideration paid in shares) by approximately $ 38.5 million as of September 30, 2024 based on the closing price per share of our common stock of $ 4.55 per share.

New Term Loans due 2029

The New Term Loan Credit Agreement provides for (i) the New Term Loans in an initial aggregate principal amount of $ 1,229,415,340 and (ii) the ability of the New Term Loan Borrowers to incur additional New Term Loans, the proceeds of which will be used in connection with future open market purchases of the Existing Term Loans.

The New Term Loans mature on January 4, 2029 (or, if at least $ 190,000,000 of the Existing First Lien Notes have not been repurchased (and cancelled), repaid or refinanced by October 5, 2028, then October 5, 2028).

The New Term Loans are subject to amortization of principal, payable in quarterly installments on the last business day of each fiscal quarter, commencing on September 30, 2024, equal to 1.00 % per annum.

The remaining aggregate principal amount outstanding (together with accrued and unpaid interest on the principal amount) of the New Term Loans is payable at maturity.

The New Term Loans bear interest, at the option of the New Term Loan Borrowers, at rates equal to either (i) a base rate plus a margin of between 500 and 600 basis points depending on the total leverage ratio of the Company and its subsidiaries on a consolidated basis (the “Total Leverage Ratio”) or (ii) Term SOFR plus a margin of between 600 and 700 basis points depending on the Total Leverage Ratio.

Until the delivery under the New Term Loan Credit Agreement of the financial statements for the first full fiscal quarter ending after the Closing Date, the New Term Loans bear interest, at the option of the Company, at either (a) the base rate plus a margin of 600 basis points or (b) Term SOFR plus a margin of 700 basis points.

The New Term Loans are guaranteed, subject to limited exceptions, by Centertainment and Muvico and their future respective subsidiaries (collectively, the “Centertainment Group Parties”) and the Existing Guarantors, and are secured by liens on substantially all of the tangible and intangible assets owned by the Company and such guarantors, in each case, subject to limited exceptions set forth in the New Term Loan Credit Agreement.

The New Term Loan Credit Agreement contains covenants that limit the Company and its subsidiaries’ ability to, among other things:

(i) incur additional indebtedness or guarantee indebtedness;

(ii) create liens;

(iii) declare or pay dividends, redeem stock or make other distributions to stockholders;

(iv) make investments;

(v) enter into transactions with its affiliates;

(vi) consolidate, merge, sell or otherwise dispose of all or substantially all of their respective assets;

and (vii) maintain cash in the accounts of the Company and its subsidiaries (other than the Centertainment Group Parties).

These covenants are subject to a number of limitations and exceptions.

The New Term Loan Credit Agreement also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, interest and any other monetary obligations on all the then outstanding New Term Loans to become immediately due and payable.

Unamortized discounts and deferred charges related to the Existing Term Loans of $ 6.5 million and fees paid to Existing Term Loan lenders of $ 45.7 million were recorded as deferred charges related to the New Term Loans and the Company will amortize those costs to interest expense following the effective interest method over the term of the New Term Loans.

The principal balance exceeded the if-converted value of the Exchangeable Notes (including the Exchange Adjustment Consideration paid in shares) by approximately $ 183.0 million as of March 31, 2025 based on the closing price per share of the Company’s Common Stock of $ 2.87 per share.

NOTE 7—STOCKHOLDERS’ DEFICIT

Reverse Stock Split

On August 24, 2023, the Company effectuated a reverse stock split at a ratio of one share of Common Stock for every ten shares of Common Stock.

As a result of the reverse stock split, each share of Series A Convertible Participating Preferred Stock became convertible into ten shares of Common Stock, and by extension each AMC Preferred Equity Unit became equivalent to one -tenth (1/10th) of a share of Common Stock.

The reverse stock split did not impact the number of AMC Preferred Equity Units outstanding.

The Company concluded that this change in conversion ratio is analogous to a reverse stock split of the AMC Preferred Equity Units even though the reverse stock split did not have an effect on the number of AMC Preferred Equity Units outstanding.

Accordingly, all references made to share, per share, unit, per unit, or common share amounts in the accompanying consolidated financial statements and applicable disclosures for periods prior to August 24, 2023, have been retroactively adjusted to reflect the effect of the reverse stock split.

References made to AMC Preferred Equity Units have also been retroactively adjusted to reflect the effect of the reverse stock split on their equivalent Common Stock shares.

On August 25, 2023, all of the Company’s outstanding AMC Preferred Equity Units converted into shares of Common Stock.

Share Issuances

During the nine months ended September 30, 2024, the Company raised gross proceeds of $ 250.0 million and paid fees to sales agents and incurred other third-party issuance costs of approximately $ 6.3 million and $ 0.6 million, respectively, through its at-the-market offering of approximately 72.5 million shares of Common Stock.

The Company paid $ 0.7 million of other third-party issuance costs during the nine months ended September 30, 2024.

During the nine months ended September 30, 2023, the Company raised gross proceeds of approximately $ 325.5 million and paid fees to the sales agents and incurred third-party issuance costs of approximately $ 8.2 million and $ 0.5 million, respectively, through its at-the-market offering of 40.0 million shares of its Common Stock.

The Company paid $ 0.1 million of other third-party issuance costs during the nine months ended September 30, 2023.

During the nine months ended September 30, 2023, the Company raised gross proceeds of approximately $ 114.5 million and paid fees to a sales agent and incurred other third-party issuance costs of approximately $ 2.9 million and $ 8.7 million, respectively, through its at-the-market offering of 7.1 million shares of AMC Preferred Equity Units.

The Company paid $ 11.5 million of other third-party issuance costs during the nine months ended September 30, 2023.

Antara Transactions

On December 22, 2022, the Company entered into the Forward Purchase Agreement with Antara pursuant to which the Company agreed to (i) sell to Antara 10,659,511 AMC Preferred Equity Units for an aggregate purchase price of $ 75.1 million and (ii) simultaneously purchase from Antara $ 100.0 million aggregate principal amount of the Company’s 10 %/ 12 % Cash/PIK Toggle Second Lien Notes in exchange for 9,102,619 AMC Preferred Equity Units.

On February 7, 2023, the Company issued 19,762,130 AMC Preferred Equity Units to Antara in exchange for $ 75.1 million in cash and $ 100.0 million aggregate principal amount of the Company’s 10 %/ 12 % Cash/PIK Toggle Second Lien Notes.

The Company recorded $ 193.7 million to stockholders’ deficit as a result of the transaction.

The Company paid $ 1.4 million of accrued interest in cash upon exchange of the notes.

AMC Preferred Equity Units

Each AMC Preferred Equity Unit was a depositary share and represented an interest in a share of Series A Convertible Participating Preferred Stock evidenced by a depositary receipt pursuant to a deposit agreement.

Each AMC Preferred Equity Unit was designed to have the same economic and voting rights as a share of Common Stock.

On August 25, 2023, all outstanding AMC Preferred Equity Units were converted to Common Stock.

As of September 30, 2024, the Company has 50,000,000 authorized shares of preferred stock available for issuance.

On December 6, 2024, the Company entered into a sales and registration agreement (the “Sales and Registration Agreement”) with Goldman Sachs & Co.

LLC, from time to time acting in its capacity as (1) sales agent (in such capacity, the “Sales Agent”) or (2) the Forward Seller of any and all Hedging Shares offered by the Forward Counterparty under one or more Forwards (in each case, as defined below) relating to an aggregate of up to 50,000,000 shares of Common Stock of the Company.

In accordance with the terms of the Sales and Registration Agreement, the Company may issue and sell shares of Common Stock covered by the prospectus supplement at any time and from time to time through the Sales Agent.

The Sales Agent may act as agent on the Company’s behalf or purchase shares of Common Stock from the Company as principal for its own account.

The Company also entered into a master confirmation (the “Master Confirmation”) with Goldman Sachs International (in its capacity as buyer under any Forward (as hereinafter defined), the “Forward Counterparty”) pursuant to which the Company entered into forward transactions (each a “Forward”), under which the Company agreed to sell the number of shares of Common Stock specified in such Forward (subject to adjustment as set forth therein) to the Forward Counterparty.

In respect of each Forward, to enable the Forward Counterparty to establish a hedge position with respect to such Forward, the Company effectively pledged up to the maximum number of shares of Common Stock deliverable under such Forward (the “Hedging Shares”), and to establish a hedge position under such Forward, the Forward Counterparty rehypothecated and sold such maximum number of shares through Goldman Sachs & Co.

LLC acting as the statutory underwriter (in such capacity, the “Forward Seller”) in an offering under a prospectus supplement and accompanying prospectus over a period of time agreed between the Company and the Forward Counterparty for such Forward (an “Initial Hedging Period”), all subject to the terms of the Sales and Registration Agreement.

On each trading day during the respective Initial Hedging Periods for each Forward, the Company instructed the Forward Counterparty on a day-by-day basis to sell a specified number of its shares, the total of each such trading day’s sales representing a component of such Forward (each a “Component”).

The volume weighted average price per share for sales executed by the Forward Seller during the Initial Hedging Period for each Component (the “Reference Price”) was used to determine the floor price (“Forward Floor Price”) and cap price (“Forward Cap Price”) for such Component.

The Company was entitled to a prepayment (a “Prepayment”), calculated on a Component basis for each Forward, in an amount equal to the product of (i) the number of shares sold by the Forward Seller during the Initial Hedging Period for such Forward, (ii) the Forward Floor Price and (iii) the relevant prepayment percentage agreed for such Forward.

Each Forward was subject to a subsequent valuation period (the “Valuation Period”) that starts to run shortly after the outside date to the Initial Hedging Period agreed between the Company and the Forward Counterparty and ends on the final settlement date (the “Final Settlement Date”), subject to any acceleration of the scheduled maturity date of all or portion(s) of such Forward at the election of the Forward Counterparty.

This Valuation Period determines the final settlement of the Forward Counterparty’s purchase price through a true-up payment from the Forward Counterparty to the Company if the total amount due under any such Forward exceeds the Prepayment (the “True-Up Payment”).

Pursuant to the agreements described above, the Company entered into Forwards to sell 30,000,000 shares of Common Stock in the aggregate with the respective Reference Prices in respect of each Component of such Forwards ranging from $ 4.01 to $ 4.71 per share of Common Stock.

The Company evaluated the Forwards under ASC 815—Derivatives and Hedging and concluded that the transactions consist of a subscription receivable accounted for under ASC 505-10-45-2 reflecting the Company’s right to receive the Prepayment and deliver shares to the Forward Counterparty.

Accordingly, pursuant to Regulation S-X 5-02.29, the Company recorded the Prepayment as an increase to additional paid in capital with an equal and offsetting subscription receivable as a decrease to additional paid in capital.

The subscription receivable is considered a debt-like host and the Company’s right to receive additional cash consideration up to the Forward Cap Price based on the movement of the share price during the Valuation Period is an embedded feature that meets the definition of a derivative.

Because the True-Up Payment can be received in cash or shares of Common Stock at the Company’s election and the value mechanics within the instrument are all indexed to the Company’s own Common Stock, the embedded feature meets the equity classification scope exception in ASC 815-40 and is not accounted for outside of equity.

In January 2025, the Company was paid $ 108.7 million for the Prepayments in respect of the Forwards.

The Company reduced the subscription receivable which resulted in an increase in total additional paid in capital.

The Valuation Period ended on March 17, 2025 with no True-Up Payment owed to the Company.

Additionally, during the three months ended March 31, 2025, the Company issued shares through an “at-the-market” offering.

The below table summarizes the activity of the “at-the-market” offering during the three months ended March 31, 2025:

(In millions)

March 31, 2025

Shares issued through at-the-market offering

At-the-market offering gross proceeds

Sales agent fees paid

Other third-party issuance costs incurred

Other third-party issuance costs paid

As of January 15, 2025, all 50.0 million shares subject to the Sales and Registration Agreement had been sold.

Stock-Based Compensation

Equity Incentive Plans

On June 5, 2024, the Company’s shareholders approved a new equity incentive plan (“2024 EIP”).

Awards that may be granted under the 2024 EIP include options, stock appreciation rights, restricted stock awards, restricted stock units, cash awards, and other equity-based awards.

The 2024 EIP will be unlimited in duration and, in the event of termination, will remain in effect as long as any shares of awards under it are outstanding and not fully vested.

The following table presents the stock-based compensation expense recorded within general and administrative:

Three Months Ended

Nine Months Ended

September 30,

(In millions)

Equity classified awards:

Special awards expense

Board of directors stock award expense

Board of director stock award expense

Restricted stock unit expense

Performance stock unit expense

Total equity classified awards:

Liability classified awards:

Restricted and performance stock unit expense

Total liability classified awards:

Total stock-based compensation expense

As of September 30, 2024, the estimated remaining unrecognized compensation cost related to stock-based compensation grants was approximately $ 19.6 million, which reflects assumptions related to attainment of performance targets based on the scales as described below.

As of March 31, 2025, the estimated remaining unrecognized compensation cost related to stock-based compensation grants was approximately $ 25.7 million, which reflects assumptions related to attainment of performance targets based on the scales as described below.

The weighted average period over which this remaining compensation expense is expected to be recognized is approximately 1.2 years.

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On February 19, 2025, the compensation committee of AMC’s Board of Directors (“Compensation Committee”) approved modification of the performance goals applicable to all 2024 Tranche Year PSU awards.

This was accounted for as a modification to the 2024 Tranche Year PSU awards which lowered the Adjusted EBITDA performance target such that 146 % vesting was achieved.

This modification resulted in the immediate additional vesting of 270,093 2024 Tranche Year PSUs ( 4,181 cash settled units and 265,912 equity settled units).

This was treated as a Type 3 modification (improbable-to-probable) which required the Company to recognize additional stock compensation expense based on the modification date fair values of the incremental PSUs.

During the three months ended March 31, 2025, the Company recognized $ 1.0 million of stock compensation expense related to these awards.

On February 22, 2024, the Compensation Committee approved modification of the performance goals applicable to all 2023 Tranche Year PSU awards.

This was accounted for as a modification to the 2023 Tranche Year PSU awards which lowered the Adjusted EBITDA and free cash flow performance targets such that 200 % vesting was achieved for both targets.

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During the nine months ended September 30, 2024, the Company recognized $ 2.1 million of stock compensation expense related to these awards.

On February 23, 2023, the Compensation Committee approved special awards in lieu of vesting of the 2022 Tranche Year PSU awards.

The special awards were accounted for as modification to the 2022 Tranche Year PSU awards which lowered the Adjusted EBITDA and free cash flow performance targets such that 200 % vesting was achieved for both targets.

This modification resulted in the immediate additional vesting of 238,959 Common Stock PSUs and 238,959 AMC Preferred Equity Unit PSUs.

This was treated as a Type 3 modification (improbable-to-probable) which requires the Company to recognize additional stock compensation expense based on the modification date fair values of the Common Stock PSUs and AMC Preferred Equity Units PSUs of $ 14.9 million and $ 5.3 million, respectively.

During the nine months ended September 30, 2023, the Company recognized $ 20.2 million of stock compensation expense related to these awards.

Awards Granted in 2024

On June 5, 2024, the Company’s shareholders approved a new equity incentive plan (“2024 EIP”).

The 2024 EIP has 25.0 million shares of Common Stock available for awards under the plan.

Awards that may be granted under the 2024 EIP include options, stock appreciation rights, restricted stock awards, restricted stock units, cash awards, and other equity-based awards.

The 2024 EIP will be unlimited in duration and, in the event of termination, will remain in effect as long as any shares of awards under it are outstanding and not fully vested.

On June 5, 2024, the Company’s board of directors granted awards of stock, restricted stock units (“RSUs”) and performance stock units (“PSUs”) to certain of the Company’s employees and directors under the 2024 EIP.

During the three months ended March 31, 2024, the Company recognized $ 2.1 million of stock compensation expense related to these awards.

Awards Granted

On February 19, 2025, the Compensation Committee granted awards of stock, restricted stock units (“RSUs”), and performance stock units (“PSUs”) to certain of the Company’s employees and directors under the 2024 EIP.

Each RSU or PSU is convertible into one share of Common Stock upon vesting.

Each RSU and PSU held by a participant as of a dividend record date is entitled to a dividend equivalent equal to the amount paid with respect to one share of Common

Stock underlying the unit.

Each RSU and PSU held by a participant as of a dividend record date is entitled to a dividend equivalent equal to the amount paid with respect to one share of Common Stock underlying the unit.

Any such accrued dividend equivalents are paid to the holder only upon vesting of the units.

Each unit represents the right to receive one share of Common Stock at a future date.

The 2025 awards allow participants to continue to vest in their RSUs and PSUs in the ordinary course upon achieving certain conditions for retirement.

As such, the end of the requisite service period for certain participants has been determined as the later of the award vesting date or the date the participant achieves the retirement conditions.

The awards generally had the following features:

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A total of 3,650,970 PSUs were awarded (“2025 PSU award”) to certain members of management and executive officers, with the total PSUs divided into three separate year tranches, with each tranche allocated to a fiscal year within the performance period (“Tranche Year”).

The PSUs within each Tranche Year are further divided between two performance targets:

the Adjusted EBITDA performance target and the free cash flow performance target.

The 2024 PSU awards will vest if 80 % to 120 % of the performance targets are attained, with the corresponding vested unit amount ranging from 50 % to 200 % of the PSUs awarded.

The PSUs within each Tranche Year are further divided between three performance targets:

the Adjusted EBITDA performance target, the free cash flow performance target and various strategic initiatives.

The Adjusted EBITDA and free cash flow based 2025 PSU awards will vest if 80 % to 120 % of the performance targets are attained, with the corresponding vested unit amount ranging from 50 % to 200 % of the PSUs awarded.

The strategic initiative based 2025 PSU awards will vest if three to seven one-year strategic initiatives are achieved by the end of the 2025 Tranche Year and/or if four to ten two-year strategic initiatives are achieved by the end of the 2026 Tranche Year, with the corresponding vested unit amount ranging from 50 % to 200 % of the PSUs awarded.

If the performance targets are met at 100 % , the 2025 PSU awards will vest at 3,650,970 units in the aggregate.

No PSUs will vest for each Tranche Year if the Company does not achieve 80% of the Tranche Year’s Adjusted EBITDA or free cash flow targets.

No Adjusted EBITDA or free cash flow based PSUs will vest for each Tranche Year if the Company does not achieve at least 80 % of the Tranche Year’s applicable performance targets.

year strategic initiatives will vest if the Company does not achieve three of the initiatives by the end of the 2025 Tranche Year.

No two-year strategic initiatives will vest if the Company does not achieve four of the initiatives by the end of the 2026 Tranche Year.

The Compensation Committee establishes the annual performance targets at the beginning of each year.

Therefore, the grant date (and fair value measurement date) for each Tranche Year is the date at the beginning of each year when a mutual understanding of the key terms and conditions are reached per ASC 718, Compensation – Stock compensation.

The equity classified 2024 PSU award grant date fair value for the 2024 Tranche Year award of 774,202 units was approximately $ 4.0 million, the equity classified 2023 PSU award grant date fair value for the 2024 Tranche Year award of 105,357 units was $ 0.5 million and the equity classified 2022 PSU award grant date fair value for the 2024 Tranche Year award of 44,081 units was $ 0.2 million, measured using performance targets at 100 %.

Therefore, in accordance with ASC 718, Compensation – Stock compensation, the grant date (and fair value measurement date) for each Tranche Year is the date at the beginning of each year when a mutual understanding of the key terms and conditions are reached.

The equity classified 2025 PSU award grant date fair value for the 2025 Tranche Year award of 1,216,944 units was approximately $ 4.3 million, the equity classified 2025 PSU award grant date fair value for the 2026 Tranche Year award of 108,323 units was $ 0.4 million, the equity classified 2024 PSU award grant date fair value for the 2025 Tranche Year award of 774,203 units was $ 2.8 million, and the equity classified 2023 PSU award grant date fair value for the 2025 Tranche Year award of 105,099 units was $ 0.4 million, measured using performance targets at 100 %.

Liability Classified Awards

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The Company recognizes expense related to these awards based on the fair value of the Common Stock shares, giving effect to the portion of services rendered during the requisite services period.

As of September 30, 2024, there were 65,676 nonvested underlying Common Stock RSUs and PSUs (after giving effect to estimated attainment levels of 148 %/ 158 % for Adjusted EBITDA and free cash flow PSUs, respectively) related to awards classified as liabilities.

There are 51,099 nonvested underlying Common Stock RSUs and PSUs (2024 Tranche Year measured using 148 %/ 158 % for Adjusted EBITDA and free cash flow PSUs, respectively) that are currently classified as liabilities and 14,577 nonvested underlying Common Stock PSUs (2025 Tranche Year) which have not been granted for accounting purposes as the performance targets for the 2025 PSU Tranche Years have yet to be established.

The following table represents the equity classified nonvested RSU and PSU activity for the nine months ended September 30, 2024:

As of March 31, 2025, there were 25,588 nonvested underlying Common Stock RSUs and PSUs (measured at 100 % attainment levels for both the Adjusted EBITDA and free cash flow targets) related to awards classified as liabilities.

Nonvested Awards

The following table represents the equity classified nonvested RSU and PSU activity for the three months ended March 31, 2025:

RSUs and PSUs

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Granted - Special Award

( 1,161,440 )

Vested - Special Award

Cancelled (2)

( 1,052,237 )

Cancelled - Special Award (2)

Nonvested at September 30, 2024

Nonvested at March 31, 2025

Tranche Years 2026 and 2027 awarded under the 2025 PSU award and Tranche Year 2026 awarded under the 2024 PSU award with grant date fair values to be determined in year 2026 and 2027, respectively

Total Nonvested at September 30, 2024

(1) The number of PSU shares granted under the Tranche Year 2024 assumes the Company will attain a performance target at 148 % for the Adjusted EBITDA target and 158 % for the free cash flow target.

Total nonvested at March 31, 2025

(1) The number of PSU shares granted under the Tranche Year 2025 assumes the Company will attain a performance target at 100 % for the Adjusted EBITDA target, 100 % for the free cash flow target, and 100 % for the strategic initiatives.

(2) Represents vested RSUs and PSUs surrendered in lieu of taxes.

As a result, the Company paid taxes for restricted unit withholdings of approximately $ 2.2 million during the nine months ended September 30, 2024.

(3) Includes AMC Preferred Equity Unit RSUs and PSUs that were converted to Common Stock RSUs and PSUs.

As a result, the Company paid taxes for restricted unit withholdings of approximately $ 4.4 million during the three months ended March 31, 2025.

Condensed Consolidated Statements of Stockholders’ Deficit

For the Nine Months Ended September 30, 2024

For the Three Months Ended March 31, 2025

Class A Voting

Comprehensive

Stockholders’

(In millions, except share and per share data)

(In millions, except share data)

Balances December 31, 2024

Other comprehensive loss

Debt for equity exchange

Other comprehensive income

Taxes paid for restricted unit withholdings

Share issuance costs

Share issuances

Stock-based compensation (1)

Balances March 31, 2025

Other comprehensive income

Debt for equity exchange

Share issuance

Stock-based compensation (1)

Balances June 30, 2024

Other comprehensive income

Debt for equity exchange

Stock-based compensation (1)

Balances September 30, 2024

(1) Includes 370,586 Common Stock shares awarded to the Board of Directors, and 1,302,422 vested Common Stock RSUs and PSUs.

Condensed Consolidated Statements of Stockholders’ Deficit

For the Nine Months Ended September 30, 2023

Preferred Stock

Series A Convertible

Participating

Depositary Shares of

Preferred Stock

AMC Preferred

For the Three Months Ended March 31, 2024

Comprehensive

Stockholders’

(In millions, except share and per share data)

Equity Units (3)

(In millions, except share data)

Balances December 31, 2023

Other comprehensive loss

Share Issuance

Antara Forward Purchase Agreement (2)

Debt for equity exchange

Taxes paid for restricted unit withholdings

Share issuance costs

Stock-based compensation (1)

Balances March 31, 2024

Other comprehensive loss

AMC Preferred Equity Units issuance

Taxes paid for restricted unit withholdings

Stock-based compensation

Balances June 30, 2023

Other comprehensive income

AMC Preferred Equity Unit conversion

( 9,954,065 )

( 99,540,642 )

Settlement payment

Share issuance

Stock-based compensation

Balances September 30, 2023

(1) Includes 8,555 Common Stock shares and 15,370 AMC Preferred Equity Units awarded to the Board of Directors, 226,791 vested Common Stock RSUs and PSUs, and 254,074 vested AMC Preferred Equity Units RSUs and PSUs.

(2) Includes $ 75.1 million of cash proceeds and $ 118.6 million carrying value of the debt exchanged for AMC Preferred Equity Units.

(3) Share counts have been retroactively adjusted to reflect the effect of the reverse stock split.

(1) Vested Common Stock RSUs and PSUs.

NOTE 8—INCOME TAXES

The Company’s worldwide effective income tax rate is based on actual income (loss), statutory rates, valuation allowances against deferred tax assets and tax planning opportunities available in the various jurisdictions in which it operates.

The Company is using a discrete income tax calculation for the nine months ended September 30, 2024, due to the lingering effects of the COVID-19 pandemic and recent labor stoppages on the industry.

The Company is using a discrete income tax calculation for the three months ended March 31, 2025, due to the lingering effects of the COVID-19 pandemic and labor stoppages on the industry.

Historically, for interim financial reporting, the Company estimated the worldwide annual income tax rate based on projected taxable income (loss) for the full year and recorded a quarterly income tax provision or benefit in accordance with the anticipated annual rate, adjusted for discrete items, if any.

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The Company recognizes income tax-related interest expense and penalties as income tax expense and general and administrative expense, respectively.

The Organization for Economic Co-operation and Development (“OECD”) has issued model rules, which generally provide for a jurisdictional minimum effective tax rate of 15.0 %.

Various countries have or are in the process of enacting legislation intended to implement the principles effective January 1, 2024.

The Company’s adoption of the OECD's global tax reform is not expected to have a material impact on its 2024 income tax expense.

The Company evaluates its deferred tax assets each period to determine if a valuation allowance is required based on whether it is “more likely than not” that some portion of the deferred tax assets would not be realized.

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deferred tax assets and most of the Company’s international deferred tax assets as the Company has determined the realization of these assets does not meet the more likely than not criteria.

The effective tax rate for the nine months ended September 30, 2024, reflects the impact of these valuation allowances against U.S.

The effective tax rate for the three months ended March 31, 2025, reflects the impact of these valuation allowances against U.S.

and international deferred tax assets generated during the period.

The actual effective rate for the nine months ended September 30, 2024, was ( 0.6 )%.

The Company’s consolidated tax rate for the nine months ended September 30, 2024, differs from the U.S.

The actual effective rate for the three months ended March 31, 2025, was ( 0.8 )%.

The Company’s consolidated tax rate for the three months ended March 31, 2025, differs from the U.S.

statutory tax rate primarily due to the valuation allowances in U.S.

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Recurring Fair Value Measurements.

The following table summarizes the fair value hierarchy of the Company’s financial assets and liabilities carried at fair value on a recurring basis as of September 30, 2024:

Fair Value Measurements at September 30, 2024 Using

The following table summarizes the fair value hierarchy of the Company’s financial assets and liabilities carried at fair value on a recurring basis as of March 31, 2025:

Fair Value Measurements at March 31, 2025 Using

Total Carrying

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(In millions)

September 30, 2024

March 31, 2025

Other long-term assets:

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The binomial lattice approach consists of simulated Common Stock prices from the valuation date to the maturity of the Exchangeable Notes.

The significant inputs used to value the derivative include the initial share price of the Common Stock, the volatility of the share price, time to maturity, risk-free interest rate, credit spread, and the discount yield.

The estimated fair value of the derivative liability on July 22, 2024 was $ 233.4 million.

The Company measures the derivative at fair value at the end of each reporting period with any changes in fair value recorded to other expense (income) in the condensed consolidated statements of operations.

Nonrecurring Fair Value Measurements.

The following fair value hierarchy table is presented for nonrecurring fair value measurements of the bond component of the Company’s Exchangeable Notes:

Fair Value Measurements at July 22, 2024 Using

Significant other

Total Carrying

Quoted prices in

active market

(In millions)

July 22, 2024

Corporate Borrowings:

Exchangeable Notes

Valuation Technique.

The bond component of the Exchangeable Notes issued on July 22, 2024 was recorded at fair value.

The Company estimated the fair value using a discounted cash flow analysis utilizing a discount yield based on the risk-free rate plus an assumed credit spread built using observable recovery rates of similarly secured debt.

See Note 6 — Corporate Borrowings and Finance Lease Liabilities for further information.

The significant inputs used to value the derivative include the share price of the Common Stock, the volatility of the share price, time to maturity, risk-free interest rate, credit spread, and the discount yield.

The Company measures the derivative at fair value at the end of each reporting period with any changes in fair value recorded to other income in the condensed consolidated statements of operations.

Other Fair Value Measurement Disclosures.

The Company is required to disclose the fair value of financial instruments that are not recognized at fair value in the statement of financial position for which it is practicable to estimate that value:

Fair Value Measurements at September 30, 2024 Using

Fair Value Measurements at March 31, 2025 Using

Significant other

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(In millions)

September 30, 2024

March 31, 2025

Current maturities of corporate borrowings

Corporate borrowings

Corporate borrowings (excluding derivative liability above)

Valuation Technique.

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The Company valued these notes at principal value less an estimated discount reflecting a market yield to maturity.

The Level 3 fair value measurement represents the transaction price of the corporate borrowings under market conditions.

See Note 6 — Corporate Borrowings and Finance Lease Liabilities for further information.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value because of the short maturity of these instruments.

NOTE 10—OPERATING SEGMENTS

The Company reports information about operating segments in accordance with ASC 280-10, Segment Reporting, which requires financial information to be reported based on the way the chief operating decision maker organizes segments within a company for making operating decisions and evaluating performance.

NOTE 10—SEGMENT REPORTING

The Company reports information about operating segments in accordance with ASC 280-10, Segment Reporting, which requires financial information to be reported based on the way management organizes segments within a company for making operating decisions and evaluating performance.

Management has organized the Company around differences in geographic areas.

The Company has identified two reportable segments and reporting units for its theatrical exhibition operations, U.S.

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The International markets reportable segment has operations in or partial interest in theatres in the United Kingdom, Germany, Spain, Italy, Ireland, Portugal, Sweden, Finland, Norway, and Denmark.

The Company sold its interest in Saudi Arabia in January 2023.

See Note 5—Investments for further information.

Each segment’s revenue is derived from admissions, food and beverage sales and other ancillary revenues, primarily screen advertising, loyalty membership fees, ticket sales, gift card income and exchange ticket income.

The measure of segment profit and loss the Company uses to evaluate performance and allocate its resources is Adjusted EBITDA, as defined in the reconciliation table below.

During the three months ended September 30, 2024, the Company changed the definition of Adjusted EBITDA to no longer further adjust for “cash distributions from non-consolidated entities” and “other non-cash rent benefit.” All comparative period information for Adjusted EBITDA has been re-cast to conform with the current definition.

The measure of segment profit and loss the Company’s chief operating decision maker uses to evaluate performance and allocate resources is Adjusted EBITDA.

The Company defines Adjusted EBITDA as net earnings (loss) 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 the Company does not consider indicative of the Company’s ongoing operating performance and to include attributable EBITDA from equity investments in theatre operations in International markets.

During 2024, the Company changed the definition of Adjusted EBITDA to no longer further adjust for “cash distributions from non-consolidated entities” and “other non-cash rent benefit.” All comparative period information for Adjusted EBITDA has been re-cast to conform with the current definition.

The Company does not report asset information by segment because that information is not used to evaluate the performance of or allocate resources between segments.

Below is a breakdown of select financial information by reportable operating segment:

The following tables below provide reconciliation of segment revenues to Adjusted EBITDA:

Three Months Ended

Nine Months Ended

Revenues (In millions)

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

March 31, 2025

(In millions)

International Markets

Total revenues

Film exhibition costs

Food and beverage costs

Operating expense, excluding depreciation and amortization (2)

General and administrative expense - other, excluding depreciation and amortization (3)

Other segment items (4)

Adjusted EBITDA

Three Months Ended

Nine Months Ended

Adjusted EBITDA (In millions)

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

March 31, 2024

(In millions)

International Markets

Total Adjusted EBITDA (1)

(1) The Company presents Adjusted EBITDA as a supplemental measure of its performance.

The measure of segment profit and loss the Company uses to evaluate performance and allocate its resources is Adjusted EBITDA, which is broadly consistent with how Adjusted EBITDA is defined in the Company’s debt indentures.

Film exhibition costs

Food and beverage costs

Operating expense, excluding depreciation and amortization (2)

General and administrative expense - other, excluding depreciation and amortization (3)

Other segment items (4)

Adjusted EBITDA

(1) All segment revenues are comprised of revenues from external customers.

(2) Operating expense, excluding depreciation and amortization excludes certain expenses as further defined in the reconciliation of net loss to Adjusted EBITDA below.

(3) General and administrative expense—other, excluding depreciation and amortization excludes stock compensation expense.

(4) Other segment items include government assistance, business interruption insurance recoveries, net periodic cost (benefit), and attributable EBITDA from international theatre joint ventures.

Other segment disclosures:

Three Months Ended

Nine Months Ended

Capital Expenditures (In millions)

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

March 31, 2025

(In millions)

International Markets

Total capital expenditures

Long-term assets, net (In millions)

September 30, 2024

December 31, 2023

Depreciation and amortization

Income tax provision

Other significant noncash items:

Stock-based compensation expense

Equity in earnings of non-consolidated entities

Capital expenditures

Three Months Ended

March 31, 2024

(In millions)

International Markets

Total long-term assets (1)

(1) Long-term assets are comprised of property, net, operating lease right-of-use assets, intangible assets, goodwill, deferred tax assets, net and other long-term assets.

The following table sets forth a reconciliation of net earnings (loss) to Adjusted EBITDA:

Depreciation and amortization

Income tax provision

Other significant noncash items:

Stock-based compensation expense

Equity in earnings of non-consolidated entities

Capital expenditures

The following table sets forth a reconciliation of net loss to Adjusted EBITDA:

Three Months Ended

Nine Months Ended

(In millions)

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

Net earnings (loss)

Income tax provision (benefit) (1)

March 31, 2025

March 31, 2024

Income tax provision (1)

Interest expense

5 unchanged sentences

Other income (6)

General and administrative — unallocated:

Merger, acquisition and other costs (7)

2 unchanged sentences

(1) For information regarding the income tax provision, see Note 8—Income Taxes.

(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, 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 or are non-operating in nature.

(3) Equity in earnings of non-consolidated entities during the three months ended September 30, 2024 primarily consisted of equity in earnings from AC JV of $( 4.3 ) million.

Equity in earnings of non-consolidated entities during the three months ended September 30, 2023 primarily consisted of equity in earnings from AC JV of $( 1.5 ) million.

Equity in earnings of non-consolidated entities during the nine months ended September 30, 2024 primarily

consisted of equity in earnings from AC JV of $( 9.5 ) million.

Equity in earnings of non-consolidated entities during the nine months ended September 30, 2023 primarily consisted of equity in earnings from AC JV of $( 3.4 ) million.

(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 or related to theatres that are not open.

(3) Equity in earnings of non-consolidated entities during the three months ended March 31, 2025 primarily consisted of equity in earnings from AC JV of $( 0.8 ) million.

Equity in earnings of non-consolidated entities during the three months ended March 31, 2024 primarily consisted of equity in earnings from AC JV of $( 3.3 ) million.

(4) Attributable EBITDA includes the EBITDA from equity investments in theatre operators in certain International markets.

See below for a reconciliation of the Company’s equity in loss of non-consolidated entities to attributable EBITDA.

See below for a reconciliation of the Company’s equity in earnings of non-consolidated entities to attributable EBITDA.

Because these equity investments in theatre operators are 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 the Company’s gift card and package ticket program.

Three Months Ended

Nine Months Ended

(In millions)

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

March 31, 2025

March 31, 2024

Equity in (earnings) of non-consolidated entities

Equity in (earnings) of non-consolidated entities excluding International theatre joint ventures

Equity in earnings (loss) of International theatre joint ventures

Income tax provision (benefit)

Investment income

Interest expense

Equity in earnings of International theatre joint ventures

Investment expense

Depreciation and amortization

Other expense

Attributable EBITDA

(5) Investment income during the three months ended September 30, 2024 includes appreciation in the estimated fair value of the Company’s investment in common shares of Hycroft of $( 0.3 ) million, deterioration in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft of $ 1.7 million and interest income of $( 4.6 ) million.

Investment expense (income) during the three months ended September 30, 2023 included appreciation in estimated fair value of the Company’s investment in common shares of Hycroft of $( 0.1 ) million, deterioration in estimated fair value of the Company's investment in warrants to purchase common shares of Hycroft of $ 0.8 million, and interest income of $( 3.7 ) million.

Investment expense (income) during the nine months ended September 30, 2024 includes appreciation in estimated fair value of the Company’s investment in common shares of Hycroft of $( 0.2 ) million, deterioration in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft of $ 1.9 million, and interest income of $( 16.1 ) million.

Investment expense (income) during the nine months ended September 30, 2023 included deterioration in estimated fair value of the Company’s investment in common shares of Hycroft of $ 5.4 million, deterioration in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft of $ 5.4 million, $ 1.8 million of expense for NCM Common Units, $( 15.5 ) million gain on the sale of the Company’s investment in Saudi Cinema Company, LLC and interest income of $( 8.5 ) million.

(6) Other income during the three months ended September 30, 2024 includes shareholder litigation recoveries of $( 14.9 ) million, foreign currency transaction gains of $( 21.5 ) million, losses on debt extinguishment of $ 50.8 million, term loan modification third party fees of $ 41.0 million, and a decrease in fair value of the derivative liability for the embedded conversion feature in the Exchangeable Notes of $( 73.5 ) million.

Other expense (income) during the three months ended September 30, 2023 included a non-cash litigation contingency adjustment of $( 16.1 ) million, foreign currency transaction losses of $ 12.8 million, and gains on debt extinguishment of $( 10.8 ) million.

Other expense (income) during the nine months ended September 30, 2024 includes shareholder litigation recoveries of $( 34.0 ) million, gains on debt extinguishment of $( 40.3 ) million, term loan modification third party fees of $ 41.0 million, a vendor dispute settlement of $( 36.2 ) million, foreign currency transaction gains

of $( 18.9 ) million and a decrease in fair value of the derivative liability for the embedded conversion feature in the Exchangeable Notes of $( 73.5 ) million.

Other expense (income) during the nine months ended September 30, 2023 included a non-cash litigation contingency charge of $ 99.3 million, partially offset by gains on debt extinguishment of $( 97.5 ) million and foreign currency transaction gains of $( 3.2 ) million.

(5) Investment income during the three months ended March 31, 2025 includes interest income of $( 2.9 ) million, increases in the estimated fair value of the Company’s investment in common shares of Hycroft of $( 2.4 ) million, and increases in the estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft of $( 0.4 ) million.

Investment income during the three months ended March 31, 2024 included interest income of $( 6.1 ) million, partially offset by a decline in the estimated fair value of the Company’s investment in common shares of Hycroft of $ 0.5 million and a decline in the estimated fair value of the Company's investment in warrants to purchase common shares of Hycroft of $ 0.5 million.

(6) Other income during the three months ended March 31, 2025 includes a decrease in fair value of the derivative liability for the embedded conversion feature in the Exchangeable Notes of $( 45.1 ) million and foreign currency transaction gains of $( 13.0 ) million.

Other income during the three months ended March 31, 2024 included a vendor dispute settlement of $( 36.2 ) million and gains on debt extinguishment of $( 5.8 ) million, partially offset by foreign currency transaction losses of $ 3.2 million.

(7) Merger, acquisition and other costs are excluded as they are non-operating in nature.

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If an unfavorable outcome were to occur, there exists the possibility of a material adverse impact on the results of operations in the period in which the outcome occurs or in future periods.

An unfavorable outcome could also have a material adverse effect on our financial position or the market prices of our securities, including our Common Stock.

On April 22, 2019, a putative stockholder class and derivative complaint, captioned Lao v.

Dalian Wanda Group Co., Ltd.

, et al., C.A.

2019-0303-JRS (the “Lao Action”), was filed against certain of the Company’s directors, Wanda, two of Wanda’s affiliates, Silver Lake, and one of Silver Lake’s affiliates in the Delaware Court of Chancery.

The Lao Action asserted claims directly, on behalf of a putative class of Company stockholders, and derivatively, on behalf of the Company, for breaches of fiduciary duty and aiding and abetting breaches of fiduciary duty with respect to transactions that the Company entered into with affiliates of Wanda and Silver Lake on September 14, 2018, and the special cash dividend of $ 1.55 per share of Common Stock that was payable on September 28, 2018 to the Company’s stockholders of record as of September 25, 2018.

On June 6, 2022, the parties signed a stipulation of settlement to resolve the Lao Action for $ 17.4 million (the “Settlement Amount”).

Defendants agreed to the settlement and the payment of the Settlement Amount solely to eliminate the burden, expense, and uncertainty of further litigation, and continue to expressly deny any liability or wrongdoing with respect to the matters alleged in the Lao Action.

On November 30, 2022, the court issued an order and final judgment approving the settlement and dismissing the action.

The order and final judgment included a fee and expense award to plaintiff’s counsel in the amount of $ 3.4 million to be paid out of the Settlement Amount.

On January 6, 2023, the remainder of the Settlement Amount of $ 14.0 million was paid to the Company.

The Company recorded the settlement as a gain in other income during the nine months ended September 30, 2023.

An unfavorable outcome could also have a material adverse effect on the Company’s financial position or the market prices of the Company’s securities, including the Company’s Common Stock.

On February 20, 2023, two putative stockholder class actions were filed in the Delaware Court of Chancery, captioned Allegheny County Employees’ Retirement System v.

AMC Entertainment Holdings, Inc., et al., C.A No.

AMC Entertainment Holdings, Inc., et al., C.A.

2023-0215-MTZ (Del.

Ch.) (the “Allegheny Action”), and Munoz v Adam M.

Ch.) (the “Allegheny Action”), and Munoz v.

Aron, et al., C.A.

4 unchanged sentences

Ch.) (the “Shareholder Litigation”).

The Allegheny Action asserted a claim for breach of fiduciary duty against certain of the Company’s directors and a claim for breach of 8 Del.

§ 242 against those directors and the Company, arising out of the Company’s creation of the AMC Preferred Equity Units, the transactions between the Company and Antara that the Company announced on December 22, 2022 (the “Antara Transactions”), and certain amendments to the Company’s Third Amended and Restated Certificate of Incorporation to increase the Company’s total number of authorized shares of Common Stock and to effectuate a reverse stock split at a ratio of one share of Common Stock for every ten shares of Common Stock (together, the “Charter Amendments”).

The Allegheny Action asserted a claim for breach of fiduciary duty against certain of the Company’s directors at the time and a claim for breach of 8 Del.

§ 242 against those directors and the Company, arising out of the Company’s creation of the AMC Preferred Equity Units, the transactions between the Company and Antara that the Company announced on December 22, 2022, and certain amendments to the Company’s Third Amended and Restated Certificate of Incorporation to increase the Company’s total number of authorized shares of Common Stock and to effectuate a reverse stock split at a ratio of one share of Common Stock for every ten shares of Common Stock (together, the “Charter Amendments”).

The Munoz Action, which was filed by stockholders who had previously made demands to inspect certain of the Company’s books and records pursuant to 8 Del.

§ 220, asserted a claim for breach of fiduciary duty against the Company’s current directors and former director Lee Wittlinger, arising out of the same conduct challenged in the Allegheny Action.

§ 220, asserted a claim for breach of fiduciary duty against the Company’s directors at the time and former director Lee Wittlinger, arising out of the same conduct challenged in the Allegheny Action.

The Allegheny Action sought a declaration that the issuance of the AMC Preferred Equity Units violated 8 Del.

§ 242(b), an order that holders of the Company’s Common Stock be provided with a

separate vote from the holders of the AMC Preferred Equity Units on the Charter Amendments or that the AMC Preferred Equity Units be enjoined from voting on the Charter Amendments, and an award of money damages.

§ 242(b), an order that holders of the Company’s Common Stock be provided with a separate vote from the holders of the AMC Preferred Equity Units on the Charter Amendments or that the AMC Preferred Equity Units be enjoined from voting on the Charter Amendments, and an award of money damages.

The Munoz Action sought to enjoin the AMC Preferred Equity Units from voting on the Charter Amendments.

On February 27, 2023, the Delaware Court of Chancery entered a status quo order that allowed the March 14, 2023 vote on the Charter Amendments to proceed, but precluded the Company from implementing the Charter Amendments pending a ruling by the court on the plaintiffs’ then-anticipated preliminary injunction motion (the “Status Quo Order”).

On April 2, 2023, the parties entered into a binding settlement term sheet to settle the Shareholder Litigation, which among other things, provided that the parties would jointly request that the Status Quo Order be lifted.

On April 2, 2023, the parties entered into a binding settlement term sheet to settle the Shareholder Litigation.

Pursuant to the term sheet, the Company agreed, following and subject to AMC’s completion of the Conversion and Reverse Stock Split, to make a non-cash settlement payment to record holders of Common Stock immediately prior to the Conversion (and after giving effect to the Reverse Stock Split) of one share of Common Stock for every 7.5 shares of Common Stock owned by such record holders (the “Settlement Payment”).

The Company’s obligation to make the Settlement Payment was contingent on the Status Quo Order being lifted and the Company effecting the Charter Amendments.

The defendants agreed to the settlement and the payment of the Settlement Payment solely to eliminate the burden, expense, and uncertainty of further litigation, and continue to expressly deny any liability or wrongdoing with respect to the matters alleged in the Shareholder Litigation.

On April 3, 2023, the plaintiffs filed an unopposed motion to lift the Status Quo Order.

On April 5, 2023, the court denied the motion to lift the Status Quo Order.

On April 27, 2023, the parties jointly filed a Stipulation and Agreement of Compromise, Settlement, and Release (the “Settlement Stipulation”) with the court, which fully memorialized the settlement that the parties agreed to in the term sheet.

On June 29–30, 2023, the court held a settlement hearing to consider whether to approve the settlement as outlined in the Settlement Stipulation.

On July 21, 2023, the court issued an opinion which, citing issues with the scope of the release sought under the proposed settlement, declined to approve the settlement as presented.

On July 22, 2023, the parties filed an addendum to the Settlement Stipulation in an effort to address the issues with the scope of the release raised by the court and requested that the court approve the settlement with the revised release set forth in the addendum.

On August 11, 2023, the court approved the settlement of the Shareholder Litigation and lifted the Status Quo Order.

The Company’s obligation to make the Settlement Payment was contingent on the Company effecting the Charter Amendments.

On August 11, 2023, the court approved the settlement of the Shareholder Litigation.

On August 14, 2023, the Company filed the amendment to its Third Amended and Restated Certificate of Incorporation, effective as of August 24, 2023, which was previously approved by the Company’s stockholders at the special meeting held on March 14, 2023 to implement the Charter Amendments.

3 unchanged sentences

On May 22, 2024, the Delaware Supreme Court affirmed the court’s decision approving the settlement of the Shareholder Litigation.

On August 20, 2024, the appellant stockholder filed a petition for a writ of certiorari with the United States Supreme Court, which was denied on October 7, 2024.

In connection with the Shareholder Litigation, the Company recorded a $ 110.1 million charge to other expense during the nine months ended September 30, 2023.

The charge was based on the fair value for the Settlement Payment of $ 99.3 million and legal fees, net of probable insurance recoveries of $ 10.8 million as of September 30, 2023.

The Company made the Settlement Payment on August 28, 2023, and recorded the disbursement to stockholders’ deficit.

On August 14, 2023, a putative class action on behalf of APE holders, captioned Simons v.

On August 20, 2024, the purported stockholder who appealed to the Delaware Supreme Court filed a petition for a writ of certiorari with the United States Supreme Court, which was denied on October 7, 2024.

On August 14, 2023, a putative class action on behalf of holders of AMC Preferred Equity Units, captioned Simons v.

AMC Entertainment Holdings, Inc.

2023-0835-MTZ (the “Simons Action”), was filed against the Company in the Delaware Court of Chancery.

The Simons Action asserted claims for a declaratory judgment, injunctive relief, and breach of contract, and alleged that the Settlement Payment in the Shareholder Litigation violates the Certificate of Designations that governed the AMC Preferred Equity Units prior to the conversion of the AMC Preferred Equity Units into Common Stock.

The Simons Action asserted claims for a declaratory judgment, injunctive relief, and breach of contract, and alleged that the Settlement Payment in the Shareholder Litigation violated the Certificate of Designations that governed the AMC Preferred Equity Units prior to the conversion of the AMC Preferred Equity Units into Common Stock.

On September 12, 2023, the Company filed a motion to dismiss the complaint.

1 unchanged sentence

On February 16, 2024, the Company filed a motion to dismiss the amended complaint.

On October 2, 2024, the court granted the Company’s motion, dismissing the amended complaint with prejudice.

On October 30, 2024, the plaintiff filed a notice of appeal with the Delaware Supreme Court.

On October 2, 2024, the court granted the Company’s motion to dismiss, and dismissed the amended complaint with prejudice.

On October 30, 2024, the plaintiff filed a notice of appeal in the Delaware Supreme Court.

On April 30, 2025, the Delaware Supreme Court heard argument on the appeal and took the matter under advisement.

On May 4, 2023, the Company filed a lawsuit in the Superior Court of the State of Delaware against seventeen insurers participating in its directors & officers insurance program, seeking recovery for losses incurred in connection with its defense and settlement of the Shareholder Litigation, including the Settlement Payment.

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May 4, 2023) (the “Coverage Action”).

In the suit, AMC seeks up to $ 80 million in coverage under its Executive and Corporate Securities Liability Insurance Policies sold by the defendants, which provide coverage for the policy period of January 1, 2022, through January 1, 2023 (the “Policies”) in excess of a $ 10 million deductible.

The primary insurer in the Coverage Action has paid its full $ 5 million limit.

The Company has reached confidential settlement agreements with multiple insurers in the Coverage Action.

The remainder of the insurers contest whether they owe coverage for the Settlement Payment, claiming it does not constitute a “Loss” under their insurance policies.

AMC may have claims for coverage from additional insurers as well, however, those insurers’ policies contain mandatory arbitration provisions, so they have not been included in the Coverage Action.

On October 6, 2023, an action captioned Mathew, et al.

Citigroup Global Markets, et al.

1:23-cv-12302-FDS (the “Mathew Action”), was filed in the U.S.

District Court for the District of Massachusetts.

The Mathew Action named the Company as a nominal defendant.

On November 16, 2023, plaintiffs filed an amended complaint.

On January 9, 2024, the Company filed a motion to dismiss the amended complaint.

On January 11, 2024, plaintiffs filed a motion for leave to file a second amended complaint.

On January 24, 2024, the Company filed an opposition to plaintiff’s motion for leave to file a second amended complaint.

On June 17, 2024, the court granted the Company’s motion to dismiss and denied plaintiffs’ motion for leave to file a second amended complaint.

On December 18, 2023, an action captioned Miller, et al.

AMC Entertainment Holdings, Inc.

2023-1259-LM (Del.

Ch.) (the “Miller Action”), was filed against the Company and two of its officers in the Delaware Court of Chancery.

Plaintiffs in the Miller Action sought to inspect certain of the Company’s books and records pursuant to 8 Del.

§ 220 in order to investigate allegations concerning alleged manipulation of the Company’s Common Stock.

On February 7, 2024, the parties filed a stipulation dismissing the Company’s two officers from the action.

On April 17, 2024, the parties filed a stipulation dismissing the Miller Action with prejudice.

On May 2, 2024, the United States District Court for the Southern District of New York issued an order granting final approval of a proposed settlement reached by all parties to an action brought by plaintiffs Dennis J.

Donoghue and Mark Rubenstein, each of whom are shareholders of the Company, for the Company to recover “short-swing” profits under Section 16(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) alleged to have been realized by defendants Antara Capital Master Fund LP, Antara Capital Fund GP LLC, Antara Capital LP, Antara Capital GP LLC, and Himanshu Gulati (collectively, the “Antara Defendants”) in connection with their purchases and sales of the Company’s securities.

The Company is party to the suit in name only, which was brought for the benefit of the Company.

The Company received $ 2.6 million in connection with this action during the nine months ended September 30, 2024.

The primary insurer in the Coverage Action has paid its full $ 5.0 million limit.

The Company has reached confidential settlement agreements with all but one insurer in the Coverage Action.

The remaining insurer contested whether it owed coverage for the Settlement Payment, claiming it does not constitute a “Loss” under its insurance policy.

On February 28, 2025, the court denied a motion for summary judgment by the remaining insurer in the Coverage Action.

Additionally, the court partially granted the Company’s motion for summary judgment, ruling that the Settlement Payment constituted a covered loss, but that genuine issues of material fact existed for trial regarding whether AMC complied with the consent provisions of the Policies in connection with the Settlement Payment (the “Consent Defense”).

Subsequently, pursuant to a joint stipulated order entered by the court on March 9, 2025, the remaining insurer withdrew its Consent Defense (but preserved its Loss Defense for appeal) and on April 9, 2025, the court entered a final judgment in favor of the Company.

On September 17, 2024, an action captioned A Holdings – B LLC, et al.

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654878/2024 (the “Noteholder Action”), was filed in the Supreme Court of the State of New York.

The Noteholder Action was filed by an ad hoc group of holders of the Company’s Existing First Lien Notes asserting claims for breach of contract and seeking a declaratory judgment against the Company and GLAS Trust Company LLC (“GLAS”), the trustee under the indenture for the Company’s Second Lien Notes, in connection with the Refinancing Transactions announced by AMC on July 22, 2024.

The Noteholder Action was filed by an ad hoc group of holders of the Company’s Existing First Lien Notes asserting claims for breach of contract and seeking a declaratory judgment against the Company and GLAS Trust Company LLC (“GLAS”), the trustee under the indenture for the Company’s Second Lien Notes (as defined herein), in connection with the Refinancing Transactions announced by AMC on July 22, 2024.

Plaintiffs allege that GLAS and the Company breached the first lien/second lien intercreditor agreement dated July 31, 2020 (the “Intercreditor Agreement”) by improperly transferring collateral that secured the Existing First Lien Notes free of such liens and eliminating the Existing First Lien Notes’ priority in certain other collateral in connection with the Refinancing Transactions.

An unfavorable outcome, in which it is determined that the Company breached, as claimed, the Intercreditor Agreement, would permit note holders to claim an event of default occurred under the indenture governing the Existing First Lien Notes and, subject to any conditions in the indenture, permit note holders to accelerate the Existing First Lien Notes, which could in turn result in the acceleration of the Company’s other outstanding debt.

An unfavorable outcome, in which it is determined that the Company breached, as claimed, the Intercreditor Agreement, would permit noteholders to claim an event of default occurred under the indenture governing the Existing First Lien Notes and, subject to any conditions in the indenture, permit noteholders to accelerate the Existing First Lien Notes, which could in turn result in the acceleration of the Company’s other outstanding debt.

Such an event would thereby have a material adverse effect on our business, financial condition and results of operations and on the market prices of our securities, including our Common Stock.

We intend to vigorously defend against any claims made in the Noteholder Action.

NOTE 12—EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing net earnings (loss) by the weighted-average number of common shares outstanding.

Diluted earnings (loss) per share includes the effects of unvested RSUs with a service condition only, unvested contingently issuable PSUs that have service and performance conditions, and shares issuable upon conversion of the Exchangeable Notes, if dilutive.

Diluted earnings per share is computed using the treasury stock method for the RSUs and PSUs and the if-converted method for the Exchangeable Notes.

The following table sets forth the computation of basic and diluted earnings (loss) per common share:

On November 20, 2024, the Company filed a motion to dismiss the complaint, which is fully briefed and scheduled for oral argument on June 26, 2025.

NOTE 12—LOSS PER SHARE

Basic loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding.

Diluted loss per share includes the effects of unvested RSUs with a service condition only, unvested contingently issuable PSUs that have service and performance conditions, and shares issuable upon conversion of the Exchangeable Notes, if dilutive.

Diluted loss per share is computed using the treasury stock method for the RSUs and PSUs and the if-converted method for the Exchangeable Notes.

The following table sets forth the computation of basic and diluted loss per common share:

Three Months Ended

Nine Months Ended

(In millions)

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

Net earnings (loss) for basic and diluted earnings (loss) per share

March 31, 2025

March 31, 2024

Net loss for basic and diluted loss per share

Denominator (shares in thousands):

Weighted average shares for basic loss per common share

Common equivalent shares for RSUs and PSUs

Weighted average shares for diluted earnings (loss) per common share

Basic earnings (loss) per common share

Diluted earnings (loss) per common share

Vested RSUs and PSUs have dividend rights identical to the Company’s Common Stock and are treated as outstanding shares for purposes of computing basic and diluted earnings (loss) per share.

Unvested RSUs of 2,594,497 for each of the three and nine months ended September 30, 2024 were not included in the computation of diluted earnings (loss) per share because they would be anti-dilutive.

Unvested RSUs of 467,353 and 548,419 for the three and nine months ended September 30, 2023, respectively, were not included in the computation of diluted earnings (loss) per share because they would be anti-dilutive.

Unvested PSUs are subject to performance conditions and are included in diluted earnings (loss) per share, if dilutive, based on the number of shares, if any, that would be issuable under the terms of the award agreements if the end of the reporting period were the end of the contingency period.

Unvested PSUs of 1,403,682 for each of the three and nine months ended September 30, 2024 were not included in the computation of diluted earnings (loss) per share because they would not be issuable if the end of the reporting period were the end of the contingency period or they would be anti-dilutive.

Unvested PSUs of 192,052 and 294,251 at certain performance targets for the three and nine months ended September 30, 2023, respectively, were not included in the computation of diluted loss per share because they would not be issuable if the end of the reporting period were the end of the contingency period or they would be anti-dilutive.

The Company has excluded approximately 82.6 million shares issuable upon conversion of the Exchangeable Notes and related Exchange Adjustment Consideration from the computation of diluted earnings (loss) per share for the three and nine months ended September 30, 2024, respectively, because they would be anti-dilutive.

Weighted average shares for basic and diluted loss per common share

Basic and diluted loss per common share

Vested RSUs and PSUs have dividend rights identical to the Company’s Common Stock and are treated as outstanding shares for purposes of computing basic and diluted loss per share.

Unvested RSUs of 4,560,303 for the three months ended March 31, 2025 were not included in the computation of diluted loss per share because the RSUs would be anti-dilutive.

Unvested RSUs of 271,738 for the three months ended March 31, 2024 were not included in the computation of diluted loss per share because the RSUs would be anti-

Unvested PSUs are subject to performance conditions and are included in diluted loss per share, if dilutive, based on the number of shares, if any, that would be issuable under the terms of the award agreements if the end of the reporting period were the end of the contingency period.

Unvested PSUs of 2,093,154 at certain performance targets for the three months ended March 31, 2025 were not included in the computation of diluted loss per share because they would not be issuable if the end of the reporting period were the end of the contingency period or they would be anti-dilutive.

Unvested PSUs of 149,080 at certain performance targets for the three months ended March 31, 2024 were not included in the computation of diluted loss per share because they would not be issuable if the end of the reporting period were the end of the contingency period or they would be anti-dilutive.

The Company has excluded approximately 85.2 million shares issuable upon conversion of the Exchangeable Notes and related Exchange Adjustment Consideration from the computation of diluted loss per share for the three months ended March 31, 2025 because the issuable shares would be anti-dilutive.

NOTE 13 —SUBSEQUENT EVENTS

Debt Exchanges.

The below table summarizes the debt for equity exchanges that occurred after September 30, 2024:

Aggregate Principal

Reacquisition

(Gain)/Loss on

Accrued Interest

(In millions, except for share data)

Extinguishment

Second Lien Notes due 2026

5.75 % Senior Subordinated Notes due 2025 (1)

(1) The principal amount of the 5.75 % Senior Subordinated Notes due 2025 exchanged for equity is included in long-term liabilities in the condensed consolidated balance sheet as of September 30, 2024.

The total carrying value of the debt extinguished in the above transactions was $ 48.4 million.

NCM Bankruptcy .

On April 11, 2023, National CineMedia, LLC (“NCM”) filed a petition under Chapter 11 of the U.S.

Bankruptcy Code in the Southern District of Texas.

The Chapter 11 plan of reorganization became effective on August 7, 2023 (the “Plan”).

The Company appealed certain terms of the Plan and rulings of the bankruptcy court with the United States District Court for the Southern District of Texas, which affirmed the rulings of the bankruptcy court, and subsequently with the United States Court of Appeals for the Fifth Circuit.

On April 17, 2025, NCM and the Company reached an agreement to, among other things, dismiss with prejudice the ongoing litigation between the parties.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements