Boxoffice - July 2019

elieve the changes to implied leverage ratios and
EBITDA valuation multiples within the various
financial databases have caused confusion … which
would falsely indicate an adverse change in AMC’s
leverage and liquidity situation (although nothing
has actually changed).
“In our opinion, AMC remains well positioned
to benefit from a strong underlying box office environment,
with the successful launch of the Stubs
A-List subscription program not only providing an
incremental margin tailwind, but improving visibility
into recurring revenues that can help to offset
normal seasonal/film-slate volatility,” he added.
Wold reiterated his buy rating and left the
company price target unchanged at $20. He also
pointed out that at the time of his report (June 6,
2019), shares were also sporting an attractive 6.7
percent annual dividend yield.
>> Among the recent (future) film-slate changes
causing concern for 2020 full-year industry box
office projections is DISNEY’S (DIS) pushing the
projected release date of Avatar 2 from December
18, 2020, to December 17, 2021.
The original blockbuster Avatar, which grossed
all-time-record global box office receipts of approximately
$2.8 billion, first graced domestic theater
screens back in December 2009. The highly anticipated
sequel release date already has been pushed
back several times, with the move to calendar 2021
representing the latest delay.
For folks keeping score at home and those planning
their long-range moviegoing calendars, Avatar
3 currently has a release date of December 22,
2023, Avatar 4 has a projected date of December
19, 2025, and Avatar 5 is expected to hit multiplexes
two years later, on December 17, 2027.
>> LIONSGATE ENTERTAINMENT (LGF) recently
sold the 2020 streaming and linear rights for its
theatrical titles to two properties controlled by
Disney, Hulu (OTT streaming channel acquired
from Comcast) and FX, a cable channel that was
purchased from Fox Corporation (Fox) in the $71
billion-plus blockbuster transaction that closed
earlier this year.
Rob Rinderman is an
avid follower and fan
of the cinema and
exhibition businesses.
He has assisted many
public and privately
held companies with
communications and
business development
consulting services for
over two decades and
written as a freelance
journalist covering these
industries since 2015.
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