AMC theater president Adam Aron projects a “bright future” for movie theaters

Adam Aron, CEO of the largest cinema chain in the country, AMC Theaters, does not hide his optimism.

After a wild year of bankruptcy speculation, debt extensions, improved credit ratings and several billion dollars in box office profits, the eternal theater optimist was ready to celebrate at Diversityannual Entertainment and Technology Summit on Thursday in West Hollywood.

“I’m relieved,” Aron said during his keynote talk at a thought leadership conference sponsored by City National Bank, referring to the five-year repayment extension he won from lenders this summer. “In July, we were able to announce that we had developed agreements with 150 different lending institutions that would refinance most of our long-term debt and postpone maturities.”

In August, S&P Global upgraded AMC’s credit rating, but analysts remain concerned about the economic difficulties facing the movie theater business and Arona’s long-term debt of $4.5 billion.

“Perhaps the most important thing we did was negotiate hard with our lenders that in 2026… if the circumstances are right, we will be able to refinance all of that debt again, pushing it further than 2030.” – he added. Acknowledging his financial rollercoaster and survival against many odds, Aron referenced a joke IMAX CEO Rich Gelfond often tells about his network’s management team. “He’s sure Harry Houdini works at AMC,” Aron said of Gelfond.

Speaking of magic, Aron touted some positive aspects. Box office revenue this year from June to September more than doubled from the previous five months – from $1.5 billion to $3.5 billion, he said. As has been widely reported, this was made possible by the huge success of Disney’s record-breaking “Inside Out 2” and Marvel’s “Deadpool and Wolverine.”

“I can say with certainty that the combination of the resolution of our balance sheet and the increase in ticket sales means an increase in profitability,” he said. – We’re playing attack again. Our industry has been playing defense for four and a half years. The executive was referring to the devastating Covid-19 crisis, which was quickly followed by twin workers’ strikes in Hollywood that brought film productions to a halt.

Diversity also asked Aron about a mid-September story that made headlines around the world and sparked comments on the X. It was the announcement that eight of the largest theater chains in North America, including AMC, would invest $2.2 billion in theater improvements physical – including premium projections, sound and additional entertainment such as bowling lanes. Social media users quickly turned the idea of ​​zipline adventures in movie theaters into memes and jokes.

But state-of-the-art equipment, improved seating and food and beverage equipment will account for the lion’s share of the investment, he said.

“AMC has quietly invested $100 million to place Coca-Cola Freestyle vending machines in all of our theaters. Why? Because they have 140 flavors. “It’s better than having only eight choices,” he said.

Diversity noted that 140 flavors mean more potential calories.

“Try Barq Diet Root Beer,” Aron replied.