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Adam Aron, CEO of the nation’s largest movie theater chain AMC Theatres, refuses to hide his optimism.
After a wild year of bankruptcy speculation, debt repayment extensions, revised credit ratings and a few billion dollars in box office earnings, the eternal theatrical optimist was ready to celebrate at Variety‘s annual Entertainment and Technology Summit in West Hollywood on Thursday.
“I’m a relieved human being,” said Aron during his keynote conversation at the thought leadership conference sponsored by City National Bank, referring to the five-year extension he won from lenders this summer. “In July, we were able to announce that we’d worked agreements with 150 different lending institutions that will refinance most of our long-term debt and push our maturities.”
AMC’s credit rating was raised by S&P Global in August, but analysts are still wary of the economic headwinds facing the movie theater business – and the $4.5 billion in long-term debt that Aron’s shop is carrying.
“Maybe the most important thing we did was negotiate hard with our lenders that in 2026 … if the circumstances are right we can refinance all this debt yet again, pushing it out further than 2030,” he added. Acknowledging his financial roller coaster and survival against many odds, Aron referenced a joke that IMAX CEO Rich Gelfond often tells about his chain’s management team. “He’s sure that Harry Houdini works at AMC,” Aron said of Gelfond.
Speaking of magic, Aron touted some silver linings. Box office earnings this year from June to September more than doubled the numbers of the preceding 5 months — from $1.5 billion to $3.5 billion, he said. This, as has widely been reported, was thanks to the runaway success of Disney’s record-smashing “Inside Out 2” and the Marvel’s “Deadpool & Wolverine.”
“I can tell you with such confidence that the combination of resolving our balance sheet with a rising box office means rising profitability,” he said. “We get to play on offense again. Our industry has been playing on defense for four and a half years.” The executive referred to the debilitating COVID-19 crisis followed quickly by dual Hollywood labor strikes which shut down film productions.
Variety also asked Aron about a mid-September story that made international headlines and stirred up commentary on X. It was the announcement that eight of North America’s largest theater chains, including AMC, will invest $2.2 billion in physical theater improvements — including premium projection, sound and additional amusements like bowling lanes. Social media users quickly turned the idea of zip-lining adventures at theaters into memes and jokes.
But cutting-edge equipment, upgraded seats and food and beverage equipment will see the lions share of the investments, he said.
“Very quietly, AMC invested $100 million in putting Coke Freestyle machines in all of our theaters. Why? Because they have 140 flavors. That beats having only eight choices,” he said.
Variety pointed out the 140 flavors equalled more potential calories.
“Try the diet Barq’s root beer,” Aron responded.
English (US) ·