Blog Coverage AMC Entertainment Holdings Announced a Total of 175 IMAX Across AMC's Locations
ACCESS Newswire
LONDON, UK / ACCESSWIRE / January 23, 2017 / Active Wall St. blog coverage looks at the headline from AMC Entertainment Holdings Inc. (NYSE: AMC) ("AMC Theatres") and IMAX Corp. (NYSE: IMAX) as both Companies announced on January 19, 2017, that the number of IMAX at AMC's locations is expected to grow 15% on a y-o-y basis by the end of Q1 2017. A total number of 175 locations are expected to be open by March 2017. The expansion will be accretive to the Company's current commitment to IMAX of 185 theatres through 2019. Register with us now for your free membership and blog access at:
AMC recently acquired Carmike Cinemas Inc. and hence added several IMAX's locations to its portfolio. Additionally, it opened the AMC's Flatiron Crossing 14 in Denver area. With the execution of this announcement, AMC will establish itself as the largest exhibitor of IMAX screens in North America. AMC is now the leading theater exhibitor in the US, Europe, and the world, where it operates about 900 theaters across 10,000 screens globally. In the US, AMC operates 661 theaters with more than 8,200 screens.
For the past year, AMC has initiated renovation and up gradation of IMAX facilities around the country with sound and seating enchantments and redesigned entryways with auditorium branding. IMAX views this announcement as an accretion to the 2017 blockbusters line-up.
AMC-Carmike deal
AMC executed the acquisition of Carmike for approximately $1.1 billion. Carmike's stockholders received $33.06 in cash, or 1.0819 AMC's shares for each Carmike's share. The deal was completed with an overall allocation of 70% of Carmike's shares exchanged for cash and 30% exchanged for AMC's shares. The acquisition of Carmike was observed closely after the acquisition of Odeon & UCI Cinemas for $1.2 billion in cash.
The acquisition of Carmike and Odeon raised the theatrical footprint of AMC to about 900 locations through approximately 242 theaters from Odeon and another 273 from Carmike where the initial count for theatres under AMC stood at 388. This deal brought the urban-centric chain, i.e. AMC, focus on the Carmike's lower-cost multiplexes in rural parts of the nation.
IMAX expansion strategy
IMAX, the leading entertainment technology firm, has recently aimed at developing its presence across multiple nations. Recently, it announced the expansion of the existing joint venture on January 06, 2017, with Regal Entertainment Group (NYSE:RGC), where an additional 11 IMAX theaters would be installed bringing the net tally under Regal to 100. Additionally, the subsidiary, IMAX China Holding, Inc., announced an agreement on December 01, 2016, with Shanghai Film Corporation and SFC-Bailian Cinema Management Co., Ltd (SFC-Bailian) for three new IMAX® theaters in China.
Additionally, on October 19, 2016, IMAX and Warner Bros. Pictures (NYSE:TWX) announced a multi-picture worldwide agreement including up to 12 new films as an extension of the partnership between the two firms. IMAX has aimed at installation and development of its theaters across multiple locations, and this deal with AMC is set to strengthen its presence in the US multiplex industry.
Stock Performance
Last Friday, January 20, 2017, at the closing bell, the stock closed the trading session at $34.30, climbing 1.18% from its previous closing price of $33.90. A total volume of 320.66 thousand shares have exchanged hands. AMC Entertainment's stock price advanced 9.36% in the last three months, 15.46% in the past six months, and 75.03% in the previous twelve months. The stock is trading at a PE ratio of 27.09 and has a dividend yield of 2.33%. The net market capital for the firm stood at $3.46 billion.
At the closing bell, on Friday, IMAX's stock was slightly up 0.95%, ending the trading session at $31.95. A total volume of 316.85 thousand shares were traded at the end of the day. In the last month and previous three months, shares of the Company have advanced 2.57% and 4.96%, respectively. Moreover, the stock gained 1.75% since the start of the year. The stock currently has a market cap of $2.12 billion and the P/E ratio was 52.90.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below. AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
