AMC is off to a good start in 2015, CEO says

“American Sniper,” “The SpongeBob Movie: Sponge Out of Water” and “Fifty Shades of Grey” have gotten AMC Theatres off to a good start this year, the Leawood-based chain’s chief executive said Tuesday.

After AMC released its fourth quarter and annual results and reported weak attendance at its theaters in 2014, Gerry Lopez, head of AMC Entertainment Holdings, said the company expects a strong box office this year.

“It’s not just that those three movies are doing really well, it’s the fact that those movies appeal to very different segments of the audience,” Lopez said.

AMC also expects to benefit more from the box office rebound because of its innovations installed during the sluggish year that recently ended. More of its theaters have leather recliners, bars, dine-in service, expanded concessions and other changes to the “customer experience.”

“Now, when the big movies begin to come out, No. 1, the theater is ready for the audience,” Lopez said. “No. 2, hopefully, the audience has been there once.”

These changes already helped AMC weather last year’s relatively poor movie output.

Revenues for all of 2014 totaled $2.7 billion, down from $2.75 billion in 2013. Sales were $712.2 million in October, November and December, compared with $713 million in 2013. AMC’s average ticket price was slightly lower than a year earlier.

The chain, however, got a boost from customers’ food and beverage purchases. AMC said the average customer spent 13.5 percent more on concessions in the fourth quarter thanks to all the upgrades.

The upgraded theaters, which total 53 in the chain, saw a 13.8 percent increase in admissions per screen in the quarter despite an industry average decline of 4.3 percent, AMC said.

Summarizing the year, Lopez said: “The box office was a drag. We did all right.”

Profits for the year were $64.1 million, including $29.8 million in the fourth quarter. A year ago, AMC’s profit had been bloated by a one-time tax benefit to $364.4 million, including fourth-quarter earnings of $279.6 million that included the tax benefit.

During a conference call with analysts, Lopez talked about other innovations in the works.

The chain is testing movie subscriptions in Boston and Denver: One price buys access to a movie a day for a month. Lopez, without talking specifics, said the pilot had been well received.

AMC also is trying crowdsourcing, for example with a Best Picture Showcase theme. It works with an online site to propose showing all the movies nominated for the best picture Oscar back to back at a select theater and waits for interested guests to sign up.

The crowdsourcing idea means the company can draw moviegoers without committing to the screening in advance. More to the point, according to Lopez, it makes customers feel empowered and engaged with the company.

It worked recently in a Boston area theater “in spite of the weather,” Lopez said. “To us that’s the power of engagement.”

This story was originally published February 17, 2015 at 3:35 PM with the headline "AMC is off to a good start in 2015, CEO says."