| Reconciliation of Revenue from Segments to Consolidated |
| | | | | | | | | | | | Year Ended | | | December 31, 2024 | (In millions) | | U.S. Markets | | International Markets | | Consolidated | Revenues (1) | | $ | 3,544.2 | | $ | 1,093.0 | | $ | 4,637.2 | Less: | | | | | | | | | | Film exhibition costs | | | 988.8 | | | 250.4 | | | 1,239.2 | Food and beverage costs | | | 225.7 | | | 79.9 | | | 305.6 | Operating expense, excluding depreciation and amortization (2) | | | 1,249.0 | | | 425.0 | | | 1,674.0 | Rent | | | 649.9 | | | 223.7 | | | 873.6 | General and administrative expense - other, excluding depreciation and amortization (3) | | | 130.6 | | | 74.2 | | | 204.8 | Other segment items (4) | | | (1.3) | | | (2.6) | | | (3.9) | Adjusted EBITDA | | $ | 301.5 | | $ | 42.4 | | $ | 343.9 |
| | | | | | | | | | | | Year Ended | | | December 31, 2023 | (In millions) | | U.S. Markets | | International Markets | | Consolidated | Revenues (1) | | $ | 3,688.7 | | $ | 1,123.9 | | $ | 4,812.6 | Less: | | | | | | | | | | Film exhibition costs | | | 1,023.3 | | | 267.8 | | | 1,291.1 | Food and beverage costs | | | 233.9 | | | 81.4 | | | 315.3 | Operating expense, excluding depreciation and amortization (2) | | | 1,261.8 | | | 427.2 | | | 1,689.0 | Rent | | | 651.5 | | | 222.0 | | | 873.5 | General and administrative expense - other, excluding depreciation and amortization (3) | | | 130.9 | | | 68.5 | | | 199.4 | Other segment items (4) | | | (3.8) | | | (6.2) | | | (10.0) | Adjusted EBITDA | | $ | 391.1 | | $ | 63.2 | | $ | 454.3 |
| | | | | | | | | | | | Year Ended | | | December 31, 2022 | (In millions) | | U.S. Markets | | International Markets | | Consolidated | Revenues (1) | | $ | 2,961.7 | | $ | 949.7 | | $ | 3,911.4 | Less: | | | | | | | | | | Film exhibition costs | | | 831.4 | | | 220.3 | | | 1,051.7 | Food and beverage costs | | | 165.1 | | | 63.5 | | | 228.6 | Operating expense, excluding depreciation and amortization (2) | | | 1,101.9 | | | 418.5 | | | 1,520.4 | Rent | | | 666.5 | | | 219.7 | | | 886.2 | General and administrative expense - other, excluding depreciation and amortization (3) | | | 122.1 | | | 62.9 | | | 185.0 | Other segment items (4) | | | (3.8) | | | (23.3) | | | (27.1) | Adjusted EBITDA | | $ | 78.5 | | $ | (11.9) | | $ | 66.6 |
| (1) | All segment revenues are comprised of revenues from external customers. |
| (2) | Operating expense, excluding depreciation and amortization excludes certain operating expenses as further defined in the reconciliation of net loss to Adjusted EBITDA below. |
| (3) | General and administrative expense – other, excluding depreciation and amortization excludes stock compensation expense. |
| (4) | Other segment items include government assistance, business interruption insurance recoveries, net periodic pension cost (benefit), and attributable EBITDA from international theatre joint ventures. |
|
| Schedule of reconciliation of net earnings to Adjusted EBITDA |
The following table sets forth a reconciliation of net loss to Adjusted EBITDA: | | | | | | | | | | | | Year Ended | (In millions) | | December 31, 2024 | | December 31, 2023 | | December 31, 2022 | Net loss | | $ | (352.6) | | $ | (396.6) | | $ | (973.6) | Plus: | | | | | | | | | | Income tax provision (1) | | | 2.1 | | | 3.4 | | | 2.5 | Interest expense | | | 443.7 | | | 411.2 | | | 378.7 | Depreciation and amortization | | | 319.5 | | | 365.0 | | | 396.0 | Impairment of long-lived assets (2) | | | 72.3 | | | 106.9 | | | 133.1 | Certain operating expense (3) | | | 5.4 | | | 2.5 | | | 8.0 | Equity in (earnings) loss of non-consolidated entities (4) | | | (12.4) | | | (7.7) | | | 1.6 | Attributable EBITDA (5) | | | 1.9 | | | 2.2 | | | 0.4 | Investment expense (income) (6) | | | (16.3) | | | (15.5) | | | 14.9 | Other expense (income) (7) | | | (141.8) | | | (61.3) | | | 80.4 | Merger, acquisition and other costs (8) | | | 0.1 | | | 1.7 | | | 2.1 | Stock-based compensation expense (9) | | | 22.0 | | | 42.5 | | | 22.5 | Adjusted EBITDA | | $ | 343.9 | | $ | 454.3 | | $ | 66.6 |
| (1) | For information regarding the income tax provision (benefit), see Note 10—Income Taxes. |
| (2) | During the year ended December 31, 2024, the Company recorded non-cash impairment charges related to its long-lived assets of $51.9 million on 39 theatres in the U.S. markets with 469 screens which were related to property, net and operating lease right-of-use assets, net and $20.4 million on 23 theatres in the International markets with 188 screens which were related to property, net and operating lease right-of-use assets, net. |
During the year ended December 31, 2023, the Company recorded non-cash impairment charges related to its long-lived assets of $49.2 million on 68 theatres in the U.S. markets with 738 screens which were related to property, net and operating lease right-of-use assets, net and $57.7 million on 57 theatres in the International markets with 488 screens which were related to property, net and operating lease right-of-use assets, net. During the year ended December 31, 2022, the Company recorded non-cash impairment charges related to its long-lived assets of $73.4 million on 68 theatres in the U.S. markets with 817 screens which were related to property, net and operating lease right-of-use assets, net and $59.7 million on 53 theatres in the International markets with 456 screens which were related to property, net and operating lease right-of-use assets, net. | (3) | Amounts represent preopening expense related to temporarily closed screens under renovation, theatre and other closure expense for the permanent closure of screens, including the related accretion of interest, disposition of assets, and other non-operating gains or losses included in operating expenses. The Company has excluded these items as they are non-cash in nature or are non-operating in nature. |
| (4) | Equity in (earnings) loss of non-consolidated entities primarily consisted of equity in (earnings) from AC JV of $(10.0) million during the year ended December 31, 2024. Equity in (earnings) loss of non-consolidated entities primarily consisted of equity in (earnings) from AC JV of $(4.9) million during the year ended December 31, 2023. Equity in (earnings) loss of non-consolidated entities primarily consisted of equity in loss from Saudi Cinema Company LLC of $7.6 million, partially offset by equity in (earnings) from DCIP of $(3.4) million during the year ended December 31, 2022. |
| (5) | Attributable EBITDA includes the EBITDA from equity investments in theatre operators in certain International markets. See below for a reconciliation of the Company’s equity in (earnings) loss of non-consolidated entities to attributable EBITDA. Because these equity investments are in theatre operators in regions where the Company holds a significant market share, the Company believes attributable EBITDA is more indicative of the performance of these equity investments and management uses this measure to |
| | monitor and evaluate these equity investments. The Company also provides services to these theatre operators including information technology systems, certain on-screen advertising services and the Company’s gift card and package ticket program. |
| | | | | | | | | | | | Year Ended | (In millions) | | December 31, 2024 | | December 31, 2023 | | December 31, 2022 | Equity in (earnings) loss of non-consolidated entities | | $ | (12.4) | | $ | (7.7) | | $ | 1.6 | Less: | | | | | | | | | | Equity in (earnings) of non-consolidated entities excluding International theatre joint ventures | | | (11.5) | | | (6.6) | | | (5.4) | Equity in earnings (loss) of International theatre joint ventures | | | 0.9 | | | 1.1 | | | (7.0) | Income tax provision | | | — | | | 0.1 | | | 0.1 | Investment expense (income) | | | (0.4) | | | (0.6) | | | 0.2 | Interest expense | | | 0.1 | | | 0.2 | | | 0.1 | Impairment of long-lived assets | | | — | | | — | | | 4.2 | Depreciation and amortization | | | 1.3 | | | 1.4 | | | 2.8 | Attributable EBITDA | | $ | 1.9 | | $ | 2.2 | | $ | 0.4 |
| (6) | Investment expense (income) during the year ended December 31, 2024 includes interest income of $(19.2) million, partially offset by a decline in the estimated fair value of the Company’s investment in common shares of Hycroft of $0.4 million and a decline in the estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft of $2.5 million. |
Investment expense (income) during the year ended December 31, 2023 included a $(15.5) million gain on sale of the Company’s investment in Saudi Cinema Company LLC and interest income of $(15.3) million, partially offset by a decline in estimated fair value of investment in common shares of Hycroft of $6.6 million, a decline in the estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft of $6.0 million, $1.8 million of expense for NCM Common Units and $1.0 million impairment of a cost method investment. Investment expense (income) during the year ended December 31, 2022 included a decline in estimated fair value of investment in common shares of Hycroft of $12.5 million partially offset by $(6.2) million of appreciation in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft, a $13.5 million loss on sale of the Company’s investment in NCM common units offset by interest income of $(5.9) million. | (7) | Other expense (income) during the year ended December 31, 2024 primarily consists of a decrease in fair value of the derivative liability for the embedded conversion feature in the Exchangeable Notes of $(75.8) million, shareholder litigation recoveries of $(40.2) million, net gains on debt extinguishment of $(38.9) million, and a vendor dispute of $(36.2) million, partially offset by term loan modification third party fees of $42.3 million and foreign currency transaction losses of $7.0 million. |
Other expense (income) for the year ended December 31, 2023 primarily consisted of gains on debt extinguishment of $(142.8) million and foreign currency transaction gains of $(17.8) million, partially offset by a non-cash litigation charge of $99.3 million. Other expense (income) for the year ended December 31, 2022 primarily consisted of a loss on debt extinguishment of $92.8 million, partially offset by income related to the foreign currency transaction gains of $(12.3) million and contingent lease guarantees of $(0.2) million. | (8) | Merger, acquisition and other costs are excluded as they are non-operating in nature. |
| (9) | Non-cash or non-recurring expense included in general and administrative: other. |
|
| Schedule of information about the Company's revenues from continuing operations and assets by geographic area |
| | | | | | | | | | | | Year Ended | Revenues (In millions) | | December 31, 2024 | | December 31, 2023 | | December 31, 2022 | United States | | $ | 3,544.2 | | $ | 3,688.7 | | $ | 2,961.7 | United Kingdom | | | 408.8 | | | 400.9 | | | 379.3 | Spain | | | 143.3 | | | 148.2 | | | 114.6 | Sweden | | | 116.4 | | | 124.9 | | | 125.0 | Italy | | | 147.6 | | | 151.9 | | | 90.4 | Germany | | | 111.6 | | | 125.8 | | | 96.2 | Finland | | | 90.1 | | | 97.9 | | | 73.9 | Ireland | | | 32.5 | | | 32.2 | | | 27.3 | Other foreign countries | | | 42.7 | | | 42.1 | | | 43.0 | Total revenues | | $ | 4,637.2 | | $ | 4,812.6 | | $ | 3,911.4 |
| | | | | | | | | As of | | As of | Long-term assets, net (In millions) | | December 31, 2024 | | December 31, 2023 | United States | | $ | 5,474.2 | | $ | 5,795.6 | International | | | 1,826.1 | | | 2,010.5 | Total long-term assets (1) | | $ | 7,300.3 | | $ | 7,806.1 |
| (1) | Long-term assets are comprised of property, operating lease right-of-use assets, intangible assets, goodwill, deferred tax assets, net and other long-term assets. |
|