AMC Entertainment brought in record revenue in 2017, driven by its acquisitions of Odeon Cinemas Group, Carmike Cinemas and Nordic Cinema Group, according to the company’s March 1 earnings report. However, AMC posted a net loss for the year, which the company attributed largely to two major expenses: an impairment charge related to the Nordic Cinema deal and tax expenses resulting from changes to the U.S. tax code.
The Leawood, Kansas-based movie theater operator posted a net loss for 2017 of $487.2 million, or $4.93 per share. That was down from a profit of $111.7 million, or $1.13 per share, from the previous year.
That underperformed the consensus estimate of four analysts polled by Zacks Investment Research, who predicted a net loss of $211 million, or $1.33 per share.
AMC reported annual revenue of about $5.1 billion, up 57 percent from revenue of $3.2 billion for 2016.
For the fourth quarter ended Dec. 31, 2017, AMC reported a loss of $276.4 million, down from net earnings of $29 million for the same quarter last year. The company attributed the loss to tax reform and “the impact of a full valuation allowance on our deferred income tax assets.”
Fourth-quarter revenue increased to $1.4 billion, up 53 percent from revenue of $926.1 million for the final quarter of 2016.
In a call with analysts, AMC Chief Executive Adam Aaron addressed a shareholder lawsuit stemming from AMC’s acquisition of Carmike Cinemas, calling it “without merit.”
He also quickly dismissed concerns raised by one analyst about MoviePass, an independent movie subscription service.
“We are focused on running our business, not running their business,” Aaron said.
Aaron focused more on the company’s investment in capital improvements to newly acquired theaters. He said during the call that the cost of installing recliner seats used in premium theaters is dropping. He expects AMC to retrofit nearly 100 newly acquired theaters in England with the seats.