Excel explanation for Question 1, 8, 12 and 20

1) For each quarter of data, decompose AMC's ROE into the 5 component ratios that we discussed in class. 2-6) Discuss what each of the components of the decomposition means or represents (1 do not want a 'formula' - I want an explanation of the practical concept represented by each ratio). 7) Discuss the patterns/trends you see in the decomposition (what does this foretell for the company's future?) 8-9) AMC has traditionally had 3 revenue streams: Admissions; Food and Beverage; and Other Theater. For each quarter, compute the Gross Margin percentages for Admissions and Food and Beverage. Note, explicitly, the assumptions you made in making your calculations. 10-11) Discuss the patterns you see in the revenue streams. 12) Create common-size income statements (by quarter) for AMC (a common-size income statement takes each item on the income statement and divides it by that period's total revenues). 13-15) What are the three items that comprise, in general, the largest costs for AMC? How have they varied over time? Going forward, what are the implications of any identied variations for AMC's protability? 16) What are your thoughts about AMC's ability to return to protability in a post-pandemic economy (you might want to reference the Statement of Cash Flows in your response)? 17) From a nancial perspective, what are the greatest obstacles to AMCs future prospects? 18) From a nancial perspective, what are the greatest strengths impacting AMCs future prospects? 19-20) Given your analysis in 1-18 above (the trends inAMC's performance, it's nancial strengths and weaknesses), who do you think will win the game of 'chicken?' Is the stock price likely to go up or down? On what, specically, do you base your conclusion. Double-click on the object below to open the spreadsheet. AMC Holdings - Quarterly Income Statements in millions, except share and per share Three Months Ended June 30 June 30 September 30 amounts) March 31 September 30 December 31 March 31 June 30 September 30 December 31 March 31 June 30 September 30 December 31 M March 31 2017 2017 2017 2018 2014 2018 2018 2019 2019 2019 2019 2020 2020 2020 2012 Revenues Admissions $ 817.30 $ 761.40 $ 753.50 $ 897.30 $ 875.00 $ 896.30 $ 751.40 $ 862.30 $ 731.50 $ 895.50 $ 797.30 $ 877.00 $ 568.00 $ 0.90 $ 62.90 Food and beverage 397.90 374.10 361.40 415.00 405.80 445.80 384.80 435.10 368.80 492.50 420.00 438.00 288.10 0.40 29.10 Other theatre 68.20 66.80 63.80 102.50 102.80 100.40 85.20 115.90 100.10 118.10 99.50 132.40 85.40 17.60 27.50 Total revenues 1,283.40 1,202.30 1,178.70 1,414.80 1,383.60 1,442.50 1,221.40 1,413.30 1,200.40 1,506.10 1,316.80 1,447.70 941.50 18.90 119.50 Operating costs and expenses Film exhibition costs 420.70 379.80 364.80 439.00 426.50 471.40 378.80 433.50 365.30 482.50 416.80 434.50 271.70 0.20 26.60 73.60 53.40 4.50 8.80 Food and beverage costs 60.60 62.10 60.70 68.70 36.20 72.20 63.60 68.90 31.50 76.40 67.20 Operating expense, excluding depreciation and 427.40 114.80 192.10 amortization below 363.90 389.20 383.20 411.70 411.90 424.50 400.50 1,654.70 402.80 437.40 419.00 356.90 Rent 182.60 199.80 200.70 211.30 189.70 199.70 203.70 (14.60) 242.00 245.90 238.70 241.20 237.80 224.10 214.30 General and administrative: 0.20 1.80 1.00 Merger, acquisition and transaction costs 40.40 11.50 5.60 5.50 4.70 4.30 18.10 4.20 3.30 3.20 4.70 4.30 32.70 Other, excluding depreciation and amortization 46.10 32.80 78.90 below 34.5 98.70 44.20 43.00 48.40 43.70 46.20 43.20 37.50 26.10 33.20 25.40 112.00 112.10 112.90 122.50 119.70 123.50 Depreciation and amortization 125.30 133.30 135.20 144.80 130.50 137.70 130.20 139.40 113.00 Impairment of long-lived assets, definite and indefinite-lived 43.60 intangible assets and goodwill 13.80 84.30 1,851.90 195.90 490.50 794.90 Operating costs and expenses 1,228.00 1,221.80 1,183.00 1,344.40 1,273.70 1,352.80 1,243.30 1,326.00 1,234.10 1,400.60 1,296.00 1,404.30 2,927.60 Operating income 55.40 (19.50) (4.30) 70.40 109.90 89.70 (21.90) 87.30 (33.70) 105.50 20.80 43.40 (1,986.10) (471.60) (675.40) Other expense (income): Other expense (income) (2.70) 1.10 (0.60) 0.70 1.20 2.20 54.10 (165.60) (23.40) (1.30) 38.10 26.90 6.60) 125.00 29.80 (29.80) Interest expense 61.70 64.30 74.10 71.30 74.20 73.20 74.10 71.30 79.60 82.80 Corporate borrowings 51.10 59.60 60.80 60.10 62.20 Capital and financing lease obligations 10.80 10.30 10.60 10.70 10.30 9.80 9.40 9.00 2.10 2.10 1.80 1.60 1.60 1.50 1.40 Non-cash NCM exhibitor service agreement 10.50 10.40 10.30 10.30 10.20 10.10 10.10 10.00 9.90 10.10 10.10 Equity in Income (loss) of non-consolidated entities 2.30 195.00 1.80 13.90 9.00 (13.00) (70.00) (12.70) (6.50) (10.20) (7.50) (6.40) 2.90 12.40 10.60 9.40 Investment income (5.30 0.60 (16.60) 1.30 (5.20 (1.50) (0.70 1.20 (16.10) (2.10) (0.50) 2.70 (1.30) (4.10) 266.60 56.00 56.30 87.50 70.10 67-40 (83.70) 90.80 50.70 75.80 9.03 122.00 95.70 225.80 Total other expense 56.20 Earnings (loss) before income taxes (0.80 (286.10) (60.30) 14.10 22.40 19.60 (89.30) 171.00 (124.50) 54.80 (55.00) (46.90) (2,108.10) (567.30) (901.20) (9.20) (109.60) (17.60) 290.50 4.70 (2.60) 11.10 0.40 5.70 5.40 (0.20) (33.40) 68.20 (6.10) 4.60 Income tax provision (benefit) (54.80) $ (13.50) #WWW#8## S (561.20) (905.80) Net earnings (loss) 8.40 $ (176.50) $ (42.70) $ (276.40) $ 17.70 $ 22.20 $ (100.40) $ 170.60 $ (130.20) $ 49.40 Earnings (loss) per share attributable to AMC Entertainment Holdings, 0.07 $ (0.33) $ (2.19) $ 0.17 $ (0.82) $ 1.42 $ (1.25) $ (0.14) $ (20.88) $ (5.38) $ (8.41) Basic (1.35) $ 0.14 $ 0.48 $ (0.53) $ Diuted 0.07 $ (1.35) $ (0.33) $ (2.19) $ 0.14 $ 0.17 $ (0.82) $ 0.92 $ (1.25) $ 0.17 $ (0.53) $ (0.17) $ 20.88 $ (5.38) $ (8.41) Average shares outstanding: 107,695 Basic (in thousands) 121,358 131,166 131,077 128,246 128,046 128,039 123,126 120,621 103,783 103,845 103,850 103,832 104.245 104,319 Diuted (in thousands) 121,401 131.166 131.077 128.246 128,046 128,105 123,126 130.105 103.783 135,528 103,850 103,832 104.245 104.319 107.695 Dividends declared per basic and diluted common share 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 1.55 $ 0.20 S 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.03Consolidated Balance Sheets Three Months Ended March 31 June 30 September 30 December 31 March 31 June 30 September 30 December 31 March 31 June 30 September 30 December 31 March 31 June 30 September 30 ASSETS 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2017 2017 Current assets: Cash and equivalents $ 313.10 $ 127.80 $ 260.00 $ 310.00 $ 300.90 $ 316.40 $ 333.30 $ 313.30 $ 184.60 $ 190.50 $ 100.40 $ 265.00 $ 299.80 $ 498.00 $ 417.90 Restricted cash 6.50 6.80 8.30 11.60 11.00 11.00 10.70 10.60 10.70 10.20 10.50 10.00 10.40 10.90 144.80 153.80 128.90 271.50 167.10 179.10 155.20 259.50 193.80 228.50 157.90 254.20 126.80 70.70 97.50 Receivables, net Assets held for sale 221.40 110.50 80.00 54.40 130.50 Other current assets 211.70 223.70 226.30 202.60 204.10 203.90 187.00 197.80 162.60 160.30 180.20 143.40 115.20 100.60 82.30 Total current assets 891.00 622.30 622.00 872.40 738.10 840.90 686.50 781.30 551.60 590.00 448.70 673.10 551.80 679.70 608.60 3,162.20 3254.00 3244.50 3,116.50 3,091.30 3,028.10 3,028.60 3,039.60 2,600.80 2,613.90 2,581.40 2,649.20 4,602.30 2,417.50 2,332.50 Property, net 4,809.20 4,798.90 4.794.90 4.796.00 4,602.30 4,555.30 4,475.80 Operating lease right-of-use assets, net Intangible assets, net 362.60 389.40 387.80 380.50 378.00 365.30 359.30 352.10 199.00 197.60 193.90 195.30 175.10 174.30 164.50 4,823.70 4932.20 4889.50 4,931.70 4.944.20 4.830.70 4.820.80 4,788.70 4,787.90 4,763.00 4.693.80 4,789.10 2,938.00 2,988.40 2,874.40 Goodwill Deferred tax asset 105.40 204.70 222.20 28.90 28.20 28.20 29.50 28.60 31.00 31.10 30.70 70.10 0.50 0.60 0.60 509.10 544.70 475.90 505.90 438.60 438.30 505.50 493.70 520.40 537.90 503.00 450.20 455.80 419.80 Other long-term assets 595.10 Total assets $9,940.00 $9,811.70 $9,910.70 $9,805.90 $9.685.70 $9.531.80 $9,363.00 $9,495.80 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 510.40 477.80 469.10 $ 569.60 $ 454.20 $ 535.80 $ 395.10 $ 452.60 $ 382.80 $ 423.20 $ 361.60 $ 543.30 $ 337.10 $ 436.10 $ 376.90 Accrued expenses and other liabilities 330.70 289.80 337.40 351.10 348.50 312.20 387.10 378.50 342.40 317.80 338.60 324.60 263.00 257.50 268.90 292.80 284.60 401.00 332.90 311.20 293.20 414.80 370.10 369.80 347.50 449.20 400.30 406.10 400.90 Deferred revenues and income 294.50 Current maturities of corporate borrowings 103.20 86.20 89.10 87.70 86.60 84.20 83.00 15.20 15.20 21.40 21.40 20.00 20.00 20.00 20.00 Current maturities of finance lease liabilities 1.60 10.90 10.00 10.30 10.20 10.00 10.50 570.70 570.80 568.10 585.80 581.50 581,50 511.00 Current maturities of operating lease liabilities Current maturities of capital and financing lease 67.00 Total current liabilities 1,238.80 1146.60 1180.20 1,409.40 1,222.20 1,243.40 1,158.40 1,328.10 1,692.80 1,713.90 1,647.20 1,933.20 1,612.10 1,711.20 1,588.20 Corporate borrowings 4.180.00 4249.10 4277.40 4,220.10 4.244.10 4.202.60 4.840.30 4,707.80 4,737.70 4,713.10 4,710.10 4,733.40 5,020.80 5,498.00 5,803.80 Capital and financing lease obligations 613.10 599.10 594.40 578.90 573.10 536.80 516.70 493.20 117.00 109.40 89.50 89.60 85.00 83.90 84.20 4,826.60 4,852.00 4,857.60 4,913.80 4,784.30 4,744.40 4,909.40 Operating lease liabilities 553.30 545.90 538.40 530.90 575.00 571.40 567.70 564.00 561.60 557.70 553.80 549.70 550.40 546.30 542.00 Exhibitor services agreement Deferred tax liability 26.60 46.90 47.40 49.60 48.50 44.30 44.30 41.60 45.80 51.70 49.80 46.00 47.70 43.20 43.40 Other long-term liabilities 726.50 746.60 847.70 903.80 937.50 963.00 980.70 963.10 188.20 192.00 190.00 195.90 212.00 220.00 240.60 7,338.30 7334.20 7485.50 7,692.70 7,600.40 7,561.50 8,108.10 8,097.80 12,169.70 12,189.80 12,098.00 12,461.60 12312.3 12,847.00 13,211.60 Total liabilities Stockholders' equity: 0.50 0.50 0.50 0.50 Class A common stock ($.01 Par value) 1.10 0.60 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.80 0.80 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 Class B common stock ($.01 par value) 0.60 0.80 .80 0.80 Additional paid-in capital 2.237.80 2240.30 2240.00 2,241.60 2,242.90 2.247.00 1,994.50 1998.40 2,001.70 2,006.80 2,008.90 2.001.00 2.003.60 2.007.30 2,125.00 Treasury stock (D.70) (0.70) (17.20) (48.20) (48.20) (56.40) (56.40) (56.40) (56.40) (56.40) (56.40) (56.40) (56.40) (56.40) (56.40) Accumulated other comprehensive income (los: (4.40) 72.10 105.80 125.60 140.50 33.50 26.00 5.50 (19.40) (28.60) (96.70) (119.60) (63.60) (4,387.00) Accumulated earnings (deficit) 366.50 163.60 94.50 (207.90) (251.70) (255.50) (710.60) (550.90) (623.40) (597.70) (673.50) (706.20) (2,902.60) (3,463.70) (2,370.00) Total stockholders' equity 2,600.60 2476.70 2424.40 2,112.40 2,084.80 1,969.90 1.254.50 1,397.60 1,303.50 1,325.10 1.183.30 1.214.00 (1,074.00) (1,575.40) (2,335.40) Total liabilities and stockholders' equity $9,940.00 $9,811.70 $9,910.70 $9,805.90 $9.685.70 $9.531.80 $9.363.00 $9,495.80 #NSHOWN# #OWNSNON NONONNON NONSHOWN SNOWNOUN WHONOUNS WHONONOWStatement of Cash Flows 12/31/17 12/31/18 12/31/19 ITM' Operating Cash Flow 558,700 523,200 579,000 (402,800) Net Income from Continuing Operations (487,200) 110,100 (149.100) (3,656,800) Operating Gains Losses (2,500) (184,100) (2,200) 168,300 Gain Loss On Sale of Business 5,400 (30,600) Gain Loss On Investment Securities (2,600) (111,400) (5,800) 118,600 Earnings Losses from Equity Investments (3,900) (40,000) 2,700 53,200 Pension And Employee Benefit Expense 600 1,100 1,700 1.200 Depreciation Amortization Depletion 538,600 537,800 450,000 478,600 Deferred Tax 157,800 (6,400) (33.700) 24.500 Asset Impairment Charge 251,600 29,800 84,300 2,132,100 Stock based compensation 5,700 14.900 4.400 2.400 Other non-cash items 99,700 38,800 89,500 117,700 Change in working capital (5,000) (17,700) 135,800 330.400 Change in Receivables (36,600) (200) 700 72.200 Change in Payables And Accrued Expense 13,300 (17,100) 104.200 156,800 Change in Payable 34,700 (85,600) 104.800 84.800 Change in Accrued Expense (21,400) 68,50 (600) 72,000 Change in Other Current Assets 18.300 [400) 30.900 101 400 Cash Flow from Continuing Operating Activit 558,700 523,200 579,000 (402,800) Investing Cash Flow (965,200) (317,200) (516,100) (322,500) Capital Expenditure Reported (626,800) (576,300) (518,100) (325,900) Net Business Purchase And Sale (496,400 196,900 (21,500) (9,500) Purchase of Business (583,500) (11,800) Sale of Business 98,200 208,300 Net Other Investing Changes 158,000 62 200 23.500 12.900 Cash Flow from Continuing Investing Activiti (965,200) (317,200) (516,100) (322,500 Financing Cash Flow 492,300 (194,800) (112,900) 1,042,500 Net Issuance Payments of Debt 54,200 525,900 (15,600) 1,043.600 Net Long Term Debt Issuance 54,200 525,900 (15.600) 1,043,600 Net Short Term Debt Issuance Common Stock Issuance 616,800 0 2.800 Common Stock Payments (34,000) (445,400) Cash Dividends Paid (104,600) (258,100) (84.100) (25.000 Common Stock Dividend Paid (104,600) (258,100) (84,100) (25,000) Net Other Financing Charges (40.100) (17.200) (13 200) 21.100 Cash Flow from Continuing Financing Activit 492,300 (194,800) (112,900) 1,042,500 End Cash Position 310,000 324,000 275,500 427.800 Changes in Cash 85,800 11,200 (50,000) 317,200 "Trailing 12 months