For each quarter of data, decompose AMCs ROE into the 5 component ratios(net profit margin, total asset turnover, return on assets, financial leverage, return on equity

2-6) Discuss what each of the components of the decomposition means or represents by 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 companys 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 periods 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 identified variations for AMCs profitability?

16) What are your thoughts about AMCs ability to return to profitability in a post-pandemic economy (you might want to reference the Statement of Cash Flows in your response)?

17) From a financial perspective, what are the greatest obstacles to AMCs future prospects?

18) From a financial perspective, what are the greatest strengths impacting AMCs future prospects?

19-20) Given your analysis in 1-18 above (the trends in AMCs performance, its financial 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, specifically, do you base your

AMC Holdings - Quarterly Income Statements (in milions, except share and per share Three Months Ended amounts) 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 20 2017 2017 2012 2017 20:18 20019 2018 2012 2019 2019 2019 2019 2020 2020 2020 Revenues Admissions S 817.30 S 761.40 S 753.50 S 897.30 S 875.00 S 896.30 S 751.40 S 862.30 S 731.50 S 895.50 S 797.30 S 877.00 S 568.00 S 0.90 S 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 1,316.30 1,447.70 941.50 18.90 119.50 Operating costs and expenses Fim exhibition costs 420.70 379.80 364 BO 439.00 426.50 471.40 378.80 433.50 365.30 482.50 416.80 434.50 271.70 D.20 26.50 Food and beverage costs 60.80 62.10 60.70 68.70 66.20 72 20 63.80 68.90 61.50 78.40 67.20 73.80 53.40 4.50 B.BO Operating expense, excluding depreciation and amortization below 363.90 389 20 38320 411.70 411.90 424.50 400.50 1,654.70 402.80 437.40 419.00 427.40 356.90 114.80 192.10 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: 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 0.20 1.80 1.00 Other, excluding depreciation and amortization 46.10 32.80 78.90 32.70 below 34.50 98.70 44.20 43.00 48.40 43.70 46.20 43.20 37.50 26.10 33.20 25.40 Depreciation and amortization 125.30 133.30 135.20 144.BO 130.50 137.70 130.20 139.40 113.DO 112.00 112.10 112.90 122.50 119.70 123.50 Impaiment of long-lived assets, definite and indefinite-lived 43.60 intangible assets and goodwil 13.80 84.30 1,851.90 195.90 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 1,298.00 1.404 30 2,927.60 490.50 794.90 Operating income 55.40 (1950) (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 1.20 220 54.10 (165.60) (23.40) (1.30) 38.10 26.90 (6.60) ) 125.00 Interest expense: 29.80 (29.80) Corporate borrowings 51.10 59.60 60.80 60.10 61.70 62.20 64.30 74.10 71.30 74.20 73.20 74.10 71.30 79.60 82.80 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.BO 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 Investment income (5.30) 0.60 (16.80) 1.30 (5.20) (1.50) (0.70) 1.20 (16.10) (2.10) (0.50) 2.70 9.40 (1.30) (4.10) 4.20 Total other expense 56.20 266.60 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 Eamings (oss) 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) Income tax provision benefit) (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 Net earnings (loss) S 8.40 S (176.50) S (42.70) $ (276.40) $ 17.70 $ 22.20 $ (100.40) $ 170.60 $ (130.20) $ 49.40 (54.80) $ (13.50) ######## $ (561.20) (905.80) Eamings (loss) per share attributable to AMC Entertainment Holdings, Basic S 0.07 S (1.35) $ (0.33) $ (2.19) $ 0.14 $ 0.17 $ (0.82) $ 1.42 $ (1.25) $ 0.48 $ (0.53) $ (0.14) $ (20.88) $ (5.38) $ (8.41) Diluted S 0.07 $ (1.35) $ (0.33) $ (2.19) $ 0.14 $ 0.17 $ (0.B2) $ 0.92 $ (1.25) $ 0.17 $ $ (0.53) $ (0.17) $ 20.88 $ (5.38) $ (8.41) Average shares outstanding: Basic (in thousands) 121,358 131,166 131,077 128,246 128.046 128,039 123, 126 120,621 103,783 103,845 103,850 103,832 104,245 104,319 107,695 Diluted (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 S 0.20 S 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 1.55 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.03 Consolidated Balance Sheets Three Months Ended March 31 June 30 2017 2017 June 30 September 30 September 30 December 31 March 31 2017 2017 2018 June 30 2012 September 30 December 31 March 31 2018 2018 2019 June 30 2019 September 30 December 31 2019 2019 March 31 2020 2020 2020 ASSETS Current assets: Cash and equivalents Restricted cash Receivables, net Assets held for sale Other current assets Total current assets Property, net Operating lease right-of-use assets, net Intangible assets, net Goodwill Deferred tax asset Other long-term assets Total assets S 313.10 S 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 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 97.50 221.40 110.50 80.00 54.40 130.50 211.70 223.70 226.30 202.60 204.10 203.90 187. DO 197.80 162 50 160.30 180.20 143.40 115.20 100.60 82.30 891.00 622.30 622.00 872.40 738.10 840.90 686.50 781.30 551.60 590.00 448.70 673.10 551.80 679.70 608.60 3,162.20 3254.00 3244.50 3,116.50 3.091.30 3,028.10 3.028.80 3,039.60 2,600.00 2,613.90 2,581.40 2,649.20 4,602.30 2,417.50 2,332.50 4,809 20 4.798.90 4.794.90 4.796.00 4,602.30 4,555.30 4,475.80 362.60 389.40 387.80 380.50 378.00 365.30 359.30 352.10 199.00 197.60 193.90 195.30 175.10 174.30 164.50 4,823.70 4932.20 4889.50 4.931.70 4.944.20 4.830.70 4,820.30 4.788.70 4,787.90 4,763.00 4,693.80 4,789.10 2,938.00 2,988.40 2,874.40 105.40 204.70 222.20 28.90 28.20 28.20 29.50 28.60 31.00 31.10 30.70 70.10 0.50 0.60 0.60 595.10 509.10 544.70 475.90 505.90 438.60 438.30 505.50 493.70 520.40 537.90 503.00 450.20 455.80 419.80 $9,940.00 $9,811.70 $9,910.70 $9,805.90 $9,685.70 $9,531.80 $9,805.90 $9,885.70 $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 Deferred revenues and income 294.50 292.80 284.60 401.00 332.90 311.20 293.20 414.80 370.10 369.80 347.50 449.20 400.30 406.10 400.90 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 11.60 10.90 10.00 10.30 10.20 10.00 10.50 Current maturities of operating lease liabilities 570.70 570.80 568.10 585.80 581.50 581.50 511.00 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 Operating lease liabilities 4,826.60 4,852.00 4,857.60 4,913.80 4,784.30 4,744.40 4,909.40 Exhibitor services agreement 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 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 Total liabilities 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 Stockholders' equity: Class A common stock ($.01 Par value) 1.10 0.60 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 Class B common stock ($.01 par value) 0.60 0.80 0.80 0.80 0.80 0.80 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 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 (0.70) (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 ######## ######## ######## ######## ######## ######## ######## 12/31/19 Statement of Cash Flows Operating Cash Flow 12/31/17 558,700 12/31/18 523,200 TTM* (402,800) 579,000 Net Income from Continuing Operations Operating Gains Losses Gain Loss On Sale of Business Gain Loss On Investment Securities Earnings Losses from Equity Investments Pension And Employee Benefit Expense Depreciation Amortization Depletion Deferred Tax Asset Impairment Charge Stock based compensation Other non-cash items Change in working capital Change in Receivables Change in Payables And Accrued Expense Change in Payable Change in Accrued Expense Change in Other Current Assets Cash Flow from Continuing Operating Activit (487,200) (2,500) 5,400 (2,600) (3,900) 600 538,600 157,800 251,600 5,700 99,700 (5,000) (36,600) 13,300 34,700 (21,400) 18,300 558,700 110,100 (184,100) (30,600) (111,400) (40,000) 1,100 537,800 (6,400) 29,800 14,900 38,800 (17,700) (200) (17,100) (85,600) 68,500 (400) 523,200 (149,100) (3,656,800) (2,200) 168,300 0 (5,800) 118,600 2,700 53,200 1,700 1,200 450,000 478,600 (33,700) 24,500 84,300 2,132,100 4,400 2,400 89,500 117,700 135,800 330,400 700 72,200 104,200 156,800 104,800 84,800 (600) 72,000 30,900 101,400 579,000 (402,800) Investing Cash Flow (965,200) (317,200) (516,100) (322,500) (325,900) (9,500) 0 Capital Expenditure Reported (626,800) Net Business Purchase And Sale (496,400) Purchase of Business (583,500) Sale of Business 98,200 Net Other Investing Changes 158,000 Cash Flow from Continuing Investing Activiti (965,200) (576,300) 196,900 0 208,300 62,200 (317,200) (518,100) (21,500) (11,800) 0 23,500 (516,100) 12,900 (322,500) Financing Cash Flow 492,300 (194,800) (112,900) 1,042,500 54,200 54,200 525,900 525,900 (15,600) 1,043,600 (15,600) 1,043,600 Net Issuance Payments of Debt Net Long Term Debt Issuance Net Short Term Debt Issuance Common Stock Issuance 0 0 616,800 0 0 2,800