Foreign. Thank you thank you thank you Google means show us the fucking money. It's time to lay it on me cause what's mine is safe Financial Advice: just a little DD to help you think twice we hope for each other. eyes on the prize. The new floors two hundred thousand times can't spell like you can't even count to ten and I eat crayons every day with my friends I Think about candy. any Sovereign Show us the fucking money, It's time to lay down. Thank you Foreign Fucking Money! Hey hey hey hey hey hey hey hey hey. Welcome to today's episode of AMC Q3 Earnings AKA The make or break it moment for Adam Aaron Now I know a lot of you listening right now might be thinking but Matt but Matt that seems harsh. Why is this a make or break it moment? and I think that's because we need a moment of honesty. and I think if you're being honest with yourself, you know somewhere deep in your conscious, maybe so deep it's in your subconscious. You know that maybe just maybe Adam Aaron and the rest of the leadership team might be taken advantage of you. That's a very, very real possibility. And before you pop off and start acting like the sycophant you want to be and be like no. But Adam has our back. Does he does he? Why? Why is the entire leadership team selling all of their shares whenever they get shares? Why? Proper estate planning? That's a fair argument. That's a very, very fair argument. Maybe just maybe that's possible. Maybe it is because they're getting up there in age and it's just a smart thing to do. Kind of awkward to explain why you're holding a bunch of other stock though. that you've had for a bunch of years. When you're selling the stock of the company that you're running, that, that's that's a little weird. Uh, let's be realistic. Let's not do these mental gymnastics of bending over backwards and try to explain it. Maybe we should go with Occam's razor. Maybe we should go with the Kiss methodology. Keep it simple. stupid. If you think a Stock's going up, do you sell it? The simple answer is no. It is incredibly that simple. If you think a stock will continue to go up, you simply don't sell it. That's fact. And if you're going to argue with that, you're probably not meant to be in the market. I'm not sure if you really have like the intellectual weight that you're gonna need to survive in the market, if you're going to be doing some Simone Biles level of mental gymnastics to defend all these people for selling. Now, before we get into all this, the whole thing is going to start in about eight minutes from now I Want to make some things explicitly clear: This is publicly available to all you you can see my account on Public.com like that brokerage at Matt underscore course. As of the time I'm filming this I Own my AMC shares I Own my ape shares. they're there I am long on the company I have no options whatsoever I own AMC I Own ape. That's it. No calls, no puts, no nothing like that whatsoever I am in this play because I support you I hope you support me I'm in this for making the market hopefully even just a little bit better. What I'm not in this for is lining the pockets of another suit. How many quarters have we sat here consecutively time and time and time again and we're hoping that they just do something legitimately good and right there I Already hear it. Well, they they gave us an Nft, but we have all these Nfts. They are throwing this a bone. They love us Matthew but Matthew they love us so so much they gave us Nfts I haven't I haven't I haven't enough tea an nft Daddy Nfts aren't gonna do shit. What's your nft worth? Fuck all a little bit above Buckle No, it's actually probably a little bit. Your Nfts aren't worth dick. He's like he's walking away with hundreds of dollars in his pocket and he's flipping you a penny. Does no one see that? but Matt I thought you were an ape I'm an ape through and through. That doesn't mean I support a suit. Just because someone's running a company doesn't mean that they have your back and there's not enough people in this community who are getting that concept through their head. whatsoever. An ape has nothing to do with supporting a CEO if they're doing fucked up things, if they're doing great things, you support that. But in this world, nothing's all good, nothing's all bad. We live in the gray area like the market is also like humans. We live in that gray area in between. We're about to listen to this Q3 earnings and I vehemently believe this is the make or break it moment for people's overwhelming support for AMC I Think right now as a company, there is still an immense amount of support I Myself own thousands of shares of both AMC and Ape and obviously I wanted to go to the upside. even it my most core selfish level. it's my own Financial investment and I want it to go higher I Don't know though because what I've been seeing out of this leadership team is they don't We didn't want the company to get diluted, so they found a roundabout way to dilute it. That's what Ape is. Don't get confused about this whatsoever. Ape was created for them to dilute the company they wanted to raise Capital so they can improve the future trajectory of the company. They don't want to go bankrupt. They have five billion dollars in debt. They're operating every single quarter at a loss in the most basic business sense. That's not how you run a business The investors you me said, no, we don't want you to dilute it They said, oh, I'm okay, we won't dilute it And then they came out with the most convoluted way to delude it. I Know many of you were thinking but no, no, no no no no no, they gave us Nfts, They love us and they only made Ape to show these synthetic fake shares. Well, let me ask you this: How did that turn out Now obviously I don't work for the Dtcc I don't work for a hedge fund I don't work for the SEC So I have no idea what's going on in that. But I Do know that this whole offering of Ape did a total of zero in showing anything about synthetic shares. So let's be realistic. Let's attack this with as much realism as we possibly can as we're listening to this. and maybe instead of just injecting hopium and copium directly into our veins, let's think about this with a little bit more logic. a little bit more realism because at the end of the day, you've used your time and you've donated your time to most likely get money, Then you've put that money into the market in an attempt to make more money. And let me ask you, ever since the debut of Ape, That was supposed to save us all and the shorts were supposed to choke on that And they were supposed to be scared and that was the ultimate pounce. How has it worked out? Let's be realistic. how has it worked out ever since this master Pan was debuted Now obviously I'm there with you once again for the third time. To reiterate: I Am Long on AMC I Am Long on Ape I own shares of both I Want it to go I own it I want to make more money So obviously. but I refused to follow the dipshits all the time on Twitter and read it that are talking about things that they simply cannot understand. Their brains are not working at a level. we're talking people who have big followings with a single digit IQ Who don't know their ass from a hole in the ground saying it's going to 60. it's going to 70. it's going to 80 next week I Guarantee it. Oh, the only reason we're still here is because that one red bar and every red bar is pure manipulation. Fuck off. I'm so tired of it. Let's be adults. This is the market. we're attempting to make money. That's how this works. You're in the market. You're putting your money on the table. You're attempting to get more money when you walk away from the table. But these people are like it's crazy. It's a cult. They need to just shut the fuck up. They don't know what they're saying at all. Whatever. We're here for a serious understanding of what's going on with the company I pray it goes to the upside for my own investment and I also think it would be awesome because it would shut those dumb people up if they kind of get their money. I I Would love for that to happen I want us to all make money. but right now I have still not been convinced that a suit is not simply a suit because all I'm seeing right now is time and time again we are proven a suit is a suit and it's it's that simple. It is that simple. Do you know how much you should trust the suit as far as you can freaking throw them? The earnings announcement is about to start and as of now in terms of earnings per share and revenue AMC Beat! We had a narrower than expected loss and obviously Revenue was higher than expected. Before we get into one thing, there's something very, very important that I want to show you that I find concerning and it's probably a good explanation of right now. why AMC and ape are they popped and then they came down So I think the reason in reality why they popped is because everyone's like, okay, sick they beat on Revenue they beat on earnings per share. These are decent numbers. they're not positive but decent I think what's freaking people out is right here as of November 8 2022 which is election day which is today as I'm filming this live AMC has sold approximately 14.9 million shares of AMC preferred Equity units and has raised net proceeds of approximately 36.4 million. They have the ability to go up to 425. if you do the math, that's roughly 3.5 ish percent. That means they have a long way to go. When this first came out and I said hey folks, it's going to take months, everyone's like no, no, no, no, no, no, no, no, they're going to be done with it so lickety-splickety Um, this is what we're dealing with right now. they are 3.5 of the way. That's how far of the way they are with this ape. Dilution Dilution pushes stocks down I know if you read Adam Aaron's tweets I know if you read your favorite Reddit post I Know if you listen to some of these YouTubers who are telling you it's gonna squeeze tomorrow that they're telling you Oh no, no, Dilution's good Solution pushes the stock price up. It doesn't How does increasing Supply at the same level of demand push it up that? That's just illogical. They didn't show up to the first day of their Econ class in 10th. Grade Right now, there is a very low chance we're talking about a snowballs chance in hell of eight performing wallets being actively diluted. Because think of it, on any uptick, any uptick, they're gonna sell more shares into it. How can something squeeze when they have roughly what 400 plus million left to sell into it? How is something gonna rip when they're just gonna keep selling and selling and selling. And this isn't the short selling, this is the company selling. These are basic things in the world of Wall Street and business that is flying over the head of so many people who are just like blowing smoke up your ass. Let's Rock Entertainment! Third Quarter 2022 Earnings Conference Call: During presentation, all participants will be in a listen only mode and afterwards we'll conduct a question and answer session at that time. If you have a question, please press the one followed by four on your telephone. If it anytime during the conference you need to reach an operator, please press Star Zero! Today's call has been recorded Tuesday November 8 2022 and now I'd like to turn the conference over to John Meriwether Please go ahead, thank you Scott Good afternoon everyone! I'd like to welcome everyone to Uh AMC's Third Quarter 2022 Earnings webcast with me this afternoon is Adam Aaron our chairman and CEO and Sean Goodman our Chief Financial Officer So before I turn the call uh and the webcast over to Adam let me remind everyone that some of the comments made by management during this webcast may contain forward-looking statements that are based on Management's current expectations. Numerous risks, uncertainties, and other factors may cause actual results to differ materially from those that might be expressed today. Many of these risks, and uncertainties are discussed in our most recent public filings, including our most recently filed 10K and 10q. Several of the factors that will determine the company's future results are beyond the ability of the company to control or predict. In light of the uncertainty is inherent in any forward-looking statements, Listeners are cautioned to not Place undue. Reliance On these statements, the company undertakes no obligation to revise or update any forward-looking statements. Whether as a result of new information or future events on this webcast, we may reference non-gaap Financial measures such as adjusted Ebitda, constant Currency, Operating Cash Burn, among others. For a full reconciliation of our non-gaap measures to Gap results, please see our earnings release posted in the Investor Relations section of our website earlier today. After our prepared remarks, there will be a question and answers session. This afternoon's webcast is being recorded and a replay will be available in the Investor relations section of our website at Amctheatres.com later today. With that, I'll turn the call over to Adam Thank you Joan Good afternoon everyone and thank you for joining us today. even with the third quarter financially being flattish. We Join you on this call today. Brimming with confidence that the recovery of AMC entertainment is well underway. AMC welcomes more than 53 million guests to our theaters around the world in Q3 of 2022, a 33 increase compared to the third quarter of 2021.

on our last quarterly webcast, we were encouraged that the July industry-wide domestic box office was down only 12 percent from the pre-pandemic July of 2019, but we also did predict quite correctly that there would be a dearth of big movie titles being released in August and September of this year. Even so, we also were a bullion about the movies coming out in the fourth quarter of 2022 and in calendar year 2023. and that is precisely our view again today. Despite a lackluster August and September, we're seeing that the industry-wide box office is already on a rebound, both domestically and globally, clawing and climbing its way back in. looking at the fourth Quarter of 2022, it's worth noting that Warner Brothers Black Adam released in mid-october had the highest domestic box office opening weekend gross of all time for any movie featuring Dwayne Johnson as a leading man. I Also can confirm today that our Advanced bookings at AMC and Odeon for Black Panther Wakanda forever are frothy and robust. We are about as certain as we can be that the so-called Black Panther 2 will be one of the biggest movies of the year, and that its ticket sales might even cause it to rise as high as the second biggest movie of 2022. behind only Top Gun Maverick and of course Q4 will continue with Disney's Strange World with James Cameron's Avatar The Way of Water and with Damien Chazelle's Babylon Anchored by a strengthening fourth quarter of 2022, let's get a better sense of this recovery by briefly going back to the beginning: Recall that when the pandemic hit the scene in early 2020, the industry-wide domestic box office, which is the basic measurement of the size of our industry sell by more than four-fifths for the full year of 2020, leading to the lowest box office grosses since 1981. But in comparing to 2020, the domestic box office more than doubled in 2021.. our expectation for the full year of 2022, when this year is all over is at the domestic box office will have dramatically risen and increased yet again by not quite, but almost by 75 percent. And while no One's crystal ball is perfect as far in advance, based on our analysis of the movie titles currently expected to be released in 2023, we think that next year's box office should grow yet again by between 15 and 25 percent, and possibly by even more. Our confidence in looking ahead stems not only from a growing industry-wide box office, but also because of the demonstrated agility of the AMC boarding management team to skillfully navigate our way through crisis. Since the beginning of the pandemic, we have taken bold and decisive steps to ensure a recovery for AMC entertainment by taking action after action after action, to enhance our marketing appeal and our operating profitability while at the same time brilliantly raising capital over the last two and a half years, AMC took in some 2.2 billion dollars of new Equity proceeds and another 2.6 billion dollars of debt financings. In addition, we were able to amicably amicably negotiate almost a billion and a half dollars of further benefit from asset sales, government support, and concessions from both our lenders and our theater landlords accordingly. At the end of the third quarter, AMC adjusts under 900 million dollars of liquidity. Having ample liquidity is a Bedrock of strength. We will use ours both to continue to grow, but also to continue to deliver. Our smart financing activities include the recently announced refinancing just a few weeks ago of our 400 million dollar Odeon Term Loan in Europe taking the debt paid off to 144 million dollars so far this year in total, and there is also the introduction of our preferred Equity units or Apes in August In launching them, we said that the creation of Apes was nothing nothing less than an all-defining moment in AMC's future as it gave us a new currency to help AMC to grow to deliver and to raise capital. We also said at the time to those who feared mindless delusions that we would treat our new am a preferred stock so we would treat it as precious and we will continue to do so. So far, we have raised only 37 million dollars of equity proceeds from the sale of Apes into the market. We have indeed been careful as to Apes Specifically, each AMC preferred equi-unit was designed with essentially similar economics and voting rights as an AMC common share. But markets are markets. They act on their own accord and they are out of our direct day-to-day control. Even so, we continue to be convinced that over time the availability of Apes will serve their purpose for AMC Entertainment well, to help AMC to grow, to deliver and to raise capital. Taken together, all the actions that we've taken have allowed AMC Entertainment to successfully navigate our way through the impact of the covet pandemic, and by contrast, we did so. while several of our competitors both big and small were forced into bankruptcy protection or some other form of reorganization or liquidation in 2021 and 2022, we wisely pruned our Circuit by adding theaters where it made sense to do so, and by aggressively shedding about seven percent of our theaters. Indeed, AMC and Odeon permanently closed old or tired buildings with marginal or negative profitability that had reached the end of their productive life cycles. At the same time, though, we also been able to grow our Network by profitably adding attractive theaters either built from scratch and appealing locations or those picked up from our competitors who may have stumbled. I should point out that with 900 million dollars of quarter ending liquidity, our eyes are keenly open to new such opportunity as it may arise, tempered only by my previous comment that preserving ample liquidity and the Levering are also High priorities for us. We also have a number of bold ideas about how we can broaden our business, which I will talk about specifically later on this call. So that's where we are two and a half years into our Covid-19 journey. We're not out of the woods yet. Well The box office is unmistakably on the rise. It's still falling short of pre-pandemic levels. Adding to all that, inflation is rampant and interest rates are Marching upwards. In summary, though, as I said at the beginning of this webcast, we are brimming with confidence. We know what we're doing and we will manage AMC with all of our skill and determination as we strive to rise to the challenge. With that, I'm going to pass the call to Sean Goodman our CFO. After that, I'll come back to talk about some key developments and answer your questions. Thank you Adam and thank you to everyone for joining us this afternoon! While the third Quarter started off struggle, August and September were as we expected, relatively quiet. Nonetheless, the Quarter still saw Revenue growth of 27 percent and that number's 32 percent in constant currency when compared to the third quarter of 2021..

comparing Q3 2022 to the priors third Quarter, the growth and revenue was offset by box office concentration. with a resulting increase in form exhibition costs, a reduction in government assistance, and inflationary cost pressures. The result for the quarter was a small Consolidated adjusted ebitter loss of 12.9 million dollars compared to a 5.3 million dollars loss a year ago. Note that our domestic adjusted ebitdon Q3 of 1.2 million dollars was an improvement of 31.3 million dollars compared to the prior year, while the international business, which enjoyed meaningful government assistance in 2021 experienced an adjustable loss of 14.1 million dollars compared to adjust the debitar of 24.7 million dollars a year ago. Now, let's just step back and look at our recovery over the last nine months. You to date Consolidated adjusted Evita is a positive 32 million dollars compared to an adjusted ebitter loss of 450 million dollars for the same period, a yoga that's approaching a half a billion dollars of adjusted ebitda. Improvement So far, this year, as has consistently been the case in this recovery period, our per guest performance metrics remain markedly better than pre-pandemic 2019. Wow! For Q3 2022 on a Consolidated basis, total revenue per Patron was 18.21 approximately 21 higher than Q3 of 2019. this was driven by admissions revenue for Patron growth of 12, food and beverage Revenue per Patron growth of 30 and other Revenue growth per patron of 48 all compared to the third quarter of 2019. taking a closer look in the domestic Business admissions Revenue per Patron increased by 15 compared to 3 2019 to 10.90 and our international business achieved a two percent increase to eight dollars and sixty cents normalizing for the strength of the US dollar compared since 2019. International admissions revenue for veteran increased by 10 in constant currency. From the food and beverage perspective, we continue to enjoy exceptionally strong food and beverage Revenue per Patron in our domestic markets food and beverage food and beverage spend per Patron and the third quarter was seven dollars and 11 cents. That's 33 percent higher than average spend in pre-pandemic Q3 2019, and in the international business, food and beverage spend per Patron was four dollars and ten cents. That's nearly 15 percent higher than Q3 of 2019, and nearly 24 percent higher on a constant currency basis. Finally, domestic other Revenue per Patron increased by 54 and international other Revenue per Patron increased by 37 and 48 in constant currency. going forward, We are focused on continuing to drive strength in these key performance metrics through one on growing development of our industry-leading AMC app website and loyalty programs; two enhancing the guest experience including our Innovative food and beverage offerings, three providing the very best possible Sight and Sound experiences through premium offerings such as IMAX Dolby, Cinema and Inc crime, and four growing Revenue through diversification initiatives such as renting out our theaters during off-peak times, marketing and promotion initiatives, all of the above to be achieved while paying very close attention to our operating efficiency. Note that Premium Formats attendance represented 14.9 percent of domestic attendance in Q3 2022, compared to 12.6 percent in the third quarter of 2019.. And in our International markets, premium format, attendance represented nine percent compared to Eight Point four percent in the third quarter of 2019..

let's talk about the balance sheet now. We ended the quarter with liquidity of 896 million dollars. This is comprised of 685 million dollars of cash and cash equivalents and 211 million dollars of undrawn credit facilities. As anticipated and discussed during last quarters: earnings webcast Cash Burned This quarter was adversely impacted by the relatively quiet box office in August and September together with seasonal working capital requirements. Our working capital will naturally come under pressure when a relatively strong quarter is followed by a weaker quarter, and Q3 was no exception. Operating cash burn for the quarter represented cash burn before debt servicing costs and before deferred rent payback was approximately 179.2 million dollars. Looking ahead, we expect our cash burn to improve in Q4 with a return to positive operating cash generation. Regarding Capital allocation, our priorities remain unchanged: One maintaining sufficient equality to manage through the recovery phase of our business, to strengthening our balance sheet by extending maturities, reducing debt and reducing Associated interest costs. Three, investing in our business to enhance the guest experience and for opportunistically pursuing value in hospital initiatives, including those that lead to diversification of our business. During the third quarter of 2022, we strengthened our balance sheet by repaying approximately 23 million dollars of deferred rent, reducing our Defender imbalance to approximately 196 million dollars. Recall that back in March 2021, this balance was more than 470 million dollars, and over the last 18 months, we've lowered our deferred rent liability by nearly 275 million dollars. In 2022, alone, deferred rent has been reduced by approximately 119 million dollars. We expect to further reduce this deferred rent balance during Q4 by another approximately 50 million dollars. in addition to the reduction in deferment. As Adam noted, we have taken further actions during the year to extend that maturities and reduce our debt balance. The net result is at approximately 144 million dollars, reduction in the principal amount of interest-bearing debt outstanding, and an extension of debt maturities through to 2026.. All told, if we include the decrease in deferred rent, we've actually reduced our debt liabilities by a total of approximately 263 million dollars. So far, This year, Capex net of landlord contributions was 44 million dollars per quarter, and for 2022, we continue to expect Capex to be in a range of 150 to 200 million dollars. Actively managing our theater portfolio continues to be a priority. During the third quarter, we added four new theaters and closed eight. This brings the total number of locations closed since the pandemic began to 106 and the total new locations opened to 49 for a net reduction of 57 locations. The combined 49 new locations continue to substantially outperform 106 closed locations and also our perform our underwriting expectations. We continuously seek opportunities to strengthen the balance sheet while simultaneously weighing the liquidity needs of our ongoing recovery. and as the steps that we have taken Today's Show we are ready to take action as attractive opportunities arise. And with that, I'll hand the call back over to Adam to review some exciting recent announcements and provide an update on our strategic initiatives. Thank you Sean Before we head to your questions, I'd like to debunk a few myths, but also to to address what I think is the single most important topic facing the movie theater industry of today as well as several operational environmental and Business Development Concepts directly on the horizon as we continue to innovate at AMC Since the pandemic first arrived, the Press has been filled with three concerns the conventional wisdom has repeatedly insisted would be existential threats to moviegoing in theaters: fear of infection of the coronavirus disease, the rise of streaming services, and the collapsing of exclusive theatrical windows on the disease risk. Thanks to vaccines, medicines that deal with covet-like medicines to deal with covet like Paxilavid and the fact that so many people have antibody protection because they already experience the covet infection, dealing with Covid now has transitioned from pandemic to endemic. It's now more like the seasonal flu, which has been with us for more than a century since it was a killer pandemic in the early 1900s. People will still come down with Coven 19. but it's no longer the Commerce destroying thing that it was back in 2020 and 2021. Life is returning to normal. Risk one dealt with on the streaming services. Risk: We have long said that the consumer's voracious appetite for content is big enough for movie theaters and streaming services to co-exist harmoniously together. The results from Spider-Man no Way Home last winter from Top Gun Maverick This past summer and from the expected big Grocers this weekend from Black Panther Wakanda Forever will again remind us all that movie theaters can thrive. Even with the consumer having a multitude of streaming services that are choices as well as opposed to streaming, we think there are potential ally for AMC entertainment. This month, for example, we're showing our first ever Netflix movie at AMC the sequel to Knives Out. We recently announced that we will be showing Paramount pluses Smash Hit Yellowstone in our theaters. Last December we played Amazon's being the Ricardos which start our very own heroine Nicole Kidman and of course Mzn also. so and of course Amazon also now owns MGM whose movies appear prominently on our AMC big screens. Theaters and streamers can Thrive simultaneously and can Thrive together. risk two dealt with. And as for the risk of collapsing windows during the height of the pandemic, several Studios experimented with going to simultaneous home and theatrical release or found themselves forced to sell out movie titles that originally were Bound for theaters but which went elsewhere instead. Fortunately for us, Studios appear to realize how much boundless money they can make by taking their films to movie theaters first. While there may be an occasional exception here there, our industry has coalesced around an exclusive 45-day window for theatrical release. Hopefully that will turn out to be acceptable for studios and acceptable for theaters to both do well Risk 3 Dealt with. At this point, there is only one topic that should be on the top of All Mines and the tip of all tongues. Not the coronavirus. It's not streaming talking about it's not Windows It is this movie theater operators need more movies because a pandemic induced production delays. Is he going to make the numbers? Big movie titles being released by the major Studios is still down considerably down 20 to 30 percent versus pre-pandemic norms. we eagerly await More film product to show. but I also can report to you today that we are seeing considerable progress on this front every few months I have the opportunity to meet in person with the leaders of all the major Studios in Hollywood over and over again. I'm hearing from them that they are doing all their power to pick up the pace of the number of movies that they will be releasing theatrically going forward. That's the major challenge facing the movie industry right now. Above All Else And there can be optimism that more movie titles rather than fewer movie titles are in our future. Let's turn back to AMC initiatives. There are seven that I'd like to address directly and update you on. CE. Given the financial struggles of many other companies within our industry, our eyes are wide open to opportunity that may arise for AMC. There is nothing further to report to you today on this subject, but know for sure that we are paying close attention. Two, at our existing theaters, we're doing an enormous amount of business on our premium large large format screens. So we're doing all that we can to renovate existing screens and increase the number of IMAX, Dolby, Cinema, Prime and iPhone screens at our AMC and Odeon theaters. Three, we have started the multi-year installation of laser projectors broadly across thousands of auditoriums. In the AMC system, they dramatically brighten and sharpen the images on our screens, thereby greatly improving the movie going experience for our guests. Laser projection is also the biggest single green initiative that AMC has ever launched as they decrease energy consumption and they eliminate the need to dispose of depleted halogen bulbs in landfills. Four, Just yesterday, we announced a truly exciting partnership with Zoom in our view, the world's leading video communications platform to enter into the multi-billion dollar meetings Market for corporate and other meetings. With this new partnership, we are able to offer meeting organizers The Best of Both Worlds the spectacular Communications technology of Zoom combined with the Comfort size scale and state-of-the-art Sight and Sound capabilities of AMC's centrally located theaters, these new Zoom rooms at AMC are an all new product that will be available in as many as 17 major cities across the United States starting sometime in 2023.. using a Zoom Room at AMC Meeting and event organizers will be able to bring together decentralized workforces or customer bases in significant numbers of people from different markets, but together at the same time for a cohesive, both virtual and in person meeting experience. It is not a well-known fact, but already right now AMC does about 20 million dollars a year of meetings business and that's limited to one movie theater at a time without the cross opportunity to link up through Zoom technology theaters in multiple markets Simultaneously, we're optimistic about the growth in revenues that we can generate from the very substantial meanings. Market Additionally, we're in the final throws of development of an AMC branded credit card. so item Five on my list of seven I Am pleased to tell you today that we firmly expected our new AMC branded credit card will be launched in the first quarter of 2023. If not sooner, we could not be more excited about the progress we've made in getting to this point. Full details to come when we launch Six Much also has been written about AMC's coming entry into the multi-billion dollar popcorn. Market Our food and beverage and marketing teams have made great strides in product development, in packaging and in our distribution plans. I Fully expect that in partnership with a major national retailer. AMC Perfectly popcorn will be on the shelves at grocery stores around the United States in the first half of 2023..

our AMC brand is credible residents amongst consumers of popcorn and we can't wait to see the smiles on your faces as you get to see AMC popcorn in a store near you. And lastly, update number Seven, let's briefly tell you about developments recently at Highcroft Mining. Just last week, High Crop reported the second round of results from its drilling expiration program the biggest bus exploration program on the highcraft mining site in Northern Nevada in nearly a decade as was the case when the first round of exploration results were announced Highcroft uncovered more gold and more silver in them, the Hills and a violent how much more Highcroft has been finding ore deposits that are of significantly higher grade numbers. Recognizing the vast potential of the Highcroft asset, if the company were appropriately capitalized, the results to date are extremely encouraging. I have to admit to being amused how receptive our shareholders were to our investor in Highcroft and by contrast how astounded Wall Street professors were to that same announcement accordingly. While there's no certainty in life, nothing would give me more pleasure someday, well down the road than to report to you the degree to which we can monetize our high crop investment hopefully in eye-popping numbers. In closing, we didn't see very much appreciate the support that we continue to get from our passionate shareholder base. and let me say personally that it's been a particular honor for me to meet with many of our shareholders one-on-one at the movie screenings I've personally been hosting around the country and as of next week across the globe as my 11th suck screening will be for the movie of The Hour of the much anticipated Black Panther Wakanda Forever at the Odeon Lux Holloway Cinema in London this coming Monday night November 14th Sean Let's now move to questions both from our shareholders and from industry analysts. it's felt with questions from our shareholders uh, thank you to them for submitting their questions. I've grouped the questions into three categories. so the first category uh Adam is Innovations and the first question there is where do you see AMC expanding in the future and what categories of Innovations are in the pipeline to enhance the business. So these items were sort of addressed in my earlier prepared remarks um, number one within our existing theaters. The amount of business that we do in our premium large format screens is significant sometimes on our opening weekends, even though our premium format screens represent only 10 percent of our auditoriums, Sometimes they're producing as much as 50 of the gross of our films across the network, so it makes sense for us to increase the number of Premium format large format screens in our system. Uh, and that we are doing, we're going to introduce more iMac screens, More Adobe Cinema screens, More eye sense screens and more Prime screens. So that's happening. Uh, Second, Foxy snacking on in terms of Innovation again. I Mentioned it in my prepared remarks, but I Can't say enough how big it is that we're deploying about a quarter of a billion dollars of resource to introduce laser projection in about half of our auditoriums. The this is a technical term, but the so-called light levels inside a movie theater with laser projection of contrasted with a halogen bulb, it goes up by between 50 and 100 percent. It means the pictures on the screen are sharper, they're brighter, and therefore the movie watching experience is that much better. We're always going to want to create an environment in our theaters. Uh, that makes a consumer want to get off their couch at home and come out to a theater and brighter sharper pictures. Especially doing so in an environmentally friendly way is a good way to do that. And then the third major item of innovation for AMC is what we've been doing away from our theaters. Um, uh, things like the Branded credit card things like perfectly popcorn, things like Zoom rooms which is in our theaters but away from movie watching per se. These are all areas uh, where we think AMC will shine. Uh, going forward and it's not exactly innovation, but uh uh. you know you talked in your remarks about how we closed 100 plus marginal theaters that opened 50 new ones in the 50 new ones or make a lot more money than the 100 that we closed I Do continue to think that as the rest of the industry stumbles financially, we're going to see increased opportunity to grow our Network and take advantage of our various strengths. Next question here: Adam is a request for an update on AMC On Demand AMC On Demand which we introduced several years ago before the pandemic has always had kind of low um uh usage. uh and uh, candidly? Um, well, it's a good little product. Uh, I Think our money is better directed elsewhere and so the money that we have been investing to grow AMC Theaters On Demand is money. I Think that instead we ought to be putting in the Uh placing a significant number of branded credit cards or taking popcorn to the home popcorn market. So I think that as we look to 2023, uh, we're going to look to either phase out AMC Theaters On Demand or alternatively, joint venture with another party to offer that same capability to our guests. but not only, but not necessarily to investment spend uh to build it up ourselves. So I mean it. It takes me to the point that at a time when dollars are precious because the recovery of the movie industry is has taken a considerable time, uh, you and I agree Sean that like we need to be laser focused on making sure that every dollar counts, cut every dollar of expenditure, increase every possible dollar of Revenue Back to best ideas: Uh, walk away from the ideas that may be intriguing, but maybe of lower grade priority. Two questions: Yeah, Thanks! Adam Two questions. Yeah that you did mention in your prepared remarks. but um, people are asking: when can I expect to see AMC branded popcorn on the shelves and what is the long-term potential of the partnership with Zoom So maybe you want to add a little bit more color? Sure, Um, you know Sean and I've been at many attention one recipe after another for our ready to eat popcorn and our microwavable popcorn. That's going to hit shelves in the first half of 2023.. we've seen the packaging which I think is beautiful. We've had numerous conversations with major national retailers and are getting, uh, really favorable response. People want to carry this product on their shelves? Uh, you're going to see it in the first half of 2023? Um I I I'm supposed to caveat everything because you never know what can go wrong, but my firm expectations is on the shelves. First half of the year I presume I Was in the hotel industry for a good chunk of my career. The meetings Market is a multi-billion dollar market. And for any of you who have gone to a hotel for a meeting and sat in their ballrooms or in their breakout rooms, their chairs are not comfortable when you compare the comfort of an AMC Signature recliner seat. So what you might get at a hotel, we beat them. Uh, traditionally we've only been offered to offer meetings at a theater as a standalone ending. Now, thanks to our partnership with Zoom, we're going to be able to link up theaters in city after City So that people who want to have a nationwide meeting and setting them to get everyone to fly on a plane and go to a convention City Uh, can do so simultaneously at our theaters? Yeah, Legit. The only one using the Zoom is going to be Mark's reaction when he fires yesterday. It's Zoom Why would people go to a theater? Well, they just sign in on Zoom Because like zoom's an amazing thing. As you know, we like, we run our whole company on Zoom for like two and a half years now. Um, but the the answer is when you've got 50 or 100 people in the city and you've got those 50 or 100 people in a dozen different cities, It's not the same thing to have 500 or a thousand little mini pictures on a zoom screen where everybody is alone either at their desks in the office or maybe at home or somewhere else signing into Zoom one by one by one by one. This gives us the best of both worlds because people can still Gather in a medium-sized group in in a city and be hooked up through really sophisticated Zoom technology. Uh, in another city or in another city, in another city, another city because we could hook up multiple cities. uh with no, no problem. and I Got to tell you, this idea was the idea of the CEO of Zoom who literally called us up and wanted to share with us his idea how Zoom could uh, make AMC Theaters a compelling entry into the meetings market. and the second we heard the idea, we were all for it. and we think the financial opportunity is Big Remember we already do 20 million dollars a year meetings, business and that's without the ability to link city after City at the same time so don't want to give a specific goal but hopefully that the the revenue opportunity is large. thanks Adam So a question about our operations, especially. um, what the fuck's going on this environment. What's going on? Inflation on our daily lives? How's this impacting AMC So um, for those of you who are under the age of 35 on this call, you probably don't even remember what inflation is. Yeah, but for those of us we're old enough to remember Jimmy Carter when he was president United States We lived through inflationary periods. Um, and uh. They stress the system because costs rise and if you want to know how much they raise costs, just look at what the national inflation rate is that tends to be the cost that everything goes up in the country. What's particular? So so in terms of a starting point, when you hear inflation statistics being reported nationally, you should assume that AMC's costs are going to go up by some more amount. Having said that, what is very unusual in AMC's case is that: uh, because the box office is on a path of recovery, the volumes that we're seeing in our theaters, the volumes of customers that we're serving is rising dramatically. Uh, and as a result, we pick up operating efficiencies and increased operating productivity because the number of guests coming into our theaters is coming down essentially because we're spreading our fixed costs over more people. So we're in the enviable circumstance that we've got a mitigating offset to inflation. The increasing productivity that comes from being able to spread our fixed costs over a larger customer base is offsetting a big chunk of the inflationary costs that would otherwise not be mitigated without this increasing volume of customers. Uh, for productivity games. And in the next Uh section, here is a couple of questions about the stock. and uh. The first one here is please explain why you believe the stock has gone down and why management has been generally silent on this matter. So so this is the biggest question of the day, isn't it? Let me start by saying I am a major AMC shareholder. Uh, it is an enormous part of my net worth and I venture to Guess that I personally own more shares than anyone listening on this call today. So I assure you that just as you watch the share price, how much I already cash out? Having said that, uh, in terms of decline, there are a lot of factors. These aren't the only reasons why the share price Has Fallen But look around at what's happened in the United States and for that matter, the planet over the past several months. Uh, there's a war going on in Ukraine which is not good for global stability. It's caused the surge in Energy prices. It's caused dramatic inflation, which in turn has caused the Fed to commit to raising interest rates. Uh, these are all Factor factors that have affected the market overall. Uh, in the case of the movie theater industry in early September Cineworld also declared for chapter 11. bankruptcy protection which also created a certain amount of agita around um, the movie theater industry and our share price. It also does depend on what your time frame is. Of course, because while the share price is lower than it was in, let's say June of 2021, it's still a lot more than it was in January of 2021. But what? I just said is about all you'll ever hear me say about our share price because you asked so like, why is management silent on this subject? Uh, there are things called Securities laws in the United States and if you're the CEO of a public company, it is much better for you to be talking about the state of the business than the state of the share price. And I Know this is frustrating to some of you who would like me to comment, uh, all the time. but Prudence says that our focus and our public Focus should be what we're doing to bring back the health of the business over the short, medium and long term. And that's what we should be talking about. And so that in fact is what we have been talking about. We said earlier in the year that you should never interpret silence as in action or indifference. Um, we are aware this subject is very important to you and to all of us as significant shareholders of the company. Having said that, our Focus and our public commentary is usually constrained. So what's in the best interest of the business? What's the future of the business? What are the risks and areas of the business And that's what drives our public commentary. Thanks! Adam And there's a follow-up here which is asking, uh, can we reverse that The ape shares uh, it's something that's legal to do Uh, but interestingly, um, uh, an accent like that would require a shareholder vote which should remind us of since there are many shareholders on this call. this is your company. Uh, day to day we run it. We do our best on your behalf, but on major topics of governance. Uh Cheryl devote is required and that would be one for example that we would have to take out to the shareholders for their opinion and their consideration and ultimately their decision. Right And then a question of disclosure. Here someone is asking, will you provide information on the number of shareholders and the number of shares that have been directly registered with the transfer agent Computer Share So for those who don't know what direct registration of shares is, our transfer agent is Computer Share And most of you hold stock through brokerages. Uh, some of you own stock that's directly registered with the company through our transfer agent. Um, a primary benefit I Suppose for you when you register your shares directly with the Uh transfer agent is that transfer agents do not allow for shorting of shares whereas uh, most brokerage firms do. And so what we've heard from some of you is that to make sure that your Shores cannot, your shares cannot be shorted. Uh, you want to register them directly with the company and a transfer agent. which is you are right as a owner of a public security. Um, we haven't given any uh guidance to any of you to do that or not do that, it's entirely your call. I Should point out it's a small number of people who've done it as best. I Can tell it's around 15 000 or so of our millions of shareholders who decided to directly register shares and um I I I think they registered in the neighborhood of 10 million shares or Apes uh with our registrar and what? I Um, here's one of these numbers that we should publicly release. So when we file our 10q for the third quarter, uh we're going to announce in the queue what the number of uh directly registered shares is excess and then uh, the last question that I have here um and then we can go into questions from endless is do you have any comments regarding the acquisition of Twitter Fight on Mask? who the fuck care Credit question? um all the questions uh I Had no idea that was coming. The funniest comment that I heard on Twitter uh in the past two years was you know the two great neem stock stocks are AMC and GameStop um uh and then there's musk and uh, the guy who runs uh AMC is Adam Aaron that begins with an A and Ryan Cohen begins with a C is A runs GameStop and of course is Elon Musk and somebody strung together that AMC was Aaron musk and Colin Quite something to behold. but Mr muff that is something. uh, that's that's science just taking control of Twitter Um, and I have no comment really one way or another, whether he will do a fabulous job owning and running Twitter or not. Um, but what I can tell you is that the asset that he bought meaning Twitter two most incredible Communications tool that I've ever seen. Uh, And if you just look back over the last, what is now a year and a half that I've actively been tweeting uh with our shareholder base, we've been able to convey uh, hundreds and hundreds of important messages to you all about what's going on in our company. and I've been able to read literally hundreds of thousands of inbound comments back to us. I spent about an hour a day on Twitter mostly reading what you have to say and I learned so much about what's on your mind. And of course, Twitter also gives us the opportunity not only to learn by listening from you, but also to share information with you and share news with you. And so I I I continue to be astounded by how impactful and Powerful Twitter is as a Communications vehicle. And I hope that Elon Musk does good things with Twitter because um, it's a very valuable National Asset if it's run well, Uh, with that Uh, I guess Scott the operator uh, can you see if there are any questions? Whichever one of you did ask that question, go fuck yourself. That was such a waste of time. We are all done. Please press the one followed by the four On your telephone, you will hear a three-tone prompt to acknowledge your request. If your question has been answered all your registration, please press the one followed by the three. If you are using a speaker phone, please lift your handset before entering your request. Once again, that's one four to register four questions. One brief moment for the first question and we have a question from the line of Jim Goss with Barrington research, please go ahead. your lines open. Uh, good afternoon Adam Um hello Jim how are you doing? Uh, we're all good I Thought I'd ask you about the stubs A-list It's been sort of not relevant for the past couple of years as the uh, the content and everything has been under pressure. But I wonder if you might talk about whether you have a plan to revive it? make it more relevant as the the amount and mix of content improves and where it might stand. right now. What is your starting point? Sure, Um, the Um A-list was you know, for those of you aren't totally familiar. hey, this is our subscription program. Up to three movies a week for a fixed price of between 20 and 25 dollars a month. Basically, um, well it when we launched the program in June of 18..

it instantly took off and it popped up to as much as 15 of our total movie going in the United States And we have a similar program by the way, in London called Limitless at our and in Germany at our Odeon theaters in the UK and our UCI theaters in in Germany Uh, in Europe The the Limitless program has grown considerably. Um, and uh, back in the height of the pandemic when our theaters were all closed. Obviously, there was nobody paying us 25 a month to go see three movies a week because all the theaters were shot. So we put AMC A-list on pause in the United States and cranked it up. Um, uh, last year. The the good news is we're already back to between six and seven hundred thousand A-lifters Wow. Zero, Six to seven hundred thousand. Uh, and again, that's the kind of shit they should be telling us. You know, ten to fifteen percent of our total movie going um is coming from A-list members. So the the Alif numbers have continued to rise from the second that we unpause the program. Uh, if you look at A-listers as a percentage of our total moviegoers, it's It's kind of on par with where it was prior to the shutdown. Uh, and we intend to be very aggressive going forward to continue to attract uh people to the program. Okay, the one okay I might ask? Yeah, sure goes. Go ahead. Jim Thanks now I Was thinking with alternative content uh you've tried. You've had an opportunity to try a number of things for the same reason the fears have been under pressure. I'm wondering if there are any any things you've shown on your screens that you think have some promise to be more than just better than nothing else. Uh, yes is the answer to your question. So um, we had good success with the concerts that we showed whether they were live or taped with good success with WWE and UFC events. Um, and we've experimented with some professional sporting events. for all those things concerts, the the, the, the various sporting events, we need to secure what are called rights, broadcast rights from the leagues or the owner of the IP And in all cases we were encouraged by the results and so we will be on a path to try to negotiate rights with the various IP holders so that we can grow our alternative content going forward. All right. Thanks a lot Thank you Jim Operator am I correct Scott We're done with questions for the day. Uh, correct. There are no further questions at this time. Great! So to all of you joining us today, Thank you I think I'd like to close the call with two thoughts I Said in my opening remarks that we're brimming with confidence as we look at the recovery path that AMC is on. Uh, that's the first comment. The second comment is to keep us continued to be continuing to be encouraged and brimming with confidence. Black Panther Wakanda Forever. Black Panther Wakanda Forever. Black Panther Wakanda Forever. It's going to be a big weekend in the movie theater business. Um, and we're excited to be talking to you today just ahead of this new very big movie being released theatrically. Thank you for joining us. We'll look forward to talking to you again next quarter. That conclusive? Well, that happened that we at least know that Adam Aaron spends an hour a day on Twitter That's useful information I suppose. Um, starting to think that maybe there's a more, uh, efficient way to spend your time when you're leading a business. But I guess that's not my call to make foreign. Yeah, um, well that was AMC's Make It or Break It moment folks. Oh fuck me man. Black Panther Wakanda Black Panther Wakanda Forever Black Panther mm-hmm Well, that's an hour and a half of our life that we're never going to get back. Like they fucking said nothing they've been on. Revenue They beat on earnings per share. They're still going to dilute the absolute metric fuck out of the company and that's where we're at. It's going to be interesting to see how the sycophants stand up for this one. Gonna be something bad is shorting AMC no I mean I own AMC I own ape. You can see it, it's publicly available I Have no options. it's this is fucking painful. If I was shorting AMC I'd probably be like yo I'm making some money right now but I'm not I'm long which means I'm losing the money and I'm losing a lot of money when Moon Who the fuck knows Dude, this is this is something. this is something. Fuck dude. they didn't say anything they didn't like. they literally didn't say shit. uh we have uh partnered with the Zoom I cannot count the amount of times per day people come knocking on my door and they say Adam You know what we would love? We would love to get everyone who is working remotely and also in the office. We want them to go from location A to B and B would be your theater where they can join in a zoom call that they could do from their computer anyway because what Everyone likes more than a zoom call where they could do it all individually. It's just two big rooms. the zoom calls together. Massive, massive, massive demand. The only person who's going to do a zoom call for a company is Facebook That's what they're going to use to fire everyone. They're gonna be like yo. Let's just get them all into a theater and tell them once that they're fired. So I don't have to awkwardly write them an email. That's who's gonna be a zoo they partnered with Zoo reached out to us. okay, what the fuck are we supposed to do with that dude. Oh man, oh man. A Zoom room. That's it. That's their big. Their big announcement to us is, we're uh, we're partnering with Zoom. That's crazy. Well, hopefully next quarter is a little bit better. Even a smidgen I'll take at this point in time. Whatever. Whatever. Whatever. whatever. I'll be post and now I know how to Adam Aaron feels. uh I'll be streaming again tomorrow morning 9am. We're gonna crush it. Uh, be there. Be there. Be square. Matt Thank you for streaming. Hope this is the end of AMC Talk A has clown ideas and clearly unprofessionable. What a joke of an earnings call. This is the time I pivot into a Fitness Dynasty I am now a fitness influencer from yesterday to today I've lost one pound. This is the start of my fitness journey. You'll probably be seeing me on Mr Olympia stage within two to three weeks. Two to three weeks. that could be. Uh, how we're gonna do it. Anywho, that's what I have for you. See you at 9am tomorrow have a B-e-a beautiful evening Who so foreign.