| Schedule of financial information by reportable operating segment |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | Revenues (In millions) | | June 30, 2024 | | June 30, 2023 | | June 30, 2024 | | June 30, 2023 | U.S. markets | | $ | 815.9 | | $ | 1,087.4 | | $ | 1,505.0 | | $ | 1,791.9 | International markets | | | 214.7 | | | 260.5 | | | 477.0 | | | 510.4 | Total revenues | | $ | 1,030.6 | | $ | 1,347.9 | | $ | 1,982.0 | | $ | 2,302.3 |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | Adjusted EBITDA (In millions) | | June 30, 2024 | | June 30, 2023 | | June 30, 2024 | | June 30, 2023 | U.S. markets | | $ | 49.3 | | $ | 174.8 | | $ | 21.7 | | $ | 185.7 | International markets | | | (19.9) | | | 7.7 | | | (23.9) | | | 3.9 | Total Adjusted EBITDA (1) | | $ | 29.4 | | $ | 182.5 | | $ | (2.2) | | $ | 189.6 |
| (1) | The Company presents Adjusted EBITDA as a supplemental measure of its performance. The Company defines Adjusted EBITDA as net earnings (loss) plus (i) income tax provision (benefit), (ii) interest expense and (iii) depreciation and amortization, as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of the Company’s ongoing operating performance and to include attributable EBITDA from equity investments in theatre operations in International markets and any cash distributions of earnings from its other equity method investees. The measure of segment profit and loss the Company uses to evaluate performance and allocate its resources is Adjusted EBITDA, which is broadly consistent with how Adjusted EBITDA is defined in the Company’s debt indentures. |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | Capital Expenditures (In millions) | | June 30, 2024 | | June 30, 2023 | | June 30, 2024 | | June 30, 2023 | U.S. markets | | $ | 33.8 | | $ | 36.8 | | $ | 65.5 | | $ | 71.4 | International markets | | | 10.8 | | | 11.8 | | | 29.6 | | | 24.6 | Total capital expenditures | | $ | 44.6 | | $ | 48.6 | | $ | 95.1 | | $ | 96.0 |
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| Schedule of information about the Company's revenues from continuing operations and assets by geographic area |
| | | | | | | | | As of | | As of | Long-term assets, net (In millions) | | June 30, 2024 | | December 31, 2023 | U.S. markets | | $ | 5,632.3 | | $ | 5,795.6 | International markets | | | 1,886.9 | | | 2,010.5 | Total long-term assets (1) | | $ | 7,519.2 | | $ | 7,806.1 |
| (1) | Long-term assets are comprised of property, net, operating lease right-of-use assets, intangible assets, goodwill, deferred tax assets, net and other long-term assets. |
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| Schedule of reconciliation of net earnings to Adjusted EBITDA |
The following table sets forth a reconciliation of net loss to Adjusted EBITDA: | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | (In millions) | | June 30, 2024 | | June 30, 2023 | | June 30, 2024 | | June 30, 2023 | Net earnings (loss) | | $ | (32.8) | | $ | 8.6 | | $ | (196.3) | | $ | (226.9) | Plus: | | | | | | | | | | | | | Income tax provision (1) | | | 0.7 | | | 0.4 | | | 2.5 | | | 2.3 | Interest expense | | | 99.0 | | | 102.6 | | | 200.2 | | | 203.7 | Depreciation and amortization | | | 78.8 | | | 96.8 | | | 160.4 | | | 190.4 | Certain operating expense (2) | | | 1.0 | | | (0.9) | | | 1.5 | | | 0.2 | Equity in earnings of non-consolidated entities | | | (1.0) | | | (0.8) | | | (4.7) | | | (2.2) | Cash distributions from non-consolidated entities (3) | | | 1.6 | | | 1.7 | | | 2.9 | | | 1.7 | Attributable EBITDA (4) | | | (0.7) | | | (0.3) | | | (0.1) | | | 0.2 | Investment expense (income) (5) | | | (6.1) | | | 5.1 | | | (11.2) | | | (8.4) | Other expense (income) (6) | | | (105.0) | | | (30.1) | | | (143.8) | | | 12.7 | Other non-cash rent benefit (7) | | | (10.7) | | | (9.0) | | | (22.4) | | | (18.6) | General and administrative — unallocated: | | | | | | | | | | | | | Merger, acquisition and other costs (8) | | | 0.1 | | | 0.6 | | | — | | | 0.8 | Stock-based compensation expense (9) | | | 4.5 | | | 7.8 | | | 8.8 | | | 33.7 | Adjusted EBITDA | | $ | 29.4 | | $ | 182.5 | | $ | (2.2) | | $ | 189.6 |
| (1) | For information regarding the income tax provision, see Note 8—Income Taxes. |
| (2) | 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. |
| (3) | Includes U.S. non-theatre distributions from equity method investments and International non-theatre distributions from equity method investments to the extent received. The Company believes including cash distributions is an appropriate reflection of the contribution of these investments to the Company’s operations. |
| (4) | 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 loss of non-consolidated entities to attributable EBITDA. Because these equity investments in theatre operators are 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. |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | (In millions) | | June 30, 2024 | | June 30, 2023 | | June 30, 2024 | | June 30, 2023 | Equity in (earnings) of non-consolidated entities | | $ | (1.0) | | $ | (0.8) | | $ | (4.7) | | $ | (2.2) | Less: | | | | | | | | | | | | | Equity in (earnings) of non-consolidated entities excluding International theatre joint ventures | | | (2.1) | | | (1.5) | | | (5.6) | | | (2.6) | Equity in (loss) of International theatre joint ventures | | | (1.1) | | | (0.7) | | | (0.9) | | | (0.4) | Income tax benefit | | | (0.1) | | | (0.1) | | | (0.1) | | | (0.2) | Investment expense | | | — | | | — | | | 0.1 | | | 0.1 | Interest expense | | | 0.1 | | | 0.1 | | | 0.1 | | | 0.1 | Depreciation and amortization | | | 0.4 | | | 0.4 | | | 0.7 | | | 0.6 | Attributable EBITDA | | $ | (0.7) | | $ | (0.3) | | $ | (0.1) | | $ | 0.2 |
| (5) | Investment expense (income) during the three months ended June 30, 2024 includes appreciation in the estimated fair value of the Company’s investment in common shares of Hycroft of $(0.4) million, appreciation in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft of $(0.3) million and interest income of $(5.4) million. Investment expense (income) during the three months ended June 30, 2023 included deterioration in estimated fair value of the Company’s investment in common shares of Hycroft of $3.2 million, deterioration in estimated fair value of the Company's investment in warrants to purchase common shares of Hycroft of $2.3 million, and interest income of $(2.5) million. |
Investment expense (income) during the six months ended June 30, 2024 includes deterioration in estimated fair value of the Company’s investment in common shares of Hycroft of $0.1 million, deterioration in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft of $0.2 million, and interest income of $(11.5) million. Investment expense (income) during the six months ended June 30, 2023 included deterioration in estimated fair value of the Company’s investment in common shares of Hycroft of $5.5 million, deterioration in estimated fair value of the Company’s investment in warrants to purchase common shares of Hycroft of $4.6 million, $(15.5) million gain on the sale of the Company’s investment in Saudi Cinema Company, LLC and interest income of $(4.8) million. | (6) | Other expense (income) during the three months ended June 30, 2024 includes shareholder litigation recoveries of $(19.1) million, foreign currency transaction gains of $(0.6) million and gains on debt extinguishment of $(85.3) million. Other expense (income) during the three months ended June 30, 2023 included a non-cash litigation contingency adjustment of $(1.2) million, foreign currency transaction gains of $(7.5) million, and gains on debt extinguishment of $(21.6) million. |
Other expense (income) during the six months ended June 30, 2024 includes shareholder litigation recoveries of $(19.1) million, gains on debt extinguishment of $(91.1) million, a vendor dispute settlement of $(36.2) million, and foreign currency transaction losses of $2.6 million. Other expense (income) during the six months ended June 30, 2023 included a non-cash litigation contingency charge of $115.4 million, partially offset by gains on debt extinguishment of $(86.7) million and foreign currency transaction gains of $(16.2) million. | (7) | Reflects amortization expense for certain intangible assets reclassified from depreciation and amortization to rent expense due to the adoption of ASC 842, Leases and deferred rent benefit related to the impairment of right-of-use operating lease assets. |
| (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. |
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