Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Regal Entertainment Group (RGC), Cinemark Holdings, Inc. (CNK): Break Out the Popcorn! AMC Is Going Public

 After its purchase by a Chinese conglomerate in September 2012, AMC Entertainment Holdings has announced that it is going public. Dalian Wanda Group Co. bought AMC for $2.6 billion and assumed $2 billion of the company’s debt; the IPO is not expected to affect its majority control. Dalian expects to hold an undisclosed number of Class B shares, which carry three times the voting power of the Class A shares offered to the public. The second largest movie theater operator said it plans to list on the New York Stock Exchange under the symbol “AMC.” The number of shares that will be made available for purchase was not disclosed .

Regal Entertainment Group (NYSE:RGC)

AMC operates in the top 50 movie markets in the U.S. It has the number one or two spot in terms of market share in the top 15 markets, which include New York, Los Angeles, Chicago, Philadelphia, San Francisco, Atlanta, and Dallas. The company is known for its innovation in the entertainment industry and it operates 22 of the 50 highest grossing theaters in the U.S .

What will the IPO proceeds be used for?

AMC tried to go public in 2007 and 2010, but withdrew its offer both times. If AMC follows through this time around, the IPO proceeds will be used to pay off debt and support capital spending. By the end of 2012, 344 theaters, or 4,988 screens, fell under the AMC umbrella.

For 2012, AMC’s net earnings increased to $58 million from a net loss of ($242.5) million in 2011. The improvements were attributed in part to improvements in admissions and concession revenues; gains from the disposition of theaters in Canada and the U.K.; lower interest expense and investment losses; and lower charges for financing costs .

Regal’s recent acquisitions have improved revenues

Regal Entertainment Group (NYSE:RGC) is larger than its rival AMC and operates 7,340 screens in 576 theaters. Similar to AMC, Regal Entertainment Group (NYSE:RGC) has theaters in 46 of the top 50 U.S. designated market areas. The company attributes its success to competitive strengths such as management’s focus on cost controls and a distribution supply chain that drives concession margins. Regal Entertainment Group (NYSE:RGC) has enhanced revenues through acquisitions and by operating a strong theater portfolio. The majority of its theaters feature stadium seating and house 10 or more screens .

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.