Answer To: 1. Perform Financial Statement Analysis of Stock Symbols AMC a CNK both within the same industry:...
Tanmoy answered on Sep 19 2021
Income Statement - AMC
AMC Entertainment Holdings, Inc. (AMC)
Income Statement 12/30/2020 % Change 12/30/2019 % Change 12/30/2018 % Change 12/302017 % Change
Total Revenue 1,242,400 100.00% 5,471,000 100.00% 5,460,800 100.00% 5,079,200 100.00%
Operating Revenue 1,242,400 100.00% 5,471,000 100.00% 5,460,800 100.00% 5,079,200 100.00%
Cost of Revenue 411,500 33.12% 1,977,800 36.15% 1,981,100 36.28% 1,856,400 36.55%
Gross Profit 830,900 66.88% 3,493,200 63.85% 3,479,700 63.72% 3,222,800 63.45%
Operating Expense 2,371,500 190.88% 3,257,400 59.54% 3,169,600 58.04% 3,014,400 59.35%
Selling General and Administrative 1,040,800 83.77% 1,120,800 20.49% 977,100 17.89% 927,800 18.27%
General & Administrative Expense 1,040,800 83.77% 1,120,800 20.49% 977,100 17.89% 927,800 18.27%
Rental & Landing Fees 884,100 71.16% 967,800 17.69% 797,800 14.61% 794,400 15.64%
Other G and A 156,700 12.61% 153,000 2.80% 179,300 3.28% 133,400 2.63%
Depreciation Amortization Depletion 498,300 40.11% 450,000 8.23% 537,800 9.85% 538,600 10.60%
Depreciation & amortization 498,300 40.11% 450,000 8.23% 537,800 9.85% 538,600 10.60%
Other Operating Expenses 832,400 67.00% 1,686,600 30.83% 1,654,700 30.30% 1,548,000 30.48%
Operating Income -1,540,600 -124.00% 235,800 4.31% 310,100 5.68% 208,400 4.10%
Net Non Operating Interest Income Expense -396,200 -31.89% -340,800 -6.23% -342,700 -6.28% -275,000 -5.41%
Interest Expense Non Operating 356,900 28.73% 340,800 6.23% 342,300 6.27% 274,000 5.39%
Total Other Finance Cost 39,300 3.16% 0 0.00% 400 0.01% 1,000 0.02%
Other Income Expense -2,592,700 -208.68% -66,600 -1.22% 156,300 2.86% -266,500 -5.25%
Gain on Sale of Security -116,300 -9.36% 19,400 0.35% 115,800 2.12% 25,600 0.50%
Earnings from Equity Interest -30,900 -2.49% 30,600 0.56% 86,700 1.59% -185,200 -3.65%
Special Income Charges -2,444,400 -196.75% -115,300 -2.11% -45,100 -0.83% -106,600 -2.10%
Restructuring & Mergers Acquisition 24,600 1.98% 15,500 0.28% 31,300 0.57% 63,000 1.24%
Impairment of Capital Assets 2,513,900 202.34% 84,300 1.54% 13,800 0.25% 43,600 0.86%
Other Special Charges -94,100 -7.57% 15,500 0.28% 0 0.00% 0 0.00%
Gain on Sale of Business 0 0.00% 16,000 0.29% 6,200 0.11% 22,600 0.44%
Other Non Operating Income Expenses -1,100 -0.09% -1,300 -0.02% -1,100 -0.02% -300 -0.01%
Pretax Income -4,529,500 -364.58% -171,600 -3.14% 123,700 2.27% -333,100 -6.56%
Tax Provision 59,900 4.82% -22,500 -0.41% 13,600 0.25% 154,100 3.03% 1.92%
Net Income Common Stockholders -4,589,400 -369.40% -149,100 -2.73% 110,100 2.02% -487,200 -9.59%
Net Income -4,589,400 -369.40% -149,100 -2.73% 110,100 2.02% -487,200 -9.59%
Net Income Including Non-Controlling Interests -4,589,400 -369.40% -149,100 -2.73% 110,100 2.02% -487,200 -9.59%
Net Income Continuous Operations -4,589,400 -369.40% -149,100 -2.73% 110,100 2.02% -487,200 -9.59%
Minority Interests -300 0 0 0
Diluted NI Available to Com Stockholders -4,589,400 -149,100 110,100 -487,200
Basic EPS -39.15 -1.44 0.91 -3.8
Diluted EPS -39.15 -1.44 0.41 -3.8
Basic Average Shares 117,212 103,832 120,621 128,246
Diluted Average Shares 117,212 103,832 130,105 128,246
Total Operating Income as Reported -4,102,700 136,000 265,000 101,800
Rent Expense Supplemental 884,100 967,800 797,800 794,400
Total Expenses 2,783,000 5,235,200 5,150,700 4,870,800
Net Income from Continuing & Discontinued Operation -4,589,400 -149,100 110,100 -487,200
Normalized Income -2,720,089 -65,763 47,177 -438,600
Interest Expense 356,900 340,800 342,300 274,000
Net Interest Income -396,200 -340,800 -342,700 -275,000
EBIT -4,172,600 169,200 466,000 -59,100
EBITDA 0 0 0 0
Reconciled Cost of Revenue 411,500 1,977,800 1,981,100 1,856,400
Reconciled Depreciation 498,300 450,000 537,800 538,600
Net Income from Continuing Operation Net Minority Interest -4,589,400 -149,100 110,100 -487,200
Total Unusual Items Excluding Goodwill -2,560,700 -95,900 70,700 -81,000
Total Unusual Items -2,560,700 -95,900 70,700 -81,000
Normalized EBITDA -1,113,600 715,100 933,100 560,500
Tax Rate for Calcs 0 0 0 0
Tax Effect of Unusual Items -691,389 -12,563 7,777 -32,400
Ratio Analysis 12/30/2020 12/30/2019 12/30/2018 12/30/2017
Long term debt to equity ratio 0.78 1.10 1.17 1.27
ROE -0.43 4.51 3.91 2.40
Net Profit Margin -369.40% -2.73% 2.02% -9.59%
P/E Ratio -0.31 -38.39 138.91 -12.73
Calculation of Intrinsic Value Valuation Model
Market Assumptions Cal Year Year Gr Rate FCF ($M) Term Value Total PV
Risk Free Rate (30 year Daily Treasury Yield Curve Rates) 1.65% 2021 0 5.00% 100,000 100,000
Market Risk Premium 5.60% 2022 1 5.00% 105000 105,000 96199
2023 2 5.00% 110250 110,250 92542
Equity Assumptions 2024 3 5.00% 115763 115,763 89024
Beta 1.33 2025 4 5.00% 121551 121,551 85640
Cost of Equity 9.10% 2026 5 5.00% 127628 127,628 82385
MV of Equity est ($M) 2858200 2027 6 5.00% 134010 134,010 79254
2028 7 5.00% 140710 140,710 76241
Debt Assumptions 2029 8 3.00% 147746 2474866 2,622,612 1301901
Pre-Tax Cost of Debt 11.65% Firm Value 1903187
Effective Tax Rate 18% Debt Value 356,900
After Tax Cost of Debt 9.56% Equity Value 1546287
MV of Debt est ($M) 356,900 Shares Outstanding 228,066
Intrinsic Value 6.78
Firm Assumptions Market Price/ Share (As on 28/12/2020) 2.12
Firm Value est ($M) 3215100
Debt to MV Ratio 11.10% Intrinsic Value is at 6.78 and is more than the market price per share at 2.12 as on 28/12/2020. Hence, AMC share is undervalued and is good for the investors to purchase the share of AMC.
WACC 9.15%
Initial Cash Flow (Assumed) 100,000
Long Term Terminal Growth Rate 3.00%
Balance Sheet - AMC
AMC Entertainment Holdings, Inc. (AMC)
Balance Sheet 12/30/2020 % Change 12/30/2019 % Change 12/30/2018 % Change 12/30/2017 % Change
Total Assets 10,276,400 100.00% 13,675,800 100.00% 9,495,800 100.00% 9,805,900 100.00%
Current Assets 487,000 4.74% 673,100 4.92% 781,300 8.23% 872,400 8.90%
Cash, Cash Equivalents & Short Term Investments 308,300 3.00% 265,000 1.94% 313,300 3.30% 310,000 3.16%
Cash And Cash Equivalents 308,300 3.00% 265,000 1.94% 313,300 3.30% 310,000 3.16%
Receivables 99,000 0.96% 265,900 1.94% 284,200 2.99% 298,000 3.04%
Accounts receivable 23,100 0.22% 160,300 1.17% 183,200 1.93% 271,500 2.77%
Taxes Receivable 8,000 0.08% 11,700 0.09% 24,700 0.26% 26,500 0.27%
Other Receivables 67,900 0.66% 93,900 0.69% 76,300 0.80% 0 0.00%
Inventory 21,300 0.21% 37,500 0.27% 35,200 0.37% 34,000 0.35%
Finished Goods 21,300 0.21% 37,500 0.27% 35,200 0.37% 34,000 0.35%
Prepaid Assets 33,800 0.33% 63,400 0.46% 99,800 1.05% 114,100 1.16%
Restricted Cash 13,100 0.13% 10,500 0.08% 10,700 0.11% 8,300 0.08%
Assets Held for Sale Current 0 0.00% 0 0.00% 0 0.00% 80,000 0.82%
Other Current Assets 11,500 0.11% 30,800 0.23% 38,100 0.40% 28,000 0.29%
Total non-current assets 9,789,400 95.26% 13,002,700 95.08% 8,714,500 91.77% 8,933,500 91.10%
Net PPE 6,774,000 65.92% 7,445,200 54.44% 3,039,600 32.01% 3,116,500 31.78%
Gross PPE 9,017,100 87.75% 9,265,300 67.75% 4,736,700 49.88% 4,383,400 44.70%
Properties 0 0.00% 0 0.00% 0 0.00% 0 0.00%
Land And Improvements 92,600 0.90% 106,300 0.78% 104,600 1.10% 130,500 1.33%
Buildings And Improvements 295,500 2.88% 311,400 2.28% 1,006,000 10.59% 1,084,300 11.06%
Machinery Furniture Equipment 2,343,700 22.81% 2,216,800 16.21% 2,065,400 21.75% 1,970,600 20.10%
Other Properties 4,451,500 43.32% 4,796,000 35.07% 0 0.00% 0 0.00%
Leases 1,833,800 17.84% 1,834,800 13.42% 1,560,700 16.44% 1,198,000 12.22%
Accumulated Depreciation -2,243,100 -21.83% -1,820,100 -13.31% -1,697,100 -17.87% -1,266,900 -12.92%
Goodwill And Other Intangible Assets 2,710,500 26.38% 4,984,400 36.45% 5,140,800 54.14% 5,312,200 54.17%
Goodwill 2,547,300 24.79% 4,789,100 35.02% 4,788,700 50.43% 4,931,700 50.29%
Other Intangible Assets 163,200 1.59% 195,300 1.43% 352,100 3.71% 380,500 3.88%
Investment Properties 16,000 0.16% 16,800 0.12% 16,200 0.17% 7,600 0.08%
Investments And Advances 97,500 0.95% 267,100 1.95% 319,000 3.36% 404,500 4.13%
Long Term Equity Investment 97,500 0.95% 267,100 1.95% 263,300 2.77% 404,500 4.13%
Investment in Financial Assets 0 0.00% 0 0.00% 55,700 0.59% 0 0.00%
Available for Sale Securities 0 0.00% 0 0.00% 55,700 0.59% 0 0.00%
Financial Assets 0 0.00% 38,000 0.28% 0 0.00% 0 0.00%
Non Current Deferred Assets 8,600 0.08% 81,400 0.60% 35,300 0.37% 38,400 0.39%
Non Current Deferred Taxes Assets 300 0.00% 70,100 0.51% 28,600 0.30% 28,900 0.29%
Non Current Prepaid Assets 28,600 0.28% 0 0.00% 0 0.00% 0 0.00%
Defined Pension Benefit 20,800 0.20% 19,600 0.14% 25,700 0.27% 26,900 0.27%
Other Non Current Assets 133,400 1.30% 150,200 1.10% 137,900 1.45% 27,400 0.28%
Total Liabilities Net Minority Interest 13,134,600 100.00% 12,461,600 100.00% 8,097,800 100.00% 7,692,700 100.00%
Current Liabilities 1,578,500 12.02% 1,933,200 15.51% 1,328,100 16.40% 1,409,400 18.32%
Payables And Accrued Expenses 468,900 3.57% 753,300 6.04% 673,500 8.32% 773,800 10.06%
Payables 385,400 2.93% 618,500 4.96% 526,000 6.50% 657,200 8.54%
Accounts Payable 298,800 2.27% 543,300 4.36% 452,600 5.59% 569,600 7.40%
Total Tax Payable 86,600 0.66% 75,200 0.60% 73,400 0.91% 87,600 1.14%
Current Accrued Expenses 83,500 0.64% 134,800 1.08% 147,500 1.82% 116,600 1.52%
Interest Payable 31,400 0.24% 21,200 0.17% 32,600 0.40% 27,500 0.36%
Pension & Other Post Retirement Benefit Plans Current 600 0.00% 500 0.00% 300 0.00% 300 0.00%
Current Debt And Capital Lease Obligation 616,500 4.69% 616,100 4.94% 82,200 1.02% 87,700 1.14%
Current Debt 20,000 0.15% 20,000 0.16% 82,200 1.02% 87,700 1.14%
Other Current...