I ONLY NEED HELP WITH 2 PARTS, the other info is just for your information!!!!!!!
1. Financial statements – summary trends in sales, profits, free cash flow etc, and comparison to peers. (Table would be useful)
2a. Conclusion: Using information from above, summarize the firm’s strengths and weaknesses both quantitatively and qualitatively. 2b. Decision: Would you approve or disapprove the loan? Explain briefly why using your analysis
Below is a Suggested Outline for FINAL REPORT (this is optional, and you are free to choose an alternative way of presenting the information if you so choose).
Conclusion: Using information from above, summarize the firm’s strengths and weaknesses both quantitatively and qualitatively.Decision: Would you approve or disapprove the loan? Explain briefly why using your analysis.
All Tables can go into Appendix if need be. All supporting documents should be provided in the appendix (can be in a separate excel file if need be).
The librarian sent me these links to library resources:
Nexis Uni (Formerly LexisNexis Academic)Links to an external site.
— Nexis Uni™ features more than 15,000 news, business and legal sources from LexisNexis. To locate company profiles in Nexis Uni, select Company Info, enter the company name, and from the drop-down menu select SEC Filings.
Mergent OnlineLinks to an external site.
— Select D&B Private Company Database to begin searching for Private Company information.
EDGAR DatabaseLinks to an external site.
via SEC
EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, provides free access to full-text of U. S. public corporation documents filed with U. S. Securities and Exchange Commission, including 10-K and 10-Q reports.
Value Line Investment SurveyLinks to an external site.
— The Value Line Research Center provides online access to Value Line’s leading publications covering stocks, mutual funds, options and convertible securities as well as special situation stocks.
Yahoo! FinanceLinks to an external site.
Yahoo! Finance provides extensive stock information, business and earnings announcement summaries, and financial statistics and ratios for over 9,000 public companies. Final Project
Summary of Company:
Business Description: AMC Entertainment Inc is an American movie theater chain founded in
Kansas City, Missouri. Today, it holds the standard as the largest movie theater chain in the
world. As of lately, there has been a pending settlement case against AMC from the Allegheny
County Employees Retirement System. This case revolves around some trust issues from retail
stock holders & company management, as it relates to a decision by the board to pursue a 10:1
reverse stock split. On AMC’s side, the split is needed to raise capital to avoid going bankrupt.
On the opposite side, which includes retail, this is seen as a form of dilution which would cause
tremendous losses (between 30% & 70%) to shareholders who have invested heavily in the
company over the last 2-3 years. Although 87% of the shareholders voted to go through with the
conversion & reverse split, there have been quite a few voices in opposition. Two weeks ago,
those individuals opposed were able to publicly voice those concerns at the hearing held in
Delaware’s Court of Chancery, with Judge Morgan Zurn presiding over the case. This stock has
fell $52.65% within the last year, 30% since this pending case has been opened.
Leadership: The board is composed of many talented individuals, who bring decades of
experience as it relates to entertainment and finance. The CEO is Adam Aron. Aron has held
CEO positions in multiple companies, Vail Resorts & Norwegian Cruise Line. He recently
became co-owner of the Philadelphia 76ers and has been CEO of AMC Entertainment since
2015. Over the last two years or so, there’s been some trust issues amongst the stockholders as it
relates to the board. Next, we have Sean Goodman who serves as the company’s CFO. Prior to
his AMC arrival, he served as CFO for three different companies: Asbury Automotive Group,
Unifi & Americas for Landis+Gyr Group. He also brings a hefty career background in corporate
finance and is also a certified public accountant. Last year, the company made changes to
promote Dan Ellis to EVP, Chief Development Officer. Also, with this promotion came an
additional hire of Eliot Hamlisch as EVP, Chief Marketing Officer.
The Economy and Its Impact on AMC Entertainment
AMC Entertainment is a prominent player in the entertainment industry, particularly in the field
of cinema exhibition. As such, it is subject to various economic factors and external influences
that can significantly impact its operations and overall industry. In this section, we will explore
some of the key economic issues that may affect AMC Entertainment and the cinema industry.
Regulations: Regulatory policies and guidelines imposed by governmental bodies can have a
substantial impact on AMC Entertainment’s operations. These regulations may include licensing
requirements, content censorship, labor laws, and taxation policies specific to the entertainment
industry.
Accounting Policies: Accounting policies and standards, such as revenue recognition methods
and depreciation practices, can influence the financial reporting and analysis of AMC
Entertainment. Changes in accounting regulations or policies may impact the company’s
financial statements, profitability measures, and valuation metrics.
Geopolitical Issues: Geopolitical factors, such as international trade policies, economic
sanctions, political instability, or changes in diplomatic relationships, can have both direct and
indirect consequences for AMC Entertainment. Restrictions on film imports or changes in crossborder trade agreements may affect the availability and cost of content, thereby impacting the
company’s revenue streams and growth opportunities.
Interest Rates: Changes in interest rates affect borrowing costs, consumer spending patterns,
and investor sentiment. Higher interest rates can increase the cost of debt financing for expansion
or investment projects, potentially impacting the company’s profitability and growth prospects.
Consumer Sentiment and Disposable Income: Consumer sentiment and disposable income
levels play a vital role in the success of the cinema industry. Economic downturns, recessions, or
financial uncertainties can lead to reduced discretionary spending on cinema tickets and
concessions. Changes in consumer behavior, preferences, or spending power can directly impact
AMC Entertainment’s box office revenues and profitability.
Competitors and Positioning:
AMC Entertainment primarily operates in the movie exhibition division, where it competes with
companies like Cinemark Holdings, Regal Cinemas, and Cineplex. These competitors also own
and operate a chain of movie theaters, providing similar services to moviegoers.
Competitor
Division
Positioning
Cinemark Holdings
Movie Exhibition
Major competitor operating a
chain of movie theaters
Regal Cinemas
Movie Exhibition
One of the largest cinema
chains in the United States
Cineplex
Movie Exhibition
Leading Canadian
entertainment company with
cinemas nationwide
Netflix
Streaming Services
Global streaming giant
offering a wide range of
movies and shows
Disney
Content Production
Entertainment conglomerate
with a vast library of movies
and TV
Warner Bros.
Content Production
Film and television
production studio under
WarnerMedia
Universal Pictures
Content Production
Film production and
distribution company
Sony Pictures
Content Production
Major film studio producing
and distributing movies
Amazon Prime Video
Streaming Services
Streaming service offering
movies, TV shows, and
original content
Hulu
Streaming Services
Subscription-based streaming
platform with a variety of
content