Good afternoon, ladies and gentlemen, and welcome to the AMC Entertainment 2nd quarter 2023 earnings conference call. At this time, all lines are in listen-only mode, and following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star 0 for the operator. This call is being recorded on Tuesday, August 8th, 2023. I would now like to turn the conference call over to Mr. John Merriwether. Please go ahead. Thank you, Kelsey. Good afternoon, I'd like to welcome everyone to AMC's second quarter 2023 earnings webcast. With me this afternoon is Adam Aron, our Chairman and CEO, and Sean Goodman, our Chief Financial Officer. Before I turn the webcast over to Adam, let me re-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 10-K and 10-Q. 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 uncertainties inherent in any forward-looking statements, listeners are cautioned against relying 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, free cash flow, operating cash generated, among others. For a full reconciliation of our non-GAAP measures to GAAP results, please see our earnings release posted in the investor relations section of our website earlier this morning. After our prepared remarks, there will be a question-and-answer session. This afternoon's webcast is being recorded, and a replay will be available in the investor relations section of our website at amctheaters.com later today. With that, I'll turn the call over to Adam. Thank you, John. Good afternoon, everyone, and thank you for joining us today. When I think of our second quarter 2023 results and our start to the third quarter, I want to share this with all of you. In plain English, AMC blew it out of the water in the second quarter of 2023, and I might add that the third quarter of 2023 is starting out to be roaring hot, too. Around here, the metaphors we often use to describe our circumstances involve famous movie quotes. Our recent results in Q2 and so far in Q3 of 2023 bring to my mind Bruce Willis as Lieutenant John McClane in the Die Hard movies, when he would say, "Yippie-ki-yay!" He would then add a colorful expletive that I cannot repeat on this call. I think the closest I can get to it would be, "Yippie-ki-yay, motherf ucker!" Yeah, that's the second quarter of 2023. Without being too dramatic, the stakes are high, and we're surrounded by some uncertainties and risk, but it's certainly encouraging for us all to take a moment this afternoon and celebrate our immensely positive results in the most recently completed quarter. AMC's results in Q2 2023 were well ahead of last year's second quarter and well ahead of the market's expectations. Indeed, AMC exceeded consensus market expectations across the board, generating post-pandemic records for revenue, Adjusted EBITDA, net income, and earnings per share. We now have posted three consecutive quarters of positive Adjusted EBITDA, and this quarter, for the first time since Q2 of 2019, that's four years ago, we generated positive earnings per share, yet another milestone in our path towards ongoing recovery. While we still have much work ahead of us on this front, AMC's glide path to eventual recovery continued with significant pace in the second quarter of 2023, as our results set new records and represent AMC's strongest second quarter in four full years. Following an impressive start to the year in the first quarter of 2023, the second quarter, yet again, showed great progress. AMC saw more than a 12% growth in attendance, more than a 15% growth in total revenue, and a 71% increase, 71% increase in Adjusted EBITDA compared to the second quarter of 2022 last year. Indeed, Adjusted EBITDA in the second quarter of 2023 was $182.5 million, the highest such quarterly figure for AMC since the fourth quarter of 2019.... Our ongoing progress is obvious and ever so encouraging. Combining AMC's commitment to innovation with a notable increase in both the number and the quality of movie titles from our studio partners, movie theaters are once again captivating audiences and driving an audience and attendance back to theaters in general, and especially at AMC, we're driving audiences and attendance back to AMC Theatres. Our theaters across the globe welcomed more than 66 million guests in the second quarter of 2023, up 12.2% over the prior year's Q2, and it was our highest quarterly attendance number also since the fourth quarter of 2019. Let's use the second quarter domestic industry box office as a proxy for the size and the improving health of our industry overall. Looking at domestic industry box office for the second quarter, ticket sales grew by nearly 15% compared to the same quarter last year, benefiting from six movies that grossed more than $100 million each. Anchored by Super Mario Bros. and franchises such as Guardians of the Galaxy, Spider-Man, Fast and Furious, Transformers, and The Little Mermaid, these titles provided compelling moviegoing experiences. Year to date, through today in 2023, 19 films crossed the $100 million mark in gross ticket revenues, compared to only 12 during the same period in 2022. That is a 58% increase. The total number of wide-release films grossing more than $5 million also continues to rise from 24 in Q2 of 2022 to 36 in Q2 of 2023. That's a 50% increase. One area that has far exceeded pre-pandemic norms has been AMC's per-patron revenue. AMC moviegoers are consistently seeking out the most immersive sight and sound experiences, especially important to AMC, as we offer more Premium Large Format screens than any other exhibitor. You know what Premium Large Format screens are: IMAX, Dolby Cinema, and our various house brands, including Prime at AMC and iSense in Europe, among others. Demonstrating how significant these Premium Large Format screens are to AMC's success, the so-called PLFs represent only 5.3% of our total screens globally, but an astounding 19% of our second quarter ticket revenues. AMC's imaginative offerings at our concession stands and in our dine-in theaters also helped AMC to generate, in the second quarter, for food and beverage revenues per patron, $7.36 a head. That is within $0.01 of our all-time high watermark for food and beverage spending per patron. Considering the enormous operating margins in our food and beverage business, this is contributing meaningfully to AMC's improving profitability. To me, perhaps the most surprising second quarter statistic of them all is this one: Because of our determined and sustained pandemic-era cost reduction efforts, along with ticket pricing initiatives and soaring food and beverage revenues, comparing Q2 2023 to Q2 2019, four years ago pre-pandemic, AMC's overall profit per patron after the cost of goods sold improved by an impressive 40%, 40%, in the United States and 22% internationally in constant currency. Put those together, that's a 36% total global increase in our profitability per patron in constant currency. If the Q2 domestic industry box office wasn't enough to lift our spirits and bolster our path to recovery, the month of July, the first month in Q3, was the highest grossing month for AMC in 12 years, and it was the second highest grossing box office month ever in our 103-year history. As you know, this performance in July was driven by the resounding success of titles such as Sound of Freedom, Mission: Impossible - Dead Reckoning Part One, Oppenheimer, and for all of you dressed in pink, Barbie. among other titles. In the United States, the July box office represented a 5.8% increase compared to the pre-pandemic July of 2019, and a 20% increase compared to last year's July. For AMC globally, these milestones translated into July of 2023 being the highest revenue month for our company in our entire 103-year history. The first week of August is continuing with an incredibly strong showing, with the domestic industry box office about double that of last year. This all speaks to what we at AMC have said time and time again: studios are masterful at storytelling, and when they have great stories to tell, they are best showcased, in the words of Nicole Kidman, as damn dazzling images on our huge silver screens. Here at AMC, those stories are perfect and powerful, and audiences are flocking to our AMC Theatres in the United States, and our Odeon Cinemas in Europe, and our AMC Cinemas in the Middle East as a result. Looking forward to the rest of 2023, we have a slew of exciting movies yet to be released this year. They're coming, barring complications to the timing of film releases due to the uncertainties arising from the writers and actors strikes currently well underway, unfortunately, we have good reason to believe that the second half box office will continue to show real strength this year. Even so, we will not get to 2019 pre-pandemic levels for this full year, 2023. There is a clear trajectory upwards. Our hope is that COVID-19 is but a bad ancient memory by 2024 or 2025, even though as much as some of you hate it when I say the words COVID, we are still dealing with the aftermath of that pandemic. At this point, I'll pass the webcast over to our CFO, Sean Goodman, to provide more details on our financial results. After which, I'll return to talk about some of our ongoing initiatives and AMC's plans for the future, as well as taking some of your questions. Sean? Thanks, Adam. Thanks, everyone, for joining us this afternoon. Before I begin my comments on our second quarter financial performance, I would like to just take one moment to provide a little bit of context behind our earnings release and 10-Q issuance this morning, rather than our customary after the market issuance. As you know, the Delaware Court is currently in the process of reviewing our proposed shareholder litigation settlement. A ruling by the Court, prior to the issuance of our 10-Q, could constitute a post-balance sheet event that might require an adjustment to our financial statements, and thereby a possible delay in our regulatory filings and earnings release. To avoid any such risk of a delay and the possibility of thereby missing our filing deadlines, we decided to release our results for the second quarter before the market opened this morning. On to our results for Q2, our strongest quarter post-pandemic, and a clear sign of our ongoing recovery. 2023 has continued to see box office recovery, $1.7 billion in Q1 and now $2.7 billion in Q2. For the first half of 2023, the box office is now up approximately 20% from the same period last year. Remember, the first half of 2022 was up almost four times from the same period in 2021. With attendance growth of 12.2% and revenue growth of 15.6% compared to the second quarter of 2022, we grew our Adjusted EBITDA by 71% to a post-pandemic record of $182.5 million. This illustrates the operating leverage that is inherent in our business model. For the quarter, we achieved positive earnings per share for the first time since Q2 of 2019. Granted, it's a small positive number, for those of us who have been working tirelessly for AMC to recover from the depths of the pandemic, it is yet another milestone along our recovery. In the North American business, total revenue increased by 19.8% compared to Q2 of 2022. This was driven by an attendance increase of 15%, admissions revenue per patron increase of 2.2%, and food and beverage revenue per patron increase of 9.2% to a record all-time high of $8.22, surpassing the previous record that was set just last quarter, and an amount that is 47.3% above pre-pandemic Q2 2019. In the international business, on a constant currency basis, total revenue increased by approximately 1% compared to Q2 of 2022. This was driven by an attendance increase of 4.6%, admissions revenue per patron decrease of 1%, and food and beverage revenue per patron increase of 6.5%. International food and beverage revenue per patron for the quarter was 34.5% above pre-pandemic Q2 of 2019. It's worth noting in the international business that during the quarter, we saw a 27.6% decline in other revenue. This decline is associated with relatively high levels of gift card and package ticket expirations, and also relatively high theater rental income, all in the prior year period, and associated with the impact of the COVID-19 pandemic on our business. As the industry box office continued on its recovery trajectory, our revenue growth in the quarter was enhanced as guests responded favorably to our targeted marketing campaigns and increasingly adopted our industry-leading app. In addition, our creative food and beverage options, such as movie theme cocktails and unique collectible items, encouraged frequent visits to the concession stands, all contributing to both revenue growth and our overall profitability of the business. Furthermore, visually stunning and action-packed films inspired audiences to experience our Premium Large Format offerings. Premium large format revenue, including 3D, represented 30.1% of domestic admissions revenue in Q2 of 2023, compared to 26.7% in the second quarter of 2022. In our international markets, premium format revenue represented 16.3% of admissions revenue, compared to 15.7% in the second quarter of 2022. Moving to the balance sheet. We ended the quarter with liquidity of $643 million, comprised of $435 million of cash and cash equivalents, and $208 million of undrawn credit facilities. Operating cash generated, this is a non-GAAP measure representing cash from operating activities after deducting capital expenditures and before both debt servicing costs and deferred rent payback, was a positive number of $100 million for the quarter. This is almost double the operating cash generated in Q2 of 2022. Our top two capital allocation priorities remain: one, liquidity, and two, strengthening the balance sheet. During the second quarter, we continued to make progress in this regard. We raised $34.2 million of gross equity capital. We repurchased $42 million of debt at an average discount of 34%, and we repaid $27.1 million of deferred rent. The deferred rent balance at the end of the second quarter was $96.5 million, and we plan to reduce this balance by another approximately $40 million by the end of this year. This year to date, we've raised $189 million of gross equity capital. We've lowered the principal value of our debt by $245 million through debt repurchases or exchanges of debt for equity, and we have repaid $61 million of deferred rent. Adding that all up, we've reduced our liabilities by $306 million thus far in 2023, and a total of $689 million since the beginning of 2022. In addition, we began the third quarter of 2023 with a purchase of yet another $24 million of debt during the month of July, at a discount of approximately 28%. CapEx for the quarter net of landlord contributions was $46.6 million, and we expect net CapEx in 2023 to be in the range of $150 million-$200 million. During the second quarter, we also continued to actively manage our theater portfolio. We added two new theaters, and we closed 16 theaters. This brings the total number of locations closed since the pandemic began to 152 locations, and the total new locations opened to 57, for a net reduction of 95 locations. Note that the combined 57 new locations continue to outperform the 152 closed locations prior to their closings. The pandemic almost crippled our business. Since then, we have made enormous progress in enhancing the moviegoing experience at AMC. This has resulted in very meaningful improvements to our per-patron profitability metrics. At the same time, we've also maintained strict cost and capital expenditure discipline. Because of our actions and a rapidly recovering industry box office, our revenue and our adjusted EBITDA have shown strong growth. We have also been very active in the capital markets. We've taken opportunities to strengthen our balance sheet and to prepare AMC for a bright future. With the post-pandemic record-breaking second quarter behind us, our recovery to date is clear. However, we're not yet ready to declare victory. The box office remains around 16% below pre-pandemic levels, and there's some downside risk with the ongoing screenwriters and actors' strikes. With our fixed cost structure and relatively high debt servicing costs, these are exacerbated by interest rate increases over the last 17 months, we continue to burn cash on the bottom line. Based on what we know today, we're optimistic about the remainder of the year, and we believe that the 2023 box office could exceed 2022 by more than 20%. However, if the strikes are prolonged or if our ability to access the capital markets is constrained, then our ongoing recovery glide path and our ability to continue to take the necessary actions to strengthen our balance sheet and to ensure a full and sustained recovery may be in jeopardy. Now I'll hand the webcast back over to Adam. Thank you, Sean. I'd like to give you all a brief update on seven specific items related to some of our thinking, as well as our exciting ongoing initiatives and our current plans. First, on liquidity. We've made many public statements throughout this year and again in recent weeks, that AMC has skillfully charted our way through turbulent waters at a time when several of our most important competitors failed, and that we watch our liquidity position very closely. We've made it clear that our strategy first is to survive and then to thrive. Of course, we are heartened by the fact that we had $643 million of liquidity at the end of the second quarter of 2023. Some who follow us closely nonetheless underestimate the potential for cash burn in the seasonally weaker winter months. This is especially true given the uncertainties of the writers and actors strikes, since no one knows when they will end. We intend to make sure that AMC does not run out of cash by continuing to seek the flexibility to raise fresh capital on the best possible terms. Our highest obligation to stakeholders is to avoid the pitfalls that sank others in our industry into financial ruin. Second, on balance sheet management. In the second quarter, we methodically raised $34 million of equity and retired $42 million of debt. Sean, in his remarks, gave a lot of other statistics, various time frames of how much equity we raised and how much debt we retired. I am particularly intrigued by this statistic, which you haven't heard yet on the call. Since the creation of the APE preferred equity units in August 2022, about a year ago, AMC raised $418 million of equity and retired $548 million of debt, including deferred rent. Needless to say, this is very helpful as we contemplate our current liquidity profile. Third, on so-called PLF screens, Premium Large Format screens. As I mentioned earlier, a PLF screen grosses about four times a regular non-PLF screen. It's kind of obvious that we're happy that we have more PLF screens than any other movie theater company in the world. Assuming that we have sufficient cash reserves to invest in growth initiatives in a big way, which at the moment we do not, but we could, looking a little further forward. Assuming we have sufficient cash reserves to invest in growth initiatives, we would intend to add a significant number of additional Premium Large Format auditoriums to our system. Fourth, on innovative theater programming. Over the past two years, we have experimented with sports programming and have featured great musical artists on our big screens. We will continue to look for opportunities to expand those innovative efforts. Fifth, on popcorn. Our new lines of ready-to-eat and microwave popcorn for the home are literally flying off the shelves at Walmart stores throughout the United States and on walmart.com. They were launched in March and April of 2023, and we would describe sales as being brisk and pleasantly ahead of our expectations. So much so that we are now looking seriously to expand into other grocery chains and other retail outlets. Once we get to a full national rollout in multiple channels, which could take a while, to be fair, but based on the early results so far, I would not at all be surprised if this turns out to ramp up, perhaps becoming up to a $100 million per annum revenue source for AMC Entertainment. On premium gourmet candy. Our popcorn line has been so successful that we are now confident that we should keep going in the area of food. Much so that I expect that later this year or early next, AMC will definitely introduce a private label line of various AMC Theatres branded premium gourmet chocolate candies and gummies. I'm eating some samples right now as we speak on this call. The taste and the packaging are wonderful, in my opinion. Speaking of the taste, these chocolate-covered pretzels are, like, to die for good. Like, John, like, move them away. I can't. No more. Calories, calories, calories. We believe we will be successful with the candy lines as we've been successful with the popcorn line. It goes without saying, of course, that we will still sell Hershey's and Nestlé products in our theaters. Just as a year or so back, we asked the late Orville Redenbacher to make some room on shelves for our popcorn, so too, we will ask the long-gone Milton Snavely Hershey and the long-gone Heinrich Henri Nestlé for their understanding that premium AMC candies coming to AMC Theatres are now in the works as well. The last item on merchandise. Early in the period where retail shareholders took control of AMC, which basically started in earnest in January 2021. Through suggestions that came in on Twitter and other channels, retail investors directed our attention to the possible profits that can come from the sale of movie-themed merchandise and AMC-branded merchandise. We've had meaningful successes in this area, especially with our collectible popcorn vessels, sold almost weekly in quantities of between 25,000 and 100,000 units almost each weekend, at prices that have ranged from about $20 to about $65 each. We plan to significantly expand our merchandise efforts in 2024 and beyond, with a greater variety of items and a larger available quantity of items for sale. It is not uncommon today for us to sell out of some of our movie-themed merchandise in the opening weekend of a movie's release. Movies run a lot longer than the first 72 hours, and I think our merchandise business would expand if we have greater supply to sell. In closing these remarks, I'd like to address directly the millions of our AMC shareholders, so many of whom pay attention to what I say on Twitter and to these earnings calls. In a tweet yesterday, I expressed my sincerest possible gratitude for all of your support. If you read my Twitter feed, though, as I do, you'll see there's a lot of like, but also a lot of heat directed my way. That's okay, I have broad shoulders, and the variety of views comes with the territory when there are so many voices and so many opinions. As I read these inbound comments, I see that some who care about our company deeply still don't get the nuance of our current circumstances or wish that I would just cheerlead only the good news. That's not what CEOs are supposed to do. The success we have seen this year in our theaters, especially including Q2 and Q3 results so far, is what makes us optimistic that we are on the right road, and that by 2024 or 2025, we will look back on the decade of the 2020s with amazement and pride as to how well at AMC we dealt with the most challenging hands of cards ever directed our company's way in the century plus of its long existence. Despite that medium-term confidence, in the short term, and some of you don't like to hear this, but in the short term, AMC has some serious liquidity issues to solve. We should not oversimplify that it will be easy to overcome the obstacles and hurdles in our path. However, this AMC management team has proven over the past few years that AMC is highly able in liquidity management. I have every confidence that we will continue to execute well, to do what is needed. To the extent humanly possible, I am determined that at AMC, we will rise to every and to any challenge. Thank you for listening. Sean, let's now move to questions, both from shareholders and from industry analysts on the call. Thanks, Adam. Quite a few questions from shareholders here. First question relates to our strategic direction, the question is: What are the top priorities for AMC both today and in the future? Are we considering M&A opportunities? You know, so, some of you have asked me on Twitter, like, "Why are we still talking about COVID?" That's because we are, because in the movie theater industry, the industry-wide box office, which is the basic size of our industry, is still below 2019 levels. That's a lingering problem, because if you look at the box office, 2017, 2018, 2019, this industry was sized for about an $11.5 billion box office. In 2020, it was $2 billion, 2021, it was $4.5 billion, 2022, it was $7.5 billion. This year, I hope it hits $9.5 billion. Might hit more, might hit less. We won't really know till the end of the year. Gonna be a lot more than 2022. We're still down below pre-pandemic norms. You know, I remember when we shut our theaters in March of 2020, and people were predicting we'd be back to normal in four to six weeks. Our theaters were shut for five and a half months. Some of our theaters were shut for almost a year, and the box office fell by more than 80% that year, and it still was, you know, way below pre-pandemic levels, even now, three full years later. We've had to adjust our strategy because the movie theater industry has come back slowly, and our strategy has become survive, then thrive. We have had to take the steps to make sure this company survives, and not all companies in our industry can say that. Other companies with big brand names, both big chains, chains that you would recognize, and small chains that had a cult following in some markets in Texas and California, they went bankrupt, and a lot of their theaters didn't reopen. First, we have to survive. As I said, you know, like, the results in April, May, June, July, and August of this year are fabulous. I think we're gonna start to move from the survive phase to the thrive phase. To make sure we get there, and you've been hearing me say this as a broken record for two years now, but especially in the last year, we must be able to raise capital if we need to. The dumbest thing we could ever do as a company is run out of cash. Other companies in this industry have run out of cash. Some of the armchair quarterbacks on Twitter, who give me advice every day, if I followed their suggestions, we would have run out of cash a long time ago, or if I follow their suggestions now, we'll run out of cash soon. The most important thing, as part of the strategic direction of this company, is make sure that we have ample cash reserves to outlast the aftermath of the pandemic. I've already said, you know, in 2024, 2025, it's gonna look pretty bright. If we were to run out of cash before we get to 2024 or 2025, that would be a disaster. That's a disaster that I simply will do everything in my power to make sure that this company avoids. When we talk about strategic direction, I think that we've got to make sure that we put this company in a position to be able to raise capital. That's what the shareholder vote on March 14 was all about. Next, as we have sufficient cash to survive to the glory days of 2024 or 2025, there are a lot of things that we can do with that cash, because right now, you know, Sean said we've taken our CapEx spending down to $150 million-$200 million a year. three or four years ago, we were investing $500 million of CapEx a year in our business. Right now, it's prudent to husband cash, to save cash, so that we don't run dry. There will be a time that we have much more cash reserves than we have currently, either because we will generate it from operations or because we'll raise it. Then the question is, what do you do with that cash? Here's my list. First, we need to spend some money to affect what I'll call deferred maintenance on some of our theaters. You know, we, we pulled our CapEx spending way down during the COVID-impacted years. We've seen examples of leaking roofs, and breaking air conditioners, and boilers that provide heat in the winter, that are towards the end of their life cycle, and they're just breaking. They need to be repaired. We have thousands of our screens where the movie projectors are getting towards the end of their useful life, and we are going to need to invest capital to replace those projectors. The good news of that, however, is we've already made the decision that when we replace these projectors, we're putting in laser screens... laser projectors. Laser lighting is much it's a much brighter, sharper picture on the screen, and it's quite an environmentally friendly initiative, too. Next, there are growth initiatives within our theaters. I've already mentioned on this call Premium Large Format screens. In the state of New York, until just recently, like in the past 12 months, it was illegal for movie theaters, most movie theaters, to sell alcohol. The New York legislature recently changed that law, but that means that we have a whole bunch of theaters where we probably should build full alcoholic bars into our theaters. One of the things I'm interested in is putting more variety of food items into our concession stands, which because our food and beverage sales are at a record high, that might require, you know, putting in $10,000-$20,000 of equipment in a concession stand. Now, $20,000 doesn't sound much, like much, until you realize we've got to put it in 575 theaters. All of a sudden, you know, it's $10 million. Next, we have had some circumstances where we've been able to add theaters to our network, and we've were able to bring them into our system very inexpensively. When I say very inexpensively, I'm saying we've been, we've been all in. Purchase price, transition costs. We've been able to bring some theaters into our system at three to four times expected EBITDA. That is such a bargain. We ought to do that all day long, if we can find opportunities to bring good theaters into our network inexpensively. There's M&A opportunity. There are two kinds of M&A opportunity, right? There's just buy some movie theater chains, if we can do so, and I want to emphasize this, if we can do so at a bargain basement price. I have no desire to pay up to bring movie theater chains into our network. If we can get them at a cheap price, that's value creation for our shareholders. We're going to raise a lot of cash. Maybe we can do some transformative M&A as well, where we can look to expand to being something more than just a pure movie theater play. That's sort of the strategic roadmap of where we might invest our monies if we have more money than we have today. Yeah. Thanks, Adam. I think that addresses that question very nicely. There's some questions here about our theater footprint. What are the expansion opportunities of that footprint, both U.S. and internationally? What are the opportunities to continue to close theaters, underperforming theaters, and improve our overall profitability? How does Premium Large Format fit into those plans? On the theater footprint, you know, we've managed this, like, maniacally over the last 3.5 years. You gave the stats in earlier, that we opened 50-something theaters, we closed 150-something theaters. We didn't open any of the 50 lightly. We didn't close any of the 150 lightly. When you look at a company that has almost 1,000 theaters globally, we got some theaters that are brand new, we got some theaters that are 25 years old. We got some buildings in great shape, we got some buildings sort of at the end of their useful lives. We've got theaters where we've got great rent deals with landlords, and we've got theaters where we have terrible rent deals with landlords. We've got some theaters in unbelievably successful malls, and other theaters in unbelievably unsuccessful malls. We have a whole department here, our real estate department, our development department, that's paying attention to every single one of these theaters, every single one of our landlord relationships. Where the theaters are successful, we cheerfully pay the rents. Where the theaters are not successful, we enter into cooperative dialogue with the theater landlord to see if they're willing to lower our rent, to keep us around, and to continue to drive traffic to their other properties nearby. In many cases, we're quite successful in getting landlords to adjust rents. In addition to that, I would say we have spectacular relationships with all of the large mall operators in the United States: the Simon, the Brookfield, the Westfield, and a whole slew of, you know, of other theater owners. I could name another probably 10 REITs who have, you know, anywhere from five to 50 of our theaters. I think we maintain excellent relationships with each. One of the things, because our relationships are so good, as they build new malls, they often want us to come along for the ride. Westfield just opened up a beautiful new mall in Topanga, to the northwest part of Los Angeles, and that theater that we opened there is already one of the 20 most profitable theaters we have in the United States. It opened in the past year. A year and a half back... Actually, I think it's two years back now, we brought in the Grove. Right The Americana at Brand in L.A. and in Glendale, in Southern California, at Rick Caruso's retail establishments. The Grove is now the third most profitable theater in the entire United States for AMC. That's an example of a theater that we brought into the network just in the past two years. We continue to talk to landlords all over the place, that we're ready, willing, and able to bring theaters into our system, if we can do so on good economic terms. As an example of that, literally, just in the last two weeks, we brought a theater into our system in Reading, Pennsylvania. It's not exactly as big a market as downtown Los Angeles, but that's a theater where the seats were already reclined, and that theater enjoyed a 65% market share of its surrounding communities, and we got a very attractive price that brought that theater into our system quite reasonably. We are continuing to look at pruning our system downwards, where we have underperforming theaters and can't renegotiate rents. We're looking to keep our theater network the same size as it is today by renegotiating rents, and we're looking to grow our theater network, as our theater landlords wanna take us where they go. Then, of course, I mentioned there's always M&A opportunity as well, but there's nothing immediately on the horizon to report on that front. Thanks, Adam. Let's talk a little bit about food and beverage. There are quite a few questions about that because it's been enormously successful for us post-pandemic. Question here about plans to potentially expand the menu offering at theaters, or plans to open restaurants at a theater, or take food orders directly from the seats? look, This is a subject near and dear to my heart. I'm an eater. If any of you have seen me sideways, you know I'm not the slimmest guy around, although I weigh a lot less than I did 20 years ago. yeah, no more chocolate-covered pretzels. or the chocolate-covered almonds are pretty good. That's good. I think AMC was leading the way before the pandemic in having the biggest variety at our concession stands. Remember, we introduced something called Feature Fare all across the system here in the United States, where we made a lot of progress and variety. We put in as a brand standard for all AMC Theatres in the United States, Coca-Cola Freestyle machines. I counted more than 140 flavors come out of those Coca-Cola Freestyle machines. I think that's an enormous advantage for us over theater chains, you know, which still are offering eight, 12, or 14 flavor choices. Those Coca-Cola Freestyle machines don't come cheap, but I think that was a very smart investment for us. Then COVID hit, and when we came out of COVID, we came back with a very limited menu, which we tried to grow back to sort of the Feature Fare levels. Then came supply chain shortages, and then came labor shortages, and all of a sudden, some of our more complicated items were difficult for our staff at the concession stands to execute, which then would slow down delivery, which would lengthen lines to the concession stand. You're always trying to balance variety of items against speed of purchase in a concession stand, because no one wants to wait in a long line. I don't blame them for that. I'd say where we are today, is we're back up to about 80% of the Feature Fare variety at the height of where we were in 2018. In talking with our food and beverage department, they'd like to see our variety of items get to, expand up to Feature Fare levels, you know, within 12 months of today. You know, that was just talking sort about variety of menu items. When you look at the success of our food and beverage effort, remember, let's use United States numbers. Pre-pandemic in 2019, we were doing $5 a head in per patron food and beverage spending. In the United States, we're doing over $8 of food and beverage spending today per head. That is a staggering increase when you realize that if you take out only cost of goods sold, so this isn't the labor at the concession stand and not the capital cost, the equipment stuff, but just, like, the cost of the, the syrup and the cost of the corn and the cost of the hot dogs and the rolls and the nachos and all this stuff, the candy that we sell. Like, we have more than an 80% margin in our food and beverage business, and for our food and beverage business to be up as much as it is, $736 million was the number globally in the second quarter, this is a staggering success for us. I really wanna compliment our F&B department, led by a guy named Hank Green. We're just hitting that out of the park in F&B spending, and that's what's driving such a big increase in per patron profitability for AMC. Remember the stat I gave, our per patron profitability, this isn't just food and beverage, this is total per patron profitability. It's a combination of expense reductions, ticket price initiatives, food and beveraging success. Our, our profit per patron is up 40% in the United States. It's up 22% internationally. These are stunning numbers. Adam, our, our shareholders are typically uniformly very excited about the retail popcorn sales and our initiatives there. Their questions about, do we plan to expand this further, and are there other potential revenue streams similar to retail popcorn that can help grow the business? Yeah, I couldn't be more excited about the popcorn success. You know, we spent over a year in our food and beverage department working on the right recipe for pop corn, whether it was in the bag, ready-to-eat or microwave pouches that you microwave at home, we wanted it to taste, we wanted it to taste just like it tastes in the movie theater. By the way, there's a secret to our popcorn. Not all popcorn is created equal. There are different grades of corn, and we buy the best there is. One of the reasons why our popcorn is so good at AMC Theatres is we buy the best corn. It's, like, graded. So our corn that's at home tastes great, and the sales... Like, Walmart can barely keep it on the shelves, and they keep on reordering, and they keep on selling out. Yes, we gave Walmart a six-month exclusive because they gave us so many store locations. We rolled out the AMC popcorn in, like, 2,600 Walmart stores. Very few brands get to roll out on day one in 2,600 Walmarts. You know, normally you'd get a fraction of that, you prove your way. They believed in our brand, it's been a big success, and we're happy to give them the full exclusive. Yeah, as soon as the exclusive is up, we will have conversations with all the major grocery chains, with all the major retail outlets in the country. I'd like to see... It'll take a while, but I'd like to see AMC popcorn on every shelf where, where you can buy snack products. There are other things too. I've already talked about the candy products. That's next. There are a whole host of other ideas that we have, to grow revenues for the company, but in the interest of time, I'll either save those for the, another earnings call or for, or for Twitter. Final question here about the trading of our shares. There's a few questions here related to can you comment, Adam, on the very high level of Failures to Deliver in AMC securities? Yeah, I can, sort of. I mean, there's a limit to what I'm supposed to say on this subject, but I can say some things. I know it's maddening to so many of our shareholders. I read my Twitter feed, guys. I know what you think, I know what you say, 'cause I get thousands of messages a day. Since, for those of you who didn't send Elon Musk his $8 a month for a blue check mark, since you're limited to a couple hundred characters, you can read a tweet, pretty fast. I know you're really frustrated by the high number of FTDs, and as many of you, not all of you know, but as many of you know, an FTD is a failure to deliver a share within the normal trading closing cycle, which is within two trading, two business days of the trade. You know, if someone never delivers a share, they're breaking the law. If they deliver the share three days late-... instead of, I'm sorry, one day late, which is on the third day, they show up as an FTD in your eyes, but the trade did consummate. A little, little slow, but it consummated. If more than 0.5% of our trading volume is in an FTD status, then we go on something called the Threshold List. We've been on and off the Threshold List many times in 2023, and for that matter, in 2022 as well. This drives some of you, like, out of your minds, because I read what you say, and I say out of your minds in a nice way. I don't mean it in a nasty way, you're angry about it, because you think there's something wrong going on. Again, I've got to be very careful what I say legally, but I can tell you this: on multiple occasions, even multiple occasions this year, we have gone to the New York Stock Exchange at very high levels to make them aware of our status on the Threshold List. Similarly, we've gone to FINRA, which is the regulatory body of the public markets, and we are voicing your concerns. Unfortunately, I know many of you, like, would like to see the results of what they send us back. It's not so easy for us to share that information with you. But we're aware of the concerns, we're aware of them ourselves, and we are taking them to the appropriate regulatory bodies. Kelsey, that's gonna do it for the prepared questions from the internet. Can you give the instructions for Q&A, please? Thank you. Ladies and gentlemen, we'll now begin the question and answer session. Should you have a question, please press the star key, followed by the one on your touch-tone phone. You will hear a three-tone prompt acknowledging your request, and your questions will be pooled in the order that they are received. Should you wish to decline from the polling process, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. At this time, there are no questions. You may proceed, Mr. Merriwether. We are after 5:00 P.M., which is supposedly our cutoff. I'm going to thank everybody for joining us today and leave you with a couple of thoughts. One, we had a fabulous quarter in the second quarter of 2023, and July was gangbusters, and August is gangbusters so far. For those of you around the country who are listening in the United States, it's really hot in the United States right now. Most of our theaters are quite cool, and they have some really good movies on the screen. If you haven't gone to see Sound of Freedom or Mission: Impossible - Dead Reckoning Part One, or Oppenheimer or Barbie or Haunted Mansion, or all the other wonderful movies that are out, go to an AMC theater near you. We'd love to see you in our theaters. Thank you for joining us today. Ladies and gentlemen, this concludes your conference call for today. We thank you very much for participating and ask that you please disconnect your lines. Have a great day.