Greetings, welcome to the AMC Entertainment first quarter 2023 earnings conference call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star then zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, John Merriwether. Please go ahead, sir.
Thank you, operator. Good morning. I'd like to welcome everyone to AMC's first quarter 2023 earnings webcast. With me this morning is Adam Aron, our Chairman and CEO, and Sean Goodman, our Chief Financial Officer. Before I turn the webcast over to Adam, let me 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 burn, and 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 morning's webcast is being recorded, and a replay will be available in the investor relations section of our website at amctheatres.com later today. With that, I'll turn the call over to Adam.
Thank you, John. Good morning, everybody. Thank you for joining us today. As we sit here this morning, I could not be more optimistic about AMC's future because of two vital developments in the first quarter of 2023. First is the clearly growing industry-wide box office up in North America by some 29% quarter-over-quarter versus last year, growing to more than $1.7 billion in the quarter. An industry-wide attendance in movie theaters in our markets across Europe has risen even closer to pre-pandemic levels, higher to pre-pandemic norms than even the surge in North American box office gains. Incidentally, that clearly growing industry box office has continued in April so far in May.
The April domestic box office was up about 58%, for example, and there is a flood of potential hit movies still to be released in the remainder of 2023. We previously indicated that we expected the 2023 industry-wide domestic box office to be up 15%-25% or more over that of 2022. Well, now with the big start this year, we now believe the 2023 domestic box office will be up 20%-30% over last year. The second development in Q1 is that our shareholders at our March 14th special meeting voted by an enormous margin by fully 88% in favor, with only 12% opposed or abstaining to our proposal to combine our APE preferred units and AMC common shares. Of the AMC common shares that were voted, 72% voted yes.
Of the APE holders that were voted, 91% voted yes. As a result, AMC should be able to raise significant equity capital to outlast the pandemic's lingering aftermath affecting our cash reserves to help us pay down debt or for attractive M&A opportunities as well as for other growth initiatives. AMC's unique and singular ability to raise capital since 2020 has been one of the key reasons for our success in avoiding the fate of other movie theater chains, big and small, that didn't make it. Our continued ability to raise capital is what gives us unbridled confidence in AMC's future. We thank our shareholders for the real wisdom shown in their votes of March of 2023. We are also aware that there is angst among some of the holders of a considerably smaller number that voted against our proposal.
We hope to convince you over time that the majority of shares that were cast voted in favor of strategies and actions which will generate the best long-term results for AMC. Let's turn back to the box office. First, there were many movies that were in theaters in Q1 that had extraordinary appeal. Thank you above all to James Cameron for Avatar: The Way of Water. At a current gross of $2.3 billion globally, it's the third highest grossing movie in the history of cinema. Need I remind any of you that we are a mere 19 months and 14 days away from Avatar three gracing our AMC and Odeon screens. It will be a merry Christmas indeed in 2024. It wasn't just Avatar that resonated with consumers in Q1.
Nine different movies won their week as the highest grossing films across the week of Q1. The news is not only that there were more big movies in our theaters in Q1, there were more movies, period. Q1 proved out to be precisely true in what we have been predicting. The quantity of films now coming out theatrically is rising. If you look at wide releases, defined as films grossing $5 million or more domestically, there were 35 such movies in Q1 2023 versus only 26 in Q1 of 2022. That's a 34.6 increase in the supply of theatrically released films, regardless of their ticket sales numbers in dollars. We look at the whole of the year, we continue to expect a similar substantial increase in the total movie count throughout the remainder of the year of movies being released theatrically.
For more context, back to Q1, this year was the best first quarter domestic box office since March 31, 2020. While still in a recovery mode at 72% of 2019's pre-pandemic first quarter, the first quarter of 2023 represents a significant improvement compared to last year's first quarter, which was only 56% of 2019 levels. 56% a year ago, 72% this year, still rising. For AMC, the first quarter's box office success for the industry translated into AMC's strongest start in four full years. AMC exceeded consensus market expectations for revenue. We exceeded consensus market expectations for Adjusted EBITDA and exceeded consensus market expectations for adjusted net income, as well as exceeding consensus market expectations for Adjusted EPS.
AMC enjoyed a 21% growth in global revenues to $954 million and a $69 million improvement in Adjusted EBITDA, up from a $62 million loss in EBITDA a year ago to positive $7 million this year. Indeed, Q1 of 2023, combined with Q4 of 2022, marked the first two consecutive quarters of positive Adjusted EBITDA since March of 2020. More than 47 million guests visited an AMC theater worldwide in the first quarter of 2023. 47 million guests stands in stark contrast to the naysayers and doom tellers of conventional wisdom who loudly but wrongly predicted that movie theaters were dead and an anachronism of bygone days.
Those 47 million people tell us, as we have known for years and years, that movie theaters are very much alive and very much the center of the cultural fabric of the United States for years and decades to come. As those 47 million guests came into our theaters, boy, did they eat and drink. Our food and beverage revenues per patron were eye-popping. At $6.90 per patron globally and $7.99 per patron in the United States. This is so far above pre-pandemic consumption, and it's occurring in a very high margin business for us. When they walk through our doors, AMC guests also continue to seek out premium large format screens, or PLFs as they're known, where AMC already has a commanding competitive lead.
AMC is the largest IMAX operator in the world outside of China. About half of the IMAX screens in the United States can be found in AMC Theatres. Similarly exciting, we're the only operator of Dolby Cinema screens in the United States and continue to have a contractual exclusive on Dolby Cinema going forward in the U.S. market. Our premium large format screens often over-index five or six-fold in box office revenues or more in the box office grosses that they bring to AMC. That's compared to a non-PLF AMC screen. Over the next one to three years, you will see us continue to invest in our PLFs. We intend to upgrade a significant number of IMAX screens to IMAX with Laser. We intend to increase the number of our PLFs by adding more IMAX screens and by adding more Dolby Cinema screens.
We also expect to significantly grow the numbers of our private label house branded PLF screens called Prime at AMC in the U.S. and Middle East and iSense in Europe. We're not only making AMC a more compelling experience for moviegoers through more and better PLF screens, we have also contracted to install laser projectors in about half of our U.S. screens over the next three calendar years. Laser projection increases the light levels on our screens by 50%-100%, which makes the pictures much brighter, much sharper and more vivid. It's also our biggest green initiative ever in our company's history, as laser projection consumes far less energy and there are no xenon bulbs to throw away in landfills. Installation of laser at AMC started back in 2022, and it is going extremely well.
The fact that I'm talking about the investments we will be making in upgrading and enhancing our product is in itself enlightening and revealing. During the height of the pandemic, when we were fighting for survival, long-term planning around here was like a week from Thursday. Now, as we become ever so much more confident in AMC's vitality, we can actually look forward again to our longer-term future and specifically how we can improve the appeal of our theaters and how we can grow and transform AMC through M&A activity. Make no mistake, we are not out of the woods yet. The box office, while elevated, is not yet back at 2019 levels. I previously indicated that I believe COVID will be a five-year detour for the movie industry. We just started the fourth year in our ramp up to eventual normality.
We are indeed on an improving ramp. Domestic box office revenues as a basic placeholder of size for our industry was above $11 billion for five years in a row between 2015 and 2019. It was only $2 billion in 2020, $4.5 billion in 2021, $7.5 billion in 2022. No guarantees here, we believe the domestic box office revenues are likely to be $9 billion or considerably more than that in 2023. That also is an upwards ramp. Look at AMC EBITDA, which was $771 million in 2019. Incredibly, seemingly overnight, it sank to -$999 million in calendar year 2020, -$292 million a year in 2021.
If you combine first quarter actual results for 2023 with analyst consensus estimates for quarters two, three and four of 2023, that EBITDA number would be hundreds of millions of dollars higher in 2023 than was the case in our 2022 results. Look at the trend. $771 million pre-pandemic, falling to negative $999 million, negative $292 million, positive $46 million, hundreds of millions of dollars higher than that now. Again, that's a confidence-building and encouraging upwards ramp. In summary, we just posted encouraging and excellent Q1 results, and we have excellent things coming down the pipe for moviegoers as we go forward. I'll be back to talk briefly about a few other important topics after Sean goes into more detail about our operational and financing results.
Our CFO, Sean Goodman.
Thank you, Adam. Thanks everyone for joining us this morning. 2023 is off to a really good start with our consolidated revenue up 21.5% or 24% in constant currency compared to the Q1 of 2022. The highlight of this being food and beverage revenue. Food and beverage revenue is up 30% or 32% in constant currency versus the same period last year. Overall, our attendance increased by almost 22% over Q1 2022. Revenue per patron was in line with the prior year or up 1.7% in constant currency at $20.45. It's worth noting that this revenue per patron is some 36% higher in constant currency than pre-pandemic in 2019.
In the North American business, the total revenue increased by 25.1% compared to Q1 of 2022, with admissions revenue per patron decreasing by 1.5% to $11.87 and food and beverage revenue per patron increasing by 6.2% to $7.99. This is an all-time record. Note that admissions revenue per patron in the quarter was impacted by an increased proportion of discount tickets during our Tuesday discount program and A-List subscription member attendance. In the international business, on a constant currency basis, total revenue increased by 21% compared to Q1 of 2022, with admissions revenue per patron increasing nearly 6% to $10.61 and food and beverage revenue per patron increasing by 12.5% to $4.96.
This is another all-time record, this growth is further supported by increased premium format or PLF penetration, with PLF revenue representing 29.2% of domestic admissions revenue in Q1 2023. This compares to 21.7% in Q1 2022 and 19.9% in Q1 2019. Our international markets premium format revenue represented 24.1% of admissions revenue, compared to 13.1% in Q1 2022 and 10.6% in Q1 2019. Clearly, guests are increasingly appreciating the premium experience offered by our IMAX Dolby and AMC Prime offerings. Our strong revenue growth per patron is being achieved as guests increasingly choose the premium auditoriums and indulge in our innovative food and beverage offerings, including movie-themed cocktails and collectible items.
Our initiatives to optimize revenue, including blockbuster pricing, are yielding positive results. The increased adoption of our industry-leading AMC app and targeted marketing initiatives are all helping to drive revenue growth. Looking forward, we will maintain our focus on the overall guest experience in order to drive our key performance metrics, including, one, our loyalty programs and the AMC app. two, our food and beverage innovations. three, sight and sound experiences through advanced laser projection technology and premium offerings. four, diversification initiatives such as the successful launch of the AMC ready-to-eat and microwave popcorn and the AMC branded credit card. All of the above, of course, to be achieved while paying very close attention to our overall operating efficiency.
Before moving on to talk about the balance sheet, I do want to just point out that our consolidated statement of operations includes a charge of $126 million related to the potential settlement of litigation in the Delaware courts brought by the Allegheny County Employees' Retirement System et al. $10 million of this charge represents estimated legal fees, net of estimated insurance recoveries, and is included as a reduction in our Adjusted EBITDA for the quarter. If excluded, the Adjusted EBITDA would have been $17 million. A hundred and sixteen million represents a non-cash estimate of the value of the settlement, which is subject to court approval, and this is included in net income but excluded from adjusted net income. Moving to the balance sheet. We ended the quarter with liquidity of $704 million.
This is comprised of $496 million of cash and cash equivalents and $208 million of undrawn credit facilities. During the quarter, net cash used in operating activities was $190 million and non-GAAP operating cash burn, which represents cash from operating activities after deducting capital expenditures and before both debt servicing costs and deferred rent payback, was $139 million. This compares to a non-GAAP operating cash burn of $224 million in Q1 of 2022. Note that our cash burn in the first quarter was, as anticipated, adversely impacted by normal seasonal first quarter working capital needs. We are anticipating an improvement in cash flow during the remainder of 2023. During the quarter, we made significant progress in strengthening our balance sheet.
We raised $155.4 million of gross equity capital through APE unit issuances. We repurchased approximately $103.5 million of debt at an average discount of 45.4%. We reduced the principal amount of our debt by an additional $100 million through a debt-for-equity exchange. The net result of all this in the first quarter is a $208.5 million reduction in the principal amount of interest-bearing debt during Q1 of 2023. During the quarter, we also strengthened our balance sheet by repaying approximately $33.6 million of deferred rent, reducing our deferred rent liability to $123.6 million at March 31st, 2023. One might recall that back in March of 2021, this deferred rent balance was $473 million.
Over the last 24 months, we have lowered the deferred rent liability by nearly $350 million. All told, including the decrease in deferred rent, we have reduced our liabilities by a total of $242 million thus far in 2023 alone. If one goes back to the beginning of 2022, the reduction in liabilities is $620 million. Strengthening the balance sheet is an ongoing priority. To that end, so far in the second quarter, we have already raised another $34.2 million of gross equity proceeds, and we have bought back another $9 million of debt.
During the remainder of 2023, we plan to further reduce the deferred rent balance by another $50 million-$70 million, reducing this liability to approximately $50 million-$75 million by the end of this year. Note that we have fully issued the APE units that were available for issuance under the most recent September 2022 at the market equity program. Our capital allocation priorities, these remain unchanged. One, liquidity. Two, reducing financial leverage and strengthening the balance sheet. Three, investing in our existing business. Four, investing in value-enhancing growth and diversification initiatives. CapEx net of landlord contributions was $41 million in Q1 of 2023. Consistent with our previous guidance, we expect net CapEx for 2023 to be in the range of $150 million-$200 million.
Actively managing our theater portfolio also continues to represent a profit enhancement opportunity. During the first quarter, we added one new theater and we closed 21, which includes the 13 Saudi theaters. This brings the total number of locations closed since the pandemic began to 136, and the total new locations opened to 55 for a net reduction of 81 locations. The combined 55 new locations continue to substantially outperform the 136 closed locations prior to their closings, and they also continue to outperform our underwriting expectations. Looking forward, we're optimistic about the future and the opportunities to strengthen and diversify our business while continuing to enhance our financial position as we progress along our recovery glide path. With that, I'll hand the webcast back over to Adam to provide an update on our strategic initiatives. Adam.
Thank you, Sean. Our goal as leaders of AMC is to increase the value of the company over the long term for our shareholders. We do this by efficiently managing our operations and taking decisive actions to provide the best products, services, and experiences for our guests, which in turn drives revenues and profit growth. At the same time, we seek to invest in the development of our business, enhancement of our theater footprint, and the growth through value-creating diversification initiatives. Over the last three years, we have operated in an extremely challenging environment, as you all know. Survival was our primary focus. That is changing now. It is finally starting to be time again when AMC can focus not only on surviving, but instead on thriving. Thus far this morning, you've heard about the progress we're making in our ongoing recovery.
I'd now like to provide an update on some of the key strategic initiatives we're implementing to help transform AMC in a post-pandemic operating environment. In that light, I'd like to highlight four other recent developments. First, our retail popcorn launch. On March 11th, the day before Oscars Sunday, we launched AMC's ready-to-eat Perfectly Popcorn for an exclusive six-month engagement at about 550 locations of the nation's largest retailer, Walmart. As you know, AMC's Perfectly Popcorn hits special aisle end caps with three varieties of ready-to-eat popcorn: Classic Butter, Extra Butter, and Lightly Salted. Sales were brisk. In fact, so much so that most of the Walmarts sold out of their initial supply. Not only are we very pleased by the initial positive consumer reaction, but so too Walmart is pleased.
Importantly, the second phase of our exclusive Walmart launch began on April 29th when we scaled up the supply chain with the distribution of AMC's Perfectly Popcorn hitting the shelves at approximately 2,600 Walmart stores and for shipping nationally in the United States on walmart.com. AMC's microwave popcorn was also introduced at that time at Walmarts across the country as well. As was the case back in March, again, in the early days, sales are brisk. We think that our home popcorn is going to turn into a substantial business for AMC. We are already currently exploring opportunities for its eventual expansion into other grocery store chains and to other e-commerce and other channels once Walmart's exclusivity ends. Second development, we kept a promise to our shareholders in launching the AMC Entertainment branded credit card.
In partnership with Visa, a world leader in digital payments, and Deserve, a leading mobile-first fintech credit card platform, the rewards-rich AMC Entertainment Visa Card is the only credit card that earns in-theater rewards whenever it's used. AMC Entertainment Visa Cardholders earn extra AMC Stubs points, which they can use as currency, rewards they get with every purchase made on their AMC Entertainment Visa Card. That card exemplifies AMC's ongoing commitment to delivering tangible benefits both to our guests and to our shareholders while reinforcing our bond with our devoted moviegoing patrons. Third development, the creation of APE units in August of 2022 was vital for AMC. It resulted in our being able to raise $418 million of much-needed gross cash proceeds, allowing us to boost our liquidity and reduce debt, including deferred rent, by more than $470 million.
Indeed, AMC is unequivocally financially a stronger company today as a result of our having created APE units. Despite having the same economic and voting rights as our AMC common shares, APE units have consistently traded at a substantial discount to AMC common shares. That discount creates inefficiencies that increase our cost of capital and cause unnecessary and preventable dilution. After careful thought, the AMC board presented proposals to amend our corporate charters to simplify our capital structure via a reverse stock split and a conversion of APE units into AMC common shares. Based on your vote on March fourteen to approve such amendments, we think our shareholders overwhelmingly agree with the importance of doing this.
However, in response to litigation about this shareholder vote, we worked with the plaintiffs and found common ground to settle our differences, which, if approved, will allow the charter amendments to be implemented in accordance with the affirmative shareholder vote. Because that proposed settlement is currently under review by the Delaware Chancery Court, we do not intend during this call to discuss this litigation further. The fourth development, we are so appreciative that Hollywood studios again seem to recognize the incredible value creation of theatrical exhibition. In recent years, some studios were prioritizing their streaming services over theaters. Today, the talk in Hollywood has flipped. Movie makers know there is money to be made in theaters, and studio after studio is rushing to increase the number of movies that they release first theatrically. Traditional studios aren't the only ones interested in launching films on the big screen.
Amazon Studios just theatrically released their wonderful movie about the true story of Nike introducing the Air Jordan sneaker. Air, starring Ben Affleck and Matt Damon, has enjoyed more than $37 million of domestic box office success, and it received far greater consumer acclaim and awareness than it would have had it been released directly to streaming without a theatrical release first. We look forward to showing two Apple theatrical releases later this year. The highly anticipated Killers of the Flower Moon, distributed by Paramount, directed by Martin Scorsese, and starring Leonardo DiCaprio and Robert De Niro. In addition, the riveting movie Napoleon, distributed by Sony, directed by Ridley Scott, and starring Joaquin Phoenix. These initial releases by Amazon and Apple could be just the tip of the iceberg of new content for AMC.
There have been numerous press reports that these two tech giants each plan to spend about $1 billion per year on movies that will be headed first to theaters prior to going on streaming platforms. This means that you'll be able to watch in the friendly confines of an AMC Theatres or an Odeon Cinema on our big screens Amazon and Apple movies that's potentially $2 billion of new content annually headed for theatrical release. We can't wait to showcase their films. In conclusion on this call, we could not be more optimistic about the prospects for the movie slate of films coming out during the remainder of 2023, except only to say that 2024 looks even better.
The 2023 Q1 financial results, coupled with a strong start to the second quarter, make us confident about the path we are on towards an ongoing recovery for AMC in 2023, 2024, and 2025. As I conclude, a special final word to the APEs. I have greatly enjoyed meeting so many of you in our theaters. I personally hosted 23 movie screenings in 22 different cities over the past 18 months, and I do my next one in Berlin, in Germany on May 13th. I also greatly appreciate your communicating with me on Twitter. As I think many of you know, I write all of my tweets myself, and I devote about an hour a day to reading the voluminous inbound comments from you about AMC. It is illuminating for me to hear what you have to say.
I am a better educated and a better able CEO because I get to hear your views directly and unfiltered. Thank you for your ongoing support. Thank you for your passion and enthusiastic commitment to AMC. I look forward to your seeing any number of great movies that will be playing on the big screen of our AMC Theatres and Odeon Cinemas in the weeks, months, and years ahead. Let's now move to questions both from shareholders and from industry analysts.
Thanks, Adam. Let's start with a couple of questions, from our shareholders. The first one here is: Are there any plans to enhance or expand our AMC loyalty programs?
Yes. What a surprise. Yes. Two of the most important marketing programs that we have, or let's say three of the most important marketing programs we have. One is A-List, of course, our subscription program that entitles people to see up to three movies a week for $20 or $25 a month, plus tax. The other is AMC Stubs, in which we have two tiers, Insider and Premiere, that allow moviegoers at our theatres to earn discounts and freebies when they return to AMC Theatres in future as a reward for their current spending at AMC.
Third is, just an enormous amount of outbound communications via email, push notification, text that we send to members of our loyalty programs that talk about the movies that will be appearing in our theaters and other benefits that could accrue to them as a result of their support of AMC. As you might expect, COVID brought all those programs to a grinding halt. Our theaters were shut for almost six months. The volumes in all those three programs started back at a much lower number than where they were, just before the pandemic hit us. We've been in a build-back mode ever since we reopened. I'm pleased to say that the numbers are starting to look good again.
We have a significant number of A-List members, and there are a lot of possible enhancements to A-List that we're thinking about and talking about for 2023 and beyond. One of the most interesting of them is there's something called churn, where A-List members, a small number, but each month some of them drop out. We don't wanna lose those people as AMC customers. One of the things we'll be aiming to do is to communicate directly with former A-Listers who, for whatever reason, have not decided to continue with the program and try to keep them loyal to us. Turning to the Stubs program, there are a whole host of initiatives that are now being tested in some markets. We'll see which of these tests meets with positive consumer appeal.
We're gonna do interesting new things both for Insider members and for Premiere members. As I said, we're testing a variety of options right now in small quantities in certain markets around the U.S. As we learn which of our initiatives are testing well and producing good results, we'll start to roll that out nationwide. As for the communications program, it's ramping right back up. Again, moviegoers at AMC can continue to expect that we'll communicate to them based on their specific moviegoing preferences. We do, after all, know what movies you went to see, and so it makes sense to talk to you about the kind of movies that you historically have liked as new similar movies come out in the future.
Thanks, Adam. That's great. The next question here asks about will AMC expand the distribution of retail popcorn to grocery stores and perhaps in international markets? Is it possible to arrange for the shipping of AMC merchandise internationally?
The answer to your question is almost definitely yes, mostly. Definitely, yes, we would like to expand where AMC Perfectly Popcorn can be bought in the United States. The reason we were so eager to give Walmart a six-month exclusive is, you know, Walmart's one of the great retailers of the world, and it's very rare that there are product launches that start at 2,600 Walmart stores across the United States. They showed great enthusiasm for our product, and therefore we were willing to give them a head start. You can be sure that we'll be talking to just about every major grocery store in the country. We'll be talking to convenience stores in the country. We're looking at other possible places to buy AMC Perfectly Popcorn through e-commerce.
It has been suggested to us that we ought to sell it on amazon.com, for example. It's been suggested to us that we ought to sell it on amctheatres.com in addition to it's being available at walmart.com. We're also gonna look at other unconventional places, potentially to showcase AMC Perfectly Popcorn, like, for example, sports stadiums, company cafeterias that are privately catered. When I say privately catered, I don't mean like fancy privately catered. I just mean, you know, they're companies with big companies with big cafeterias. Hopefully we can get in there too. It might just be the best food that is found in those company cafeterias. There are a lot of places that we can take it after the six-month Walmart exclusive.
We have almost 1 million members of AMC Investor Connect. These are people who've self-identified to us that they have owned AMC shares since we launched the program a year and a half back. We've made offer after offer after offer to our U.S. members of AMC Investor Connect. We're in 12 countries in Europe, because we have 12 different systems, because we're in different languages across Europe, we've not been able to easily make an offer that's pan-European, the way we can make an offer that's pan-U.S., so to speak, that's good across the U.S. I think that our European shareholders have taken short shrift in Investor Connect.
We communicate with them just as much as we do with the U.S. shareholders, but the offers have been light, and it's a high priority for me in 2023 to come up with ways to make AMC Investor Connect offers to our international shareholders, in Canada, in Europe, in the Middle East, where we have theaters.
That's very exciting. Thank you. The next question here is talking about AMC's plans to expand theaters, both in new markets within the U.S. and perhaps in other countries as well.
We do have plans going forward, and it's impressive the plans that we've already implemented. We've done a tremendous amount of work addressing what we call our fleet of theaters since the pandemic hit us in March of 2020. We've actually closed, like, 150 of our roughly 1,000 theaters because they were money losers or because they were in terrible shape and they were end of their lease, or some other good reason to close. At the same time, we either acquired or built from scratch 66 new theaters. Interestingly, the 66 new theaters greatly outproduce in profitability the 100+ that we closed.
We're gonna continue to look at our theaters every single year, and if there's deadwood in our fleet of, you know, over 900 theaters throughout the world, we'll take them out of our fleet. At the same time though, we're gonna continue to add theaters. Where we've added theaters, we've been very successful. We bought just under half of the ArcLight Pacific Circuit, mostly in California. The Grove Theater and the Americana at Brand Theater, two of the ArcLights, the Pacifics, I guess, they're ArcLight Pacific, they're Pacifics, that we picked up. The Grove is routinely in our five to seven most highest grossing theaters in the entire United States. The Americana at Brand is routinely in the 12 most highest grossing theaters in the entire United States.
We opened a new theater just a couple of months ago at a new Westfield Mall in Topanga, sort of above Malibu. We shut a nearby theater. It was a mile or two away. It was also in a Westfield Mall. The old Westfield Theater was making no money. The new Westfield Theater, the one at Topanga, it's a beautiful theater by the way, with an incredible food court that's opening up this week at that mall. That new theater is among the 20 highest grossing theaters for AMC in the United States. The list goes on and on where we've added theaters, they've done really well. The Bow Tie Cinemas that we bought, mostly in Connecticut. It looks like we bought more than half of the Bow Tie Circuit.
When you look at the purchase price that we paid, if you look at the EBITDA in those theaters, it's looking like we acquired those theaters at 3 x current EBITDA. That's a bargain, compared to where we currently trade and where movie theaters historically have traded. We think there are any number of opportunities to continue to add theaters into our network that will perform well in our network, that either are built-from-scratch theaters, or come to us from failing circuits, who've had difficulty surviving COVID. At any given time, we're talking to a half a dozen different movie theater chains about possibly acquiring some or a significant number of their theaters and bringing them into AMC on attractive economics. That's true not only in the U.S., but also internationally in Europe.
Terrific. Question here we've all seen in the news. Can you comment on the possible impact of the Hollywood writers' strike on AMC, and particularly the availability of new movies perhaps in 2024?
Sure. Look, we're very sympathetic to the real problems that exist for members of the Writers Guild. Streaming has changed the landscape of television. It's changed the economics of what writers earn. We are hopeful that the Hollywood producers and the Writers Guild can work in good faith to craft a solution that's good for all parties. As far as its impact on AMC and the movie industry, if this is a short strike, and when I mean a short strike, I don't mean days, I mean months. Its impact will mostly be felt on television programming because the movies for 2023 and 2024 have pretty much been written. In many cases, they've already been filmed. I think only a very prolonged writer strike would have impact, material impact, on the movie theater industry or on AMC.
Right. question here: Can you comment on the take-up of the AMC credit card and the sale of AMC-branded retail popcorn? What other initiatives are planned?
You know, we launched the AMC credit card a couple of weeks ago, and we only launched the popcorn at home a couple of weeks ago. We've said that sales for the popcorn are brisk. I think we've announced publicly. If I didn't, we'll announce it here. 80,000 people signed up on the waitlist to be notified when the AMC credit card was being launched. The AMC cards that have been provisioned at this point are ahead of our expectations. It's not 80,000, obviously, but the number of cards that have already been out provisioned are ahead of our expectations. We're very pleased with those initiatives. As for other new initiatives in the works, there are many. I'll reveal one for the first time today, which I'm particularly excited about.
We noticed recently as a result of the pandemic and the supply chain shortages that candy manufacturers had increased their price to us by a huge amount. Some candy makers increasing their cost for candy, wholesale candy as much as 33% in a one-time bump. That got us thinking very hard about our candy. We realized that we could manufacture a private label brand of candy to very high quality standards, price it less expensively than our current candy is priced, and have a higher profit margin because our cost to manufacture the private label brand is so much less than the normal brands that you've seen in our theaters for years. This doesn't mean we're gonna discontinue our branded candy.
Of course, we'll continue it, but I would expect that sometime in late 2023, early 2024, if our purchasing department doesn't get off its keister. I know, but I'm gonna hold out for late 2023 so that we can introduce a private label brand of a popular candies in our theaters, offer them to consumers at a lower price and achieve a higher profitability in doing so. For the people who want the branded candies, of course, we will showcase them in all their beloved glory too. I like that one. We're running out of time. You know, I've been answering all these questions for over a year now.
Yeah.
I'd like to ask you one for a change. Let's turn to investor questions. In your presentation on this call, there were a lot of numbers, and I would just like you to highlight two. How much cash were we able to generate from the sale of equity since the APE was created in August of 2022? If you go back to January 1 of 2022 all the way to today, how much debt have we been able to pay off, including the deferred rents which we have worked down? Those two numbers, how much cash we've generated and how much debt we've reduced, are extremely important in considering the state, the current state of the AMC balance sheet and the progress that we've made in shoring it up.
Thanks, Adam. That's a really, as you say, important question. The two numbers that I want people to take away from this is, one, since the creation of the APEs and an indication of how important that creation was and the impact that it's had to AMC is, one, we've been able to raise $480 million of cash as a result of the creation of the APEs. It's a significant impact on our liquidity and cash position. Maybe even more importantly is the debt reduction. If one goes back to the beginning of 2022 and just look over the last 18 months, we have reduced our debt balance by $620 million. That includes a reduction in deferred rent. That's a significant reduction in our debt. I think I'll add one more number.
You asked for two, but I'll add one more number that I think people don't recognize that well, is that if you look at our net debt, net financial debt position today as of March 31st, and you compare that to our net debt position just prior to the pandemic, December 31st, 2019, what one sees is actually our net debt is surprisingly less than it was pre-pandemic by more than $440 million. It's not more, it's less than it was pre-pandemic. I, you know, I think that is a real indication of the importance of the equity raises that we have done since the pandemic, and particularly as a result of the creation of the APEs.
Thank you. Operator, are there any questions from analysts that we should be taking?
Yes, sir. We have one question from Eric Wold from B. Riley Securities.
Thanks. Good morning, Adam and Sean. Congratulations on the strong results and turning the positive Adjusted EBITDA. I wanna focus on the structural improvements in the business that you've made over the past few years, given I think that those benefits may not completely be understood. You know, I'm currently projecting that domestic industry box office revenue to get back to pre-pandemic levels by 2025, but that attendance will continue to lag that recovery, as you talked about, you know, that recovery is also being fueled by consumers choosing the, you know, premium large format screens and driving up average ticket prices.
Can you talk about the structural benefits of the expense reductions you've made at both the corporate and theater levels, along with the benefit of the higher per patron spending? If it's possible that AMC could actually return to pre-pandemic profitability, even if attendance remains below pre-pandemic levels?
Sure. I'll respond to that. You know, we had no choice. We had to cut costs like crazy, 'cause if we didn't, we're gonna run out of cash. Nobody likes to even think about job loss, but the pandemic forced us to be lean. If you look at our corporate headquarters, it only has about 2/3 of the people working here today that it had pre-pandemic. If you look at our theaters, the management staff at our theaters is down about 1/3 from the amount of management staff we had prior to the pandemic. We've learned to be more efficient. Interestingly, at the same time, we're paying higher wages. Our film crews are earning a lot more, but there may not be as many of them in the theater at any one time.
I know that so many of those people who work for us work very hard, and they like the fact that whereas we used to be a minimum wage employer, now we're routinely paying between $10 and $15 an hour, depending upon the market for the line workers at the theater. Number one, fewer management at headquarters, fewer management in theaters, higher paid, but fewer employees in our theaters, and our guest satisfaction scores are all very high. The leader management team is still running the company just fine. On the revenue side, I guess I'm not supposed to tell you second quarter numbers yet, but I'll just tease that the food and beverage per patron spending in April higher than what it was in the first quarter.
We are killing it in F&B. Slightly higher, by the way, don't get too excited. We are killing it in F&B. Our F&B spending per patron pre-pandemic was around $5.60. In the first quarter, it was $7.99. That's up $2.40 per patron, and 85% of that drops to the bottom line. That definitely changes the contribution per patron. The same is true with ticket price. Our ticket prices have not risen by 20% since pre-pandemic in actual fact, but when you include the mix changes, because there's been such a surge of attendance in IMAX auditoriums and Dolby Cinema auditoriums, our average realized price per ticket is up around 20%. That, again, that's not raw price increase, that's mix change.
Where there's our PLF screens, as I talked about in our prepared remarks, our PLF screens are over-indexing like five and sixfold in terms of productivity, and we get a much higher price. Which means again, higher contribution per patron, which for your question, means that we don't need as many attendees going forward as we needed in the past to generate EBITDA. With that being questioned, and we're over an hour, and you all are busy, you're all busy and other things to do, we're gonna let you go. I wanna end the call by thanking all of you who care about AMC and reminding you that there is just an incredible array of really great movies that are coming out between now and Christmas of 2023. You should spend a lot of time in movie theaters.
If you do, you will be amused, and you will be entertained. As Nicole Kidman says, "You'll see dazzling images on a huge silver screen, and you'll see stories that are perfect and powerful," 'cause here at AMC, they are. Thank you for joining us today.