AMC Theatres CEO Gerry Lopez to step down

AMC Theatres Chief Executive Gerry Lopez is stepping down after six years for a job at another company.

Executives for the Leawood, Kan., cinema chain, the nation’s second-largest, did not specify where Lopez would be going, but told analysts during a conference call that Lopez’s new job will be at a bigger company outside the theater industry, according to people who were on the call. Lopez also is stepping down from AMC’s board of directors.

AMC appointed Craig R. Ramsey, its chief financial officer, as interim president and CEO while the company looks for a permanent replacement after Lopez’s departure becomes official Aug. 6.

When Lopez joined the chain in 2009, he was considered a movie business outsider, having spent his career in the food and beverage industry at companies such as Frito-Lay, Pepsi, Procter & Gamble and, most recently, Starbucks.

During his tenure, AMC has invested heavily in new technologies, premium services and renovations to attract new moviegoers at a time when theaters face rising competition from alternative entertainment options in the home. Other exhibitors have followed suit.

The firm was owned by a group of private equity firms when Lopez took the reins. It sold for $2.6 billion in 2012 to the Chinese conglomerate Dalian Wanda Group, which promised to invest millions of dollars in improvements. AMC then held an initial public offering in late 2013.

“Lopez did a very good job with a strategic turnaround at AMC,” said analyst Eric Handler of MKM Partners. “Keep in mind, he is not a cinema lifer. He came from outside the industry.”

AMC’s shares fell $1.01, or 3%, to $31.89 on Wall Street. The shares have climbed 41% in the last year.

Analysts said that they expect the transition to be a smooth one, given Ramsey’s two decades of experience at the company, and that Lopez’s departure does not appear to indicate problems for AMC.

“Given that Mr. Lopez left on good terms, we suspect that all is well at AMC,” Michael Pachter, an analyst at Wedbush Securities who covers AMC, said in a note to clients.

Lopez is leaving the company at a time when the box office is riding high. Many analysts expect U.S. and Canada ticket sales to top $11 billion this year industrywide, thanks to blockbusters including “Furious 7,” “Jurassic World” and “Avengers: Age of Ultron.”

AMC, which has 347 locations, reports second-quarter earnings on July 29.

The company recently caused a stir in Hollywood by making a deal with Paramount Pictures that will bring a couple of the Melrose Avenue studio’s theatrical-release movies to home video much earlier than usual.

Previous attempts to shorten the gap between theatrical and home-video release have sparked battles between cinema chains and studios, though response to the new pact, which also involved Canadian exhibitor Cineplex, has been muted.

Lopez said in a statement that he is leaving AMC in good hands and was upbeat about its future prospects.

“I believe the strategic and financial foundation is in place for continued success well into the future,” he said. “I now plan to bring my passion for strategic refocus to another industry, where guest focus and strategic redeployment are equally important.”

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