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AMC Entertainment’s revenue fell in the last quarter and fell to $ 162 million from nearly $ 1.5 billion a year as the global pandemic included exposure. It exceeded expectations, beating Wall Street’s consensus estimates by around $ 20 million. The stock is up 3% at the end of the session.
Net losses widened to $ 946 million, including a large one-time impairment charge, from $ 13.5 million the previous year.
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As of March 5, AMC operated 527 of its 589 national sites and 78 of its 356 internationally. In areas where theaters are not yet able to open, AMC said it continues to have “productive discussions with local and state authorities on the appropriate time for a resumption of operations.”
“Last year presented AMC with the most difficult market conditions in the company’s 100-year history,” CEO Adam Aron said in a statement. He said things were improving as “vaccinations are rolling in the United States at a rapid pace, our theaters in New York have finally opened with theaters in Los Angeles likely to open soon, headlines. Blockbuster movies are currently slated for release in significant numbers over the next few months, and we have over $ 1 billion in cash on hand. Given these facts, we have reason to be optimistic about AMC’s ability to get to the other side of this pandemic. “
Aron will host a conference call at 5 p.m. ET to discuss the numbers.
It was tough, but thanks to capital increases last year and earlier in 2021, AMC has avoided bankruptcy and has the funds to stay solvent throughout the summer. That, and its newly aggressive action, which received a huge boost from retail traders on Reddit in January, gives the company more flexibility as vaccinations push the economy to reopen and moviegoers return to the streets. theaters – in greater numbers and hopefully with larger capacity theaters. that some markets currently allow.
AMC’s first national theaters opened at the end of August. In a move crucial for the industry, New York City opened theaters on March 5 after a year, but only at a capacity of 25% or a maximum of 50 people per screen. AMC has opened all of its 13 NCY sites. When Los Angeles is online, it would be a stroke of luck for the country’s two biggest movie markets. However, the ongoing closures in major European markets are a big problem for studios.
AMC stock, meanwhile, fell from a 52-week low of less than $ 2 to over $ 20. Shares closed Thursday ahead of the numbers down 6% to just under $ 10.
Wall Street analysts believe it is overvalued despite the prospect of a more bullish outlook exposure. “We believe it may take years before AMC can revisit its previous growth strategy as it pays off its growing mountain of debt,” Wedbush Securities’ Michael Pachter said in a note earlier this week. It has a “neutral” rating on the title. It has doubled its price target to $ 5, which is good but still well below where it is currently trading.
Analyst Rich Greenfield launched a ‘sale’ on AMC this morning saying, ‘There is a substantial mismatch between the future of overall movie theater attendance and, therefore, AMC’s profit power versus its current enterprise value and its over-leveraged capital structure. ”
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