AMC Entertainment’s revenue fell to $ 162 million last year from nearly $ 1.5 billion a year, while the global pandemic had an exhibit. It beats expectations and comes out about $ 20 million above Wall Street’s consensus estimates. The stock is up 3% in late trading.
Net losses increased to $ 946 million, including a solid one-time impairment expense, from $ 13.5 million the previous year.
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As of March 5, AMC has operated 527 of its 589 local branches and 78 of its 356 internationally. In regions where theaters have not yet been able to open AMC, they have continued to ‘have productive discussions with local and state authorities about the appropriate time for the resumption of operations’.
“Over the past year, AMC has presented the most challenging market conditions in the company’s 100 – year history,” CEO Adam Aron said in a statement. He said things look like a vaccination is taking place in the United States with a quick cut; our theaters in New York City have finally opened with theaters in Los Angeles, which will probably open soon as well. significant amount in the next few months, and we have more than $ 1 billion in cash on hand. Summarizing these facts, we have reason to be optimistic about AMC’s ability to get to the other side of this pandemic. ”
Aron holds a conference call at 5:00 PM ET to discuss the numbers.
It was gripping, but thanks to capital increases last year and earlier in 2021, AMC avoided bankruptcy and had funds to remain solvable through the summer. This and its new-life stock, which gave a huge boost by retailers on Reddit in January, give the company more flexibility as the vaccinations open up the economy and return moviegoers to theaters – in larger numbers and hopefully with bigger cinemas. than some markets currently allow.
AMC’s first domestic theaters opened in late August. In an important step for the industry, the city of New York opened theaters after a year, but only at 25% or a maximum of 50 people per screen. AMC has opened all of its 13 NCY locations. If Los Angeles is online, it will be the two largest movie markets in the country possible. However, continuous closures in major European markets are a major problem for studios.
AMC shares, meanwhile, rose from a 52-week low of below $ 2 to above $ 20. Shares closed Thursday before hitting 6%, just below $ 10.
Wall Street analysts believe it is too high, despite the prospect of a more optimistic outlook. “We think AMC could take years to revisit its previous growth strategy as it repays its growing mountain of debt,” Michael Pachter of Wedbush Securities said in a note earlier this week. He has a “neutral” rating on the stock. It has doubled its price target to $ 5, which is good but still lower than where it is currently trading.
Analyst Rich Greenfield hit sales at AMC this morning, saying: ‘There is a significant gap between the future of total attendance at cinemas and in turn the earnings of AMC in relation to the current business value and the capital structure that widely used. ‘