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 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.
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 continued to have “productive discussions with local and state authorities on the appropriate time for a resumption of operations.”
“This past year has 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 going on 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 as well, Blockbuster movie titles 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 the ability to do so. ‘AMC to move to the other side of this pandemic. “
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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.
The first national theaters opened on August 20, 2020. In a crucial move for the industry, New York City opened theaters on March 5 after one 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. Los Angeles theaters may open shortly. That would mean an attempt for the country’s two biggest film markets, although ongoing lockdowns in major European markets are a big deal for studios.
AMC stock has gone from a 52-week low of less than $ 2 to more than $ 20. They closed Thursday before the numbers were down 6% to just under $ 10. Wall Street analysts believe he is overvalued, although increasingly bullish on the outlook for the industry. “We believe that it may take years for AMC to revisit its previous growth strategy as it repays its growing mountain of debt,” said Michael Pachter of Wedbush Securities 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-indebted capital structure. ”