AMC Entertainment said revenue for the September quarter plunged 91% to $119 million. Losses widened to $905 million from $54 million as the financially strapped exhibitor struggles with the impact of the global pandemic.
The financially struggling chain’s COVID trials have been high profile and heavy hitting because of its size — the biggest chain in the world and second biggest in the U.S — and its balance sheet, which showed sizeable debt even before COVID hit leaving it less flexibility and financial runway than other chains when business stopped completely in March. It has reopened choppily.
Adam Aron, CEO, said, “The magnitude of the impact of the global pandemic on the theatrical exhibition industry was again evident in our third quarter results, as theatre operations in the U.S. were suspended for nearly two-thirds of the quarter. And yet, despite unrelenting obstacles, the AMC team continued to make significant progress in pursuit of our three key priorities: to strengthen our liquidity position; to dramatically reduce operating and capital expenditures, and to continue to safely and successfully restore our operations.”
AMC recently pre-announced some third-quarter numbers, including revenue.
Theaters are open across including New York and California but notably still dark in key markets in New York City and Los Angeles. And major European countries have renewed lockdowns and shut theaters again as the pandemic spikes heading into winter.
The company has been doing what it can to raise cash. A series of stock offerings to raise cash include the latest filed with the SEC earlier Monday to come up with just shy of $50 million by selling 20 million shares. A major debt restructuring over the summer saved it hundreds of millions. But it’s a race against time. Theater, even where open, have struggled to attract audiences with high-profile new studio product.
AMC has also been selling assets, including its Baltic theaters. It said last month it would lack the cash necessary to keep going much beyond the end of the year unless things changed.
In the earnings release, Aron’s gave a recap of the company’s efforts:
“Starting in March, we raised approximately $900 million of gross proceeds from new debt and equity capital, secured more than $1 billion of concessions from creditors and landlords and raised more than $80 million from asset sales. The duration and impact of this pandemic are still affecting us to this day and are certain to continue to affect our results going forward. And yet, as has been the case at AMC for 100 years, we have remained resilient and resourceful. The liquidity enhancing and leverage reducing actions that we already have taken and will further need to take, combined with our relentless focus on efficiency and cash management, are all crucial to navigating through this storm.”
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.