By CATHERINE THORBECKE, ABC Information
(NEW YORK) — AMC Leisure posted a internet lack of $4.59 billion for 2020 because the coronavirus pandemic compelled most of its theaters to shutter for a big chunk of the previous 12 months.
The nation’s largest movie show chain additionally mentioned in an earnings report Wednesday night that it misplaced some $946 million within the final quarter of 2020 alone.
Even earlier than the pandemic upended the financial system, the movie show trade was already below strain amid the rise of streaming companies.
Regardless of going through what he calls “essentially the most difficult market circumstances within the 100-year historical past of the corporate,” AMC CEO Adam Aron expressed optimism for the film chain’s future as restrictions ease and a vaccine rollout has lastly introduced an finish to the pandemic in sight.
“As we sit right here in the present day, we see that vaccinations are occurring in the USA at a brisk clip, our theatres in New York Metropolis have lastly opened with theatres in Los Angeles seemingly opening shortly as effectively, blockbuster film titles are at the moment scheduled to be launched in important amount within the coming few months, and we’ve got greater than $1 billion of money readily available,” Aron mentioned in a press release.
“Taking these details collectively, we’ve got purpose to be optimistic about AMC’s skill to get to the opposite aspect of this pandemic,” he added.
Aron additionally famous that the corporate has been working arduous to handle its reported liquidity points that had raised alarm bells for buyers and the general public final 12 months.
“Since March of 2020, we’ve got raised roughly $2.2 billion of gross money proceeds from new debt and fairness capital, securing greater than $1 billion of concessions from collectors and landlords, elevating greater than $80 million from asset gross sales and seeing $600 million of convertible notes convert from debt to fairness,” Aron said.
He continued: “I’m assured that the actions that we’ve got taken have positioned us effectively to capitalize on pent-up demand for film going because the rollout of vaccines accelerates.”
The corporate additionally mentioned that as of October 2020, it has resumed operations at almost 80% of its home theaters however then new mandates in response to a resurgence of COVID-19 compelled lots of them to shut once more. As of the tip of December 2020, AMC mentioned it had resumed operations with restricted seating capability at roughly 67% of its home theaters.
AMC inventory, which at one level was among the many so-called “meme shares” touted by the Reddit r/wallstreetbets discussion board, climbed almost 5% Thursday morning on the heels of the earnings report.
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