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AMC Theatres Expects 91% Decline in Q3 Revenue

Unaudited snapshot is not a good look

AMC Entertainment unveiled some unaudited Q3 2020 financials on Tuesday morning, when the company said it expects a revenue decline of 91% from last year.

Year-to-date, the revenue decline is -73%. Yeah, the coronavirus pandemic has obliterated the movie theater business.

AMC Theatres is looking at $119.5 million in third-quarter revenue, according to a company filing with the Securities and Exchange Commission (SEC). In Q3 of 2019, the largest movie-exhibitor chain in America drew $1.316 billion.

Hey, at least operating expenses have basically been halved.

AMC said it had $417.9 million in cash on hand at the end of September 2020. Since then, AMC has raised more than $50 million through the sale of common stock.

Just one week ago, AMC warned it could be out of cash by the end of 2020 — or by early 2021 at the latest.

In this morning’s SEC filing ahead of the company’s official, audited third-quarter financial reporting, AMC reiterated its pursuit of additional financing, continuing attempts to negotiate better lease terms with landlords and pursuit of asset sales/new partners.

AMC got some good news on Monday when New York state agreed to reopen theatres. However, theaters in New York City remain closed.

As a result, AMC stock shot up 22% on Monday. That appears large on a percentage basis, but the share price itself is still quite cheap, lending to such volatility. Yesterday, shares in AMC closed at $3.54 apiece.

When the U.S. stock markets reopened for their official trading day at 9:30 a.m. ET this morning, AMC stock immediately dropped 11%.

“The reopening of movie theatres around the country is essential to the theatrical industry and the entire entertainment ecosystem,” AMC CEO Adam Aron said on Monday. “It has become clear that movie studios are not willing to release blockbuster product until key major markets are open. Therefore, it is a monumental step in the right direction for our entire industry that theatres are starting to reopen across the state of New York.”