Shares of AMC Entertainment Holdings Inc. fell in after-market trade on Tuesday after the company reported its 12th straight quarterly loss on revenue that beat analysts’ projections.
A net loss of $226.9 million or 22 cents per share, was announced by the movie theatre chain and meme stock craze in the third quarter up from a net loss of $224.2 million or 22 cents per share in the third quarter of 2016.
AMC, +18.11% posted a net loss of 20 cents per share after adjustments, which is better than the adjusted loss of 22 cents per share it reported a year ago. As of the second quarter of 2019, the corporation had not posted a GAAP quarterly profit since the second quarter of 2018, over a year before the pandemic.
Second-quarter sales for AMC came in at $968.4 million, up from $763.2 million the year prior. The consensus estimate among the analysts polled by FactSet was for revenues of $961 million and a loss per share of 20 cents or an adjusted loss per share of 23 cents.
Following the release of the findings, the company’s stock dropped by 4% in after-hours trade. The meme stock’s share price peaked at $72.62 on June 2, 2021, but has since plummeted by 66.5%. With a 52-week high of $27.30, AMC stock closed Tuesday at $5.62, up 5.4%.
— Red Pill Bill (@RedPillBillCh) November 10, 2022
AMC CEO Adam Aron said in a statement, “Precisely as anticipated and indicated on our previous quarterly earnings call, a relatively disappointing industry-wide box office in the later two-thirds of 2022’s third quarter negatively impacted our third quarter results.”
According to Aron, AMC’s Admissions Revenue and Food and Beverage Spending Rose 12% and 30% over the Third Quarter of 2019 Despite the Pandemic
Adjusted EBITDA for AMC, which calls itself the world’s largest movie theatre chain, came in at a loss of $12.9 million, up from a loss of $5.4 million in the same period a year ago.
At the conclusion of Q3, AMC had a cash balance of $895.7 million, marginally under the quarterly target of $895.6 million. During a conference call to discuss the findings, Aron stated, “We will use it to continue to develop but also to continue to de-lever.”
Aron added that AMC is “final spasms” away from launching its own credit card program. He predicted that the card would be released “if not sooner” than the first quarter of 2023.
The CEO also updated investors on the future of the company’s branded popcorn. He announced that by the middle of 2023 you would be able to get AMC Perfectly Popcorn at supermarkets all around the United States.
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Over the past two years, the theatre chain has gone through a dramatic transformation, going from being a victim of a pandemic to being a sensation based on memes. In January 2021, AMC raised $917 million by tapping the equity and loan markets, capitalizing on the sharp increase in the value of company shares.
— AMC NOT LEAVING (@AmcNotLeaving) November 10, 2022
Volatility was evident in the market after August, when the company’s AMC Preferred Equity Units APE, +7.69% or APEs, began trading. You can also read about AMC Entertainment’s stock loss details here.
For its newest move in the ongoing battle over stock issuances, AMC devised the APE equity unit, which is essentially a 2-for-1 stock split. With the APE special dividend, AMC is also aiming to reduce its large debt. The investors that made the corporation famous are sometimes referred to as “apes” or “ape nation,” which is where the term comes from. About 517,000,000 shares of AMC stock were given an APE.
Since their inception the APEs have dropped by 73.3%, hitting a low of $1.41 intraday on Monday. On August 22, the dividend peaked during the trading day at $10.50.
On Tuesday AMC announced that it had sold around 14.9 million shares of its APEs raising net proceeds of about $36.4 million.
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