AMC Entertainment (AMC) Reports In-Line Q4 EPS, Revenue Beats

AMC Entertainment (NYSE: AMC) reported Q4 EPS of ($3.15), in-line with the analyst estimate of ($3.15). Revenue for the quarter fell 88.8% to $162.5 million but beat the consensus estimate of $142.35 million. Cash at December 31, 2020 was $308.3 million excluding restricted cash of $13.1 million. U.S. attendance was down 92.3% in the quarter.

As of December 31, 2020, AMC was operating at 394 domestic theatres with limited seating capacities of between 20% and 40%, representing approximately 67% of domestic theatres and 61% percent of 2019 domestic same-theatre revenue.

As of March 5, 2021, AMC was operating approximately 527 of its 589 domestic locations, and approximately 78 of its 356 international locations.

Adam Aron, CEO and President of AMC commented, “This past year has presented AMC with the most challenging market conditions in the 100-year history of the company. As unprecedented as these times have been, so too is the unprecedented drive and commitment of the AMC team to take swift and decisive actions to ensure our survival and our success. As we sit here today, we see that vaccinations are occurring in the United States at a brisk clip, our theatres in New York City have finally opened with theatres in Los Angeles likely opening shortly as well, blockbuster movie titles are currently scheduled to be released in significant quantity in the coming few months, and we have more than $1 billion of cash on hand. Taking these facts together, we have reason to be optimistic about AMC’s ability to get to the other side of this pandemic.”

Aron continued, “During the fourth quarter, more than 8 million U.S. and international patrons confidently returned to an AMC theatre, assured of their safety due, in large part, to the robust steps we have taken through our AMC Safe & Clean protocols, designed in consultation with Clorox and current and former faculty of Harvard University’s acclaimed School of Public Health, to ensure that we are reopening responsibly and with a focus on the health and safety of our guests and associates. The guest feedback we continue to receive is the highest we have seen for the cleanliness of our theatres, and I am grateful to our theatre crews for their focus and diligent efforts to successfully implement our safety protocols.”

Aron added, “Our most important single point of focus, after ensuring a safe and clean environment for our theatre guests and workforce, has been to strengthen AMC’s liquidity profile. Since March of 2020, we have raised approximately $2.2 billion of gross cash proceeds from new debt and equity capital, securing more than $1 billion of concessions from creditors and landlords, raising more than $80 million from asset sales and seeing $600 million of convertible notes convert from debt to equity. I am confident that the actions that we have taken have positioned us well to capitalize on pent-up demand for movie going as the rollout of vaccines accelerates. We look forward to returning to an environment of unfettered movie theatre access for our guests, and we are eager to showcase the sizable and widely anticipated slate of new films that our studio partners have to offer.”

For earnings history and earnings-related data on AMC Entertainment (AMC) click here.

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