AMC Entertainment (AMC) - Get Free Report posted a narrower-than-expected second quarter loss Monday as the world's biggest movie theatre chain capitalized on big blockbuster films and a rebound in traffic in the waning months of the coronavirus pandemic.
AMC's loss for the three months ending in June was pegged at 71 cents per share as revenues rebound by nearly 2,300% from last year to $444.7 million as theatres re-opened in the wake of the coronavirus pandemic. The headline loss was 20 cents inside the Street consensus forecast and up from a loss of $5.38 per share over the same period last year. Revenues beat the Street by around $62 million.
“The second quarter of 2021 was transformational for AMC. We raised yet another $1.25 billion of new equity capital (before commissions and fees) in the quarter, boosting our quarter ending liquidity to more than $2 billion (including cash and undrawn revolving lines of credit) which is about double the previous highest ever such mark in AMC’s 101-year history," said CEO Adam Aron. "We believe this gives AMC financial staying power to navigate boldly amidst coronavirus waters."
"By June 30, substantially all of our theatres were open again to entertain and delight our guests. Thanks to increased vaccination counts in the countries we serve, we started to see rising movie going demand, and we safely welcomed more than 22 million guests back to our theatres across the globe during the course of the second quarter," he added. "New blockbuster films released during the quarter drove successive new pandemic-era box office records. And fortunately for us, as guests returned to our theatres, they splurged on our food & beverage offerings, which admittedly is quite a high-margin business."
"At the same time, we diligently managed our costs in every aspect of our operations. These actions produced financial results in the quarter that were considerably well ahead of our own and third-party expectations,” Aron said.
AMC shares were marked 5.9% higher in extended-hours trading immediately following the earnings release to indicate a Tuesday opening bell price of $35.70 each.
Earlier this spring, AMC scrapped plans to have shareholders approve a planned capital increase that would have diluted existing stockholders, adding that it won't seek approval for anymore issuance until at least 2022, following what CEO Aron described as a 'split' in opinion among the company's retail investor base.
The move follows the launch last month of an initiative called "AMC Investor Connect," a portal that will allow its 3.2 million retail investors to 'self-identify' as stockholders and receive what the company calls 'special offers' and updates.
AMC said at the time that, following the exit China-based Wanda Group, no single entity has an ownership stake of more than 10%.