Jim Cramer Says AMC Needs Crowds to Survive
AMC revealed plans to re-open its global movie theaters following a first quarter loss or more than $2 billion.
AMC said it plans to have cinemas operating under social distancing guidelines as early as next month, following what it called an 'exhaustive analysis' of underperforming theaters in its global chain.
The decision followed weaker-than-expected first quarter revenues of $941.5 billion for the world's biggest cinema group, as well as a net loss of $2.176 billion that included nearly $1.9 billion in impairment charges.
"Our current plan is to have almost all of our theaters globally operating in July, which is time for and assumes that the industry stays on schedule for Warner Bros' release of Christopher Nolan's Tenet, currently scheduled for July 17 followed by Disney's release of Mulan currently scheduled for July 24," CEO Adam Aron told investors on a conference call late Tuesday.
"The second half of this year continues to have a strong film slate that benefits from really big titles such as Wonder Woman 1984, Black Widow, Top Gun: Maverick, A Quiet Place II, among many, many others," he added. "Of course, I should point out that this entire situation is fluid and we stand prepared to adjust the timing of our theater operation schedule as necessary to comply with local regulations and the timing of major studio releases."
Jim Cramer breaks down what it would take for him--as a consumer and an investor--to invest in AMC. Spoiler: It would take a lot.
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