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AMC Entertainment Holdings Inc. is enjoying strong demand from moviegoers, but faces ongoing liquidity challenges, says CEO Adam Aron.
“AMC is killing it at the box office right now, so hopefully by 2024/2025, COVID-19 will just be a bad memory,” Aron tweeted late Sunday. “But we face liquidity challenges before then. My recent Open Letter risks are real.”
Last month, in an open letter to shareholders, Aron warned that, if AMC
AMC,
is unable to raise equity capital, the risk “materially increases” of the company conceivably running out of cash in 2024 or 2025, or of AMC being unable to satisfactorily refinance and stretch out the maturity of some of its debt.
Related: ‘Barbenheimer’ may have sparked euphoria, but ‘cash is very tight’ for AMC, CEO warns
AMC’s plan to convert its AMC Preferred Equity units
APE,
to common stock was blocked last month when a Delaware judge rejected a settlement that would have allowed the deal to proceed. The stock-conversion plan was part of the movie theater chain and meme stock darling’s ongoing battle to eliminate debt.
As of March 31, AMC’s cash position was $495.6 million, down from $631.5 million in the same period last year, and had liquidity availability of $703.7 million.
AMC has filed a modification in an attempt to address the Delaware court’s concerns.
On Sunday the AMC CEO also discussed the successes of “Barbie” and “Oppenheimer,” noting that the former has hit $1 billion at the box office and the latter has hit $500 million. “In only 3 weeks for Barbenheimer, the results so far should take your breath away!” he tweeted. “Barbie has crossed $1 billion in movie theatre ticket sales worldwide. Oppenheimer crossed a half billion dollars. The ‘movie theatres are dead’ prognosticators are Ducking Wrong! Quack, quack.”
AMC reports its second-quarter results after market close on Tuesday. Analysts surveyed by FactSet expect AMC to report a second-quarter loss of 4 cents a share and revenue of $1.287 billion.
Of eight analysts surveyed by FactSet, three had a hold rating and five had a sell rating for AMC.
Related: AMC has again asked NYSE and FINRA to look into the trading of its stock
AMC’s stock rose 1.6% in premarket trades Monday. The company’s stock has risen 21.2% in 2023, outpacing the S&P 500 index’s
SPX
gain of 16.6%. The APEs are up 27% this year.
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