© Reuters. FILE PHOTO: An AMC theater is pictured amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., January 27, 2021. REUTERS/Carlo Allegri/File Photo
By Chavi Mehta
(Reuters) – AMC Entertainment Holdings Inc said its third-quarter loss increased, with the theater chain operator burning more cash to keep its 950 theaters afloat as fewer and fewer blockbusters hit release to reduce the number of visitors to the theater.
The company also said it raised only $36.4 million from the sale of 14.9 million APE preferred shares, which were listed in August, leaving them down 5.6% in extended trading.
Wedbush Securities analyst Alicia Reese said: “I think their announcement that they are starting to sell 425 million APE shares that have been announced at such a low price per share speaks to the need for cash. their (or perhaps more frivolous spending).
Common stock of Leawood, the Kansas-based company, fell about 4%.
Chief Financial Officer Sean Goodman said the operating cash burn for the quarter was negative $179.2 million and was impacted by “relatively quiet box office sales in August and September.”
During an earnings call with investors, CEO Adam Aron noted that the number of major titles released by major studios is still down 20% to 30% from pre-pandemic norms.
“At this point, there’s only one topic that should be at the forefront of all minds and everyone’s tongues. It’s not coronavirus, no streaming, not windows. It’s the coronavirus. this: cinema operators need more movies,” he said.
However, Aron remains hopeful about the film in the fourth quarter, hoping films including “Black Adam,” “Black Panther: Wakanda Forever” and “Avatar: The Way of Water” will attract more audiences.
Adjusted revenue for the quarter ended September 30 was $1.01 billion. Analysts on average have total projected revenue of $961.1 million, according to Refinitiv.
Net loss was $226.9 million, compared with $224.2 million a year earlier.
Jamie Lumley, analyst at Third Bridge, said: “The question for AMC is how to prevent losses and manage its balance sheet while facing fewer big films and challenges. activity is taking place”.