The AMC Burbank 16 and the Batman bronze statue in Downtown Burbank.
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Shares of AMC Entertainment whipsawed in extended trading Monday after the company posted a smaller-than-expected loss for the third quarter.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
Loss per share: 44 cents vs. 53 cents expectedRevenue: $763.2 million vs. $708.3 million expected
AMC posted a net loss narrowed to $224.2 million, or 44 cents per share, for the third quarter. That loss is way down from the $905.8 million, or $8.41 per share, they lost in the year-earlier period. Analysts had expected the company to lose 53 cents per share, according to data from Refinitiv.
The movie theater chain reported revenue of $763.2 million, topping the $708.3 million analysts had expected.
The company’s stock initially popped after the results were released. As of 4:35 p.m. ET, however, shares were down 1.2%. AMC shares have been at the center of this year’s meme stock craze, skyrocketing more than 2,025% in 2021.
AMC said that all of its domestic cinemas were open as of Sept. 30, as were 99% of its international theaters. The movie theater chain noted that it welcomed back 40 million guests during the third quarter across locations in the U.S., Europe and Middle East thanks to new blockbuster titles and rising vaccination rates.
During the quarter, the company saw admission revenue rise to $425.1 million from $62.9 million in the year-ago period. Its food and beverage sales also surged to $265.2 million from just $29.1 million on a year-over-year basis.
Still, AMC’s operating costs outpaced its revenue, leading the company to post a loss for the quarter.
“Our financial results continue to improve,” CEO Adam Aron said in a statement Monday. “One can see and feel that our industry and our company are on a path of recovery and improvement. Therefore, our spirits are upbeat.”
“However, even amidst such good news, we are not yet where we want and need to be,” he said. “We wish to emphasize that no one should have any illusions that there is not more challenge ahead of us still to be met. The virus continues to be with us, we need to sell more tickets in future quarters than we did in the most recent quarter, and adjusted EBITDA is still well below pre-pandemic levels.”
At the end of the third quarter, AMC had more than $1.8 billion in liquidity, including cash and undrawn revolving credit lines. Aron said the company does not anticipate having to borrow under those lines of credit in the next 12 months.
This liquidity has allowed AMC to explore — and incorporate — new revenue streams. The company has already acquired new theater leases, begun to offer new content, like concerts and sporting events, and it is expanding into the popcorn retail business.
This is breaking news. Please check back for updates.
