Film and theater market leader AMC Entertainment Holdings CMA Financial results for the second quarter were reported after the market closed on Thursday. Here are the highlights.
what happened: AMC reported second-quarter revenue of $1.17 billion, up from last year’s $444.7 million in the same time period. Total revenue exceeded the street consensus estimate of $1.16 billion, according to data from Benzinga Pro.
The company reported an adjusted loss of 20 cents per share in the second quarter, missing the street estimate of a loss of 19 cents per share for the quarter.
“AMC just completed an amazingly encouraging second quarter that boosts our mood and opens up our horizons as we look forward,” AMC CEO Adam Aaron He said.
Alongside the quarterly results, AMC announced the announcement of a special dividend. The company will pay 1 AMC preferred equity unit for each share of AMC’s Class A common stock based on a benchmark date in August. 15, 2022. Dividends are expected to be paid in August. 19.
AMC’s preferred stock units will be traded on the New York Stock Exchange under the symbol “APE”.
“AMC’s preferred stock units will be equipped with a currency that can be used in the future to strengthen our balance sheet, including debt repayment, and provide capital to enhance shareholder value and transformative investment opportunities,” the company said.
Updates on Movie Business and Hycroft Investment: Aaron said the quarterly results once again show that consumers “will flock to see it (the films) in huge, eye-catching numbers.”
Attendance in the second quarter was 59.1 million for AMC showrooms, up 168% year over year. US attendance for the quarter was 43.5 million compared to 17.8 million last year and 15.6 million in international theaters compared to 4.3 million last year.
“We would like to extend a special thanks to Dr. Stephen Strange, Tom Maverick Cruz, Elvis Presley, and all the hungry Jurassic dinosaur-eating people who graced our large screens in the Quarter.”
Spending on food and beverages was $7.52 per capita in the US compared to $5.58 in the second quarter of 2019 (pre-pandemic). Internationally, the proportion of food and beverages per person is 21.5% higher than 2019 levels.
Aaron said the company reduced its large earnings booked in the first quarter on an investment in a mining company Haycroft Mining Holding Company HYMC.
“We remain strong believers in the potential value of our $28 million investment in Hycroft Mining.”
AMC closed the second quarter with $965.2 million in cash and $1.17 billion in cash.
Related link: Is the pounce happening today? Here’s what to expect for AMC earnings
What’s next for AMC: The company said July 2022 saw the largest number of guests at AMC US theaters since December 2019.
It appears that initial revenue from food and beverages for the US segment in July “was the largest single-month number in US theaters in the entire 102-year history of our company.”
“Looking forward, we couldn’t be more optimistic about the potential for significantly improved operating results for AMC, starting in the fourth quarter of 2022 through 2023,” Aron said.
Aaron points to a slowdown in big movie releases in the third quarter of August and September. The Q4 lineup was highlighted by the CEO citing several upcoming blockbuster films with top stars.
“Don’t forget the long-awaited sequels to Black Panther, Shazam, and Avatar. And so should the 2023 movie slate of films make us smile.”
Aaron said that the domestic box office of 2023 could be billions of dollars larger than 2022.
“We look forward to the fourth quarter of 2022 and calendar year 2023 with pleasure.”
AMC Price Action: AMC shares were down 6% to $17.67 in after-hours trading Thursday.
Image via Shutterstock.
#AMC #Entertainment #Earnings #APE #Earnings