AMC Leisure plans to promote as much as 15M shares as 3Q gross sales fall
AMC Leisure, the nation’s largest movie show chain, stated Tuesday that it’s seeking to elevate additional cash because the coronavirus pandemic continues to hammer its enterprise.
The cinema chain, which plans to promote as much as 15 million shares, stated in an SEC submitting that it expects revenues for the three months ended Sept. 30 to plunge 91 p.c to $119 million from $1.32 billion, a 12 months earlier.
Shares of AMC fell over 9 p.c in early morning buying and selling on the information.
AMC, like rival cinema homes, temporarily shut down in mid-March amid the pandemic. The chain has reopened almost 87 p.c of its fleet of about 598 US-based theaters since Labor Day, however has been working at restricted capability of between 20 p.c and 40 p.c, the submitting stated.
Consequently, the struggling chain has scrambled to maintain the lights on, not too long ago elevating near $55 million by promoting roughly 15 million shares.
AMC at present has money and money equivalents of $417.9 million, in response to the submitting, which reiterated a recent warning that the corporate may run out of money by the tip of the 12 months or by early 2021.
“As beforehand disclosed, within the absence of serious will increase in attendance from present ranges or the provision of serious further sources of liquidity, on the current money burn fee, the corporate anticipates that current money sources could be largely depleted by the tip of 2020 or early 2021,” AMC stated.
“Thereafter, to satisfy its obligations as they grow to be due, the corporate would require further sources of liquidity and/or will increase in attendance ranges. The required quantities of further liquidity might be materials,” the assertion stated. “As a result of these components, as beforehand disclosed, substantial doubt exists concerning the firm’s skill to proceed as a going concern for an affordable time period.”
Final week, AMC stated it’s actively exploring potential sources of further liquidity akin to renegotiating leases, belongings gross sales and minority buyers.
Regardless of the dim monetary image, AMC remained optimistic over latest information that movie theaters in New York state can reopen this weekend, and hopes that the reopening of theaters in New York Metropolis is just not far behind.