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AMC Entertainment Sees Q3 Sales Plunge, Had $419M In Cash As Of Sept. 30; Plans To Sell More Stock To Raise Cash
The Industry Oct 29, 2020
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AMC AMC Entertainment expects revenues for the three months ended September 30 of $119 million, versus nearly $1.32 billion for the prior year’s quarter, and the struggling theater chain anticipates material write-downs of assets, according to an SEC filing Tuesday morning with preliminary financial results. Cash and cash equivalents stood at $417.9 million. Interest expense for the three months will be approximately $94 million, compared to $85 million for the year ago.
Debt is a hefty $5.5 billion. The high debt racked up by acquisitions before COVID has become a major problem as the virus drags on and the company has to divert a significant portion of its cash flow to interest payments. AMC also said it will sell up to 15 million shares to raise fresh cash. It recently raised close to $55 million selling the same number of shares. The stock, which had rallied over the past few days, was down over 9% on the news. Excluding impairments, AMC said operating costs and expenses for the three months ended September 30 will be in a range of approximately $584 million-$604 million — compared with $1.296 billion the year before. Media companies are starting to announce quarterly earnings […]
