AMC Entertainment on Tuesday opened its books, giving investors a taste of the negative impact the ongoing novel coronavirus pandemic has had on the cinema chain.
AMC reported a net loss of $2.2 billion for the first quarter, which ended March 31. The loss equates to roughly a loss of $20.88 per share, compared with the $1.25 per-share loss the company reported during the same quarter a year ago, when losses totaled $130 million.
Analysts tracking the stock via Yahoo! Finance initially expected AMC to report a per-share loss of $1.52. The company’s adjusted net loss per share was $2.22.
“These are truly unprecedented times. I join with all our employees around the world to offer our sympathies to those affected by the coronavirus, as well as our sincerest gratitude to those on the front lines,” AMC CEO Adam Aron said in a statement. “After starting the year with two solid months of revenue growth compared to last year, in mid-March we were forced to pivot the entire company to respond to the effects of the pandemic.”
The company’s revenue for the quarter was $941.5 million, compared with $1.2 billion a year ago. Analysts had forecast AMC would report revenue of $951.4 million.
AMC, along with all other theater chains in the U.S., was forced to shut down all its theaters in mid-March as a result of the pandemic. With virtually all of its theaters closed worldwide during the pandemic, AMC has been sucking on fumes, without generating revenue.
The theater chain has been hit hard by the pandemic, as industry experts question its financial viability after the shutdown.
Aron said in a statement that he is “confident we are taking the necessary steps on a broad array of fronts to ensure AMC’s future success as we navigate these turbulent and uncertain times.”
AMC has already reopened 10 of its theaters in Norway, Germany, Spain and Portugal, and currently expect to be fully open globally in July.
In the first quarter admissions revenue was down to $568 million, from $731.5 million a year ago, while food and beverage revenue fell to $288.1 million, from $368.8 million.
During the three month period, AMC drew down approximately $325 million under existing revolving credit facilities, and in April issued $500 million of 10.5% first lien notes due 2025.
The chain said in its release on Tuesday that managing its liquidity is the company’s top priority. AMC’s free cash flow in the quarter was negative $275.7 million.