March 21, 2020
AMC Theatres is the largest movie exhibitor in the world with 1,000 theatres and 11,000 screens in 15 countries. They are all dark while fixed costs continue to pile up as the spread of the coronavirus wreaks economic and medical havoc in Europe, Asia and the United States.
Speaking to CNN, Adam Aron, CEO of AMC, said the chain literally does not have “a penny of revenue” coming in.
“Three weeks ago, AMC was an immensely healthly company,” Aron said. “And now with expenses out the door and no revenue, we are burning through cash and the liquidity we need, only the [federal] government is going to provide that.”
In 2019, AMC Entertainment generated $5.5 billion in revenue with $770 million in pre-tax earnings. This week alone, Aron said the chain would spend $30 million to $40 million dollars just to stay in business. An amount, he said, that would continue weekly as the quarantine period continues.
“Our revenues this week are zero,” Aron said.
Aron said banks currently are overwhelmed with liquidity requests as businesses, large and small, seek funding to offset revenue sources wiped out as consumers are ordered to stay home to help negate the spread of the coronavirus that has sickened more than 300,000 people globally and killed more 13,000.
“We don’t need a bailout, we just need loans, which we will be able to pay back with interest when we re-open and revenues start coming back in the door,” Aron said.
The National Association of Theatre Operators has urged Congress to pass a reported $2 trillion relief bill for U.S. industries and citizens adversely impacted by the pandemic.