December 3, 2020
AMC Entertainment, parent to the world’s largest movie theater chain, AMC Theatres, Dec. 3 announced plans to sell 200 million shares of Class A common stock. While shares were trading at $4.10 in early morning trading, AMC offered the stock at $4.22 per share, which would make the offering worth $844 million — 33% higher than the company’s current market cap of $561 million. Through Oct. 30, AMC had 85.6 million Class A shares and 51.8 million Class B shares outstanding.
With the ongoing coronavirus pandemic causing havoc on operations and its fiscal solvency, AMC has aggressively sought to refinance its debt, market screens to private watch parties, sell transactional VOD movies on its website and partner with Universal Pictures last summer for the groundbreaking 17-day theatrical window on select movie releases.
That said, AMC reported a $905.8 million loss in its most-recent fiscal period, compared with a loss of $54.8 million during the previous-year period. Revenue plummeted 91% to $119.5 million, from $1.31 billion in 2019.
Kingdom Capital, in a note last month, said AMC has done its best to raise capital in the midst of an unprecedented swoon in the moviegoing industry. That said, the investor reiterated the bottom line: AMC Theatres saw 5.2 million moviegoers through Oct. 9, representing a same-theater attendance decline of about 74% compared to the same period a year ago.
“AMC is a [fiscal] zero,” Kingdom wrote. “It wasn’t profitable before COVID and it won’t be again anytime soon until the debt is addressed. And that will be done through Chapter 11.”