AMC Entertainment, parent of nation’s largest movie exhibitor AMC Theatres, June 3 disclosed it expects upwards of a $2.4 billion loss in the first quarter, ended March 31. That compares with a loss of $130 million during the previous-year period.
It projects revenue of $941.5 million, which is down 22% from revenue of $1.2 billion during the previous-year period. The company reports Q1 results June 9.
More importantly, AMC said that with most of its screens still shuttered due to the pandemic, “We are generating effectively no revenue,” which the chain said could raise “substantial doubt” about remaining in business.
“Even if government operating restrictions are lifted in certain jurisdictions, distributors may delay the release of new films until such time that operating restrictions are eased more broadly domestically and internationally,” AMC said in a statement.
The preliminary results are unaudited, subject to completion of the company’s quarterly financial reporting process, based on information known by management as of the date of this press release and do not represent a comprehensive statement of AMC’s financial results for the three months ended March 31, 2020.
The exhibitor with 11,000 screens globally has been idled since mid March since the coronavirus pandemic spread. AMC said it expects first-quarter 2020 adjusted free cash flow to be ($220.0) million and free cash flow to be ($275.7) million, compared with ($49.8) million and ($113.4) million last year, respectively.