Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% Upgrade now

AMC Entertainment Q2 Earnings: What You Need To Know About The 'APE' Preferred Dividend

Stock Markets Aug 04, 2022 22:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters AMC Entertainment Q2 Earnings: What You Need To Know About The 'APE' Preferred Dividend
 
AMC
-1.83%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UZE
-2.32%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Movie theater market leader AMC Entertainment Holdings (NYSE: AMC) reported second-quarter financial results after market close Thursday. Here are the highlights.

What Happened: AMC reported second-quarter revenue of $1.17 billon, an increase from last year’s $444.7 million in the same time period. The revenue total beat a Street consensus estimate of $1.16 billion, according to data from Benzinga Pro.

The company reported an adjusted loss of 20 cents per share in the second quarter, missing a Street estimate of a loss of 19 cents per share for the quarter.

“AMC just completed a spectacularly encouraging second quarter that boosts our mood and brightens our prospects as we look ahead,” AMC CEO Adam Aron said.

Along with the quarterly results, AMC announced the declaration of a special dividend. The company will pay out one AMC Preferred Equity unit for each share of AMC Class A common stock based on a record date of Aug. 15, 2022. The dividend is expected to be paid out Aug. 19.

The AMC Preferred Equity Units will trade on the NYSE under the ticker "APE."

“The AMC Preferred Equity Units will provide AMC with a currency that can be used in the future to strengthen our balance sheet, including debt repayments, and provide capital for shareholder value-enhancing and transformative investment opportunities,” the company said.

Updates On Movie Business, Hycroft Investment: Aron said the quarterly results show once again that consumers “will flock to see them (movies) at movie theaters in huge and eye-popping numbers.”

Attendance in the second quarter was 59.1 million for AMC theaters, up 168% year-over-year. U.S. attendance for the quarter was 43.5 million compared to 17.8 million last year and 15.6 million in international theaters compared to 4.3 million last year.

“We would like to extend a special thank you to Doctor Stephen Strange, Tom ‘Maverick’ Cruise, Elvis Presley, and all those hungry people-eating Jurassic dinosaurs who graced our big screens in the quarter.”

Food and beverage spending was $7.52 per person in the United States compared to $5.58 in the second quarter of 2019 (pre-pandemic). Internationally, food and beverage per person was up 21.5% from the 2019 levels.

Aron said the company wrote down its large gains booked in the first quarter on an investment in mining company Hycroft Mining Holding Corporation (NASDAQ: HYMC).

“We continue to believe strongly in the potential value of our $28 million Hycroft Mining investment.”

AMC ended the second quarter with $965.2 million in cash and liquidity of $1.17 billion.

Related Link: Is The Pounce Happening Today? Here's What To Expect For AMC's Earnings

What’s Next For AMC: The company said July 2022 saw the highest number of guests at AMC’s U.S. theaters since December 2019.

Preliminary food and beverage revenue for the U.S. segment in July “appear to be the biggest single-month figure at our U.S. theaters in our company’s entire 102-year history.”

“Looking ahead, we could not be more bullish about the probability of significantly improving operating results for AMC, beginning with Q4 of 2022 and continuing into 2023,” Aron said.

Aron points to a slow down of big movie releases in the third-quarter months of August and September. The fourth quarter lineup was highlighted by the CEO citing many upcoming blockbusters with major stars attached.

“Don’t forget the ever so much anticipated sequels to Black Panther, Shazam and Avatar. So too should the movie slate for 2023 make us smile.”

Aron said the 2023 domestic box office could be billions of dollars larger than 2022.

“We look forward to Q4 of 2022 and calendar year 2023 with glee.”

AMC Price Action: AMC shares are down 6% to $17.67 in after-hours trading Thursday.

Photo via Shutterstock.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read at Benzinga

Read the original article on Benzinga

AMC Entertainment Q2 Earnings: What You Need To Know About The 'APE' Preferred Dividend
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email