AMC CEO Adam Aron spoke on the Winston Churchill channel on Monday, comparing the exhibition industry’s final stance against COVID-19 (and Chapter 11) with the UK’s war for survival during World War Monday.
Wall Street analysts in a conference meeting were too polite to say straight from bankruptcy, so did Aron. He reiterated that the chain is fighting all day finding the cash it needs to continue growing after 2021.
“In our industry, the severity of the situation puts all of us in a close position of war and determination,” Aron said, recalling the Prime Minister’s “famous and defining speech”. England on June 4, 1940, unofficially called, “We’re going to fight the beaches. “
Aron generously quoted in his speech several times: “We will fight on the seas and oceans, we will fight with increasing confidence and increasing power in the air, we will defend our Island, No matter what we can, we̵7;ll fight on the beach, we’ll fight on a landing zone, we’ll fight in the field. “
AMC Entertainment Shocking Pandemic Q3 revenue increased to $ 119 million from $ 1.3 billion; The net loss increased to $ 905 million from $ 54 million
The numbers were clear and clear, he said. As of September 30, AMC has $ 418 million in cash and says its quarterly cash is around $ 108 million a month. That’s just below its third quarter of global sales of $ 119 million – compared with $ 1.3 billion the year before. The loss increased from $ 50 million to $ 900 million. The numbers are fundamentally irrelevant, the company said – what’s important for the next three months.
“So everyone, it all really comes down to one thing. We believe we will need to raise more capital to extend the runway next summer. The simple question becomes, can we raise the necessary capital? “Aron said. The hope and belief is that the vaccine will be widely distributed next summer.
When it was safe and theaters everywhere were open, he noted that 44 movies he counted were pushed out of 2020 had been set up and ready to hit theaters by 2021. He gave knowing the current lack of high studio fares is the main reason movie theaters have trouble getting back to reality even when they’re open.
The company has been very good at finding cash. It raised $ 90 million in stock sales this fall and just applied this morning to sell another 20 million shares, raising $ 40 million. Aron said AMC is talking to “more than a dozen strategic investors” about equity investments in AMC. He did not give any details. He said he was in discussions with lenders – or bondholders – “to gauge their interest in enhancing our liquidity.” The lenders helped a lot over the summer, raising hundreds of millions of dollars and reducing or deferring interest payments. AMC has already sold theaters in its Baltic and may be planning to sell more overseas theaters although Aron declined to comment on that.
The chain is also in talks with homeowners to cut back on additional payments like what the AMC was asking for and received in March when theaters close.
“It is too early to know if these efforts will pay off or when how much, but our day and night are busy jobs at AMC.”
AMC shares closed on Monday down 9 percent, but rose 2.3 percent by the end of the session.