AMC theaters losses narrow, rewarding retail investors with dividends

AMC Theaters It rewards retail investors who rallied to support the show giant when it was running under debt and the COVID shutdown, sending its stock price up at a critical juncture.

On Thursday, the company announced that it will award a special dividend to investors of one AMC preferred equity unit for each AMC Class A common stock. With a wink and nod, the company plans to list these units on the New York Stock Exchange under the symbol “APE,” the preferred moniker for shareholders who have adopted the AMC cause. When she was teetering on the brink of bankruptcy.

The announcement came as AMC trimmed its quarterly loss Thursday as summer films such as Top Gun: Maverick and Jurassic World Dominion raised their earnings. Net loss for the three months ended June 30 improved to $121.6 million, or 24 cents a share, compared to a net loss of $344 million, or 71 cents a share, in the second quarter of 2021. Total revenue rose to $1.2 billion. , up from $444.7 million in the previous quarter. But this revenue figure exceeded Wall Street expectations by $20 million, as well as the size of its losses.

Songs like “Elvis” and “Doctor Strange in the Multiverse of Madness” drew 59 million, a dramatic jump from the 22 million people who visited AMC in the same period last year.

“AMC has just completed an amazingly encouraging second quarter that boosts our mood and brightens our prospects as we look forward,” Adam AaronThe Chairman and CEO of AMC Entertainment said in a statement.

However, Wall Street does not seem enthusiastic. AMC shares fell more than 7% in after-hours trading.

Aaron said AMC’s $28 million stake in Hycroft Mining cut gains due to stock price volatility. But the president of AMC predicted unconventional investment In a silver and gold mining company that seems a far cry from the company’s core competency of selling movie tickets and popcorn, it will pay off.

“Indeed, Hycroft has just announced that it will begin its largest drilling rig program in nearly a decade, and we are very confident that our investment in Hycroft will turn gold over time,” said Aaron.

AMC boasts $965.2 million in cash on hand, but continues to carry a heavy debt burden of more than $5 billion. However, Aaron continues to say that AMC is in a growth mode and has come to enjoy its role as the darling of social media investors. On an earnings call, Aaron answered questions from common shareholders, along with those of analysts, and described the free NFT he was offering investors. He also spoke about AMC’s stakeholder specials, in which Aaron says he poses for selfies and has even been asked to sign a banana (another monkey reference) by an attendee. The result is a company that has embraced a new brand of corporate populism even as it touts possibilities in a form of media that has been around for more than a century. At the very least, it makes a great earnings presentation.

On the call, Aaron made the news by announcing that Nicole Kidman was the one Shine in AMC’s viral spot, was signed to be the public face of the theater chain for another year. Her initial announcement, in which Kidman talks excitedly about how AMC is a place of magic, has been imitated, memorialized, and inspired by a host of Change.org petitions.

The AMC chief acknowledged that the third quarter, filled with smaller films and award-winning hope, wouldn’t be strong. “August and September are going to be tough,” Aaron said. However, he predicted that fortunes would change with the November release of “Black Panther: Wakanda Forever” and the debut of “Avatar: Water Road” in December.

Aaron boldly stated, “The beast’s blow will be after the beast’s hit after the beast’s hit.”

VIP + Analysis: What movie gives Biz a ray of hope?