AMC CEO touts ‘transformational’ quarter, crypto for banknotes

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Investing YouTuber Kenan Grace discusses AMC earnings and Senior Vice President of Wealth Improvement Nicole Webb discusses summer earnings on “Making Money”

AMC Entertainment chairman and CEO Adam Aron said the meme-turned movie chain’s stock had a “transformational” second quarter after raising $ 1.25 billion in new capital, raising its total liquidity at a record high of over $ 2 billion.

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As of June 30, AMC has fully reopened its 593 domestic theaters and approximately 335 of its international theaters. The company also broke attendance records in the pandemic era with more than 22 million guests returning to watch the latest blockbuster movies in the quarter.

The company reduced its net loss in the quarter to $ 344 million, or 71 cents per share, from a loss of $ 561.2 million, or $ 5.38 per share, a year ago. Total revenue for the quarter was $ 444.7 million, up from $ 18.9 million a year ago.

In addition, nearly 300,000 shareholders have joined AMC Investor Connect, a new program that relays company updates and offers special offers such as movie premieres and discounted concessions.

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Following the better-than-expected results, during the company’s second quarter earnings call, Aron presented a series of new measures that will allow AMC to “go on the offensive” in the future, including:

Up to 10 new leases, including eight old ArcLight Pacific locations. AMC has entered into a lease or signed a letter of intent for three theaters in Los Angeles, two in Chicago and one in Atlanta, and has started pre-negotiations for four other venues. the Middle East in 2021. Alternative theatrical programming, such as two film concerts starring Chance the Rapper and Halsey which will begin screening in August. AMC also hopes to start a “meaningful dialogue” with professional sports leagues and college sports conferences. Will accept Bitcoin for online movie ticket purchases and concessions at cinemas nationwide by the end of the year and will also allow Apple Pay and Google Pay online purchases. A formal new deal with Warner Brothers for an exclusive 45-day cinema window of their movie roster before home releases. 161.13 +9.36 + 6.17%

When asked if AMC could potentially partner with another memes and video game stock giant GameStop, Aron teased that he was “on the case” but declined to comment further.

Aron also said he would recommend a new policy to AMC’s board of directors requiring him to hold a number of shares owned and awarded equal to eight years of his salary, or a stake of $ 12 million. During this time, AMC’s CFO will hold a number of owned and awarded shares equivalent to six years of his salary and AMC’s executive vice presidents and senior vice presidents will hold shares owned and awarded equivalent to four and two years of their salaries, respectively.

“At the same time that I insist on the shareholding, I would like to remind you that I have not sold a share of AMC during the five complete years that I have managed this company even though it represents more than three-fifths of my annual compensation, ”said Aron.

Aron said he plans to diversify his portfolio by selling some of his AMC shares as part of a 10B51 plan.

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Looking ahead, the company expects positive cash flow in the fourth quarter of this year if its total domestic box office revenue reaches at least $ 5.2 billion.

AMC shares jumped about 4% in after-hours trading following earnings announcements.

Aron will appear on FOX Business ” Making Money with Charles Payne on Tuesday at 2 p.m. EDT.

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