AMC Entertainment (AMC) – Get AMC Entertainment Holdings, Inc. Class A Report shares surged higher Tuesday after the world’s largest cinema chain posted preliminary fourth quarter earnings that could confirm its aim to return to profit over the final months of the year.
AMC said revenues for the three months ending in December would likely come in north of $1.17 billion, a huge increase from the $162.5 million collected during last year’s pandemic-hit trough for the movie theatre business, thanks in part to the huge success of “SpiderMan: No Way Home”.Â
The group will still likely post a net loss of between $195 million and $115 million, the company said, but that’s down sharply from $950 million in red ink it spill over the holiday period last year. On an adjusted basis, AMC said it expects to earn between $146.8 million and $151.8 million for the three months ending in December.
AMC said it was posting the preliminary results in advance of “potential investor meetings” that fall before its planned earnings release date of March 2.Â
âAMCâs 2021 results improved significantly as the year progressed, and we finished the year with the strongest quarter in two years,” said CEO Adam Aron. “The fourth quarter of 2021 marks a meaningful milestone with positive EBITDA of more than $145 million, positive Operating Cash Generated of more than $215 million, and a record year-ending liquidity position of $1.8 billion.â Â
AMC shares were marked 13.5% higher in pre-market trading Tuesday to indicate an opening bell price of $18.22 each.Â
Aron suggested last fall that AMC could link up with another meme-stock favorite, GameStop (GME) – Get GameStop Corp. Class A Report, as he laid out a host of initiatives, including the an exclusive agreement to show Warner Brothers films, am and plans to accept payment in bitcoin.
Aron had also suggested the group could return to the black in the fourth quarter, thanks in part to the same themes that drove the second quarter recovery: increased film attendance, rising average ticket prices, soaring food and beverage sales and an improving company balance sheet.
