Movie theater chain AMC Entertainment announced Wednesday that it will push the release of its 2020 first quarter financial results until June 24. The company was initially scheduled to report earning on May 11.
“COVID-19 has created substantial disruption in the Company’s operations including the suspension of all theatre operations worldwide resulting in the cessation of essentially all revenues,” the company said in a filing with the Securities and Exchange Commission. “As a result, all corporate-level employees have been either fully or partially furloughed, significantly limiting the resources available to prepare the Delayed Filings. Furthermore, to the extent corporate-level employees continue to work, they are required to do so from their homes due to local governmental orders which has decreased efficiency in fulfilling the tasks necessary to complete the Delayed Filings.”
Wall Street wan no doubt looking forward to AMC opening its books to get a better glimpse at just how the company’s been impacted by the ongoing novel coronavirus pandemic.
In addition to delaying its first-quarter earnings report, AMC said it will also delay the filing of an amendment to its 2019 annual report. AMC also announced plans to hold its 2020 annual shareholders meeting on July 29. The meeting had previously been postponed in response to the pandemic due to concerns for the health and safety of the company’s stockholders, officers and employees and to comply with continuing governmental orders limiting the size of gatherings.
AMC has been hit hard by the pandemic, as industry experts question the chain’s financial viability amid the shutdown that has force it to shutter all its movie theaters.
The nation’s largest cinema chain tallied roughly $5 billion in debt at the end of 2019 and losses of $149 million — that was after recording a $110 million profit in 2018. And during the company’s most recent fourth quarter conference call, AMC CEO Adam Aron said that he and other top executives had agreed to cut their salaries and bonuses for three years. That was all before the pandemic shutdown choked its revenue stream altogether.
S&P Global has downgraded its credit rating for AMC from B to CCC-, taking the company from “highly speculative” to “default imminent, with little prospect for recovery.”
Earlier this month AMC Theatres raised $500 million in a private debt offering exempt from the registration requirements of the Securities Act of 1933.
As of the end of March, AMC said it had a cash balance of $299.8 million, including borrowings in March 2020 of $215.0 million (the full availability net of letters of credit) under its $225.0 million senior secured revolving credit facility due April 22, 2024.
Read original story AMC Entertainment to Delay Reporting 2020 First Quarter Earnings Until June At TheWrap