AMC Leisure (AMC) Q3 2021 earnings

The AMC Burbank 16 and the Batman bronze statue in Downtown Burbank.

AaronP / Bauer-Griffin | GC images | Getty Images

Shares in AMC entertainment lashed Monday’s extended trading after the company posted a smaller-than-expected loss in the third quarter.

Here’s what the company said, relative to Wall Street expectations, based on an analyst survey by Refinitiv:

  • Loss per share: 44 cents vs. 53 cents expected
  • Revenue: Expected $ 763.2 million versus $ 708.3 million

AMC posted a net loss of $ 224.2 million, or 44 cents per share, for the third quarter. That loss is well below the $ 905.8 million, or $ 8.41 per share, that they lost in the year-ago period. According to Refinitiv, analysts had expected a loss of 53 cents per share.

The cinema chain reported revenue of $ 763.2 million, surpassing the $ 708.3 million analyst had expected.

The company’s shares initially rose after the results were released. However, as of 5:20 p.m. ET, shares were down 4.3%. AMC stock was the focus of this year’s meme stock frenzy, rising more than 2.025% in 2021.

AMC said all of its domestic cinemas were open on September 30th, as was 99% of its international theaters. The cinema chain found that it welcomed 40 million guests again in the US, Europe and the Middle East in the third quarter thanks to new blockbuster titles and rising vaccination rates.

During the quarter, the company posted entry revenue to $ 425.1 million from $ 62.9 million in the year-ago period. Food and beverage sales also rose to $ 265.2 million from just $ 29.1 million year over year.

Still, AMC’s operating expenses exceeded revenue, causing the company to post a loss for the quarter.

“Our financial results continue to improve,” said CEO Adam Aron in a statement on Monday. “You can see and feel that our industry and our company are on the way to recovery and improvement. That is why we are optimistic.”

“However, despite this good news, we are still not where we want and need to be,” he said. “We would like to emphasize that nobody should be under the illusion that there are not more challenges ahead of us. The virus continues to accompany us, we have to sell more tickets in the coming quarters than in the previous quarters. “Quarter, and the adjusted EBITDA is still well below the level before the pandemic.”

At the end of the third quarter, AMC had more than $ 1.8 billion in liquidity, including cash and undrawn revolving credit lines. Aron said the company doesn’t expect to have to borrow under these lines of credit in the next 12 months.

This liquidity has allowed AMC to explore and integrate new revenue streams. The company has already acquired new theater rentals, started offering new content such as concerts and sporting events, and it expands into popcorn retail.

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