AMC Entertainment (AMC) earnings Q3 2022

AMC Entertainment on Tuesday reported third-quarter revenue that was up nearly 27% from a year ago, despite a thin blockbuster movie slate.

The world’s largest movie theater chain is contending with a massive debt load, dilution of its stock and a film release schedule short on blockbusters. While the summer box office was strong, August and September were more tepid, as studios released fewer films on the big screen.

For the period ended Sept. 30, the company’s net loss increased slightly to $226. 9 million compared to the same period last year. Still, AMC said its overall per-patron metrics were up when it came to admissions revenue and increased consumer spending on food and beverages at its theaters.

Here’s what the company reported, versus what Wall Street expected, according to a Refinitiv survey of analysts:

• Loss per share:  loss of 22 cents adjusted vs. a loss of 26 cents expected
• Revenue: $968 million vs. $961.1 million expected

The company came back from the brink of bankruptcy in 2021 thanks to millions of retail investors who turned its shares into a meme stock. Since then, AMC has devised several plans to raise more capital to pay down its debts and invest in acquisitions, theater upgrades, a popcorn business and even a gold mine.

While AMC has a significant war chest of cash, it continues to spend more than it makes each quarter on operations including concession costs, film exhibition costs and rent.

Audiences have returned to cinemas in the wake of the coronavirus pandemic and are spending more than ever on tickets and popcorn. However, the lack of steady theatrical releases will weigh heavily on the industry during the final months of the year.

Theaters are expected to see a stronger slate of film releases in 2023, and AMC should be able to ride out the lack of releases until then because of its significant cash stockpile.

Shares of AMC have declined nearly 80% since January and hit a 52-week low on Monday, slipping to $5.17 a piece, ahead of the company’s earnings report Tuesday.

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