AMC Theaters is bracing its investors for an incredibly poor performance for its upcoming first quarter release, with possible losses in the billions…
It’s no secret that movie theaters were already experiencing industry disruption prior to the COVID-19 pandemic outbreak. And, subsequent quarantines certainly further exacerbated the problem. Coming out of the lock-downs, the outlook isn’t bright, as consumers continue to favor streaming entertainment on-demand. Now, one of the biggest in the industry is warning investors about a bleak first quarter performance.
AMC Theaters Warns it has ‘Substantial Doubt’ about its Future Amidst Pandemic Fallout
AMC Theaters has released a preliminary report which does not just temper expectations, but warns of an uncertain, if not dire, future. The company expects to post losses for Q1 2020 of $2.1 up to $2.4 billion, even as it maintained a cash balance of $718.3 million as recently as a month ago, in April.
Over the past two to nearly three months, the chain has effectively generated little to no revenue. The company says if it can’t resume normal operations by July, it has real concern about its ability to exist, even in the near future. AMC Entertainment Holdings writes in its Q1 2020 preliminary results report:
“Net Loss for the first quarter of 2020 to be between $2,117.3 million and $2,417.3 million, based on an impairment charge related to estimated long lived assets, indefinite-lived intangible assets and goodwill of $1,800.0 million to $2,100.0 million, compared to a net loss of $130.2 million for the three months ended March 31, 2019. Adjusted Net Loss for the first quarter of 2020 to be $224.5 million compared to $101.8 million in the same period a year ago.”