AMC Q2 2022 Investment Note
AMC Q2 revenue rose significantly whereas still lost $121 Million
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Key Takeaways:
Attitude: AMC's second quarter was largely ahead of last year's same period and exceeded market expectations for revenues and adjusted EBITDA. Hollywood's confidence in theatrical exhibitions seems to recover.. 59 million moviegoers came to AMC Theaters across the world in Q2, up 168% YoY. Attendance in July 2022 saw the highest number of guest visit in AMC US. At the current AMC share price, the CEO of AMC now owns approximately $15 million of AMC stocks. If counting in granted but unvested shares, the CEO has more than a $50 million economic stake in AMC.
Guidance: AMC plans to issue an AMC preferred equity in August later. Non-dilutive stock dividend as it will only be going to the shareholders on the dividend date.For Q3, a shortage of big movie titles might occur in August and September, which means the revenue might be slow for several weeks. For 2023, the internal forecast from AMC is that the 2023 domestic box office, the basic metric suggesting the health of theatrical exhibition, both in the U.S. and globally, is likely to be billions of dollars larger than that of 2022. AMC looks forward to Q4 2022 and the calendar year 2023 with quite a glee.
Business: The H2 2022 could be equally exciting, with a great mix of movies. There are Warner Brothers, DC Comics-based Black Adam, and three Disney films, including the animated Strange World, James Cameron's Avatar 2: The Way of Water, and Marvel's Black Panther2: Wakanda Forever. Recipe developments for microwaveable and ready-to-eat food are well underway and AMC looks forward to being able to sell the popcorn products in convenience stores next year. AMC is also in active dialogues with the credit card issuers and hopes to introduce a cobranded AMC Credit Card in early 2023.
Q: For the current state of AMC, what do you view as the optimal leverage for a company like yours right now and giving your outlook into next year?
Adam Aron: We did a sophisticated bond exchange in summer 2020. If our debt holders would like to give back our debt at a discount in exchange for AMC stock, that is a great trade for our shareholders.
Similarly, about the deferred rent obligations that we took on with landlords, we've already been in contact with several landlords, who said that they wouldn't mind getting paid early at a discount if we could swing it, but we've been very mindful of holding on to our cash load, because we want to make sure that we were always fundamentally in a strong position with liquidity. But we now have a preferred stock currency that we might be able to use to reduce some of those landlord obligations at a discount. We're in the first hour of having this new currency at our disposal.
So I'm not sure when we can give an exact number of how much debt we can bring down over the next six months or more. But we are pretty creative advantage as a team. We've taken on challenges since 2020 and strengthened our balance sheet, and getting a better debt-to-EBITDA leverage ratio is in our value.
Q: About AMC's growth initiatives, could you please share more about the areas and timelines?
Adam Aron: Actually, we are making progress on each of our fronts. I will give some rough timing in comments and I think whether it's our popcorn business, our credit card business or our merchandise business, you are going to see increasing activities beginning in the second half of this year and the first half of next year on all fronts.
Q: The buzzword in the corporate world these days is ESG. Could you please give us an update on AMC green initiatives?
Adam Aron: We made an important announcement for the laser projection, which represents putting in $0.25 billion of new projectors into our theaters, and the benefits are numerous. One is to make for a much better movie going. It increases the light levels on the screen by 50% to 100%, which means we can make the pictures brighter and clearer. Also, environmentalists would like it too because laser projectors consume far less electricity and we will have thousands of them, which operate seven days a week. They take a lot less energy. We will consume less energy with the laser projections, which is an expensive step for AMC currently, but it will be a good one environmentally and also for movie growers.
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Disclaimer
This article is a script from the AMC Q2 2022 Earnings call. In order to facilitate reading, we have made appropriate cuts and revisions. Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC). In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore (MAS).Moomoo Financial Singapore Pte. Ltd. is a Capital Markets Services License (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore. In Australia, financial products and services available through the moomoo app are provided by Futu Securities (Australia) Ltd, an Australian Financial Services Licensee (AFSL No. 224663) regulated by the Australian Securities and Investment Commission (ASIC). Please read and understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other disclosure documents which are available on our websites https://www.moomoo.com/au. Moomoo Technologies Inc., Moomoo Financial Inc., Moomoo Financial Singapore Pte. Ltd. and Futu Securities (Australia) Ltd are affiliated companies.
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Milk The Cow : Sell at high.
?) So, ppls are actually buying in AMC share for the ape coins for the voting right...
.
.
I think why $AMC Entertainment (AMC.US)$ rise is due to the ape coins or share, whatever u call it...
And ty to AMC's fan I somehow know what's going on.
My guess is that because those ape coins (mentioned by some fan that it has voting rights
Big institutional too as they want to has a position (more) on the voting right if they want a saying (control) in AMC
Also, "they"claimed so these ape coins won't dilute the share/eps so... yar, ppls just want the voting rights.
(Actually it's kinda a clever play out.)
That's my guessing.
Aside from that, I don't see any reason for the rise
I maybe wrong since I never follow its news much. I only somehow notice the price movement.
Questionable Invts : Someone shorted stock that was flag for targeting by big guys & gal's
anchovy3 : Not much of a meme stock investor. While the short term gains can be significant, so are the risks. It’s difficult for me to see how AMC can grow in the current media landscape, with even television having trouble competing with streaming services.
It’s interesting to see how they are diversifying into microwaveable food and credit products. Going to have to sell a lot of popcorn to make up the owed back rent. Sitting this one out, but hope you all make a ton of money on the ride
Zentz4all : amc isnt goin anywhere, we stopped the criminals already, nowhere to go but up.... idk why anyone would believe any bs sayin otherwise
sarcasticlychalanged : there will always be couch potatoes, and people waiting to binge watch the next regurgitated do again that Hollywood or the next best thing puts out. as long as there's content there numbers will gradually increase. however it's not my idea of a long-term investment.
有風度的希普利 : The entertainment industry chain will never be eliminated! Covin-19 is affected.
MooooneyM4ker : AMC is not only proving to the manipulators that an American company stands together, but also doing it during a time they’ve done everything in their power to try to divide in every way. Go ahead and try some more, no pressure, it’s just the whole world watching.
ZacK克ming2004 : imagine a company beating every quarters' earnings since post COVID-19 times.. these losses doesn't mean a thing when we are certain be in fundamentally n financially AMC is bound for HIGHER FURTHER PRICE TARGETS THAN NOW
Watanabe San : love the stock, the company, the movement and the people. grateful to be part of it
QueenBee14 : Loving the climb on AMC! Keep pushing up. Holding on to this one for the long term!!!
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