LEAWOOD, Kan. – AMC Entertainment (NYSE:AMC) Holdings, Inc. (NYSE: AMC) disclosed preliminary financial results for the first quarter of 2024, indicating a narrowed net loss and a slight decrease in revenue compared to the same period last year. The company anticipates total revenues of about $951.4 million for the quarter ended March 31, 2024, a marginal decrease from $954.4 million in 2023.
The cinema chain expects its net loss to be approximately $163.5 million, an improvement from a net loss of $235.5 million for the first quarter of 2023. The diluted loss per share is projected to be $0.62, compared to the previous year's $1.71, based on 263.4 million weighted average shares outstanding.
Adjusted EBITDA, a non-GAAP financial measure, is estimated to be negative $31.6 million, a decline from the $7.1 million reported in the first quarter of 2023. The previous year's Adjusted EBITDA included a one-time benefit of $16.7 million related to the early termination of a theater lease. AMC's cash and cash equivalents as of March 31, 2024, stood at $624.2 million.
In response to the results, AMC's Chairman and CEO Adam Aron stated, "As predicted, the box office in the first quarter was adversely impacted by the 2023 Hollywood writers and actors strikes." He added that despite these challenges, the company outperformed consensus estimates for revenue, Adjusted EBITDA, net income, and diluted EPS.
Aron expressed optimism about the upcoming film slate and anticipates a stronger box office as the year progresses. He also acknowledged that the second quarter might continue to be affected by the strikes.
Moreover, AMC launched an at-the-market equity program in March 2024, selling approximately 12.8 million shares of Class A common stock and raising gross proceeds of $41.8 million, before commissions and fees, after March 31, 2024.
The company plans to report its full results for the first quarter on Wednesday, May 8, 2024, after the market closes, followed by an earnings webcast where management will take questions from AMC Investor Connect members and equity research analysts.
This press release contains forward-looking statements and preliminary estimates that are not a comprehensive statement of financial results for the quarter ended March 31, 2024. AMC cautions that actual financial results may differ from these estimates, which could be material. The information is based on management's estimates as of the date of the press release and is subject to change.
InvestingPro Insights
AMC Entertainment's recent preliminary financial results reflect a challenging quarter, with a slight revenue decrease and a narrowed net loss. The company's resilience in the face of industry-wide strikes is noteworthy, and its strategy to raise capital through an equity program shows a proactive approach to financial management. A deeper dive into AMC's financial health and market performance can be gleaned from InvestingPro's real-time data and analytics.
InvestingPro Data highlights that AMC's market capitalization stands at $948.01 million, indicating the company's current valuation in the market. Despite the challenges, the company has seen a revenue growth of 23.04% in the last twelve months as of Q4 2023, showcasing its ability to increase sales over time.
Yet, the company's P/E Ratio (Adjusted) for the same period is -2.99, reflecting investor skepticism about future earnings. This is further underscored by the fact that AMC's gross profit margin was 15.04%, which, while positive, indicates room for improvement in profitability.
AMC's operational strategies are a focus for investors, especially considering the InvestingPro Tips that highlight significant concerns. The company operates with a significant debt burden and is quickly burning through cash, which are areas that require careful management. Moreover, analysts are not optimistic about AMC's profitability for the year, which aligns with the company's own admission of the challenges posed by the Hollywood strikes.
For those seeking more in-depth analysis, there are additional InvestingPro Tips available, which can provide a clearer picture of AMC's financial standing and market outlook. Subscribers can access these tips and make more informed decisions by using the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 15 additional tips listed in InvestingPro for AMC, investors can gain a comprehensive understanding of the risks and opportunities associated with the stock.
AMC's next earnings date is scheduled for May 8, 2024, which will provide further insights into the company's performance and strategies moving forward. As the box office anticipates a stronger slate of films, investors and analysts will be keenly watching how AMC navigates the remainder of the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.