AMC CEO Adam Aron now shares optimistic company news following the recent fed rate cuts, stating its positive effects for business.
“Wednesday’s interest rate cut by the Federal Reserve of 50 basis points should save AMC about $10 million of interest expense per annum, giving us an extra $10 million or so of cash savings each year,” Aron said on X, formerly known as Twitter.
“This is such very good and much welcomed news for AMC. Ka-ching, ka-ching!”
“No one has a perfect crystal ball that can accurately predict the Fed’s future rate actions, but wouldn’t it be helpful for AMC if the Fed would continue to reduce interest rates by another 25, 50, 75, 100, 125, 150 (or more???) basis points in the near term future.
Each such 25 basis point Fed rate reduction could save AMC another approximately $5 million of cash interest expense per year as well.
Here’s hoping there will be many more rate reductions ahead.”
The company recently announced that Marcus Glover has been elected to its Board of Directors.
Glover served in significant positions such as President and Chief Operating Officer at the Borgata Hotel, Casino & Spa, as well as at the Beau Rivage Resort & Casino, and has worked in various senior roles at Caesars Entertainment.
“The addition of Marcus Glover to AMC’s Board of Directors is a great benefit to all those who work for and root for AMC’s success,” said CEO Adam Aron.
“Marcus brings a wealth of experience and leadership to the AMC board, particularly in the varied areas of guest service, employee satisfaction and finance.
I look forward to working with him and all of our board members as we continue to deliver results for our guests, our shareholders, and our partners.”
Movie theatres are now investing a whopping $2.2 billion in upgrades over a span of three years to drive moviegoers out of their homes.
Movie theaters such as AMC Entertainment, Regal, and Cinemark are aiming to provide a more ‘premium’ movie experience, per the National Association of Theatre Owners.
The upgrades will focus on enhancing the viewing experience with laser projection technology, immersive sound systems, improved food and beverage options, and even adding amenities like arcades and bowling.
Additionally, theaters will see improvements in air conditioning, lighting, signage, and carpeting.
In August, CEO Adam Aron said AMC Entertainment Holdings Inc. had the best Q2 June in its 104-year-old history.
The company was also able to secure more than $770 million in cash equivalents by the end of the second quarter.
The “box office is making a come back”, said Adam Aron during the Q2 earnings call.
Now that rates have been cut, the CEO remains even more optimistic of the company’s future.
AMC Entertainment (NYSE:AMC) stock is currently down more than 23% this year-to-date at the time of this publication.
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