AMC just had their Q1 earnings call for 2022.
The stock jumped to $13.25 after hours when the largest movie theatre chain in the world announced powerful earnings.
In this article I’m going to break down key moments of conference as well as the most important things you should know.
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Best 1st quarter in two years
AMC Entertainment announced it had the best 1st quarter in two years when it exceeded market expectations.
The movie theatre giant saw an impressive $630 million improvement in revenue in Q1 and $233 million in adjusted EBITDA from over a year ago.
CEO and President Adam Aron was excited to announce Doctor Strange in the Multiverse of Madness was a massive success this past weekend.
The title leads Q2 to an incredible start as it became the biggest opening of 2022 and the second largest opening post pandemic to Spider-Man No Way Home.
Doctor Strange in the Multiverse of Madness made $187.4 million in domestic opening and $450 million globally.
Adam Aron shared that their historic market share of 22% grew to 26% in Q2 and believes this is just the beginning for what’s to come this summer and the rest of 2022.
Related: AMC Theatres: The Most Anticipated Movies Coming in 2022
AMC seated 39 million guests in Q1 alone
CFO Sean Goodman announced that AMC seated 39 million guests in Q1 alone this year; it had seated 7 million guests in Q1 of 2021.
A whopping 32 million difference.
AMC Entertainment earned $785.7 million in revenue this first quarter, more than five times the revenue in Q1 of 2021 ($148.3m).
AMC finances are looking rather strong as guests continue to pay more for tickets and food and beverages.
The company also ended Q1 with $1.4 billion in liquidity.
This cash is allowing AMC Entertainment to go on the offense and reinvest money back into the company.
Earlier in Q1 we saw AMC acquire seven new Bow Tie Cinema movie theatres.
The movie theatre chain announced a quarter billion investment in new state-of-the-art laser projectors too.
The incredible thing is that AMC has been able to do this while significantly lowering their debt.
AMC repaid $45 million of deferred rent reducing their balance to approximately $272 million.
And they plan to reduce the deferred rent by another $125 million by the end of the year.
Quick updates
These are a few quick updates worth mentioning.
- Financial reports suggest AMC is on a road to financial recovery from the impact of Covid-19.
- AMC’s Perfectly Popcorn business is on schedule to enter the retail game later this year.
- The company is currently doing product testing, research, and looking at new concepts.
- AMC says the launch of an AMC credit card is going to be a lucrative business opportunity for the company.
- 8 different NFT programs have been launched or are in the works of being launched so far, further fueling movie ticket sales.
Adam Aron acknowledges shareholders’ concerns with the market
During AMC’s Q1 earnings call, Adam Aron acknowledged a variety of retail’s concerns.
Some of these concerns included market injustices, short selling, and even dark pool trading.
In the earnings call conference, the CEO stated the following:
“I greatly appreciate that you care so deeply. Also, running a company with such broad interests as AMC, is an artform, not a science.
There is real wisdom in knowing what to do, and what not to do. In Knowing when to do it, and knowing when not to do it.
Having said that, you should not interpret silence as ‘inaction’. We are constantly exploring the smartest courses of action and I promise you that we will pounce, but only when the timing is right.
My every incentive is to think and to act like a shareholder to maximize the long-term value of AMC because like you, that’s what I am. I am an AMC shareholder above all else.”
I’m curious to learn what you think about these words.
Leave your thoughts in the comment section below.
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In case you missed it: Are Institutions Preparing to Close Short Positions in AMC?
About The Author
I think you should think about the retail buyer, who are losing money and start sharing the wealth with a dividend to the share holder of the company. We bail the company out bankruptcy by buy stock in the company we believed in and now time to show us we mean something to the company.
If this bottom doesn’t trigger shorts to close, then a reversal surely will.
All seems well on the front. While this is an interesting statement seeing will be believing until then we see to be in a maze but as always positive thoughts are full speed ahead.
“I greatly appreciate that you care so deeply. Also, running a company with such broad interests as AMC, is an artform, not a science.
There is real wisdom in knowing what to do, and what not to do. In Knowing when to do it, and knowing when not to do it.
Having said that, you should not interpret silence as ‘inaction’. We are constantly exploring the smartest courses of action and I promise you that we will pounce, but only when the timing is right.
My every incentive is to think and to act like a shareholder to maximize the long-term value of AMC because like you, that’s what I am. I am an AMC shareholder above all else.”
Let’s start a discussion! Where do you see AMC headed?
Love it. Made a video on how AMC could trigger the sneeze and also make money to pay off the debt. It is worth looking into. It is getting interesting, and it does appear that the Sneeze is almost here. Hard to imagine the price getting much lower. If it gets low enough people will start buying like crazy. When that will be is anybody’s guess but seems like soon.
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