AMC Entertainment chairman and CEO Adam Aron said the movie-theater-chain-turned-meme-stock had a "transformational" second quarter after raising $1.25 billion in fresh capital, boosting its total liquidity to a record high of more than $2 billion.
As of June 30, AMC has fully reopened its 593 domestic theatre locations and approximately 335 of its international theatre locations. The company has also broken pandemic-era attendance records with more than 22 million guests returning to watch the latest blockbuster films during the quarter.
The company narrowed its net loss during the quarter to $344 million, or 71 cents per share, compared to a loss of $561.2 million, or $5.38 per share, a year ago. Total revenue for the quarter was 444.7 million, up from $18.9 million a year ago.
In addition, nearly 300,000 shareholders have joined AMC Investor Connect, a new program that relays company updates and gives special offers such as advance screenings on movies and discounted concessions.
Following the better-than-expected results, Aron outlined a series of new measures during the company's second quarter earnings call that will allow AMC to "play offense" going forward, including:
- Up to 10 new leases, including eight former ArcLight Pacific locations. AMC has entered into a lease or signed a letter of intent for three theater locations in Los Angeles, two in Chicago, and one in Atlanta and has entered advance negotiations for four more locations.
- Opening a dozen new theaters in the U.S., Europe and the Middle East in 2021.
- Introducing alternative programming in theaters, such as two concert movies featuring Chance the Rapper and Halsey that will begin showings in August. AMC also hopes to enter a "meaningful dialogue" with professional sports leagues and collegiate sports conferences.
- Accepting Bitcoin for online purchases of movie tickets and concessions at theater locations nationwide by the end of the year. AMC will also use Apple Pay and Google Pay for online purchases.
- A new formal agreement with Warner Brothers for an exclusive 45-day theatrical window of their 2022 film slate prior to at-home releases.
When asked about whether AMC could potentially partner with fellow meme stock and video game giant GameStop, Aron teased that he was "on the case" but declined to comment further.
Aron also said he will recommend a new policy to AMC's board of directors requiring him to hold a number of owned and granted shares equal to eight years of his salary, or a $12 million stake. Meanwhile, AMC's chief financial officer would hold a number of owned and granted shares equal to six years of their salary and AMC's executive vice presidents and senior vice presidents would hold owned and granted shares equal to four and two years of their salaries, respectively.
"At the same time as I’m emphasizing share ownership, I’d like to remind you that I have not sold one share of AMC stock in the five full years I’ve been running this company even though it represents more than three-fifths of my annual compensation," Aron said.
In addition, Aron said he plans to diversify his portfolio by selling some of his AMC stock under a 10B51 plan.
Looking ahead, the company is estimating positive cash flow in the fourth quarter of this year if its overall domestic box office revenues reach at least $5.2 billion.
AMC shares have surged about 4% in after-hours trading following the earnings announcements.
Aron will appear on FOX Business' 'Making Money with Charles Payne on Tuesday at 2 pm EDT.