AMC Entertainment expects revenues for the three months ended September 30 of $119 million versus nearly $1.32 billion for the year earlier quarter and the struggling theater anticipates material write-downs of assets, according to an SEC filing Tuesday morning with preliminary financial results.
Cash and cash equivalents stood at $417.9 million.
The company also said it will sell 15 million shares to raise fresh cash. It recently raised close to $55 million selling the same number of shares.
Excluding impairments, its said operating costs and expenses for the three months ended September 30 will be in a range of approximately $584 million to $604 million — compared to $1.296 billion the year before.
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Interest expense for the three month will be approximately $94 million compared to $85 million for the year ago.
The company announced last week that it could run out of cash by year end with some dire language it reiterated below.
“As previously disclosed, in the absence of significant increases in attendance from current levels or the availability of significant additional sources of liquidity, at the existing cash burn rate, the Company anticipates that existing cash resources would be largely depleted by the end of 2020 or early 2021. Thereafter, to meet its obligations as they become due, the Company will require additional sources of liquidity and/or increases in attendance levels. The required amounts of additional liquidity will be material. Due to these factors, as previously disclosed, substantial doubt exists about the Company’s ability to continue as a going concern for a reasonable period of time.”
AMC is actively continuing to explore potential sources of additional liquidity renegotiating leases, assets sales and minority investors.
The new stock sales will bring is some cash. Theaters are also reopening in New York state Friday, although not New York City.