The nationwide and international shutdown of movie theaters is taking a toll on AMC Theaters. The massive theater chain revealed its first quarter numbers and the January through March run is looking brutal for the exhibitor. AMC Entertainment is expecting to report massive losses between $2.1 billion and $2.4 billion in 2020's Q1. The company had been expecting revenue of $941 million, already a drop from the $1.2 billion a year earlier. The numbers are still early estimates from the company as they will be audited and finally reported following the exhibitor's delayed financial reporting process.
"We believe, but cannot guarantee, that the exhibition industry will ultimately rebound and benefit from pent-up social demand for out-of-home entertainment, as government restrictions are lifted and home sheltering subsides. However, the ultimate significance of the pandemic, including the extent of the adverse impact on our financial and operational results, will be dictated by the currently unknowable duration and the effect on the overall economy and of responsive governmental regulations, including shelter-in-place orders of the pandemic and mandated suspension of operations," the company said in an SEC filing announcing its preliminary earnings and complicated outlook.
AMC Theaters have had their locations closed since March, resulting in what will be a devastating second quarter, as well.
"The quarterly loss includes an impairment charge related to estimated long lived assets, indefinite-lived intangible assets and goodwill of $1,800.0 million to $2,100.0 million," Deadline reports. "Adjusted net loss — excluding one-time impairment and other charges — was $224.5 million compared to $101.8 million in the same period a year ago. Net cash provided by (used in) operating activities, investing activities and financing activities to be $(184.0) million, $(87.4) and $312.4, respectively, compared with $1.4 million, $(98.5) million and $(33.9) million for the three months ended March 31, 2019, respective. First quarter adjusted free cash flow was negative $220 million. Free cash flow was negative $275.7 million — compared with negative $49.8 million and $113.4)million last year, respectively. First quarter adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $3.1 million compared to $108.2 million."
Theater chains have not yet revealed plans to reopen but the bounce back comes with a strong line up of films if moviegoers are comfortable with gathering to see blockbuster titles. Beginning in mid-July, Tenet leads off a line up which is followed by titles including Mulan, Wonder Woman 1984, A Quiet Place Part 2, and Black Widow.