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A thread about $AMC. #SaveAMC!
1/ The theater chain announced on 1/24 that it raised $917mm in additional capital since December 14, 2020, consisting of $506mm of a new at-the-market equity issuance and a $411mm via new term loan.
1/ The theater chain announced on 1/24 that it raised $917mm in additional capital since December 14, 2020, consisting of $506mm of a new at-the-market equity issuance and a $411mm via new term loan.
2/ This new influx is in addition to the previously announced deal with Mudrick Capital Management, which recently took time out of its busy schedule losing money on the $HYMC SPAC deal to provide AMC with $100mm in new cash.
3/In exchange for fresh capital, Mudrick received $100mm 15%/17% Cash/PIK first lien notes, while converting $100M of its existing second lien notes into common stock. That conversion is already paying off handsomely. As we write this, AMC stock is up 222% pre-market. STONKS!!
4/Given the crazy market activity, we’d be remiss if we didn’t highlight that, so far, the company has raised an astounding $1.9b of capital since April through a series of debt and equity issuances, amendments to existing debt, exchange offers, and asset sales.
5/CEO Adam Aron noted that the latest fundraise “means that any talk of an imminent bankruptcy for AMC is completely off the table.”
6/The related filing caveats that absent increased attendance, continued equity issuance, and additional landlord concessions, the company would run out of liquidity in July 2021.
7/As of January 21, the company was operating 438 of its 593 U.S., albeit at reduced capacity. Theaters in major markets including NYC and California remain closed.
So, uh, yeah, good luck with that.
So, uh, yeah, good luck with that.
8/According to RottenTomatoes, of 91 “Most Anticipated Movies” slated for 2021 release, at least 11 are expected to be released simultaneously on HBO Max. We're already looking forward to the Rami Malek, Denzel, Jared Leto feature coming out on Friday!
9/ In Q420, attendance in U.S. was 
92.3% from same period last year, which suggests that about 4.8m people went to the movies during the quarter. During the Q320 earnings call, CEO Adam Aron noted that theaters start generating cash flow at 25% capacity, assuming rent is paid.
92.3% from same period last year, which suggests that about 4.8m people went to the movies during the quarter. During the Q320 earnings call, CEO Adam Aron noted that theaters start generating cash flow at 25% capacity, assuming rent is paid.
10/Aron dismissed the notion seat limitation will cripple the business, adding that the company sold 17% of its available seats in 2019. (In the US, with approximately 1.1M seats and 250K patrons during the year, AMC’s utilization was closer to 22%.)
11/Astute readers will note, however, that these numbers aren’t necessarily reflective of the theatre business reality. Hot releases draw large crowds, while mid-day showings during the week are slower.
12/It’s not obvious that AMC can distribute the demand throughout the week, so the capacity restrictions may continue to be a drag on performance.
13/Specifically, the company estimates that, together with proceeds from continued at-the-market equity program and additional landlord concessions, it would require the following attendance levels:
14/By the end of June 2020, the company had reached agreements for rent deferral and abatement on approximately 75% of its leases. As of 12/31, cash rent is expected to increase due to obligations that were deferred to 2021 and future years.
15/The company has ceased to make rent payments on “substantial portion” of its leases, and has received notices of default.
16/During the third quarter conference call, company provided guidance for Q420 monthly cash burn of ~$120-125M, an increase of 5-10% from Q320, reflecting an increase in theatre reopening expenses. The January 25th filing notes that average monthly cash burn was ~$124 for Q4.
End/
It's a good thing for AMC that it got some traction on r/WallStreetBets.
It's a good thing for AMC that it got some traction on r/WallStreetBets.
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