AMC is not due to give us its Q4 results just yet, but given that the chain is still struggling with a heavy debt load, we got a little sneak peek as they renegotiated their credit arrangements for some more breathing room. Review the entertainment attorney Brandon Blake, from Blake & Wang P.A., tells us what they shared.
Revenue Dip
Although revenue took a small knock, it only dropped by $0.01B from the year earlier, so it is probably best considered as flat. Adjusted losses also pulled in to $127.4M, from $135.6M.
That leaves their adjusted earnings before interest, taxes, depreciation, and amortization at $134.1M, vs. the $164.8M prior. They will finish the year at $428.5M, with $48.8M withheld from that as restricted cash. Overall, revenue managed a 4.6% rise, with profit up by 13%.
A Step Forward
With the box office offering a steady improvement from year to year post-pandemic, it may not be a dramatic recovery, but it is more than enough for some returned hope and confidence. We’ve also seen this year’s box office start well, and although the major snowstorms have held that back a bit, it’s still promising, with a strong slate ahead to support it.
AMC was also able to share that their debt will be restructured again, with some new, secured debt, also offering them the breathing room to continue. This debt, which actually pre-dates the COVID pandemic, has proven very hard for AMC to get out from under, especially with the closures further impacting its performance. However, hopefully this will be the extra injection of hope and stability the chain needs to move ahead and take advantage of what should be a very good year at the box office, and hopefully overall for the exhibition industry.
Film and Television 