What's Going On With AMC Entertainment Stock?

AMC Entertainment Holdings Inc AMC shares are trading lower Wednesday in the wake of the company's fourth-quarter results.

What Happened: AMC said fourth-quarter revenue decreased 15.4% year-over-year to $990.9 million, which beat average analyst estimates of $977.67 million, according to Benzinga Pro. The company reported a quarterly loss of 14 cents per share, which also beat estimates of 21 cents per share. 

Net cash used in operating activities was $33.3 million for the quarter. AMC ended the fourth quarter with $842.7 million in available liquidity, down from $1.8 billion on a year-over-year basis.

"The real story is that in 2022, AMC Entertainment continued on a multi-year glide path to recovery. AMC’s full-year 2022 results represented our strongest year since pre-pandemic 2019, with 2022 results improving over 2021, which in turn were better than those of 2020," said Adam Aron, CEO of AMC.

"We expect the recovery will continue apace in 2023, as Hollywood is expected to release approximately 75% more major movie titles than it did in 2022."

Related Link: AMC Entertainment Holdings Q4 Earnings Highlights: Revenue & EPS Beat, Liquidity Update, Multiyear Recovery Plan And More

Aron also noted that AMC plans to continue to raise cash and decrease its debt load in 2023. 

"As we have been saying for a long time, the industry-wide box office will not return to pre-pandemic norms before 2024 or 2025 at the earliest. Therefore, this active management of our capital structure is vital for AMC to ultimately both survive the pandemic and to thrive over the long haul," he said.

AMC said it sold 207.8 million AMC Preferred Equity Units APE in 2022, generating proceeds of $228.8 million. The company also sold 6.6 million APE units in the first quarter of 2023 for an additional $9.6 million.

AMC Price Action: AMC has a 52-week high of $34.33 and a 52-week low of $3.77.

The stock was down 6.86% at $6.65 at the time of writing, according to Benzinga Pro.

Photo: Paul Sableman from Flickr.