Monday, August 9, 2021

AMC Q2 2021 EARNINGS CALL HIGHLIGHTS

The ones in bold are the ones i think are the most positive.

  • Beat EPS expectation by 25.66% (-0.96 expected, -0.71 actual)
  • Beat Revenue expectation by 16.38% ($382.11M expected, $444.7M actual)
  • They do not have to start paying back debt until 2023 with the majority owed in 2026 giving them time to refinance and to gain revenue to pay it off.
  • 300K shareholders have signed up for their Investor Connect program.
  • Adam Aron said his tweets have been viewed 72 million times.
  • No dividends for at least 1 year because their debt agreements do not let them issue any until they pay them. If they are in a better situation next year they will take a look at dividends.
  • They increased ticket prices by 5% and haven't seen any resistance from customers.
  • Adam Aron announced he will ask the board to accept a new policy where Insiders are not allowed to sell any granted shares for 1 year. In addition he will be required to hold 8 years worth of his salary in shares at all times. Other senior members will be required to hold 6, 4, and 2 years worth of their salary based on their title. He said this is so that they will be invested in the stock price of the company. But he said AMC takes up a significant amount of his personal portfolio so to diversify his portfolio he will pass off the ability to a third party to sell excess shares of AMC based on predetermined parameters towards the end of the year.
  • Claims due to their sanitizing procedures no customer has caught Covid in their theaters so far.
  • They said they have 2 theaters with VR and plan to open a third in New Jersey.
  • Adam Aron said they will not be adding an AMC mascot but are working on their branding this year. They will look into offering merchandise but said they have to determine the logistics of shipping to 600 theaters and see if it will be profitable.
  • AMC will accept Bitcoin, Apple Pay, and Google Pay by the end of the year in USA!!!
  • Adam Aron said they did an analysis of adding drive in theaters but determined it would be bad financially. He said the size of the parking lot needed for the number of customers would be expensive and that drive in theaters are seasonal. In colder states they don't go to them in the winter and in the summer the sun is out too long so they would only be able to show a couple shows a day which would not be worth the investment.
  • They said the UFC events brought in significant revenue and they look forward to showing more UFC events. But the other major sport leagues would not give them the rights to show their events in theaters so UFC only for now. They do have 2 upcoming concert events this month and if they go over well they would like to do more.
  • Food revenue is up 42% over Q2 2019, they said they would have been happy with 2-3%
  • They have $2.03 billion in liquidity, 2x what they had in Q1 and the most they have ever had.
  • Closed 74 theaters that lost money. Have bought/leased 6 more high grossing theaters from Arclight theaters to replace them including 2 in LA that are in the top 1% of highest grossing theaters in USA. They are in talks to acquire 4 more theaters.
  • They said the President of Epic Games is on their board and they are in talks with them to do something. Adam Aron also said he is open to working with Gamestop on gaming events but he hasn't talked to them yet to see if they are open to it.
  • They announced they have an agreement with Warner Brothers to show all their movies through 2022 exclusively in theaters for 45 days before they go to streaming. They are in talks with all other major movie studios for similar deals!!!

I can already tell the shills will start spreading FUD in the comments that Adam Aron is working for Shitadel because he said he might sell some of his excess shares at the end of the year to diversify his portfolio. I would remind you he hasn't sold any shares since coming to AMC and has only gifted some to his children. The fact he is going out of his way to propose that all of the board members be required to hold several years worth of their salary in AMC stock is to show that he believes in AMC. He also only has 758k shares to my knowledge and he needs to keep at least $12 million worth for the 8 years salary worth so at current prices he could sell half at most. ~375k shares is not gonna drop AMC's price noticeably if the third party sells them.

If i missed anything put them in the comments for others to see. STAY STRONG APES! UNITED WE GET RICH DIVIDED WE FALL!


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