AMC Entertainment’s (AMC) – shares have plummeted approximately 80% since the beginning of August due to the dilution of its stock. But the company’s business is in the best shape it’s been since before the COVID-19 pandemic.
AMC’s second-quarter earnings showed a 16% year-over-year increase in revenue. Additionally, the theater chain reported its third consecutive quarter of positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), which reached $182.5 million. This amount surpassed both the $106.7 million EBITDA from the year-ago quarter and the Wall Street estimate of $153.3 million.
However, the biggest concern for AMC’s management involves the company’s cash and liquidity position. Following the conversion of APEs into common shares, AMC announced the successful completion of an at-the-market equity offering.
Through this transaction, the movie theater company raised approximately $325 million in new equity capital by issuing 40 million shares. Adding to this the $435.3 million in cash and equivalents reported during the previous earnings season, AMC should now boast a cash position of approximately $760 million.
AMC’s CEO, Adam Aron, emphasized that this cash infusion was crucial for the company’s strength and should make the company considerably more robust.