AMC Entertainment Can Fund Ops Through March 2022, Stonk Increases Significantly -

AMC Entertainment Holdings Inc. said Friday it can fund operations and satisfy its obligations through at least March 31, 2022, if attendance levels continue to significantly grow.

The theatrical exhibition company said in a Securities and Exchange Commission filing that its assumptions require significant increases in attendance levels beginning in the third quarter, ultimately reaching 90% of pre-Covid-19 attendance levels by the fourth quarter of 2021 and through the first quarter of 2022.

Shares rose 7% to $11.03 in morning trading.

"If we are unable to achieve more normalized levels of attendance and operating revenues...we may be required to obtain additional liquidity. If such additional liquidity were not realized or insufficient we likely would seek an in- court or out-of-court restructuring of our liabilities," AMC said.

The company said its long-term growth strategy includes the deployment of strategic growth initiatives, opening new- build theatres and continued exploration of small acquisitions.

During 2020, "we reopened 18 screens to implement our strategy to install consumer experience upgrades. As a result of the Covid-19 pandemic, we have reduced capital expenditures significantly to maintenance levels and with the exception of prior commitments...have eliminated growth capital expenditures at this time. We cannot currently determine when we will be able to resume our growth strategy," AMC said.

The company said its long-term strategy also includes closing underperforming theatres. AMC said that during 2020 it permanently closed 63 theatres with 593 screens for leased locations where it couldn't renegotiate an acceptable future rent term and also owned properties, where it is seeking to sell the real estate.

AMC said that as of March 5, it was operating at 527 of its 589 U.S. theatres, with limited seating capacities and during limited opening hours. Some of the company's major markets in the U.S., such as New York City and California, remain partially closed for theatrical exhibition, the company said.

"During the fourth quarter of 2020, we experienced an overall attendance decline in the U.S. of approximately 92.3% compared to the same period a year ago," AMC said.

Write to Michael Dabaie at