Movie theaters have been hammered by the coronavirus pandemic, as theaters had to close for months and moviegoers have been hesitant to return. In addition, production companies have delayed film releases or shifted them to streaming platforms.
Regal Cinemas, the second largest theater chain in the country, announced last week that it was temporarily closing all its theaters.
AMC shares fell to $3.86, down 5.28%, in premarket trading. The stock has slumped 44% year to date through Monday.
In its filing with the Securities and Exchange Commission, AMC said it “believes its cash burn to date is in line with the prior update.”
“However, given the reduced movie slate for the fourth quarter, in the absence of significant increases in attendance from current levels or incremental sources of liquidity, at the existing cash burn rate, the company anticipates that existing cash resources would be largely depleted by the end of 2020 or early 2021,” the company added,
Further, the company said, “thereafter, to meet its obligations as they become due, the company will require additional sources of liquidity or increases in attendance levels. The required amounts of additional liquidity are expected to be material.”
AMC said it was looking for more liquidity, including additional debt and equity financing, further renegotiations with landlords on lease payments, asset sales, joint-venture or other arrangements with existing business partners, and minority investments in its capital stock.