2024-04-11 03:29:09 ET
Summary
- AMC came close to meeting my expectations in 2023, despite the SAG-AFTRA strike.
- My expectations involved over $400 million in cash burn though, and significant dilution.
- For 2024, AMC is projected to have nearly $400 million in interest costs.
- It should still have a substantial (over $600 million) amount of cash by the end of 2024.
- With around $2.9 billion in debt maturing in 2026, that remains its biggest challenge to avoid restructuring.
It has been a while since I last looked at AMC Entertainment ( AMC ) in December 2022 . My thesis at that time was that AMC could grow revenues by +25% in 2023 and improve its operating cash burn by $450 million compared to 2022. Even with that improvement, I still believed that AMC's common stock would be a strong sell due to massive dilution and its very large debt burden. I mentioned that AMC's first-lien notes due 2029 looked significantly better for anyone trying to play a box office rebound....
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AMC Entertainment: Nearly $400 Million In Annual Interest Costs Makes It Hard To Stem Cash Burn