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AMC Theaters has “substantial doubts” as to whether it can remain in business

The theater chain, which closed its theaters earlier this year, expects to have lost between $ 2.1 billion and $ 2.4 billion in the first quarter.

The company also said that its revenues dropped to $ 941.5 million, down approximately 22% from $ 1.2 billion in the same quarter last year. In this quarter, the situation has worsened significantly.

“We are not actually generating revenue,” the company said in a Wednesday statement.

AMC (AMC) it will continue to monitor the “potential lifting of various government operational restrictions”, but added that the chain presents serious challenges even if the restrictions are lifted. This includes studies that prevent the screening of new films.

“Although governmental operating restrictions are lifted in some jurisdictions, distributors may delay the release of new films until such time as operational restrictions are eased broader nationally and internationally, which could further limit our operations, “said the company.

The company said it had a cash balance of $ 71

8.3 million in April.

“We believe we have the cash resources to reopen our theaters and resume our activities this summer or later,” said AMC. “Our liquidity needs from then on will depend, among other things, on the timing of a full recovery of operations, on the timing of film releases and on our ability to generate revenue.”

The company’s shares rose 4% after initially decreasing 8% in Wednesday morning trades.

The coronavirus epidemic has devastated the world of cinema. Large and small cinemas were closed due to the outbreak and some of the biggest films of the year – “Mulan”, “Wonder Woman 1984” and “F9” – were delayed.

Cinemas like AMC have also faced another existential threat because audiences can watch movies at home. This was the case with Universal’s “Trolls World Tour”, which circumvented theaters for digital release.

Universal’s decision to release “Trolls” on demand caused a feud between the studio and AMC which led to the chain banning Universal’s films from its cinemas.

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