AMC Theatres announces plan to reopen and reports $2.17 billion Q1 loss

Last Updated on July 30, 2021

AMC Theatres is trying to hang in there. The theater giant, which is the largest theater chain in the nation with over 600 locations, posted a quarterly loss of $2.17 billion, which included $1.85 billion of non-cash impairment charges, against a year-earlier loss of $130 million. Despite the dire financial situation, AMC is aiming to fully open in July, just in time for Christopher Nolan's TENET on July 17.

AMC claims they will be fully positioned for TENET which will be followed by Disney's MULAN on July 24. So far they have already reopened 10 theatres in Norway, Germany, Spain, and Portugal and expect to be fully opened globally in July. There are certain areas that are still question marks. AMC Entertainment CEO Adam Aron tells "Deadline" that New York City’s recovery from COVID-19 leaves an uncertain outlook for theaters there being ready for TENET on July 17 although he said based on current projections, New York State is supposed to open broadly in early July while New York City will be right on the cusp of the film's opening. California has said movie theaters can begin reopening this Friday and while many won't be making that move, they should be in a comfortable position to do so under the restricted guidelines by the end of June. Los Angeles County, a huge box office market, is expected to be ready but San Franciso, another market that drives box office, may not be ready to open their theaters until mid-August. Despite all the uncertainty, Aron has been in frequent talks with Warner Bros. about TENET, and much like their discussion with Cinemark about reopening, the studio is still committed to the July 17 release date.

The topic of the very public rift that AMC had with Universal Pictures over Universal boasting about the PVOD success of TROLLS WORLD TOUR & their plan to explore that release model more in the future was also broached and things have seemed to have softened since the initial spat. AMC is in active dialogue with Universal but no movies made by Universal Studios are currently on the docket:

"So, look, relations are warm with Universal. They have always been warm, and I’m using that as a good word. There’s nothing personal about this issue with Universal. I have great respect for Universal’s executives. It’s just an issue about money. We are in active dialogue with Universal."

I suppose AMC has time to fully work things out with Universal because the first movie on their schedule is Focus Features’ Kevin Costner–Diane Lane crime drama LET HIM GO on August 21. The following month, Focus has Universal’s KAJILLIONAIRE starting its platform on September 18, followed by Uni/MGM’s CANDYMAN on September 25 and Amblin’s Tom Hanks sci-fi movie BIOS on October 2.

Aron didn't specifically lay out all of their safety protocols for their theaters and said a more detailed breakdown would probably come next week but he did give some idea of what patrons could look forward to at their locations. They'll be consulting with current and former faculty from the prestigious Harvard University School of Public Health to seek guidance from the best scientists and experts on how best to create a safe environment for their guests and associates. Personal protection equipment, cleaning protocols, limited theatre capacity, blocked seating, and other strategies are all being planned as well. They are especially looking at high tech solutions as well, to aid in thorough sanitization techniques including the use of electrostatic sprayers, HEPA vacuums, and wherever possible upgraded MERV 13 air ventilation filters.

Out of all the major movie theater chains, AMC has seemed to suffer the most from being shuttered since mid-March due to the COVID-19 pandemic. The chain was already facing massive debt and the closure of their theaters only made a bad situation even worse. AMC has been one of the only chains to publicly disclose that they have concerns about maintaining their business and remaining open as we try to get back to some normalcy with the reopening of businesses nationwide. There is some promising news since AMC announced its reopening plans. AMC Entertainment stock jumped over 15% at open in a down market Wednesday due to the announcement of their global reopening news and share popped by over 17% in premarket trade. Aron also described an extremely solid performance for the months and weeks before the pandemic hit as well as cost-cutting measures and a massive push with landlords to have first quarter rent forgiven or payments reduced in some deals that may extend into the rest of this year or beyond that could help their cause. 

AMC Theatres is the location I frequent the most in my area so I'm happy to hear that they have announced real plans to reopen. I hope they can maintain their business and improve on the debts they have accumulated so they can continue to be a mainstay for the moviegoing public. By the way, AMC and Cinemark have put a lot of their timeline on TENET so no pressure to Warner Bros. on making that happen because it seems like everyone is waiting on their final move.

Do YOU frequent AMC? Happy to hear they're reopening?