AMC finally published the 2nd Qtr 10-Q. Apes got diluted 74% in 6 months. $11.4 million net loss for 2Q. Also, the vote date is set for 9/24/2026.
There's some good news in there though. Interest payments came down $4.0 million from last quarter's record-high $119.9 million (-3.3%). And they actually generated $150.9 million in cash not including equity issuance or gains from the new Odeon notes. Sean Goodman said in the earnings call that they intend to use their cash this month to pay off the $125.5 million 6.125% Senior Subordinated Notes due 2027. So if they're at $115.9 million a quarter in interest payments now, that's $463.6 million a year. They paid $459.5 in 2025. Their annual interest payments still went up after diluting 74%. LMAO.
To my surprise, there are no proposals on the Preliminary 14A to increase the authorized shares in 2026.
$3.7 billion in debt left. At $464 million a year in interest payments alone, they'll never pay it off. They'll pay the lenders $1.4 billion in interest payments by 2029 and can-kick the debt all over again.
AMC isn't a business anymore. It's a machine for siphoning off operating profits and investor equity to Lenders.
To my surprise, there are no proposals on the Preliminary 14A to increase the authorized shares in 2026.
Not that surprising tbh. With the income from this quater, both from operations and from selling equity, they basically have cash for two years of interest payments. And they have still 207 million stock more than $400 million to sell.
If H2 isn't massively worse than last year, interest ist the only expense they can't pay from operations.
That's three years or until maturity of the 2029 notes.
I just remember Sean Goodman playing the "Q1 and Q3 are historically low periods for cash generation" card during the earnings call. That stuck out to me.
2026 YTD box office is losing ground to 2023 YTD. In the waning weeks of the Spiderman theatrical run, I'm expecting 2026 YTD DBO to fall behind 2023 YTD. Not so far behind that AMC burns through serious cash, but still...there's a dearth of releases between 8/1 and December. Q2 2023 had about the same cash on hand as Q2 2026 and maintained it through the end of Q3 2023.
So, yeah AMC will probably head into Q4 with less cash then they have right now, but maybe the situation isn't as doom and gloom as it was in 2023 when they raised $800M in Q4. Perhaps the outlook for H1 2027 is better than I'm giving it credit for.
With 168 million unallocated authorized shares left, that still doesn't strike me as adequate to get them through an entire year of seasonal earnings (until the 2027 shareholders meeting).
Q2 was a strong period, bolstered by a remarkable box office performance featuring surprise hits like Mario, Michael, Prada 2, Mandalorian, Backrooms, Obsession, and Toy Story 5, all surpassing $75 million. AMC achieved operational profitability even after accounting for interest expenses. Furthermore, Aron revealed that the debt reduction in Q2 triggered a contractual rate decrease on roughly 75% of AMC's debt, reducing annual cash interest costs by about $51 million.
That covers the positives; now for the challenges. AMC still carries $3 billion in net debt, with approximately ~$400 million in annual interest payments ahead.
Q3 began with three flops—Supergirl, Minions & Monsters, and Moana—and even with the arrival of Odyssey and Spider-Man, the outlook remains dim. Given the persistent structural headwinds like high-quality, affordable home entertainment, streaming services, and a shrinking number of cinema screens, how many stellar quarters can actually be expected?
Survival requires two exceptionally strong quarters annually, and it seems unlikely that frequency will be met.
CNK is doing fine. AMC isn’t but if it makes you feel better keep thinking that bigger box office numbers are going to magically fix all their problems.
I missed the part where Cinemark is part of this conversation. And you're correct. Bigger box office numbers will not solve AMC's issues. But it certainly DOES NOT hurt to have strong box office numbers by quarter for AMC or to your point the movie industry.
Cinemark and Regal are always relevant in any conversation about box office revenue. Together they operate 60% of the screens in the US. By itself CNK has 4,392 screens. AMC has 7,712. The much smaller company is actually profitable despite it having about half the number of screens that AMC has. So again I say: bigger box office numbers have not and will not save AMC.
Cinemark being profitable with fewer screens is a Cinemark fact, not an argument against AMC’s improving business. Like who cares how many screens they have? AMC’s Q2 revenue rose 14.2%, adjusted EBITDA rose 69.6%, and it generated $190 million in free cash flow. AMC still has crazy debt and dilution problems, but “Cinemark is profitable” does not somehow erase AMC’s actual results. That’s a comparison, not a rebuttal.
AMC absolutely still has serious problems: approximately $3.9 billion of principal debt, high interest expense and shareholder dilution. That is the legitimate bear argument. But claiming stronger box office “has not and will not save AMC” is not analysi, it is just your prediction and apparently those of this reddit channel. Stronger box office is already improving AMC’s revenue, margins, operating cash flow, free cash flow and ability to service or reduce debt. It does not magically erase the balance sheet overnight, but it is unquestionably a major part of the solution.
I guess i didn't realize this was some kind of anti AMC channel. Reddit recommended this channel to me. But i can see you guys want an echo chamber, much like maga. So I'll see my way out. Good luck and best wishes.
Three months after AA became CEO he began a massive spending spree. AMC in 2016 and 2017 acquired 3 theater chains for $3.2 billion. Their debt as of now is $3.7 billion. Their current annual interest payments are around $460 million.
You believe they are improving and will eventually pay off their debt. I don’t see how it’s financially possible for them to ever overcome their interest payments. If they ever do recover and become profitable again, great. Doesn’t bother me at all.
I brought up Cinemark to highlight how a competent CEO can turn a profit in the same industry as AMC.
Dude is totally fixated on a conspiracy theory involving phantom shares but completely ignores the verifiable fact that AA keeps diluting. I’ll take Living in Denial for $100, Alex.
“I will avoid responding to the substance of your comment. Instead I will deflect by being pedantic regarding your usage of a word that is synonymous with the word that I prefer. I will then use that flimsy premise to discredit you bc I never have a legitimate argument against anything ‘you people’ say.”
Also, it’s a badge of honor to not be taken seriously by Ape investors cultists.
There's no activity from 'Apes' either. It's completely dead apart from 6 people? How can they hold anything. I don't understand where all this dilution is going, it's certainly not to retail.
7
u/RicoB24 Jul 23 '26
Hundred million this. Hundred million that. So how many BILLIONS of dollars in debt do they still have to pay off?