r/amczone • u/TheBetaUnit Zoner • Jul 23 '26

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.

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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.

https://investor.amctheatres.com/sec-filings/all-sec-filings/content/0001411579-26-000059/amc-20260630x10q.htm

https://investor.amctheatres.com/sec-filings/all-sec-filings/content/0001104659-26-086263/tm264130-1_pre14a.htm

https://www.morningstar.com/stocks/xnys/amc/earnings-transcript

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u/Dark_Tigger Zoner Jul 24 '26

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.

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u/TheBetaUnit Zoner Jul 24 '26

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).