AMC Entertainment stock surges toward a 4-week win streak, says nearly 90% of U.S. theaters were open
Shares of AMC Entertainment Inc. shot up 6.5% in morning trading Friday, putting it on track for a weekly gain of 36.0%, and has now run up 95.9% amid a four-week win streak. The movie theater operator disclosed in its annual report filed with the Securities and Exchange Commission that as of March 5, 527, or 89.5% of its U.S. theaters, and 78, or 21.9% of its leased and partnership international theaters, were operating with limited seating. The company said that if attendance levels increase as currently expected, as COVID-19 pandemic-related restrictions ease, it will have enough liquidity to comply with minimum debt-covenant requirements to fund operations and satisfy obligations through at least March 2022. AMC said that in 2021, rent costs are scheduled to increase “significantly” because of rent obligations that were deferred to this and futures years that total $450 million as of Dec. 31. The company said it will continue to explore ways to generate additional liquidity and negotiate with its landlords to abate or defer a substantial portion of its rent obligations. AMC’s stock, which has lost 45.0% since closing at a more-than 2-year high of $19.90 on Jan. 27, has soared 276.3% over the past 12 months while the S&P 500 has climbed 58.5%.