The widely anticipated AMC Q2 2021 Earnings Report Call on 9th August saw reported sales at over $444 Million, smashing their own expectations of $375 Million by a wide margin. CEO and Chairman of the Board Adam Aron was upbeat as he directly answered apes questions, and opening the door for renewed Dividends, but not for at least a year.
In fact, Adam Aron spoke very plainly when he simply said the following, which we expect will become seminal, not just now, but in the future, especially when AMC rides to the moon on the MOASS:
The AMC Q2 2021 earnings report contained a number of surprises. Whilst it was expected that the company would post positive news, nobody was expecting sales to wallop the estimates as hard as they did, being around 18.5% higher than had been previously estimated.
“It is also worth noting that our sheer will to drive through this COVID-19 crisis clearly resonated amongst those who also were committed to our survival, because seeing movies in theatres has been a central part of the cultural fabric of society the world over for decades and decades and decades.
There are many who shared our passion that moviegoing at our theatres should continue for future generations. Accordingly, we are ever so grateful to the friends and allies that AMC has gathered along the way. They can take comfort in knowing that as we rebuild our company, our deeper cash reserves allow us to stay the course, to innovate again and to capitalize on opportunitiesAdam Aron, CEO of AMC
around us. In short, as the largest movie theatre operator in the world, AMC is playing on offense again.”
Adam Aron took investors questions as promised, reading the now famous Timothy B question out first… yes, that one which Apes used as a way of making an unofficial share count, which some data scientists have analysed and believe that it shows clear evidence of potentially BILLIONS of synthetic shares.
Great News from AMC Q2 2021 Earnings Report
Further positive news on AMC Q2 2021 earnings report relates to the Balance Sheet, Cash and Liquidity, with the following information outlined by the company, and getting Apes all excited. The report stated:
Cash at June 30, 2021 was $1,811.2 million excluding restricted cash of $28.4 million. AMC currently has liquidity
availability of more than $2.0 billion (including cash and undrawn revolving lines of credit). During the second
quarter of 2021 the Company implemented the following actions:
- In April 2021, launched an At-the-Market (ATM) equity program to sell up to 43 million shares of Class A
common stock and raised approximately $427.5 million before commissions and fees.
- In May 2021, received the remaining cash consideration of approximately $31.9 million on the completion of the
sale of our remaining equity interest in our theatres in Lithuania.
- In June 2021, raised $230.5 million of cash from the sale of 8.5 million shares of Class A common stock to
Mudrick Capital Management, L.P.
- In June 2021, launched an ATM equity program to sell 11.55 million shares of Class A common stock and raised
approximately $587.4 million before commissions and fees. This brings the total ATM equity raised in the
second quarter of 2021 to approximately $1.246 billion, before commissions and fees.
Our favourite financial talking head Charles Payne took to Twitter to express his delight at the AMC Q2 2021 earnings report, announcing he would be speaking with Adam Aron on his show ‘Making Money with Charles Payne’ on Tuesday 10th August at 2 p.m. EDT.
Many of the memestock YouTubers livestreamed the call, with others waiting to make recap videos, such as this one from Randall Cornett, which succinctly highlights the main points:
One of the great bits of news was the announcement of the deal with Warner Bros, whose movies will be played in AMC theatres for a whole 45 days before being released on streaming services. Aron also said by the end of the year, AMC will accept Bitcoin at their movie theatres.
Aron is also recommending a new policy that the CEO and executiive management team will be required to hold at least their salary in AMC stock, including himself, which will be equal to the value of $12M worth of shares. For the CFO, they will be required to hold 6 years salary worth of shares, with executive VP’s needing 4 years, and Senior VP’s 2 years. Aron went on to elaborate that he himself has not sold a single AMC share in the entire 5 years that he has been CEO. He further committed not to selling for the remainder of the year.
One very interesting point he made was in saying that he would be passing off smaller amounts of his share to an independent third party to sell his shares. This could be a cause for concern, but only because we don’t yet have any specific details of how this will work, or who the third party would be.
Finally, Aron did say that he would be very open to reaching out to Ryan Cohen to look to the possibility of a partnership between AMC and GameStop, an idea which has been floated by apes, and which gained a great deal of traction on the Say App.
Overall, the AMC Q2 2021 earnings report was very bullish. Apes are happy, and this should go some way to encouraging more buying, more holding, and more Tendie-hunting as wait for the MOASS to really get going.