AMC Entertainment (NYSE:AMC) has jumped 4.6% after hours, after its first-quarter earnings showed revenues rebounding even more sharply than expected and the company heavily cut losses as its business sought to return to normal from the COVID-19 pandemic.
The stock had slid 8.7% during Monday's regular session to reach its lowest point in nearly a year (its 52-week low of $9.56 came last May 10, 2021).
In Q1, total revenues jumped to $785.7 million, more than five times the figure from a year ago when it was plagued by theater closures in the pandemic. That was better than the $743.4 million analyst consensus.
Similarly, net loss improved to $337.4 million vs. a year-ago loss of $567.2 million. And EBITDA jumped to -$61.7 million from a year-ago -$294.7 million.
"We continue on our pandemic recovery trajectory, more than quintupling revenues and improving adjusted EBITDA by nearly eighty percent compared to a year ago," says CEO Adam Aron, who pointed to film successes of the past few months - Spider-Man: No Way Home, The Batman, Sonic the Hedgehog 2 and the new hit Doctor Strange in the Multiverse of Madness - as evidence of the appeal of theater showings.
"Our operating and capital allocation priorities remain unchanged: relish and guard our strong liquidity position, strengthen our balance sheet, innovate with our marketing programs to drive revenue, contain costs, invest in our core business and continue to explore transformative value-creating investment opportunities," Aron adds.
In the all-important area of liquidity: Net cash used in operations shrank to $295 million from a year-ago $312.9 million. Cash balance was $1.165 billion; the company notes that including undrawn revolving credit, it has liquidity availability of more than $1.35 billion.
Conference call to come at 5 p.m. ET.