AMC Entertainment, once a meme-stock favorite, is now facing financial difficulties, with its shares nearing record lows almost three years after its peak. In 2023, the company reported a significant cash burn of $440 million, including $150 million in the fourth quarter alone, and is saddled with $3.8 billion of net debt. Despite these challenges, AMC's stock experienced a nearly 40% rally in the last three weeks, although it remains down 8% after hours. The world's largest theater chain also reported fourth-quarter earnings that fell short of Wall Street estimates. Critics have highlighted issues such as the inclusion of cash from capital raises as non-GAAP cash flow and an EPS 'beat' by dividing losses into an ever-increasing share count, with AMC's share count having increased 21 times in four years. Amidst this financial turmoil, there is anticipation around the compensation paid to AMC's CEO in 2023.
#MOAD Mother of All Dilution $AMC’s share count is up 21x in four years https://t.co/8lwOxN49tp
$AMC loss release out. I love $AMC apes. See you all in bankruptcy court... https://t.co/y3R1gbK9Ta
Another spectacular example of #Ape stupidity: $AMC rallied nrly 40% in last 3 wks & is only down (8)% AH… https://t.co/6nBf9uUIKw …despite burning $(150)M FCF in Q4, still being saddled with $(3.8)B of net debt & still being hopelessly #insolvent!?! https://t.co/hmrGcFRA9w https://t.co/pmjUbGIOlW
AMC, the world’s largest theater chain, reported fourth-quarter earnings that fell short of Wall Street estimates https://t.co/iFRqUZa5AE
$AMC included my two favorite Hallmarks of a Shitco - sneaking in cash from cap. raises as non-GAAP cash flow - EPS “beat” by losses divided into an ever increasing share count. Congrats to the bond holders! - Kenny G. https://t.co/a8NkqyqoD7
AMC Theaters Burned $440 million of cash in 2023, including $150 million in Q4 $AMC Cannot wait to see how much @CEOAdam paid himself in 2023 https://t.co/TJprt1UNVy
I love $AMC Apes. https://t.co/bG9DVecc5B
Almost three years removed from its meme-stock heights, AMC Entertainment shares are skirting record lows https://t.co/Onjqt6O3lh