Shares of AMC Entertainment (AMC 2.95%) have jumped today, up by 6% as of 12:55 p.m. EDT, after the movie theater chain reported second-quarter earnings. As expected, COVID-19 absolutely decimated revenue and earnings, but the company is optimistic about reopening its theaters soon.
Q2 revenue plunged by an astonishing 99% to $18.9 million due to widespread closures and lockdowns throughout the period. The company's U.S. theater operations were suspended for the entire quarter, while international locations started to resume limited operations in June. At the end of the quarter, AMC had reopened 37 theaters in nine countries. That all translated into a net loss of $561 million, or $5.38 per share.
"It should be no surprise to anyone that with our operations shut the world over, and almost no revenues coming in the door, this was the most challenging quarter in the 100-year history of AMC," CEO Adam Aron said in a statement. "That is why the progress the entire AMC team made since the second quarter began is all the more important and impressive in working to achieve three key priorities: to dramatically reduce operating and capital expenditures, to strengthen our liquidity position and to set plans in motion for the successful reopening of our theatres as soon as it would be wise to do so."
The media exhibitor said that managing liquidity is its highest priority right now, particularly given it flirted with bankruptcy during the quarter. AMC had $498 million in cash at the end of Q2 and is working to reduce costs. Following the close of the quarter, the company completed a debt exchange offer in July to restructure some of its hefty debt load.
Aron hopes to reopen "essentially all" theaters within the next two to three weeks.