11/14/2023 0 Comments Emc stock 2013![]() Even when revenues were coming in much higher prior to the pandemic, this was not a business that was generating tons of cash flow. While AMC has been able to reduce its debt pile a little recently, the amount of working capital is at its most negative point in two years. Key Balance Sheet Items (Company Filings) The reason to sell shares is quite obvious, as the table below shows, because the company's balance sheet has gotten much weaker in recent quarters. As a reminder, shareholders have approved an increase in the authorized number of shares to 550 million from its roughly 524 million. Once the reverse split goes through, the company will likely start selling AMC shares again, with the ability to more than triple the share count if need be. With a total estimated 156,260,885 shares of Class A common stock outstanding immediately after giving effect to the Conversion of AMC Preferred Equity Units into Class A common stock (post-Reverse Stock Split and Conversion, based on AMC Preferred Equity Units outstanding as of March 31, 2023) and issuance of the Settlement Payment, the shares issued in the Settlement Payment would represent approximately 4.4% of the outstanding Class A common stock on a pro forma basis. Based on 51,919,239 shares of Class A common stock (post-Reverse Stock Split) held by the Plaintiffs' class as of March 31, 2023, an aggregate of 6,922,566 shares of Class A common stock would be issued in the Settlement Payment. The settlement payment will consist of one share of Class A common stock for every 7.5 shares of Class A common stock owned by such record holders as of the Settlement Class Time (after giving effect to the Reverse Stock Split). The lawsuit aimed to prevent this conversion from going through, and the key details from the company's 8-K filing can be seen below: Once this is done, a 1 for 10 reverse split will go through, along with a slight increase to the amount of shares that can be outstanding. The company launched the APE units as a way to partially get around that, but now management plans on combining the two share classes. Assuming the court approves the deal, this sets up the company to significantly dilute investors in the coming quarters to fix a giant hole in its balance sheet.Īs a reminder, AMC is almost up against its outstanding share limit, meaning it can't sell too many more shares to raise capital. ![]() The movie theater chain is seeing its shares plunge after the company announced that it had settled a lawsuit regarding the conversion of its AMC Preferred Equity Units ( APE ). The stock has lost 6.2% over the past three months while Cinemark shares have edged up 0.One of Tuesday's biggest losers in the early going is AMC Entertainment ( NYSE: AMC). Meanwhile, Reese reiterated the underweight rating that’s been on the stock since September 2021, and the $2 stock price target, which implies TK% downside from current levels. ![]() ![]() Reported a wider-than-expected fourth-quarter loss but revenue that beat expectations. AMC’s report comes fellow movie theater operator Cinemark Holdings Inc. Analysts surveyed by FactSet expect, on average, per-share losses to widen to 21 cents from 16 cents last year and revenue to fall to $1.03 billion from $1.18 billion. The company is scheduled to report results after Tuesday’s closing bell. Reese expects industry box office this year to be 17% above 2022, but still down 24% versus 2019 levels. Wedbush analyst Alicia Reese believes movie theater attendance is on the path to normalization, given an improving movie release slate in 2023. Surged 13.6% toward a 12-week high in afternoon trading Monday, a day before the movie theater operator is scheduled to report fourth-quarter results.
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