All the publicity garnered by AMC Entertainment Holdings during the Reddit fueled stock frenzy of January actually played a big role in salvaging an absolutely brutal year financially.
In fact, the company had a disastrous 2020, with details coming to life Wednesday.
If an earnings report had a movie genre attached to it, AMC’s was pure horror film.
The coronavirus pandemic walloped the entire company during the fourth quarter, which added to the misery of an entire fiscal year.
They reported a loss of $946.1 million for the fourth quarter. The total loss for 2020 was a staggering $4.59 billion.
As for the stock price, it dropped $6.21 in the final quarter of the year, and almost $40.00 for the year.
AMC was still able to book $1.24 billion in revenue for the year, which is down 77% year over year.
By the end of December, AMC was operating 394 theaters in the U.S, and all were at limited seating capacity. Their shutdown started in March of 2020 and continued throughout the year.
The increased popularity of home streaming also took a big bite out of AMC’s bottom line, and that is an issue they will face when the pandemic ends.
As for the Reddit investors forum WallStreetBets? They drove the stock price up 467% during a 72 hour period, which allowed the company to raise additional funds, cut debt, and ultimately avoid bankruptcy.
Despite the disastrous year, AMC is still sitting on over $1 billion in cash.