$AMC Entertainment (AMC.US)$ shares are tanking Thursday after the company announced an at-the-market offering.
AMC entered into an equity distribution agreement to sell up to $350 million worth of shares of its common stock from time to time through an at-the-market offering program.
AMC said it intends to use any net proceeds to bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness and for general corporate purposes.
The news comes a day after AMC reported third-quarter financial results. The company reported revenue of $1.41 billion, which beat the consensus estimate of $1.17 billion. AMC reported a quarterly loss of 9 cents per share, which beat estimates for a loss of 38 cents per share.
"It is quite satisfying for AMC to report impressively favorable earnings for the third quarter of 2023, significantly above consensus and market expectations," said Adam Aron, CEO of AMC.
"This all suggests that we are well underway on our growth path to recovery from the ravages of the COVID pandemic."
Third-quarter attendance was up on a year-over-year basis, but still about 16% below where it was in 2019. However, contribution per patron was up about 30% versus 2019.
AMC ended the quarter with $729.7 million in cash and equivalents.
"The short-term impacts of the Writer's and Actor's strikes will cause additional and needless challenges for AMC in 2024 ... There has been and will be much collateral damage from these lengthy work stoppages," Aron added.
AMC shares are down more than 70% since the start of the year.
