AMC stock falls 7%, going ‘APE’ with preferred-stock dividend (NYSE:AMC)

Low angle view of the exterior of an AMC theater on a sunny day.

Colleen Michaels/iStock Editorial via Getty Images

AMC Entertainment (NYSE:AMC) is 7% lower in after-hours trading after some in-line earnings, second-quarter earnings translate into a better-than-expected loss — and plans a special preferred stock for its retail investor Ape Army.

The stock was increased by up to 5.5% immediately after the results, but the new equity issued to shareholders via a special dividend raised some concerns about dilution.

The new preferred stock will be listed on the NYSE under the ticker symbol APE — not only representing AMC Preferred Equity, but also a nod to the company’s meme-friendly fanboy investors. And upon corporate and investor approval, it could be converted into AMC common stock.

And AMC is manufacturing a non-fungible “I own APE” token to be distributed to members of its Investor Connect program.

Revenue rose 162% from the pandemic-hit 2021 second quarter, but the $1.16 billion figure still fell short of the pre-pandemic second quarter of 2019, when the company reported $1.5 billion recorded.

Net loss improved to $121.6 million from a net loss of $344 million a year ago. Adjusted EBITDA increased to a profit of $106.7 million from a loss of $150.8 million a year earlier.

The quarter “elevates our spirits and brightens our outlook as we look ahead,” said CEO Adam Aron. Global participation increased to 59 million from 22 million a year ago.

Revenue per patron is also exciting, he said, particularly in high-margin food and beverages: F&B spend per patron was $7.52, up from $5.58 in Q2 2019. Internationally, F&B spending was up revenue by 21.5%. And other revenue per patron increased to $2.01 from $1.22 in Q2 2019.

And while the loss per share benefited from improved operations, it was also impacted by the market valuation of the “volatile” share price of the company’s gold mining investment in Hycroft Mining.

The special dividend of one APE unit per common share was to be paid at the close of business on August 19 with record date August 15. The ex-dividend date is August 22nd. AMC stock falls 7%, going ‘APE’ with preferred-stock dividend (NYSE:AMC)

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