According to the man behind it, AMC Entertainment Holdings Inc (NYSE: AMC ) survives today thanks to a group of passionate retail investors.
What happened: AMC CEO Adam Aron says the movie theater chain would not have survived the pandemic without a base of retail shareholders known as monkeys.
“I feel very fortunate that these particular investors are interested in our business, because if they weren’t there, we wouldn’t be here today,” Aron said Monday on CNBC’s “Squawk Box.”
AMC went bankrupt in 2020 after the COVID-19 pandemic crippled the film industry. Before long, a large group of retail investors came together to keep the company going, and it worked.
“We’ve raised $2.2 billion in 2021. Our competitors haven’t … we’re in a strong competitive position and they’re in trouble,” Aron said.
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AMC announced its results for the third quarter last week. The company ended the quarter with $895.8 million in cash, according to Benzinga Pro.
What’s next: AMC’s CEO predicts the company will need to continue raising capital, but has been raising preferred capital on a “slow and steady” basis to do so.
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In early August, AMC announced a special dividend in the form of an APE, or AMC Preferred Equity Unit (NYSE:APE). One APE is granted for each share of AMC Class A common stock.
“When we launched APE Security … we immediately said we were going to raise capital with it, but we were going to do it at a pretty slow and steady pace,” Aron said.
“We know what we’re doing. We’re doing it the right way. We’re going to continue to raise capital, and it’s a smart way to run our business.”
Aron told CNBC that he doesn’t expect the movie industry to fully recover until 2024, but thanks to the monkeys, the company is in a good place.
“We are quite optimistic that in 2023 there will be a lot of growth on the 22nd and on the 24th and on the 23rd. We are confident in our future,” Aron said.
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AMC Price Action: AMC has a 52-week high of $34.33 and a 52-week low of $5.05.
Shares rose 4.73% to $7.53, according to Benzinga Pro.
Photo: Dave Dugdale on Flickr
