The shares of AMC Entertainment Holdings Inc. gave up the big gains that came after the company delivered quarterly results that topped Wall Street expectations on Tuesday.
Shares of the Leawood, Kansas-based movie-theater chain climbed by as much as 9.94% to $37.16 apiece before selling to nearly unchanged.
The second quarter of 2021 was transformational for AMC, says CEO Adam Aron in a statement accompanying his company's second-quarter results.
On Monday, AMC reported its fourth loss in the quarter to $444 million, or 71 cents per share, from $561.4 million in the prior year. Revenue was up 2,252% to $444.7 million.
The improvement came as AMC had all 593 international theaters and 335 domestic theaters, representing about 95% of domestic locations. During the quarter, more than 22 million patrons attended theatres, up from 100,000 during the same period last year.
The return to the box office and a number of stock and debt offerings helped AMC raise its cash pile to $1.81 billion. The company raised ticket prices last week by about 5%, which is about a 50 cent increase for tickets, on average.
However, Aron warns AMC that it is still out of the woods despite shares rising this year by 1,494% through Monday.
In January, AMC avoided bankruptcy filing after receiving a $ 917 million infusion from investors. At the time, shares bottomed out at $2.01 apiece.
While there are no guarantees as to what the future will bring in a still infection-impacted world, one can look ahead and envision a happy Hollywood ending to this story, Aron said.