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June 3, 2020, 9:58 a.m. EDT

AMC includes 'going concern' warning in its warning of a wider loss, stock still rallies

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By Tomi Kilgore

Shares of AMC Entertainment Holdings Inc. /zigman2/quotes/200235402/composite AMC -0.87% surged 5.2% in morning trading, erasing a brief selloff soon after the opening bell, after the movie theater operator included a "going concern" warning in its disclosure that it expects a much wider loss than a year ago. The company said in the "Exhibit 99.3" section within its 8-K filing with the Securities and Exchange Commission titled, "Impact of COVID-19," that it has suspended all of its theaters through June, effectively leaving the company with no revenue. The company said it believes it has the cash resources to reopen its theaters and resume operations "this summer or later," but the company said it cannot assure that its liquidity assumptions will be correct given it has never before experienced a complete cessation of its business. Given this uncertainty, or if a recurrence of COVID-19 causes another suspension of business, the company may be required to seek additional financing, which may not be available on favorable terms, or at all. "Due to these factors, substantial doubt exists about our ability to continue as a going concern for a reasonable period," the company said in the filing. The stock, which was down as much as 8.9% at its intraday low of $5.09 hit minutes after the opening bell, has now gained 1.2% over the past three months, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.12% has tacked on 3.3%.

/zigman2/quotes/200235402/composite
US : U.S.: NYSE
$ 5.67
-0.05 -0.87%
Volume: 2.43M
Sept. 18, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$625.31 million
Rev. per Employee
$135,969
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/zigman2/quotes/210599714/realtime
US : S&P US
3,319.47
-37.54 -1.12%
Volume: 4.09B
Sept. 18, 2020 5:15p
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