Steve Fatula
TUG Member
I can accept that they may not pay full freight, but I can say AMC refused to give them a 20% rebate on tickets and started there own program. So my guess is some theaters are kicking back 20-30%. But others are full freight.
The issue is even with kick backs on full fares they are still burn money faster than they bring it in. When your shares are less than 2 cents. You can’t exactly issue more shares to raise revenue. Who would keep buying them. After the disaster of last reverse split all that will do is give them more room to go down.
There was a survey done the other day and the sampling surveyed had over mid 40% fed up with constant rule changes, Card not working at theaters, and constant erosion of benefits. While I do agree this was just a poll it doesn’t bode well when almost 50% of your brand base plans on throwing in the towel.
When your stock was at 52Week High of $9,715 split adjusted and is now at $.019. It’s not pretty
My annual pass expires week before Thanksgiving. I plan on cancelling or switching to a monthly account. Paying them for another year just doesn’t seem like a smart move in their situation.
I wouldn't pay for another year either. But gladly for another month. There are undoubtedly full freight theaters, there is no way they have contacted every theater including the one offs. However, I suspect they continue to work the list. They will not be issuing more shares, they have venture capital who wants to throw in money (not sure for what, surely not shares!). Also, don't forget not everyone goes during prime hours, and some are seniors like me. The ticket today to see the Meg cost $6.50 full price. On Tuesdays here, the price is far less. So, no idea what the average price would be. I know some areas are far more of course, and there are also budget theaters with second runs that are far less. Not sure what the deal is with those e-ticketed theaters, are any of them AMC? Maybe those are the ones with deals? We know (well, they claim) that the vast majority of their customers see < 3 movies a month. I don't think they specified the true average of those. They did need to get rid of the customers seeing many more per month obviously. Didn't make the happy of course, but, they had to. I believe it is salvageable. They have no fully leveraged all of the cost cutting and revenue increases they have yet either. In a business like this, it's always a case of is there enough capital to follow through with the plan, or, like most, were they undercapitalized.