AMC Theatres Has 'Substantial Doubt' About Future

AMC Theatres indicated it's on its last legs this week after closing locations worldwide during the coronavirus pandemic. In a regulatory filing Wednesday, the world's largest theater chain expressed "substantial doubt" about its future.

AMC estimates it lost between $2.1 billion and $2.4 billion in the first quarter, and revenue dropped 22 percent from the same quarter last year. The chain already had a $5 billion debt at the end of 2019 before it took on more loans to weather the pandemic.

The company said it is "generating effectively no revenue" in the new 8-K filing, which came ahead of its earnings call next week. It's anticipating even worse numbers in the second quarter.

While movie theaters nationwide are starting to open up, major markets like New York City, Los Angeles and San Francisco are in states with more cautious reopening plans. Theaters in Massachusetts won't open until Phase 3, which is projected to start in July.

Even if restrictions are lifted, "distributors may delay the release of new films until such time that operating restrictions are eased more broadly domestically and internationally," AMC said. Its cash balance — $718.3 million as of April — might be able to carry its operations through the summer or later.

"Our liquidity needs thereafter will depend, among other things, on the timing of a full resumption of operations, the timing of movie releases and our ability to generate revenues," the company said.

AMC Theatres, and the theater industry as a whole, face a threat on another front: the rise of digital releases. Quarantined families ate up Universal's "Trolls World Tour" when it was released to on demand during the shutdown, causing a rift between AMC and the studio.

AMC has theaters in Boston, Somerville, Dorchester, Framingham, Tyngsboro, Burlington, Braintree, North Dartmouth, Danvers and Methuen.