AMC Theatres said Tuesday ongoing challenges in the industry could leave it without cash as soon as the end of 2020.
The Leawood-based company made the announcement in a filing Tuesday to the Securities and Exchange Commission.
In the filing, the company said the delay of major movie releases from late 2020 into 2021, and continued uncertainty of release dates of other movies, have resulted in lower attendance levels.
The news comes despite the company’s recent reopening of many of its theaters, albeit with limited capacity. According to the filing, same-theater attendance is down 85% compared to the same period a year ago.
“Given the reduced movie slate for the fourth quarter, in the absence of significant increases in attendance from current levels or incremental sources of liquidity, at the existing cash burn rate, the company anticipates that existing cash resources would be largely depleted by the end of 2020 or early 2021,” the company said in the filing. “Thereafter, to meet its obligations as they become due, the company will require additional sources of liquidity or increases in attendance levels.”