In an unusual move for a big public company, AMC’s 14 top executives agreed to slash their cash salary and bonuses for 3 years in exchange for stock.
Their cash payouts are going to be shaved by 15% and other compensation are going to be tweaked too. Aron said during a post-earnings call that it is a $1.6 million hit for him personally over 3 years but he’s doing it since he and other managers believe really strongly the shares are fundamentally mispriced at current levels.
In lengthy remarks he basically declared war on AMC’s $6 stock, which has declined by over 50% within the past year, and over 80% within the past five. AMC said all senior officers have signed on to the new pay regime except ones retiring during the amount. Two recent new hires also agreed to simply accept lower compensation than they were earning previously elsewhere so as to hitch AMC and participate.
Hitting on a couple of reason why the stock’s under performed debt and spending, he noted that both are heading south and reassured the road that none of the company’s debt matures anyway until 2024. Investments are tapering down because the bulk of U.S. theaters have already been upgraded. AMC also said Thursday it’ll start buying back stock, which tends to spice up the worth. Aron ticked off the explanations the exhibition industry is sound and touted metrics where AMC outpaces it, insisting the longer term is bright and almost begging Wall Street to urge with the program and stop doubting.
The low stock price and therefore the debt load have sparked on-and-off rumors of everything from a Chapter 11 filing to a takeover.
The company said the A-List tier of its AMC Stubs loyalty program, which launched in June 2018, has attracted quite 900,000 subscribers. During the primary quarter of 2019, AMC implemented a tenth membership increase in ten states and a 20% increase in five states. He said the program exceeded expectations and seemed to be profitable for the quarter and therefore the year.
AMC has 1,006 theaters and 11,,091 screens within the top five biggest markets within the country, including Phildalelphia, New York, San Francisco, Atlanta, and Dallas.