UPDATED with AMC proxy numbers, Aron compensation in 2020: In one of the few interviews he gave during AMC Entertainment’s 2021 white-knuckle, CEO Adam Aron welcomed the reopening of New York City and shared his thoughts on the “Reddit rally”.
In a conversation with CNBC (watch the full segment above) on Friday, he said that advance ticket sales in New York occupied seven of the top 20 spots in the No. 1 exhibitor’s portfolio of more than 500 locations. Illuminating New York and other cities puts 90% of the company’s footprint back into action, albeit with capacity limits required as a safety precaution for Covid-19.
In all, 13 locations in New York City are opening today. “Nothing is more important to us than the opening in New York and Los Angeles,” he said, indicating that it will probably take LA two to four weeks to get the go-ahead from California officials.
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Aron was asked about the long-term prospects for cinemas, given the focus of the studio’s parent companies on streaming and a potentially arduous recovery from Covid. “The way I have lived since last March, when we went from $ 5.5 billion in annual revenue to no revenue, long-term planning for me was a week from Thursday,” he said with a wry smile. “We have been fighting for the very survival of this company. On five different occasions, we ran out of money for six to 12 weeks. But see what we have achieved. “
Asked about the experience of seeing AMC’s shares rise due to Reddit-based trading, along with stocks like GameStop, Aron declined to comment in detail on the motivations of retail traders. He said the “incredible irony of it all” is that eight months of frantic fundraising had been 99% completed before Reddit’s rise, which helped AMC reduce its debt by $ 600 million. AMC raised $ 2.2 billion in cash and another $ 1.5 billion in grants from creditors and homeowners between April 2020 and January 2021.
If AMC would need additional liquidity, he said: “We haven’t decided yet. We know that we have enough money in our bank now to last a long time if we see a recovery, even if partial, of the film industry this summer. “
Aron sees the Reddit rally as a validation of his company’s heritage and core business. “What I find so attractive about this Reddit phenomenon is the affection and loyalty that Americans have across the country to AMC, to go to the movies, to see movies in theaters,” he said. “You are seeing millions and millions of people coming together to save AMC.”
The Reddit wave has brought significant changes to AMC’s ownership. Silver Lake Capital sold its entire stake in the company at a profit of $ 113 million. The Wanda Group of China had its position diluted after the approval of the issuance of new shares of AMC as a measure of survival of the pandemic.
Wanda’s stake is about 44 million shares – which was worth about 50% of the company six months ago, Aron said, but only about 10% today. Contrary to the perception that the conglomerate has taken a big step back from AMC, Aron said that Wanda has sold only about 2 million shares in the past two years.
Aron’s comments came after AMC Entertainment said at the end of last month that it was giving Aron and other executives “extra special incentive cash bonuses” to recognize the challenge they faced in driving the company on a roller coaster. financial crisis in the last pandemic year. Aron will receive $ 3.75 million as part of the payments from an authorized $ 8.3 million pot.
At the end of the day, AMC said in its proxy that Aron’s total compensation for 2020 had grown to $ 20.9 million, including a salary of $ 1.1 million, bonds and $ 14.8 million in shares. In 2019, his total package was $ 9.7 million.