AMC Entertainment Holdings Inc.'s board approved the repurchase of up to $100 million of the company's class A common shares over a two-year period.
The repurchases may be made from time to time through open market deals including block purchases, via privately negotiated deals, or otherwise over the next two years at the management's discretion.
The board and senior management "strongly believe that AMC's future prospects are bright and that our company is well positioned to drive revenue and earnings growth over the years ahead," AMC CEO and President Adam Aron said in an Aug. 3 statement. "We do not believe, however, that the current AMC share price properly reflects those future prospects and therefore presents a compelling investment opportunity for the company."
AMC Entertainment's stock plunged after it announced cost-reduction measures on Aug. 1, and warned that it anticipates "a very challenging third quarter."
AMC Entertainment on Aug. 4 posted a second-quarter net loss of $176.5 million, or a loss of $1.35 per share, compared to net earnings of $24.0 million, or 24 cents per share in the year-ago quarter. The second-quarter loss included a $202.6 million pretax impairment charge related to the company's investment in National CineMedia LLC.