Movie-theater chain AMC Entertainment disclosed that it will restate its results for the fiscal year ended March 30, 2006, for the first three quarters of fiscal 2006, and for the first three quarters of fiscal 2007.
In a regulatory filing, AMC elaborated that the revisions are primarily due to errors associated with the mark-to-market accounting and classification as liabilities of certain management-purchased shares and stock-option awards, as well as put and call rights on shares held by management.
The company is privately held. However, it has some debt that is traded publicly, the Associated Press pointed out. In addition, parent company Marquee Holdings plans an initial public offering later this year.
According to AMC, the restatements will increase the company’s net loss in fiscal 2006 by about $2.1 million.
For fiscal 2007, stock compensation expense will increase by $223,000 for the 13-week period ended June 29, 2006; increase by $188,000 for the 13 weeks ended September 28, 2006; and decrease by $411,000 for the 13 weeks ended December 28, 2006. As a result, there will be no financial impact for the 39 weeks ended December 28.