(Bloomberg) -- AMC Entertainment Holdings Inc. is cutting the target pay of Chief Executive Officer Adam Aron by 25% this year as a result of the theater chain’s 2023 financial performance.

The board and Aron agreed to the reduction in the wake of AMC’s results in 2023, which was “not a good year for our shareholders,” the CEO said on a conference call Wednesday with analysts. The stock fell 85% last year.

Earlier, AMC reported fourth-quarter profit that missed analysts’ estimates — underscoring the company’s shaky finances since the pandemic. Earnings before interest, taxes, depreciation and amortization came to $42.5 million, missing the $46.7 million analysts were forecasting.

Shares of AMC, based in Leawood, Kansas, were down 9.2% to $4.53 in late trading. 

Higher interest payments increased the company’s cash burn in the period, Bloomberg Intelligence analyst Geetha Ranganathan wrote after the results came out.

“This dampens an already dim 2024 outlook” she said, adding the company might have to issue more shares to raise money.

Read More: Hollywood Banks on ‘Dune: Part Two’ to Revive Blockbuster Cinema

S&P Global Ratings has a CCC+ junk designation on AMC, with a negative outlook, reflecting “its substantial debt burden” and expectations that revenue will fall 8% to 9% this year because of a limited slate of film releases from Hollywood studios this year.

The company, which carries long-term debt and lease obligations of $8.73 billion, has skirted insolvency in the wake of the Covid-19 pandemic through share sales and other maneuvers.

Fourth-quarter sales rose 12% $1.1 billion, fueled by two concert movies — Taylor Swift: The Eras Tour and Renaissance: A Film by Beyoncé. That beat analysts’ estimates of $1.05 billion. The company reported a loss of 54 cents a share, excluding some items, less than the 67-cent loss seen by analysts.

Fueled by retail investors at the height of the pandemic, AMC shares briefly traded over $450 in June 2021, giving Aron the opportunity to raise money. The CEO, whose pay topped $23.7 million in 2022, also sold the majority of the stock he held before the pandemic. 

On the call, Aron said he “believes that the box office will start to strengthen again as soon as this coming month” with the March 1 release of Dune: Part Two from Warner Bros. and Legendary Entertainment. 

The company raised about $325.5 million through the sale of 40 million shares last September, a move that it said would address a cash crunch as the movie-theater industry rebounds. 

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