TORONTO -- Theatre operator Cineplex Inc. says the COVID-19 pandemic has had a "material negative effect" on its operations and resulted in a $178.4-million loss in the first quarter.

The company's shares declined as much as 21 per cent in early Tuesday trading on the Toronto Stock Exchange.

The Toronto-based company says in delayed results that it lost $2.82 per diluted share for the three months ended March 31, compared with a loss of 12 cents per share or $7.36 million a year earlier.

Revenues decreased 22.4 per cent to $282.8 million from $364.6 million as attendance plunged to 10.7 million from nearly 15 million.

The movie chain with 1,687 screens at 164 locations across Canada went dark March 16.

International movie theatre chain Cineworld PLC called off its deal to buy Cineplex for $2.8 billion earlier this month but the Canadian firm vows to sue over damages.

Cineplex says it was in compliance with all financial covenants as of March 31 but expects "a potential breach" of covenants within the next two quarters.

Editor’s Note: An earlier story on BNNBloomberg.ca incorrectly stated Cineplex had secured $250 million in new funding from its lenders. In fact, Cineplex is required to arrange $250 million in financing to receive extended covenant relief from its lenders. BNN Bloomberg regrets the error.

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