AMC Networks Inc. Reports Second Quarter 2024 Results
AMC Networks Inc. (NASDAQ: AMCX) reported Q2 2024 financial results, highlighting strategic progress in programming, partnerships, and profitability. Key developments include:
1. A new content licensing agreement with Netflix for 15 AMC branded shows.
2. A licensing partnership with Sky for The Walking Dead Universe in the UK.
3. Inclusion in Optimum's new Entertainment TV package.
4. Price increases for Acorn TV and HIDIVE streaming services.
Financial highlights:
- Net revenues: $626 million (8% decrease)
- Streaming revenues: $150 million (9% increase)
- Operating income: $11 million
- Adjusted Operating Income: $153 million (24% margin)
- Diluted EPS: $(0.66)
- Adjusted EPS: $1.24
- Free Cash Flow: $95 million
The company remains focused on generating strong free cash flow and is on track to meet its full-year guidance.
AMC Networks Inc. (NASDAQ: AMCX) ha riportato i risultati finanziari del secondo trimestre del 2024, evidenziando progressi strategici nella programmazione, nelle partnership e nella redditività. I principali sviluppi includono:
1. Un nuovo accordo di licenza per contenuti con Netflix per 15 show a marchio AMC.
2. Una partnership di licenza con Sky per l'Universo di The Walking Dead nel Regno Unito.
3. Inclusione nel nuovo pacchetto di intrattenimento TV di Optimum.
4. Aumenti di prezzo per i servizi di streaming Acorn TV e HIDIVE.
Aspetti finanziari salienti:
- Ricavi netti: 626 milioni di dollari (diminuzione dell'8%)
- Ricavi da streaming: 150 milioni di dollari (in aumento del 9%)
- Utile operativo: 11 milioni di dollari
- Utile operativo rettificato: 153 milioni di dollari (margine del 24%)
- EPS diluito: $(0.66)
- EPS rettificato: $1.24
- Flusso di cassa libero: 95 milioni di dollari
L'azienda rimane focalizzata sulla generazione di un forte flusso di cassa libero ed è sulla buona strada per raggiungere le previsioni di fine anno.
AMC Networks Inc. (NASDAQ: AMCX) reportó los resultados financieros del segundo trimestre de 2024, destacando los avances estratégicos en programación, asociaciones y rentabilidad. Los desarrollos clave incluyen:
1. Un nuevo acuerdo de licencia de contenido con Netflix para 15 programas de la marca AMC.
2. Una asociación de licencia con Sky para el Universo de The Walking Dead en el Reino Unido.
3. Inclusión en el nuevo paquete de TV de entretenimiento de Optimum.
4. Incrementos de precios para los servicios de streaming Acorn TV y HIDIVE.
Aspectos financieros destacados:
- Ingresos netos: 626 millones de dólares (disminución del 8%)
- Ingresos por streaming: 150 millones de dólares (aumento del 9%)
- Ingresos operativos: 11 millones de dólares
- Ingresos operativos ajustados: 153 millones de dólares (margen del 24%)
- EPS diluido: $(0.66)
- EPS ajustado: $1.24
- Flujo de caja libre: 95 millones de dólares
La empresa sigue centrada en generar un fuerte flujo de caja libre y está en camino de cumplir sus previsiones anuales.
AMC 네트웍스 Inc. (NASDAQ: AMCX)는 2024년 2분기 재무 결과를 발표하며 프로그램, 파트너십 및 수익성 측면에서 전략적 진전을 강조했습니다. 주요 발전 사항은 다음과 같습니다:
1. AMC 브랜드의 15개 프로그램에 대한 Netflix와의 새로운 콘텐츠 라이선스 계약.
2. 영국에서의 The Walking Dead 유니버스에 대한 Sky와의 라이선스 파트너십.
3. Optimum의 새로운 엔터테인먼트 TV 패키지에 포함.
4. Acorn TV와 HIDIVE 스트리밍 서비스의 가격 인상.
재무 하이라이트:
- 순수익: 6억 2천6백만 달러 (8% 감소)
- 스트리밍 수익: 1억 5천만 달러 (9% 증가)
- 영업 이익: 1천1백만 달러
- 조정된 운영 이익: 1억 5천3백만 달러 (24% 마진)
- 희석 EPS: $(0.66)
- 조정 EPS: $1.24
- 자유 현금 흐름: 9천5백만 달러
회사는 강력한 자유 현금 흐름을 창출하는 데 집중하고 있으며 연간 지침을 준수할 수 있는 순조로운 경로에 있습니다.
AMC Networks Inc. (NASDAQ: AMCX) a annoncé les résultats financiers du deuxième trimestre 2024, mettant en avant des avancées stratégiques en matière de programmation, de partenariats et de rentabilité. Les principaux développements comprennent :
1. Un nouvel accord de licence de contenu avec Netflix pour 15 émissions sous la marque AMC.
2. Un partenariat de licence avec Sky pour l'Univers de The Walking Dead au Royaume-Uni.
3. Inclusion dans le nouveau forfait de télévision de divertissement d'Optimum.
4. Augmentations de prix pour les services de streaming Acorn TV et HIDIVE.
Points financiers clés :
- Revenus nets : 626 millions de dollars (diminution de 8 %)
- Revenus de streaming : 150 millions de dollars (augmentation de 9 %)
- Résultat d'exploitation : 11 millions de dollars
- Résultat d'exploitation ajusté : 153 millions de dollars (marge de 24 %)
- EPS dilué : $(0.66)
- EPS ajusté : $1.24
- Flux de trésorerie libre : 95 millions de dollars
La société reste concentrée sur la génération d'un solide flux de trésorerie libre et est en bonne voie pour atteindre ses prévisions annuelles.
AMC Networks Inc. (NASDAQ: AMCX) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht und strategische Fortschritte bei Programmierung, Partnerschaften und Rentabilität hervorgehoben. Zu den wichtigen Entwicklungen gehören:
1. Ein neuer Lizenzvertrag für Inhalte mit Netflix für 15 AMC-markierte Shows.
2. Eine Lizenzpartnerschaft mit Sky für das The Walking Dead-Universum im Vereinigten Königreich.
3. Aufnahme in das neue Unterhaltung-TV-Paket von Optimum.
4. Preiserhöhungen für die Streaming-Dienste Acorn TV und HIDIVE.
Finanzielle Höhepunkte:
- Nettoerlöse: 626 Millionen USD (Rückgang um 8%)
- Streaming-Erträge: 150 Millionen USD (Anstieg um 9%)
- Betriebsergebnis: 11 Millionen USD
- Bereinigtes Betriebsergebnis: 153 Millionen USD (24% Marge)
- Verwässertes EPS: $(0.66)
- Bereinigtes EPS: $1.24
- Freier Cashflow: 95 Millionen USD
Das Unternehmen bleibt darauf fokussiert, einen starken freien Cashflow zu generieren und ist auf dem richtigen Weg, seine Jahresprognose zu erreichen.
- New content licensing agreement with Netflix for 15 AMC branded shows
- Licensing partnership with Sky for The Walking Dead Universe in the UK
- Streaming revenues increased 9% to $150 million
- Streaming subscribers increased 5% to 11.6 million
- Successfully implemented price increases for Acorn TV and HIDIVE with minimal churn
- Free Cash Flow of $95 million
- On track to meet full-year free cash flow guidance
- Net revenues decreased 8% to $626 million
- Operating income decreased 89.8% to $11 million
- Adjusted Operating Income decreased 13.6% to $153 million
- Diluted EPS decreased from $1.60 to $(0.66)
- Adjusted EPS decreased 38.6% to $1.24
- Domestic Operations revenues decreased 7% to $538 million
- Advertising revenues decreased 11% to $149 million due to linear ratings declines and challenging ad market
- $97 million in impairment and other charges, including $68 million goodwill impairment at AMCNI and $29 million long-lived asset impairment at BBCA
Insights
AMC Networks' Q2 2024 results reveal a mixed financial picture. While the company reported
The impairment charges of
On a positive note, the new content licensing agreement with Netflix and the partnership with Sky in the UK demonstrate AMC's efforts to monetize its content library and expand its reach. These strategic moves could potentially offset some of the declines in traditional revenue streams.
AMC Networks' Q2 results highlight the ongoing transition in the media landscape. The company's focus on streaming is paying off, with a
The decline in advertising revenues (
The new partnerships, particularly the Netflix deal for 15 AMC branded shows, demonstrate the company's ability to leverage its content library in the evolving streaming ecosystem. This could provide a significant revenue boost and increased visibility for AMC's content.
The launch of AMC Reality on ITVX in the UK shows the company's efforts to expand its international footprint and diversify its content offerings. These strategic moves could help offset challenges in traditional linear TV and position AMC for future growth in the digital media space.
AMC Networks' Q2 2024 results present a complex investment case. The company's ability to generate strong free cash flow (
The company's strategic initiatives, such as the Netflix deal and Sky partnership, show promise in adapting to the changing media landscape. These could potentially create new revenue streams and enhance the value of AMC's content library.
Investors should closely monitor the performance of AMC's streaming services, as this segment shows growth potential. The
However, the impairment charges and declining operating income highlight ongoing challenges. The company's ability to manage costs and improve profitability in its traditional segments will be crucial. The recent convertible notes offering and repurchase of senior notes demonstrate active management of the company's capital structure, which could impact future financial flexibility.
NEW YORK, Aug. 09, 2024 (GLOBE NEWSWIRE) -- AMC Networks Inc. ("AMC Networks" or the "Company") (NASDAQ: AMCX) today reported financial results for the second quarter ended June 30, 2024.
Chief Executive Officer Kristin Dolan said: "AMC Networks continues to find opportunities in a strategic plan built around programming, partnerships and profitability. Key to our plan is the creation and curation of celebrated films and series, and making them available to audiences everywhere, including through an exciting new branded content licensing agreement with Netflix. In the first half of 2024, we’ve made significant progress against our strategic priority of generating strong free cash flow, and we’re well on our way to achieving our free cash flow guidance for the full year."
Operational Highlights:
- Expanded our longstanding relationship with Netflix by striking an innovative deal to strategically curate and window prior seasons of 15 AMC branded shows on their platform, launching on August 19th.
- Entered into a new licensing partnership with Sky, making Sky the new home of The Walking Dead Universe in the UK.
- Continued participation in new and innovative internet-delivered skinny bundles including the inclusion of our AMC, We TV, BBCA, BBC News, Sundance and IFC networks in Optimum's new Entertainment TV package available on Optimum Stream.
- Successfully implemented price increases for two of our targeted streaming services: Acorn TV and HIDIVE with an insignificant impact to churn due to highly-engaged, brand-loyal subscriber bases.
- AMC Reality, a branded offering on ITVX, the UK’s largest AVOD platform, launched May 30th joining AMC Stories which launched on ITVX on April 8th.
- Greenlit the third series in the expanding Anne Rice Immortal Universe, a drama for AMC and AMC+ focused on a secretive society called The Talamasca, slated for a 2025 premiere.
- Announced a new series from AMC Studios for AMC and AMC+, set inside the bubble of Silicon Valley, from writer and showrunner Jonathan Glatzer of Succession, Bad Sisters, and Better Call Saul fame.
Financial Highlights – Second Quarter Ended June 30, 2024:
- Net cash provided by operating activities of
$104 million ; Free Cash Flow(1) of$95 million . - Operating income of
$11 million included impairment and other charges of$97 million in the second quarter; Adjusted Operating Income(1) of$153 million , with a margin of24% . - Net revenues of
$626 million decreased8% from the prior year. Excluding$20 million of revenues in the prior year related to the return of rights from Hulu,$19 million of revenues in the prior year related to 25/7 Media (which we divested on December 29, 2023) and$13 million of revenues in the current period related to a one-time adjustment payment at AMCNI, net revenues decreased4% .- Streaming revenues of
$150 million increased9% from the prior year.
- Streaming revenues of
- Diluted EPS of
$(0.66) ; Adjusted EPS(1) of$1.24 .
Dollars in thousands, except per share amounts | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||
Net Revenues | $ | 625,934 | $ | 678,628 | (7.8 | )% | $ | 1,222,395 | $ | 1,396,075 | (12.4 | )% | |||||||
Operating Income | $ | 10,788 | $ | 105,701 | (89.8 | )% | $ | 120,966 | $ | 279,005 | (56.6 | )% | |||||||
Adjusted Operating Income | $ | 152,807 | $ | 176,777 | (13.6 | )% | $ | 301,931 | $ | 392,540 | (23.1 | )% | |||||||
Diluted Earnings (Loss) Per Share | $ | (0.66 | ) | $ | 1.60 | n/m | $ | 0.37 | $ | 3.97 | n/m | ||||||||
Adjusted Earnings Per Share | $ | 1.24 | $ | 2.02 | (38.6 | )% | $ | 2.40 | $ | 4.64 | (48.3 | )% | |||||||
Net cash provided by operating activities | $ | 104,403 | $ | 157,566 | (33.7 | )% | $ | 255,272 | $ | 25,047 | n/m | ||||||||
Free Cash Flow | $ | 95,165 | $ | 147,614 | (35.5 | )% | $ | 239,314 | $ | 3,597 | n/m | ||||||||
(1) See page 5 of this earnings release for a discussion of non-GAAP financial measures used in this release. This discussion includes the definition of Adjusted Operating Income, Adjusted EPS and Free Cash Flow.
Segment Results:
(dollars in thousands)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | |||||||||||||||||
Net Revenues: | ||||||||||||||||||||||
Domestic Operations | $ | 538,291 | $ | 581,819 | (7.5 | )% | $ | 1,062,517 | $ | 1,193,673 | (11.0 | )% | ||||||||||
International | 90,095 | 99,304 | (9.3 | )% | 165,700 | 207,376 | (20.1 | )% | ||||||||||||||
Inter-segment Eliminations | (2,452 | ) | (2,495 | ) | 1.7 | % | (5,822 | ) | (4,974 | ) | (17.0 | )% | ||||||||||
Total Net Revenues | $ | 625,934 | $ | 678,628 | (7.8 | )% | $ | 1,222,395 | $ | 1,396,075 | (12.4 | )% | ||||||||||
Operating Income (Loss): | ||||||||||||||||||||||
Domestic Operations | $ | 102,735 | $ | 162,530 | (36.8 | )% | $ | 244,752 | $ | 362,018 | (32.4 | )% | ||||||||||
International | (43,795 | ) | (11,705 | ) | (274.2 | )% | (35,186 | ) | 2,437 | n/m | ||||||||||||
Corporate / Inter-segment Eliminations | (48,152 | ) | (45,124 | ) | (6.7 | )% | (88,600 | ) | (85,450 | ) | (3.7 | )% | ||||||||||
Total Operating Income | $ | 10,788 | $ | 105,701 | (89.8 | )% | $ | 120,966 | $ | 279,005 | (56.6 | )% | ||||||||||
Adjusted Operating Income (Loss): | ||||||||||||||||||||||
Domestic Operations | $ | 155,348 | $ | 184,806 | (15.9 | )% | $ | 317,667 | $ | 404,194 | (21.4 | )% | ||||||||||
International | 29,265 | 19,186 | 52.5 | % | 42,665 | 40,323 | 5.8 | % | ||||||||||||||
Corporate / Inter-segment Eliminations | (31,806 | ) | (27,215 | ) | (16.9 | )% | (58,401 | ) | (51,977 | ) | (12.4 | )% | ||||||||||
Total Adjusted Operating Income | $ | 152,807 | $ | 176,777 | (13.6 | )% | $ | 301,931 | $ | 392,540 | (23.1 | )% | ||||||||||
Domestic Operations
Second Quarter Results:
- Domestic Operations revenues decreased
7% from the prior year to$538 million .- Subscription revenues decreased
3% to$323 million , primarily due to declines in the linear subscriber universe, partially offset by an increase in streaming revenues.- Streaming revenues increased
9% to$150 million driven by year-over-year subscriber growth and price increases.- Streaming subscribers increased
5% to 11.6 million as compared to 11.0 million subscribers as of June 30, 2023.
- Streaming subscribers increased
- Affiliate revenues decreased
12% to$172 million , primarily due to basic subscriber declines.
- Streaming revenues increased
- Content licensing revenues decreased
18% to$67 million due to the availability of deliveries in the period. The prior period included$20 million of revenues related to the return of rights from Hulu that resulted in the acceleration of revenue previously anticipated to be recognized in 2024. Excluding prior period revenues associated with the return of rights from Hulu, content licensing revenues increased10% . - Advertising revenues decreased
11% to$149 million due to linear ratings declines and a challenging ad market, partly offset by digital and advanced advertising revenue growth.
- Subscription revenues decreased
- Operating income of
$103 million included a long-lived asset impairment charge related to our BBCA joint venture of$29 million . - Adjusted Operating Income decreased
16% to$155 million , with a margin of29% . The decrease in Adjusted Operating Income was primarily driven by a decrease in revenues, partly offset by continued cost management measures.
International
In 2024, the Company updated the name of its previously titled "International and Other" operating segment to "International" following the divestiture of the 25/7 Media business on December 29, 2023, which was the sole component of the operating segment that comprised “Other.” This update does not constitute a change in segment reporting, but rather an update in name only. Prior period segment information contained in this release includes the results of the 25/7 Media business through the date of divestiture.
Second Quarter Results:
- International revenues decreased
9% from the prior year to$90 million . The prior period included$19 million of content licensing and other revenues related to 25/7 Media, which we divested on December 29, 2023. Additionally, current period advertising revenue included$13 million of revenue related to a one-time adjustment payment. Excluding revenues related to 25/7 Media and the one-time adjustment payment, International revenues decreased4% .- Subscription revenues decreased
13% to$50 million , primarily due to the non-renewal of an AMCNI distribution agreement in the UK that occurred in the fourth quarter of 2023. - Content licensing and other revenues decreased
86% to$3 million due to the sale of our interest in 25/7 Media in December 2023. - Advertising revenues increased
84% to$38 million due to a$13 million one-time adjustment payment and new streaming offerings in the UK. Excluding the one-time adjustment payment, advertising revenues increased18% .
- Subscription revenues decreased
- Operating loss of
$44 million included a goodwill impairment change of$68 million related to AMCNI. - Adjusted Operating Income increased
53% to$29 million . The increase in Adjusted Operating Income was primarily driven by the one-time adjustment payment. 25/7 Media generated$1 million of AOI in the second quarter of 2023. Excluding AOI related to the one-time adjustment payment, International AOI was$16 million , with a margin of21% .
Other Matters
Open Market Repurchases of
In June 2024, the Company repurchased
On June 21, 2024, the Company completed an offering of
Impairment and Other Charges
Impairment and other charges of
During the second quarter of 2024, we determined that the decline in our stock price was an indicator of potential impairment of goodwill. Accordingly, we performed quantitative assessments for all of our reporting units and concluded that the fair value of the AMCNI reporting unit declined to less than its carrying amount. As a result, we recognized an impairment charge of
Stock Repurchase Program & Outstanding Shares
As previously disclosed, the Company's Board of Directors has authorized a program to repurchase up to
As of August 2, 2024, the Company had 32,613,713 shares of Class A Common Stock and 11,484,408 shares of Class B Common Stock outstanding.
Please see the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2024, which will be filed later today, for further details regarding the above matters.
Description of Non-GAAP Measures
Internally, the Company uses net revenues, Adjusted Operating Income (Loss), and Free Cash Flow measures as the most important indicators of its business performance and evaluates management’s effectiveness with specific reference to these indicators.
The Company defines Adjusted Operating Income (Loss), which is a non-GAAP financial measure, as operating income (loss) before share-based compensation expense or benefit, depreciation and amortization, impairment and other charges (including gains or losses on sales or dispositions of businesses), restructuring and other related charges, cloud computing amortization, and including the Company’s proportionate share of adjusted operating income (loss) from majority-owned equity method investees. From time to time, we may exclude the impact of certain events, gains, losses, or other charges (such as significant legal settlements) from AOI that affect our operating performance. Because it is based upon operating income (loss), Adjusted Operating Income (Loss) also excludes interest expense (including cash interest expense) and other non-operating income and expense items. The Company believes that the exclusion of share-based compensation expense or benefit allows investors to better track the performance of the various operating units of the business without regard to the effect of the settlement of an obligation that is not expected to be made in cash.
The Company believes that Adjusted Operating Income (Loss) is an appropriate measure for evaluating the operating performance of the business segments and the Company on a consolidated basis. Adjusted Operating Income (Loss) and similar measures with similar titles are common performance measures used by investors, analysts, and peers to compare performance in the industry. Adjusted Operating Income (Loss) should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), and other measures of performance presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Since Adjusted Operating Income (Loss) is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. For a reconciliation of operating income (loss) to Adjusted Operating Income (Loss), please see pages 8-9 of this release.
The Company defines Free Cash Flow, which is a non-GAAP financial measure, as net cash provided by operating activities less capital expenditures, all of which are reported in our Consolidated Statement of Cash Flows. The Company believes the most comparable GAAP financial measure of its liquidity is net cash provided by operating activities. The Company believes that Free Cash Flow is useful as an indicator of its overall liquidity, as the amount of Free Cash Flow generated in any period is representative of cash that is available for debt repayment, investment, and other discretionary and non-discretionary cash uses. The Company also believes that Free Cash Flow is one of several benchmarks used by analysts and investors who follow the industry for comparison of its liquidity with other companies in the industry, although the Company’s measure of Free Cash Flow may not be directly comparable to similar measures reported by other companies. For a reconciliation of net cash provided by operating activities to Free Cash Flow, please see page 11 of this release.
The Company defines Adjusted Earnings per Diluted Share (“Adjusted EPS”), which is a non-GAAP financial measure, as earnings per diluted share excluding the following items: amortization of acquisition-related intangible assets; impairment and other charges (including gains or losses on sales or dispositions of businesses); non-cash impairments of goodwill, intangible and fixed assets; restructuring and other related charges; and the impact associated with the modification of debt arrangements, including gains and losses related to the extinguishment of debt; as well as the impact of taxes on the aforementioned items. The Company believes the most comparable GAAP financial measure is earnings per diluted share. The Company believes that Adjusted EPS is one of several benchmarks used by analysts and investors who follow the industry for comparison of its performance with other companies in the industry, although the Company’s measure of Adjusted EPS may not be directly comparable to similar measures reported by other companies. For a reconciliation of earnings per diluted share to Adjusted EPS, please see pages 12-13 of this release.
Forward-Looking Statements
This earnings release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industries in which it operates and the factors described in the Company’s filings with the Securities and Exchange Commission, including the sections entitled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.
Conference Call Information
AMC Networks will host a conference call today at 8:30 a.m. ET to discuss its second quarter 2024 results. To listen to the call, please visit investors.amcnetworks.com.
About AMC Networks Inc.
AMC Networks (Nasdaq: AMCX) is home to many of the greatest stories and characters in TV and film and the premier destination for passionate and engaged fan communities around the world. The company creates and curates celebrated series and films across distinct brands and makes them available to audiences everywhere. Its portfolio includes targeted streaming services AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK and HIDIVE; cable networks AMC, BBC AMERICA (operated through a joint venture with BBC Studios, which includes U.S. distribution and sales responsibilities for BBC News), IFC, SundanceTV and We TV; and film distribution labels IFC Films and RLJE Films. The company also operates AMC Studios, its in-house studio, production and distribution operation behind acclaimed and fan-favorite original franchises including The Walking Dead Universe and the Anne Rice Immortal Universe; and AMC Networks International, its international programming business.
Contacts
Investor Relations | Corporate Communications | ||
Nicholas Seibert | Jim Maiella | ||
nicholas.seibert@amcnetworks.com | jim.maiella@amcnetworks.com | ||
AMC NETWORKS INC. CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Dollars in thousands, except per share amounts) (unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenues, net | $ | 625,934 | $ | 678,628 | $ | 1,222,395 | $ | 1,396,075 | ||||||||
Operating expenses: | ||||||||||||||||
Technical and operating (excluding depreciation and amortization) | 280,727 | 321,961 | 552,303 | 648,690 | ||||||||||||
Selling, general and administrative | 208,176 | 194,298 | 397,057 | 379,904 | ||||||||||||
Depreciation and amortization | 26,493 | 25,745 | 52,319 | 51,620 | ||||||||||||
Impairment and other charges | 96,819 | 24,882 | 96,819 | 24,882 | ||||||||||||
Restructuring and other related charges | 2,931 | 6,041 | 2,931 | 11,974 | ||||||||||||
Total operating expenses | 615,146 | 572,927 | 1,101,429 | 1,117,070 | ||||||||||||
Operating income | 10,788 | 105,701 | 120,966 | 279,005 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (43,216 | ) | (38,930 | ) | (76,057 | ) | (76,547 | ) | ||||||||
Interest income | 9,292 | 7,342 | 18,177 | 15,258 | ||||||||||||
Gain on extinguishment of debt, net | 247 | — | 247 | — | ||||||||||||
Miscellaneous, net | 1,493 | 10,140 | (3,697 | ) | 14,729 | |||||||||||
Total other expense | (32,184 | ) | (21,448 | ) | (61,330 | ) | (46,560 | ) | ||||||||
Income (loss) from operations before income taxes | (21,396 | ) | 84,253 | 59,636 | 232,445 | |||||||||||
Income tax expense | (10,893 | ) | (22,155 | ) | (34,542 | ) | (59,054 | ) | ||||||||
Net income (loss) including noncontrolling interests | (32,289 | ) | 62,098 | 25,094 | 173,391 | |||||||||||
Net (income) loss attributable to noncontrolling interests | 3,055 | 8,141 | (8,525 | ) | 458 | |||||||||||
Net income (loss) attributable to AMC Networks' stockholders | $ | (29,234 | ) | $ | 70,239 | $ | 16,569 | $ | 173,849 | |||||||
Net income (loss) per share attributable to AMC Networks' stockholders: | ||||||||||||||||
Basic | $ | (0.66 | ) | $ | 1.60 | $ | 0.37 | $ | 3.98 | |||||||
Diluted | $ | (0.66 | ) | $ | 1.60 | $ | 0.37 | $ | 3.97 | |||||||
Weighted average common shares: | ||||||||||||||||
Basic | 44,466 | 43,842 | 44,267 | 43,702 | ||||||||||||
Diluted | 44,466 | 43,900 | 45,443 | 43,835 |
AMC NETWORKS INC. SUPPLEMENTAL FINANCIAL DATA (Dollars in thousands) (Unaudited) | ||||||||||||||
Three Months Ended June 30, 2024 | ||||||||||||||
Domestic Operations | International | Corporate / Inter-segment Eliminations | Consolidated | |||||||||||
Operating income (loss) | $ | 102,735 | $ | (43,795 | ) | $ | (48,152 | ) | $ | 10,788 | ||||
Share-based compensation expenses | 2,748 | 905 | 4,804 | 8,457 | ||||||||||
Depreciation and amortization | 10,800 | 4,151 | 11,542 | 26,493 | ||||||||||
Restructuring and other related charges | 2,931 | — | — | 2,931 | ||||||||||
Impairment and other charges | 28,815 | 68,004 | — | 96,819 | ||||||||||
Cloud computing amortization | 3,283 | — | — | 3,283 | ||||||||||
Majority owned equity investees AOI | 4,036 | — | — | 4,036 | ||||||||||
Adjusted operating income (loss) | $ | 155,348 | $ | 29,265 | $ | (31,806 | ) | $ | 152,807 |
Three Months Ended June 30, 2023 | ||||||||||||||
Domestic Operations | International | Corporate / Inter-segment Eliminations | Consolidated | |||||||||||
Operating income (loss) | $ | 162,530 | $ | (11,705 | ) | $ | (45,124 | ) | $ | 105,701 | ||||
Share-based compensation expenses | 2,192 | 846 | 4,610 | 7,648 | ||||||||||
Depreciation and amortization | 11,663 | 4,902 | 9,180 | 25,745 | ||||||||||
Restructuring and other related charges | 3,905 | 261 | 1,875 | 6,041 | ||||||||||
Impairment and other charges | — | 24,882 | — | 24,882 | ||||||||||
Cloud computing amortization | 5 | — | 2,244 | 2,249 | ||||||||||
Majority owned equity investees AOI | 4,511 | — | — | 4,511 | ||||||||||
Adjusted operating income (loss) | $ | 184,806 | $ | 19,186 | $ | (27,215 | ) | $ | 176,777 |
AMC NETWORKS INC. SUPPLEMENTAL FINANCIAL DATA (Dollars in thousands) (Unaudited) | ||||||||||||||
Six Months Ended June 30, 2024 | ||||||||||||||
Domestic Operations | International | Corporate / Inter-segment Eliminations | Consolidated | |||||||||||
Operating income (loss) | $ | 244,752 | $ | (35,186 | ) | $ | (88,600 | ) | $ | 120,966 | ||||
Share-based compensation expenses | 5,978 | 1,671 | 6,883 | 14,532 | ||||||||||
Depreciation and amortization | 20,827 | 8,176 | 23,316 | 52,319 | ||||||||||
Restructuring and other related charges | 2,931 | — | — | 2,931 | ||||||||||
Impairment and other charges | 28,815 | 68,004 | — | 96,819 | ||||||||||
Cloud computing amortization | 6,831 | — | — | 6,831 | ||||||||||
Majority owned equity investees AOI | 7,533 | — | — | 7,533 | ||||||||||
Adjusted operating income (loss) | $ | 317,667 | $ | 42,665 | $ | (58,401 | ) | $ | 301,931 |
Six Months Ended June 30, 2023 | |||||||||||||
Domestic Operations | International | Corporate / Inter-segment Eliminations | Consolidated | ||||||||||
Operating income (loss) | $ | 362,018 | $ | 2,437 | $ | (85,450 | ) | $ | 279,005 | ||||
Share-based compensation expenses | 6,639 | 1,685 | 4,969 | 13,293 | |||||||||
Depreciation and amortization | 23,517 | 9,673 | 18,430 | 51,620 | |||||||||
Restructuring and other related charges | 4,723 | 1,646 | 5,605 | 11,974 | |||||||||
Impairment and other charges | — | 24,882 | — | 24,882 | |||||||||
Cloud computing amortization | 10 | — | 4,469 | 4,479 | |||||||||
Majority owned equity investees AOI | 7,287 | — | — | 7,287 | |||||||||
Adjusted operating income (loss) | $ | 404,194 | $ | 40,323 | $ | (51,977 | ) | $ | 392,540 |
AMC NETWORKS INC. SUPPLEMENTAL FINANCIAL DATA (Dollars in thousands) (Unaudited) | |||
Capitalization | June 30, 2024 | ||
Cash and cash equivalents | $ | 802,553 | |
Credit facility debt (a) | $ | 416,875 | |
Senior notes (a) | 2,003,760 | ||
Total debt | $ | 2,420,635 | |
Net debt | $ | 1,618,082 | |
Finance leases | 16,766 | ||
Net debt and finance leases | $ | 1,634,848 | |
Twelve Months Ended June 30, 2024 | |||
Operating Income (GAAP) | $ | 230,373 | |
Share-based compensation expense | 26,904 | ||
Depreciation and amortization | 108,101 | ||
Restructuring and other related charges | 18,744 | ||
Impairment and other charges | 168,626 | ||
Cloud computing amortization | 12,895 | ||
Majority owned equity investees | 13,852 | ||
Adjusted Operating Income (Non-GAAP) | $ | 579,495 | |
Leverage ratio (b) | 2.8 | x | |
(a) Represents the aggregate principal amount of the debt.
(b) Represents net debt and finance leases divided by Adjusted Operating Income for the twelve months ended June 30, 2024. This ratio differs from the calculation contained in the Company's credit facility. No adjustments have been made for consolidated entities that are not
AMC NETWORKS INC. SUPPLEMENTAL FINANCIAL DATA (Dollars in thousands) (Unaudited) | ||||||||||||||||
Free Cash Flow (1) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net cash provided by operating activities | $ | 104,403 | $ | 157,566 | $ | 255,272 | $ | 25,047 | ||||||||
Less: capital expenditures | (9,238 | ) | (9,952 | ) | (15,958 | ) | (21,450 | ) | ||||||||
Free Cash Flow | $ | 95,165 | $ | 147,614 | $ | 239,314 | $ | 3,597 |
Supplemental Cash Flow Information | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Restructuring initiatives (2) | $ | (3,282 | ) | $ | (31,620 | ) | $ | (8,103 | ) | $ | (88,506 | ) | ||||
Distributions to noncontrolling interests | (15,352 | ) | (15,585 | ) | (16,520 | ) | (27,087 | ) | ||||||||
(1) Free Cash Flow includes the impact of certain cash receipts or payments (such as restructuring initiatives, significant legal settlements, and programming write-offs) that affect period-to-period comparability.
2) Restructuring initiatives includes cash payments of
AMC NETWORKS INC. SUPPLEMENTAL FINANCIAL DATA (Dollars in thousands, except per share amounts) (Unaudited) | ||||||||||||||||||||
Adjusted Earnings Per Share | ||||||||||||||||||||
Three Months Ended June 30, 2024 | ||||||||||||||||||||
Income (loss) from operations before income taxes | Income tax (expense) benefit | Net (income) loss attributable to noncontrolling interests | Net income (loss) attributable to AMC Networks' stockholders | Diluted EPS attributable to AMC Networks' stockholders | ||||||||||||||||
Reported Results (GAAP) | $ | (21,396 | ) | $ | (10,893 | ) | $ | 3,055 | $ | (29,234 | ) | $ | (0.66 | ) | ||||||
Adjustments: | ||||||||||||||||||||
Amortization of acquisition-related intangible assets | 9,608 | (2,460 | ) | (962 | ) | 6,186 | 0.14 | |||||||||||||
Restructuring and other related charges | 2,931 | (784 | ) | — | 2,147 | 0.05 | ||||||||||||||
Impairment and other charges | 96,819 | (3,801 | ) | (14,616 | ) | 78,402 | 1.76 | |||||||||||||
Gain on extinguishment of debt, net | (247 | ) | 66 | — | (181 | ) | — | |||||||||||||
Dilutive income and share basis difference - GAAP vs. Adjusted(1) | 153 | (37 | ) | — | 116 | (0.05 | ) | |||||||||||||
Adjusted Results (Non-GAAP) | $ | 87,868 | $ | (17,909 | ) | $ | (12,523 | ) | $ | 57,436 | $ | 1.24 | ||||||||
(1) For the reconciliation of Adjusted EPS to GAAP EPS, the item “Dilutive income and share basis difference - GAAP vs. Adjusted” represents the impact of the adjustments from a net loss to net income position, which required an adjustment for the interest expense associated with the convertible debt and a change in the dilutive shares outstanding to reflect additional dilutive shares associated with restricted stock units and convertible debt that were considered anti-dilutive on a GAAP basis.
Three Months Ended June 30, 2023 | |||||||||||||||||
Income from operations before income taxes | Income tax expense | Net (income) loss attributable to noncontrolling interests | Net income attributable to AMC Networks' stockholders | Diluted EPS attributable to AMC Networks' stockholders | |||||||||||||
Reported Results (GAAP) | $ | 84,253 | $ | (22,155 | ) | $ | 8,141 | $ | 70,239 | $ | 1.60 | ||||||
Adjustments: | |||||||||||||||||
Amortization of acquisition-related intangible assets | 10,469 | (2,104 | ) | (1,704 | ) | 6,661 | 0.15 | ||||||||||
Restructuring and other related charges | 6,041 | (1,433 | ) | (90 | ) | 4,518 | 0.11 | ||||||||||
Impairment and other charges | 24,882 | (2,175 | ) | (15,949 | ) | 6,758 | 0.15 | ||||||||||
Gain on extinguishment of debt, net | 605 | (147 | ) | — | 458 | 0.01 | |||||||||||
Adjusted Results (Non-GAAP) | $ | 126,250 | $ | (28,014 | ) | $ | (9,602 | ) | $ | 88,634 | $ | 2.02 |
AMC NETWORKS INC. SUPPLEMENTAL FINANCIAL DATA (Dollars in thousands, except per share amounts) (Unaudited) | |||||||||||||||||||
Adjusted Earnings Per Share | |||||||||||||||||||
Six Months Ended June 30, 2024 | |||||||||||||||||||
Income (loss) from operations before income taxes | Income tax (expense) benefit | Net (income) loss attributable to noncontrolling interests | Net income (loss) attributable to AMC Networks' stockholders | Diluted EPS attributable to AMC Networks' stockholders | |||||||||||||||
Reported Results (GAAP) (1) | $ | 59,789 | $ | (34,579 | ) | $ | (8,525 | ) | $ | 16,685 | $ | 0.37 | |||||||
Adjustments: | |||||||||||||||||||
Amortization of acquisition-related intangible assets | 18,164 | (4,333 | ) | (1,924 | ) | 11,907 | 0.26 | ||||||||||||
Restructuring and other related charges | 2,931 | (784 | ) | — | 2,147 | 0.05 | |||||||||||||
Impairment and other charges | 96,819 | (3,801 | ) | (14,616 | ) | 78,402 | 1.72 | ||||||||||||
Gain on extinguishment of debt, net | (247 | ) | 66 | — | (181 | ) | — | ||||||||||||
Adjusted Results (Non-GAAP) | $ | 177,456 | $ | (43,431 | ) | $ | (25,065 | ) | $ | 108,960 | $ | 2.40 | |||||||
(1) Includes the required adjustment for interest expense associated with the convertible debt.
Six Months Ended June 30, 2023 | |||||||||||||||||
Income from operations before income taxes | Income tax expense | Net (income) loss attributable to noncontrolling interests | Net income attributable to AMC Networks' stockholders | Diluted EPS attributable to AMC Networks' stockholders | |||||||||||||
Reported Results (GAAP) | $ | 232,445 | $ | (59,054 | ) | $ | 458 | $ | 173,849 | $ | 3.97 | ||||||
Adjustments: | |||||||||||||||||
Amortization of acquisition-related intangible assets | 20,887 | (4,175 | ) | (3,409 | ) | 13,303 | 0.30 | ||||||||||
Restructuring and other related charges | 11,974 | (2,777 | ) | (204 | ) | 8,993 | 0.21 | ||||||||||
Impairment and other charges | 24,882 | (2,175 | ) | (15,949 | ) | 6,758 | 0.15 | ||||||||||
Gain on extinguishment of debt, net | 605 | (147 | ) | — | 458 | 0.01 | |||||||||||
Adjusted Results (Non-GAAP) | $ | 290,793 | $ | (68,328 | ) | $ | (19,104 | ) | $ | 203,361 | $ | 4.64 |
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