AMC Networks Inc. (“AMC Networks” or the “Company”) (NASDAQ: AMCX)
today reported financial results for the third quarter ended
September 30, 2019.
President and Chief Executive Officer Josh Sapan said: “AMC
Networks is well on its way to strategically transforming itself
from a ‘cable channels company’ into a premier content company with
a suite of focused and targeted video entertainment products that
are delivered to viewers on an expanding array of platforms. The
underlying strategic priorities fueling our transformation have
been and continue to be creating and owning great content and
valuable IP, expanding our targeted direct-to-consumer services,
maximizing the long-term value of our traditional linear business
and diversifying our revenue by developing new avenues of content
monetization. Recent successes include our Acorn TV streaming
service surpassing one million subscribers, an outsized presence at
this year’s Emmy Awards with a number of key wins and a recent
agreement with Charter Communications to launch our full suite of
focused streaming services – Acorn TV, Shudder, Sundance Now and
UMC – and our commercial-free AMC Premiere offering on their
Spectrum platform. We are optimizing the value and reach of our
content in a variety of ways and executing on a plan that will
enable us to thrive in a very dynamic and competitive
environment.”
(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
(Loss), Adjusted EPS and Free Cash Flow.
Third quarter net revenues increased 3.1%, or $22 million, to
$719 million over the third quarter of 2018. The increase in net
revenues reflected a decrease of 0.2% at National Networks and an
increase of 20.5% at International and Other. Operating income was
$168 million, an increase of 2.3%, or $4 million, versus the prior
year period. The operating income increase reflected a
decrease of 3.0% at National Networks and a decrease of $5
million in operating loss at International and Other. Adjusted
Operating Income2 was $219 million, an increase of 3.9%, or $8
million, versus the prior year period. The increase in adjusted
operating income reflected a decrease of 1.0% at National Networks
offset by an increase of $6 million at International and Other
versus the prior year period. As discussed in the “Other Matters”
section of the release, results include the impact of the
acquisition of RLJ Entertainment (“RLJE”).
For the nine months ended September 30, 2019, net revenues
increased 3.5%, or $76 million, to $2.275 billion, operating income
decreased 1.1%, or $6 million, to $584 million, and adjusted
operating income increased 4.3%, or $31 million, to $744
million.
Third quarter net income was $117 million ($2.07 per diluted
share), compared with $111 million ($1.93 per diluted share) in the
prior year period. Third quarter Adjusted EPS2 was $132 million
($2.33 per diluted share), compared with $124 million ($2.15 per
diluted share) in the prior year period. The increase in EPS and
adjusted EPS was primarily related to the increase in adjusted
operating income as well as a decrease in income tax expense
partially offset by a decrease in miscellaneous, net.
Net income for the nine months ended September 30, 2019 was $389
million ($6.80 per diluted share), compared with $374 million
($6.31 per diluted share) in the prior year period. Adjusted EPS
for the nine months ended September 30, 2019 was $433 million
($7.57 per diluted share), compared with $401 million ($6.76 per
diluted share) in the prior year period.
For the nine months ended September 30, 2019, net cash provided
by operating activities was $400 million, a decrease of $71 million
versus the prior year period. The decrease was primarily the result
of an increase in tax payments and working capital partially offset
by an increase in adjusted operating income. Free Cash Flow2 for
the nine months ended September 30, 2019 was $318 million, a
decrease of $84 million versus the prior year period. The decrease
primarily reflects the decrease in net cash provided by operating
activities as well as an increase in capital expenditures and
distributions to noncontrolling interests.
(2) 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
(Loss), Adjusted EPS and Free Cash Flow.
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Segment
Results |
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(dollars
in thousands) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
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|
2019 |
|
2018 |
|
Change |
|
2019 |
|
2018 |
|
Change |
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Net Revenues: |
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National Networks |
|
$ |
558,992 |
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$ |
560,321 |
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(0.2 |
%) |
|
$ |
1,779,850 |
|
|
$ |
1,820,638 |
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(2.2 |
%) |
|
International and Other |
|
|
182,839 |
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|
|
151,772 |
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20.5 |
% |
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533,454 |
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409,873 |
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30.2 |
% |
|
Inter-segment
eliminations |
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(23,234 |
) |
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(15,218 |
) |
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n/m |
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|
(38,187 |
) |
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|
(31,428 |
) |
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n/m |
|
Total Net
Revenues |
|
$ |
718,597 |
|
|
$ |
696,875 |
|
|
3.1 |
% |
|
$ |
2,275,117 |
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|
$ |
2,199,083 |
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3.5 |
% |
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Operating Income
(Loss): |
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National Networks |
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$ |
182,479 |
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$ |
188,107 |
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(3.0 |
%) |
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$ |
648,180 |
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$ |
647,965 |
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0.0 |
% |
|
International and Other |
|
|
(11,501 |
) |
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|
(16,749 |
) |
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31.3 |
% |
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|
(52,532 |
) |
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|
(44,899 |
) |
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(17.0 |
%) |
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Inter-segment
eliminations |
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|
(2,540 |
) |
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|
(6,759 |
) |
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n/m |
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(12,090 |
) |
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(13,281 |
) |
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n/m |
|
Total Operating
Income (Loss) |
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$ |
168,438 |
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$ |
164,599 |
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2.3 |
% |
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$ |
583,558 |
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$ |
589,785 |
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(1.1 |
%) |
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Adjusted Operating
Income: |
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National Networks |
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$ |
208,410 |
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$ |
210,417 |
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(1.0 |
%) |
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$ |
721,569 |
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$ |
715,970 |
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0.8 |
% |
|
International and
Other |
|
13,465 |
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|
|
7,511 |
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|
79.3 |
% |
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|
35,237 |
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|
|
10,761 |
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227.5 |
% |
|
Inter-segment
eliminations |
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(2,540 |
) |
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|
(6,759 |
) |
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n/m |
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(12,786 |
) |
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(13,281 |
) |
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n/m |
|
Total Adjusted
Operating Income |
$ |
219,335 |
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$ |
211,169 |
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3.9 |
% |
|
$ |
744,020 |
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$ |
713,450 |
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4.3 |
% |
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National NetworksNational Networks principally
consists of the Company’s five nationally distributed programming
networks, AMC, WE tv, BBC AMERICA, IFC and SundanceTV; and AMC
Studios, the Company’s television production business.
National Networks revenues for the third quarter 2019 were
essentially flat at $559 million, operating income decreased 3.0%
to $182 million, and adjusted operating income decreased 1.0% to
$208 million, all compared to the prior year period.
National Networks revenues for the nine months ended September
30, 2019 decreased 2.2% to $1.780 billion, operating income was
flat at $648 million, and adjusted operating income increased 0.8%
to $722 million, all compared to the prior year period.
Third quarter revenues reflected a 1.1% increase in distribution
revenues to $365 million. The increase in distribution revenues was
attributable to an increase in content licensing revenues partially
offset by a decrease in subscription revenues. Advertising revenues
decreased 2.6% to $194 million. The decrease in advertising
revenues primarily related to lower delivery as well as the timing
and mix of original programming partially offset by higher
pricing.
Third quarter operating income and adjusted operating income
reflected a decrease in revenues and an increase in operating
expenses. The increase in operating expenses was primarily
attributable to higher programming expenses. Programming expenses
reflected an increase due to the timing and mix of original
programming partially offset by a $21 million benefit attributable
to the utilization of certain investment tax credits.
Programming expenses also included charges of $1 million in the
current year period related to the write-off of programming assets,
as compared to charges of $11 million in the prior year period.
Operating income also reflected an increase in restructuring and
other related charges partially offset by a decrease in share-based
compensation expense.
International and OtherInternational and Other
principally consists of AMC Networks International, the Company's
international programming businesses; Global Direct-to-Consumer,
the Company's subscription streaming services, Acorn TV, Shudder,
Sundance Now and UMC (Urban Movie Channel); Levity Entertainment
Group, the Company’s production services and comedy venues
business; and IFC Films, the Company's independent film
distribution business.
International and Other revenues for the third quarter of 2019
increased 20.5% to $183 million, operating loss decreased $5
million to a loss of $12 million, and adjusted operating income
increased $6 million to $13 million, all compared to the prior year
period.
International and Other revenues for the nine months ended
September 30, 2019 increased 30.2% to $533 million, operating loss
increased $8 million to a loss of $53 million, and adjusted
operating income increased $24 million to $35 million, all compared
to the prior year period.
Third quarter revenues primarily reflected $31 million related
to the acquisition of RLJE.
Third quarter operating loss and adjusted operating income
reflected the increase in revenues as well as an increase in
operating expenses. The increase in operating expenses were
primarily attributable to the acquisition of RLJE.
Other Matters
Stock Repurchase Program
As previously disclosed, the Company’s Board of Directors
authorized a program to repurchase up to $1.5 billion of its
outstanding shares of common stock. The Company will determine the
timing and the amount of any repurchases based on its evaluation of
market conditions, share price, and other factors. The stock
repurchase program has no pre-established closing date and may be
suspended or discontinued at any time. During the third quarter,
the Company repurchased approximately 231,000 shares for $12
million. As of October 25, 2019, the Company had $489 million
available under its stock repurchase authorization.
RLJ Entertainment, Inc.
As previously disclosed, in October 2018, the Company acquired a
controlling interest in RLJ Entertainment, Inc. (“RLJE”). During
the third quarter, the Company recorded net revenues, operating
loss and AOI of $31 million, $1 million and $3 million,
respectively, related to RLJE. For the nine months ended September
30, 2019, the Company recorded net revenues, operating loss and AOI
of $79 million, $6 million and $5 million, respectively, related to
RLJE.
Adjusted Operating Income
As previously disclosed, in connection with the acquisition of
RLJE, the Company acquired RLJE’s 64% interest in Agatha Christie
Limited (“ACL”), which manages the intellectual property and
publishing rights based on the author’s works. The Company records
its interest in ACL under the equity method as a component of
Miscellaneous, Net. As a result of the RLJE acquisition, the
Company modified its definition of Adjusted Operating Income to
include majority owned equity investees. For the third quarter, the
Company recorded adjusted operating income of $1 million related to
ACL. For the nine months ended September 30, 2019, the Company
recorded adjusted operating income of $4 million related to
ACL.
Please see the Company’s Form 10-Q for the period ended
September 30, 2019 for further details regarding the above
matters.
Description of Non-GAAP Measures
The Company defines Adjusted Operating Income (Loss), which is a
non-GAAP financial measure, as operating income (loss) before
depreciation and amortization, share-based compensation expense or
benefit, impairment and related charges (including gains or losses
on sales or dispositions of businesses), restructuring and other
related charges, and the Company’s proportionate share of adjusted
operating income (loss) from majority owned equity method
investees. 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.
Internally, the Company uses net revenues and Adjusted Operating
Income (Loss) measures as the most important indicators of its
business performance, and evaluates management’s effectiveness with
specific reference to these indicators. 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 Adjusted Operating Income (Loss) to operating income (loss),
please see page 8 of this release.
The Company defines Free Cash Flow (“Free Cash Flow”), which is
a non-GAAP financial measure, as net cash provided by operating
activities less capital expenditures and cash distributions to
noncontrolling interests, 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 Free Cash Flow to net cash
provided by operating activities, please see page 9 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 related 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 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 Adjusted EPS to earnings per diluted share,
please see pages 10-11 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 third quarter 2019 results. To listen to the
call, visit http://www.amcnetworks.com or dial 877-347-9170, using
the following passcode: 2959218.
About AMC Networks Inc.
AMC Networks owns and operates several of cable television’s
most recognized brands delivering high quality content to audiences
and a valuable platform to distributors and advertisers. The
Company manages its business through two operating segments: (i)
National Networks, which principally includes AMC, WE tv, BBC
AMERICA, IFC and SundanceTV; and AMC Studios, the Company’s
television production business; and (ii) International and Other,
which principally includes AMC Networks International, the
Company’s international programming business; Global
Direct-to-Consumer, the Company's subscription streaming services,
Acorn TV, Shudder, Sundance Now and UMC (Urban Movie Channel);
Levity Entertainment Group, the Company’s production services and
comedy venues business; and IFC Films, the Company's independent
film distribution business. For more information on AMC Networks,
please visit the Company’s website at
http://www.amcnetworks.com.
Contacts |
|
Investor Relations |
Corporate Communications |
Seth Zaslow (646) 273-3766 |
Georgia Juvelis (917) 542-6390 |
seth.zaslow@amcnetworks.com |
georgia.juvelis@amcnetworks.com |
|
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AMC NETWORKS INC.CONSOLIDATED STATEMENTS
OF INCOME(In thousands, except per share
amounts)(unaudited) |
|
|
|
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|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Revenues, net |
$ |
718,597 |
|
|
$ |
696,875 |
|
|
$ |
2,275,117 |
|
|
$ |
2,199,083 |
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|
|
|
|
|
|
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|
Operating expenses: |
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|
|
|
|
|
|
Technical and operating (excluding depreciation and
amortization) |
|
354,992 |
|
|
|
346,398 |
|
|
|
1,080,763 |
|
|
|
1,043,572 |
|
Selling, general and administrative |
|
159,357 |
|
|
|
156,242 |
|
|
|
505,233 |
|
|
|
494,067 |
|
Depreciation and amortization |
|
25,619 |
|
|
|
22,011 |
|
|
|
75,568 |
|
|
|
64,034 |
|
Impairment and related charges |
|
- |
|
|
|
4,486 |
|
|
|
- |
|
|
|
4,486 |
|
Restructuring and other related charges |
|
10,191 |
|
|
|
3,139 |
|
|
|
29,995 |
|
|
|
3,139 |
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|
|
550,159 |
|
|
|
532,276 |
|
|
|
1,691,559 |
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|
|
1,609,298 |
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|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Operating income |
|
168,438 |
|
|
|
164,599 |
|
|
|
583,558 |
|
|
|
589,785 |
|
|
|
|
|
|
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|
|
Other income (expense): |
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|
|
|
|
|
|
Interest expense |
|
(39,621 |
) |
|
|
(38,137 |
) |
|
|
(118,982 |
) |
|
|
(115,607 |
) |
Interest income |
|
4,626 |
|
|
|
5,102 |
|
|
|
13,571 |
|
|
|
15,453 |
|
Miscellaneous, net |
|
(1,490 |
) |
|
|
28,762 |
|
|
|
(16,972 |
) |
|
|
30,989 |
|
|
|
(36,485 |
) |
|
|
(4,273 |
) |
|
|
(122,383 |
) |
|
|
(69,165 |
) |
|
|
|
|
|
|
|
|
Income from operations before
income taxes |
|
131,953 |
|
|
|
160,326 |
|
|
|
461,175 |
|
|
|
520,620 |
|
Income tax expense |
|
(8,727 |
) |
|
|
(43,666 |
) |
|
|
(53,807 |
) |
|
|
(133,092 |
) |
Net income including
noncontrolling interests |
|
123,226 |
|
|
|
116,660 |
|
|
|
407,368 |
|
|
|
387,528 |
|
Net income attributable to
noncontrolling interests |
|
(6,303 |
) |
|
|
(5,403 |
) |
|
|
(18,305 |
) |
|
|
(13,220 |
) |
Net income attributable to AMC
Networks’ stockholders |
$ |
116,923 |
|
|
$ |
111,257 |
|
|
$ |
389,063 |
|
|
$ |
374,308 |
|
|
|
|
|
|
|
|
|
Net income per share
attributable to AMC Networks’ stockholders: |
|
|
|
|
|
|
|
Basic |
$ |
2.09 |
|
|
$ |
1.96 |
|
|
$ |
6.91 |
|
|
$ |
6.40 |
|
Diluted |
$ |
2.07 |
|
|
$ |
1.93 |
|
|
$ |
6.80 |
|
|
$ |
6.31 |
|
|
|
|
|
|
|
|
|
Weighted average common
shares: |
|
|
|
|
|
|
|
Basic |
|
55,847 |
|
|
|
56,875 |
|
|
|
56,339 |
|
|
|
58,519 |
|
Diluted |
|
56,605 |
|
|
|
57,779 |
|
|
|
57,218 |
|
|
|
59,281 |
|
|
|
|
|
|
|
|
|
|
AMC NETWORKS INC.SUPPLEMENTAL FINANCIAL
DATA(Dollars in
thousands)(Unaudited) |
|
|
|
Three Months Ended September 30, 2019 |
|
NationalNetworks |
|
Internationaland Other |
|
Inter-segmenteliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
182,479 |
|
|
$ |
(11,501 |
) |
|
$ |
(2,540 |
) |
|
$ |
168,438 |
|
Share-based compensation expense |
|
11,684 |
|
|
|
2,157 |
|
|
|
- |
|
|
|
13,841 |
|
Depreciation and amortization |
|
8,048 |
|
|
|
17,571 |
|
|
|
- |
|
|
|
25,619 |
|
Restructuring and other related charges |
|
6,199 |
|
|
|
3,992 |
|
|
|
- |
|
|
|
10,191 |
|
Impairment and related charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Majority owned equity investees |
|
- |
|
|
|
1,246 |
|
|
|
- |
|
|
|
1,246 |
|
Adjusted operating income
(loss) |
$ |
208,410 |
|
|
$ |
13,465 |
|
|
$ |
(2,540 |
) |
|
$ |
219,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2018 |
|
NationalNetworks |
|
Internationaland Other |
|
Inter-segmenteliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
188,107 |
|
|
$ |
(16,749 |
) |
|
$ |
(6,759 |
) |
|
$ |
164,599 |
|
Share-based compensation expense |
|
13,860 |
|
|
|
3,074 |
|
|
|
- |
|
|
|
16,934 |
|
Depreciation and amortization |
|
8,450 |
|
|
|
13,561 |
|
|
|
- |
|
|
|
22,011 |
|
Restructuring and other related charges |
|
- |
|
|
|
3,139 |
|
|
|
- |
|
|
|
3,139 |
|
Impairment and related charges |
|
- |
|
|
|
4,486 |
|
|
|
- |
|
|
|
4,486 |
|
Majority owned equity investees |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted operating income
(loss) |
$ |
210,417 |
|
|
$ |
7,511 |
|
|
$ |
(6,759 |
) |
|
$ |
211,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2019 |
|
NationalNetworks |
|
Internationaland Other |
|
Inter-segmenteliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
648,180 |
|
|
$ |
(52,532 |
) |
|
$ |
(12,090 |
) |
|
$ |
583,558 |
|
Share-based compensation expense |
|
41,774 |
|
|
|
8,691 |
|
|
|
- |
|
|
|
50,465 |
|
Depreciation and amortization |
|
24,839 |
|
|
|
50,729 |
|
|
|
- |
|
|
|
75,568 |
|
Restructuring and other related charges |
|
6,776 |
|
|
|
23,915 |
|
|
|
(696 |
) |
|
|
29,995 |
|
Impairment and related charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Majority owned equity investees |
|
- |
|
|
|
4,434 |
|
|
|
- |
|
|
|
4,434 |
|
Adjusted operating income
(loss) |
$ |
721,569 |
|
|
$ |
35,237 |
|
|
$ |
(12,786 |
) |
|
$ |
744,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2018 |
|
NationalNetworks |
|
Internationaland Other |
|
Inter-segmenteliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
647,965 |
|
|
$ |
(44,899 |
) |
|
$ |
(13,281 |
) |
|
$ |
589,785 |
|
Share-based compensation expense |
|
42,647 |
|
|
|
9,359 |
|
|
|
- |
|
|
|
52,006 |
|
Depreciation and amortization |
|
25,358 |
|
|
|
38,676 |
|
|
|
- |
|
|
|
64,034 |
|
Restructuring and other related charges |
|
- |
|
|
|
3,139 |
|
|
|
- |
|
|
|
3,139 |
|
Impairment and related charges |
|
- |
|
|
|
4,486 |
|
|
|
- |
|
|
|
4,486 |
|
Majority owned equity investees |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted operating income
(loss) |
$ |
715,970 |
|
|
$ |
10,761 |
|
|
$ |
(13,281 |
) |
|
$ |
713,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMC NETWORKS INC.SUPPLEMENTAL FINANCIAL
DATA(In
thousands)(Unaudited) |
|
|
Capitalization |
September 30,2019 |
|
|
Cash and cash equivalents |
$ |
773,386 |
|
Credit facility debt (a) |
$ |
740,625 |
|
Senior notes (a) |
|
2,400,000 |
|
Other debt |
|
1,000 |
|
Total debt |
$ |
3,141,625 |
|
|
|
Net debt |
$ |
2,368,239 |
|
|
|
Finance leases |
|
22,075 |
|
Net debt and finance leases |
$ |
2,390,314 |
|
|
|
|
Twelve MonthsEndedSeptember 30,2019 |
Operating Income (GAAP) |
$ |
720,682 |
|
Share-based compensation expense |
|
59,438 |
|
Depreciation and amortization |
|
102,815 |
|
Restructuring and other related charges |
|
72,703 |
|
Impairment and related charges |
|
- |
|
Majority owned equity investees |
|
7,477 |
|
Adjusted Operating Income (Non-GAAP) |
$ |
963,115 |
|
|
|
Leverage ratio (b) |
2.5 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 September 30,
2019. This ratio differs from the calculation contained in the
Company's credit facility. No adjustments have been made for
consolidated entities that are not 100% owned.
|
|
Free Cash
Flow |
Nine Months Ended September 30, |
|
2019 |
|
2018 |
Net cash provided by operating activities |
$ |
400,397 |
|
|
$ |
471,812 |
|
Less: capital expenditures |
|
(69,096 |
) |
|
|
(60,774 |
) |
Less: distributions to noncontrolling interests |
|
(13,545 |
) |
|
|
(9,333 |
) |
Free cash flow |
$ |
317,756 |
|
|
$ |
401,705 |
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per Diluted
Share
|
Three Months Ended September 30, 2019 |
|
Income fromoperationsbefore incometaxes |
|
Income taxexpense |
|
Net incomeattributable tononcontrollinginterests |
|
Net incomeattributable toAMC Networks’stockholders |
|
Diluted EPSattributable toAMC Networks’stockholders |
|
|
|
|
|
|
|
|
|
|
Reported Results (GAAP) |
$ |
131,953 |
|
|
$ |
(8,727 |
) |
|
$ |
(6,303 |
) |
|
$ |
116,923 |
|
|
$ |
2.07 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
11,943 |
|
|
|
(1,877 |
) |
|
|
(3,027 |
) |
|
|
7,039 |
|
|
|
0.12 |
|
Restructuring and other related charges |
|
10,191 |
|
|
|
(2,318 |
) |
|
|
(18 |
) |
|
|
7,855 |
|
|
|
0.14 |
|
Impairment and related charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted Results
(Non-GAAP) |
$ |
154,087 |
|
|
$ |
(12,922 |
) |
|
$ |
(9,348 |
) |
|
$ |
131,817 |
|
|
$ |
2.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2018 |
|
Income fromoperationsbefore incometaxes |
|
Income taxexpense |
|
Net incomeattributable tononcontrollinginterests |
|
Net incomeattributable toAMC Networks’stockholders |
|
Diluted EPSattributable toAMC Networks’stockholders |
|
|
|
|
|
|
|
|
|
|
Reported Results (GAAP) |
$ |
160,326 |
|
|
$ |
(43,666 |
) |
|
$ |
(5,403 |
) |
|
$ |
111,257 |
|
|
$ |
1.93 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
10,005 |
|
|
|
(1,877 |
) |
|
|
(1,175 |
) |
|
|
6,953 |
|
|
|
0.12 |
|
Restructuring and other related charges |
|
3,139 |
|
|
|
(684 |
) |
|
|
- |
|
|
|
2,455 |
|
|
|
0.04 |
|
Impairment and related charges |
|
4,486 |
|
|
|
(852 |
) |
|
|
- |
|
|
|
3,634 |
|
|
|
0.06 |
|
Adjusted Results
(Non-GAAP) |
$ |
177,956 |
|
|
$ |
(47,079 |
) |
|
$ |
(6,578 |
) |
|
$ |
124,299 |
|
|
$ |
2.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2019 |
|
Income fromoperationsbefore incometaxes |
|
Income taxexpense |
|
Net incomeattributable tononcontrollinginterests |
|
Net incomeattributable toAMC Networks’stockholders |
|
Diluted EPSattributable toAMC Networks’stockholders |
|
|
|
|
|
|
|
|
|
|
Reported Results (GAAP) |
$ |
461,175 |
|
|
$ |
(53,807 |
) |
|
$ |
(18,305 |
) |
|
$ |
389,063 |
|
|
$ |
6.80 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
34,235 |
|
|
|
(5,721 |
) |
|
|
(7,561 |
) |
|
|
20,953 |
|
|
|
0.37 |
|
Restructuring and other related charges |
|
29,995 |
|
|
|
(6,619 |
) |
|
|
(114 |
) |
|
|
23,262 |
|
|
|
0.41 |
|
Impairment and related charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted Results
(Non-GAAP) |
$ |
525,405 |
|
|
$ |
(66,147 |
) |
|
$ |
(25,980 |
) |
|
$ |
433,278 |
|
|
$ |
7.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2018 |
|
Income fromoperationsbefore incometaxes |
|
Income taxexpense |
|
Net incomeattributable tononcontrollinginterests |
|
Net incomeattributable toAMC Networks’stockholders |
|
Diluted EPSattributable toAMC Networks’stockholders |
|
|
|
|
|
|
|
|
|
|
Reported Results (GAAP) |
$ |
520,620 |
|
|
$ |
(133,092 |
) |
|
$ |
(13,220 |
) |
|
$ |
374,308 |
|
|
$ |
6.31 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
29,058 |
|
|
|
(5,467 |
) |
|
|
(3,420 |
) |
|
|
20,171 |
|
|
|
0.34 |
|
Restructuring and other related charges |
|
3,139 |
|
|
|
(684 |
) |
|
|
- |
|
|
|
2,455 |
|
|
|
0.04 |
|
Impairment and related charges |
|
4,486 |
|
|
|
(852 |
) |
|
|
- |
|
|
|
3,634 |
|
|
|
0.06 |
|
Adjusted Results
(Non-GAAP) |
$ |
557,303 |
|
|
$ |
(140,095 |
) |
|
$ |
(16,640 |
) |
|
$ |
400,568 |
|
|
$ |
6.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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