AMC Networks Inc. (“AMC Networks” or the “Company”) (NASDAQ: AMCX)
today reported financial results for the full year and fourth
quarter ended December 31, 2019.
President and Chief Executive Officer Josh Sapan said: “AMC
Networks achieved its key financial targets for the year,
against a backdrop of a rapidly shifting media ecosystem. We
continue to move our organization in a new strategic direction,
from what has been a cable channels company into a premier targeted
content company that is now inhabiting the traditional pay-TV
ecosystem, the advanced advertising world, as well as the emerging
targeted SVOD marketplace. A new agreement with one of our biggest
MVPD partners – DISH Network – includes the launch of our full
suite of targeted SVOD services and demonstrates that our
distribution partners are increasingly recognizing the value of our
SVOD offerings. We are seeing momentum for our targeted SVOD
services, which passed two million paid subscribers in the fourth
quarter, as we continue to invest in strong, desirable content and
valuable IP, diversify through new areas of content monetization
and maximize the long-term value of our core networks and
brands.”
- 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.
- Source: Nielsen, 2019 CY (12/31/18 - 12/29/19), A25-54, Prime
Start (8p-11p), Ad-supported scripted dramas, excl specials.
Live+3
- Source: Nielsen, 2019 CY (12/31/18 - 12/29/19), AA W18-49 &
W25-54, Prime Start (8p-11p), Ad-supported Cable. Live+3
Fourth Quarter Results
Fourth quarter net revenues increased 1.6%, or $12 million, to
$785 million over the fourth quarter of 2018. The increase in net
revenues reflected a decrease of 0.6% at National Networks and an
increase of 6.5% at International and Other. Operating income was
$42 million, a decrease of 69.6%, or $95 million, versus the prior
year period. The operating income decrease reflected a decrease of
12.1% at National Networks and an increase of $69 million in
operating loss at International and Other. Adjusted Operating
Income4 was $200 million, a decrease of 8.7%, or $19 million,
versus the prior year period. National Networks adjusted operating
income decreased 13.1% and International and Other adjusted
operating income increased $6 million versus the prior year period.
As discussed in the “Other Matters” section of the release, results
included the impact of $107 million of impairment and related
charges as well as $11 million of restructuring and other related
charges.
Fourth quarter net loss was $9 million ($0.15 per diluted
share), compared with net income of $72 million ($1.24 per diluted
share) in the prior year period. The decrease in EPS was primarily
related to a decrease in operating income. Fourth quarter Adjusted
EPS4 was $96 million ($1.69 per diluted share), compared with $111
million ($1.92 per diluted share) in the prior year period. The
decrease in adjusted EPS was primarily related to a decrease in
adjusted operating income and an increase in income tax expense
partially offset by an increase in miscellaneous, net.
Full Year Results
Full year 2019 net revenues increased 3.0%, or $88 million, to
$3.060 billion over full year 2018, reflecting a decrease of 1.8%
at National Networks and an increase of 22.7% at International and
Other. Operating income was $625 million, a decrease of 14.0%, or
$102 million, versus the prior year period. National Networks
operating income decreased 2.6% and International and Other
operating loss increased $77 million versus the prior year period.
Adjusted Operating Income was $944 million, an increase of 1.2%, or
$11 million, versus the prior year period. National Networks
adjusted operating income decreased 2.4% and International and
Other adjusted operating income increased $31 million versus the
prior year period.
Full year net income was $380 million ($6.67 per diluted share),
compared with $446 million ($7.57 per diluted share) in the prior
year period. The decrease in EPS was primarily related to a
decrease in operating income. Full year adjusted EPS was $529
million ($9.27 per diluted share), compared with $512 million
($8.69 per diluted share) in the prior year period. The increase in
adjusted EPS was primarily related to a decrease in income tax
expense partially offset by a decrease in miscellaneous, net.
For the full year 2019, net cash provided by operating
activities was $484 million, a decrease of $123 million versus the
prior year period. The decrease was primarily the result of a
decrease in working capital partially offset by an increase in
adjusted operating income. Free Cash Flow4 for the full year 2019
was $377 million, a decrease of $126 million versus the prior year
period. The decrease primarily reflected the decrease in net cash
provided by operating activities.
4. 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.
Segment
Results |
|
|
|
|
(dollars
in thousands) |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
Change |
|
|
2019 |
|
|
|
|
2018 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Networks |
|
$ |
589,195 |
|
|
$ |
592,687 |
|
|
(0.6%) |
|
$ |
2,369,044 |
|
|
|
$ |
2,413,325 |
|
|
(1.8 %) |
|
International and Other |
|
|
200,687 |
|
|
|
188,432 |
|
|
6.5% |
|
|
734,143 |
|
|
|
|
598,306 |
|
|
22.7% |
|
Inter-segment
eliminations |
|
|
(4,678 |
) |
|
|
(8,273 |
) |
|
n/m |
|
|
(42,866 |
) |
|
|
|
(39,702 |
) |
|
n/m |
Total Net
Revenues |
|
$ |
785,204 |
|
|
$ |
772,846 |
|
|
1.6% |
|
$ |
3,060,321 |
|
|
|
$ |
2,971,929 |
|
|
3.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Networks |
|
$ |
156,242 |
|
|
$ |
177,805 |
|
|
(12.1%) |
|
$ |
804,422 |
|
|
|
$ |
825,770 |
|
|
(2.6%) |
|
International and Other |
|
|
(117,510 |
) |
|
|
(48,428 |
) |
|
(142.7%) |
|
|
(170,039 |
) |
|
|
|
(93,326 |
) |
|
(82.2%) |
|
Inter-segment
eliminations |
|
|
2,987 |
|
|
|
7,747 |
|
|
n/m |
|
|
(9,106 |
) |
|
|
|
(5,535 |
) |
|
n/m |
Total Operating
Income (Loss) |
|
$ |
41,719 |
|
|
$ |
137,124 |
|
|
(69.6%) |
|
$ |
625,277 |
|
|
|
$ |
726,909 |
|
|
(14.0%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Networks |
|
$ |
181,957 |
|
|
$ |
209,309 |
|
|
(13.1%) |
|
$ |
903,526 |
|
|
|
$ |
925,279 |
|
|
(2.4%) |
|
International and Other |
|
|
14,955 |
|
|
|
8,541 |
|
|
75.1% |
|
|
50,193 |
|
|
|
|
19,303 |
|
|
160.0% |
|
Inter-segment
eliminations |
|
|
3,059 |
|
|
|
1,245 |
|
|
n/m |
|
|
(9,729 |
) |
|
|
|
(12,037 |
) |
|
n/m |
Total Adjusted
Operating Income |
|
$ |
199,971 |
|
|
$ |
219,095 |
|
|
(8.7%) |
|
$ |
943,990 |
|
|
|
$ |
932,545 |
|
|
1.2% |
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.
Fourth Quarter Results
National Networks revenues for the fourth quarter 2019 decreased
0.6% to $589 million, operating income decreased 12.1% to $156
million, and adjusted operating income decreased 13.1% to $182
million, all compared to the prior year period.
Fourth quarter revenues reflected a 5.5% increase in
distribution revenues to $338 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 7.8% to $251 million. The decrease
in advertising revenues principally related to lower delivery
partially offset by higher pricing.
Fourth quarter operating income and adjusted operating income
reflected the decrease in revenues as well as an increase in
operating expenses. The increase in operating expenses was
primarily attributable to higher programming expenses. Programming
expenses included charges of $23 million in the current year period
related to the write-off of programming assets, as compared to
charges of $29 million in the prior year period. Operating income
also reflected a decrease in restructuring and other related
charges.
Full Year Results
National Networks revenues for the full year 2019 decreased 1.8%
to $2.369 billion, operating income decreased 2.6% to $804 million,
and adjusted operating income decreased 2.4% to $904 million, all
compared to the prior year period.
Full year revenues reflected a 0.3% decrease in distribution
revenues to $1.465 billion. The decrease in distribution revenues
was attributable to a decrease in subscription revenues partially
offset by an increase in content licensing revenues. Advertising
revenues decreased 4.3% to $904 million. The decrease in
advertising revenues principally related to lower delivery
partially offset by higher pricing.
Full year operating income and adjusted operating income
reflected the decrease in revenues partially offset by a decrease
in operating expenses. The decrease in operating expenses was
primarily attributable to lower marketing and personnel expenses
partially offset by higher programming expenses. Programming
expenses included charges of $38 million in the current year period
related to the write-off of programming assets, as compared to
charges of $49 million in the prior year period. Operating income
also reflected an increase in share-based compensation expense and
a decrease in restructuring and other related charges.
International and OtherInternational and Other
principally consists of AMC Networks International, the Company’s
international programming business; AMC Networks SVOD, the
Company’s targeted 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.
Fourth Quarter Results
International and Other revenues for the fourth quarter of 2019
increased 6.5% to $201 million, operating loss increased $69
million to a loss of $118 million, and adjusted operating income
increased 75.1% to $15 million, all compared to the prior year
period.
Fourth quarter revenues primarily reflected an increase at AMC
Networks SVOD.
Fourth 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 an increase at AMC Networks SVOD. The
increase in operating loss also reflected $107 million in
impairment and related charges at AMC Networks International
partially offset by a reduction in restructuring and other related
charges.
Full Year Results
International and Other revenues for the full year 2019
increased 22.7% to $734 million, operating loss increased 82.2% to
a loss of $170 million, and adjusted operating income increased $31
million to $50 million, all compared to the prior year period.
Full year revenues primarily reflected the acquisitions of RLJ
Entertainment (acquired by the Company in October 2018) and Levity
Entertainment Group (acquired by the Company in April 2018) and, to
a lesser extent, increases at our targeted subscription streaming
services, Shudder and Sundance Now.
Full year 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 acquisitions of RLJ Entertainment and Levity
Entertainment Group. The increase in operating loss also reflected
an increase in impairment and related charges at AMC Networks
International.
Other Matters
Debt Redemption
As previously disclosed, on February 3, 2020, the Company
announced its intention to redeem $200 million of the outstanding
$600 million principal amount of its 4.75% Senior Notes due 2022 on
March 4, 2020.
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 full year 2019,
the Company repurchased approximately 1.3 million shares for $71
million. As of February 21, 2020, the Company had $489 million
available under its stock repurchase authorization.
AMC Networks International Impairment
The Company recognized impairment and related charges of $107
million in the fourth quarter of 2019 related to its AMC Networks
International (“AMCNI”) reporting unit. The $107 million consisted
of a $98 million charge reflecting the partial write-down of the
goodwill associated with the AMCNI reporting unit as well as a $9
million charge in connection with the disposition of certain
businesses.
Restructuring and Other Related Charges
During 2019, management commenced various restructuring
initiatives related to our management team. As a result of these
initiatives, the Company recorded restructuring and other related
charges of $11 million in the fourth quarter of 2019. For the full
year 2019, the Company recorded restructuring and other related
charges of $41 million.
Adjusted Operating Income
As previously disclosed, in connection with the acquisition of
RLJ Entertainment, Inc. (“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 the adjusted operating income of
majority owned equity investees. For the fourth quarter, the
Company recorded adjusted operating income of $2 million related to
ACL. For the full year 2019, the Company recorded adjusted
operating income of $6 million related to ACL.
Please see the Company’s Form 10-K for the period ended December
31, 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 including 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 operating income (loss) to Adjusted Operating Income (Loss),
please see page 9 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 net cash provided by operating
activities to Free Cash Flow, please see page 10 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 earnings per diluted share to Adjusted EPS,
please see pages 11-12 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 full year and fourth quarter 2019 results. To
listen to the call, visit http://www.amcnetworks.com or dial
1-877-347-9170, using the following passcode: 5289142.
About AMC Networks Inc.
AMC Networks is a global entertainment company known for
delivering high-quality content to audiences and a valuable
platform to distributors and advertisers. The Company, which
operates several of the most recognizable brands in entertainment,
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; AMC Networks SVOD, the
Company's targeted 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.
ContactsInvestor Relations Seth Zaslow (646)
273-3766seth.zaslow@amcnetworks.com |
Corporate Communications Georgia Juvelis (917) 542-6390
georgia.juvelis@amcnetworks.com |
|
|
AMC NETWORKS INC.CONSOLIDATED STATEMENTS
OF INCOME(In thousands, except per share
amounts)(unaudited) |
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues, net |
|
$ |
785,204 |
|
|
$ |
772,846 |
|
|
$ |
3,060,321 |
|
|
$ |
2,971,929 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technical and operating (excluding depreciation and
amortization) |
|
|
426,222 |
|
|
|
402,377 |
|
|
|
1,506,985 |
|
|
|
1,445,949 |
|
Selling, general and administrative |
|
|
174,211 |
|
|
|
163,390 |
|
|
|
679,444 |
|
|
|
657,457 |
|
Depreciation and amortization |
|
|
25,530 |
|
|
|
27,247 |
|
|
|
101,098 |
|
|
|
91,281 |
|
Impairment and related charges |
|
|
106,603 |
|
|
|
- |
|
|
|
106,603 |
|
|
|
4,486 |
|
Restructuring and other related charges |
|
|
10,919 |
|
|
|
42,708 |
|
|
|
40,914 |
|
|
|
45,847 |
|
|
|
|
743,485 |
|
|
|
635,722 |
|
|
|
2,435,044 |
|
|
|
2,245,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
41,719 |
|
|
|
137,124 |
|
|
|
625,277 |
|
|
|
726,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(38,816 |
) |
|
|
(39,386 |
) |
|
|
(157,798 |
) |
|
|
(154,993 |
) |
Interest income |
|
|
11,136 |
|
|
|
3,727 |
|
|
|
24,707 |
|
|
|
19,180 |
|
Miscellaneous, net |
|
|
10,972 |
|
|
|
(1,812 |
) |
|
|
(6,000 |
) |
|
|
29,177 |
|
|
|
|
(16,708 |
) |
|
|
(37,471 |
) |
|
|
(139,091 |
) |
|
|
(106,636 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations before
income taxes |
|
|
25,011 |
|
|
|
99,653 |
|
|
|
486,186 |
|
|
|
620,273 |
|
Income tax expense |
|
|
(24,663 |
) |
|
|
(23,214 |
) |
|
|
(78,470 |
) |
|
|
(156,306 |
) |
Net income including
noncontrolling interests |
|
|
348 |
|
|
|
76,439 |
|
|
|
407,716 |
|
|
|
463,967 |
|
Net income attributable to
noncontrolling interests |
|
|
(8,925 |
) |
|
|
(4,560 |
) |
|
|
(27,230 |
) |
|
|
(17,780 |
) |
Net income attributable to AMC
Networks’ stockholders |
|
$ |
(8,577 |
) |
|
$ |
71,879 |
|
|
$ |
380,486 |
|
|
$ |
446,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to AMC Networks’ stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.15 |
) |
|
$ |
1.27 |
|
|
$ |
6.77 |
|
|
$ |
7.68 |
|
Diluted |
|
$ |
(0.15 |
) |
|
$ |
1.24 |
|
|
$ |
6.67 |
|
|
$ |
7.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
55,807 |
|
|
|
56,725 |
|
|
|
56,205 |
|
|
|
58,066 |
|
Diluted |
|
|
56,501 |
|
|
|
57,955 |
|
|
|
57,037 |
|
|
|
58,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMC NETWORKS INC.SUPPLEMENTAL FINANCIAL
DATA (Dollars in
thousands)(Unaudited) |
|
|
Three Months Ended December 31, 2019 |
|
National Networks |
|
International and Other |
|
Inter-segment eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
156,242 |
|
$ |
(117,510 |
) |
|
$ |
2,987 |
|
$ |
41,719 |
Share-based compensation expense |
|
11,203 |
|
|
2,465 |
|
|
|
- |
|
|
13,668 |
Depreciation and amortization |
|
7,834 |
|
|
17,696 |
|
|
|
- |
|
|
25,530 |
Restructuring and other related charges |
|
6,678 |
|
|
4,169 |
|
|
|
72 |
|
|
10,919 |
Impairment and related charges |
|
- |
|
|
106,603 |
|
|
|
- |
|
|
106,603 |
Majority owned equity investees |
|
- |
|
|
1,532 |
|
|
|
- |
|
|
1,532 |
Adjusted operating income
(loss) |
$ |
181,957 |
|
$ |
14,955 |
|
|
$ |
3,059 |
|
$ |
199,971 |
|
Three Months Ended December 31, 2018 |
|
National Networks |
|
International and Other |
|
Inter-segment eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
177,805 |
|
$ |
(48,428 |
) |
|
$ |
7,747 |
|
|
$ |
137,124 |
Share-based compensation expense |
|
5,974 |
|
|
2,999 |
|
|
|
- |
|
|
|
8,973 |
Depreciation and amortization |
|
8,370 |
|
|
18,877 |
|
|
|
- |
|
|
|
27,247 |
Restructuring and other related charges |
|
17,160 |
|
|
32,050 |
|
|
|
(6,502 |
) |
|
|
42,708 |
Impairment and related charges |
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
Majority owned equity investees |
|
- |
|
|
3,043 |
|
|
|
- |
|
|
|
3,043 |
Adjusted operating income
(loss) |
$ |
209,309 |
|
$ |
8,541 |
|
|
$ |
1,245 |
|
|
$ |
219,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2019 |
|
National Networks |
|
International and Other |
|
Inter-segment eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
804,422 |
|
$ |
(170,039 |
) |
|
$ |
(9,106 |
) |
|
$ |
625,277 |
Share-based compensation expense |
|
52,977 |
|
|
11,156 |
|
|
|
- |
|
|
|
64,133 |
Depreciation and amortization |
|
32,674 |
|
|
68,424 |
|
|
|
- |
|
|
|
101,098 |
Restructuring and other related charges |
|
13,453 |
|
|
28,084 |
|
|
|
(623 |
) |
|
|
40,914 |
Impairment and related charges |
|
- |
|
|
106,603 |
|
|
|
- |
|
|
|
106,603 |
Majority owned equity investees |
|
- |
|
|
5,965 |
|
|
|
- |
|
|
|
5,965 |
Adjusted operating income
(loss) |
$ |
903,526 |
|
$ |
50,193 |
|
|
$ |
(9,729 |
) |
|
$ |
943,990 |
|
Twelve Months Ended December 31, 2018 |
|
National Networks |
|
International and Other |
|
Inter-segment eliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
825,770 |
|
$ |
(93,326 |
) |
|
$ |
(5,535 |
) |
|
$ |
726,909 |
Share-based compensation expense |
|
48,621 |
|
|
12,358 |
|
|
|
- |
|
|
|
60,979 |
Depreciation and amortization |
|
33,728 |
|
|
57,553 |
|
|
|
- |
|
|
|
91,281 |
Restructuring and other related charges |
|
17,160 |
|
|
35,189 |
|
|
|
(6,502 |
) |
|
|
45,847 |
Impairment and related charges |
|
- |
|
|
4,486 |
|
|
|
- |
|
|
|
4,486 |
Majority owned equity investees |
|
- |
|
|
3,043 |
|
|
|
- |
|
|
|
3,043 |
Adjusted operating income
(loss) |
$ |
925,279 |
|
$ |
19,303 |
|
|
$ |
(12,037 |
) |
|
$ |
932,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMC NETWORKS INC.SUPPLEMENTAL FINANCIAL
DATA (In
thousands)(Unaudited) |
|
Capitalization |
December 31, 2019 |
|
|
Cash and cash equivalents |
$ |
816,170 |
Credit facility debt (a) |
$ |
731,250 |
Senior notes (a) |
|
2,400,000 |
Other debt |
|
- |
Total debt |
$ |
3,131,250 |
|
|
Net debt |
$ |
2,315,080 |
|
|
Finance leases |
|
21,270 |
Net debt and finance leases |
$ |
2,336,350 |
|
|
|
Twelve Months Ended December 31, 2019 |
Operating Income (GAAP) |
$ |
625,277 |
Share-based compensation expense |
|
64,133 |
Depreciation and amortization |
|
101,098 |
Restructuring and other related charges |
|
40,914 |
Impairment and related charges |
|
106,603 |
Majority owned equity investees |
|
5,965 |
Adjusted Operating Income
(Non-GAAP) |
$ |
943,990 |
|
|
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 December 31,
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 |
Twelve Months Ended December 31, |
|
|
2019 |
|
|
|
2018 |
|
Net cash provided by operating
activities |
$ |
483,748 |
|
|
$ |
606,547 |
|
Less: capital
expenditures |
|
(91,604 |
) |
|
|
(89,802 |
) |
Less: distributions to
noncontrolling interests |
|
(15,558 |
) |
|
|
(14,296 |
) |
Free cash flow |
$ |
376,586 |
|
|
$ |
502,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per Diluted Share
|
|
Three Months Ended December 31, 2019 |
|
|
Income from operations before income taxes |
|
Income tax expense |
|
Net income attributable to noncontrollinginterests |
|
Net income attributable to AMC Networks’ stockholders |
|
Diluted EPS attributable to AMC Networks’ stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Results (GAAP) |
|
$ |
25,011 |
|
$ |
(24,663 |
) |
|
$ |
(8,925 |
) |
|
$ |
(8,577 |
) |
|
$ |
(0.15 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
|
11,934 |
|
|
(2,057 |
) |
|
|
(3,027 |
) |
|
|
6,850 |
|
|
|
0.12 |
|
Restructuring and other related charges |
|
|
10,919 |
|
|
(2,595 |
) |
|
|
(442 |
) |
|
|
7,882 |
|
|
|
0.14 |
|
Impairment and related charges |
|
|
106,603 |
|
|
(17,147 |
) |
|
|
- |
|
|
|
89,456 |
|
|
|
1.58 |
|
Adjusted
Results(Non-GAAP) |
|
$ |
154,467 |
|
$ |
(46,462 |
) |
|
$ |
(12,394 |
) |
|
$ |
95,611 |
|
|
$ |
1.69 |
|
|
|
Three Months Ended December 31, 2018 |
|
|
Income from operations before income taxes |
|
Income tax expense |
|
Net income attributable to noncontrolling interests |
|
Net income attributable to AMC Networks’ stockholders |
|
Diluted EPS attributable to AMC Networks’ stockholders |
|
|
|
|
|
|
|
|
|
|
|
Reported Results (GAAP) |
|
$ |
99,653 |
|
$ |
(23,214 |
) |
|
$ |
(4,560 |
) |
|
$ |
71,879 |
|
$ |
1.24 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
|
13,907 |
|
|
(2,017 |
) |
|
|
(4,548 |
) |
|
|
7,342 |
|
|
0.13 |
Restructuring and other related charges |
|
|
42,708 |
|
|
(8,715 |
) |
|
|
(1,755 |
) |
|
|
32,238 |
|
|
0.56 |
Impairment and related charges |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
Adjusted
Results(Non-GAAP) |
|
$ |
156,268 |
|
$ |
(33,946 |
) |
|
$ |
(10,863 |
) |
|
$ |
111,459 |
|
$ |
1.92 |
|
|
Twelve Months Ended December 31, 2019 |
|
|
Income from operations before income taxes |
|
Income taxexpense |
|
Net income attributable to noncontrolling interests |
|
Net income attributable to AMC Networks’ stockholders |
|
Diluted EPS attributable to AMC Networks’ stockholders |
|
|
|
|
|
|
|
|
|
|
|
Reported Results (GAAP) |
|
$ |
486,186 |
|
$ |
(78,470 |
) |
|
$ |
(27,230 |
) |
|
$ |
380,486 |
|
$ |
6.67 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
|
46,169 |
|
|
(7,778 |
) |
|
|
(10,588 |
) |
|
|
27,803 |
|
|
0.49 |
Restructuring and other related charges |
|
|
40,914 |
|
|
(9,214 |
) |
|
|
(555 |
) |
|
|
31,145 |
|
|
0.55 |
Impairment and related charges |
|
|
106,603 |
|
|
(17,147 |
) |
|
|
- |
|
|
|
89,456 |
|
|
1.57 |
Adjusted
Results(Non-GAAP) |
|
$ |
679,872 |
|
$ |
(112,609 |
) |
|
$ |
(38,373 |
) |
|
$ |
528,890 |
|
$ |
9.27 |
|
|
Twelve Months Ended December 31, 2018 |
|
|
Income from operations before income taxes |
|
Income tax expense |
|
Net income attributable to noncontrolling interests |
|
Net income attributable to AMC Networks’ stockholders |
|
Diluted EPS attributable to AMC Networks’ stockholders |
|
|
|
|
|
|
|
|
|
|
|
Reported Results (GAAP) |
|
$ |
620,273 |
|
$ |
(156,306 |
) |
|
$ |
(17,780 |
) |
|
$ |
446,187 |
|
$ |
7.57 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
|
42,964 |
|
|
(7,484 |
) |
|
|
(7,968 |
) |
|
|
27,512 |
|
|
0.47 |
Restructuring and other related charges |
|
|
45,847 |
|
|
(9,399 |
) |
|
|
(1,755 |
) |
|
|
34,693 |
|
|
0.59 |
Impairment and related charges |
|
|
4,486 |
|
|
(852 |
) |
|
|
- |
|
|
|
3,634 |
|
|
0.06 |
Adjusted
Results(Non-GAAP) |
|
$ |
713,570 |
|
$ |
(174,041 |
) |
|
$ |
(27,503 |
) |
|
$ |
512,026 |
|
$ |
8.69 |
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