AMC Networks Inc. (“AMC Networks” or the “Company”) (NASDAQ: AMCX)
today reported financial results for the third quarter ended
September 30, 2020.
President and Chief Executive Officer Josh Sapan
said: “The company delivered solid results in the 3rd quarter
and we continue to maintain a strong financial profile, with a
solid balance sheet, very good liquidity and healthy levels of free
cash flow. AMC Networks is fast becoming the global leader in SVOD
services for targeted audiences, with our Acorn TV, Shudder,
Sundance Now and UMC services set to exceed 4 million subscribers
by year-end, outperforming our expectations. With the addition of
our new AMC+ premium SVOD offering, we expect to have 5.0 to 5.5
million total SVOD subscribers, in aggregate, by the end of the
year. Our strong content also continues to resonate with viewers,
with AMC home to 4 of the top 6 cable dramas in 2020 among
adults 25-54, including our newest series in The Walking Dead
Universe, The Walking Dead: World Beyond ranking as the
#1 freshman cable drama of the year.”
Financial
Highlights:
- Net revenues of $654 million
- Operating income of $139 million; Adjusted Operating Income1 of
$185 million
- Diluted EPS of $1.17; Adjusted EPS1 of $1.32
- Cash Provided by Operating Activities of $219 million and Free
Cash Flow1 of $203 million for the three months ended September 30,
2020
- 10.8 million shares repurchased for $251 million in October
2020 in connection with the Company’s modified Dutch auction tender
offer
Operational
Highlights:
- The Company continued to make significant progress on its
digital initiatives-- The Company expects 5.0 million to 5.5
million paid subscribers in aggregate by year-end 2020 for its
portfolio of streaming services: including AMC+, Acorn TV, Shudder,
Sundance Now, UMC and IFC Films Unlimited.-- The Company now
expects in excess of 4.0 million paid subscribers in aggregate for
its four SVOD services: Acorn TV, Shudder, Sundance Now and UMC by
year-end 2020.-- The Company significantly expanded the
distribution of AMC+, its subscription video on demand bundle, with
launches on Amazon Prime and Apple TV platforms-- Shudder surpasses
1 million subscribers
- The Company announced significant updates on The Walking Dead
universe-- The Walking Dead will conclude with an expanded two-year
eleventh season-- The greenlighting of a new original series
focused on the popular Daryl Dixon and Carol Peletier characters,
which is scheduled to premiere in 2023-- The development of a new
episodic anthology series called Tales of the Walking Dead
Consolidated Results
Third quarter net revenues decreased 9.0%, or $65
million, to $654 million over the third quarter of 2019. The
decrease in net revenues reflected a decrease of 17.3% at National
Networks and an increase of 9.0% at International and Other.
Operating income was $139 million, a decrease of 17.2%, or $29
million, versus the prior year period. The operating income
decrease reflected a decrease of 28.8% at National Networks and an
increase of $23 million in operating income at International and
Other. Adjusted Operating Income1 was $185 million, a decrease of
15.4%, or $34 million, versus the prior year period. The decrease
in adjusted operating income reflected a decrease of 23.6% at
National Networks offset by an increase of $14 million at
International and Other versus the prior year period.
For the nine months ended September 30, 2020, net
revenues decreased 10.6%, or $240 million, to $2.035 billion,
operating income decreased 38.1%, or $222 million, to $361 million,
and adjusted operating income decreased 14.9%, or $111 million, to
$633 million.
Third quarter net income was $62 million ($1.17
per diluted share), compared with $117 million ($2.07 per diluted
share) in the prior year period. EPS primarily reflected the
decrease in operating income and an increase in income tax expense
partially offset by an increase in miscellaneous, net. Third
quarter Adjusted EPS1 was $70 million ($1.32 per diluted share),
compared with $132 million ($2.33 per diluted share) in the prior
year period. The decrease in adjusted EPS primarily related to the
decrease in adjusted operating income and an increase in income tax
expense partially offset by an increase in miscellaneous, net.
Net income for the nine months ended September 30,
2020 was $145 million ($2.69 per diluted share), compared with $389
million ($6.80 per diluted share) in the prior year period.
Adjusted EPS for the nine months ended September 30, 2020 was $279
million ($5.17 per diluted share), compared with $433 million
($7.57 per diluted share) in the prior year period.
For the nine months ended September 30, 2020, net
cash provided by operating activities was $644 million, an increase
of $244 million versus the prior year period. The increase was
primarily the result of a decrease in working capital and tax
payments partially offset by a decrease in adjusted operating
income. Free Cash Flow1 for the nine months ended September 30,
2020 was $595 million, an increase of $277 million versus the prior
year period. The increase primarily reflects the increase in net
cash provided by operating activities as well as a decrease in
capital expenditures.
|
|
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. |
|
|
Segment Results
(dollars in thousands) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
|
2019 |
|
|
Change |
|
2020 |
|
|
2019 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Networks |
$ |
462,149 |
|
|
$ |
558,992 |
|
|
(17.3%) |
|
$ |
1,524,938 |
|
|
$ |
1,779,850 |
|
(14.3%) |
|
International and Other |
199,292 |
|
|
182,839 |
|
|
9.0% |
|
|
530,765 |
|
|
533,454 |
|
(0.5%) |
|
Inter-segment eliminations |
|
(7,426 |
) |
|
|
(23,234 |
) |
|
n/m |
|
|
(21,022 |
) |
|
|
(38,187 |
) |
n/m |
Total Net Revenues |
$ |
654,015 |
|
|
$ |
718,597 |
|
|
(9.0%) |
|
$ |
2,034,681 |
|
|
$ |
2,275,117 |
|
(10.6%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National
Networks |
$ |
129,842 |
|
|
$ |
182,479 |
|
|
(28.8%) |
|
$ |
512,598 |
|
|
$ |
648,180 |
|
(20.9%) |
|
International and Other |
11,198 |
|
|
|
(11,501 |
) |
|
n/m |
|
|
(147,226 |
) |
|
|
(52,532 |
) |
n/m |
|
Inter-segment eliminations |
|
(1,563 |
) |
|
|
(2,540 |
) |
|
n/m |
|
|
(4,123 |
) |
|
|
(12,090 |
) |
n/m |
Total Operating Income (Loss) |
$ |
139,477 |
|
|
$ |
168,438 |
|
|
(17.2%) |
|
$ |
361,249 |
|
|
$ |
583,558 |
|
(38.1%) |
Adjusted Operating Income: |
|
|
|
|
|
|
|
|
|
|
National Networks |
$ |
159,177 |
|
|
$ |
208,410 |
|
|
(23.6%) |
|
$ |
586,699 |
|
|
$ |
721,569 |
|
(18.7%) |
|
International and Other |
|
27,877 |
|
|
|
13,465 |
|
|
107.0% |
|
|
50,647 |
|
|
|
35,237 |
|
43.7% |
|
Inter-segment eliminations |
|
(1,563 |
) |
|
|
(2,540 |
) |
|
n/m |
|
|
(4,123 |
) |
|
|
(12,786 |
) |
n/m |
Total Adjusted Operating Income |
$ |
185,491 |
|
|
$ |
219,335 |
|
|
(15.4%) |
|
$ |
633,223 |
|
|
$ |
744,020 |
|
(14.9%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
National Networks National
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 production business.
National Networks revenues for the third quarter
2020 decreased 17.3% to $462 million, operating income decreased
28.8% to $130 million, and adjusted operating income decreased
23.6% to $159 million, all compared to the prior year period.
National Networks revenues for the nine months
ended September 30, 2020 decreased 14.3% to $1.525 billion,
operating income decreased 20.9% to $513 million, and adjusted
operating income decreased 18.7% to $587 million, all compared to
the prior year period.
Third quarter revenues reflected an 18.3% decrease
in distribution revenues to $298 million. The decrease in
distribution revenues was attributable to both a decrease in
content licensing and subscription revenues. Advertising revenues
decreased 15.5% to $164 million. The decrease in advertising
revenues was primarily related to the timing of the airing of
original programming as well as the impact of the COVID-19
pandemic, which resulted in lower demand.
Third quarter operating income and adjusted
operating income reflected a decrease in revenues partially offset
by a decrease in operating expenses. The decrease in operating
expenses was primarily attributable to lower programming expenses.
Programming expenses included charges of $20 million in the current
year period related to the write-off of programming assets, as
compared to charges of $1 million in the prior year period.
Advertising and marketing expenses also decreased as compared to
the prior year period.
International and Other
International and Other principally consists of AMC Networks
International, the Company's international programming business;
AMC Networks SVOD, the Company’s subscription streaming business;
Levity, 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 2020 increased 9.0% to $199 million, operating income
increased $23 million to $11 million, and adjusted operating income
increased $14 million to $28 million, all compared to the prior
year period.
International and Other revenues for the nine
months ended September 30, 2020 decreased 0.5% to $531 million,
operating loss increased $95 million to a loss of $147 million, and
adjusted operating income increased $15 million to $51 million, all
compared to the prior year period.
Third quarter revenues primarily reflected an
increase at AMC Networks SVOD partially offset by a decrease at
Levity.
Third quarter operating loss and adjusted
operating income reflected the increase in revenues partially
offset by an increase in operating expenses. Operating income also
reflected a decrease in restructuring and other related charges as
well as depreciation and amortization.
Other Matters
COVID-19
As previously disclosed, the impact of COVID-19
and measures to prevent its spread are affecting the Company’s
businesses in a number of ways. Beginning in mid-March, the Company
experienced adverse advertising sales impacts; suspended content
production, which has led to delays in the creation and
availability of some of its television programming; and temporarily
closed its comedy venues. Operationally, nearly all Company
employees are working remotely, and the Company has restricted
business travel. The Company has evaluated and continues to
evaluate the potential impact of the COVID-19 pandemic on its
consolidated financial statements. The Company cannot reasonably
predict the ultimate impact of the COVID-19 pandemic, including the
extent of any adverse impact on its business, results of operations
and financial condition, which will depend on, among other things,
the duration and spread of the pandemic, the impact of governmental
regulations that have been, and may continue to be, imposed in
response to the pandemic, the effectiveness of actions taken to
contain or mitigate the outbreak, the availability, safety and
efficacy of a vaccine, and global economic conditions. The Company
believes that the COVID-19 pandemic has had a material impact on
its operations. However, the Company does not expect the COVID-19
pandemic and its related economic impact to affect its liquidity
position or its ongoing ability to meet the covenants in its debt
instruments.
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. On September 15,
2020, the Company announced that it planned to commence a “modified
Dutch auction” tender offer to purchase up to $250 million of
common stock. On October 21, 2020, the Company announced the final
results of the tender offer and repurchased approximately 10.8
million shares for $251 million. As of October 30, 2020, the
Company had $135 million available under its stock repurchase
authorization.
Please see the Company’s Form 10-Q for the period
ended September 30, 2020 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, cloud computing
amortization, share-based compensation expense or benefit,
impairment 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 8 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 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 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
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 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 2020 results. To listen
to the call, visit http://www.amcnetworks.com or dial 877-347-9170,
using the following passcode: 1572997.
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, BBC AMERICA,
IFC, SundanceTV and WE tv; and AMC Studios, the Company’s
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 subscription streaming services business, which
principally includes AMC+, Acorn TV, Shudder, Sundance Now and UMC;
Levity, 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 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 |
|
|
AMC NETWORKS INC.
CONSOLIDATED STATEMENTS OF INCOME (In
thousands, except per share amounts)
(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
Revenues,
net |
$ |
654,015 |
|
|
$ |
718,597 |
|
|
$ |
2,034,681 |
|
|
$ |
2,275,117 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Technical and operating (excluding depreciation and
amortization) |
|
333,816 |
|
|
|
354,992 |
|
|
|
960,379 |
|
|
|
1,080,763 |
|
Selling, general and administrative |
|
148,769 |
|
|
|
159,357 |
|
|
|
488,581 |
|
|
|
505,233 |
|
Depreciation and amortization |
|
27,547 |
|
|
|
25,619 |
|
|
|
80,182 |
|
|
|
75,568 |
|
Impairment charges |
|
- |
|
|
|
- |
|
|
|
130,411 |
|
|
|
- |
|
Restructuring and other related charges |
|
4,406 |
|
|
|
10,191 |
|
|
|
13,879 |
|
|
|
29,995 |
|
|
|
514,538 |
|
|
|
550,159 |
|
|
|
1,673,432 |
|
|
|
1,691,559 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
139,477 |
|
|
|
168,438 |
|
|
|
361,249 |
|
|
|
583,558 |
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
Interest expense |
|
(33,418 |
) |
|
|
(39,621 |
) |
|
|
(105,283 |
) |
|
|
(118,982 |
) |
Interest income |
|
2,994 |
|
|
|
4,626 |
|
|
|
11,276 |
|
|
|
13,571 |
|
Loss on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
(2,908 |
) |
|
|
- |
|
Miscellaneous, net |
|
11,138 |
|
|
|
(1,490 |
) |
|
|
(10,088 |
) |
|
|
(16,972 |
) |
|
|
(19,286 |
) |
|
|
(36,485 |
) |
|
|
(107,003 |
) |
|
|
(122,383 |
) |
|
|
|
|
|
|
|
|
Income from
operations before income taxes |
|
120,191 |
|
|
|
131,953 |
|
|
|
254,246 |
|
|
|
461,175 |
|
Income tax
expense |
|
(52,195 |
) |
|
|
(8,727 |
) |
|
|
(95,490 |
) |
|
|
(53,807 |
) |
Net income
including noncontrolling interests |
|
67,996 |
|
|
|
123,226 |
|
|
|
158,756 |
|
|
|
407,368 |
|
Net income
attributable to noncontrolling interests |
|
(6,356 |
) |
|
|
(6,303 |
) |
|
|
(13,488 |
) |
|
|
(18,305 |
) |
Net income
attributable to AMC Networks’ stockholders |
$ |
61,640 |
|
|
$ |
116,923 |
|
|
$ |
145,268 |
|
|
$ |
389,063 |
|
|
|
|
|
|
|
|
|
Net income
per share attributable to AMC Networks’ stockholders: |
|
|
|
|
|
|
|
Basic |
$ |
1.18 |
|
|
$ |
2.09 |
|
|
$ |
2.72 |
|
|
$ |
6.91 |
|
Diluted |
$ |
1.17 |
|
|
$ |
2.07 |
|
|
$ |
2.69 |
|
|
$ |
6.80 |
|
|
|
|
|
|
|
|
|
Weighted
average common shares: |
|
|
|
|
|
|
|
Basic |
|
52,346 |
|
|
|
55,847 |
|
|
|
53,374 |
|
|
|
56,339 |
|
Diluted |
|
52,904 |
|
|
|
56,605 |
|
|
|
53,917 |
|
|
|
57,218 |
|
|
|
|
|
|
|
|
|
AMC NETWORKS INC.
SUPPLEMENTAL FINANCIAL DATA (Dollars in
thousands) (Unaudited)
|
Three Months Ended September 30, 2020 |
|
NationalNetworks |
|
Internationaland Other |
|
Inter-segmenteliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
129,842 |
|
$ |
11,198 |
|
|
$ |
(1,563 |
) |
|
$ |
139,477 |
Share-based compensation expense |
|
9,922 |
|
|
2,472 |
|
|
|
- |
|
|
|
12,394 |
Depreciation and amortization |
|
13,422 |
|
|
14,125 |
|
|
|
- |
|
|
|
27,547 |
Impairment charges |
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
Restructuring and other related charges |
|
5,991 |
|
|
(1,585 |
) |
|
|
- |
|
|
|
4,406 |
Majority owned equity investees AOI |
|
- |
|
|
1,667 |
|
|
|
- |
|
|
|
1,667 |
Adjusted
operating income (loss) |
$ |
159,177 |
|
$ |
27,877 |
|
|
$ |
(1,563 |
) |
|
$ |
185,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
Impairment charges |
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
Restructuring and other related charges |
|
6,199 |
|
|
3,992 |
|
|
|
- |
|
|
|
10,191 |
Majority owned equity investees AOI |
|
- |
|
|
1,246 |
|
|
|
- |
|
|
|
1,246 |
Adjusted
operating income (loss) |
$ |
208,410 |
|
$ |
13,465 |
|
|
$ |
(2,540 |
) |
|
$ |
219,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2020 |
|
NationalNetworks |
|
Internationaland Other |
|
Inter-segmenteliminations |
|
Consolidated |
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
512,598 |
|
$ |
(147,226 |
) |
|
$ |
(4,123 |
) |
|
$ |
361,249 |
Share-based compensation expense |
|
34,754 |
|
|
8,387 |
|
|
|
- |
|
|
|
43,141 |
Depreciation and amortization |
|
30,633 |
|
|
49,549 |
|
|
|
- |
|
|
|
80,182 |
Impairment charges |
|
- |
|
|
130,411 |
|
|
|
- |
|
|
|
130,411 |
Restructuring and other related charges |
|
8,714 |
|
|
5,165 |
|
|
|
- |
|
|
|
13,879 |
Majority owned equity investees AOI |
|
- |
|
|
4,361 |
|
|
|
- |
|
|
|
4,361 |
Adjusted
operating income (loss) |
$ |
586,699 |
|
$ |
50,647 |
|
|
$ |
(4,123 |
) |
|
$ |
633,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
Impairment charges |
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
Restructuring and other related charges |
|
6,776 |
|
|
23,915 |
|
|
|
(696 |
) |
|
|
29,995 |
Majority owned equity investees AOI |
|
- |
|
|
4,434 |
|
|
|
- |
|
|
|
4,434 |
Adjusted
operating income (loss) |
$ |
721,569 |
|
$ |
35,237 |
|
|
$ |
(12,786 |
) |
|
$ |
744,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMC NETWORKS INC.
SUPPLEMENTAL FINANCIAL DATA (In
thousands) (Unaudited)
Capitalization |
September 30,2020 |
|
|
Cash and cash
equivalents ……. |
$ |
1,071,860 |
Credit facility debt (a) |
$ |
693,750 |
Senior notes (a) |
|
2,200,000 |
Other debt |
|
1,000 |
Total debt |
$ |
2,894,750 |
|
|
Net debt |
$ |
1,822,890 |
|
|
Finance leases |
|
32,025 |
Net debt and finance leases |
$ |
1,854,915 |
|
|
|
Twelve Months EndedSeptember 30, 2020 |
Operating
Income (GAAP) |
$ |
402,968 |
Share-based compensation expense |
|
56,809 |
Depreciation and amortization |
|
105,712 |
Impairment charges |
|
237,014 |
Restructuring and other related charges |
|
24,798 |
Majority owned equity investees AOI |
|
5,892 |
Adjusted
Operating Income (Non-GAAP) |
$ |
833,193 |
|
|
Leverage ratio
(b) |
2.2 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, 2020.
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, |
|
|
2020 |
|
|
|
2019 |
|
Net cash provided by operating activities |
$ |
644,087 |
|
|
$ |
400,397 |
|
Less: capital expenditures |
|
(34,990 |
) |
|
|
(69,096 |
) |
Less: distributions to noncontrolling interests |
|
(13,955 |
) |
|
|
(13,545 |
) |
Free cash flow |
$ |
595,142 |
|
|
$ |
317,756 |
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per Diluted
Share
|
Three Months Ended September 30, 2020 |
|
Income fromoperations beforeincome taxes |
|
Income taxexpense |
|
Net incomeattributable tononcontrollinginterests |
|
Net incomeattributable toAMC Networks’stockholders |
|
Diluted EPSattributable toAMC Networks’stockholders |
|
|
|
|
|
|
|
|
|
|
Reported Results (GAAP) |
$ |
120,191 |
|
$ |
(52,195 |
) |
|
$ |
(6,356 |
) |
|
$ |
61,640 |
|
$ |
1.17 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
9,548 |
|
|
(1,464 |
) |
|
|
(3,027 |
) |
|
|
5,057 |
|
|
0.09 |
Impairment charges |
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
Restructuring and other related charges |
|
4,406 |
|
|
(1,051 |
) |
|
|
- |
|
|
|
3,355 |
|
|
0.06 |
Loss on extinguishment of debt |
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
Adjusted
Results (Non-GAAP) |
$ |
134,145 |
|
$ |
(54,710 |
) |
|
$ |
(9,383 |
) |
|
$ |
70,052 |
|
$ |
1.32 |
|
Three Months Ended September 30, 2019 |
|
Income fromoperations beforeincome taxes |
|
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 |
Impairment charges |
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
Restructuring and other related charges |
|
10,191 |
|
|
(2,318 |
) |
|
|
(18 |
) |
|
|
7,855 |
|
|
0.14 |
Loss on extinguishment of debt |
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
Adjusted
Results (Non-GAAP) |
$ |
154,087 |
|
$ |
(12,922 |
) |
|
$ |
(9,348 |
) |
|
$ |
131,817 |
|
$ |
2.33 |
|
Nine Months Ended September 30, 2020 |
|
Income fromoperations beforeincome taxes |
|
Income taxexpense |
|
Net incomeattributable tononcontrollinginterests |
|
Net incomeattributable toAMC Networks’stockholders |
|
Diluted EPSattributable toAMC Networks’stockholders |
|
|
|
|
|
|
|
|
|
|
Reported Results (GAAP) |
$ |
254,246 |
|
$ |
(95,490 |
) |
|
$ |
(13,488 |
) |
|
$ |
145,268 |
|
$ |
2.69 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
32,642 |
|
|
(5,413 |
) |
|
|
(9,081 |
) |
|
|
18,148 |
|
|
0.34 |
Impairment charges |
|
130,411 |
|
|
(27,984 |
) |
|
|
- |
|
|
|
102,427 |
|
|
1.90 |
Restructuring and other related charges |
|
13,879 |
|
|
(3,349 |
) |
|
|
13 |
|
|
|
10,543 |
|
|
0.20 |
Loss on extinguishment of debt |
|
2,908 |
|
|
(733 |
) |
|
|
- |
|
|
|
2,175 |
|
|
0.04 |
Adjusted
Results (Non-GAAP) |
$ |
434,086 |
|
$ |
(132,969 |
) |
|
$ |
(22,556 |
) |
|
$ |
278,561 |
|
$ |
5.17 |
|
Nine Months Ended September 30, 2019 |
|
Income fromoperations beforeincome taxes |
|
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 |
Impairment charges |
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
Restructuring and other related charges |
|
29,995 |
|
|
(6,619 |
) |
|
|
(114 |
) |
|
|
23,262 |
|
|
0.41 |
Loss on extinguishment of debt |
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
Adjusted
Results (Non-GAAP) |
$ |
525,405 |
|
$ |
(66,147 |
) |
|
$ |
(25,980 |
) |
|
$ |
433,278 |
|
$ |
7.57 |
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