AMC Networks Inc. (“AMC Networks” or the “Company”) (NASDAQ: AMCX)
today reported financial results for the first quarter ended March
31, 2021.
President and Chief Executive Officer
Josh Sapan said: “AMC Networks had solid performance in
the first quarter and we are on course to meet our 2021 financial
and streaming targets, including reaching at least 9 million paid
subscribers by year end. The transition of the company to be the
worldwide leader in targeted streaming on the strength of our
focused, strong content continues on track. The support of our
distribution partners for our streaming efforts and our advanced
advertising strides are providing us with both stability and
momentum. We believe the high viewer engagement, efficient economic
model, and pricing power of our streaming offerings provide us with
important strategic advantages which, when coupled with our
valuable linear channel offerings, will fuel our growth and
continue to position us very well over the near and long term.”
First Quarter Financial
Highlights:
- New segment
reporting structure
- Net revenues of
$692 million
- Operating income
of $170 million; Adjusted Operating Income(1) of $238 million
- Diluted EPS of
$2.02; Adjusted EPS(1) of $2.98
- Net cash
provided by operating activities of $108 million; Free Cash Flow(1)
of $97 million
|
|
Three Months Ended March 31, |
Dollars in thousands, except
per share amounts |
|
2021 |
|
2020 |
|
Change |
Net Revenues |
|
$ |
691,741 |
|
|
$ |
734,375 |
|
|
(5.8 |
) |
% |
Operating
Income |
|
$ |
169,708 |
|
|
$ |
172,970 |
|
|
(1.9 |
) |
% |
Total Adjusted
Operating Income |
|
$ |
237,979 |
|
|
$ |
222,454 |
|
|
7.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per
Share |
|
$ |
2.02 |
|
|
$ |
1.22 |
|
|
65.6 |
|
% |
Adjusted Diluted Earnings Per
Share |
|
$ |
2.98 |
|
|
$ |
1.47 |
|
|
102.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities |
|
$ |
107,563 |
|
|
$ |
198,408 |
|
|
(45.8 |
) |
% |
Free Cash
Flow |
|
$ |
96,562 |
|
|
$ |
182,411 |
|
|
(47.1 |
) |
% |
|
|
|
(1) |
See page 6 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. |
|
|
|
Operational Highlights:
- On track to
achieve previously communicated 2021 and long-term financial and
subscriber targets
- Expanded
distribution of AMC+ with launch on YouTube TV
- Launched five
free ad-supported streaming (FAST) channels on VIZIO SmartCast
- Entered into a
strategic partnership with Toronto-based Shaftesbury, an
award-winning creator and producer of original TV, film and digital
content
- Premiered
Shudder’s “Halfway to Halloween Month” in April, with Shudder’s
biggest slate of programming ever
- Unveiled Upfront
Connect 2.0, a powerful planning, creative content, and information
tool for advertising clients
- Launched Acorn
TV on Amazon Prime Video Channels in Spain
- Completed two
first-to-market national linear addressable campaigns, a
significant and long-awaited step to unleash the potential of
addressable advertising on television at scale
- Completed
spin-off of Levity’s live comedy and talent management businesses
and related lease obligations(2)
Changes to Segment
Reporting:
In the first quarter of 2021, the Company
changed its presentation of operating segments, reflecting a
reorganized operating structure focused on a multi-platform
distribution approach to content monetization. The Company’s
streaming services and IFC Films, previously included in the
International and Other segment, are now included within the
Domestic Operations segment (formerly referred to as the National
Networks segment). In addition, certain corporate overhead costs
are no longer allocated to the operating segments. Operating
segment information for the prior period has been recast to reflect
these changes.(3) The new reporting structure consists of the
following two operating segments:
- Domestic
Operations: Includes activities of our five national
programming networks, our streaming services, our AMC Studios
operation, IFC Films and AMC Broadcasting & Technology. Our
national programming networks are AMC, WE tv, BBC AMERICA, IFC, and
SundanceTV. Our streaming services consist of our targeted
subscription streaming services (Acorn TV, Shudder, Sundance Now,
and ALLBLK), AMC+ and other streaming initiatives. Our AMC Studios
operation produces original programming for our programming
networks and also licenses such programming worldwide. IFC Films is
our film distribution business and AMC Networks Broadcasting &
Technology is our technical services business, which primarily
services most of the national programming networks.
-
International and Other: Includes AMC Networks
International (“AMCNI”), our international programming businesses
consisting of a portfolio of channels around the world and 25/7
Media Holdings LLC (formerly Levity), our production services
business.
|
|
|
(2) |
See page 4 for information related to the spin-off of the Levity
LiveCo. |
(3) |
See page 12 for a summary of segment reporting changes. |
|
|
|
Segment Results
(dollars in thousands)
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
|
Change |
Net
Revenues: |
|
|
|
|
|
|
Domestic Operations |
|
$ |
573,969 |
|
|
$ |
611,893 |
|
|
(6.2 |
) |
% |
International and Other |
|
121,167 |
|
|
124,828 |
|
|
(2.9 |
) |
% |
Corporate / Inter-segment Eliminations |
|
(3,395 |
) |
|
(2,346 |
) |
|
n/m |
Total Net Revenues |
|
$ |
691,741 |
|
|
$ |
734,375 |
|
|
(5.8 |
) |
% |
|
|
|
|
|
|
|
Operating Income
(Loss): |
|
|
|
|
|
|
Domestic Operations |
|
$ |
216,459 |
|
|
$ |
224,600 |
|
|
(3.6 |
) |
% |
International and Other |
|
(3,162 |
) |
|
4,361 |
|
|
(172.5 |
) |
% |
Corporate / Inter-segment Eliminations |
|
(43,589 |
) |
|
|
(55,991 |
) |
|
n/m |
Total Operating Income |
|
$ |
169,708 |
|
|
$ |
172,970 |
|
|
(1.9 |
) |
% |
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss): |
|
|
|
|
|
|
Domestic Operations |
|
$ |
242,533 |
|
|
$ |
241,033 |
|
|
0.6 |
|
% |
International and Other |
|
23,563 |
|
|
17,843 |
|
|
32.1 |
|
% |
Corporate / Inter-segment Eliminations |
|
(28,117 |
) |
|
(36,422 |
) |
|
n/m |
Total Adjusted Operating
Income |
|
$ |
237,979 |
|
|
$ |
222,454 |
|
|
7.0 |
|
% |
|
Domestic Operations
-
Domestic Operations revenues for the first quarter decreased 6% to
$574 million compared to the prior year quarter
-
Advertising revenues decreased 7% to $199 million due to shifts in
the timing of the airing of original programming and lower
delivery, partially offset by higher pricing and ad-supported
streaming growth
-
Distribution revenues decreased 6% to $375 million
-
Content licensing revenues decreased 54%, driven by the timing and
availability of original programming, as the result of
pandemic-related production delays
-
Subscription revenues increased 14% driven by robust growth in
streaming revenues, attributable to increased paid streaming
subscribers, partially offset by a low-single digit decrease in
affiliate revenue, attributable to subscriber universe
declines
-
Operating Income decreased 4% to $216 million, and Adjusted
Operating Income increased 1% to $243 million, reflecting a
decrease in operating expenses including lower programming
expenses, partly offset by increased marketing investments to
support the growth of streaming revenue
International and Other
-
International and Other revenues for the first quarter of 2021
decreased 3% to $121 million compared to the prior year quarter
-
Distribution and Other revenues decreased 6% to $100 million
primarily due to live venue closures and the timing of productions
at Levity (prior to the LiveCo spin-off) and a decrease in
distribution revenues at AMCNI
-
Advertising revenues increased 11% largely related to the favorable
impact of foreign currency translation at AMCNI
-
Operating Loss was $3 million compared to Operating Income of $4
million in the prior year period; Adjusted Operating Income
increased 32% to $24 million
-
Operating Loss and Adjusted Operating Income reflected the decrease
in revenues partially offset by the favorable impact of foreign
currency translation and the recovery of bad debt
-
Operating Loss reflected a $16 million charge related to the Levity
LiveCo spin-off transaction
Other Matters
Levity Spin-off Transaction
In March 2021, the Company completed a spin-off
of the live comedy venue and talent management businesses
("LiveCo") of Levity Entertainment Group, LLC. In connection with
the transaction, the Company effectively exchanged all of its
rights and interests in LiveCo for the release of its obligations,
principally related to leases. As a result of this divestiture, the
Company recognized a loss on the disposal of $16.1 million
reflecting the net assets transferred (consisting of property and
equipment, lease right-of-use assets and intangibles, partially
offset by lease and other obligations), which is included in
Impairment and other charges. The Company retained its interest in
the production services business of Levity Entertainment Group,
LLC, which was renamed 25/7 Media Holdings LLC following the
spin-off.
Amendment to Amended and Restated Credit
Agreement
As previously disclosed, on February 8,
2021, AMC Networks entered into Amendment No. 1 to its
existing Credit Agreement. Amendment No. 1 extends the maturity
dates of the $675 million term loan A facility
and $500 million revolving credit facility under the
Credit Agreement to February 8, 2026, and makes certain other
amendments to the covenants and other provisions of the Credit
Agreement.
Senior Notes Issuance / Debt Redemption
As previously disclosed, on February 8,
2021, AMC Networks issued $1.0
billion aggregate principal amount of 4.25% senior notes
due February 15, 2029 in a registered public offering and
received net proceeds of $982.3 million, after deducting
underwriting discounts, commissions and expenses. The Company used
the net proceeds to redeem (i) the remaining $400
million principal amount of the Company’s 4.75% senior notes
due 2022 and (ii) $600 million principal amount of the
Company’s 5.00% senior notes due 2024 on February 26,
2021.
Stock Repurchase Program
As previously disclosed, the Company’s Board of
Directors has authorized a program to repurchase up to $1.5 billion
of the Company’s 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 first quarter 2021, the Company did not repurchase any
shares. As of March 31, 2021, the Company had $135 million
available for repurchase under the stock repurchase program.
Restructuring and Other Related Charges
In November 2020, management commenced a
restructuring plan (the “2020 Plan”) designed to streamline the
Company’s operations through a reduction of its domestic workforce.
The 2020 Plan is intended to improve the organizational design of
the Company through the elimination of certain roles and
centralization of certain functional areas of the Company. In
connection with the 2020 Plan, in the first quarter 2021, the
Company incurred severance and other personnel costs of $4.1
million. Additional restructuring and other related charges for
first quarter 2021 were $4.5 million, which related to costs
associated with the termination of distribution in certain
territories.
Please see the Company’s Form 10-Q for the
period ended March 31, 2021 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 and other 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, 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 other charges (including gains or losses on sales or
dispositions of businesses); non-cash impairments of goodwill,
intangible and fixed assets; restructuring and other related
charges; and 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 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 first quarter 2021 results. To
listen to the call, visit http://www.amcnetworks.com or dial
833-714-3268, using the following conference ID: 4983104.
About AMC Networks Inc.
AMC Networks is a global entertainment company
known for its popular and critically-acclaimed content. Its
portfolio of brands includes AMC, BBC AMERICA (operated through a
joint venture with BBC Studios), IFC, SundanceTV, WE tv, IFC Films,
and a number of fast-growing streaming services, including the AMC+
premium streaming bundle, Acorn TV, Shudder, Sundance Now and
ALLBLK. AMC Studios, the Company’s in-house studio, production and
distribution operation, is behind award-winning owned series and
franchises, including The Walking Dead, the highest-rated series in
cable history. The Company also operates AMC Networks
International, its international programming business, and 25/7
Media, its production services business.
Contacts
Investor Relations |
Corporate Communications |
Nicholas Seibert (646) 740-5749 |
Georgia Juvelis (917)
542-6390 |
nicholas.seibert@amcnetworks.com |
georgia.juvelis@amcnetworks.com |
|
|
AMC NETWORKS
INC.CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share
amounts)(unaudited)
|
|
Three Months Ended March 31, |
|
|
2021 |
|
2020 |
Revenues, net |
|
$ |
691,741 |
|
|
$ |
734,375 |
|
Operating expenses: |
|
|
|
|
Technical and operating (excluding depreciation and
amortization) |
|
280,572 |
|
|
344,060 |
|
Selling, general and administrative |
|
191,535 |
|
|
184,649 |
|
Depreciation and amortization |
|
25,246 |
|
|
26,730 |
|
Impairment and other charges |
|
16,055 |
|
|
— |
|
Restructuring and other related charges |
|
8,625 |
|
|
5,966 |
|
|
|
522,033 |
|
|
561,405 |
|
Operating income |
|
169,708 |
|
|
172,970 |
|
Other income (expense): |
|
|
|
|
Interest expense |
|
(34,742 |
) |
|
(37,564 |
) |
Interest income |
|
2,342 |
|
|
4,555 |
|
Loss on extinguishment of debt |
|
(22,074 |
) |
|
(2,908 |
) |
Miscellaneous, net |
|
5,406 |
|
|
(29,939 |
) |
|
|
(49,068 |
) |
|
(65,856 |
) |
Income from operations before
income taxes |
|
120,640 |
|
|
107,114 |
|
Income tax expense |
|
(25,915 |
) |
|
(33,588 |
) |
Net income including
noncontrolling interests |
|
94,725 |
|
|
73,526 |
|
Net income attributable to
noncontrolling interests |
|
(7,704 |
) |
|
(4,859 |
) |
Net income attributable to AMC
Networks’ stockholders |
|
$ |
87,021 |
|
|
$ |
68,667 |
|
|
|
|
|
|
Net income per share
attributable to AMC Networks’ stockholders: |
|
|
|
|
Basic |
|
$ |
2.08 |
|
|
$ |
1.24 |
|
Diluted |
|
$ |
2.02 |
|
|
$ |
1.22 |
|
|
|
|
|
|
Weighted average common
shares: |
|
|
|
|
Basic |
|
41,930 |
|
|
55,477 |
|
Diluted |
|
43,171 |
|
|
56,061 |
|
|
|
|
|
|
|
|
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL DATA
(Dollars in
thousands)(Unaudited)
|
Three Months Ended March 31, 2021 |
|
Domestic Operations |
|
International and Other |
|
Corporate /Inter-segment Eliminations |
|
Consolidated |
Operating income (loss) |
$ |
216,459 |
|
|
$ |
(3,162 |
) |
|
$ |
(43,589 |
) |
|
$ |
169,708 |
|
Share-based compensation expense |
5,639 |
|
|
1,231 |
|
|
6,576 |
|
|
13,446 |
|
Depreciation and amortization |
13,373 |
|
|
4,949 |
|
|
6,924 |
|
|
25,246 |
|
Impairment and other charges |
— |
|
|
16,055 |
|
|
— |
|
|
16,055 |
|
Restructuring and other related charges |
2,427 |
|
|
4,490 |
|
|
1,708 |
|
|
8,625 |
|
Cloud computing amortization |
— |
|
|
— |
|
|
264 |
|
|
264 |
|
Majority owned equity investees AOI |
4,635 |
|
|
— |
|
|
— |
|
|
4,635 |
|
Adjusted operating income (loss) |
$ |
242,533 |
|
|
$ |
23,563 |
|
|
$ |
(28,117 |
) |
|
$ |
237,979 |
|
|
|
Three Months Ended March 31, 2020 |
|
Domestic Operations |
|
International and Other |
|
Corporate /Inter-segment Eliminations |
|
Consolidated |
Operating income (loss) |
$ |
224,600 |
|
|
$ |
4,361 |
|
|
$ |
(55,991 |
) |
|
$ |
172,970 |
|
Share-based compensation expense |
2,724 |
|
|
609 |
|
|
12,179 |
|
|
15,512 |
|
Depreciation and amortization |
10,951 |
|
|
8,896 |
|
|
6,883 |
|
|
26,730 |
|
Restructuring and other related charges |
1,482 |
|
|
3,977 |
|
|
507 |
|
|
5,966 |
|
Majority owned equity investees AOI |
1,276 |
|
|
— |
|
|
— |
|
|
1,276 |
|
Adjusted operating income (loss) |
$ |
241,033 |
|
|
$ |
17,843 |
|
|
$ |
(36,422 |
) |
|
$ |
222,454 |
|
|
|
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL DATA
(In thousands)(Unaudited)
Capitalization |
March 31, 2021 |
|
Cash and cash equivalents |
$ |
993,123 |
|
|
|
|
|
Credit facility debt (a) |
$ |
675,000 |
|
|
Senior notes (a) |
2,200,000 |
|
|
Total debt |
$ |
2,875,000 |
|
|
|
|
|
Net debt |
$ |
1,881,877 |
|
|
|
|
|
Finance leases |
30,093 |
|
|
Net debt and finance leases |
$ |
1,911,970 |
|
|
|
|
|
|
Twelve Months Ended March 31, 2021 |
|
Operating Income (GAAP) |
$ |
439,382 |
|
|
Share-based compensation expense |
50,842 |
|
|
Depreciation and amortization |
103,122 |
|
|
Impairment and other charges |
138,282 |
|
|
Restructuring and other related charges |
37,727 |
|
|
Cloud computing amortization |
464 |
|
|
Majority owned equity investees |
12,317 |
|
|
Adjusted Operating Income (Non-GAAP) |
$ |
782,136 |
|
|
|
|
|
Leverage ratio (b) |
2.4 |
|
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 March 31, 2021. 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 |
Three Months Ended March 31, |
|
2021 |
|
2020 |
Net cash provided by operating activities |
$ |
107,563 |
|
|
$ |
198,408 |
|
Less: capital expenditures |
(8,537) |
|
|
(12,916) |
|
Less: distributions to noncontrolling interests |
(2,464) |
|
|
(3,081) |
|
Free cash flow |
$ |
96,562 |
|
|
$ |
182,411 |
|
Adjusted
Earnings Per Diluted Share |
|
Three Months Ended March 31, 2021 |
|
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) |
$ |
120,640 |
|
|
$ |
(25,915) |
|
|
$ |
(7,704) |
|
|
$ |
87,021 |
|
|
$ |
2.02 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
9,541 |
|
|
(1,496) |
|
|
(3,027) |
|
|
5,018 |
|
|
0.11 |
|
Impairment and other charges |
16,055 |
|
|
(3,824) |
|
|
— |
|
|
12,231 |
|
|
0.28 |
|
Restructuring and other related charges |
8,625 |
|
|
(986) |
|
|
(29) |
|
|
7,610 |
|
|
0.18 |
|
Loss on extinguishment of debt |
22,074 |
|
|
(5,257) |
|
|
— |
|
|
16,817 |
|
|
0.39 |
|
Adjusted Results (Non-GAAP) |
$ |
176,935 |
|
|
$ |
(37,478) |
|
|
$ |
(10,760) |
|
|
$ |
128,697 |
|
|
$ |
2.98 |
|
|
Three Months Ended March 31, 2020 |
|
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) |
$ |
107,114 |
|
|
$ |
(33,588 |
) |
|
$ |
(4,859 |
) |
|
$ |
68,667 |
|
|
$ |
1.22 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
12,132 |
|
|
(2,023 |
) |
|
(3,027 |
) |
|
7,082 |
|
|
0.13 |
|
Restructuring and other related charges |
5,966 |
|
|
(1,458 |
) |
|
— |
|
|
4,508 |
|
|
0.08 |
|
Loss on extinguishment of debt |
2,908 |
|
|
(693 |
) |
|
— |
|
|
2,215 |
|
|
0.04 |
|
Adjusted Results
(Non-GAAP) |
$ |
128,120 |
|
|
$ |
(37,762 |
) |
|
$ |
(7,886 |
) |
|
$ |
82,472 |
|
|
$ |
1.47 |
|
|
Summary of Segment Reporting
Changes
The following tables present a reconciliation
from our historical segments to our new segments for three months
ended March 31, 2020. Segment changes consist of the following:
- The
Company’s streaming services and IFC Films, previously in
International and Other are now included within the Domestic
Operations Segment (formerly referred to as the National Networks
segment)
-
Corporate overhead costs will no longer be allocated to the
operating segments. Corporate overhead includes such costs as
executive salaries and benefits, costs of maintaining corporate
headquarters, facilities and common support functions (such as
human resources, legal, finance, strategic planning and information
technology).
|
Three months ended March 31, 2020 |
|
As Originally Reported |
|
Segment Changes |
|
Corporate / Inter-segment Eliminations |
|
Recast |
Revenue |
|
|
|
|
|
|
|
National Networks/Domestic Operations |
$ |
566,939 |
|
|
$ |
51,042 |
|
|
$ |
(6,088 |
) |
|
$ |
611,893 |
|
International and Other |
170,494 |
|
|
(51,042 |
) |
|
5,376 |
|
|
124,828 |
|
Inter-segment
Eliminations |
(3,058 |
) |
|
— |
|
|
712 |
|
|
(2,346 |
) |
Total Consolidated
Revenue |
$ |
734,375 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
734,375 |
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income |
|
|
|
|
|
|
|
National Networks/Domestic
Operations |
$ |
217,587 |
|
|
$ |
(3,731 |
) |
|
$ |
27,177 |
|
|
$ |
241,033 |
|
International and Other |
7,671 |
|
|
3,731 |
|
|
6,441 |
|
|
17,843 |
|
Corporate / Inter-segment
Eliminations |
(2,804 |
) |
|
— |
|
|
(33,618 |
) |
|
(36,422 |
) |
Total Consolidated Adjusted
Operating Income |
$ |
222,454 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
222,454 |
|
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