AMC Networks Inc. (“AMC Networks” or the “Company”) (NASDAQ: AMCX)
today reported financial results for the fourth quarter and full
year ended December 31, 2021.
Interim Chief Executive Officer Matt
Blank said: "2021 was a strong, pivotal year for AMC
Networks. We met or exceeded all of our guidance metrics,
delivering the highest revenue in our company's history and
full-year U.S. advertising and subscription growth reinforcing the
strength of our core business. We ended the year with more than
nine million paid streaming subscribers, a significant milestone
driven by the strength of our streaming brands and the depth of
content within each of our offerings, and with our acquisition of
global anime content distributor Sentai and the HIDIVE anime
streaming service, we deepened our position as the global leader in
targeted streaming. Looking ahead, 2022 will be the biggest year
for original content in our history, including the
highly-anticipated returns of Better Call Saul and Killing Eve. We
have great confidence in our unique streaming model and we're more
confident than ever that we're pursuing the right strategy for our
company, for the audiences we serve, and for our shareholders."
Full Year Financial
Highlights:
- Net revenues
increased 9% to $3.1 billion as compared to the prior year, driven
by growth in streaming and advertising revenues
- Operating Income
increased 11% to $490 million; Adjusted Operating Income(1)
increased 6.5% to $816 million
- Diluted EPS of
$5.77; Record Adjusted EPS(1) of $9.64
Fourth Quarter Financial
Highlights:
- Net revenues
increased 3% to $804 million as compared to the prior year quarter,
driven by growth in streaming and advertising revenues
- Operating income of
$64 million; Adjusted Operating Income of $103 million
- Diluted EPS of
$0.39; Adjusted EPS of $0.54
Dollars in thousands, except per share amounts |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2021 |
|
|
2020 |
|
Change |
|
|
2021 |
|
|
2020 |
|
Change |
Net Revenues |
$ |
803,709 |
|
$ |
780,275 |
|
3.0 |
% |
|
$ |
3,077,608 |
|
$ |
2,814,956 |
|
9.3 |
% |
Operating Income |
$ |
63,632 |
|
$ |
81,395 |
|
(21.8 |
)% |
|
$ |
489,922 |
|
$ |
442,644 |
|
10.7 |
% |
Adjusted Operating Income |
$ |
102,763 |
|
$ |
133,388 |
|
(23.0 |
)% |
|
$ |
816,070 |
|
$ |
766,611 |
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share |
$ |
0.39 |
|
$ |
2.09 |
|
(81.3 |
)% |
|
$ |
5.77 |
|
$ |
4.64 |
|
24.4 |
% |
Adjusted Diluted Earnings Per Share |
$ |
0.54 |
|
$ |
2.72 |
|
(80.1 |
)% |
|
$ |
9.64 |
|
$ |
7.76 |
|
24.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
99,490 |
|
$ |
104,649 |
|
(4.9 |
)% |
|
$ |
143,474 |
|
$ |
748,736 |
|
(80.8 |
)% |
Free Cash Flow(1) |
$ |
72,379 |
|
$ |
91,180 |
|
(20.6 |
)% |
|
$ |
71,488 |
|
$ |
686,322 |
|
(89.6 |
)% |
Operational Highlights:
-
Achieved record full year revenue of $3.1 billion in 2021 with
growth of 9%
-
Ended 2021 with more than 9 million aggregate paid streaming
subscribers
-
Acquired global anime distributor Sentai, including
direct-to-consumer anime platform HIDIVE
-
Executed a comprehensive agreement for the continued carriage of
AMC Networks’ leading portfolio of networks and streaming services
to Comcast Cable's Xfinity TV, broadband and XClass customers
-
Enabled industry’s first linear addressable programmatic ad buys
with household-level data targeting on linear cable networks
-
Launched the AMC+ premium subscription bundle in Canada and
Australia on Apple TV channels and Amazon Prime Video Channels
-
Further expansion of key franchises with renewal of Fear the
Walking Dead for an eighth season, commencement of production of
Anne Rice's Interview with the Vampire and greenlight of Anne
Rice's Mayfair Witches
Segment Results(dollars in
thousands)
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2021 |
|
|
|
2020 |
|
|
Change |
|
|
2021 |
|
|
|
2020 |
|
|
Change |
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
684,886 |
|
|
$ |
659,711 |
|
|
3.8 |
% |
|
$ |
2,580,616 |
|
|
$ |
2,381,401 |
|
|
8.4 |
% |
International and Other |
|
121,933 |
|
|
|
126,322 |
|
|
(3.5 |
)% |
|
|
511,317 |
|
|
|
453,230 |
|
|
12.8 |
% |
Corporate / Inter-segment Eliminations |
|
(3,110 |
) |
|
|
(5,758 |
) |
|
(46.0 |
)% |
|
|
(14,325 |
) |
|
|
(19,675 |
) |
|
(27.2 |
)% |
Total Net Revenues |
$ |
803,709 |
|
|
$ |
780,275 |
|
|
3.0 |
% |
|
$ |
3,077,608 |
|
|
$ |
2,814,956 |
|
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
100,001 |
|
|
$ |
113,425 |
|
|
(11.8 |
)% |
|
$ |
617,875 |
|
|
$ |
734,871 |
|
|
(15.9 |
)% |
International and Other |
|
4,802 |
|
|
|
8,775 |
|
|
(45.3 |
)% |
|
|
37,167 |
|
|
|
(109,365 |
) |
|
134.0 |
% |
Corporate / Inter-segment Eliminations |
|
(41,171 |
) |
|
|
(40,805 |
) |
|
0.9 |
% |
|
|
(165,120 |
) |
|
|
(182,862 |
) |
|
(9.7 |
)% |
Total Operating Income |
$ |
63,632 |
|
|
$ |
81,395 |
|
|
(21.8 |
)% |
|
$ |
489,922 |
|
|
$ |
442,644 |
|
|
10.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
121,692 |
|
|
$ |
144,954 |
|
|
(16.0 |
)% |
|
$ |
845,441 |
|
|
$ |
827,954 |
|
|
2.1 |
% |
International and Other |
|
12,517 |
|
|
|
6,382 |
|
|
96.1 |
% |
|
|
83,294 |
|
|
|
48,725 |
|
|
70.9 |
% |
Corporate / Inter-segment Eliminations |
|
(31,446 |
) |
|
|
(17,948 |
) |
|
(75.2 |
)% |
|
|
(112,665 |
) |
|
|
(110,068 |
) |
|
(2.4 |
)% |
Total Adjusted Operating Income |
$ |
102,763 |
|
|
$ |
133,388 |
|
|
(23.0 |
)% |
|
$ |
816,070 |
|
|
$ |
766,611 |
|
|
6.5 |
% |
Domestic Operations
Full Year Results:
-
Domestic Operations revenues increased 8% to $2.6 billion compared
to the prior year
-
Distribution revenues increased 10% to $1.7 billion
-
Subscription revenues increased 15% due to increased streaming
revenues, partially offset by a low-single digit decrease in linear
affiliate revenues, attributable to declines in the linear
subscriber universe
-
Content licensing and other revenues decreased 4%, due to a lower
number of original programs distributed as compared to the prior
year
-
Advertising revenues increased 5% to $845 million reflecting higher
pricing and ad-supported streaming growth, partially offset by
lower linear ratings
-
Operating Income decreased 16% to $618 million, reflecting
impairment and other charges associated with a one-time
litigation-related settlement payment
-
Adjusted Operating Income increased 2% to $845 million, reflecting
increases in distribution and advertising revenues, partially
offset by an increase in streaming investments including increased
subscriber acquisition and retention marketing investments and
programming investments to support the continued growth of our
streaming and digital services
Fourth Quarter Results:
-
Domestic Operations revenues increased 4% to $685 million compared
to the prior year quarter
-
Distribution revenues increased 7% to $451 million
-
Subscription revenues increased 11% due to increased streaming
revenues, partially offset by a decrease in linear affiliate
revenues, attributable to declines in the linear subscriber
universe
-
Excluding the impact of a one-time payment associated with a
distribution agreement in the prior year quarter, linear affiliate
revenues declined in the low-single digits
-
Content licensing and other revenues decreased 4%, due to a lower
number of original programs distributed as compared to the prior
year quarter
-
Advertising revenues decreased 1% to $234 million reflecting higher
pricing and ad-supported streaming growth, offset by lower linear
ratings
-
Operating Income decreased 12% to $100 million
-
Adjusted Operating Income decreased 16% to $122 million, reflecting
increased investments in subscriber acquisition and retention
marketing to support the continued growth of our streaming
services
International and Other
Full Year Results:
-
International and Other revenues increased 13% to $511 million
compared to the prior year; excluding the impact of foreign
currency translation, revenues increased 9%
-
Distribution revenues increased 7% to $406 million due to the
resumption of production from COVID related delays at 25/7 Media as
well as the favorable impact of foreign currency translation at
AMCNI
-
Advertising revenues increased 42% to $106 million due to higher
pricing and increased ratings as well as the favorable impact of
foreign currency translation at AMCNI
-
Operating Income was $37 million
-
Adjusted Operating Income increased 71% to $83 million, reflecting
increases in revenues, partially offset by increases in selling,
general and administrative expenses; excluding the impact of
foreign currency translation, Adjusted Operating Income increased
56%
Fourth Quarter Results:
-
International and Other revenues decreased 3% to $122 million
compared to the prior year quarter
-
Distribution revenues decreased 15% to $89 million due to the
timing of productions at 25/7 Media
-
Advertising revenues increased 54% to $33 million due to higher
pricing and increased ratings
-
Operating Income decreased $4 million to $5 million in the quarter,
which included a credit to impairment and other charges of $8
million associated with certain early lease exits at AMCNI in the
prior year quarter
- Excluding the impact of the prior year
quarter impairment and other charges credit, operating income
increased $4 million, reflecting lower operating expenses,
partially offset by the decrease in distribution revenues
-
Adjusted Operating Income increased $6 million to $13 million,
reflecting lower operating expenses, partially offset by decreased
revenues
Other Matters
Acquisition of Sentai Holdings, LLC
In December 2021, the Company acquired Sentai
Holdings, LLC, a leading global supplier of anime content and anime
merchandise, with brands including the anime-focused HIDIVE
direct-to-consumer subscription streaming service.
Stock Repurchase Program & Outstanding
Shares
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 Stock
Repurchase Program has no pre-established closing date and may be
suspended or discontinued at any time. During the year ended
December 31, 2021, the Company did not repurchase any shares. As of
December 31, 2021, the Company had $135 million of authorization
remaining for repurchase under the Stock Repurchase Program.
As of February 9, 2022 the Company had
30,891,692 shares of Class A Common Stock and 11,484,408 shares of
Class B Common Stock outstanding.
Please see the Company’s Form 10-K for the
period ended December 31, 2021, which will be filed later today,
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 share-based compensation expense or benefit,
depreciation and amortization, impairment and other charges
(including gains or losses on sales or dispositions of businesses),
restructuring and other related charges, cloud computing
amortization, and including the Company’s proportionate share of
adjusted operating income (loss) from majority owned equity method
investees. From time to time, we may exclude the impact of certain
events, gains, losses or other charges (such as significant legal
settlements) from AOI that affect our operating performance.
Because it is based upon operating income (loss), Adjusted
Operating Income (Loss) also excludes interest expense (including
cash interest expense) and other non-operating income and expense
items. The Company believes that the exclusion of share-based
compensation expense or benefit allows investors to better track
the performance of the various operating units of the business
without regard to the effect of the settlement of an obligation
that is not expected to be made in cash.
The Company believes that Adjusted Operating Income
(Loss) is an appropriate measure for evaluating the operating
performance of the business segments and the Company on a
consolidated basis. Adjusted Operating Income (Loss) and similar
measures with similar titles are common performance measures used
by investors, analysts and peers to compare performance in the
industry.
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 pages 8-9 of this release.
The Company defines Free Cash Flow, which is a
non-GAAP financial measure, as net cash provided by operating
activities less capital expenditures 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 11-12 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 2021
results. To listen to the call, visit http://www.amcnetworks.com or
dial 833-714-3268, using the following conference ID: 8714225.
About AMC Networks Inc.
AMC Networks (Nasdaq: AMCX) is a global
entertainment company known for its popular and
critically-acclaimed content. Its brands include targeted streaming
services AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK, and the
newest addition to its targeted streaming portfolio, the
anime-focused HIDIVE streaming service, in addition to AMC, BBC
AMERICA (operated through a joint venture with BBC Studios), IFC,
SundanceTV, WE tv and IFC Films. AMC Studios, the Company’s
in-house studio, production and distribution operation, is behind
some of the biggest titles and brands known to a global audience,
including The Walking Dead, the Anne Rice catalog and the Agatha
Christie library. 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
(Dollars in thousands, except per share
amounts)(unaudited)
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Revenues, net |
$ |
803,709 |
|
|
$ |
780,275 |
|
|
$ |
3,077,608 |
|
|
$ |
2,814,956 |
|
Operating expenses: |
|
|
|
|
|
|
|
Technical and operating (excluding depreciation and
amortization) |
|
434,406 |
|
|
|
441,212 |
|
|
|
1,432,083 |
|
|
|
1,401,591 |
|
Selling, general and administrative |
|
281,570 |
|
|
|
220,239 |
|
|
|
891,734 |
|
|
|
708,820 |
|
Depreciation and amortization |
|
22,620 |
|
|
|
24,424 |
|
|
|
93,881 |
|
|
|
104,606 |
|
Impairment and other charges |
|
637 |
|
|
|
(8,184 |
) |
|
|
159,610 |
|
|
|
122,227 |
|
Restructuring and other related charges |
|
844 |
|
|
|
21,189 |
|
|
|
10,378 |
|
|
|
35,068 |
|
|
|
740,077 |
|
|
|
698,880 |
|
|
|
2,587,686 |
|
|
|
2,372,312 |
|
Operating income |
|
63,632 |
|
|
|
81,395 |
|
|
|
489,922 |
|
|
|
442,644 |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest expense |
|
(31,399 |
) |
|
|
(33,327 |
) |
|
|
(129,073 |
) |
|
|
(138,610 |
) |
Interest income |
|
2,629 |
|
|
|
18,756 |
|
|
|
10,243 |
|
|
|
30,032 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(22,074 |
) |
|
|
(2,908 |
) |
Miscellaneous, net |
|
5,580 |
|
|
|
81,309 |
|
|
|
25,214 |
|
|
|
71,221 |
|
|
|
(23,190 |
) |
|
|
66,738 |
|
|
|
(115,690 |
) |
|
|
(40,265 |
) |
Income from operations before income taxes |
|
40,442 |
|
|
|
148,133 |
|
|
|
374,232 |
|
|
|
402,379 |
|
Income tax expense |
|
(16,413 |
) |
|
|
(49,901 |
) |
|
|
(94,393 |
) |
|
|
(145,391 |
) |
Net income including noncontrolling interests |
|
24,029 |
|
|
|
98,232 |
|
|
|
279,839 |
|
|
|
256,988 |
|
Net income attributable to noncontrolling interests |
|
(6,990 |
) |
|
|
(3,521 |
) |
|
|
(29,243 |
) |
|
|
(17,009 |
) |
Net income attributable to AMC Networks’ stockholders |
$ |
17,039 |
|
|
|
94,711 |
|
|
$ |
250,596 |
|
|
$ |
239,979 |
|
|
|
|
|
|
|
|
|
Net income per
share attributable to AMC Networks’ stockholders: |
|
|
|
|
Basic |
$ |
0.40 |
|
|
$ |
2.15 |
|
|
$ |
5.92 |
|
|
$ |
4.70 |
|
Diluted |
$ |
0.39 |
|
|
$ |
2.09 |
|
|
$ |
5.77 |
|
|
$ |
4.64 |
|
|
|
|
|
|
|
|
|
Weighted average common shares: |
|
|
|
|
|
|
|
Basic |
|
42,518 |
|
|
|
43,990 |
|
|
|
42,361 |
|
|
|
51,016 |
|
Diluted |
|
43,755 |
|
|
|
45,228 |
|
|
|
43,439 |
|
|
|
51,733 |
|
AMC NETWORKS INC.
SUPPLEMENTAL FINANCIAL DATA (Dollars in
thousands) (Unaudited)
|
Three Months Ended December 31, 2021 |
|
Domestic Operations |
|
International and Other |
|
Corporate / Inter-segment Eliminations |
|
Consolidated |
Operating income (loss) |
$ |
100,001 |
|
$ |
4,802 |
|
$ |
(41,171 |
) |
|
$ |
63,632 |
Share-based compensation expenses |
|
4,972 |
|
|
938 |
|
|
2,852 |
|
|
|
8,762 |
Depreciation and amortization |
|
11,347 |
|
|
5,330 |
|
|
5,943 |
|
|
|
22,620 |
Impairment and other charges |
|
— |
|
|
637 |
|
|
— |
|
|
|
637 |
Restructuring and other related charges |
|
8 |
|
|
810 |
|
|
26 |
|
|
|
844 |
Cloud computing amortization |
|
— |
|
|
— |
|
|
904 |
|
|
|
904 |
Majority owned equity investees AOI |
|
5,364 |
|
|
— |
|
|
— |
|
|
|
5,364 |
Adjusted operating income (loss) |
$ |
121,692 |
|
$ |
12,517 |
|
$ |
(31,446 |
) |
|
$ |
102,763 |
|
Three Months Ended December 31, 2020 |
|
Domestic Operations |
|
International and Other |
|
Corporate / Inter-segment Eliminations |
|
Consolidated |
Operating income (loss) |
$ |
113,425 |
|
|
$ |
8,775 |
|
|
$ |
(40,805 |
) |
|
$ |
81,395 |
|
Share-based compensation expenses |
|
(1,400 |
) |
|
|
551 |
|
|
|
10,617 |
|
|
|
9,768 |
|
Depreciation and amortization |
|
12,524 |
|
|
|
5,069 |
|
|
|
6,830 |
|
|
|
24,423 |
|
Impairment and other charges |
|
— |
|
|
|
(8,184 |
) |
|
|
— |
|
|
|
(8,184 |
) |
Restructuring and other related charges |
|
15,808 |
|
|
|
171 |
|
|
|
5,210 |
|
|
|
21,189 |
|
Cloud computing amortization |
|
— |
|
|
|
— |
|
|
|
200 |
|
|
|
200 |
|
Majority owned equity investees AOI |
|
4,597 |
|
|
|
— |
|
|
|
— |
|
|
|
4,597 |
|
Adjusted operating income
(loss) |
$ |
144,954 |
|
|
$ |
6,382 |
|
|
$ |
(17,948 |
) |
|
$ |
133,388 |
|
|
Twelve Months Ended December 31, 2021 |
|
Domestic Operations |
|
International and Other |
|
Corporate / Inter-segment Eliminations |
|
Consolidated |
Operating income (loss) |
$ |
617,875 |
|
$ |
37,167 |
|
$ |
(165,120 |
) |
|
$ |
489,922 |
Share-based compensation expenses |
|
22,077 |
|
|
3,627 |
|
|
22,221 |
|
|
|
47,925 |
Depreciation and amortization |
|
48,025 |
|
|
19,807 |
|
|
26,049 |
|
|
|
93,881 |
Impairment and other charges |
|
143,000 |
|
|
16,610 |
|
|
— |
|
|
|
159,610 |
Restructuring and other related charges |
|
2,516 |
|
|
6,083 |
|
|
1,779 |
|
|
|
10,378 |
Cloud computing amortization |
|
— |
|
|
— |
|
|
2,406 |
|
|
|
2,406 |
Majority owned equity investees AOI |
|
11,948 |
|
|
— |
|
|
— |
|
|
|
11,948 |
Adjusted operating income
(loss) |
$ |
845,441 |
|
$ |
83,294 |
|
$ |
(112,665 |
) |
|
$ |
816,070 |
|
Twelve Months Ended December 31, 2020 |
|
Domestic Operations |
|
International and Other |
|
Corporate / Inter-segment Eliminations |
|
Consolidated |
Operating income (loss) |
$ |
734,871 |
|
$ |
(109,365 |
) |
|
$ |
(182,862 |
) |
|
$ |
442,644 |
Share-based compensation expenses |
|
10,605 |
|
|
2,988 |
|
|
|
39,315 |
|
|
|
52,908 |
Depreciation and amortization |
|
50,574 |
|
|
26,465 |
|
|
|
27,567 |
|
|
|
104,606 |
Impairment and other charges |
|
— |
|
|
122,227 |
|
|
|
— |
|
|
|
122,227 |
Restructuring and other related charges |
|
22,946 |
|
|
6,410 |
|
|
|
5,712 |
|
|
|
35,068 |
Cloud computing amortization |
|
— |
|
|
— |
|
|
|
200 |
|
|
|
200 |
Majority owned equity investees AOI |
|
8,958 |
|
|
— |
|
|
|
— |
|
|
|
8,958 |
Adjusted operating income
(loss) |
$ |
827,954 |
|
$ |
48,725 |
|
|
$ |
(110,068 |
) |
|
$ |
766,611 |
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL DATA
(Dollars in
thousands)(Unaudited)
Capitalization |
December 31, 2021 |
|
Cash and cash equivalents |
$ |
892,221 |
|
|
|
|
Credit facility debt (a) |
$ |
675,000 |
|
Senior notes (a) |
|
2,200,000 |
|
Total debt |
$ |
2,875,000 |
|
|
|
|
Net debt |
$ |
1,982,779 |
|
|
|
|
Finance leases |
|
27,187 |
|
Net debt and finance leases |
$ |
2,009,966 |
|
|
|
|
|
Twelve Months Ended December 31, 2021 |
|
Operating Income (GAAP) |
$ |
489,922 |
|
Share-based compensation expense |
|
47,925 |
|
Depreciation and amortization |
|
93,881 |
|
Impairment and other charges |
|
159,610 |
|
Restructuring and other related charges |
|
10,378 |
|
Cloud computing amortization |
|
2,406 |
|
Majority owned equity investees |
|
11,948 |
|
Adjusted Operating Income (Non-GAAP) |
$ |
816,070 |
|
|
|
|
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, 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 December 31, |
|
Twelve Months Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net cash provided by operating activities |
$ |
99,490 |
|
|
$ |
104,649 |
|
|
$ |
143,474 |
|
|
$ |
748,736 |
|
Less: capital expenditures |
|
(12,603 |
) |
|
|
(11,605 |
) |
|
|
(42,572 |
) |
|
|
(46,595 |
) |
Less: distributions to noncontrolling interests |
|
(14,508 |
) |
|
|
(1,864 |
) |
|
|
(29,414 |
) |
|
|
(15,819 |
) |
Free cash flow |
$ |
72,379 |
|
|
$ |
91,180 |
|
|
$ |
71,488 |
|
|
$ |
686,322 |
|
Adjusted Earnings Per Diluted Share |
|
Three Months Ended December 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) |
$ |
40,442 |
|
$ |
(16,413 |
) |
|
$ |
(6,990 |
) |
|
$ |
17,039 |
|
$ |
0.39 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
9,995 |
|
|
(1,613 |
) |
|
|
(2,952 |
) |
|
|
5,430 |
|
|
0.12 |
Impairment and other charges |
|
637 |
|
|
171 |
|
|
|
— |
|
|
|
808 |
|
|
0.02 |
Restructuring and other related charges |
|
844 |
|
|
(394 |
) |
|
|
— |
|
|
|
450 |
|
|
0.01 |
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Adjusted Results (Non-GAAP) |
$ |
51,918 |
|
$ |
(18,249 |
) |
|
$ |
(9,942 |
) |
|
$ |
23,727 |
|
$ |
0.54 |
|
Three Months Ended December 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) |
$ |
148,133 |
|
|
$ |
(49,901 |
) |
|
$ |
(3,521 |
) |
|
$ |
94,711 |
|
$ |
2.09 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
9,582 |
|
|
|
(1,025 |
) |
|
|
(3,028 |
) |
|
|
5,529 |
|
|
0.13 |
Impairment charges |
|
(8,184 |
) |
|
|
15,419 |
|
|
|
— |
|
|
|
7,235 |
|
|
0.16 |
Restructuring and other related charges |
|
21,189 |
|
|
|
(4,540 |
) |
|
|
(1,317 |
) |
|
|
15,332 |
|
|
0.34 |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Adjusted Results (Non-GAAP) |
$ |
170,720 |
|
|
$ |
(40,047 |
) |
|
$ |
(7,866 |
) |
|
$ |
122,807 |
|
$ |
2.72 |
|
Twelve Months Ended December 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) |
$ |
374,232 |
|
$ |
(94,393 |
) |
|
$ |
(29,243 |
) |
|
$ |
250,596 |
|
$ |
5.77 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
39,072 |
|
|
(6,274 |
) |
|
|
(11,880 |
) |
|
|
20,918 |
|
|
0.48 |
Impairment charges |
|
159,610 |
|
|
(37,907 |
) |
|
|
— |
|
|
|
121,703 |
|
|
2.80 |
Restructuring and other related charges |
|
10,378 |
|
|
(1,813 |
) |
|
|
12 |
|
|
|
8,577 |
|
|
0.20 |
Loss on extinguishment of debt |
|
22,074 |
|
|
(5,257 |
) |
|
|
— |
|
|
|
16,817 |
|
|
0.39 |
Adjusted Results (Non-GAAP) |
$ |
605,366 |
|
$ |
(145,644 |
) |
|
$ |
(41,111 |
) |
|
$ |
418,611 |
|
$ |
9.64 |
|
Twelve Months Ended December 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) |
$ |
402,379 |
|
$ |
(145,391 |
) |
|
$ |
(17,009 |
) |
|
$ |
239,979 |
|
$ |
4.64 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
42,224 |
|
|
(6,438 |
) |
|
|
(12,109 |
) |
|
|
23,677 |
|
|
0.46 |
Impairment charges |
|
122,227 |
|
|
(12,565 |
) |
|
|
— |
|
|
|
109,662 |
|
|
2.12 |
Restructuring and other related charges |
|
35,068 |
|
|
(7,889 |
) |
|
|
(1,304 |
) |
|
|
25,875 |
|
|
0.50 |
Loss on extinguishment of debt |
|
2,908 |
|
|
(733 |
) |
|
|
— |
|
|
|
2,175 |
|
|
0.04 |
Adjusted Results (Non-GAAP) |
$ |
604,806 |
|
$ |
(173,016 |
) |
|
$ |
(30,422 |
) |
|
$ |
401,368 |
|
$ |
7.76 |
(1) |
See page 5 of this earnings release for a discussion of non-GAAP
financial measures used in this release. This discussion includes
the definition of Adjusted Operating Income, Adjusted EPS and Free
Cash Flow. |
|
|
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