AMC Networks Inc. ("AMC Networks" or the "Company") (NASDAQ: AMCX)
today reported financial results for the fourth quarter and full
year ended December 31, 2022.
AMC Networks Interim Executive Chairman
James L. Dolan said: "AMC Networks is focused on
maximizing the value of our high-quality, popular content through
optimized content monetization as we reduce costs and drive cash
flow. We believe this approach will position the company well to
navigate current industry dynamics and enable us to generate
long-term shareholder value."
Operational Highlights:
- Launched new Anne Rice Universe franchise with Anne Rice’s
Interview with the Vampire, which became the #1 new series launch
in AMC+ history and the #2 new basic cable drama in 2022.
- Kicked off 2023 with the second series in the franchise, Anne
Rice’s Mayfair Witches, which is pacing to become the most viewed
single season of any show on AMC+, topping Interview’s performance,
and is a Top 10 cable drama in the current broadcast season.
- Renewed both Anne Rice’s Interview with the Vampire and Anne
Rice’s Mayfair Witches for second seasons.
- Premiered the final season of The Walking Dead, which concluded
with AMC+’s highest single day of viewership ever and which
commanded the series’ highest pricing in its 11-year run,
demonstrating high audience engagement and advertiser demand for
the franchise.
- Bringing fans of The Walking Dead Universe a new season of Fear
the Walking Dead and two new series: The Walking Dead: Dead City
and The Walking Dead: Daryl Dixon, in 2023.
- Renewed WE tv franchise hits Love After Lockup, Life After
Lockup, Love During Lockup and Growing Up Hip Hop for new
seasons.
- Renewed six multi-year carriage agreements, with Charter,
Altice, Philo, Mediacom and WOW! for continued carriage of U.S.
channel portfolio and with Bell for continued carriage of AMC in
Canada.
- Tested innovative new pricing and packaging offer with
Verizon’s +play Early Access, where Verizon mobile and 5G Home
customers were offered 12 months of Netflix Premium for free with
the purchase of a 12-month subscription to AMC+.
Fourth Quarter Financial
Highlights:
- Net revenues increased 20% from the prior year to $965
million
- Operating loss of $392 million; Adjusted Operating Income(1)
increased 34% to $137 million
- Diluted EPS of $(6.11); Adjusted EPS(1) of $2.52
- Net cash provided by operating activities of $145 million; Free
Cash Flow(1) of $128 million
Full Year Financial
Highlights:
- Net revenues increased 1% from the prior year to $3,097 million
- Streaming revenues increased 35% to $502 million; 11.8 million
subscribers as of December 31, 2022
- Operating income of $87 million; Adjusted Operating Income(1)
of $738 million
- Diluted EPS of $0.17; Adjusted EPS(1) of $9.21
- Net cash provided by operating activities of $182 million; Free
Cash Flow(1) of $103 million
| Dollars in
thousands, except per share amounts |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2022 |
|
|
2021 |
|
Change |
|
2022 |
|
2021 |
|
Change |
|
Net Revenues |
$ |
964,520 |
|
|
$ |
803,709 |
|
20.0 |
% |
|
$ |
3,096,545 |
|
$ |
3,077,608 |
|
0.6 |
% |
| Operating Income
(Loss) |
$ |
(391,641 |
) |
|
$ |
63,632 |
|
(715.5 |
)% |
|
$ |
86,916 |
|
$ |
489,922 |
|
(82.3 |
)% |
| Adjusted Operating
Income |
$ |
137,371 |
|
|
$ |
102,763 |
|
33.7 |
% |
|
$ |
738,402 |
|
$ |
816,070 |
|
(9.5 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Diluted Earnings (Loss) Per
Share |
$ |
(6.11 |
) |
|
$ |
0.39 |
|
(1666.7 |
)% |
|
$ |
0.17 |
|
$ |
5.77 |
|
(97.1 |
)% |
| Adjusted Earnings Per
Share |
$ |
2.52 |
|
|
$ |
0.54 |
|
366.7 |
% |
|
$ |
9.21 |
|
$ |
9.64 |
|
(4.5 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating
activities |
$ |
145,243 |
|
|
$ |
99,490 |
|
46.0 |
% |
|
$ |
181,834 |
|
$ |
143,474 |
|
26.7 |
% |
| Free Cash Flow |
$ |
127,756 |
|
|
$ |
72,379 |
|
76.5 |
% |
|
$ |
102,605 |
|
$ |
71,488 |
|
43.5 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
Adjusted EPS and Free Cash Flow.
Segment Results:(dollars in thousands)
| |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
|
2022 |
|
|
|
2021 |
|
|
Change |
| Net
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
861,108 |
|
|
$ |
684,886 |
|
|
25.70 |
% |
|
$ |
2,675,142 |
|
|
$ |
2,580,616 |
|
|
3.70 |
% |
|
International and Other |
|
107,633 |
|
|
|
121,933 |
|
|
(11.70 |
)% |
|
|
442,525 |
|
|
|
511,317 |
|
|
(13.50 |
)% |
|
Inter-segment Eliminations |
|
(4,221 |
) |
|
|
(3,110 |
) |
|
(35.70 |
)% |
|
|
(21,122 |
) |
|
|
(14,325 |
) |
|
(47.40 |
)% |
| Total Net Revenues |
$ |
964,520 |
|
|
$ |
803,709 |
|
|
20.00 |
% |
|
$ |
3,096,545 |
|
|
$ |
3,077,608 |
|
|
0.60 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Income
(Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
(287,426 |
) |
|
$ |
100,001 |
|
|
(387.40 |
)% |
|
$ |
286,517 |
|
|
$ |
617,875 |
|
|
(53.60 |
)% |
|
International and Other |
|
(36,702 |
) |
|
|
4,802 |
|
|
(864.30 |
)% |
|
|
3,031 |
|
|
|
37,167 |
|
|
(91.80 |
)% |
|
Corporate / Inter-segment Eliminations |
|
(67,513 |
) |
|
|
(41,171 |
) |
|
(64.00 |
)% |
|
|
(202,632 |
) |
|
|
(165,120 |
) |
|
(22.70 |
)% |
| Total Operating Income
(Loss) |
$ |
391,641 |
) |
|
$ |
63,632 |
|
|
(715.50 |
)% |
|
$ |
86,916 |
|
|
$ |
489,922 |
|
|
(82.30 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Operating
Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
153,987 |
|
|
$ |
121,692 |
|
|
26.50 |
% |
|
$ |
789,396 |
|
|
$ |
845,441 |
|
|
(6.60 |
)% |
|
International and Other |
|
13,480 |
|
|
|
12,517 |
|
|
7.70 |
% |
|
|
68,989 |
|
|
|
83,294 |
|
|
(17.20 |
)% |
|
Corporate / Inter-segment Eliminations |
|
(30,096 |
) |
|
|
(31,446 |
) |
|
4.30 |
% |
|
|
(119,983 |
) |
|
|
(112,665 |
) |
|
(6.50 |
)% |
| Total Adjusted Operating
Income |
$ |
137,371 |
|
|
$ |
102,763 |
|
|
33.70 |
% |
|
$ |
738,402 |
|
|
$ |
816,070 |
|
|
(9.50 |
)% |
| |
Domestic Operations
Fourth Quarter Results:
- Domestic Operations’ revenues increased 26% from the prior year
to $861 million.
- Distribution and other revenues increased 45% to $655 million.
- Content licensing revenues increased 152% to $300 million, due
to the timing and availability of deliveries in the period,
including the delivery of an AMC Studios produced series to a third
party and the early delivery of episodes of The Walking Dead and
Fear the Walking Dead.
- Subscription revenues grew 7% due to increased streaming
revenues primarily driven by streaming subscriber growth, partially
offset by declines in the linear subscriber universe.
- Streaming revenues increased 41% with quarter end total
subscribers of 11.8 million.
- Affiliate revenues declined 7.5% due to basic subscriber
declines, partly offset by contractual rate increases.
- Advertising revenues decreased 12% to $206 million, due to
lower linear ratings, softness in the advertising market, and fewer
original programming episodes, partly offset by digital and
advanced advertising revenue growth.
- Operating loss of $287 million which included restructuring and
other related charges related to strategic programming assessments
and organizational restructuring costs of $423 million.
- Adjusted Operating Income increased 27% to $154 million, driven
by increased revenues and lower levels of marketing investment,
partly offset by increased programming investments.
Full Year Results:
- Domestic Operations’ revenues increased 4% from the prior year
to $2,675 million.
- Distribution and other revenues increased 9% to $1,887 million.
- Content licensing revenues increased 18% to $492 million, due
to the timing and availability of deliveries, including the
delivery of an AMC Studios produced series to a third party.
- Subscription revenues grew 6% due to increased streaming
revenues, primarily driven by streaming subscriber growth,
partially offset by declines in the linear subscriber universe.
- Streaming revenues increased 35% to $502 million.
- Affiliate revenues declined 5.8% due to basic subscriber
declines, partly offset by contractual rate increases.
- Advertising revenues decreased 7% to $788 million, due to lower
linear ratings, softness in the advertising market, and fewer
original programming episodes, partly offset by digital and
advanced advertising revenue growth.
- Operating income decreased 54% to $287 million which included
restructuring and other related charges related to strategic
programming assessments and organizational restructuring costs of
$423 million.
- Adjusted Operating Income decreased 7% to $789 million, driven
by lower advertising and affiliate revenues, increased programming
investments and increased SG&A expense.
International and Other
Fourth Quarter Results:
- International and Other revenues decreased 12% from the prior
year to $108 million; or a decrease of 4% excluding the impact of
foreign currency translation.
- Distribution and other revenues decreased 4% to $86 million,
due to the unfavorable impact of foreign currency translation at
AMCNI, partially offset by the timing of productions at 25/7 Media;
or an increase of 3% excluding the impact of foreign currency
translation.
- Advertising revenues decreased 33% to $22 million, due to the
wind-down of two channels in the U.K., the unfavorable impact of
foreign currency translation at AMCNI, and softer ratings in the
U.K.; excluding the impact of foreign currency translation,
advertising revenues decreased 24%.
- Operating loss of $37 million which included an impairment
charge of $41 million, reflecting a partial write-down of the
goodwill associated with AMCNI in addition to restructuring and
other related charges related to strategic programming assessments
and organizational restructuring costs of $3 million.
- Adjusted Operating Income increased 8% to $13 million,
reflecting cost savings related to channel rationalization and
contractual rights savings; excluding the impact of foreign
currency translation, Adjusted Operating Income increased 4%.
- International and Other revenues decreased 14% from the prior
year to $443 million; or a decrease of 7% excluding the impact of
foreign currency translation.
- Distribution and other revenues decreased 12% to $359 million,
due to the unfavorable impact of foreign currency translation at
AMCNI and the timing of productions at 25/7 Media; or a decrease of
6% excluding the impact of foreign currency translation.
- Advertising revenues decreased 21% to $84 million, due to the
wind-down of two channels in the U.K., the unfavorable impact of
foreign currency translation at AMCNI, and softer ratings in the
U.K.; excluding the impact of foreign currency translation,
advertising revenues decreased 12%.
- Operating income decreased 92% to $3 million which included an
impairment charge of $41 million, reflecting a partial write-down
of goodwill associated with AMCNI in addition to restructuring and
other related charges related to strategic programming assessments
and organizational restructuring costs of $3 million.
- Adjusted Operating Income decreased 17% to $69 million, driven
by decreased revenues, and the unfavorable impact of foreign
currency translation at AMCNI; excluding the impact of foreign
currency translation, Adjusted Operating Income decreased 15%.
Full Year Results:
Other Matters
Restructuring and other related charges
On November 28, 2022, the Company commenced a
restructuring plan designed to achieve significant cost reductions,
encompassing initiatives that include, among other things,
strategic programming assessments and organizational restructuring
costs. Programming assessments pertain to a broad mix of owned and
licensed content, including legacy television series and films that
will no longer be in active rotation on the Company’s linear or
digital platforms. Restructuring and other related charges recorded
in 2022, were primarily related to content impairments of $403.8
million, as well as severance and other personnel costs of $45.2
million. Of the $449.0 million total charge, $423.2 million related
to Domestic Operations, $2.9 million related to AMCNI, and $22.9
million related to Corporate.
Impairment and other charges
In December 2022, we performed our annual
goodwill impairment test and concluded that the estimated fair
value of our AMCNI reporting unit declined to less than its
carrying amount. The decrease in the estimated fair value was in
response to current and expected trends across the International
television broadcasting markets, as well as a decrease in the
financial multiples used to estimate the fair value using the
market approach. As a result, we recognized an impairment charge of
$40.7 million, reflecting a partial write-down of the goodwill
associated with the AMCNI reporting unit.
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 quarter ended
December 31, 2022, the Company did not repurchase any shares. As of
December 31, 2022, the Company had $135 million of authorization
remaining for repurchase under the Stock Repurchase Program.
As of February 10, 2023, the Company had
31,524,521 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 year
ended December 31, 2022, 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 9-10 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 11 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 12-13 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 11:00 a.m. ET to discuss its fourth quarter and full year 2022
results. To listen to the call, please visit
investors.amcnetworks.com.
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 anime-focused
HIDIVE streaming service, in addition to AMC, BBC AMERICA (operated
through a joint venture with BBC Studios), IFC, SundanceTV, WE tv,
IFC Films and RLJE 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
(LOSS) (Dollars in thousands, except per
share amounts)(unaudited)
| |
Three Months EndedDecember 31, |
|
Twelve Months EndedDecember 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
| Revenues, net |
$ |
964,520 |
|
|
$ |
803,709 |
|
|
$ |
3,096,545 |
|
|
$ |
3,077,608 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
Technical and operating (excluding depreciation and
amortization) |
|
612,434 |
|
|
|
434,406 |
|
|
|
1,515,902 |
|
|
|
1,432,083 |
|
|
Selling, general and administrative |
|
226,373 |
|
|
|
281,570 |
|
|
|
896,817 |
|
|
|
891,734 |
|
|
Depreciation and amortization |
|
27,671 |
|
|
|
22,620 |
|
|
|
107,227 |
|
|
|
93,881 |
|
|
Impairment and other charges |
|
40,717 |
|
|
|
637 |
|
|
|
40,717 |
|
|
|
159,610 |
|
|
Restructuring and other related charges |
|
448,966 |
|
|
|
844 |
|
|
|
448,966 |
|
|
|
10,378 |
|
|
Total operating expenses |
|
1,356,161 |
|
|
|
740,077 |
|
|
|
3,009,629 |
|
|
|
2,587,686 |
|
|
Operating income (loss) |
|
(391,641 |
) |
|
|
63,632 |
|
|
|
86,916 |
|
|
|
489,922 |
|
| Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense |
|
(36,677 |
) |
|
|
(31,399 |
) |
|
|
(133,762 |
) |
|
|
(129,073 |
) |
|
Interest income |
|
4,774 |
|
|
|
2,629 |
|
|
|
13,326 |
|
|
|
10,243 |
|
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(22,074 |
) |
|
Miscellaneous, net |
|
28 |
|
|
|
5,580 |
|
|
|
3,568 |
|
|
|
25,214 |
|
|
Total other expense |
|
(31,875 |
) |
|
|
(23,190 |
) |
|
|
(116,868 |
) |
|
|
(115,690 |
) |
| Income (loss) from operations before income taxes |
|
(423,516 |
) |
|
|
40,442 |
|
|
|
(29,952 |
) |
|
|
374,232 |
|
|
Income tax benefit (expense) |
|
144,098 |
|
|
|
(16,413 |
) |
|
|
40,980 |
|
|
|
(94,393 |
) |
| Net income (loss) including noncontrolling interests |
|
(279,418 |
) |
|
|
24,029 |
|
|
|
11,028 |
|
|
|
279,839 |
|
| Net (income) loss attributable to noncontrolling interests |
|
14,729 |
|
|
|
(6,990 |
) |
|
|
(3,434 |
) |
|
|
(29,243 |
) |
| Net income (loss) attributable to AMC Networks’
stockholders |
$ |
(264,689 |
) |
|
$ |
17,039 |
|
|
$ |
7,594 |
|
|
$ |
250,596 |
|
| |
|
|
|
|
|
|
|
| Net income (loss) per share attributable to AMC
Networks’ stockholders: |
|
|
|
|
| Basic |
$ |
(6.11 |
) |
|
$ |
0.40 |
|
|
$ |
0.18 |
|
|
$ |
5.92 |
|
| Diluted |
$ |
(6.11 |
) |
|
$ |
0.39 |
|
|
$ |
0.17 |
|
|
$ |
5.77 |
|
| |
|
|
|
|
|
|
|
| Weighted average common shares: |
|
|
|
|
|
|
|
| Basic |
|
43,328 |
|
|
|
42,518 |
|
|
|
43,135 |
|
|
|
42,361 |
|
| Diluted |
|
43,328 |
|
|
|
43,755 |
|
|
|
43,731 |
|
|
|
43,439 |
|
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL
DATA(Dollars in
thousands)(Unaudited)
|
|
Three Months Ended December 31, 2022 |
|
|
Domestic Operations |
|
Internationaland Other |
|
Corporate /Inter-segmentEliminations |
|
Consolidated |
|
Operating income (loss) |
$ |
(287,426 |
) |
|
$ |
(36,702 |
) |
|
$ |
(67,513 |
) |
|
$ |
(391,641 |
) |
|
Share-based compensation expenses |
|
2,815 |
|
|
|
2,142 |
|
|
|
1,167 |
|
|
|
6,124 |
|
|
Depreciation and amortization |
|
11,872 |
|
|
|
4,469 |
|
|
|
11,330 |
|
|
|
27,671 |
|
|
Restructuring and other related charges |
|
423,205 |
|
|
|
2,854 |
|
|
|
22,907 |
|
|
|
448,966 |
|
|
Impairment and other charges |
|
— |
|
|
|
40,717 |
|
|
|
— |
|
|
|
40,717 |
|
|
Cloud computing amortization |
|
6 |
|
|
|
— |
|
|
|
2,013 |
|
|
|
2,019 |
|
|
Majority owned equity investees AOI |
|
3,515 |
|
|
|
— |
|
|
|
— |
|
|
|
3,515 |
|
|
Adjusted operating income (loss) |
$ |
153,987 |
|
|
$ |
13,480 |
|
|
($ |
(30,096 |
) |
|
$ |
137,371 |
|
| |
Three Months Ended December 31, 2021 |
| |
DomesticOperations |
|
Internationaland Other |
|
Corporate /Inter-segmentEliminations |
|
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 |
|
Restructuring and other related charges |
|
8 |
|
|
810 |
|
|
26 |
|
|
|
844 |
|
Impairment and other charges |
|
— |
|
|
637 |
|
|
— |
|
|
|
637 |
|
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 |
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL
DATA (Dollars in
thousands)(Unaudited)
|
|
Twelve Months Ended December 31, 2022 |
|
|
DomesticOperations |
|
Internationaland Other |
|
Corporate /Inter-segmentEliminations |
|
Consolidated |
|
Operating income (loss) |
$ |
286,517 |
|
$ |
3,031 |
|
$ |
(202,632 |
) |
|
$ |
86,916 |
|
Share-based compensation expenses |
|
12,815 |
|
|
3,900 |
|
|
13,271 |
|
|
|
29,986 |
|
Depreciation and amortization |
|
49,588 |
|
|
18,487 |
|
|
39,152 |
|
|
|
107,227 |
|
Restructuring and other related charges |
|
423,205 |
|
|
2,854 |
|
|
22,907 |
|
|
|
448,966 |
|
Impairment and other charges |
|
— |
|
|
40,717 |
|
|
— |
|
|
|
40,717 |
|
Cloud computing amortization |
|
23 |
|
|
— |
|
|
7,319 |
|
|
|
7,342 |
|
Majority owned equity investees AOI |
|
17,248 |
|
|
— |
|
|
— |
|
|
|
17,248 |
|
Adjusted operating income (loss) |
$ |
789,396 |
|
$ |
68,989 |
|
$ |
(119,983 |
) |
|
$ |
738,402 |
|
|
Twelve Months Ended December 31, 2021 |
|
|
DomesticOperations |
|
Internationaland Other |
|
Corporate /Inter-segmentEliminations |
|
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 |
|
Restructuring and other related charges |
|
2,516 |
|
|
6,083 |
|
|
1,779 |
|
|
|
10,378 |
|
Impairment and other charges |
|
143,000 |
|
|
16,610 |
|
|
— |
|
|
|
159,610 |
|
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 |
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL
DATA(Dollars in
thousands)(Unaudited)
|
Capitalization |
December 31, 2022 |
|
|
Cash and cash equivalents |
$ |
930,002 |
|
| |
|
|
|
Credit facility debt (a) |
$ |
641,250 |
|
|
Senior notes (a) |
|
2,200,000 |
|
|
Total debt |
$ |
2,841,250 |
|
| |
|
|
|
Net debt |
$ |
1,911,248 |
|
| |
|
|
|
Finance leases |
|
23,235 |
|
|
Net debt and finance leases |
$ |
1,934,483 |
|
| |
|
|
| |
Twelve Months Ended December 31, 2022 |
|
|
Operating Income (GAAP) |
$ |
86,916 |
|
|
Share-based compensation expense |
|
29,986 |
|
|
Depreciation and amortization |
|
107,227 |
|
|
Restructuring and other related charges |
|
448,966 |
|
|
Impairment and other charges |
|
40,717 |
|
|
Cloud computing amortization |
|
7,342 |
|
|
Majority owned equity investees AOI |
|
17,248 |
|
|
Adjusted Operating Income (Non-GAAP) |
$ |
738,402 |
|
| |
|
|
|
Leverage ratio (b) |
|
2.6 |
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,
2022. 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 EndedDecember 31, |
|
Twelve Months EndedDecember 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Net cash provided by operating activities |
$ |
145,243 |
|
|
$ |
99,490 |
|
|
$ |
181,834 |
|
|
$ |
143,474 |
|
|
Less: capital expenditures |
|
(10,762 |
) |
|
|
(12,603 |
) |
|
|
(44,272 |
) |
|
|
(42,572 |
) |
|
Less: distributions to noncontrolling interests |
|
(6,725 |
) |
|
|
(14,508 |
) |
|
|
(34,957 |
) |
|
|
(29,414 |
) |
|
Free cash flow |
$ |
127,756 |
|
|
$ |
72,379 |
|
|
$ |
102,605 |
|
|
$ |
71,488 |
|
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL
DATA (Dollars in thousands, except per share
amounts)(Unaudited)
| Adjusted
Earnings Per Share |
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended December 31, 2022 |
| |
Income (loss)from operationsbefore incometaxes |
|
Income tax(expense) benefit |
|
Net (income)loss attributableto noncontrollinginterests |
|
Net income(loss)attributable toAMC Networks’stockholders |
|
Diluted EPSattributable toAMC Networks’stockholders |
| Reported
Results (GAAP) |
$ |
(423,516 |
) |
|
$ |
144,098 |
|
|
$ |
14,729 |
|
|
$ |
(264,689 |
) |
|
$ |
(6.11 |
) |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
10,274 |
|
|
|
(1,911 |
) |
|
|
(1,680 |
) |
|
|
6,683 |
|
|
|
0.15 |
|
|
Restructuring and other related charges |
|
448,966 |
|
|
|
(99,285 |
) |
|
|
(21,846 |
) |
|
|
327,835 |
|
|
|
7.57 |
|
|
Impairment and other charges |
|
40,717 |
|
|
|
— |
|
|
|
— |
|
|
|
40,717 |
|
|
|
0.94 |
|
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Dilutive share basis difference - GAAP vs. Adjusted(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.03 |
) |
| Adjusted Results (Non-GAAP) |
$ |
76,441 |
|
|
$ |
42,902 |
|
|
$ |
(8,797 |
) |
|
$ |
110,546 |
|
|
$ |
2.52 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the reconciliation of Adjusted EPS
to GAAP EPS, the item "Dilutive share basis difference - GAAP vs.
Adjusted" represents the impact of the adjustments from a net loss
to net income position, which required a change in the dilutive
shares outstanding to reflect additional dilutive shares associated
with restricted stock units that were considered anti-dilutive on a
GAAP basis.
| |
Three Months Ended December 31, 2021 |
| |
Income fromoperationsbefore incometaxes |
|
Income taxexpense |
|
Net (income)loss attributableto noncontrollinginterests |
|
Net incomeattributable toAMC Networks’stockholders |
|
Diluted EPSattributable toAMC 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 |
|
Restructuring and other related charges |
|
844 |
|
|
(394 |
) |
|
|
— |
|
|
|
450 |
|
|
0.01 |
|
Impairment and other charges |
|
637 |
|
|
171 |
|
|
|
— |
|
|
|
808 |
|
|
0.02 |
|
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
| Adjusted Results (Non-GAAP) |
$ |
51,918 |
|
$ |
(18,249 |
) |
|
$ |
(9,942 |
) |
|
$ |
23,727 |
|
$ |
0.54 |
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL
DATA (Dollars in thousands, except per share
amounts)(Unaudited)
| Adjusted
Earnings Per Share |
| |
|
|
|
|
|
|
|
|
|
| |
Twelve Months Ended December 31, 2022 |
| |
Income (loss)from operationsbefore incometaxes |
|
Income tax(expense) benefit |
|
Net (income)loss attributableto noncontrollinginterests |
|
Net incomeattributable toAMC Networks’stockholders |
|
Diluted EPSattributable toAMC Networks’stockholders |
| Reported
Results (GAAP) |
$ |
(29,952 |
) |
|
$ |
40,980 |
|
|
$ |
(3,434 |
) |
|
$ |
7,594 |
|
$ |
0.17 |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
41,469 |
|
|
|
(8,073 |
) |
|
|
(6,720 |
) |
|
|
26,676 |
|
|
0.61 |
|
Restructuring and other related charges |
|
448,966 |
|
|
|
(99,285 |
) |
|
|
(21,846 |
) |
|
|
327,835 |
|
|
7.50 |
|
Impairment and other charges |
|
40,717 |
|
|
|
— |
|
|
|
— |
|
|
|
40,717 |
|
|
0.93 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
| Adjusted Results (Non-GAAP) |
$ |
501,200 |
|
|
$ |
(66,378 |
) |
|
$ |
(32,000 |
) |
|
$ |
402,822 |
|
$ |
9.21 |
| |
Twelve Months Ended December 31, 2021 |
| |
Income fromoperationsbefore incometaxes |
|
Income taxexpense |
|
Net (income)loss attributableto noncontrollinginterests |
|
Net incomeattributable toAMC Networks’stockholders |
|
Diluted EPSattributable toAMC 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 |
|
Restructuring and other related charges |
|
10,378 |
|
|
(1,813 |
) |
|
|
12 |
|
|
|
8,577 |
|
|
0.20 |
|
Impairment and other charges |
|
159,610 |
|
|
(37,907 |
) |
|
|
— |
|
|
|
121,703 |
|
|
2.80 |
|
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 |
AMC Networks (NASDAQ:AMCX)
Historical Stock Chart
From Oct 2024 to Nov 2024
AMC Networks (NASDAQ:AMCX)
Historical Stock Chart
From Nov 2023 to Nov 2024
