AMC Networks Inc. ("AMC Networks" or the "Company") (NASDAQ: AMCX)
today reported financial results for the second quarter ended
June 30, 2023.
Chief Executive Officer Kristin
Dolan said: "Six months into my tenure as CEO, I am
impressed with our team’s ability to do what this company has
always done best: produce high-quality content and make it
available to viewers across an expanding array of platforms. We
accomplish this through a measured, opportunistic and disciplined
strategy that drives free cash flow. Even during a period of
industry-wide uncertainty and change, we are seeing the benefits of
our strategy play out in our financial results, which for the
second quarter include year-over-year increases in free cash,
streaming subscribers, and streaming revenue, as well as healthy
margins. It’s clear we have the programming, the platforms and the
partners necessary to continue to operate a very profitable
business that delivers long-term shareholder value."
Operational Highlights:
- Premiered The Walking Dead: Dead
City, the #1 season premiere in the history of AMC+ in terms of
viewership across all new and returning series. Linear viewership
for the first episode attracted a total premiere audience of 2
million viewers.
- Announced upcoming September 10
premiere of The Walking Dead: Daryl Dixon, which is set in
France.
- Completed production of The Walking
Dead: The Ones Who Live, which is focused on the iconic Rick and
Michonne characters, and is slated to premiere in 2024.
- AMC, BBC AMERICA, IFC, Sundance TV,
and WE tv launched on Comcast's NOW TV, a new and innovative
streaming offering that includes 40+ live channels and 20+
integrated FAST channels.
- Launched AMC+ on Charter, making
our streaming service available to Spectrum TV customers through
the set-top box.
- Negotiated the early return of
rights for acclaimed and popular AMC Networks library titles
including Fear the Walking Dead, Killing Eve, Brockmire, The
Terror, The Son, Preacher, Lodge 49 and others. Began exclusively
streaming the first seven seasons of Fear the Walking Dead on AMC+
in July.
Financial Highlights – Second Quarter
Ended June 30, 2023:
- Net revenues decreased 8% from the
prior year to $679 million, largely driven by lower advertising
revenues, domestic affiliate revenues and 25/7 Media production
services revenues, partly offset by streaming revenue growth of
13%.
- Operating income decreased 31% from
the prior year to $106 million; Adjusted Operating Income(1)
decreased 10% to $177 million, representing a margin of 26%
consistent with the prior year period. Adjusted Operating Income
benefited from continued cost management measures, including
marketing efficiencies.
- Diluted EPS of $1.60; Adjusted
EPS(1) of $2.02.
- Net cash provided by operating
activities of $158 million; Free Cash Flow(1) of $148 million
reflected the benefit of the acceleration of certain cash payments
associated with a legacy content licensing agreement.
|
|
|
|
Dollars in thousands, except per share amounts |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
|
2022 |
|
Change |
|
2023 |
|
|
2022 |
|
|
Change |
Net Revenues |
$ |
678,628 |
|
$ |
738,025 |
|
(8.0)% |
|
$ |
1,396,075 |
|
$ |
1,450,182 |
|
|
(3.7)% |
Operating Income |
$ |
105,701 |
|
$ |
153,203 |
|
(31.0)% |
|
$ |
279,005 |
|
$ |
327,880 |
|
|
(14.9)% |
Adjusted Operating Income |
$ |
176,777 |
|
$ |
195,542 |
|
(9.6)% |
|
$ |
392,540 |
|
$ |
406,726 |
|
|
(3.5)% |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share |
$ |
1.60 |
|
$ |
1.91 |
|
(16.2)% |
|
$ |
3.97 |
|
$ |
4.29 |
|
|
(7.5)% |
Adjusted Earnings Per Share |
$ |
2.02 |
|
$ |
2.06 |
|
(1.9)% |
|
$ |
4.64 |
|
$ |
4.60 |
|
|
0.9% |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
157,566 |
|
$ |
40,729 |
|
286.9% |
|
$ |
25,047 |
|
$ |
17,174 |
|
|
45.8% |
Free Cash Flow |
$ |
147,614 |
|
$ |
30,703 |
|
380.8% |
|
$ |
3,597 |
|
$ |
(4,380 |
) |
|
182.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
Segment Results:(dollars in
thousands)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
581,819 |
|
|
$ |
621,102 |
|
|
(6.3)% |
|
$ |
1,193,673 |
|
|
$ |
1,226,645 |
|
|
(2.7)% |
International and Other |
|
99,304 |
|
|
|
125,771 |
|
|
(21.0)% |
|
|
207,376 |
|
|
|
235,622 |
|
|
(12.0)% |
Inter-segment Eliminations |
|
(2,495) |
|
|
|
(8,848) |
|
|
71.8% |
|
|
(4,974) |
|
|
|
(12,085) |
|
|
58.8% |
Total Net Revenues |
$ |
678,628 |
|
|
$ |
738,025 |
|
|
(8.0)% |
|
$ |
1,396,075 |
|
|
$ |
1,450,182 |
|
|
(3.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
162,530 |
|
|
$ |
188,812 |
|
|
(13.9)% |
|
$ |
362,018 |
|
|
$ |
387,334 |
|
|
(6.5)% |
International and Other |
|
(11,705) |
|
|
|
14,087 |
|
|
(183.1)% |
|
|
2,437 |
|
|
|
31,442 |
|
|
(92.2)% |
Corporate / Inter-segment Eliminations |
|
(45,124) |
|
|
|
(49,696) |
|
|
9.2% |
|
|
(85,450) |
|
|
|
(90,896) |
|
|
6.0% |
Total Operating Income |
$ |
105,701 |
|
|
$ |
153,203 |
|
|
(31.0)% |
|
$ |
279,005 |
|
|
$ |
327,880 |
|
|
(14.9)% |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
184,806 |
|
|
$ |
209,489 |
|
|
(11.8)% |
|
$ |
404,194 |
|
|
$ |
428,708 |
|
|
(5.7)% |
International and Other |
|
19,186 |
|
|
|
19,187 |
|
|
0.0% |
|
|
40,323 |
|
|
|
42,199 |
|
|
(4.4)% |
Corporate / Inter-segment Eliminations |
|
(27,215) |
|
|
|
(33,134) |
|
|
17.9% |
|
|
(51,977) |
|
|
|
(64,181) |
|
|
19.0% |
Total Adjusted Operating Income |
$ |
176,777 |
|
|
$ |
195,542 |
|
|
(9.6)% |
|
$ |
392,540 |
|
|
$ |
406,726 |
|
|
(3.5)% |
Domestic Operations
Second Quarter Results:
- Domestic
Operations revenues decreased 6% from the prior year to $582
million.
- Distribution and
other revenues decreased 1% to $415 million.
- Content
licensing revenues increased 12% to $81 million due to the timing
and availability of deliveries in the period, including the
acceleration of revenue associated with a legacy content licensing
agreement.
- Subscription
revenues decreased 4% to $334 million due to declines in the linear
subscriber universe, partially offset by streaming revenue growth.
- Streaming
revenues increased 13% to $137 million, primarily driven by
year-over-year streaming subscriber growth and 2022 price
increases.
- Streaming
subscribers increased 6% to 11.0 million as compared to 10.3
million subscribers in the prior year period. As compared to 1Q'23
subscribers of 11.2 million, second quarter subscribers
sequentially decreased 2%, reflecting our continued focus on higher
value subscribers and promotional roll-off.
- In the second
quarter, we updated our subscriber definition to no longer include
estimated subscriber conversions. This definitional change resulted
in the removal of approximately 300 thousand subscribers from our
quarter end subscriber count. Subscribers and growth rates
mentioned in this release reflect our updated definition.
- Affiliate
revenue decreased 12.7% due to basic subscriber declines and a 3%
impact of a strategic non-renewal that occurred at the end of 2022,
partially offset by contractual rate increases.
- Advertising
revenues decreased 17% to $167 million due to anticipated linear
ratings declines, softness in the ad market and fewer original
programming episodes within the quarter, partly offset by digital
and advanced advertising revenue growth.
- Operating income
decreased 14% to $163 million.
- Adjusted
Operating Income decreased 12% to $185 million, with a margin of
32%. The decrease in Adjusted Operating Income was primarily
attributable to a decrease in advertising and affiliate revenues,
partly offset by increased streaming revenues and continued cost
management measures, including marketing efficiencies.
International and Other
Second Quarter Results:
- International
and Other revenues decreased 21% from the prior year to $99
million.
- Distribution and
other revenues decreased 24% to $79 million, primarily due to
decreased production volume at 25/7 Media.
- Subscription
revenues increased 1% to $57 million, primarily due to the
favorable impact of foreign currency translation at AMCNI.
- Content
licensing and other revenues decreased 54% to $22 million due to a
reduction in the volume of productions at 25/7 Media driven by
reduced demand for new content and series cancellations from third
parties.
- Advertising
revenues decreased 6% to $20 million, primarily due to the
wind-down of two channels in 2022 and marketplace declines in the
U.K.
- Operating loss
of $12 million was largely attributable to a $25 million impairment
charge related to 25/7 Media.
- Adjusted
Operating Income of $19 million was consistent with the prior year
as decreased revenues were offset by decreased technical and
operating expenses.
Other Matters
Impairment and other charges
During the second quarter of 2023, given the
impact of market challenges at 25/7 Media, specifically as it
relates to reduced demand for new content and series cancellations
from third parties, the Company revised its outlook for the 25/7
Media business, resulting in lower expected future cash flows. As a
result, the Company determined that sufficient indicators of
potential impairment of long-lived assets and goodwill existed at
25/7 Media and an impairment charge of $24.9 million was
recorded.
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
June 30, 2023, the Company did not repurchase any shares. As
of June 30, 2023, the Company had $135 million of
authorization remaining for repurchase under the Stock Repurchase
Program.
As of July 28, 2023, the Company had
32,020,270 shares of Class A Common Stock and 11,484,408 shares of
Class B Common Stock outstanding.
Please see the Company’s Form 10-Q for the
period ended June 30, 2023, 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 page 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, 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 the impact associated with the modification of debt
arrangements, including 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 page
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 8:30 a.m. ET to discuss its second quarter 2023 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 |
|
Georgia Juvelis |
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 June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues, net |
$ |
678,628 |
|
|
$ |
738,025 |
|
|
$ |
1,396,075 |
|
|
$ |
1,450,182 |
|
Operating expenses: |
|
|
|
|
|
|
|
Technical and operating (excluding depreciation and
amortization) |
|
321,961 |
|
|
|
325,772 |
|
|
|
648,690 |
|
|
|
610,009 |
|
Selling, general and administrative |
|
194,298 |
|
|
|
231,819 |
|
|
|
379,904 |
|
|
|
462,472 |
|
Depreciation and amortization |
|
25,745 |
|
|
|
27,231 |
|
|
|
51,620 |
|
|
|
49,821 |
|
Impairment and other charges |
|
24,882 |
|
|
|
— |
|
|
|
24,882 |
|
|
|
— |
|
Restructuring and other related charges |
|
6,041 |
|
|
|
— |
|
|
|
11,974 |
|
|
|
— |
|
Total operating expenses |
|
572,927 |
|
|
|
584,822 |
|
|
|
1,117,070 |
|
|
|
1,122,302 |
|
Operating income |
|
105,701 |
|
|
|
153,203 |
|
|
|
279,005 |
|
|
|
327,880 |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest expense |
|
(38,930 |
) |
|
|
(31,980 |
) |
|
|
(76,547 |
) |
|
|
(62,777 |
) |
Interest income |
|
7,342 |
|
|
|
2,467 |
|
|
|
15,258 |
|
|
|
4,927 |
|
Miscellaneous, net |
|
10,140 |
|
|
|
(742 |
) |
|
|
14,729 |
|
|
|
5,086 |
|
Total other expense |
|
(21,448 |
) |
|
|
(30,255 |
) |
|
|
(46,560 |
) |
|
|
(52,764 |
) |
Income from operations before income taxes |
|
84,253 |
|
|
|
122,948 |
|
|
|
232,445 |
|
|
|
275,116 |
|
Income tax expense |
|
(22,155 |
) |
|
|
(33,028 |
) |
|
|
(59,054 |
) |
|
|
(74,662 |
) |
Net income including noncontrolling interests |
|
62,098 |
|
|
|
89,920 |
|
|
|
173,391 |
|
|
|
200,454 |
|
Net (income) loss attributable to noncontrolling interests |
|
8,141 |
|
|
|
(6,491 |
) |
|
|
458 |
|
|
|
(12,837 |
) |
Net income attributable to AMC Networks’ stockholders |
$ |
70,239 |
|
|
$ |
83,429 |
|
|
$ |
173,849 |
|
|
$ |
187,617 |
|
|
|
|
|
|
|
|
|
Net income per
share attributable to AMC Networks’ stockholders: |
|
|
|
|
Basic |
$ |
1.60 |
|
|
$ |
1.93 |
|
|
$ |
3.98 |
|
|
$ |
4.36 |
|
Diluted |
$ |
1.60 |
|
|
$ |
1.91 |
|
|
$ |
3.97 |
|
|
$ |
4.29 |
|
|
|
|
|
|
|
|
|
Weighted average common shares: |
|
|
|
|
|
|
|
Basic |
|
43,842 |
|
|
|
43,192 |
|
|
|
43,702 |
|
|
|
42,987 |
|
Diluted |
|
43,900 |
|
|
|
43,679 |
|
|
|
43,835 |
|
|
|
43,697 |
|
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL
DATA(Dollars in
thousands)(Unaudited)
|
Three Months Ended June 30, 2023 |
|
Domestic Operations |
|
International and Other |
|
Corporate / Inter-segment Eliminations |
|
Consolidated |
Operating income (loss) |
$ |
162,530 |
|
$ |
(11,705 |
) |
|
$ |
(45,124 |
) |
|
$ |
105,701 |
Share-based compensation expenses |
|
2,192 |
|
|
846 |
|
|
|
4,610 |
|
|
|
7,648 |
Depreciation and amortization |
|
11,663 |
|
|
4,902 |
|
|
|
9,180 |
|
|
|
25,745 |
Restructuring and other related charges |
|
3,905 |
|
|
261 |
|
|
|
1,875 |
|
|
|
6,041 |
Impairment and other charges |
|
— |
|
|
24,882 |
|
|
|
— |
|
|
|
24,882 |
Cloud computing amortization |
|
5 |
|
|
— |
|
|
|
2,244 |
|
|
|
2,249 |
Majority owned equity investees AOI |
|
4,511 |
|
|
— |
|
|
|
— |
|
|
|
4,511 |
Adjusted operating
income (loss) |
$ |
184,806 |
|
$ |
19,186 |
|
|
$ |
(27,215 |
) |
|
$ |
176,777 |
|
|
Three Months Ended June 30, 2022 |
|
Domestic Operations |
|
International and Other |
|
Corporate / Inter-segmentEliminations |
|
Consolidated |
Operating income (loss) |
$ |
188,812 |
|
$ |
14,087 |
|
$ |
(49,696 |
) |
|
$ |
153,203 |
Share-based compensation expenses |
|
3,172 |
|
|
467 |
|
|
5,044 |
|
|
|
8,683 |
Depreciation and amortization |
|
13,439 |
|
|
4,633 |
|
|
9,159 |
|
|
|
27,231 |
Cloud computing amortization |
|
5 |
|
|
— |
|
|
2,359 |
|
|
|
2,364 |
Majority owned equity investees AOI |
|
4,061 |
|
|
— |
|
|
— |
|
|
|
4,061 |
Adjusted operating
income (loss) |
$ |
209,489 |
|
$ |
19,187 |
|
$ |
(33,134 |
) |
|
$ |
195,542 |
|
AMC NETWORKS INC.SUPPLEMENTAL FINANCIAL
DATA (Dollars in
thousands)(Unaudited) |
|
Six Months Ended June 30, 2023 |
|
Domestic Operations |
|
International and Other |
|
Corporate / Inter-segment Eliminations |
|
Consolidated |
Operating income (loss) |
$ |
362,018 |
|
$ |
2,437 |
|
$ |
(85,450 |
) |
|
$ |
279,005 |
Share-based compensation expenses |
|
6,639 |
|
|
1,685 |
|
|
4,969 |
|
|
|
13,293 |
Depreciation and amortization |
|
23,517 |
|
|
9,673 |
|
|
18,430 |
|
|
|
51,620 |
Restructuring and other related charges |
|
4,723 |
|
|
1,646 |
|
|
5,605 |
|
|
|
11,974 |
Impairment and other charges |
|
— |
|
|
24,882 |
|
|
— |
|
|
|
24,882 |
Cloud computing amortization |
|
10 |
|
|
— |
|
|
4,469 |
|
|
|
4,479 |
Majority owned equity investees AOI |
|
7,287 |
|
|
— |
|
|
— |
|
|
|
7,287 |
Adjusted operating
income (loss) |
$ |
404,194 |
|
$ |
40,323 |
|
$ |
(51,977 |
) |
|
$ |
392,540 |
|
Six Months Ended June 30, 2022 |
|
Domestic Operations |
|
International and Other |
|
Corporate / Inter-segment Eliminations |
|
Consolidated |
Operating income (loss) |
$ |
387,334 |
|
$ |
31,442 |
|
$ |
(90,896 |
) |
|
$ |
327,880 |
Share-based compensation expenses |
|
6,845 |
|
|
1,221 |
|
|
8,746 |
|
|
|
16,812 |
Depreciation and amortization |
|
25,575 |
|
|
9,536 |
|
|
14,710 |
|
|
|
49,821 |
Cloud computing amortization |
|
12 |
|
|
— |
|
|
3,259 |
|
|
|
3,271 |
Majority owned equity investees AOI |
|
8,942 |
|
|
— |
|
|
— |
|
|
|
8,942 |
Adjusted operating
income (loss) |
$ |
428,708 |
|
$ |
42,199 |
|
$ |
(64,181 |
) |
|
$ |
406,726 |
|
|
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL DATA
(Dollars in
thousands)(Unaudited)
Capitalization |
June 30, 2023 |
|
Cash and cash equivalents |
$ |
893,370 |
|
|
|
|
Credit facility debt (a) |
$ |
624,375 |
|
Senior notes (a) |
|
2,200,000 |
|
Total debt |
$ |
2,824,375 |
|
|
|
|
Net debt |
$ |
1,931,005 |
|
|
|
|
Finance leases |
|
21,256 |
|
Net debt and finance leases |
$ |
1,952,261 |
|
|
|
|
|
Twelve Months Ended June 30, 2023 |
|
Operating Income (GAAP) |
$ |
38,041 |
|
Share-based compensation expense |
|
26,467 |
|
Depreciation and amortization |
|
109,026 |
|
Restructuring and other related charges |
|
460,940 |
|
Impairment and other charges |
|
65,599 |
|
Cloud computing amortization |
|
8,550 |
|
Majority owned equity investees |
|
15,593 |
|
Adjusted Operating Income (Non-GAAP) |
$ |
724,216 |
|
|
|
|
Leverage ratio (b) |
|
2.7 |
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 June 30, 2023. 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.
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
Free Cash Flow (1) (2) |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by operating activities |
$ |
157,566 |
|
|
$ |
40,729 |
|
|
$ |
25,047 |
|
|
$ |
17,174 |
|
Less: capital expenditures |
|
(9,952 |
) |
|
|
(10,026 |
) |
|
|
(21,450 |
) |
|
|
(21,554 |
) |
Free Cash Flow |
$ |
147,614 |
|
|
$ |
30,703 |
|
|
$ |
3,597 |
|
|
$ |
(4,380 |
) |
Supplemental Cash Flow Information |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Restructuring initiatives (3) |
$ |
(31,620 |
) |
|
$ |
— |
|
|
$ |
(88,506 |
) |
|
$ |
— |
|
Distributions to noncontrolling interests |
|
(15,585 |
) |
|
|
(23,574 |
) |
|
|
(27,087 |
) |
|
|
(25,139 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Beginning with the first quarter of 2023, we adjusted our free
cash flow definition to exclude distributions to non-controlling
interests which are discretionary in nature. Prior period amounts
have been adjusted to conform to the current period
presentation. |
(2) Free Cash Flow includes the impact of certain cash receipts or
payments (such as restructuring initiatives, significant legal
settlements, and programming write-offs) that affect
period-to-period comparability. |
(3) Restructuring initiatives includes cash payments of $11.2
million and $52.2 million for content impairments and other exit
costs for the three and six months ended June 30, 2023,
respectively, and $20.4 million and $36.3 million for severance and
employee-related costs, for the three and six months ended June 30,
2023, respectively. |
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL DATA
(Dollars in thousands, except per share amounts)
(Unaudited)
Adjusted Earnings Per Share |
|
Three Months Ended June 30, 2023 |
|
Income from operations before income taxes |
|
Income tax expense |
|
Net (income) loss attributable to noncontrolling interests |
|
Net income attributable to AMC Networks' stockholders |
|
Diluted EPS attributable to AMC Networks' stockholders |
Reported Results (GAAP) |
$ |
84,253 |
|
$ |
(22,155 |
) |
|
$ |
8,141 |
|
|
$ |
70,239 |
|
$ |
1.60 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
10,469 |
|
|
(2,104 |
) |
|
|
(1,704 |
) |
|
|
6,661 |
|
|
0.15 |
Restructuring and other related charges |
|
6,041 |
|
|
(1,433 |
) |
|
|
(90 |
) |
|
|
4,518 |
|
|
0.11 |
Impairment and other charges |
|
24,882 |
|
|
(2,175 |
) |
|
|
(15,949 |
) |
|
|
6,758 |
|
|
0.15 |
Impact of debt modification |
|
605 |
|
|
(147 |
) |
|
|
— |
|
|
|
458 |
|
|
0.01 |
Adjusted Results (Non-GAAP) |
$ |
126,250 |
|
$ |
(28,014 |
) |
|
$ |
(9,602 |
) |
|
$ |
88,634 |
|
$ |
2.02 |
|
Three Months Ended June 30, 2022 |
|
Income from operations before income taxes |
|
Income tax expense |
|
Net (income) loss attributable to noncontrolling interests |
|
Net income attributable to AMC Networks' stockholders |
|
Diluted EPS attributable to AMC Networks' stockholders |
Reported Results (GAAP) |
$ |
122,948 |
|
$ |
(33,028 |
) |
|
$ |
(6,491 |
) |
|
$ |
83,429 |
|
$ |
1.91 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
10,396 |
|
|
(2,059 |
) |
|
|
(1,680 |
) |
|
|
6,657 |
|
|
0.15 |
Restructuring and other related charges |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Impairment and other charges |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Impact of debt modification |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Adjusted Results (Non-GAAP) |
$ |
133,344 |
|
$ |
(35,087 |
) |
|
$ |
(8,171 |
) |
|
$ |
90,086 |
|
$ |
2.06 |
AMC NETWORKS
INC.SUPPLEMENTAL FINANCIAL DATA
(Dollars in thousands, except per share amounts)
(Unaudited)
Adjusted Earnings Per Share |
|
Six Months Ended June 30, 2023 |
|
Income from operations before income taxes |
|
Income tax expense |
|
Net (income) loss attributable to noncontrolling interests |
|
Net income attributable to AMC Networks' stockholders |
|
Diluted EPS attributable to AMC Networks' stockholders |
Reported Results (GAAP) |
$ |
232,445 |
|
$ |
(59,054 |
) |
|
$ |
458 |
|
|
$ |
173,849 |
|
$ |
3.97 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
20,887 |
|
|
(4,175 |
) |
|
|
(3,409 |
) |
|
|
13,303 |
|
|
0.30 |
Restructuring and other related charges |
|
11,974 |
|
|
(2,777 |
) |
|
|
(204 |
) |
|
|
8,993 |
|
|
0.21 |
Impairment and other charges |
|
24,882 |
|
|
(2,175 |
) |
|
|
(15,949 |
) |
|
|
6,758 |
|
|
0.15 |
Impact of debt modification |
|
605 |
|
|
(147 |
) |
|
|
— |
|
|
|
458 |
|
|
0.01 |
Adjusted Results (Non-GAAP) |
$ |
290,793 |
|
$ |
(68,328 |
) |
|
$ |
(19,104 |
) |
|
$ |
203,361 |
|
$ |
4.64 |
|
Six Months Ended June 30, 2022 |
|
Income from operations before income taxes |
|
Income tax expense |
|
Net (income) loss attributable to noncontrolling interests |
|
Net income attributable to AMC Networks' stockholders |
|
Diluted EPS attributable toAMC Networks' stockholders |
Reported Results (GAAP) |
$ |
275,116 |
|
$ |
(74,662 |
) |
|
$ |
(12,837 |
) |
|
$ |
187,617 |
|
$ |
4.29 |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
20,960 |
|
|
(4,146 |
) |
|
|
(3,360 |
) |
|
|
13,454 |
|
|
0.31 |
Restructuring and other related charges |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Impairment and other charges |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Impact of debt modification |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
Adjusted Results (Non-GAAP) |
$ |
296,076 |
|
$ |
(78,808 |
) |
|
$ |
(16,197 |
) |
|
$ |
201,071 |
|
$ |
4.60 |
AMC Networks (NASDAQ:AMCX)
Historical Stock Chart
From Jul 2024 to Aug 2024
AMC Networks (NASDAQ:AMCX)
Historical Stock Chart
From Aug 2023 to Aug 2024