AMC Networks Inc. ("AMC Networks" or the "Company") (NASDAQ: AMCX)
today reported financial results for the fourth quarter and full
year ended December 31, 2023.
AMC Networks Chief Executive Officer
Kristin Dolan said: "In the fourth quarter and across
2023, we continued to see success in the areas that will drive this
company forward – programming, partnerships and profitability. I’m
encouraged that this year we were able to grow streaming revenue
and strengthen our subscriber base, expand our consolidated AOI(1)
margin to 25%, and meaningfully grow our free cash flow. Nearly a
year since joining AMC Networks as CEO, I am proud of the progress
we have made in a fast-changing environment, and the new and
innovative ways we are engaging with viewers and our commercial and
creative partners."
Operational Highlights:
- Significant
affiliate renewal activity in 2023 including major domestic
partners Charter and Dish/Sling, among others.
- Renewed majority of
our footprint across Canada and executed deals with Canadian video
distributors to carry AMC+ and our streaming services.
- Collaborated with
Philo on an innovative new packaging arrangement that will include
AMC+ ad-supported in Philo’s base video offering for all new and
returning customers, at no additional cost to the customer.
- Expanded the
addressable market of AMC+ through the launch of an ad-supported
tier in the third quarter, with strong new sign-up activity on
available platforms since launch.
- Continued expansion
of our growing FAST channels business, now with 17 FAST channels,
representing 100 channel feeds across 11 distinct distribution
platforms.
- Delighted fans in
2023 with a deep slate of original programming across our networks
and services including Anne Rice’s Mayfair Witches, Dark Winds, The
Walking Dead: Dead City, The Walking Dead: Daryl Dixon, Acorn TV's
Harry Wild, WE tv's Love After Lockup and Toya & Reginae, anime
hit OSHI NO KO on HIDIVE, and indie film success Blackberry, among
many others.
- Kicking off 2024
with highly anticipated new original programming including:
- Monsieur Spade,
starring Clive Owen, on AMC, AMC+ and Acorn TV, which premiered in
January.
- The Walking Dead:
The Ones Who Live, starring Andrew Lincoln and Danai Gurira as
their iconic characters, Rick and Michonne, premiering February
25th.
- Parish, starring
Giancarlo Esposito, which debuts on AMC and AMC+ in March.
- Orphan Black:
Echoes, starring Krysten Ritter, set in the world of Orphan Black,
to launch on AMC, AMC+ and BBC AMERICA.
Dollars in thousands, except per share amounts |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
2022 |
|
Change |
Net Revenues |
$ |
678,848 |
|
|
$ |
964,520 |
|
|
(29.6 |
)% |
|
$ |
2,711,877 |
|
$ |
3,096,545 |
|
(12.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
$ |
(11,443 |
) |
|
$ |
(391,641 |
) |
|
97.1 |
% |
|
$ |
388,412 |
|
$ |
86,916 |
|
n/m |
Adjusted Operating Income(1) |
$ |
100,296 |
|
|
$ |
137,371 |
|
|
(27.0 |
)% |
|
$ |
670,104 |
|
$ |
738,402 |
|
(9.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings (Loss) Per Share |
$ |
(0.50 |
) |
|
$ |
(6.11 |
) |
|
91.8 |
% |
|
$ |
4.90 |
|
$ |
0.17 |
|
n/m |
Adjusted Earnings Per
Share(1) |
$ |
0.72 |
|
|
$ |
2.52 |
|
|
(71.4 |
)% |
|
$ |
7.20 |
|
$ |
9.21 |
|
(21.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
72,780 |
|
|
$ |
145,243 |
|
|
(49.9 |
)% |
|
$ |
203,919 |
|
$ |
181,834 |
|
12.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow(1) |
$ |
65,965 |
|
|
$ |
134,481 |
|
|
(50.9 |
)% |
|
$ |
168,712 |
|
$ |
137,562 |
|
22.6 |
% |
(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.
Full Year Financial
Highlights:
- Net cash provided
by operating activities of $204 million; Free Cash Flow of $169
million, year-over-year growth of 23%.
- Free Cash Flow for
the full year included $113 million of one-time cash restructuring
payments, excluding these payments, Free Cash Flow would have been
$281 million.
- Net revenues of
$2,712 million.
- Streaming revenues
increased 13% to $566 million; ended 2023 with 11.4 million
streaming subscribers.
- Operating income of
$388 million; Adjusted Operating Income of $670 million, with a
margin of 25%.
- Diluted EPS of
$4.90; Adjusted EPS of $7.20.
Fourth Quarter Financial
Highlights:
- Net cash provided
by operating activities of $73 million; Free Cash Flow of $66
million.
- Net revenues of
$679 million.
- Operating loss of
$11 million; Adjusted Operating Income of $100 million.
- Diluted EPS of
$(0.50); Adjusted EPS of $0.72.
Segment Results:(dollars in
thousands)
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
Net Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
581,716 |
|
|
$ |
861,108 |
|
|
(32.4 |
)% |
|
$ |
2,316,587 |
|
|
$ |
2,675,142 |
|
|
(13.4 |
)% |
International and Other |
|
99,502 |
|
|
|
107,633 |
|
|
(7.6 |
)% |
|
|
404,476 |
|
|
|
442,525 |
|
|
(8.6 |
)% |
Inter-segment Eliminations |
|
(2,370 |
) |
|
|
(4,221 |
) |
|
43.9 |
% |
|
|
(9,186 |
) |
|
|
(21,122 |
) |
|
56.5 |
% |
Total Net Revenues |
$ |
678,848 |
|
|
$ |
964,520 |
|
|
(29.6 |
)% |
|
$ |
2,711,877 |
|
|
$ |
3,096,545 |
|
|
(12.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
59,897 |
|
|
$ |
(287,426 |
) |
|
n/m |
|
$ |
583,542 |
|
|
$ |
286,517 |
|
|
103.7 |
% |
International and Other |
|
(20,046 |
) |
|
|
(36,702 |
) |
|
45.4 |
% |
|
|
(9,624 |
) |
|
|
3,031 |
|
|
n/m |
Corporate / Inter-segment Eliminations |
|
(51,294 |
) |
|
|
(67,513 |
) |
|
24.0 |
% |
|
|
(185,506 |
) |
|
|
(202,632 |
) |
|
8.5 |
% |
Total Operating Income (Loss) |
$ |
(11,443 |
) |
|
$ |
(391,641 |
) |
|
97.1 |
% |
|
$ |
388,412 |
|
|
$ |
86,916 |
|
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
Domestic Operations |
$ |
123,539 |
|
|
$ |
153,987 |
|
|
(19.8 |
)% |
|
$ |
712,744 |
|
|
$ |
789,396 |
|
|
(9.7 |
)% |
International and Other |
|
7,158 |
|
|
|
13,480 |
|
|
(46.9 |
)% |
|
|
60,548 |
|
|
|
68,989 |
|
|
(12.2 |
)% |
Corporate / Inter-segment Eliminations |
|
(30,401 |
) |
|
|
(30,096 |
) |
|
(1.0 |
)% |
|
|
(103,188 |
) |
|
|
(119,983 |
) |
|
14.0 |
% |
Total Adjusted Operating Income |
$ |
100,296 |
|
|
$ |
137,371 |
|
|
(27.0 |
)% |
|
$ |
670,104 |
|
|
$ |
738,402 |
|
|
(9.2 |
)% |
Domestic Operations
Full Year Results:
-
Domestic Operations' revenues decreased 13% from the prior year to
$2,317 million.
-
Distribution and other revenues decreased 11% to $1,683 million.
-
Content licensing revenues decreased 30% to $343 million due to the
timing and availability of deliveries in the period. The prior year
period included deliveries of Silo, an AMC Studios produced series
for a third party, and the early delivery of certain episodes of
The Walking Dead and Fear the Walking Dead. Revenues related to
deliveries of Silo were $56 million in 2023 and $126 million in
2022.
-
Subscription revenues decreased 4% to $1,340 million due to
declines in the linear subscriber universe, partially offset by
streaming revenue growth.
-
Streaming revenues increased 13% to $566 million due to the
strengthening of our subscriber base, year-over-year streaming
subscriber growth and price increases.
-
Affiliate revenues declined 13% due to basic subscriber declines
including the 3% revenue impact of a strategic non-renewal that
occurred at the end of 2022.
-
Advertising revenues decreased 20% to $634 million due to
anticipated linear ratings declines, a challenging ad market and
fewer original programming episodes within the year, partly offset
by digital and advanced advertising revenue growth.
-
Operating income of $584 million included an impairment charge
related to our BBCA joint venture of $42 million.
-
Adjusted Operating Income decreased 10% to $713 million, with a
margin of 31%. The decrease in Adjusted Operating Income was
primarily driven by a decrease in revenues, partly offset by
continued cost management measures, including programming and
marketing efficiencies.
Fourth Quarter Results:
-
Domestic Operations' revenues decreased 32% from the prior year to
$582 million.
-
Distribution and other revenues decreased 35% to $423 million.
-
Content licensing revenues decreased 68% to $96 million due to the
timing and availability of deliveries in the period. The prior year
period included deliveries of Silo, an AMC Studios produced series
for a third party, and the early delivery of certain episodes of
The Walking Dead and Fear the Walking Dead. Revenues related to
deliveries of Silo in the prior year period were $126 million.
-
Subscription revenues decreased 8% to $327 million due to declines
in the linear subscriber universe, partially offset by streaming
revenue growth.
-
Streaming revenues increased 4% to $145 million, primarily driven
by the strengthening of our subscriber base and partially driven by
year-over-year streaming subscriber growth.
-
Streaming subscribers increased 1% to 11.4 million as compared to
the prior year period. As compared to 3Q'23 subscribers of 11.1
million, fourth quarter subscribers sequentially increased 3%.
-
Affiliate revenues declined 16% due to basic subscriber declines
including the 4% revenue impact of a strategic non-renewal that
occurred at the end of 2022.
-
Advertising revenues decreased 23% to $158 million due to
anticipated linear ratings declines, a challenging ad market and
fewer original programming episodes within the quarter, partly
offset by digital and advanced advertising revenue growth.
-
Operating income of $60 million included an impairment charge
related to our BBCA joint venture of $42 million.
-
Adjusted Operating Income decreased 20% to $124 million, with a
margin of 21%. The decrease in Adjusted Operating Income was
primarily driven by a decrease in revenues, partly offset by
continued cost management measures, including programming and
marketing efficiencies.
International and Other
Full Year Results:
-
International and Other revenues decreased 9% from the prior year
to $404 million.
-
Distribution and other revenues decreased 10% to $323 million,
primarily due to lower production volumes at 25/7 Media.
-
Subscription revenues decreased 1% to $221 million due to the
non-renewal of an AMCNI distribution agreement in the U.K. that
occurred in the fourth quarter of 2023.
-
Content licensing revenues decreased 25% to $102 million due to a
reduction in the volume of productions at 25/7 Media.
-
Advertising revenues decreased 2% to $82 million due to marketplace
declines in the U.K., partially offset by digital and advanced
advertising growth in the U.K.
-
Operating loss of $10 million included impairment charges of $45
million related to 25/7 Media.
-
Adjusted Operating Income decreased 12% to $61 million. The
decrease in Adjusted Operating Income was driven by a decrease in
revenues and an increase in selling, general and administrative
expenses, partly offset by a decrease in technical and operating
expenses.
Fourth Quarter Results:
-
International and Other revenues decreased 8% from the prior year
to $100 million.
-
Distribution and other revenues decreased 11% to $76 million,
primarily due to lower production volumes at 25/7 Media.
-
Subscription revenues decreased 5% to $51 million due to the
non-renewal of an AMCNI distribution agreement in the U.K. that
occurred in the fourth quarter of 2023.
-
Content licensing revenues decreased 21% to $25 million due to a
reduction in the volume of productions at 25/7 Media.
-
Advertising revenues increased 7% to $24 million due to the
beneficial impact of foreign currency translation and higher sales
in Central and Eastern Europe.
-
Operating loss of $20 million included an impairment charge of $20
million related to 25/7 Media.
-
Adjusted Operating Income decreased 47% to $7 million. The decrease
in Adjusted Operating Income was driven by a decrease in revenues
and an increase in selling, general and administrative expenses,
partly offset by a decrease in technical and operating
expenses.
Other Matters
Open Market Repurchase of 4.75% Senior Notes due
2025In December 2023, the Company repurchased $25.3 million
principal amount of our 4.75% senior notes due 2025 on the open
market, at a discount, and retired the repurchased notes.
Redemption of 5.00% Senior Notes due 2024In
December 2023, the Company redeemed the remaining $400 million
principal amount of our 5.00% senior notes due 2024. The 2024
senior notes were redeemed at a redemption price of 100.000% of the
principal amount plus accrued and unpaid interest.
25/7 Media SaleOn December 29, 2023, the Company
sold its remaining interest in 25/7 Media to the noncontrolling
interest holders.
The results of operations of 25/7 Media are
included in the consolidated financial statements through the date
of sale. In 2023, 25/7 Media represented $91 million of revenue and
$4 million of Adjusted Operating Income in our International and
Other segment.
Impairment and other chargesImpairment and other
charges of $96.7 million for the year ended December 31, 2023
primarily consisted of $65.4 million of long-lived assets
impairment charges at BBCA and 25/7 Media, and $21.7 million of
goodwill impairment charges at 25/7 Media.
In June 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,
we 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.
In December 2023, we recognized an additional
impairment charge of $19.8 million, reflecting a write-down of
substantially all of the goodwill associated with the 25/7 Media
reporting unit.
During the fourth quarter of 2023, given
continued market challenges and linear declines, we determined that
the carrying amount of the BBCA asset group exceeded its fair
value, therefore an impairment charge of $42.4 million was
recorded.
Stock Repurchase Program & Outstanding
SharesAs 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,
2023, the Company did not repurchase any shares. As of December 31,
2023, the Company had $135 million of authorization remaining for
repurchase under the Stock Repurchase Program.
As of February 2, 2024, the Company had
32,077,134 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, 2023, which will be filed later today, for
further details regarding the above matters.
Description of Non-GAAP
Measures
Internally, the Company uses net revenues,
Adjusted Operating Income (Loss), and Free Cash Flow measures as
the most important indicators of its business performance and
evaluates management’s effectiveness with specific reference to
these indicators.
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.
Adjusted Operating Income (Loss) should be
viewed as a supplement to and not a substitute for operating income
(loss), net income (loss), and other measures of performance
presented in accordance with U.S. generally accepted accounting
principles ("GAAP"). Since Adjusted Operating Income (Loss) is not
a measure of performance calculated in accordance with GAAP, this
measure may not be comparable to similar measures with similar
titles used by other companies. For a reconciliation of operating
income (loss) to Adjusted Operating Income (Loss), please see page
9-10 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, 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 12 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
13-14 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 fourth quarter and full year 2023
results. To listen to the call, please visit
investors.amcnetworks.com.
About AMC Networks Inc.
AMC Networks (Nasdaq: AMCX) is home to many of
the greatest stories and characters in TV and film and the premier
destination for passionate and engaged fan communities around the
world. The company creates and curates celebrated series and films
across distinct brands and makes them available to audiences
everywhere. Its portfolio includes targeted streaming services
AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK and HIDIVE; cable
networks AMC, BBC AMERICA (operated through a joint venture with
BBC Studios), IFC, SundanceTV and WE tv; and film distribution
labels IFC Films and RLJE Films. The company also operates AMC
Studios, its in-house studio, production and distribution operation
behind acclaimed and fan-favorite originals including The Walking
Dead Universe and the Anne Rice Immortal Universe; and AMC Networks
International, its international programming 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 (LOSS) (Dollars in thousands, except per
share amounts)(unaudited) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues, net |
$ |
678,848 |
|
|
$ |
964,520 |
|
|
$ |
2,711,877 |
|
|
$ |
3,096,545 |
|
Operating expenses: |
|
|
|
|
|
|
|
Technical and operating (excluding depreciation and
amortization) |
|
393,910 |
|
|
|
612,434 |
|
|
|
1,327,500 |
|
|
|
1,515,902 |
|
Selling, general and administrative |
|
196,951 |
|
|
|
226,373 |
|
|
|
764,087 |
|
|
|
896,817 |
|
Depreciation and amortization |
|
27,773 |
|
|
|
27,671 |
|
|
|
107,402 |
|
|
|
107,227 |
|
Impairment and other charges |
|
66,407 |
|
|
|
40,717 |
|
|
|
96,689 |
|
|
|
40,717 |
|
Restructuring and other related charges |
|
5,250 |
|
|
|
448,966 |
|
|
|
27,787 |
|
|
|
448,966 |
|
Total operating expenses |
|
690,291 |
|
|
|
1,356,161 |
|
|
|
2,323,465 |
|
|
|
3,009,629 |
|
Operating income (loss) |
|
(11,443 |
) |
|
|
(391,641 |
) |
|
|
388,412 |
|
|
|
86,916 |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest expense |
|
(37,399 |
) |
|
|
(36,677 |
) |
|
|
(152,703 |
) |
|
|
(133,762 |
) |
Interest income |
|
10,074 |
|
|
|
4,774 |
|
|
|
37,018 |
|
|
|
13,326 |
|
Miscellaneous, net |
|
10,761 |
|
|
|
28 |
|
|
|
23,279 |
|
|
|
3,568 |
|
Total other expense |
|
(16,564 |
) |
|
|
(31,875 |
) |
|
|
(92,406 |
) |
|
|
(116,868 |
) |
Income (loss) from operations before income taxes |
|
(28,007 |
) |
|
|
(423,516 |
) |
|
|
296,006 |
|
|
|
(29,952 |
) |
Income tax benefit (expense) |
|
(11,881 |
) |
|
|
144,098 |
|
|
|
(94,606 |
) |
|
|
40,980 |
|
Net income (loss) including noncontrolling interests |
|
(39,888 |
) |
|
|
(279,418 |
) |
|
|
201,400 |
|
|
|
11,028 |
|
Net (income) loss attributable to noncontrolling interests |
|
18,079 |
|
|
|
14,729 |
|
|
|
14,064 |
|
|
|
(3,434 |
) |
Net income (loss) attributable to AMC Networks’ stockholders |
$ |
(21,809 |
) |
|
$ |
(264,689 |
) |
|
$ |
215,464 |
|
|
$ |
7,594 |
|
|
|
|
|
|
|
|
|
Net income (loss)
per share attributable to AMC Networks’ stockholders: |
|
|
|
|
Basic |
$ |
(0.50 |
) |
|
$ |
(6.11 |
) |
|
$ |
4.92 |
|
|
$ |
0.18 |
|
Diluted |
$ |
(0.50 |
) |
|
$ |
(6.11 |
) |
|
$ |
4.90 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
Weighted average common shares: |
|
|
|
|
|
|
|
Basic |
|
43,951 |
|
|
|
43,328 |
|
|
|
43,827 |
|
|
|
43,135 |
|
Diluted |
|
43,951 |
|
|
|
43,328 |
|
|
|
43,991 |
|
|
|
43,731 |
|
|
AMC NETWORKS INC. SUPPLEMENTAL FINANCIAL
DATA (Dollars in thousands)
(Unaudited) |
|
|
Three Months Ended December 31, 2023 |
|
DomesticOperations |
|
Internationaland Other |
|
Corporate /Inter-segmentEliminations |
|
Consolidated |
Operating income (loss) |
$ |
59,897 |
|
|
$ |
(20,046 |
) |
|
$ |
(51,294 |
) |
|
$ |
(11,443 |
) |
Share-based compensation expenses |
|
3,632 |
|
|
|
888 |
|
|
|
1,474 |
|
|
|
5,994 |
|
Depreciation and amortization |
|
11,441 |
|
|
|
4,183 |
|
|
|
12,149 |
|
|
|
27,773 |
|
Restructuring and other related charges |
|
(590 |
) |
|
|
2,292 |
|
|
|
3,548 |
|
|
|
5,250 |
|
Impairment and other charges |
|
46,566 |
|
|
|
19,841 |
|
|
|
— |
|
|
|
66,407 |
|
Cloud computing amortization |
|
6 |
|
|
|
— |
|
|
|
3,722 |
|
|
|
3,728 |
|
Majority owned equity investees AOI |
|
2,587 |
|
|
|
— |
|
|
|
— |
|
|
|
2,587 |
|
Adjusted operating income (loss) |
$ |
123,539 |
|
|
$ |
7,158 |
|
|
$ |
(30,401 |
) |
|
$ |
100,296 |
|
|
Three Months Ended December 31, 2022 |
|
DomesticOperations |
|
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 |
|
|
AMC NETWORKS INC. SUPPLEMENTAL FINANCIAL
DATA (Dollars in thousands)
(Unaudited) |
|
|
Twelve Months Ended December 31, 2023 |
|
DomesticOperations |
|
Internationaland Other |
|
Corporate /Inter-segmentEliminations |
|
Consolidated |
Operating income (loss) |
$ |
583,542 |
|
|
$ |
(9,624 |
) |
|
$ |
(185,506 |
) |
|
$ |
388,412 |
|
Share-based compensation expenses |
|
13,765 |
|
|
|
3,388 |
|
|
|
8,512 |
|
|
|
25,665 |
|
Depreciation and amortization |
|
46,494 |
|
|
|
18,127 |
|
|
|
42,781 |
|
|
|
107,402 |
|
Restructuring and other related charges |
|
3,350 |
|
|
|
3,934 |
|
|
|
20,503 |
|
|
|
27,787 |
|
Impairment and other charges |
|
51,966 |
|
|
|
44,723 |
|
|
|
— |
|
|
|
96,689 |
|
Cloud computing amortization |
|
21 |
|
|
|
— |
|
|
|
10,522 |
|
|
|
10,543 |
|
Majority owned equity investees AOI |
|
13,606 |
|
|
|
— |
|
|
|
— |
|
|
|
13,606 |
|
Adjusted operating income (loss) |
$ |
712,744 |
|
|
$ |
60,548 |
|
|
$ |
(103,188 |
) |
|
$ |
670,104 |
|
|
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 |
|
|
AMC NETWORKS INC.SUPPLEMENTAL FINANCIAL
DATA (Dollars in
thousands)(Unaudited) |
|
Capitalization |
December 31, 2023 |
|
Cash and cash equivalents |
$ |
570,576 |
|
|
|
|
Credit facility debt(a) |
$ |
607,500 |
|
Senior notes(a) |
|
1,774,729 |
|
Total debt |
$ |
2,382,229 |
|
|
|
|
Net debt |
$ |
1,811,653 |
|
|
|
|
Finance leases |
|
19,131 |
|
Net debt and finance leases |
$ |
1,830,784 |
|
|
|
|
|
Twelve Months EndedDecember 31, 2023 |
|
Operating Income (GAAP) |
$ |
388,412 |
|
Share-based compensation expense |
|
25,665 |
|
Depreciation and amortization |
|
107,402 |
|
Restructuring and other related charges |
|
27,787 |
|
Impairment and other charges |
|
96,689 |
|
Cloud computing amortization |
|
10,543 |
|
Majority owned equity investees AOI |
|
13,606 |
|
Adjusted Operating Income (Non-GAAP) |
$ |
670,104 |
|
|
|
|
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 December 31, 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 December 31, |
|
Twelve Months Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by operating activities |
$ |
72,780 |
|
|
$ |
145,243 |
|
|
$ |
203,919 |
|
|
$ |
181,834 |
|
Less: capital expenditures |
|
(6,815 |
) |
|
|
(10,762 |
) |
|
|
(35,207 |
) |
|
|
(44,272 |
) |
Free cash flow |
$ |
65,965 |
|
|
$ |
134,481 |
|
|
$ |
168,712 |
|
|
$ |
137,562 |
|
Supplemental Cash Flow Information |
Three Months EndedDecember 31, |
|
Twelve Months EndedDecember 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Restructuring initiatives(3) |
$ |
(10,960 |
) |
|
$ |
(324 |
) |
|
$ |
(112,550 |
) |
|
$ |
(324 |
) |
Distributions to noncontrolling interests |
|
(25,330 |
) |
|
|
(6,725 |
) |
|
|
(72,876 |
) |
|
|
(34,957 |
) |
|
|
|
|
|
|
|
|
(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 $5.4
million and $66.7 million for content impairments and other exit
costs for the three and twelve months ended December 31, 2023,
respectively, and $5.6 million and $45.9 million for severance and
employee-related costs, for the three and twelve months ended
December 31, 2023, respectively. |
|
AMC NETWORKS INC.SUPPLEMENTAL FINANCIAL DATA
(Dollars in thousands, except per share
amounts)(Unaudited) |
|
Adjusted Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2023 |
|
Income (loss) from operations before income taxes |
|
Income tax (expense) benefit |
|
Net (income) loss attributable to noncontrolling interests |
|
Net income (loss) attributable to AMC Networks' stockholders |
|
Diluted EPS attributable to AMC Networks' stockholders |
Reported Results (GAAP) |
$ |
(28,007 |
) |
|
$ |
(11,881 |
) |
|
$ |
18,079 |
|
|
$ |
(21,809 |
) |
|
$ |
(0.50 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
9,811 |
|
|
|
(1,887 |
) |
|
|
(1,331 |
) |
|
|
6,593 |
|
|
|
0.15 |
|
Restructuring and other related charges |
|
5,250 |
|
|
|
(496 |
) |
|
|
(921 |
) |
|
|
3,833 |
|
|
|
0.09 |
|
Impairment and other charges |
|
66,407 |
|
|
|
(2,067 |
) |
|
|
(21,226 |
) |
|
|
43,114 |
|
|
|
0.98 |
|
Impact of debt modification |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted Results (Non-GAAP) |
$ |
53,461 |
|
|
$ |
(16,331 |
) |
|
$ |
(5,399 |
) |
|
$ |
31,731 |
|
|
$ |
0.72 |
|
|
Three Months Ended December 31, 2022 |
|
Income (loss) from operations before income taxes |
|
Income tax (expense) benefit |
|
Net (income) loss attributable to noncontrolling interests |
|
Net income (loss) attributable to AMC Networks' stockholders |
|
Diluted EPS attributable to AMC 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 |
|
Impact of debt modification |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
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.
AMC NETWORKS INC.SUPPLEMENTAL FINANCIAL
DATA (Dollars in thousands, except per share
amounts)(Unaudited) |
|
Adjusted Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2023 |
|
Income (loss) from operations before income taxes |
|
Income tax (expense) benefit |
|
Net (income) loss attributable to noncontrolling interests |
|
Net income attributable to AMC Networks' stockholders |
|
Diluted EPS attributable to AMC Networks'stockholders |
Reported Results (GAAP) |
$ |
296,006 |
|
|
$ |
(94,606 |
) |
|
$ |
14,064 |
|
|
$ |
215,464 |
|
|
$ |
4.90 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
40,537 |
|
|
|
(8,353 |
) |
|
|
(6,069 |
) |
|
|
26,115 |
|
|
|
0.59 |
|
Restructuring and other related charges |
|
27,787 |
|
|
|
(5,891 |
) |
|
|
(1,125 |
) |
|
|
20,771 |
|
|
|
0.47 |
|
Impairment and other charges |
|
96,689 |
|
|
|
(5,585 |
) |
|
|
(37,175 |
) |
|
|
53,929 |
|
|
|
1.23 |
|
Impact of debt modification |
|
605 |
|
|
|
(147 |
) |
|
|
— |
|
|
|
458 |
|
|
|
0.01 |
|
Adjusted Results (Non-GAAP) |
$ |
461,624 |
|
|
$ |
(114,582 |
) |
|
$ |
(30,305 |
) |
|
$ |
316,737 |
|
|
$ |
7.20 |
|
|
Twelve Months Ended December 31, 2022 |
|
Income (loss) from operations before income taxes |
|
Income tax (expense) benefit |
|
Net (income) loss attributable to noncontrolling interests |
|
Net income attributable to AMC Networks'stockholders |
|
Diluted EPS attributable to AMC 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 |
|
Impact of debt modification |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted Results (Non-GAAP) |
$ |
501,200 |
|
|
$ |
(66,378 |
) |
|
$ |
(32,000 |
) |
|
$ |
402,822 |
|
|
$ |
9.21 |
|
AMC Networks (NASDAQ:AMCX)
Historical Stock Chart
From May 2024 to Jun 2024
AMC Networks (NASDAQ:AMCX)
Historical Stock Chart
From Jun 2023 to Jun 2024