Core Viewpoint - AMC Networks Inc. plans to offer $125 million in convertible senior notes due 2029, with an option for an additional $18.75 million, to qualified institutional buyers, aiming to use the proceeds for general corporate purposes, including debt repayment [1][2]. Group 1: Offering Details - The offering will be made under Rule 144A of the Securities Act, targeting qualified institutional buyers [1][3]. - The notes will be guaranteed by existing and future domestic subsidiaries of AMC Networks on a senior, unsecured basis [2]. - The notes will mature on February 15, 2029, and will be convertible under specific conditions prior to November 15, 2028, and at any time thereafter until maturity [2]. Group 2: Financial Implications - AMC Networks intends to utilize the net proceeds from the offering for general corporate purposes, which may include repaying existing debt [1]. - The initial conversion rate and interest rate of the notes will be determined through negotiations with initial purchasers [2]. Group 3: Company Overview - AMC Networks is a prominent media company known for its diverse portfolio, including streaming services like AMC+, Acorn TV, and cable networks such as AMC and BBC AMERICA [4]. - The company operates AMC Studios, producing original franchises like The Walking Dead Universe, and has a significant international programming business [4].

PART I. FINANCIAL INFORMATION [Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2024, including balance sheets, income statements, and cash flows [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$4,911,556** | **$4,969,787** | | Cash and cash equivalents | $690,522 | $570,576 | | Program rights, net | $1,753,270 | $1,802,653 | | Goodwill | $622,190 | $626,496 | | **Total Liabilities** | **$3,607,281** | **$3,710,544** | | Long-term debt, net | $2,279,086 | $2,294,249 | | **Total Stockholders' Equity** | **$1,106,905** | **$1,073,946** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income (in thousands, except per share) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Revenues, net | $596,461 | $717,447 | | Operating income | $110,178 | $173,304 | | Net income attributable to AMC Networks' stockholders | $45,803 | $103,610 | | Diluted EPS | $1.03 | $2.36 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $150,869 | $(132,519) | | Net cash used in investing activities | $(2,784) | $(7,005) | | Net cash used in financing activities | $(23,133) | $(28,310) | | **Net increase (decrease) in cash** | **$124,952** | **$(167,834)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company operates through two segments: Domestic Operations (including national networks, streaming services, and AMC Studios) and International (international programming businesses)[19](index=19&type=chunk) - In Q1 2023, the company recorded restructuring charges of **$5.9 million**, primarily for severance and personnel costs, with no such charges in Q1 2024[32](index=32&type=chunk)[33](index=33&type=chunk) - Subsequent to quarter end, in April 2024, the company undertook significant debt refinancing activities, including issuing **$875 million** of 10.25% Senior Secured Notes due 2029[62](index=62&type=chunk)[65](index=65&type=chunk)[67](index=67&type=chunk) - The company is involved in the "MFN Litigation" with plaintiffs claiming over **$200 million** in damages, with trial scheduled for May 6, 2025[86](index=86&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial performance, highlighting a 16.9% revenue decrease to $596.5 million, driven by declines in subscription and content licensing, while generating positive operating cash flow [Consolidated Results of Operations](index=30&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated Results of Operations (in thousands) | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Total revenues, net | $596,461 | $717,447 | (16.9)% | | Operating income | $110,178 | $173,304 | (36.4)% | | Net income attributable to AMC Networks' stockholders | $45,803 | $103,610 | (55.8)% | - The **16.9% decrease in total revenues** was driven by declines across all major categories, including a 7.6% decrease in subscription revenue and a 53.9% decrease in content licensing revenue[121](index=121&type=chunk)[122](index=122&type=chunk) - Technical and operating expenses decreased by **16.9%**, largely in line with the revenue decline, reflecting lower costs associated with content deliveries and the 25/7 Media divestiture[121](index=121&type=chunk)[123](index=123&type=chunk) [Segment Results of Operations](index=32&type=section&id=Segment%20Results%20of%20Operations) Domestic Operations Segment Results (in thousands) | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Total revenues, net | $524,226 | $611,854 | (14.3)% | | Segment adjusted operating income | $162,319 | $219,388 | (26.0)% | - Domestic streaming revenues grew **3.0% to $145.1 million**, while affiliate revenues declined 14.1% due to basic subscriber losses, with aggregate paid streaming subscribers increasing **2.4% year-over-year to 11.5 million**[98](index=98&type=chunk)[131](index=131&type=chunk) International Segment Results (in thousands) | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Total revenues, net | $75,605 | $108,072 | (30.0)% | | Segment adjusted operating income | $13,400 | $21,137 | (36.6)% | - The significant decrease in International revenues and expenses was primarily due to the divestiture of the 25/7 Media business and the non-renewal of a distribution agreement in the U.K[136](index=136&type=chunk)[137](index=137&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) - The company significantly improved its cash flow, with net cash provided by operating activities at **$150.9 million** in Q1 2024, compared to a use of $132.5 million in Q1 2023, driven by cost management[145](index=145&type=chunk)[146](index=146&type=chunk) Free Cash Flow Reconciliation (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $150,869 | $(132,519) | | Less: capital expenditures | $(6,720) | $(11,498) | | **Free cash flow** | **$144,149** | **$(144,017)** | - In April 2024, the company executed a series of refinancing transactions to extend its debt maturities, including issuing **$875 million** in new Senior Secured Notes and amending its credit facility[142](index=142&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company discloses its exposure to market risks, primarily from changes in interest rates and foreign currency exchange rates - As of March 31, 2024, the company had **$2.4 billion of debt outstanding**, of which **$590.6 million** was subject to variable interest rates[166](index=166&type=chunk) - A hypothetical **100 basis point increase in interest rates** would result in an approximate **$5.9 million increase in annual interest expense**[166](index=166&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2024 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period[168](index=168&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 14 of the financial statements for details on legal matters, including the "MFN Litigation" and Video Privacy Protection Act claims - For a detailed description of legal proceedings, the report refers to Note 14 in the financial statements[170](index=170&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company discusses its stock repurchase program, noting no shares were repurchased during Q1 2024, with $135.3 million remaining authorized - The company did not repurchase any of its Class A common stock during the three months ended March 31, 2024[171](index=171&type=chunk) - As of March 31, 2024, **$135.3 million** of authorization remained under the company's stock repurchase program[171](index=171&type=chunk) [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including employment agreements, debt-related indentures, and certifications by the CEO and CFO

AMC Networks Inc. (NASDAQ:AMCX) Q1 2024 Earnings Call Transcript May 10, 2024 8:30 AM ET Company Participants Nicholas Seibert - VP, Corporate Development and IR Kristin Dolan - Chief Executive Officer Patrick O'Connell - Chief Financial Officer Dan McDermott - President Entertainment and AMC Studios Kimberly Kelleher - Chief Commercial Officer Conference Call Participants David Joyce - Seaport Research Partners Thomas Yeh - Morgan Stanley Robert Fishman - MoffettNathanson Charles Wilber - Guggenheim Securi ...

Core Insights - AMC Networks reported revenue of $596.46 million for Q1 2024, a year-over-year decline of 16.9% and an EPS of $1.16 compared to $2.62 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $603.82 million, resulting in a surprise of -1.22%, while the EPS surprise was -35.20% against a consensus estimate of $1.79 [1] Revenue Performance - Domestic Operations revenue was $524.23 million, below the three-analyst average estimate of $527.54 million, reflecting a year-over-year decline of 14.3% [2] - Inter-segment eliminations reported revenue of -$3.37 million, worse than the -$2.50 million average estimate, but showed a year-over-year increase of 35.9% [2] - International and Other revenues were $75.61 million, compared to the $78.12 million average estimate, marking a year-over-year decline of 30% [2] Adjusted Operating Income - Adjusted Operating Income for Domestic Operations was $162.32 million, lower than the estimated $175.57 million [2] - Adjusted Operating Income for Inter-segment eliminations was -$26.60 million, worse than the -$23.26 million estimate [2] - Adjusted Operating Income for International and Other was $13.40 million, below the three-analyst average estimate of $16.92 million [2] Stock Performance - AMC Networks shares have returned +25.3% over the past month, outperforming the Zacks S&P 500 composite's +0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

[Q1 2024 Results Overview](index=1&type=section&id=AMC%20NETWORKS%20INC.%20REPORTS%20FIRST%20QUARTER%202024%20RESULTS) AMC Networks reported a 17% revenue decrease in Q1 2024, offset by strong free cash flow and strategic operational achievements [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) AMC Networks reported a 17% revenue decrease to $596 million in Q1 2024, with strong free cash flow and strategic operational gains Q1 2024 Financial Highlights (vs. Q1 2023) | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | Change | | :--- | :--- | :--- | :--- | | Net Revenues | $596.5M | $717.4M | (16.9)% | | Operating Income | $110.2M | $173.3M | (36.4)% | | Adjusted Operating Income | $149.1M | $215.8M | (30.9)% | | Diluted EPS | $1.03 | $2.36 | (56.4)% | | Adjusted EPS | $1.16 | $2.62 | (55.7)% | | Free Cash Flow | $144.1M | ($144.0M) | n/m | - The new series "The Walking Dead: The Ones Who Live" became AMC's best-performing series since the original's final season and the 1 season of all time on AMC+ in viewership and acquisition[2](index=2&type=chunk) - The company executed a multi-year renewal with Verizon for continued carriage of its linear networks and streaming services[2](index=2&type=chunk) - Announced plans to roll out standalone ad-supported versions of Acorn TV, Shudder, ALLBLK, and HIDIVE in 2025, expanding the ad-supported distribution ecosystem[2](index=2&type=chunk) - Strengthened the balance sheet through financing transactions in April, reducing gross debt by over **$500 million** since Q3 2023[2](index=2&type=chunk) [Segment Results](index=2&type=section&id=Segment%20Results) The company's Q1 2024 segment results show domestic revenue declines offset by streaming growth, while international revenue was impacted by divestitures [Domestic Operations](index=3&type=section&id=Domestic%20Operations) Domestic Operations revenue decreased 14% to $524 million, primarily due to content licensing, while streaming revenue grew 3% with 11.5 million subscribers Q1 2024 Domestic Operations Performance (vs. Q1 2023) | Metric | Q1 2024 (in millions) | YoY Change | Note | | :--- | :--- | :--- | :--- | | Total Revenues | $524M | (14)% | Down 6% excluding prior-year *Silo* deal | | Subscription Revenues | $323M | (7)% | Driven by linear subscriber declines | | Streaming Revenues | $145M | +3% | Driven by subscriber growth and price increases | | Advertising Revenues | $140M | (13)% | Due to linear ratings declines | | Adjusted Operating Income | $162M | (26)% | Margin of 31% | - Streaming subscribers increased **2%** year-over-year to **11.5 million** as of March 31, 2024[9](index=9&type=chunk) - Content licensing revenues decreased **40%**, but increased **31%** when excluding the prior-year delivery of the *Silo* series to a third party[9](index=9&type=chunk) [International Operations](index=3&type=section&id=International) International revenues decreased 30% to $76 million, mainly due to divestitures, though advertising revenues grew 16% Q1 2024 International Performance (vs. Q1 2023) | Metric | Q1 2024 (in millions) | YoY Change | Note | | :--- | :--- | :--- | :--- | | Total Revenues | $76M | (30)% | Down 3% excluding divested 25/7 Media | | Subscription Revenues | $51M | (10)% | Due to non-renewal of a U.K. distribution deal | | Advertising Revenues | $22M | +16% | Due to increased ratings and market growth | | Adjusted Operating Income | $13M | (37)% | Margin of 18% | - The significant revenue decline was primarily due to the sale of the 25/7 Media business on December 29, 2023, which contributed **$30 million** in revenue in Q1 2023[11](index=11&type=chunk) - Advertising revenue growth was attributed to increased ratings, growth across Central and Northern Europe, and digital advertising growth in the U.K.[11](index=11&type=chunk) [Financial Condition and Other Matters](index=4&type=section&id=Financial%20Condition%20and%20Other%20Matters) This section details AMC Networks' debt refinancing, capitalization, and stock repurchase activities, highlighting balance sheet management [Debt Refinancing Activity](index=4&type=section&id=2024%20Debt%20Refinancing%20Activity) In April 2024, AMC Networks refinanced debt by issuing new notes, redeeming existing ones, and extending credit facility maturities to strengthen its balance sheet - Issued **$875 million** of **10.25%** Senior Secured Notes due January 15, 2029[13](index=13&type=chunk) - Completed a cash tender offer and redemption of all outstanding **4.75%** Senior Notes due 2025[14](index=14&type=chunk) - Extended the maturity dates of **$325 million** in term loans and **$175 million** in revolving credit commitments to April 2028[15](index=15&type=chunk) [Capitalization](index=9&type=section&id=Capitalization) As of March 31, 2024, AMC Networks reported **$1.67 billion** net debt and a **2.8x** leverage ratio, which remained stable post-refinancing Capitalization as of March 31, 2024 | Metric | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $690.5M | | Total debt | $2,365.4M | | Net debt | $1,674.8M | | Leverage ratio | 2.8x | Pro Forma Capitalization (As Adjusted for April Refinancing) | Metric | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $601.2M | | Total debt | $2,300.0M | | Net debt | $1,698.8M | | Leverage ratio | 2.8x | [Stock Repurchase Program](index=4&type=section&id=Stock%20Repurchase%20Program%20%26%20Outstanding%20Shares) AMC Networks did not repurchase shares in Q1 2024, with **$135 million** remaining under its authorized repurchase program - No shares were repurchased during the quarter ended March 31, 2024[16](index=16&type=chunk) - As of March 31, 2024, the Company had **$135 million** of authorization remaining for repurchase under the Stock Repurchase Program[16](index=16&type=chunk) [Financial Statements and Reconciliations](index=5&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents AMC Networks' consolidated income statements and reconciliations of GAAP to non-GAAP financial measures for Q1 2024 [Consolidated Statements of Income](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) For Q1 2024, AMC Networks reported **$596.5 million** in net revenues, a **16.9%** decrease, with diluted EPS falling to **$1.03** Q1 2024 Consolidated Income Statement (vs. Q1 2023) | Metric | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Revenues, net | $596,461K | $717,447K | | Operating income | $110,178K | $173,304K | | Net income attributable to AMC Networks' stockholders | $45,803K | $103,610K | | Diluted EPS | $1.03 | $2.36 | [Description of Non-GAAP Measures](index=5&type=section&id=Description%20of%20Non-GAAP%20Measures) The company defines key non-GAAP measures like Adjusted Operating Income, Free Cash Flow, and Adjusted EPS to provide supplemental performance insights - Adjusted Operating Income (AOI) is defined as operating income before share-based compensation, depreciation and amortization, impairment charges, and restructuring charges[19](index=19&type=chunk) - Free Cash Flow is defined as net cash provided by operating activities less capital expenditures, serving as an indicator of liquidity[21](index=21&type=chunk) - Adjusted EPS is defined as earnings per diluted share excluding amortization of acquisition-related intangible assets, impairment charges, and restructuring charges[22](index=22&type=chunk) [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles GAAP results to non-GAAP metrics, showing how operating income, cash flow, and EPS are adjusted for Q1 2024 Q1 2024 Reconciliation of Operating Income to AOI | Metric | Amount (in thousands) | | :--- | :--- | | Operating income (GAAP) | $110,178 | | Share-based compensation | $6,075 | | Depreciation and amortization | $25,826 | | Cloud computing amortization | $3,548 | | Majority owned equity investees AOI | $3,497 | | **Adjusted operating income (Non-GAAP)** | **$149,124** | Q1 2024 Reconciliation to Free Cash Flow | Metric | Amount (in thousands) | | :--- | :--- | | Net cash provided by operating activities (GAAP) | $150,869 | | Less: capital expenditures | ($6,720) | | **Free Cash Flow (Non-GAAP)** | **$144,149** | Q1 2024 Reconciliation of GAAP EPS to Adjusted EPS | Metric | Per Share Amount | | :--- | :--- | | Diluted EPS (GAAP) | $1.03 | | Amortization of acquisition-related intangible assets | $0.13 | | **Adjusted EPS (Non-GAAP)** | **$1.16** |

Investors are always looking for stocks that are poised to beat at earnings season and AMC Networks Inc. (AMCX) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because AMC Networks is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty goo ...

The upcoming report from AMC Networks (AMCX) is expected to reveal quarterly earnings of $1.79 per share, indicating a decline of 31.7% compared to the year-ago period. Analysts forecast revenues of $603.82 million, representing a decrease of 15.8% year over year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 2.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a c ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering AMC Networks (AMCX) , which belongs to the Zacks Broadcast Radio and Television industry.This owner of cable channels including AMC and IFC has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 26.86%.For the most recent quarter, AMC Networks was expected t ...

Comcast said chairman and chief executive Brian Roberts‘ pay package for 2023 totaled $35.47 million, up from $32 million the year before. It included a $2.5 million base salary, stock awards valued at about $15 million, $9.2 million in option awards and $8.55 million in what’s called non-equity incentive plan compensation – like a cash bonus. Proxies list the salaries of a company’s top five highest paid executives. They generally come out in the spring ahead of annual shareholder meetings. Mike Cavanagh, ...

GREENWICH, Conn., April 22, 2024 (GLOBE NEWSWIRE) -- Gabelli Funds will host its 16th Annual Media & Entertainment Symposium at the Harvard Club in New York City on Thursday, June 6, 2024. The symposium will feature discussions with leading companies and organizations across the media ecosystem, with an emphasis on industry dynamics, current trends, and business fundamentals, as well as Sports Investing and Advertising Panels. Attendees will also have the opportunity to meet with management in a one-on-one ...