UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 1-35106 | --- | --- | --- | --- | |---------------------------------------------------------------------------------------|-------------------- ...

AMC Networks Inc. (NASDAQ:AMCX) Q1 2023 Earnings Conference Call May 9, 2023 8:30 AM ET Company Participants Kristin Dolan - Chief Executive Officer Kim Kelleher - Chief Commercial Officer Patrick O'Connell - Executive Vice President, Chief Financial Officer Nick Seibert - Vice President, Corporate Development and Investor Relations Conference Call Participants Ross Compton - Macquarie Brett Feldman - Goldman Sachs Douglas Creutz - TD Cowen Robert Fishman - MoffettNathanson David Karnovsky - JPMorgan Ryan G ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for Q1 2023, including balance sheets, income statements, and cash flows, highlighting stable revenues and increased cash usage from operations [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets and liabilities, primarily driven by changes in cash and current liabilities, while stockholders' equity increased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$5,463,238** | **$5,633,836** | | Cash and cash equivalents | $763,932 | $930,002 | | Program rights, net | $1,869,182 | $1,762,939 | | **Total Liabilities** | **$4,244,277** | **$4,526,354** | | Long-term debt, net | $2,763,767 | $2,778,703 | | **Total Stockholders' Equity** | **$969,042** | **$853,813** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For Q1 2023, total revenues remained stable, while operating income and net income slightly decreased, with diluted EPS also seeing a minor reduction Q1 2023 vs Q1 2022 Income Statement (in thousands, except per share) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Revenues, net | $717,447 | $712,157 | | Operating income | $173,304 | $174,677 | | Net income attributable to stockholders | $103,610 | $104,188 | | Diluted EPS | $2.36 | $2.38 | - The company recorded restructuring and other related charges of **$5.9 million** in Q1 2023, which were not present in the same period of 2022[7](index=7&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly increased in Q1 2023, primarily due to higher payments for program rights, while investing and financing cash flows remained stable Q1 2023 vs Q1 2022 Cash Flows (in thousands) | Cash Flow Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(132,519) | $(23,555) | | Net cash used in investing activities | $(7,005) | $(9,757) | | Net cash used in financing activities | $(28,310) | $(31,011) | | **Net decrease in cash** | **$(167,834)** | **$(64,323)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's business segments, restructuring charges, program rights, debt, legal proceedings, and segment performance, including ongoing litigation and a 2022 restructuring plan - The company operates through two segments: Domestic Operations (including national networks like AMC, streaming services, and AMC Studios) and International and Other (including international channels and production services)[18](index=18&type=chunk) - A restructuring plan initiated in November 2022 resulted in charges of **$5.9 million** for Q1 2023, primarily for severance costs. The accrued liability for this plan was **$61.5 million** as of March 31, 2023[26](index=26&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) - The company is involved in ongoing litigation with producers of 'The Walking Dead' regarding profit participation and a separate complaint related to a settlement with Frank Darabont, with plaintiffs seeking damages in excess of **$200 million** in the latter case[72](index=72&type=chunk)[73](index=73&type=chunk) Segment Revenues, Net (in thousands) | Segment | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Domestic Operations | $611,854 | $605,543 | | International and Other | $108,072 | $109,851 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial results, highlighting flat consolidated revenues, segment performance, the restructuring plan, liquidity, and compliance with debt covenants [Consolidated Results of Operations](index=29&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated revenues for Q1 2023 increased slightly, driven by content licensing growth offsetting advertising declines, while operating income saw a minor decrease due to expenses and restructuring charges Consolidated Revenue Breakdown (in thousands) | Revenue Stream | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Subscription | $404,220 | $404,160 | 0.0% | | Content licensing and other | $133,644 | $85,071 | 57.1% | | Advertising | $179,583 | $222,926 | -19.4% | | **Total revenues, net** | **$717,447** | **$712,157** | **0.7%** | - The increase in Content licensing revenue was primarily due to the timing of deliveries, including **$56.1 million** for the remaining episodes of an AMC Studios series to a third party[111](index=111&type=chunk) - The decrease in Advertising revenue was driven by linear ratings declines, softness in the advertising market, and fewer original programming episodes[111](index=111&type=chunk) - Selling, general and administrative (SG&A) expenses decreased by **19.5%**, primarily due to lower marketing and subscriber acquisition costs for streaming services[110](index=110&type=chunk)[114](index=114&type=chunk) [Segment Results of Operations](index=31&type=section&id=Segment%20Results%20of%20Operations) Domestic Operations saw a slight increase in adjusted operating income due to lower SG&A, despite declining affiliate revenue, while International and Other segment's AOI decreased due to unfavorable foreign currency rates - In Domestic Operations, streaming revenues grew to **$140.9 million**, a **28.6%** increase YoY, driven by subscriber growth to **11.5 million**[89](index=89&type=chunk)[121](index=121&type=chunk) - Domestic affiliate revenue declined **11.7%** due to basic subscriber declines and a strategic non-renewal of a distribution agreement[121](index=121&type=chunk) Segment Adjusted Operating Income (AOI) (in thousands) | Segment | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Domestic Operations | $219,388 | $219,219 | 0.1% | | International and Other | $21,137 | $23,012 | -8.1% | | **Consolidated AOI** | **$215,763** | **$211,184** | **2.2%** | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position as of March 31, 2023, includes **$763.9 million** in cash and an undrawn revolving credit facility, with no stock repurchases in Q1 2023 and a recent amendment to its credit agreement - As of March 31, 2023, the company held **$763.9 million** in cash and cash equivalents, with **$344.5 million** held by foreign subsidiaries[139](index=139&type=chunk) - The company did not repurchase any shares in Q1 2023. The remaining authorization under the Stock Repurchase Program is **$135.3 million**[139](index=139&type=chunk) - In April 2023, the company amended its credit agreement, reducing the revolving loan commitment from **$500 million** to **$400 million** and replacing LIBOR with SOFR as the benchmark interest rate[140](index=140&type=chunk) - The company was in compliance with all debt covenants as of March 31, 2023[140](index=140&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate fluctuations, with **78%** of debt fixed-rate, and foreign currency exchange rate exposures from international operations - As of March 31, 2023, **78%** of the company's debt is fixed-rate. A hypothetical **100 basis point** increase in interest rates would increase annual interest expense by approximately **$6.3 million** on the variable-rate portion[156](index=156&type=chunk) - The company is exposed to foreign currency risk from translating the financial statements of its international subsidiaries into U.S. dollars and from transactions denominated in foreign currencies[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period[158](index=158&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[159](index=159&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) This section details ongoing legal proceedings, including disputes with 'The Walking Dead' producers over profit participation and a separate lawsuit seeking over **$200 million** in damages - The company is engaged in confidential binding arbitration for remaining claims in the 'Walking Dead Litigation' concerning profit participation[72](index=72&type=chunk) - A separate 'MFN Litigation' was filed by 'The Walking Dead' producers, alleging they are owed over **$200 million** as a result of the company's 2021 settlement with Frank Darabont. The company believes the claims are without merit[73](index=73&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any Class A common stock in Q1 2023, with **$135.3 million** remaining under its stock repurchase authorization - No shares of Class A common stock were repurchased in the three months ended March 31, 2023[162](index=162&type=chunk) - As of March 31, 2023, the company had **$135.3 million** of authorization remaining under its Stock Repurchase Program[162](index=162&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the CEO's employment agreement and required Sarbanes-Oxley certifications - The exhibits include the employment agreement for CEO Kristin Dolan, dated February 15, 2023, and required Sarbanes-Oxley certifications[163](index=163&type=chunk)

AMC Networks Inc. (NASDAQ:AMCX) Q4 2022 Earnings Conference Call February 17, 2023 11:00 AM ET Company Participants Nick Seibert - Vice President, Corporate Development & Investor Relations James Dolan - Interim Executive Chairman Patrick O'Connell - Chief Financial Officer Conference Call Participants Thomas Yeh - Morgan Stanley Robert Fishman - MoffettNathanson Brett Feldman - Goldman Sachs Douglas Creutz - Cowen David Karnovsky - JPMorgan John Hodulik - UBS Operator Good day, and thank you for standing b ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☑ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2022 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 1-35106 AMC Networks Inc. (Exact name of registrant as specified in its charter) Delaware 27-5403694 (State or other jurisdiction of incorporation ...

AMC Networks, Inc. (NASDAQ:AMCX) Q3 2022 Earnings Conference Call November 4, 2022 8:30 AM ET Company Participants Nick Seibert - Vice President, Corporate Development and Investor Relations Christina Spade - Chief Executive Officer Patrick O’Connell - Chief Financial Officer Kim Kelleher - Chief Commercial Officer Conference Call Participants Tim Nollen - Macquarie Thomas Yeh - Morgan Stanley Michael Morris - Guggenheim Securities Michael Nathanson - MN Research Steven Cahall - Wells Fargo Operator Good da ...

Financial Data and Key Metrics Changes - Consolidated revenue decreased by 4% to $738 million, while streaming revenue grew by 20% year-over-year, and 36% when excluding a one-time distribution agreement renewal impact [32][33] - Consolidated adjusted operating income was $196 million with a margin of 26%, reflecting planned content and marketing investments [33] - Free cash flow for the quarter was $7 million, with a year-end expectation of approximately $100 million for 2022 [42][38] Business Line Data and Key Metrics Changes - Paid streaming subscribers grew by 46% to 10.8 million compared to the prior year quarter, with net additions of 1.3 million in Q2 [35][29] - Domestic operations revenue decreased by 3% to $621 million, with subscription revenue growth of 1% driven by strong streaming performance [34] - International and other revenue decreased by 9% to $126 million, primarily due to unfavorable foreign exchange translation [37] Market Data and Key Metrics Changes - The company added nearly 1.3 million net subscribers across its streaming portfolio, driven by global expansion and strong demand for AMC+ and targeted services [12][29] - The launch of AMC+ in Spain was highlighted as a significant contributor to subscriber growth, with partnerships established with local distributors [32][60] - Domestic operations advertising revenue decreased by 5% to $202 million due to lower linear ratings, partially offset by higher pricing and digital growth [36] Company Strategy and Development Direction - The company is focused on international expansion of its streaming portfolio, with plans to launch AMC+ in New Zealand, Latin America, and several European countries [31][23] - A disciplined approach to content investment and a focus on profitability while investing for growth are key components of the company's strategy [28][27] - The company aims to achieve 20 million to 25 million paid streaming subscribers by 2025, with a long-term goal of maintaining consolidated adjusted operating income margins in the mid to high 20% range [29][41] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment but expressed confidence in the company's ability to navigate it through strong content and subscriber growth [10][11] - The company reiterated its financial outlook for 2022, expecting low single-digit revenue growth and approximately $100 million in free cash flow [41][42] - Management emphasized the importance of maintaining high-quality content and strong branding to drive subscriber acquisition and retention [28][19] Other Important Information - The company announced the appointment of Chris Spade as CEO, effective next month, highlighting her contributions to the company's transformation [7][8] - The company is investing in advanced advertising initiatives and expanding its digital distribution to enhance revenue potential [45][49] - The company is also focusing on maximizing the value of its film content through the launch of AMC+ film slate, which includes a new movie each week [20][22] Q&A Session Summary Question: How does the international component fit within the long-term subscriber guidance? - Management indicated that the international expansion, particularly in Spain, serves as a template for future growth, leveraging existing linear business relationships [60][68] Question: Why is the philosophy on supplying AVOD different than SVOD peers? - The company views AVOD as a key driver for digital growth, utilizing quality library content to reach younger audiences while monetizing through advertisers [61][45] Question: What is the churn behavior for joiners coming in on flagship content? - Management noted that maintaining a consistent refresh rate of content is crucial for subscriber retention, with a focus on genre and talent to bridge audiences [63][64] Question: Can you discuss the effective ARPU in Spain and expectations for future launches? - Management highlighted that ARPU will vary based on the distribution model, with a focus on strong partnerships to maximize market foothold [75][76] Question: How does the company plan to approach international expansion? - The company plans to leverage existing linear business relationships and adapt its strategy on a country-by-country basis, ensuring strong partnerships for market entry [68][69] Question: What are the expectations for margins on the streaming product? - Management indicated that as AMC+ scales, the strategy will evolve to maximize revenue through effective windowing and content ownership [70][71]

AMC Networks Inc. (NASDAQ:AMCX) Q1 2022 Earnings Conference Call May 5, 2022 10:30 AM ET Company Participants Nick Seibert - Vice President, Corporate Development and Investor Relations Matt Blank - Interim Chief Executive Officer Chris Spade - Chief Operating Officer and Chief Financial Officer Conference Call Participants Thomas Yeh - Morgan Stanley Michael Morris - Guggenheim Robert Fishman - MoffettNathanson David Karnovsky - JPMorgan Steven Cahall - Wells Fargo Operator Welcome to the AMC Networks’ Fir ...