Financial Data and Key Metrics Changes - For Q2 2020, total company revenue was $646 million, and operating income (OI) was $25 million, both exceeding expectations due to favorable domestic advertising performance and lower expenses [24][25] - Advertising revenue declined 15% to $187 million, impacted by the pandemic and timing of original programming, but demand was stronger than anticipated [25][26] - Total expenses decreased by $82 million or 22% year-over-year, primarily due to the suspension of production activities and lower program amortization [27][28] - GAAP EPS was $0.28, down from $2.25 in the prior year, while adjusted EPS was $2.39 compared to $2.60 in the prior year [30] Business Line Data and Key Metrics Changes - National Networks revenue was $496 million with an AOI of $210 million; advertising revenue was significantly impacted by the pandemic [25] - International and Other segment revenues were $161 million, a decrease of $19 million year-over-year, but AOI increased by $3 million due to targeted SVOD services [29] Market Data and Key Metrics Changes - The company noted a decline in subscription revenues in the low double-digits, attributed to the overall decline in Pay TV subscribers [26] - The targeted SVOD services experienced strong growth, with expectations to end the year with 3.5 million to 4 million subscribers, leaning towards the higher end of that range [12][66] Company Strategy and Development Direction - The company is focused on creating high-quality content and monetizing it across various platforms, particularly through targeted SVOD services [9][10] - AMC Networks is positioning itself to take advantage of the streaming landscape, emphasizing the compatibility of its niche services with larger SVOD platforms [14][19] - The company is also expanding its digital advertising presence and exploring addressable advertising opportunities [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the pandemic's challenges, citing a strong balance sheet and healthy free cash flow [38] - The outlook for Q3 anticipates continued variability due to the pandemic, with advertising revenue expected to decline in the mid-to-high teens year-over-year [34][35] - Management remains cautious about future performance due to the fluid nature of the pandemic and its impact on production and advertising [34][36] Other Important Information - The company received 18 Emmy nominations, highlighting its ability to produce compelling content that resonates with audiences [19] - AMC Networks is adapting to viewer consumption patterns by launching products like AMC Select, which offers on-demand programming [23] Q&A Session Summary Question: Was Q2 demand for advertising stronger than expected? - Management confirmed that the scatter market was relatively healthy, with some categories being aggressive, leading to better-than-expected pricing and ratings [41][42] Question: How is the board thinking about public versus private benefits? - Management refrained from commenting on public versus private status but highlighted strong free cash flow and positive outlook for the second half of the year [43][44] Question: Can you discuss the pace of subscription revenue at National Networks? - Management noted that subscriber trajectories, particularly in satellite companies, are a significant factor, with some moderation in pricing during renewals [47][48] Question: What are the economics of SVOD services moving forward? - Management expressed confidence in reaching 5 to 7 million targeted SVOD subscribers by year-end 2024, with favorable churn rates and improving economics [66] Question: How is the company approaching AVOD? - Management is leveraging existing content on platforms like Pluto and Sling, viewing it as an opportunity to monetize their library without needing to own a platform [54][55]

AMC Networks, Inc. (NASDAQ:AMCX) Q1 2020 Earnings Conference Call May 5, 2020 8:30 AM ET Company Participants Seth Zaslow - Senior Vice President of Investor Relations Josh Sapan - President & Chief Executive Officer Ed Carroll - Chief Operating Officer Sean Sullivan - Chief Financial Officer Conference Call Participants Ben Swinburne - Morgan Stanley Bryan Goldberg - Bank of America Merrill Lynch Michael Nathanson - MoffettNathanson John Janedis - Wolfe Research Steven Cahall - Wells Fargo Michael Morris - ...

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 March 31, 2020 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 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which regis ...

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, 2019 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) Q4 2019 Earnings Conference Call February 26, 2020 8:30 AM ET Company Participants Seth Zaslow - SVP, IR Joshua Sapan - President & CEO Sean Sullivan - EVP & CFO Edward Carroll - COO Conference Call Participants Benjamin Swinburne - Morgan Stanley Michael Nathanson - MoffettNathanson Michael Morris - Guggenheim Securities Todd Juenger - Sanford C. Bernstein & Co. Vasily Karasyov - Cannonball Research Bryan Goldberg - Bank of America Merrill Lynch Operator Ladies and gentleme ...

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 AMC Networks Inc. as of September 30, 2019, including Balance Sheets, Statements of Income, Comprehensive Income, Stockholders' Equity, and Cash Flows, with accompanying notes detailing accounting policies, business combinations, segment information, debt, and legal contingencies [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2019, total assets were **$5.62 billion**, an increase from **$5.28 billion** at December 31, 2018, driven by higher cash and cash equivalents and operating lease right-of-use assets, while total liabilities remained stable at **$4.66 billion**, and total stockholders' equity increased to **$654.8 million** from **$345.2 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $773,386 | $554,886 | | Total current assets | $2,224,910 | $1,963,411 | | Program rights, net (non-current) | $1,051,068 | $1,214,051 | | Goodwill | $782,234 | $798,037 | | Operating lease right-of-use asset | $172,575 | $— | | **Total assets** | **$5,618,209** | **$5,278,563** | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $820,412 | $797,421 | | Long-term debt | $3,056,692 | $3,088,221 | | Lease obligations (non-current) | $215,251 | $21,427 | | **Total liabilities** | **$4,658,804** | **$4,633,797** | | **Total stockholders' equity** | **$654,799** | **$345,208** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For Q3 2019, revenues increased **3.1%** year-over-year to **$718.6 million**, operating income grew slightly to **$168.4 million**, and net income attributable to stockholders was **$116.9 million**, or **$2.07 per diluted share**, up from **$111.3 million**, or **$1.93 per diluted share**, in the prior-year period, while nine-month revenues increased to **$2.28 billion** and operating income slightly decreased to **$583.6 million** Q3 2019 vs Q3 2018 Income Statement (in thousands, except per share) | Metric | Q3 2019 | Q3 2018 | | :--- | :--- | :--- | | Revenues, net | $718,597 | $696,875 | | Operating income | $168,438 | $164,599 | | Net income attributable to AMC Networks' stockholders | $116,923 | $111,257 | | Diluted EPS | $2.07 | $1.93 | Nine Months 2019 vs 2018 Income Statement (in thousands, except per share) | Metric | Nine Months 2019 | Nine Months 2018 | | :--- | :--- | :--- | | Revenues, net | $2,275,117 | $2,199,083 | | Operating income | $583,558 | $589,785 | | Net income attributable to AMC Networks' stockholders | $389,063 | $374,308 | | Diluted EPS | $6.80 | $6.31 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2019, net cash provided by operating activities was **$400.4 million**, a decrease from **$471.8 million** in the prior-year period, primarily due to changes in program rights and obligations, while net cash used in investing activities decreased to **$59.9 million** from **$185.9 million**, and net cash used in financing activities was **$117.7 million**, significantly lower than the **$292.0 million** used in 2018 due to reduced treasury stock purchases Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $400,397 | $471,812 | | Net cash used in investing activities | ($59,864) | ($185,885) | | Net cash used in financing activities | ($117,683) | ($292,028) | | **Net increase (decrease) in cash** | **$222,850** | **($6,101)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's business structure, accounting policies, and key financial events, including its two segments (National Networks and International and Other), adoption of a new lease standard, ongoing stock repurchases, restructuring charges, business combinations, debt structure, legal proceedings, and segment performance - The company operates through two segments: National Networks (including AMC, WE tv, BBC AMERICA, IFC, SundanceTV, and AMC Studios) and International and Other (including international channels, streaming services like Acorn TV and Shudder, Levity Entertainment, and IFC Films)[14](index=14&type=chunk) - On January 1, 2019, the company adopted the new lease standard (Topic 842), resulting in the recognition of net lease assets of **$180.0 million** and lease liabilities of **$237.0 million**[19](index=19&type=chunk) - The company repurchased **1.3 million shares** for approximately **$70.6 million** in the first nine months of 2019. As of September 30, 2019, **$488.8 million** remained authorized for repurchase[13](index=13&type=chunk)[26](index=26&type=chunk) - Restructuring charges of **$30.0 million** were recorded in the first nine months of 2019, related to management reorganization, consolidation of subscription streaming services, and a change in strategy for the direct-to-consumer business, which included a **$13.0 million** write-off of programming[27](index=27&type=chunk) - The company is involved in significant litigation with former producers of 'The Walking Dead', including Frank Darabont and Robert Kirkman, over profit participation. The company denies the claims and is defending the cases vigorously. The outcome cannot be determined at this time[75](index=75&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results, highlighting a **3.1%** consolidated revenue increase in Q3 2019, driven by the International and Other segment, which benefited from the acquisition of RLJE, while the National Networks segment saw a slight revenue decline due to lower advertising at AMC, and Adjusted Operating Income (AOI) grew **3.9%** in Q3, with details on segment performance, liquidity, capital resources, and the impact of recent acquisitions and restructuring efforts, as cash from operations remains strong, supporting investments in original programming and stock repurchases [Consolidated Results of Operations](index=51&type=section&id=Consolidated%20Results%20of%20Operations) For Q3 2019, consolidated revenues rose **3.1%** to **$718.6 million**, and AOI increased **3.9%** to **$219.3 million**, while for the nine-month period, revenues grew **3.5%** to **$2.28 billion**, and AOI rose **4.3%** to **$744.0 million**, with growth primarily driven by the International and Other segment, boosted by acquisitions (RLJE, Levity) and growth in subscription streaming services, offsetting a slight decline in the National Networks segment Consolidated AOI Reconciliation (in thousands) | | Q3 2019 | Q3 2018 | Nine Months 2019 | Nine Months 2018 | | :--- | :--- | :--- | :--- | :--- | | **Operating income** | **$168,438** | **$164,599** | **$583,558** | **$589,785** | | Share-based compensation | $13,841 | $16,934 | $50,465 | $52,006 | | Restructuring charges | $10,191 | $3,139 | $29,995 | $3,139 | | Impairment charges | $— | $4,486 | $— | $4,486 | | Depreciation & amortization | $25,619 | $22,011 | $75,568 | $64,034 | | Majority-owned equity investees AOI | $1,246 | $— | $4,434 | $— | | **AOI** | **$219,335** | **$211,169** | **$744,020** | **$713,450** | [National Networks Segment Results](index=52&type=section&id=National%20Networks%20Segment%20Results) In Q3 2019, National Networks revenue decreased **0.2%** to **$559.0 million**, and AOI decreased **1.0%** to **$208.4 million**, with the revenue decline due to a **2.6%** drop in advertising, primarily from lower ratings at the AMC network, mostly offset by a **1.1%** increase in distribution revenue from content licensing, while for the nine-month period, revenues fell **2.2%**, and AOI saw a slight increase of **0.8%** due to lower operating expenses National Networks Performance (Q3 2019 vs Q3 2018, in thousands) | Metric | Q3 2019 | Q3 2018 | % Change | | :--- | :--- | :--- | :--- | | Revenues, net | $558,992 | $560,321 | (0.2)% | | - Advertising | $194,452 | $199,714 | (2.6)% | | - Distribution | $364,540 | $360,607 | 1.1% | | AOI | $208,410 | $210,417 | (1.0)% | - The decrease in advertising revenue was primarily due to lower ratings at the AMC network, partially mitigated by pricing[136](index=136&type=chunk) - Distribution revenue increased due to a **$15.9 million** rise in content licensing, which was partially offset by a **$9.0 million** decrease in subscription revenues from lower subscriber counts and a contractual interpretation[136](index=136&type=chunk) [International and Other Segment Results](index=52&type=section&id=International%20and%20Other%20Segment%20Results) In Q3 2019, the International and Other segment saw significant growth, with revenues increasing **20.5%** to **$182.8 million** and AOI rising **79.3%** to **$13.5 million**, largely driven by the acquisition of RLJE and growth in subscription streaming services like Shudder and Sundance Now, while for the nine-month period, revenues surged **30.2%** and AOI grew **227.5%**, reflecting the impact of both the RLJE and Levity acquisitions International and Other Performance (Q3 2019 vs Q3 2018, in thousands) | Metric | Q3 2019 | Q3 2018 | % Change | | :--- | :--- | :--- | :--- | | Revenues, net | $182,839 | $151,772 | 20.5% | | - Distribution | $163,967 | $131,644 | 24.6% | | AOI | $13,465 | $7,511 | 79.3% | - Q3 distribution revenue growth was primarily due to a **$31.1 million** impact from the acquisition of RLJE and a **$7.1 million** increase from Shudder and Sundance Now subscription streaming services[137](index=137&type=chunk) - For the nine months ended Sep 30, 2019, revenue growth was driven by a **$134.9 million** impact from the acquisitions of Levity and RLJE[160](index=160&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with primary sources of cash from operations, an undrawn **$500 million** revolving credit facility, and access to capital markets, with principal uses of cash including programming production, acquisitions, debt service, and stock repurchases, and for the nine months ended September 30, 2019, cash from operations was **$400.4 million**, with **$70.6 million** of stock repurchased and **$488.8 million** remaining under its repurchase authorization, which management believes is sufficient for requirements over the next twelve months - Primary sources of cash are cash flow from operations and an undrawn **$500 million** revolving credit facility[178](index=178&type=chunk) - Principal uses of cash include programming acquisition/production, investments, debt service, and stock repurchases[178](index=178&type=chunk) - As of September 30, 2019, the company had **$488.8 million** of authorization remaining under its **$1.5 billion** Stock Repurchase Program[26](index=26&type=chunk)[178](index=178&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rates and foreign currency exchange rates, with approximately **80%** of its **$3.1 billion** debt effectively at a fixed rate as of September 30, 2019, mitigating interest rate risk through fixed-rate notes and interest rate swaps, and uses foreign currency contracts to manage exposure from transactions in non-functional currencies, while fluctuations in the U.S. dollar against foreign currencies also create translation risk, impacting comprehensive income - The company manages interest rate risk using interest rate swaps. As of September 30, 2019, approximately **80%** of the company's debt was effectively fixed-rate[189](index=189&type=chunk) - The company is exposed to foreign currency risk from transactions in non-functional currencies and from translating foreign subsidiary financial statements into U.S. dollars[190](index=190&type=chunk)[191](index=191&type=chunk) - The fair value of the company's fixed-rate debt (**$2.46 billion**) was approximately **$88.7 million** higher than its carrying value (**$2.37 billion**) as of September 30, 2019[188](index=188&type=chunk) [Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation as of September 30, 2019, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective, with no material changes in the company's internal control over financial reporting during the third quarter of 2019 - Management, including the CEO and CFO, concluded that as of September 30, 2019, the company's disclosure controls and procedures are effective[192](index=192&type=chunk) - No changes occurred in the company's internal control over financial reporting during Q3 2019 that have materially affected, or are reasonably likely to materially affect, these controls[193](index=193&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) There have been no material developments in the company's legal proceedings since the 2018 Form 10-K, with further details provided in Note 14 of the financial statements, which discusses ongoing litigation related to 'The Walking Dead' - No material developments have occurred in legal proceedings since the 2018 Form 10-K. The company refers to Note 14 for details on ongoing litigation[195](index=195&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=68&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the third quarter of 2019, the company repurchased **231,310 shares** of its Class A Common Stock for a total of approximately **$12.16 million**, at an average price of **$52.56 per share**, under its publicly announced stock repurchase program Share Repurchases (Q3 2019) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2019 | 172,265 | $52.39 | | August 2019 | 59,045 | $53.06 | | September 2019 | — | $— | | **Total** | **231,310** | **$52.56** | - The company has a **$1.5 billion** stock repurchase program authorized by the Board of Directors, with no pre-established closing date[196](index=196&type=chunk) [Exhibits](index=68&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act (Sections 302 and 906) and XBRL data files - Filed exhibits include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and XBRL Interactive Data Files[199](index=199&type=chunk)

AMC Networks Inc. (NASDAQ:AMCX) Q3 2019 Earnings Conference Call October 31, 2019 8:30 AM ET Company Representatives Josh Sapan - President, Chief Executive Officer Ed Carroll - Chief Operating Officer Sean Sullivan - Chief Financial Officer Seth Zaslow - Senior Vice President of Investor Relations Conference Call Participants Michael Morris - Guggenheim Securities Ben Swinburne - Morgan Stanley Todd Juenger - Sanford Bernstein Steven Cahall - Wells Fargo Marci Ryvicker - Wolfe Research Alexia Quadrani - JP ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's analysis of financial condition and operations [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, detailing Q2 2019 revenue growth, operating income decline, and net income increase, reflecting new accounting standards and acquisitions [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$5.56 billion** by June 30, 2019, driven by higher cash and new lease assets, while liabilities slightly rose to **$4.69 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$5,561,734** | **$5,278,563** | | Cash and cash equivalents | $706,342 | $554,886 | | Program rights, net (Current & Non-current) | $1,547,807 | $1,654,790 | | Goodwill | $792,083 | $798,037 | | Operating lease right-of-use asset | $175,677 | — | | **Total Liabilities** | **$4,690,433** | **$4,633,797** | | Long-term debt (Current & Non-current) | $3,110,919 | $3,109,555 | | Lease obligations (Current & Non-current) | $254,780 | $26,517 | | **Total Stockholders' Equity** | **$568,513** | **$345,208** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2019 revenues increased **1.4%** to **$772.3 million**, while operating income declined **11.1%** due to restructuring charges, yet net income rose **21.2%** Q2 & H1 2019 Income Statement Highlights (in thousands, except per share amounts) | Metric | Q2 2019 | Q2 2018 | YoY Change | H1 2019 | H1 2018 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues, net** | **$772,299** | **$761,385** | **+1.4%** | **$1,556,520** | **$1,502,208** | **+3.6%** | | Operating income | $170,257 | $191,531 | -11.1% | $415,120 | $425,186 | -2.4% | | Restructuring charges | $17,162 | $0 | n/m | $19,804 | $0 | n/m | | Net income attributable to AMC | $128,743 | $106,181 | +21.2% | $272,140 | $263,051 | +3.5% | | Diluted EPS | $2.25 | $1.82 | +23.6% | $4.73 | $4.38 | +8.0% | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations slightly increased to **$288.9 million** for H1 2019, while cash used in investing and financing activities significantly decreased Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $288,937 | $278,577 | | Net cash used in investing activities | ($43,555) | ($159,422) | | Net cash used in financing activities | ($92,265) | ($263,418) | | **Net increase (decrease) in cash** | **$153,117** | **($144,263)** | | Cash and cash equivalents at end of period | $706,342 | $416,124 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on business segments, lease accounting adoption, restructuring charges, business combinations, legal proceedings, and segment financial data [Note 1. Description of Business and Basis of Presentation](index=10&type=section&id=Note%201.%20Description%20of%20Business%20and%20Basis%20of%20Presentation) The company operates through National Networks and International & Other segments, with financials prepared under GAAP and the new lease standard adopted in 2019 - The company's operations are divided into two main segments: National Networks and International and Other[19](index=19&type=chunk)[20](index=20&type=chunk) - On January 1, 2019, the company adopted the new lease standard (ASU No. 2016-02, Topic 842), which resulted in recognizing net lease assets of **$180.0 million** and lease liabilities of **$237.0 million**[29](index=29&type=chunk) [Note 4. Restructuring and Other Related Charges](index=15&type=section&id=Note%204.%20Restructuring%20and%20Other%20Related%20Charges) The company recorded **$17.2 million** in Q2 2019 restructuring charges, primarily for direct-to-consumer streaming reorganization and programming write-offs Restructuring and Other Related Charges (in thousands) | Period | Amount | | :--- | :--- | | Three Months Ended June 30, 2019 | $17,162 | | Six Months Ended June 30, 2019 | $19,804 | - Charges in Q2 2019 include **$13.0 million** for a write-off of programming related to a change in strategy for the company's owned subscription streaming services[40](index=40&type=chunk) - The majority of the restructuring charges (**$16.9 million** in Q2) were allocated to the International & Other segment[41](index=41&type=chunk) [Note 5. Business Combinations](index=17&type=section&id=Note%205.%20Business%20Combinations) This note details the 2018 acquisitions of RLJ Entertainment and Levity Entertainment Group, which expanded streaming services and production capabilities - In October 2018, the company acquired a controlling interest in RLJ Entertainment (RLJE), which operates streaming services Acorn TV and UMC. The transaction added **$95.8 million** in goodwill[44](index=44&type=chunk)[49](index=49&type=chunk) - In April 2018, the company acquired a **57%** controlling interest in Levity Entertainment Group for **$48.4 million**, adding a production services and comedy venue business. This resulted in **$24.2 million** of goodwill[50](index=50&type=chunk)[54](index=54&type=chunk) [Note 14. Commitments and Contingencies](index=33&type=section&id=Note%2014.%20Commitments%20and%20Contingencies) The company faces significant legal proceedings, including multiple lawsuits from 'The Walking Dead' producers seeking substantial damages for alleged breach of contract - The company is defending a lawsuit from Frank Darabont and others related to 'The Walking Dead', with a damages claim of no less than **$280 million**. The court has dismissed some causes of action but others remain[99](index=99&type=chunk) - A second lawsuit from the same plaintiffs seeks at least **$20 million** in damages. This action has been consolidated for a joint trial with the first lawsuit, scheduled to begin in May 2020[100](index=100&type=chunk) - A separate lawsuit was filed by other producers of 'The Walking Dead' (including Robert Kirkman) in California, alleging improper underpayment. The company believes these claims are without merit[101](index=101&type=chunk) [Note 19. Segment Information](index=36&type=section&id=Note%2019.%20Segment%20Information) This note details financial performance by segment, showing National Networks revenue of **$604.7 million** and International & Other revenue of **$179.5 million** for Q2 2019 Segment Revenues, Net (in thousands) | Segment | Q2 2019 | Q2 2018 | H1 2019 | H1 2018 | | :--- | :--- | :--- | :--- | :--- | | National Networks | $604,739 | $627,289 | $1,220,858 | $1,260,317 | | International and Other | $179,526 | $146,711 | $350,615 | $258,101 | Segment Adjusted Operating Income (AOI) (in thousands) | Segment | Q2 2019 | Q2 2018 | H1 2019 | H1 2018 | | :--- | :--- | :--- | :--- | :--- | | National Networks | $236,472 | $234,678 | $513,159 | $505,552 | | International and Other | $11,830 | $5,413 | $21,772 | $3,251 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2019 consolidated revenue growth driven by acquisitions, National Networks' revenue decline, operating income decrease, and strong liquidity [Consolidated Results of Operations - Three Months Ended June 30, 2019](index=59&type=section&id=Consolidated%20Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030%2C%202019) Q2 2019 consolidated revenues increased **1.4%** to **$772.3 million**, driven by International & Other segment growth, while operating income declined **11.1%** due to restructuring - National Networks advertising revenue decreased by **$27.3 million** (**11.1%**), mainly at the AMC network, due to the timing of original programming and lower ratings[180](index=180&type=chunk) - International and Other distribution revenue increased by **$32.7 million** (**26.5%**), primarily driven by a **$35.6 million** impact from the acquisitions of Levity and RLJE[182](index=182&type=chunk) - Operating income was impacted by **$17.2 million** in restructuring charges, primarily related to the direct-to-consumer business reorganization and programming write-offs[192](index=192&type=chunk)[194](index=194&type=chunk) [Consolidated Results of Operations - Six Months Ended June 30, 2019](index=66&type=section&id=Consolidated%20Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030%2C%202019) H1 2019 consolidated revenues increased **3.6%** to **$1.56 billion**, driven by International & Other, while operating income declined **2.4%** due to restructuring - National Networks distribution revenue for H1 2019 decreased by **$25.5 million**, primarily due to a **$29.4 million** decline in content licensing from lower foreign distribution of original programming[214](index=214&type=chunk) - International and Other revenue for H1 2019 grew by **$92.5 million**, with acquisitions contributing **$100.3 million** to distribution revenue[215](index=215&type=chunk) - Miscellaneous expense increased by **$17.7 million**, driven by a **$7.7 million** impairment on non-marketable securities and the absence of a **$12.4 million** gain on the RLJE investment that was recorded in H1 2018[233](index=233&type=chunk) [Liquidity and Capital Resources](index=75&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$706.3 million** cash, an undrawn credit facility, and **$501.0 million** remaining for stock repurchases - The company's Board of Directors has authorized a stock repurchase program of up to **$1.5 billion**. As of June 30, 2019, **$501.0 million** of authorization remained[238](index=238&type=chunk) - Cash flow from operations for H1 2019 was **$288.9 million**. The company believes cash on hand and operating cash flow will be sufficient to meet funding requirements for the next year[241](index=241&type=chunk)[246](index=246&type=chunk) - The company's **$500 million** revolving credit facility was undrawn as of June 30, 2019[67](index=67&type=chunk)[243](index=243&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from interest rates and foreign currency, with **79%** of its **$3.1 billion** debt at a fixed rate - As of June 30, 2019, the company had **$3.1 billion** of debt outstanding. Through fixed-rate notes and **$100.0 million** in interest rate swaps, approximately **79%** of this debt is at an effectively fixed interest rate[257](index=257&type=chunk)[258](index=258&type=chunk) - The company is exposed to foreign currency risk from international operations. For H1 2019, it recognized a net loss of **$1.7 million** from foreign currency transactions[260](index=260&type=chunk) [Item 4. Controls and Procedures](index=79&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2019, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by this report[263](index=263&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, these controls[264](index=264&type=chunk) [PART II. OTHER INFORMATION](index=80&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, equity security sales, and required exhibits [Item 1. Legal Proceedings](index=80&type=section&id=Item%201.%20Legal%20Proceedings) No material developments in legal proceedings since the 2018 Form 10-K, with details on ongoing litigation referenced in Note 14 - The report states there have been no material developments in legal proceedings since the 2018 Form 10-K and refers to Note 14 for further details[266](index=266&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=80&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1.05 million** shares in Q2 2019 as part of its **$1.5 billion** stock repurchase program, with **$501.0 million** remaining Share Repurchases for Q2 2019 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2019 | 0 | n/a | | May 2019 | 1,023,002 | $54.64 | | June 2019 | 28,779 | $53.88 | | **Total Q2** | **1,051,781** | **$54.62** | - The company's stock repurchase program is authorized for up to **$1.5 billion** and has no pre-established closing date[267](index=267&type=chunk) [Item 6. Exhibits](index=80&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL Interactive Data Files - Exhibits filed include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906[271](index=271&type=chunk)

AMC Networks Inc. (NASDAQ:AMCX) Q2 2019 Results Conference Call July 31, 2019 8:30 AM ET Company Participants Seth Zaslow - Senior Vice President of Investor Relations Josh Sapan - President and Chief Executive Officer Ed Carroll - Chief Operating Officer Sean Sullivan - Chief Financial Officer Conference Call Participants Michael Nathanson - MoffettNathanson Research Marci Ryvicker - Wolfe Research Michael Morris - Guggenheim Securities Alexia Quadrani - JP Morgan Todd Juenger - Sanford Bernstein David Joy ...