For the quarter ended June 2024, AMC Networks (AMCX) reported revenue of $625.93 million, down 7.8% over the same period last year. EPS came in at $1.24, compared to $2.02 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $601.26 million, representing a surprise of +4.10%. The company delivered an EPS surprise of -10.14%, with the consensus EPS estimate being $1.38.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Str ...

Core Viewpoint - AMC Networks reported quarterly earnings of $1.24 per share, missing the Zacks Consensus Estimate of $1.38 per share, and down from $2.02 per share a year ago, indicating a significant decline in profitability [1] - The company’s revenues for the quarter were $625.93 million, surpassing the Zacks Consensus Estimate by 4.10%, but down from $678.63 million year-over-year [1] Financial Performance - The earnings surprise for the latest quarter was -10.14%, and the company had a prior quarter surprise of -35.20% [1] - Over the last four quarters, AMC Networks has exceeded consensus EPS estimates two times [1] - The current consensus EPS estimate for the upcoming quarter is $1.54, with expected revenues of $594.73 million, and for the current fiscal year, the estimate is $4.93 on $2.41 billion in revenues [4] Stock Performance - AMC Networks shares have declined approximately 45.2% since the beginning of the year, contrasting with the S&P 500's gain of 11.5% [2] - The stock currently holds a Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [4] Industry Outlook - The Broadcast Radio and Television industry, to which AMC Networks belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting a challenging environment for stock performance [5] - Historical data indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [5]

Financial Performance - Net revenues for Q2 2024 were $626 million, a decrease of 8% from the prior year, with adjusted net revenues down 4% after excluding certain prior year revenues[3] - Revenues for Q2 2024 were $625.9 million, a decrease of 7.8% from $678.6 million in Q2 2023[32] - Domestic Operations revenues decreased 7% to $538 million, with subscription revenues down 3% to $323 million[9] - International revenues decreased 9% to $90 million, with subscription revenues down 13% to $50 million[12] - Operating income for Q2 2024 was $10.8 million, down 89.8% from $105.7 million in Q2 2023[32] - Net loss attributable to AMC Networks' stockholders for Q2 2024 was $29.2 million, compared to a net income of $70.2 million in Q2 2023[32] - Adjusted Operating Income (Loss) for Q2 2024 was $152.8 million, compared to $176.8 million in Q2 2023, reflecting a decrease of 13.6%[36] - Consolidated adjusted operating income for the six months ended June 30, 2023, was $392,540, with domestic operations contributing $404,194 and international operations at $40,323[39] - Adjusted earnings per share (EPS) for the three months ended June 30, 2024, was $1.24, while the diluted EPS attributable to AMC Networks' stockholders was $(0.66)[49] Cash Flow and Debt - Free Cash Flow for Q2 2024 was $95 million, down 35.5% from $148 million in Q2 2023[3] - Free cash flow for the three months ended June 30, 2024, was $95,165, compared to $147,614 for the same period in 2023[45] - Total debt as of June 30, 2024, amounted to $2,420,635, with net debt standing at $1,618,082[42] - The leverage ratio reported was 2.8x, indicating the company's debt levels relative to its earnings[41] Impairment and Charges - The company reported an impairment charge of $68 million related to goodwill at AMCNI and $29 million for long-lived assets at BBCA[16] - The company reported impairment and other charges of $96.8 million in Q2 2024, significantly higher than $24.9 million in Q2 2023[32] - Operating income (GAAP) for the three months ended June 30, 2024, was $230,373, with significant impairment charges of $168,626 impacting overall profitability[42] - The company incurred restructuring and other related charges of $18,744 for the three months ended June 30, 2024[42] - Total adjustments included amortization of acquisition-related intangible assets amounting to $20,887,000[54] - Restructuring and other related charges totaled $11,974,000[54] - Impairment and other charges were reported at $24,882,000[54] Strategic Initiatives - The company announced a new licensing partnership with Sky for The Walking Dead Universe in the UK[2] - AMC Networks launched AMC Reality on ITVX, expanding its presence in the UK market[2] - The company plans to continue focusing on its streaming services and original content production to drive future growth[28] Market Conditions and Risks - Forward-looking statements indicate potential risks and uncertainties that may affect future performance, including market conditions and operational challenges[26] Shareholder Information - As of June 30, 2024, the company had $135 million remaining under its $1.5 billion stock repurchase program[18] - The weighted average common shares for diluted earnings per share were 44.5 million in Q2 2024, compared to 43.9 million in Q2 2023[32] - The company reported share-based compensation expenses of $26,904 for the three months ended June 30, 2024[42]

Core Insights - AMC Networks (AMCX) is expected to report quarterly earnings of $1.38 per share, reflecting a year-over-year decline of 31.7% [1] - Anticipated revenues are projected to be $601.26 million, showing an 11.4% decrease compared to the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts have reevaluated their initial estimates [1] Revenue Estimates - Domestic Operations revenues are forecasted to reach $529.58 million, indicating a year-over-year decline of 9% [2] - Revenues from International and Other operations are expected to be $74.18 million, reflecting a significant decrease of 25.3% from the previous year [2] Operating Income Estimates - The consensus estimate for Adjusted Operating Income from Domestic Operations is $153.52 million, down from $184.81 million reported in the same quarter last year [2] - Adjusted Operating Income for International and Other operations is predicted to be $18.64 million, slightly lower than the year-ago value of $19.19 million [3] Stock Performance - Over the past month, shares of AMC Networks have increased by 4.7%, contrasting with a decline of 5.9% in the Zacks S&P 500 composite [3] - AMC Networks currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [3]

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:AMC Networks Inc. (AMCX) is an entertainment company. The Zacks Consensus Estimate for its current year earnings has been revised 20.9% downward over the last 60 days.Cogent Communications Holdings, Inc. (CCOI) is a telecommunications company. The Zacks Consensus Estimate for its current year earnings has been revised 21.5% downward over the last 60 days.Haynes International, Inc. (HAYN) is a metals company. The Zacks Consensus Estima ...

NEW YORK, June 17, 2024 (GLOBE NEWSWIRE) -- AMC Networks Inc. (NASDAQ:AMCX) (the "Company" or "AMC Networks") today announced the pricing of $125 million aggregate principal amount of 4.25% convertible senior notes due 2029 in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). In connection with the offering of the notes, the Company has granted the initial purchasers an option to p ...

Group 1 - AMC Networks announced a private offering of convertible senior notes due 2029, aiming to raise $125 million [1] - The offering will be exclusively available to institutional investors, with an additional 13-day option to acquire $18.75 million more [1] - The funds raised will be used for general corporate purposes, potentially including debt repayment [1] Group 2 - As of Monday morning, AMC Networks' stock (AMCX) is down 10.9%, with a year-to-date decline of 18.1% [2] - Trading volume for AMCX stock is significantly below average, with only about 10,000 shares changing hands compared to a daily average of 634,000 shares [2]

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 ...