AMC Networks(AMCX) - 2024 Q2 - Quarterly Results

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]