AMC Networks(US:AMCX)2021-08-05 16:00Revenue Performance - Domestic Operations revenue for Q2 2021 was $639.0 million, up 13.4% from $562.9 million in Q2 2020[102]. - International and Other segment revenue increased to $138.3 million in Q2 2021, a 52.5% rise from $90.7 million in Q2 2020[102]. - Consolidated net revenues for the first half of 2021 reached $1.46 billion, compared to $1.38 billion in the same period of 2020, reflecting a 6.0% growth[102]. - Consolidated revenues for the three months ended June 30, 2021, were $771,392 thousand, a 19.4% increase from $646,291 thousand in the same period of 2020[114]. - Domestic Operations revenues rose by $76.1 million, or 13.5%, driven by a $24.8 million increase in advertising revenues and a $51.2 million increase in distribution and other revenues[122][123]. - International and Other revenues increased by $47.6 million, or 52.5%, with advertising revenues up by 75.3% and distribution revenues up by 48.0%[125]. - Net revenues increased to $1,463,133,000 for the six months ended June 30, 2021, representing a 6.0% increase from $1,380,666,000 in the same period of 2020[151]. - Domestic Operations revenues accounted for 83.0% of total revenues, with a slight increase of 3.2% to $1,212,984,000 compared to $1,174,825,000 in 2020[151]. - International and Other revenues rose by 20.4% to $259,444,000, up from $215,510,000 in the prior year[151]. Operating Income and Expenses - Operating income for Domestic Operations decreased to $88.1 million in Q2 2021 from $217.6 million in Q2 2020, a decline of 59.5%[102]. - Adjusted Operating Income (AOI) for Domestic Operations was $250.1 million in Q2 2021, compared to $236.4 million in Q2 2020, an increase of 5.0%[102]. - Consolidated AOI for the first half of 2021 was $488.6 million, up 9.1% from $447.7 million in the first half of 2020[102]. - Total operating expenses for the three months ended June 30, 2021, were $703,136 thousand, a 17.7% increase from $597,489 thousand in the same period of 2020[114]. - Total operating expenses for the six months ended June 30, 2021, were $1,225,169,000, an increase of $66,275,000 or 5.7% from $1,158,894,000 in the same period of 2020[144]. - Selling, general and administrative expenses increased by $43.5 million, or 28.0%, to $198.6 million, accounting for 25.7% of net revenues[129]. - Technical and operating expenses (excluding depreciation and amortization) increased by 11.7% to $150,104,000, compared to $134,326,000 in 2020[151]. Impairment and Charges - The company reported a significant impairment charge of $142.9 million in Q2 2021, compared to $130.4 million in Q2 2020[104]. - Impairment and other charges for the three months ended June 30, 2021, were $142,918 thousand, a 9.6% increase from $130,411 thousand in the same period of 2020[114]. - The Company recorded a charge of $143.0 million related to a settlement agreement, impacting operating income significantly[168]. - Restructuring and other related charges amounted to $8.8 million for the six months ended June 30, 2021[170]. Net Income and Tax - Net income attributable to AMC Networks' stockholders for the three months ended June 30, 2021, was $35,885 thousand, a 139.9% increase from $14,961 thousand in the same period of 2020[114]. - Net income for the six months ended June 30, 2021, was $122.9 million, compared to $79.5 million for the same period in 2020, representing a 55% increase[190]. - Income tax expense for the three months ended June 30, 2021, was $11,300,000, with an effective tax rate of 21%, down from $9,700,000 and an effective rate of 36% in the prior year[141][142]. - Income tax expense for the six months ended June 30, 2021, was $37.2 million, with an effective tax rate of 21%[179]. Cash Flow and Debt - Net cash provided by operating activities for the six months ended June 30, 2021, was $131.2 million, a decrease of 69% compared to $424.9 million for the same period in 2020[183]. - Net cash provided by investing activities was $42.0 million for the six months ended June 30, 2021, compared to a cash outflow of $(10.0) million in 2020[186]. - Net cash used in financing activities amounted to $64.2 million for the six months ended June 30, 2021, a significant reduction from $336.8 million in 2020[187]. - Total debt outstanding as of June 30, 2021, was $2.8 billion, with $0.7 billion subject to variable interest rates[195]. - The fair value of fixed-rate debt was estimated at $2.23 billion, exceeding its carrying value by approximately $60.3 million[194]. - Interest expense, net decreased by $2,100,000 due to lower average interest rates on outstanding senior notes[139]. - Interest rate swap contracts with notional amounts of $100 million were outstanding as of June 30, 2021, effectively fixing the interest rate on approximately 80% of the company's debt[195]. Strategic Initiatives and Risks - The company plans to continue increasing investment in original programming across all networks to drive higher audience ratings and revenues[105]. - The restructuring of operating segments reflects a focus on multi-platform distribution, with streaming services now included in Domestic Operations[99]. - The company faces risks including market demand fluctuations, competition in the streaming industry, and the impact of COVID-19 on operations[98]. - The company continues to monitor the impact of COVID-19 on its business but does not expect it to affect its liquidity position[109]. - The company expects advertising and distribution revenues to vary from quarter to quarter due to programming and market conditions[154]. - The Company expects AOI to vary from quarter to quarter due to fluctuations in revenues and operating expenses[175].