Gray Media (GTN) came out with a quarterly loss of $0.23 per share versus the Zacks Consensus Estimate of a loss of $0.49. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 53.06%. A quarter ago, it was expected that this broadcast television company would post earnings of $1.59 per share when it actually produced earnings of $1.59, delivering no surprise.Over the last four quarters, the compan ...

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, 2024 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 ...

Financial Data and Key Metrics Changes - The company achieved consolidated revenue of $2.4 billion for the full year 2024, with a consolidated adjusted operating income (AOI) of $563 million and free cash flow of $331 million [11][34] - For Q4 2024, consolidated revenue was $599 million, with a consolidated operating loss of $254 million, including impairment and restructuring charges [35][34] - The company reported a decrease in consolidated revenue of 6% on an apples-to-apples basis, excluding certain one-time revenues from 2023 [34] Business Line Data and Key Metrics Changes - Domestic operations revenues decreased 9% to $2.1 billion for the full year and decreased 11% to $520 million for Q4 [36] - Subscription revenue decreased 5% for the full year and 4% for Q4, primarily due to linear subscriber declines [36] - Streaming revenue grew by 7% for the year and 8% for the quarter, with a total of 12.4 million streaming subscribers, representing an 8% year-over-year increase [37] Market Data and Key Metrics Changes - International revenues decreased 3% for the full year but increased 2% for Q4, with advertising revenues growing 16% and 12% for the full year and quarter, respectively [41] - Subscription revenues in the international segment declined 11% for the full year and 5% for Q4, attributed to the non-renewal of a distribution agreement in the UK [42] Company Strategy and Development Direction - The company is focused on producing and curating high-quality content while managing its own platforms and maintaining strong relationships with distribution partners [18][58] - The strategy includes expanding access to AMC Plus through partnerships and bundling arrangements, which have driven healthy streaming subscriber additions [17][19] - The company aims to balance investments in programming with profitability, emphasizing the importance of high-quality scripted programming [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance for 2024 despite a challenging media environment, highlighting strong free cash flow generation [11][12] - The outlook for 2025 anticipates a decrease in total consolidated revenue of approximately 5%, with expectations of flat subscription revenue and continued streaming growth [48][49] - Management noted the importance of retaining subscribers and leveraging partnerships to enhance engagement and reduce churn [71][76] Other Important Information - The company ended the year with net debt of $1.6 billion and a consolidated net leverage ratio of 2.8 times, with a healthy cash position of approximately $1 billion in total liquidity [43][44] - The company plans to launch an ad-supported version of its Shudder streaming service later in the year [22] Q&A Session Summary Question: Free cash flow outlook in the context of cash spending - Management indicated that the strategy remains focused on balancing programming investments with profitability, with a slight reduction in cash programming spend expected for 2025 due to efficiency improvements and timing of tax credit receivables [61][62][66] Question: Contribution of bundled partnerships and Netflix licensing to streaming growth - Management noted that both bundled partnerships and the Netflix licensing deal contributed to streaming subscriber growth, with expectations of healthy streaming revenue growth driven by price increases and expanded distribution [69][74] Question: Impact of licensing content to Netflix on viewership and linear ad revenue - Management clarified that while the Netflix partnership does not directly correlate with linear ad revenue, there is a positive effect on AMC Plus acquisition as viewers seek new seasons after watching earlier ones on Netflix [88][89] Question: Content licensing strategy and third-party projects - Management stated that the company primarily produces content for its own platforms but remains open to strategic opportunities for third-party production when financially beneficial [91][93]

Financial Performance - For Q4 2024, net revenues decreased by 11.7% to $599 million, while full-year net revenues decreased by 10.7% to $2,421 million[7]. - The company experienced an operating loss of $254 million in Q4 2024, compared to an operating income of $388 million in the same quarter of the previous year[7]. - The Company reported net revenues of $599.3 million for Q4 2024, a decrease of 11.7% compared to $678.8 million in Q4 2023[33]. - Total operating expenses for Q4 2024 were $853.5 million, up 23.6% from $690.3 million in Q4 2023[33]. - The Company incurred a net loss attributable to stockholders of $284.5 million in Q4 2024, compared to a loss of $21.8 million in Q4 2023[33]. - Adjusted Operating Income (Loss) for the year ended December 31, 2024, was $(39.6) million, a significant decline from $388.4 million in 2023[33]. - Free Cash Flow for the year ended December 31, 2024, was $375.6 million, compared to $203.9 million in 2023, indicating improved liquidity[35]. - The Company reported a significant increase in impairment and other charges, totaling $302.7 million in Q4 2024, compared to $66.4 million in Q4 2023[33]. - For the three months ended December 31, 2024, AMC Networks reported a net loss of $300.464 million, resulting in a diluted EPS of $(6.38)[53]. - For the twelve months ended December 31, 2024, the reported net loss was $174.497 million, leading to a diluted EPS of $(5.10)[56]. Cash Flow and Liquidity - AMC Networks reported a full-year free cash flow of $331 million, with expectations to increase to approximately $550 million over the 2024/2025 period[2]. - The Company’s cash and cash equivalents at the end of 2024 were $784.6 million, up from $570.6 million at the beginning of the year[35]. - Net cash provided by operating activities for the three months ended December 31, 2024, was $58,108, down from $72,780 in 2023, a decrease of about 20.1%[49]. - Free cash flow for the twelve months ended December 31, 2024, was $330,840, an increase of 96.1% compared to $168,712 in 2023[49]. Revenue Streams - Streaming revenues increased by 7% to $603 million in Q4 2024, with streaming subscribers rising by 8% to 12.4 million compared to 11.4 million in Q4 2023[6]. - Domestic Operations' revenues decreased by 10.6% to $520 million in Q4 2024, while International revenues decreased by 13.9% to $85.6 million[8]. - The company signed multi-year agreements with major affiliates, including Charter and Amazon Prime Video Channels, for the distribution of its streaming services[6]. Impairment and Charges - Impairment and other charges totaled $399.5 million for the year, primarily due to goodwill impairment in Domestic Operations[16]. - Impairment and other charges for the twelve months ended December 31, 2024, amounted to $399,513, significantly higher than $96,689 in 2023[42]. - Restructuring and related charges amounted to $49.464 million for the twelve months ended December 31, 2024, contributing to the adjusted results[56]. Future Outlook and Strategy - AMC Networks plans to kick off 2025 with a robust slate of original programming, including several highly anticipated series[6]. - The Company plans to continue evaluating its operational strategies and may adjust its future outlook based on market conditions and performance metrics[28]. Shareholder Information - As of December 31, 2024, the Company had $135 million remaining under its Stock Repurchase Program, which authorizes up to $1.5 billion in share repurchases[19]. - The Company had 32,651,186 shares of Class A Common Stock and 11,484,408 shares of Class B Common Stock outstanding as of February 7, 2025[20]. Debt and Financial Ratios - Total debt as of December 31, 2024, was $2,369,385, with net debt at $1,584,736[45]. - The leverage ratio as of December 31, 2024, was 2.8x, indicating a stable financial position[45]. - Total assets decreased from $4,969,787 in 2023 to $4,362,221 in 2024, a decline of approximately 12.2%[37]. - Total liabilities decreased from $3,710,544 in 2023 to $3,422,080 in 2024, a reduction of about 7.8%[37].

Revenue Performance - Domestic Operations revenue for Q3 2024 was $530.2 million, a decrease of 2.0% from $541.2 million in Q3 2023[96]. - International revenue for Q3 2024 was $73.7 million, down 24.4% from $97.6 million in Q3 2023[96]. - Total consolidated revenue for the nine months ended September 30, 2024, was $1.82 billion, a decline of 10.4% compared to $2.03 billion for the same period in 2023[96]. - Total revenues for the three months ended September 30, 2024 were $530.2 million, down 2.0% from $541.2 million in the same period of 2023[129]. - Total net revenues decreased by 24.5% to $73.7 million for Q3 2024 and by 21.5% to $239.4 million for the nine months ended September 30, 2024[137]. Operating Income - Operating income for Domestic Operations in Q3 2024 was $130.0 million, a decrease of 19.5% from $161.6 million in Q3 2023[96]. - The company reported a total operating income of $93.7 million for Q3 2024, compared to $120.9 million in Q3 2023, reflecting a decrease of 22.5%[96]. - Operating income for the nine months ended September 30, 2024, decreased by 46.3% to $214,619,000 from $399,855,000 in the same period of 2023[109]. - Segment adjusted operating income for the three months ended September 30, 2024 was $150.2 million, down 18.8% from $185.0 million in the same period of 2023[129]. - Adjusted operating income for the nine months ended September 30, 2024, was $433,407,000, down from $569,808,000 in 2023, indicating a decline of about 24%[170]. Subscription and Advertising Revenue - Subscription revenue remains the largest component of distribution revenue, primarily based on affiliation agreements with distributors[100]. - For the nine months ended September 30, 2024, subscription revenues decreased by 6.2% to $1,110,099,000 compared to $1,183,562,000 in the same period of 2023[109]. - Subscription revenues decreased by 4.9% to $316.0 million for the three months ended September 30, 2024, primarily due to a 13.5% decline in affiliate revenues[130]. - Subscription revenues decreased by 13.6% to $48.5 million for Q3 2024 compared to Q3 2023, and by 12.4% to $149.0 million for the nine months ended September 30, 2024[137]. - Advertising revenues decreased by 11.2% in the Domestic Operations business for the nine months ended September 30, 2024, primarily due to linear ratings declines[111]. - Advertising revenues increased by 16.5% to $22.5 million for Q3 2024 and by 40.1% to $81.5 million for the nine months ended September 30, 2024, driven by digital advertising growth in the U.K. and improved ratings in Central and Northern Europe[137]. Expenses - Technical and operating expenses (excluding depreciation and amortization) decreased by 10.0% to $840,049,000 for the nine months ended September 30, 2024, compared to $933,590,000 in 2023[109]. - Selling, general and administrative expenses increased by 3.8% to $588,679,000 for the nine months ended September 30, 2024, compared to $567,136,000 in 2023[109]. - Technical and operating expenses (excluding depreciation and amortization) increased by 7.3% to $254.0 million for the three months ended September 30, 2024[132]. - Selling, general and administrative expenses increased by 4.0% to $128.3 million for the three months ended September 30, 2024, primarily due to higher employee-related costs[134]. - Selling, general and administrative expenses decreased by 18.3% to $26.5 million for Q3 2024 and by 6.9% to $82.8 million for the nine months ended September 30, 2024[140]. Net Income - Net income attributable to AMC Networks' stockholders decreased by 75.6% to $57,951,000 for the nine months ended September 30, 2024, down from $237,273,000 in 2023[109]. - The company’s net income for the nine months ended September 30, 2024, was $57.9 million, down from $237.3 million in 2023[162]. Cash Flow and Debt - Net cash provided by operating activities for the nine months ended September 30, 2024, was $317.5 million, a significant increase from $131.1 million in 2023, reflecting a growth of 142.2%[150]. - Free cash flow for the nine months ended September 30, 2024, was $293.3 million, up from $102.7 million in 2023, indicating an increase of 185.5%[155]. - Net cash used in financing activities decreased to $52.7 million in 2024 from $84.9 million in 2023, a reduction of 38%[152]. - As of September 30, 2024, the company had $2.4 billion in outstanding debt, with approximately 84% of it being fixed-rate debt[173]. - The carrying value of the company's fixed-rate debt was $1.98 billion, exceeding its fair value of $1.74 billion by $236.5 million as of September 30, 2024[172]. Impairments and Charges - An impairment charge of $68.0 million was recognized in the second quarter of 2024 due to a decline in the fair value of the AMCNI reporting unit[116]. - Impairment and other charges for the nine months ended September 30, 2024, amounted to $96,819,000, significantly higher than $30,282,000 in 2023, reflecting an increase of about 220%[170]. Acquisitions and Divestitures - The company divested its 25/7 Media business on December 29, 2023, leading to a reclassification of its operating segments[99]. - AMC Networks acquired the remaining 50.1% of BBC America for $42 million, now owning 100% of the business[148].

Financial Performance - Net revenues for Q3 2024 were $600 million, a decrease of 6% year-over-year; excluding $20 million from divested 25/7 Media, the decrease was 3%[5] - Revenues for Q3 2024 were $599.6 million, a decrease of 5.9% from $637.0 million in Q3 2023[32] - Operating income for Q3 2024 was $94 million, with adjusted operating income of $131 million, reflecting a margin of 22%[4][8] - Operating income for Q3 2024 was $93.7 million, down 22.5% from $120.9 million in Q3 2023[32] - Net income attributable to AMC Networks' stockholders for Q3 2024 was $41.4 million, a decline of 34.7% compared to $63.4 million in Q3 2023[32] - Adjusted EPS for Q3 2024 was $0.91, a decrease of 50.8% compared to the prior year[5] - Adjusted Earnings per Diluted Share (Adjusted EPS) for Q3 2024 was $0.76, compared to $1.44 in Q3 2023[32] Revenue Breakdown - Streaming revenues increased by 7% to $152 million, driven by year-over-year subscriber growth and price increases; streaming subscribers rose by 5% to 11.8 million[10][11] - Domestic operations revenues decreased by 2% to $530 million, with subscription revenues down 5% to $316 million[10] - International revenues fell by 24% to $74 million; excluding 25/7 Media revenues, the decrease was 6%[13] - Advertising revenues decreased by 10% to $133 million due to linear ratings declines, partially offset by growth in digital and advanced advertising[12] Cash Flow and Expenses - Free cash flow for the year to date reached $293 million, with Q3 free cash flow at $54 million[4][5] - Free cash flow for the three months ended September 30, 2024, is $53,941, a decrease of 45.5% compared to $99,150 in the same period of 2023[42] - Total operating expenses for Q3 2024 were $506.0 million, a slight decrease from $516.1 million in Q3 2023[32] - Interest expense increased to $45.1 million in Q3 2024 from $38.8 million in Q3 2023[32] - Capital expenditures for the nine months ended September 30, 2024, amount to $24,252, compared to $28,392 in the same period of 2023[42] Debt and Financial Position - Total debt for AMC Networks Inc. as of September 30, 2024, is $2,377,510, with net debt at $1,561,133[40] - The leverage ratio stands at 3.0x, calculated as net debt and finance leases divided by adjusted operating income[40] - The company reported a total of $2,003,760 in senior notes, which includes various maturities due between 2026 and 2029[40] Acquisitions and Strategic Moves - The company completed the acquisition of the remaining 50.1% of BBC America for $42 million, achieving 100% ownership and operational control[16] - AMC Networks operates multiple streaming services and cable networks, focusing on expanding its content offerings and audience engagement[30] Impairment and Charges - The company reported impairment and other charges of $96.8 million for the nine months ended September 30, 2024, compared to $30.3 million for the same period in 2023[32] - The company incurred impairment and other charges of $163,226 for the twelve months ended September 30, 2024[40] - Restructuring and other related charges for the three months ended September 30, 2024, total $3,496[45] Future Outlook - The company expects continued challenges in revenue growth due to market conditions and competition, impacting future performance[28]

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, 2024 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) Q2 2024 Earnings Conference Call August 9, 2024 8:30 AM ET Company Participants Nicholas Seibert - Vice President of Corporate Development & Investor Relations Kristin Dolan - Chief Executive Officer Patrick O’Connell - Chief Financial Officer Dan McDermott - President of Entertainment and AMC Studios Kimberly Kelleher - Chief Commercial Officer Conference Call Participants Thomas Yeh - Morgan Stanley David Joyce - Seaport Research Partners Steven Cahall - Wells Fargo Operato ...

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]

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