AMC Networks Inc. Reports Third Quarter 2022 Results

NEW YORK, Nov. 04, 2022 (GLOBE NEWSWIRE) — AMC Networks Inc. (“AMC Networks” or the “Company”) (NASDAQ: AMCX) at present reported monetary outcomes for the third quarter ended September 30, 2022.

Chief Executive Officer Christina Spade mentioned: “Our strong content engagement is driving positive momentum throughout 2022. Our focus to transform to a consumer-focused multi-platform premium content company is taking hold with strong digital distribution growth. We have 11.1 million paid subscribers as of the end of the third quarter, representing 44% growth from the prior year and streaming revenue growth of 41%. Our ability to break through the competition with our highly-engaging content, as we further reconstitute our revenue mix, positions us well for long-term success and value creation.”

Operational Highlights:

• Expanding distribution partnership with Roku with the addition of 11 FAST channels programmed by AMC Networks
• Anne Rice’s Interview with the Vampire premiered in October and is the most important new collection in AMC+ historical past and the #1 new drama on ad-supported cable in 2022; renewed for a second season
• Premiering Anne Rice’s Mayfair Witches, the following collection within the Anne Rice Immortal Universe, on AMC+ and AMC on January 8, 2023
• Developing three new collection in The Walking Dead Universe:
  • The Walking Dead: Dead City, that includes Maggie and Negan in a post-apocalyptic Manhattan led by Jeffery Dean Morgan and Lauren Cohan
  • Norman Reedus-led, Daryl Dixon collection set in Paris
  • The persevering with journey of Rick and Michonne, led by Andrew Lincoln and Danai Gurira
• Expanded distribution of the AMC+ premium streaming providers in Australia, New Zealand and Spain

Financial Highlights – Third Quarter Ended September 30, 2022:

• Streaming subscribers grew 44% from the prior 12 months to 11.1 million subscribers as of September 30, 2022
• Net revenues decreased 16% from the prior 12 months to $682 million, largely pushed by the timing of content material licensing revenues, decrease affiliate and promoting revenues, and unfavorable international foreign money translation, partly offset by streaming income progress of 41%
• Operating earnings decreased 20% from the prior 12 months to $151 million; Adjusted Operating Income⁽¹⁾ decreased 14% to $194 million, attributable to decrease revenues, partly offset by decrease content material and advertising investments and strategic price self-discipline, with a margin of 28%
• Diluted EPS of $1.94; Adjusted EPS⁽¹⁾ of $2.09
• Net money offered by working actions of $19 million; Free Cash Flow⁽¹⁾ of $4 million

Segment Results:
({dollars} in 1000’s)

Domestic Operations
Third Quarter Results:

• Domestic Operations’ revenues decreased 14% from the prior 12 months to $587 million
  • Distribution and different revenues decreased 16% to $407 million
    • Content licensing revenues decreased 63% to $58 million as a result of timing and availability of deliveries within the quarter
    • Subscription revenues grew 8% attributable to elevated streaming revenues primarily pushed by streaming subscriber progress and contractual affiliate charge will increase, partially offset by declines within the linear subscriber universe
      • Streaming revenues elevated 41% with quarter finish whole subscribers of 11.1 million
      • Affiliate revenues declined within the mid-single-digits attributable to fundamental subscriber declines
  • Advertising revenues decreased 10% to $180 million attributable to decrease linear rankings, softer scatter and direct response markets and fewer unique hours within the third quarter, partially offset by digital and superior promoting income progress
• Operating earnings decreased 13% to $187 million
• Adjusted Operating Income, with a margin of 35%, decreased 11% to $207 million, reflecting income efficiency, partially offset by decrease programming and advertising investments for the quarter

International and Other
Third Quarter Results:

• International and Other revenues decreased 24% from the prior 12 months to $99 million; excluding the affect of international foreign money translation, 16% lower
  • Distribution and different revenues decreased 22% to $82 million, primarily as a result of timing of productions at 25/7 Media and unfavorable international foreign money translation at AMCNI; excluding the affect of international foreign money translation, 15% lower
  • Advertising revenues decreased 31% to $17 million, primarily as a result of affect of the deliberate wind-down of two channels within the U.Okay., the unfavorable affect of international foreign money translation, and softer rankings within the U.Okay.; excluding the affect of international foreign money translation, 20% lower
• Operating earnings decreased 47% to $8 million
• Adjusted Operating Income decreased 40% to $13 million, reflecting decrease income and the unfavorable affect of international foreign money translation; excluding the affect of international foreign money translation, 36% lower

Other Matters
Stock Repurchase Program & Outstanding Shares

As beforehand disclosed, the Company’s Board of Directors has approved a program to repurchase as much as $1.5 billion of the Company’s excellent shares of frequent inventory. The Stock Repurchase Program has no pre-established cut-off date and could also be suspended or discontinued at any time. During the quarter ended September 30, 2022, the Company didn’t repurchase any shares. As of September 30, 2022, the Company had $135 million of authorization remaining for repurchase below the Stock Repurchase Program.

As of October 28, 2022, the Company had 31,495,577 shares of Class A Common Stock and 11,484,408 shares of Class B Common Stock excellent.

Please see the Company’s Form 10-Q for the interval ended September 30, 2022, which will probably be filed later at present, for additional particulars concerning the above issues.

Description of Non-GAAP Measures

The Company defines Adjusted Operating Income (Loss), which is a non-GAAP monetary measure, as working earnings (loss) earlier than share-based compensation expense or profit, depreciation and amortization, impairment and different expenses (together with good points or losses on gross sales or tendencies of companies), restructuring and different associated expenses, cloud computing amortization, and together with the Company’s proportionate share of adjusted working earnings (loss) from majority-owned fairness methodology investees. From time to time, we might exclude the affect of sure occasions, good points, losses, or different expenses (comparable to vital authorized settlements) from AOI that have an effect on our working efficiency. Because it’s primarily based upon working earnings (loss), Adjusted Operating Income (Loss) additionally excludes curiosity expense (together with money curiosity expense) and different non-operating earnings and expense objects. The Company believes that the exclusion of share-based compensation expense or profit permits buyers to raised monitor the efficiency of the assorted working items of the business with out regard to the impact of the settlement of an obligation that isn’t anticipated to be made in money.

The Company believes that Adjusted Operating Income (Loss) is an acceptable measure for evaluating the working efficiency of the business segments and the Company on a consolidated foundation. Adjusted Operating Income (Loss) and comparable measures with comparable titles are frequent efficiency measures utilized by buyers, analysts, and friends to match efficiency within the trade.

Internally, the Company makes use of web revenues and Adjusted Operating Income (Loss) measures as crucial indicators of its business efficiency and evaluates administration’s effectiveness with particular reference to those indicators. Adjusted Operating Income (Loss) ought to be considered as a complement to and never an alternative choice to working earnings (loss), web earnings (loss), and different measures of efficiency offered in accordance with U.S. usually accepted accounting rules (“GAAP”). Since Adjusted Operating Income (Loss) is just not a measure of efficiency calculated in accordance with GAAP, this measure might not be similar to comparable measures with comparable titles utilized by different corporations. For a reconciliation of working earnings (loss) to Adjusted Operating Income (Loss), please see pages 7-8 of this launch.

The Company defines Free Cash Flow, which is a non-GAAP monetary measure, as web money offered by working actions much less capital expenditures and money distributions to noncontrolling pursuits, all of that are reported in our Consolidated Statement of Cash Flows. The Company believes essentially the most comparable GAAP monetary measure of its liquidity is web money offered by working actions. The Company believes that Free Cash Flow is helpful as an indicator of its total liquidity, as the quantity of Free Cash Flow generated in any interval is consultant of money that’s obtainable for debt reimbursement, funding, and different discretionary and non-discretionary money makes use of. The Company additionally believes that Free Cash Flow is certainly one of a number of benchmarks utilized by analysts and buyers who comply with the trade for comparability of its liquidity with different corporations within the trade, though the Company’s measure of Free Cash Flow might not be straight similar to comparable measures reported by different corporations. For a reconciliation of web money offered by working actions to Free Cash Flow, please see web page 9 of this launch.

The Company defines Adjusted Earnings per Diluted Share (“Adjusted EPS”), which is a non-GAAP monetary measure, as earnings per diluted share excluding the next objects: amortization of acquisition-related intangible property; impairment and different expenses (together with good points or losses on gross sales or tendencies of companies); non-cash impairments of goodwill, intangible and glued property; restructuring and different associated expenses; and good points and losses associated to the extinguishment of debt; in addition to the affect of taxes on the aforementioned objects. The Company believes essentially the most comparable GAAP monetary measure is earnings per diluted share. The Company believes that Adjusted EPS is certainly one of a number of benchmarks utilized by analysts and buyers who comply with the trade for comparability of its efficiency with different corporations within the trade, though the Company’s measure of Adjusted EPS might not be straight similar to comparable measures reported by different corporations. For a reconciliation of earnings per diluted share to Adjusted EPS, please see pages 10-11 of this launch.

Forward-Looking Statements

This earnings launch might comprise statements that represent forward-looking statements inside the which means of the Private Securities Litigation Reform Act of 1995. These statements are primarily based on administration’s present expectations and are topic to uncertainty and modifications in circumstances. Investors are cautioned that any such forward-looking statements usually are not ensures of future efficiency or outcomes and contain dangers and uncertainties and that precise outcomes or developments might differ materially from these within the forward-looking statements because of varied elements, together with monetary group and ranking company perceptions of the Company and its business, operations, monetary situation and the industries during which it operates and the elements described within the Company’s filings with the Securities and Exchange Commission, together with the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. The Company disclaims any obligation to replace any forward-looking statements contained herein.

Conference Call Information

AMC Networks will host a convention name at present at 8:30 a.m. ET to debate its third quarter 2022 outcomes. To take heed to the decision, please go to buyers.amcnetworks.com.

About AMC Networks Inc.

AMC Networks (Nasdaq: AMCX) is a world leisure firm recognized for its well-liked and critically acclaimed content material. Its manufacturers embody focused streaming providers AMC+, Acorn TV, Shudder, Sundance Now, ALLBLK and the anime-focused HIDIVE streaming service, along with AMC, BBC AMERICA (operated by means of a three way partnership with BBC Studios), IFC, SundanceTV, WE television, IFC Films and RLJE Films. AMC Studios, the Company’s in-house studio, manufacturing and distribution operation, is behind among the greatest titles and types recognized to a world viewers, together with The Walking Dead, the Anne Rice catalog and the Agatha Christie library. The Company additionally operates AMC Networks International, its worldwide programming business, and 25/7 Media, its manufacturing providers business.

Contacts

AMC NETWORKS INC.
CONSOLIDATED STATEMENTS OF INCOME
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(unaudited)

AMC NETWORKS INC.
SUPPLEMENTAL FINANCIAL DATA
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(Unaudited)

AMC NETWORKS INC.
SUPPLEMENTAL FINANCIAL DATA
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(Unaudited)

AMC NETWORKS INC.
SUPPLEMENTAL FINANCIAL DATA
(Dollars in 1000’s, besides per share quantities)
(Unaudited)

AMC NETWORKS INC.
SUPPLEMENTAL FINANCIAL DATA
(Dollars in 1000’s, besides per share quantities)
(Unaudited)

AMC NETWORKS INC.
SUPPLEMENTAL FINANCIAL DATA
(Dollars in 1000’s, besides per share quantities)
(Unaudited)