AMC Networks(AMCX) - 2025 Q1 - Quarterly Report

Financial Performance - Consolidated revenues for Q1 2025 were $555.233 million, a decrease of 6.9$596.461 million in Q1 2024[102] - Operating income for Q1 2025 was $64.197 million, down 41.7$110.178 million in Q1 2024[102] - Adjusted operating income for Q1 2025 was $104.485 million, a decline of 30$149.124 million in Q1 2024[102] - Total net revenues decreased by 6.9% to $555.2 million for the three months ended March 31, 2025, compared to$596.5 million in the same period of 2024[124] - Subscription revenues declined by 4.1% to $358.1 million, with a 2.8$141.9 million, while International Operations saw a 5.0% increase to $22.6 million[124][126] - Net income attributable to AMC Networks' stockholders was$18.0 million, down 60.6% from $45.8 million in the prior year[124] - Segment adjusted operating income for Domestic Operations decreased by 23.7$123.9 million, reflecting continued revenue headwinds in linear businesses[143][149] Expenses and Costs - Content expenses represent the largest expense in both Domestic and International segments, primarily consisting of amortization of program rights[115][119] - Selling, general and administrative expenses increased by 4.8% to $198.0 million, driven by higher employee-related costs[124][132] - Restructuring charges amounted to$4.8 million, primarily related to the planned wind-down of a U.K. joint venture[134] Cash Flow and Liquidity - Net cash provided by operating activities for the three months ended March 31, 2025, was $108.8 million, a decrease of 28$150.9 million in the same period of 2024[166] - For the three months ended March 31, 2025, free cash flow was $94.2 million, down from$144.1 million in the same period of 2024[184] - As of March 31, 2025, cash and cash equivalents totaled $870.2 million, with approximately$121.4 million held by foreign subsidiaries[157] Debt and Financial Obligations - The company has substantial debt and high leverage, which may affect its financial flexibility and access to capital markets[97] - The total net leverage ratio as of March 31, 2025, was approximately 4.34:1.00, below the maximum allowable ratio of 5.75:1.00 until March 31, 2026[161] - The company expects to rely on access to capital and credit markets to manage its debt obligations, as it does not anticipate generating sufficient cash from operations to repay all outstanding debt[160] - As of March 31, 2025, the carrying value of the company's fixed rate debt is $1.98 billion, exceeding its fair value of$1.76 billion by $213.9 million[185] - The company has$2.4 billion of debt outstanding, with $357.5 million subject to variable interest rates[186] - Approximately 85$3.8 million for the three months ended March 31, 2025[189] - A hypothetical 100 basis point decrease in interest rates would increase the estimated fair value of the fixed rate debt by $23.2 million to$1.79 billion[185] - A hypothetical 100 basis point increase in interest rates would raise the annual interest expense by $3.6 million[186] - The company had a minimum interest coverage ratio of 2.64:1.00 as of March 31, 2025, exceeding the required minimum of 2.00:1.00[161] - Contractual obligations not reflected on the balance sheet decreased by$34.5 million to $560.8 million as of March 31, 2025[173]