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AMC Networks Inc. Reports Second Quarter 2012 Results

Stocks in this article: AMCX

Forward-Looking Statements

This earnings release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results or developments may differ materially from those in the forward-looking statements as a result of various factors, including financial community and rating agency perceptions of the Company and its business, operations, financial condition and the industries in which it operates and the factors described in the Company's filings with the Securities and Exchange Commission, including 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 update any forward-looking statements contained herein.

Conference Call Information

AMC Networks will host a conference call today at 10:00 a.m. ET to discuss its second quarter 2012 results. To listen to the call, visit http://www.amcnetworks.com or dial 1-877-347-9170, using the following passcode: 10964539.

About AMC Networks Inc.

AMC Networks owns and operates several of cable television's most recognized brands delivering high quality content to audiences and a valuable platform to distributors and advertisers. The Company manages its business through two reportable operating segments: (i) National Networks, which includes AMC, WE tv, IFC and Sundance Channel; and (ii) International and Other, which includes AMC/Sundance Channel Global, our international programming business; IFC Films, the Company's independent film distribution business; and AMC Networks Broadcasting & Technology, the Company's network technical services business. For more information on AMC Networks, please visit the Company's website at http://www.amcnetworks.com .

The AMC Networks Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=9934

AMC NETWORKS INC.
CONSOLIDATED STATEMENTS OF INCOME
Three and Six Months Ended June 30, 2012 and 2011
 (In thousands, except per share amounts)
(Unaudited)
         
  Three Months Ended June 30, Six Months Ended June 30,
  2012 2011 2012 2011
         
Revenues, net  $ 327,570 $ 291,965 $ 653,809 $ 564,868
         
Operating expenses:        
Technical and operating (excluding depreciation and amortization)  114,349 95,883 219,279 186,294
Selling, general and administrative  90,878 88,564 190,100 175,485
Restructuring credit  -- (15) (3) (49)
Depreciation and amortization  24,067 25,259 49,118 50,185
  229,294 209,691 458,494 411,915
         
Operating income  98,276 82,274 195,315 152,953
         
Other income (expense):        
Interest expense  (29,431) (15,353) (59,228) (33,703)
Interest income  102 163 207 620
Write-off of deferred financing costs  -- (5,703) (312) (5,703)
Loss on extinguishment of debt  -- (14,518) -- (14,518)
Miscellaneous, net  (644) 7 (632) 79
  (29,973) (35,404) (59,965) (53,225)
         
Income from continuing operations before income taxes  68,303 46,870 135,350 99,728
Income tax expense  (26,898) (19,812) (50,868) (42,948)
Income from continuing operations  41,405 27,058 84,482 56,780
Income from discontinued operations, net of income taxes 105 97 209 193
Net income  $ 41,510 $ 27,155 $ 84,691 $ 56,973
         
Basic net income per share:        
Income from continuing operations  $ 0.59 $ 0.39 $ 1.20 $ 0.82
         
Income from discontinued operations  $ 0.00 $ 0.00 $ 0.00 $ 0.00
         
Net income  $ 0.59 $ 0.39 $ 1.21 $ 0.82
         
Diluted net income per share:        
Income from continuing operations  $ 0.57 $ 0.39 $ 1.17 $ 0.82
         
Income from discontinued operations  $ 0.00 $ 0.00 $ 0.00 $ 0.00
         
Net income  $ 0.58 $ 0.39 $ 1.17 $ 0.82
         
Weighted average common shares:        
Basic weighted average common shares  70,479 69,161 70,175 69,161
         
Diluted weighted average common shares  72,183 69,161 72,157 69,161
 
AMC NETWORKS INC.
SUPPLEMENTAL FINANCIAL DATA
 (Dollars in thousands)
(Unaudited)
           
  Three Months Ended June 30, 2012
  AOCF Depreciation and Amortization Share-Based Compensation Expense Restructuring Credit Operating Income (Loss)
           
National Networks $ 135,623 $ (20,527) $ (3,799) $ -- $ 111,297
International and Other (9,414) (3,540) (1,102)  -- (14,056)
Inter-segment eliminations 1,035 --  --  -- 1,035
Total  $ 127,244 $ (24,067) $ (4,901) $ -- $ 98,276
           
  Three Months Ended June 30, 2011
  AOCF Depreciation and Amortization Share-Based Compensation Expense Restructuring Credit Operating Income (Loss)
           
National Networks $ 116,892 $ (21,741) $ (3,635) $ --  $ 91,516
International and Other (4,758) (3,518) (878) 15 (9,139)
Inter-segment eliminations (103) --   -- -- (103)
Total  $ 112,031 $ (25,259) $ (4,513) $ 15 $ 82,274
           
  Six Months Ended June 30, 2012
  AOCF Depreciation and Amortization Share-Based Compensation Expense Restructuring Credit Operating Income (Loss)
           
National Networks $ 268,995 $ (41,832) $ (6,648) $ -- $ 220,515
International and Other (17,621) (7,286) (1,836) 3 (26,740)
Inter-segment eliminations 1,540 --  --  -- 1,540
Total  $ 252,914 $ (49,118) $ (8,484) $ 3 $ 195,315
           
  Six Months Ended June 30, 2011
  AOCF Depreciation and Amortization Share-Based Compensation Expense Restructuring Credit Operating Income (Loss)
           
National Networks $ 223,248 $ (43,052) $ (6,785) $ -- $ 173,411
International and Other (11,862) (7,133) (1,705) 49 (20,651)
Inter-segment eliminations 193 --  --  -- 193
Total  $ 211,579 $ (50,185) $ (8,490) $ 49 $ 152,953
 
 
AMC NETWORKS INC.
SUPPLEMENTAL FINANCIAL DATA
 (In thousands)
(Unaudited)
       
  June 30, 2012 March 31, 2012 June 30, 2011
       
National Networks Subscribers       
AMC (a) 96,900 96,400 97,000
WE tv (a) 78,500 76,600 77,300
IFC (a) 66,900 66,300 62,200
Sundance Channel (b) 40,400 42,400 40,300
       
(a)  Estimated U.S. subscribers as measured by Nielsen Media Research.      
(b)  Subscriber counts are based on internal management reports and represent viewing subscribers.      
       
Capitalization     June 30, 2012
       
Cash and cash equivalents     $ 307,803
Credit facility debt (a)     $ 1,569,050
Senior notes (a)     700,000
 Total debt      $ 2,269,050
       
Net debt      $ 1,961,247
       
 Capital leases      16,386
 Net debt and capital leases      $ 1,977,633
       
 LTM AOCF (b)     $ 483,048
       
 Leverage ratio (c)     4.1 x
       
(a)  Represents the aggregate principal amount of the debt.      
(b)  Represents reported AOCF for the trailing twelve months.      
(c)  Represents net debt and capital leases divided by LTM AOCF. This ratio differs from the calculation contained in the Company's credit facilities.    
       
Free Cash Flow   Six Months Ended June 30,
    2012 2011
Net cash provided by operating activities    $ 165,604 $ 119,122
Less: capital expenditures    (6,619) (4,340)
Free cash flow    $ 158,985 $ 114,782
CONTACT: Investor Relations
         Seth Zaslow (646) 273-3766
         szaslow@amcnetworks.com
         
         Corporate Communications
         Georgia Juvelis (917) 542-6390
         gjuvelis@amcnetworks.com

AMC Networks Inc. Logo

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