<<

SECURITIES AND EXCHANGE COMMISSION

FORM 8-K Current report filing

Filing Date: 2021-05-19 | Period of Report: 2021-05-19 SEC Accession No. 0001514991-21-000028

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FILER AMC Networks Inc. Mailing Address Business Address 11 PENN PLAZA 11 PENN PLAZA CIK:1514991| IRS No.: 275403694 | State of Incorp.:DE | Fiscal Year End: 1231 NEW YORK NY 10001 NEW YORK NY 10001 Type: 8-K | Act: 34 | File No.: 001-35106 | Film No.: 21940293 (212) 324-8500 SIC: 4841 Cable & other services

Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 19, 2021 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 (I.R.S. Employer incorporation or organization) Identification No.)

11 Penn Plaza, New York, NY 10001

(Address of principal executive offices) (Zip Code)

(212) 324-8500 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common Stock, par value $0.01 per share AMCX The Stock Market LLC

Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Item 7.01 Regulation FD Disclosure

In the first quarter of 2021, AMC Networks Inc. (the "Company" or "our") changed its presentation of operating segments, reflecting a reorganized operating structure focused on a multi-platform distribution approach to content monetization. The Company's streaming services and IFC Films, previously included in the International and Other segment, are now included within the Domestic Operations segment (formerly referred to as the National Networks segment). In addition, certain corporate overhead costs are no longer allocated to the operating segments.

The new reporting structure consists of the following two operating segments:

• Domestic Operations: Includes activities of our five national programming networks, our streaming services, our AMC Studios operation, IFC Films and AMC Broadcasting & Technology. Our national programming networks are AMC, WE tv, BBC AMERICA, IFC, and SundanceTV. Our streaming services consist of our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, and ALLBLK), AMC+ and other streaming initiatives. Our AMC Studios operation produces original programming for our programming networks and also licenses such programming worldwide. IFC Films is our film distribution business and AMC Networks Broadcasting & Technology is our technical services business, which primarily services most of the national programming networks.

• International and Other: Includes AMC Networks International ("AMCNI"), our international programming businesses consisting of a portfolio of channels around the world and 25/7 Media (formerly Levity), our production services business.

Exhibit 99.1 contains unaudited segment financial information for 2020 and 2019 under the new segment structure. The changes in the segment structure discussed above affect only the manner in which the results for the Company's operating segments were previously reported and have no impact on the Company's previously reported consolidated financial statements or results of operations.

The information contained in this Item 7.01, including Exhibit 99.1 incorporated herein by reference, is furnished and shall not be deemed to be filed for purposes of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number Description

99.1 Unaudited segment financial information for 2020 and 2019 104 Cover Page Interactive Data File (embedded within the inline XBRL document)

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Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. AMC Networks Inc.

May 19, 2021Date: By: /s/ Christina Spade Christina Spade Executive Vice President and Chief Financial Officer

Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Exhibit 99.1

SEGMENT REPORTING CHANGES This document provides recast segment financial information for 2020 and 2019 to reflect the following:

In the first quarter of 2021, AMC Networks (the "Company" or "our") changed its presentation of operating segments, reflecting a reorganized operating structure focused on a multi-platform distribution approach to content monetization. The Company's streaming services and IFC Films, previously included in the International and Other segment, are now included within the Domestic Operations segment (formerly referred to as the National Networks segment). In addition, certain corporate overhead costs are no longer allocated to the operating segments. These changes have no effect on the Company's consolidated financial statements or results of operations.

The new reporting structure consists of the following two operating segments:

• Domestic Operations: Includes activities of our five national programming networks, our streaming services, our AMC Studios operation, IFC Films and AMC Broadcasting & Technology. Our national programming networks are AMC, WE tv, BBC AMERICA, IFC, and SundanceTV. Our streaming services consist of our targeted subscription streaming services (Acorn TV, Shudder, Sundance Now, and ALLBLK), AMC+ and other streaming initiatives. Our AMC Studios operation produces original programming for our programming networks and also licenses such programming worldwide. IFC Films is our film distribution business and AMC Networks Broadcasting & Technology is our technical services business, which primarily services most of the national programming networks.

• International and Other: Includes AMC Networks International ("AMCNI"), our international programming businesses consisting of a portfolio of channels around the world and 25/7 Media (formerly Levity), our production services business.

1

Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document SUMMARY OF RECAST SEGMENT RESULTS

The following is a summary of segment revenues, operating income (loss), and adjusted operating income (loss) presented under the new segment reporting structure for the periods presented:

Year Ended Quarter Ended Year Ended

December 31, September 30, December 31, December 31, 2019 March 31, 2020 June 30, 2020 2020 2020 2020 Revenue Domestic Operations $ 2,563,250 $ 611,893 $ 562,932 $ 546,865 $ 659,711 $ 2,381,401 International and Other 527,916 124,828 90,682 111,398 126,322 453,230 Inter-segment Eliminations (30,845) (2,346) (7,323) (4,248) (5,758) (19,675) $ 3,060,321 $ 734,375 $ 646,291 $ 654,015 $ 780,275 $ 2,814,956

Operating Income (Loss) Domestic Operations $ 884,054 $ 224,601 $ 217,586 $ 179,259 $ 113,425 $ 734,871 International and Other (83,948) 4,361 (125,562) 3,061 8,775 (109,365) Corporate / Inter-segment Eliminations (174,829) (55,992) (43,222) (42,843) (40,805) (182,862) $ 625,277 $ 172,970 $ 48,802 $ 139,477 $ 81,395 $ 442,644

Adjusted Operating Income(1) Domestic Operations $ 986,331 $ 241,033 $ 236,353 $ 205,614 $ 144,954 $ 827,954 International and Other 67,336 17,843 15,583 8,917 6,382 48,725 Corporate / Inter-segment Eliminations (2) (109,677) (36,422) (26,658) (29,040) (17,948) (110,068) $ 943,990 $ 222,454 $ 225,278 $ 185,491 $ 133,388 $ 766,611

(1) Adjusted Operating Income (AOI) is the primary financial measure the Company uses to evaluate segment performance. Since AOI is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies. See below for a reconciliation of operating income (loss) to AOI.

(2) Corporate overhead costs include such costs as executive salaries and benefits, costs of maintaining corporate headquarters, facilities and common support functions (such as human resources, legal, finance, strategic planning and information technology).

Inter-segment eliminations are primarily licensing revenues recognized between the Domestic Operations and International and Other segments.

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Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document The following tables present the Company's operating results and a reconciliation to segment AOI under the new segment reporting structure for the periods presented:

Domestic Operations

Year Ended Quarter Ended Year Ended

December 31, September 30, December 31, December 31, (unaudited, in thousands) 2019 March 31, 2020 June 30, 2020 2020 2020 2020 Revenue: Advertising $ 904,253 $ 213,226 $ 187,434 $ 164,178 $ 236,639 $ 801,477 Distribution and other 1,658,997 398,667 375,498 382,687 423,072 1,579,924 2,563,250 611,893 562,932 546,865 659,711 2,381,401 Operating expenses: Technical and operating (excluding depreciation and amortization) 1,199,159 263,348 235,335 260,330 371,153 1,130,166 Selling, general and administrative 409,878 111,512 97,506 87,025 146,801 442,844 Depreciation and amortization 41,299 10,950 11,301 15,799 12,524 50,574 Restructuring and other related charges 28,860 1,482 1,204 4,452 15,808 22,946 Total operating expenses 1,679,196 387,292 345,346 367,606 546,286 1,646,530 Operating income 884,054 224,601 217,586 179,259 113,425 734,871 Share-based compensation expense (benefit) 26,153 2,724 4,844 4,437 (1,400) 10,605 Depreciation and amortization 41,299 10,950 11,301 15,799 12,524 50,574 Restructuring and other related charges 28,860 1,482 1,204 4,452 15,808 22,946 Majority-owned equity investees AOI 5,965 1,276 1,418 1,667 4,597 8,958 Adjusted operating income $ 986,331 $ 241,033 $ 236,353 $ 205,614 $ 144,954 $ 827,954

3

Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document International and Other

Year Ended Quarter Ended Year Ended

December 31, September 30, December 31, December 31, (unaudited, in thousands) 2019 March 31, 2020 June 30, 2020 2020 2020 2020 Revenue: Advertising $ 89,659 $ 19,364 $ 14,810 $ 18,924 $ 21,241 $ 74,339 Distribution and other 438,257 105,464 75,872 92,474 105,081 378,891 527,916 124,828 90,682 111,398 126,322 453,230 Operating expenses: Technical and operating (excluding depreciation and amortization) 332,241 80,136 54,190 77,356 88,999 300,681 Selling, general and administrative 132,884 27,458 21,818 26,044 31,492 106,812 Depreciation and amortization 34,983 8,896 7,563 4,937 5,069 26,465 Impairment and other charges (credits) 106,603 — 130,411 — (8,184) 122,227 Restructuring and other related charges 5,153 3,977 2,262 — 171 6,410 Total operating expenses 611,864 120,467 216,244 108,337 117,547 562,595 Operating income (loss) (83,948) 4,361 (125,562) 3,061 8,775 (109,365) Share-based compensation expense 4,545 609 909 919 551 2,988 Depreciation and amortization 34,983 8,896 7,563 4,937 5,069 26,465 Impairment and other charges 106,603 — 130,411 — (8,184) 122,227 Restructuring and other related charges 5,153 3,977 2,262 — 171 6,410 Adjusted operating income $ 67,336 $ 17,843 $ 15,583 $ 8,917 $ 6,382 $ 48,725

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Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Corporate / Inter-segment Eliminations

Year Ended Quarter Ended Year Ended

December 31, September 30, December 31, December 31, (unaudited, in thousands) 2019 March 31, 2020 June 30, 2020 2020 2020 2020 Revenue: Advertising $ (79) $ — $ — $ — $ — $ — Distribution and other (30,766) (2,346) (7,323) (4,248) (5,758) (19,675) (30,845) (2,346) (7,323) (4,248) (5,758) (19,675) Operating expenses: Technical and operating (excluding depreciation and amortization) (24,415) 575 (7,023) (3,869) (18,939) (29,256) Selling, general and administrative 136,682 45,680 35,840 35,698 41,946 159,164 Depreciation and amortization 24,816 6,884 7,041 6,812 6,830 27,567 Restructuring and other related charges 6,901 507 41 (46) 5,210 5,712 Total operating expenses 143,984 53,646 35,899 38,595 35,047 163,187 Operating loss (174,829) (55,992) (43,222) (42,843) (40,805) (182,862) Share-based compensation expense 33,435 12,179 9,482 7,037 10,617 39,315 Depreciation and amortization 24,816 6,884 7,041 6,812 6,830 27,567 Restructuring and other related charges 6,901 507 41 (46) 5,210 5,712 Cloud computing amortization — — — — 200 200 Adjusted operating loss $ (109,677) $ (36,422) $ (26,658) $ (29,040) $ (17,948) $ (110,068)

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