AMC Networks Withdraws Earnings Guidance Over Pandemic Impact

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AMC Networks CEO Josh Sapan

The company also outlined its liquidity, noting that it had $816 million in cash and cash equivalents on its balance sheet, and access to a $500 million revolving credit facility, which it has not yet tapped.

AMC Networks is the latest entertainment company to withdraw its earnings guidance due to the coronavirus pandemic.

In a filing with the Securities and Exchange Commission on Friday, the company outlined the challenges it has faced related to the pandemic.

“To date, we have experienced adverse advertising sales impacts and suspended content production, which has led to delays in the creation and availability of some of our television programming,” the company wrote. “At this time, we cannot predict the duration of and degree to which supply and demand for our products and services, including advertising, will be affected. This makes it challenging for management to estimate the future performance of our businesses, particularly over the near to medium term.”

The company also outlined its liquidity, noting that it had $816 million in cash and cash equivalents on its balance sheet, and access to a $500 million revolving credit facility, which it has not yet tapped. The company also has little near-term debt.

AMC Networks follows companies like ViacomCBS, Comcast and Disney in warning of the impact the virus is having on its business. A number of companies, including those three, have gone to the debt market for liquidity, while others, like AMC Theatres and Sinclair Broadcast Group, have turned to revolving credit facilities for cash.

Unlike companies like Disney, ViacomCBS and Comcast, however, AMC Networks is not exposed to the theme parks or theatrical business, nor is it reliant on major sports rights deals.