Annual 2019

Report
 2019

ANNUAL
REPORT

A24
31 WEST 27TH STREET, NEW YORK CITY, NEW YORK, U.S. 2019
 STACKS ON STACKS
3-WORD SUMMARY:
table
of
contents
P. 04 – Shareholder’s Letter

FURBY-VISION
P. 06 – 2019 recap
P. 08 – Star stacked & loaded
P. 10 – Binge us, baby
P. 12 – Up all night

FINANCIALS
P. 14 – Now for da money
P. 16 – Balance sheets
P. 18 – Films released
P. 20 – Income breakdown

P. 22 – Colophon

P. A24
02 2019
 To our beautiful ALL
LE VELS EXCEPT
PH
YS
AN ARE A FURB
& dearest WE’RE TALKING
TO YOU, BABE
ON W E Y. IC
AL

stakeholders,

,
KINDA
BOLD EDGY
BORN OF
AN
W MARKETPLACE
e’re pleased to report that fiscal 2019 was a year in which we continued
to scale our global content platform, deepened our product pipelines,
invested in new businesses that make our Company stronger, and extended our GLUTTONY IRREVERSIBLE
reach around the world. MISTAKE
During the year, we added hundreds of valuable We find movies HAIRY BUT
properties to our nearly 17,000–title library, [for which] our BEAUTIFUL
perspective,
POSSIBLY
divers fied our film and television production and
distribution businesses, and positioned our Starz
our system, our
premium pay network as a premier global brand.
people, can act to SATANIC
In May 2019, we acquired a majority stake in the make it something
3 Arts Entertainment management and production
company, not only deepening our talent relation-
special. If it’s
ships but adding to a portfolio of emerging busi- gonna be released
nesses that include location–based entertainment, the same way by
interactive ventures and games, eSports, over-the-
another company,
top (OTT) channels and Atom Tickets. Most of these
newer platforms have already reached critical mass
we usually don’t
and are poised to make meaningful contributions to go after it.
our bottom line. $ $
Financially, we grew adjusted OIBDA by 11% (on a pro forma combined basis)
to a record $604 million in the year and continued to generate robust free
cash flow of $330 million, with all of our business segments contributing to
our strong financial performance. We also strengthened our balance sheet by
restructuring our debt to lock in lower interest rates and increase capacity,
and we continued to deleverage ahead of schedule, reducing our net debt by
$650 million in the year. In addition, we resumed our quarterly cash dividend
of $0.09 per common share.

We enter fiscal 2020 positioned to accelerate the growth of our consumer–

facing platforms while continuing to expand the content pipelines of our
traditional businesses, backed by a vast library and a strong balance sheet.

Golden Oscars: 0 LOVE,

Bedazzled Furbys: 1
THE BOIS
P. A24
04 2019
P.

03

1
NEW TALENT
We worked alongside
A-Listers, social
activists, & straight
up ballers.

a quick recap
of 2019...
TURN ON YOUR
“FURBY-VISION”

3
HELLA STORIES

2 Our team delivered over 100

hours of original content
across film & TV.

FRESH
PARTNERS
We joined up with new
distribution partners,
including one that
rhymes with “Pet-licks”.
Also, Hulu & TruTV.
we gonna brag
for a sec →
P. A24
06 2019
 1
r s t a c ked
ADAM SANDLER FLORENCE PUGH

­—st a

UNCUT GEMS
& loaded
CASTS, THAT IS

MIDSOMMAR
AWKWAFINA ROBERT PATTINSON

ZENDAYA

HIGH LIFE
THE FAREWELL
COLEMAN

HUNTER
SCHAFER
JOHN MULANEY ANDREA SAVAGE

JOHN MULULANEY & THE

I’M SORRY (SEASON 2)

SACK LUNCH BUNCH
EUPHORIA

DID U KNOW? ... BAD BITCHES NEVER DIE.

SUNITA MANI JONATHAN MAJORS
Z
endaya and Hunter are two of the biggest The latter is a social activist who led the

THE DEATH OF DICK LONG

THE LAST BLACK MAN

baddies we met in 2019. The former is an landmark fight for transgender bathroom rights

IN SAN FRANCISCO
up-and-coming mega star who has already worked with her father in 2016. These two ladies are
across dance, vocals, and a variety of comic a great example of what made the A24 family so
and dramatic acting despite her young age. awesome in 2019.

P. A24
08 2019
 2
—binge us,
JOHN MULANEY & THE SACK LUNCH BUNCH

baby WE’RE
NOW
STREAMING

RAMY

NETFLIX

N
etflix has begun adding dozens hilarating charms of Spring Break-
of A24 movies to their stream- ers or the Kevin Smith body-horror
ing library, in what’s undeniably of Tusk or Tom Hardy delivering a
been a coup for the platform. You one-man show as a faithless husband
could roll up with the filthy, ex- in a car by himself in Locke.

AT HOME WITH AMY SEDARIS

TruTV

T
ruTV is the home for original,
creator-driven comedy series

HULU H
with a distinct point of view. as A24 ever met a coming-of- chael. Youssef plays Ramy Hassan, a
With millions of engaged fans age-ish story it didn’t love first-generation Egyptian-American
across linear, digital and social and support? Ouur indie studio has trying to figure out his spiritu-
channels, the cable network fea- executive produced Ramy, created al life and his love life. Hulu has
tures a growing roster of criti- by and starring Ramy Youssef and over 20 million U.S. subscribers and
cally-acclaimed premium scripted, executive produced by Jerrod Carmi- has future work slated for 2020.
non-scripted and hybrid series.

P. A24
10 2019
 TELEVISION RELEASES THEATRICAL RELEASES

01.09.19 – PRESENT 06.28.19 – PRESENT

TITLE RELEASE DATE INCOME LENGTH

Outlaws Feb 1, 2019 $42,300,000

95 mins

219 mins (20 episodes / 1 season) 231 mins (4 episodes / 1 season)

Climax March 1, 2019 $42,300,000
102 mins

I’m Sorry Exhibit A

The Hole in March 1, 2019 $42,300,000
88 mins
the Ground
02.19.19 – PRESENT 06.29.19

Gloria Bell March 8, 2019 $42,300,000

92 mins

High Life April 5, 2019 $42,300,000

107 mins

603 mins (10 episodes / 1 season) 72 mins (1 episode / 1 season)

At Home with Amy Sedaris Ramy Youssef: Feelings Native Son April 6, 2019 $42,300,000
120 mins

04.19.19 – PRESENT 01.09.19 – PRESENT

Under the May 17, 2019 $42,300,000
83 mins
Silver Lake

3
—up
HOURS & HOURS The Souvenir June 7, 2019 $42,300,000
98 mins
OF CONTENT

548 mins (10 episodes / 1 season) 59 mins (1 episode / 1 season) The Last Black Man July 3, 2019 $42,300,000
109 mins
Ramy Frankenstein’s Monster’s in San FrancWisco
Monster, Frankenstein
Midsommar July 3, 2019 $42,300,000
104 mins

all
04.30.19 08.10.19

The Farewell July 12, 2019 $42,300,000

92 mins

Skin July 26, 2019 $42,300,000

87 mins

67 54 79
mins (1 episode / 1 season) mins (1 episode / 1 season)
Share July 27, 2019 $42,300,000

night
mins
Anthony Jeselnik: My Favorite Shapes
Fire in the Maternity Ward by Julio Torres
The Death of Sept 27, 2019 $42,300,000
118 mins
Dick Long
06.16.19 – PRESENT 12.24.19

Low Tide Oct 4, 2019 $42,300,000

102 mins

The Lighthouse Oct 18, 2019 $42,300,000

95 mins

510 mins (8 episodes / 1 season) 62 mins (1 episode / 1 season)

Euphoria John Mulaney & the The Elephant Queen Oct 18, 2019 $42,300,000
102 mins

Sack Lunch Bunch

The Kill Team Oct 25, 2019 $42,300,000

94 mins

W
06.21.19 – PRESENT
hile the company initially
started with the goal of
Waves Nov 15, 2019 $42,300,000
121 mins
distributing 8-10 films per year,
that number has increased rapidly
as they have found their footing
In Fabric Dec 6, 2019 $42,300,000
81 mins
243 mins (4 episodes / 1 season)
and garnered more attention.
The Confession Tapes
Uncut Gems Dec 13, 2019 $42,300,000
88 mins

P. A24
12 2019
 $
:D

:D
:D
:D

:D
$$$$$$

BUT NOW

FOR DA

:D
MONEY
:D
:D
:D
:D
:D

$ $
D
:D

P. A24
14 2019
 Films Released
ANNUAL GROSS (IN MILLIONS) NUMBER OF FILMS (IN FURBYS)
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110 115 120

2013 27.9 2013 5

2014
17.8 2014 12

2015
60.0 2015
10

2016 76.9 2016

18

2017
102.6 2017 15

2018
109.2 2018 15

2019
113.7 2019 21

P. KEY: = 5 FILMS RELEASED = 1 FILM RELEASED A24

16 2019
 Consolidated Statement of Cash
Balance Sheet Flows

LINE ITEM 2019 2018 LINE ITEM 2019 2018 2017

Cash and cash equivalents 378.1 321.9 Operating Activities:

Restricted cash — 2.8 Net income 468.1 14.5 42.7

Accounts receivable, net 946.0 908.1 Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Program rights 53.2 261.7
Depreciation and amortization 159.0 63.1 13.1
Other current assets 195.8 195.9
Amortization of films and television programs
Total current assets 1,773.1 1,690.4 and program rights 1,641.7 1,414.0 1,029.1

Investment in films and television Interest on dissenting shareholders’ liability 56.5 15.5 —
programs and program rights, net 1,692.0 1,729.5
Amortization of debt discount and financing costs 14.3 12.9 9.2
Property and equipment, net 161.7 165.5
Non-cash share-based compensation 88.4 76.9 77.9
Investments 164.9 371.5
Other non-cash items 20.1 4.3 2.0
Intangible assets 1,937.7 2,046.7
Distribution from equity method investee — 14.0 —
Goodwill 2,740.8 2,700.5
Gain on Starz investment — (20.4) —
Other assets 458.6 472.8
Loss on extinguishment of debt 35.7 40.4 —
Deferred tax assets 38.8 20.0
Equity interests loss (income) 52.8 (10.7) (44.2)

TOTAL ASSETS 8,967.6 9,196.9 Gain on sale of equity interest in EPIX (201.0) — —

Impairment of long-term investments and other assets 29.2 — —

Deferred income tax benefit (299.5) (163.4) (85.1)

P. A24
18 2019
 Income Statement TOTAL REVENUE
(IN MILLIONS)
$ 4 ,1 2 9.1

LINE ITEM 2019 2018 2017

Operating income (loss) 248.7 (16.3) (25.0) NET INCOME $ 4 6 8 .1

Interest expense (IN MILLIONS)

Interest expense (137.2) (99.7) (54.9)

Interest on dissenting shareholders’ liability (56.5) (15.5) —

Total interest expense (193.7) (115.2) (54.9)

Interest and other income 10.4 6.4 1.9 Depreciation

and amortization Restructuring and other
Loss on extinguishment of debt (35.7) (40.4) — 4.2% 1.5%

Gain on sale of equity interest in EPIX 201.0 — —

General and
Gain on Starz investment — 20.4 — administration Direct operating
11.7% 59.5%
Impairment of long-term investments and other assets (29.2) — —

Equity interests income (loss) (52.8) 10.7 44.2

Income (loss) before income taxes 148.7 (134.4) (33.8)

Income tax benefit 319.4 148.9 76.5

Net income 468.1 14.5 42.7

Net loss attributable to noncontrolling interests 5.5 0.3 7.5

EXPENSES
(IN MILLIONS)

R
evenue from the theatrical release (when it is available for sale by
NOTE ON of feature films is recognized at the customer). Under revenue sharing

REVENUE the time of exhibition based on the

Company’s participation in box office
arrangements, including digital and
electronic-sell-through (“EST”) ar-
receipts. Revenue from the sale of rangements, such as download-to-own,
DVDs and Blu-ray discs in the retail download-to-rent, video-on-demand and
market, net of an allowance for esti- subscription video-on-demand, revenue
mated returns and other allowances, is recognized when the Company is en-
Distribution
is recognized on the later of receipt titled to receipts and such receipts
and marketing
by the customer or “street date” are determinable.
23.1%

P. A24
20 2019
 colophon TYPOGRAPHY
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