Viacom Reports Double-Digit Earnings And EPS Growth For Fourth Quarter 2013
2013 Results |
|||||||||||||||||
Quarter Ended |
Year Ended |
||||||||||||||||
|
B/(W) |
|
B/(W) | ||||||||||||||
2013 vs. |
2013 vs. | ||||||||||||||||
(in millions, except per share amounts) |
2013 |
2012 |
2012 |
2013 |
2012 |
2012 | |||||||||||
Revenues |
$ |
3,652 |
$ |
3,363 |
9 |
% |
$ |
13,794 |
$ |
13,887 |
(1) |
% | |||||
Operating income |
1,107 |
1,050 |
5 |
3,836 |
3,901 |
(2) |
|||||||||||
Adjusted operating income* |
1,213 |
1,050 |
16 |
3,942 |
3,901 |
1 |
|||||||||||
Net earnings from continuing operations attributable to |
806 |
643 |
25 |
2,407 |
2,345 |
3 |
|||||||||||
Adjusted net earnings from continuing operations attributable to |
739 |
626 |
18 |
2,316 |
2,264 |
2 |
|||||||||||
Diluted EPS from continuing operations |
1.69 |
1.24 |
36 |
4.86 |
4.36 |
11 |
|||||||||||
Adjusted diluted EPS from continuing operations* |
$ |
1.55 |
$ |
1.21 |
28 |
% |
$ |
4.68 |
$ |
4.21 |
11 |
% | |||||
* Adjusted measures referenced in this release are detailed in the Supplemental Disclosures at the end of this release. |
(Logo: http://photos.prnewswire.com/prnh/20110811/NY51392LOGO)
Fourth quarter revenues increased 9% to
Revenues for the full fiscal year were
"Our strong cash flow and balance sheet enhance our ability to deliver significant value directly to shareholders through dividends and share repurchases. In fiscal 2013,
Revenues |
|||||||||||||||||
Quarter Ended |
Year Ended |
||||||||||||||||
|
B/(W) |
|
B/(W) | ||||||||||||||
2013 vs. |
2013 vs. | ||||||||||||||||
(in millions) |
2013 |
2012 |
2012 |
2013 |
2012 |
2012 | |||||||||||
Media Networks |
$ |
2,460 |
$ |
2,290 |
7 |
% |
$ |
9,656 |
$ |
9,194 |
5 |
% | |||||
|
1,208 |
1,087 |
11 |
4,282 |
4,820 |
(11) |
|||||||||||
Eliminations |
(16) |
(14) |
NM |
(144) |
(127) |
NM |
|||||||||||
Total revenues |
$ |
3,652 |
$ |
3,363 |
9 |
% |
$ |
13,794 |
$ |
13,887 |
(1) |
% | |||||
NM - Not Meaningful |
Quarterly revenues increased 9% over the prior year to
Full-year revenues were
Operating Income |
|||||||||||||||||
Quarter Ended |
Year Ended |
||||||||||||||||
|
B/(W) |
|
B/(W) | ||||||||||||||
2013 vs. |
2013 vs. | ||||||||||||||||
(in millions) |
2013 |
2012 |
2012 |
2013 |
2012 |
2012 | |||||||||||
Media Networks |
$ |
1,035 |
$ |
933 |
11 |
% |
$ |
4,096 |
$ |
3,889 |
5 |
% | |||||
|
291 |
195 |
49 |
234 |
325 |
(28) |
|||||||||||
Corporate expenses |
(80) |
(48) |
(67) |
(251) |
(192) |
(31) |
|||||||||||
Equity-based compensation |
(33) |
(30) |
(10) |
(128) |
(122) |
(5) |
|||||||||||
Eliminations |
- |
- |
NM |
(9) |
1 |
NM |
|||||||||||
Adjusted operating income |
$ |
1,213 |
$ |
1,050 |
16 |
$ |
3,942 |
$ |
3,901 |
1 |
|||||||
Restructuring and other charges |
(106) |
- |
NM |
(106) |
- |
NM |
|||||||||||
Operating income |
$ |
1,107 |
$ |
1,050 |
5 |
% |
$ |
3,836 |
$ |
3,901 |
(2) |
% | |||||
NM - Not Meaningful |
Quarterly adjusted operating income rose 16% to
Full-year adjusted operating income grew 1%, to
Quarterly adjusted net earnings from continuing operations attributable to
Full-year adjusted net earnings from continuing operations attributable to
Stock Repurchase Program
For the quarter ended
Debt
At
About
For more information about
Cautionary Statement Concerning Forward-Looking Statements
This news release contains both historical and forward-looking statements. All statements that are not statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements reflect our current expectations concerning future results, objectives, plans and goals, and involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause future results, performance or achievements to differ. These risks, uncertainties and other factors include, among others: the public acceptance of our programs, motion pictures and other entertainment content on the various platforms on which they are distributed; technological developments and their effect in our markets and on consumer behavior; competition for audiences and distribution; the impact of piracy; economic conditions generally, and in advertising
and retail markets in particular; fluctuations in our results due to the timing, mix and availability of our motion pictures and other programming; changes in the Federal communications laws and regulations; other domestic and global economic, business, competitive and/or regulatory factors affecting our businesses generally; and other factors described in our news releases and filings with the
| ||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||
(Unaudited) | ||||||||||||
Quarter Ended |
Year Ended | |||||||||||
|
| |||||||||||
(in millions, except per share amounts) |
2013 |
2012 |
2013 |
2012 | ||||||||
Revenues |
$ |
3,652 |
$ |
3,363 |
$ |
13,794 |
$ |
13,887 | ||||
Expenses: |
||||||||||||
Operating |
1,652 |
1,564 |
6,799 |
6,993 | ||||||||
Selling, general and administrative |
738 |
691 |
2,829 |
2,757 | ||||||||
Depreciation and amortization |
62 |
58 |
237 |
236 | ||||||||
Restructuring |
93 |
- |
93 |
- | ||||||||
Total expenses |
2,545 |
2,313 |
9,958 |
9,986 | ||||||||
Operating income |
1,107 |
1,050 |
3,836 |
3,901 | ||||||||
Interest expense, net |
(130) |
(105) |
(464) |
(417) | ||||||||
Equity in net earnings (losses) of investee companies |
(5) |
(13) |
41 |
12 | ||||||||
Loss on extinguishment of debt |
- |
- |
- |
(21) | ||||||||
Other items, net |
107 |
7 |
106 |
(5) | ||||||||
Earnings from continuing operations before provision for income taxes |
1,079 |
939 |
3,519 |
3,470 | ||||||||
Provision for income taxes |
(267) |
(290) |
(1,070) |
(1,085) | ||||||||
Net earnings from continuing operations |
812 |
649 |
2,449 |
2,385 | ||||||||
Discontinued operations, net of tax |
(2) |
7 |
(12) |
(364) | ||||||||
Net earnings ( |
810 |
656 |
2,437 |
2,021 | ||||||||
Net earnings attributable to noncontrolling interests |
(6) |
(6) |
(42) |
(40) | ||||||||
Net earnings attributable to |
$ |
804 |
$ |
650 |
$ |
2,395 |
$ |
1,981 | ||||
Amounts attributable to |
||||||||||||
Net earnings from continuing operations |
$ |
806 |
$ |
643 |
$ |
2,407 |
$ |
2,345 | ||||
Discontinued operations, net of tax |
(2) |
7 |
(12) |
(364) | ||||||||
Net earnings attributable to |
$ |
804 |
$ |
650 |
$ |
2,395 |
$ |
1,981 | ||||
Basic earnings per share attributable to |
||||||||||||
Continuing operations |
$ |
1.72 |
$ |
1.26 |
$ |
4.95 |
$ |
4.42 | ||||
Discontinued operations |
- |
0.01 |
(0.02) |
(0.69) | ||||||||
Net earnings |
$ |
1.72 |
$ |
1.27 |
$ |
4.93 |
$ |
3.73 | ||||
Diluted earnings per share attributable to |
||||||||||||
Continuing operations |
$ |
1.69 |
$ |
1.24 |
$ |
4.86 |
$ |
4.36 | ||||
Discontinued operations |
(0.01) |
0.02 |
(0.02) |
(0.67) | ||||||||
Net earnings |
$ |
1.68 |
$ |
1.26 |
$ |
4.84 |
$ |
3.69 | ||||
Weighted average number of common shares outstanding: |
||||||||||||
Basic |
468.7 |
511.1 |
486.2 |
530.7 | ||||||||
Diluted |
478.2 |
517.9 |
494.8 |
537.5 | ||||||||
Dividends declared per share of Class A and Class B common stock |
$ |
0.30 |
$ |
0.275 |
$ |
1.15 |
$ |
1.05 | ||||
| ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
| ||||||
(in millions, except par value) |
2013 |
2012 | ||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ |
2,403 |
$ |
848 | ||
Receivables, net |
2,987 |
2,533 | ||||
Inventory, net |
770 |
832 | ||||
Deferred tax assets, net |
58 |
68 | ||||
Prepaid and other assets |
508 |
572 | ||||
Total current assets |
6,726 |
4,853 | ||||
Property and equipment, net |
1,040 |
1,068 | ||||
Inventory, net |
3,945 |
4,205 | ||||
Goodwill |
11,079 |
11,045 | ||||
Intangibles, net |
279 |
328 | ||||
Other assets |
760 |
751 | ||||
Total assets |
$ |
23,829 |
$ |
22,250 | ||
LIABILITIES AND EQUITY |
||||||
Current liabilities: |
||||||
Accounts payable |
$ |
316 |
$ |
255 | ||
Accrued expenses |
1,074 |
943 | ||||
Participants' share and residuals |
1,110 |
989 | ||||
Program rights obligations |
576 |
569 | ||||
Deferred revenue |
230 |
230 | ||||
Current portion of debt |
18 |
18 | ||||
Other liabilities |
466 |
826 | ||||
Total current liabilities |
3,790 |
3,830 | ||||
Noncurrent portion of debt |
11,867 |
8,131 | ||||
Participants' share and residuals |
437 |
533 | ||||
Program rights obligations |
527 |
642 | ||||
Deferred tax liabilities, net |
649 |
5 | ||||
Other liabilities |
1,169 |
1,491 | ||||
Redeemable noncontrolling interest |
200 |
179 | ||||
Commitments and contingencies |
||||||
|
||||||
Class A Common stock, par value |
||||||
outstanding, respectively |
- |
- | ||||
Class |
||||||
outstanding, respectively |
- |
1 | ||||
Additional paid-in capital |
9,490 |
8,916 | ||||
Treasury stock, 336.3 and 267.1 common shares held in treasury, respectively |
(15,825) |
(11,025) | ||||
Retained earnings |
11,629 |
9,820 | ||||
Accumulated other comprehensive loss |
(101) |
(264) | ||||
Total Viacom stockholders' equity |
5,193 |
7,448 | ||||
Noncontrolling interests |
(3) |
(9) | ||||
Total equity |
5,190 |
7,439 | ||||
Total liabilities and equity |
$ |
23,829 |
$ |
22,250 | ||
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
The following tables reconcile our results for the quarter and year ended
(in millions, except per share amounts) |
||||||||||||
Quarter Ended | ||||||||||||
| ||||||||||||
Operating Income |
Pre-tax Earnings from Continuing Operations |
Net Earnings from Continuing Operations Attributable to |
Diluted EPS from Continuing Operations | |||||||||
Reported results |
$ |
1,107 |
$ |
1,079 |
$ |
806 |
$ |
1.69 | ||||
Factors Affecting Comparability: |
||||||||||||
Restructuring and other charges(2) |
106 |
106 |
74 |
0.15 | ||||||||
Gains on sales of certain investments(3) |
- |
(111) |
(111) |
(0.23) | ||||||||
Discrete tax benefits(5) |
- |
- |
(30) |
(0.06) | ||||||||
Adjusted results |
$ |
1,213 |
$ |
1,074 |
$ |
739 |
$ |
1.55 | ||||
Quarter Ended | ||||||||||||
| ||||||||||||
Operating Income |
Pre-tax Earnings from Continuing Operations |
Net Earnings from Continuing Operations Attributable to |
Diluted EPS from Continuing Operations | |||||||||
Reported results |
$ |
1,050 |
$ |
939 |
$ |
643 |
$ |
1.24 | ||||
Factors Affecting Comparability: |
||||||||||||
Discrete tax benefits(5) |
- |
- |
(17) |
(0.03) | ||||||||
Adjusted results |
$ |
1,050 |
$ |
939 |
$ |
626 |
$ |
1.21 | ||||
Year Ended | ||||||||||||
| ||||||||||||
Operating Income |
Pre-tax Earnings from Continuing Operations |
Net Earnings from Continuing Operations Attributable to |
Diluted EPS from Continuing Operations | |||||||||
Reported results |
$ |
3,836 |
$ |
3,519 |
$ |
2,407 |
$ |
4.86 | ||||
Factors Affecting Comparability: |
||||||||||||
Restructuring and other charges(2) |
106 |
106 |
74 |
0.15 | ||||||||
Gains on sales of certain investments(3) |
- |
(111) |
(111) |
(0.22) | ||||||||
Discrete tax benefits(5) |
- |
- |
(54) |
(0.11) | ||||||||
Adjusted results |
$ |
3,942 |
$ |
3,514 |
$ |
2,316 |
$ |
4.68 | ||||
Year Ended | ||||||||||||
| ||||||||||||
Operating Income |
Pre-tax Earnings from Continuing Operations |
Net Earnings from Continuing Operations Attributable to |
Diluted EPS from Continuing Operations | |||||||||
Reported results |
$ |
3,901 |
$ |
3,470 |
$ |
2,345 |
$ |
4.36 | ||||
Factors Affecting Comparability: |
||||||||||||
Extinguishment of debt(4) |
- |
21 |
13 |
0.02 | ||||||||
Discrete tax benefits(5) |
- |
- |
(94) |
(0.17) | ||||||||
Adjusted results |
$ |
3,901 |
$ |
3,491 |
$ |
2,264 |
$ |
4.21 | ||||
(1) |
The tax impact has been calculated using the rates applicable to these adjustments. |
(2) |
Adjusted results for the quarter and year ended |
(3) |
The tax provision associated with the gains was offset by the reversal of a valuation allowance on capital loss carryforwards. |
(4) |
Adjusted results for the year ended |
(5) |
Adjusted results for the quarter and year ended |
SOURCE
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