Viacom Reports Record Profit for Fiscal 2014
-
Full-Year Adjusted Operating Income Rose 5% to Record
$4.13 Billion and Full-Year Adjusted Diluted EPS Increased 15% to Record$5.40 -
$3.9 Billion Returned to Shareholders in Fiscal 2014 Through Share Repurchases and Dividends - Fourth Quarter 2014 Revenues Up 9%, Driven by Strong Affiliate Fees and Theatrical Revenues
-
Adjusted Diluted EPS Increased 10% in the Quarter to
$1.71 ; Adjusted Net Earnings Totaled$729 Million
Revenues for the full fiscal year were
Fiscal Year 2014 Results |
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(in millions, except per share amounts) |
Quarter Ended |
B/(W) |
Year ended |
B/(W) | |||||||||||||||
2014 | 2013 |
2014 vs. |
2014 | 2013 |
2014 vs. |
||||||||||||||
Revenues | $ | 3,991 | $ | 3,652 | 9 | % | $ | 13,783 | $ | 13,794 | — | ||||||||
Operating income | 1,164 | 1,107 | 5 | 4,082 | 3,836 | 6 | % | ||||||||||||
Adjusted operating income* | 1,207 | 1,213 | — | 4,125 | 3,942 | 5 | |||||||||||||
Net earnings from continuing operations attributable to |
732 | 806 | (9 | ) | 2,392 | 2,407 | (1 | ) | |||||||||||
Adjusted net earnings from continuing operations attributable to
|
729 | 739 | (1 | ) | 2,376 | 2,316 | 3 | ||||||||||||
Diluted EPS from continuing operations | 1.72 | 1.69 | 2 | 5.43 | 4.86 | 12 | |||||||||||||
Adjusted diluted EPS from continuing operations* | $ | 1.71 | $ | 1.55 | 10 | % | $ | 5.40 | $ | 4.68 | 15 | % | |||||||
* Adjusted measures referenced in this release are detailed in the Supplemental Disclosures at the end of this release. |
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"This performance allowed us to continue the strong delivery of value
directly to investors. Over the past five years,
Revenues |
|||||||||||||||||||||||
(in millions) |
Quarter Ended |
B/(W) |
Year ended |
B/(W) | |||||||||||||||||||
2014 | 2013 |
2014 vs. |
2014 | 2013 |
2014 vs. |
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Media Networks | $ | 2,664 | $ | 2,460 | 8 | % | $ | 10,171 | $ | 9,656 | 5 | % | |||||||||||
|
1,357 | 1,208 | 12 | 3,725 | 4,282 | (13 | ) | ||||||||||||||||
Eliminations | (30 | ) | (16 | ) | NM | (113 | ) | (144 | ) | NM | |||||||||||||
Total Revenues | $ | 3,991 | $ | 3,652 | 9 | % | $ | 13,783 | $ | 13,794 | — | ||||||||||||
NM - Not Meaningful | |||||||||||||||||||||||
Quarterly revenues increased 9% to
Full-year revenues were
Operating Income |
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(in millions) |
Quarter Ended |
B/(W) |
Year ended |
B/(W) | |||||||||||||||||||
2014 | 2013 |
2014 vs. |
2014 | 2013 |
2014 vs. |
||||||||||||||||||
Media Networks | $ | 1,087 | $ | 1,035 | 5 | % | $ | 4,271 | $ | 4,096 | 4 | % | |||||||||||
|
213 | 291 | (27 | ) | 205 | 234 | (12 | ) | |||||||||||||||
Corporate expenses | (63 | ) | (80 | ) | 21 | (227 | ) | (251 | ) | 10 | |||||||||||||
Equity-based compensation | (29 | ) | (33 | ) | 12 | (122 | ) | (128 | ) | 5 | |||||||||||||
Eliminations | (1 | ) | — | NM | (2 | ) | (9 | ) | NM | ||||||||||||||
Adjusted operating income | 1,207 | 1,213 | — | 4,125 | 3,942 | 5 | |||||||||||||||||
Asset impairment | (43 | ) | (7 | ) | NM | (43 | ) | (7 | ) | NM | |||||||||||||
Restructuring and other charges | — | (99 | ) | NM | — | (99 | ) | NM | |||||||||||||||
Operating income | $ | 1,164 | $ | 1,107 | 5 | % | $ | 4,082 | $ | 3,836 | 6 | % | |||||||||||
NM - Not Meaningful |
Quarterly adjusted operating income was
Full-year adjusted operating income increased 5%, 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 fluctuations in advertising and retail
markets, and economic conditions generally; fluctuations in our results
due to the timing, mix and availability of our motion pictures and other
programming; reduction in the distribution of our content; 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
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Quarter Ended |
Year Ended |
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(in millions, except per share amounts) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | $ | 3,991 | $ | 3,652 | $ | 13,783 | $ | 13,794 | ||||||||||
Expenses: | ||||||||||||||||||
Operating | 1,965 | 1,652 | 6,542 | 6,799 | ||||||||||||||
Selling, general and administrative | 765 | 738 | 2,899 | 2,829 | ||||||||||||||
Depreciation and amortization | 54 | 62 | 217 | 237 | ||||||||||||||
Asset impairment | 43 | 7 | 43 | 7 | ||||||||||||||
Restructuring | — | 86 | — | 86 | ||||||||||||||
Total expenses | 2,827 | 2,545 | 9,701 | 9,958 | ||||||||||||||
Operating income | 1,164 | 1,107 | 4,082 | 3,836 | ||||||||||||||
Interest expense, net | (156 | ) | (130 | ) | (615 | ) | (464 | ) | ||||||||||
Equity in net earnings of investee companies | 11 | (5 | ) | 69 | 41 | |||||||||||||
Loss on extinguishment of debt | — | — | (11 | ) | — | |||||||||||||
Other items, net | (11 | ) | 107 | (11 | ) | 106 | ||||||||||||
Earnings from continuing operations before provision for income taxes | 1,008 | 1,079 | 3,514 | 3,519 | ||||||||||||||
Provision for income taxes | (266 | ) | (267 | ) | (1,050 | ) | (1,070 | ) | ||||||||||
Net earnings from continuing operations | 742 | 812 | 2,464 | 2,449 | ||||||||||||||
Discontinued operations, net of tax | — | (2 | ) | (1 | ) | (12 | ) | |||||||||||
Net earnings ( |
742 | 810 | 2,463 | 2,437 | ||||||||||||||
Net earnings attributable to noncontrolling interests | (10 | ) | (6 | ) | (72 | ) | (42 | ) | ||||||||||
Net earnings attributable to |
$ | 732 | $ | 804 | $ | 2,391 | $ | 2,395 | ||||||||||
Amounts attributable to |
||||||||||||||||||
Net earnings from continuing operations | $ | 732 | $ | 806 | $ | 2,392 | $ | 2,407 | ||||||||||
Discontinued operations, net of tax | — | (2 | ) | (1 | ) | (12 | ) | |||||||||||
Net earnings attributable to |
$ | 732 | $ | 804 | $ | 2,391 | $ | 2,395 | ||||||||||
Basic earnings per share attributable to |
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Continuing operations | $ | 1.74 | $ | 1.72 | $ | 5.54 | $ | 4.95 | ||||||||||
Discontinued operations | — | — | (0.01 | ) | (0.02 | ) | ||||||||||||
Net earnings | $ | 1.74 | $ | 1.72 | $ | 5.53 | $ | 4.93 | ||||||||||
Diluted earnings per share attributable to |
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Continuing operations | $ | 1.72 | $ | 1.69 | $ | 5.43 | $ | 4.86 | ||||||||||
Discontinued operations | — | (0.01 | ) | — | (0.02 | ) | ||||||||||||
Net earnings | $ | 1.72 | $ | 1.68 | $ | 5.43 | $ | 4.84 | ||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||
Basic | 419.6 | 468.7 | 432.1 | 486.2 | ||||||||||||||
Diluted | 426.4 | 478.2 | 440.2 | 494.8 | ||||||||||||||
Dividends declared per share of Class A and Class B common stock | $ | 0.33 | $ | 0.30 | $ | 1.26 | $ | 1.15 | ||||||||||
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(in millions, except par value) |
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2014 | 2013 | |||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 1,000 | $ | 2,403 | ||||||
Receivables, net | 3,066 | 2,987 | ||||||||
Inventory, net | 846 | 770 | ||||||||
Prepaid and other assets | 340 | 566 | ||||||||
Total current assets | 5,252 | 6,726 | ||||||||
Property and equipment, net | 1,016 | 1,040 | ||||||||
Inventory, net | 3,897 | 3,945 | ||||||||
Goodwill | 11,535 | 11,079 | ||||||||
Intangibles, net | 399 | 279 | ||||||||
Other assets | 1,018 | 760 | ||||||||
Total assets | $ | 23,117 | $ | 23,829 | ||||||
LIABILITIES AND EQUITY | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 475 | $ | 316 | ||||||
Accrued expenses | 969 | 1,074 | ||||||||
Participants' share and residuals | 993 | 1,110 | ||||||||
Program obligations | 703 | 576 | ||||||||
Deferred revenue | 259 | 230 | ||||||||
Current portion of debt | 18 | 18 | ||||||||
Other liabilities | 518 | 466 | ||||||||
Total current liabilities | 3,935 | 3,790 | ||||||||
Noncurrent portion of debt | 12,751 | 11,867 | ||||||||
Participants' share and residuals | 403 | 437 | ||||||||
Program obligations | 459 | 527 | ||||||||
Deferred tax liabilities, net | 266 | 649 | ||||||||
Other liabilities | 1,340 | 1,169 | ||||||||
Redeemable noncontrolling interest | 216 | 200 | ||||||||
Commitments and contingencies | ||||||||||
|
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Class A common stock, par value |
— | — | ||||||||
Class B common stock, par value |
— | — | ||||||||
Additional paid-in capital | 9,772 | 9,490 | ||||||||
Treasury stock, 377.0 and 336.3 common shares held in treasury, respectively | (19,225 | ) | (15,825 | ) | ||||||
Retained earnings | 13,465 | 11,629 | ||||||||
Accumulated other comprehensive loss | (293 | ) | (101 | ) | ||||||
Total |
3,719 | 5,193 | ||||||||
Noncontrolling interests | 28 | (3 | ) | |||||||
Total equity | 3,747 | 5,190 | ||||||||
Total liabilities and equity | $ | 23,117 | $ | 23,829 | ||||||
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 |
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Operating |
Pre-tax Earnings |
Net Earnings |
Diluted EPS |
|||||||||||||||
Reported results | $ | 1,164 | $ | 1,008 | $ | 732 | $ | 1.72 | ||||||||||
Factors Affecting Comparability: | ||||||||||||||||||
Asset impairment (1) | 43 | 43 | 26 | 0.06 | ||||||||||||||
Discrete tax benefits (3) | — | — | (29 | ) | (0.07 | ) | ||||||||||||
Adjusted results | $ | 1,207 | $ | 1,051 | $ | 729 | $ | 1.71 | ||||||||||
Year Ended |
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Operating Income |
Pre-tax Earnings |
Net Earnings from Continuing Operations Attributable to |
Diluted EPS from Continuing Operations |
|||||||||||||||
Reported results | $ | 4,082 | $ | 3,514 | $ | 2,392 | $ | 5.43 | ||||||||||
Factors Affecting Comparability: | ||||||||||||||||||
Asset impairment (1) | 43 | 43 | 26 | 0.06 | ||||||||||||||
Loss on extinguishment of debt (2) | — | 11 | 7 | 0.02 | ||||||||||||||
Discrete tax benefits (3) | — | — | (49 | ) | (0.11 | ) | ||||||||||||
Adjusted results | $ | 4,125 | $ | 3,568 | $ | 2,376 | $ | 5.40 | ||||||||||
Quarter Ended |
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Operating Income |
Pre-tax Earnings |
Net Earnings |
Diluted EPS |
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Reported results | $ | 1,107 | $ | 1,079 | $ | 806 | $ | 1.69 | ||||||||||
Factors Affecting Comparability: | ||||||||||||||||||
Restructuring, asset impairment and other charges (4) | 106 | 106 | 74 | 0.15 | ||||||||||||||
Gains on sales of certain investments (5) | — | (111 | ) | (111 | ) | (0.23 | ) | |||||||||||
Discrete tax benefits (3) | — | — | (30 | ) | (0.06 | ) | ||||||||||||
Adjusted results | $ | 1,213 | $ | 1,074 | $ | 739 | $ | 1.55 | ||||||||||
Year Ended |
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Operating Income |
Pre-tax Earnings |
Net Earnings |
Diluted EPS from Continuing Operations |
|||||||||||||||
Reported results | $ | 3,836 | $ | 3,519 | $ | 2,407 | $ | 4.86 | ||||||||||
Factors Affecting Comparability: | ||||||||||||||||||
Restructuring, asset impairment and other charges (4) | 106 | 106 | 74 | 0.15 | ||||||||||||||
Gains on sales of certain investments (5) | — | (111 | ) | (111 | ) | (0.22 | ) | |||||||||||
Discrete tax benefits (3) | — | — | (54 | ) | (0.11 | ) | ||||||||||||
Adjusted results | $ | 3,942 | $ | 3,514 | $ | 2,316 | $ | 4.68 | ||||||||||
(1) Represents a non-cash pre-tax impairment charge of
(2) Represents a pre-tax debt extinguishment loss of
(3) Discrete taxes of
(4) Represents
(5) The tax provision associated with the gains was offset by the reversal of a valuation allowance on capital loss carryforwards.
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Press:
Vice President, Corporate Communications and
Corporate
Affairs
jeremy.zweig@viacom.com
or
Investors:
Senior Vice President, Investor Relations
james.bombassei@viacom.com
or
Director, Investor Relations
pamela.yi@viacom.com
Source:
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