Viacom Reports Higher Revenue and Record Earnings Per Share for December Quarter
-
Revenues Increased 5% to
$3.34 Billion , Driven by High Single-Digit Growth in Domestic Affiliate Fees -
Adjusted Diluted EPS Rose 8% to a Record
$1.29 ; Adjusted Net Earnings Totaled$538 Million -
$887 Million Returned to Shareholders through Dividends and Share Repurchases
"Teenage Mutant Ninja Turtles" is a leading television, motion picture and consumer product brand for
Fiscal Year 2015 Results |
||||||||||||
(in millions, except per share amounts) |
Quarter Ended |
B/(W) | ||||||||||
2014 | 2013 | 2014 vs. 2013 | ||||||||||
Revenues | $ | 3,344 | $ | 3,197 | 5 | % | ||||||
Operating income | 935 | 960 | (3 | ) | ||||||||
Adjusted operating income* | 959 | 960 | — | |||||||||
Net earnings attributable to |
500 | 547 | (9 | ) | ||||||||
Adjusted net earnings attributable to |
538 | 547 | (2 | ) | ||||||||
Diluted EPS | 1.20 | 1.20 | — | |||||||||
Adjusted diluted EPS* | $ | 1.29 | $ | 1.20 | 8 | % |
* Adjusted measures referenced in this release are detailed in the
Supplemental Disclosures at the end of this release. Results for the
quarter ended |
"The media business is evolving faster than ever, but our mission
remains unchanged: to continually develop more and better entertainment
programming and deliver it to our engaged audiences on every screen and
on every platform worldwide. To maintain our leadership position, we
will continue to innovate and to manage our business as effectively and
efficiently as possible, embracing change and adopting new technologies
to better measure and monetize our content and meet industry-wide
challenges.
Revenues |
||||||||||||
(in millions) |
Quarter Ended |
B/(W) | ||||||||||
2014 | 2013 | 2014 vs. 2013 | ||||||||||
Media Networks | $ | 2,654 | $ | 2,541 | 4 | % | ||||||
|
720 | 681 | 6 | |||||||||
Eliminations | (30 | ) | (25 | ) | NM | |||||||
Total Revenues | $ | 3,344 | $ | 3,197 | 5 | % | ||||||
NM - Not Meaningful | ||||||||||||
Quarterly revenues rose 5% to
Operating Income (Loss) |
||||||||||||
(in millions) |
Quarter Ended |
B/(W) | ||||||||||
2014 | 2013 | 2014 vs. 2013 | ||||||||||
Media Networks | $ | 1,104 | $ | 1,114 | (1 | )% | ||||||
|
(60 | ) | (74 | ) | 19 | |||||||
Corporate expenses | (61 | ) | (51 | ) | (20 | ) | ||||||
Eliminations | 2 | 3 |
NM |
|||||||||
Equity-based compensation | (26 | ) | (32 | ) | 19 | |||||||
Adjusted operating income | 959 | 960 | — | |||||||||
Loss on pension settlement | (24 | ) | — |
NM |
||||||||
Operating income | $ | 935 | $ | 960 | (3 | )% | ||||||
NM - Not Meaningful | ||||||||||||
Quarterly adjusted operating income of
Quarterly adjusted net earnings 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
measured audience 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 content, audiences,
advertising 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; the potential
for loss of carriage or other reduction in the distribution of our
content; changes in the Federal communications laws and regulations;
evolving cybersecurity and similar risks; 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 |
||||||||
(in millions, except per share amounts) | 2014 | 2013 | ||||||
Revenues | $ | 3,344 | $ | 3,197 | ||||
Expenses: | ||||||||
Operating | 1,623 | 1,474 | ||||||
Selling, general and administrative | 731 | 704 | ||||||
Depreciation and amortization | 55 | 59 | ||||||
Total expenses | 2,409 | 2,237 | ||||||
Operating income | 935 | 960 | ||||||
Interest expense, net | (160 | ) | (149 | ) | ||||
Equity in net earnings of investee companies | 33 | 26 | ||||||
Other items, net | (18 | ) | — | |||||
Earnings before provision for income taxes | 790 | 837 | ||||||
Provision for income taxes | (277 | ) | (280 | ) | ||||
Net earnings ( |
513 | 557 | ||||||
Net earnings attributable to noncontrolling interests | (13 | ) | (10 | ) | ||||
Net earnings attributable to |
$ | 500 | $ | 547 | ||||
Basic earnings per share attributable to |
$ | 1.22 | $ | 1.23 | ||||
Diluted earnings per share attributable to |
$ | 1.20 | $ | 1.20 | ||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 410.6 | 444.9 | ||||||
Diluted | 416.1 | 454.0 | ||||||
Dividends declared per share of Class A and Class B common stock | $ | 0.33 | $ | 0.30 | ||||
CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
(in millions, except par value) |
2014 |
2014 |
||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,185 | $ | 1,000 | ||||
Receivables, net | 3,024 | 3,066 | ||||||
Inventory, net | 870 | 846 | ||||||
Prepaid and other assets | 391 | 340 | ||||||
Total current assets | 5,470 | 5,252 | ||||||
Property and equipment, net | 976 | 1,016 | ||||||
Inventory, net | 4,100 | 3,897 | ||||||
Goodwill | 11,495 | 11,535 | ||||||
Intangibles, net | 372 | 399 | ||||||
Other assets | 1,003 | 1,018 | ||||||
Total assets | $ | 23,416 | $ | 23,117 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 370 | $ | 475 | ||||
Accrued expenses | 710 | 969 | ||||||
Participants' share and residuals | 949 | 993 | ||||||
Program obligations | 673 | 703 | ||||||
Deferred revenue | 252 | 259 | ||||||
Current portion of debt | 617 | 18 | ||||||
Other liabilities | 468 | 518 | ||||||
Total current liabilities | 4,039 | 3,935 | ||||||
Noncurrent portion of debt | 13,146 | 12,751 | ||||||
Participants' share and residuals | 289 | 403 | ||||||
Program obligations | 435 | 459 | ||||||
Deferred tax liabilities, net | 527 | 266 | ||||||
Other liabilities | 1,396 | 1,340 | ||||||
Redeemable noncontrolling interest | 207 | 216 | ||||||
Commitments and contingencies | ||||||||
|
||||||||
Class A common stock, par value |
— | — | ||||||
Class B common stock, par value |
— | — | ||||||
Additional paid-in capital | 9,914 | 9,772 | ||||||
Treasury stock, 387.1 and 377.0 common shares held in treasury, respectively | (19,975 | ) | (19,225 | ) | ||||
Retained earnings | 13,828 | 13,465 | ||||||
Accumulated other comprehensive loss | (415 | ) | (293 | ) | ||||
Total |
3,352 | 3,719 | ||||||
Noncontrolling interests | 25 | 28 | ||||||
Total equity | 3,377 | 3,747 | ||||||
Total liabilities and equity | $ | 23,416 | $ | 23,117 | ||||
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
The following table reconciles our results for the quarter ended
(in millions, except per share amounts) | ||||||||||||||
Quarter Ended |
||||||||||||||
Operating Income | Pre-tax Earnings |
Net Earnings |
Diluted EPS | |||||||||||
Reported Results | $ | 935 | $ | 790 | $ | 500 | $ | 1.20 | ||||||
Factors Affecting Comparability: | ||||||||||||||
Loss on pension settlement (1) |
24 | 24 | 15 | 0.04 | ||||||||||
Discrete tax expense (2) |
— | — | 23 | 0.05 | ||||||||||
Adjusted Results | $ | 959 | $ | 814 | $ | 538 | $ | 1.29 | ||||||
(1) The pre-tax non-cash charge of |
(2) The discrete tax expense is principally related to a reduction in qualified production activity tax benefits as a result of retroactively reenacted legislation. |
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20150129005183/en/
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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