Viacom Reports Results for March Quarter
-
Adjusted Diluted Earnings Per Share Rose 7% to
$1.16 -
Revenues Totaled
$3.1 Billion , Including Gains in Advertising and Affiliate Fees -
Previously Announced Strategic Realignment Results in
$784 Million Charge; Annual Net Savings Expected to be Approximately$350 Million -
$1.8 Billion Returned to Shareholders through Dividends and Share Repurchases in First Half of Fiscal 2015
Paramount Pictures and Nickelodeon Movies made a global splash with "The SpongeBob Movie: Sponge Out of Water" (Photo: Business Wire)
Fiscal Year 2015 Results |
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(in millions, except per share amounts) |
Quarter Ended |
B/(W) |
Six Months Ended |
B/(W) | |||||||||||||||||
2015 | 2014 | 2015 vs. 2014 | 2015 | 2014 | 2015 vs. 2014 | ||||||||||||||||
Revenues | $ | 3,078 | $ | 3,174 | (3 | )% | $ | 6,422 | $ | 6,371 | 1 | % | |||||||||
Operating income | 38 | 872 | (96 | ) | 973 | 1,832 | (47 | ) | |||||||||||||
Adjusted operating income* | 822 | 872 | (6 | ) | 1,781 | 1,832 | (3 | ) | |||||||||||||
Net earnings/(loss) attributable to |
(53 | ) | 502 | (111 | ) | 447 | 1,049 | (57 | ) | ||||||||||||
Adjusted net earnings attributable to |
467 | 482 | (3 | ) | 1,005 | 1,029 | (2 | ) | |||||||||||||
Diluted earnings/(loss) per share | (0.13 | ) | 1.13 | (112 | ) | 1.09 | 2.33 | (53 | ) | ||||||||||||
Adjusted diluted earnings per share* | $ | 1.16 | $ | 1.08 | 7 | % | $ | 2.44 | $ | 2.29 | 7 | % | |||||||||
* Adjusted measures referenced in this release are detailed in the
Supplemental Disclosures at the end of this release. Results for the
quarter and six months ended |
"With our strategic realignment largely complete,
Revenues |
||||||||||||||||||||||||
(in millions) |
Quarter Ended |
B/(W) |
Six Months Ended |
B/(W) | ||||||||||||||||||||
2015 | 2014 | 2015 vs. 2014 | 2015 | 2014 | 2015 vs. 2014 | |||||||||||||||||||
Media Networks | $ | 2,452 | $ | 2,375 | 3 | % | $ | 5,106 | $ | 4,916 | 4 | % | ||||||||||||
|
659 | 831 | (21 | ) | 1,379 | 1,512 | (9 | ) | ||||||||||||||||
Eliminations | (33 | ) | (32 | ) | NM | (63 | ) | (57 | ) | NM | ||||||||||||||
Total Revenues | $ | 3,078 | $ | 3,174 | (3 | )% | $ | 6,422 | $ | 6,371 | 1 | % | ||||||||||||
NM - Not Meaningful | ||||||||||||||||||||||||
Quarterly revenues declined 3% to
Operating Income/(Loss) |
||||||||||||||||||||||
(in millions) |
Quarter Ended |
B/(W) |
Six Months Ended |
B/(W) | ||||||||||||||||||
2015 | 2014 | 2015 vs. 2014 | 2015 | 2014 | 2015 vs. 2014 | |||||||||||||||||
Media Networks | $ | 903 | $ | 949 | (5 | )% | $ | 2,007 | $ | 2,063 | (3 | )% | ||||||||||
|
1 | 11 | (91 | ) | (59 | ) | (63 | ) | 6 | |||||||||||||
Corporate expenses | (57 | ) | (52 | ) | (10 | ) | (118 | ) | (103 | ) | (15 | ) | ||||||||||
Eliminations | — | (5 | ) | NM | 2 | (2 | ) | NM | ||||||||||||||
Equity-based compensation | (25 | ) | (31 | ) | 19 | (51 | ) | (63 | ) | 19 | ||||||||||||
Adjusted operating income | 822 | 872 | (6 | ) | 1,781 | 1,832 | (3 | ) | ||||||||||||||
Loss on pension settlement | — | — | NM | (24 | ) | — | NM | |||||||||||||||
Restructuring and programming charges | (784 | ) | — | NM | (784 | ) | — | NM | ||||||||||||||
Operating income | $ | 38 | $ | 872 | (96 | )% | $ | 973 | $ | 1,832 | (47 | )% | ||||||||||
NM - Not Meaningful | ||||||||||||||||||||||
Quarterly adjusted operating income was
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)
|
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Quarter Ended |
Six Months Ended |
|||||||||||||||
(in millions, except per share amounts) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | $ | 3,078 | $ | 3,174 | $ | 6,422 | $ | 6,371 | ||||||||
Expenses: | ||||||||||||||||
Operating | 2,056 | 1,538 | 3,679 | 3,012 | ||||||||||||
Selling, general and administrative | 721 | 712 | 1,452 | 1,416 | ||||||||||||
Depreciation and amortization | 57 | 52 | 112 | 111 | ||||||||||||
Restructuring | 206 | — | 206 | — | ||||||||||||
Total expenses | 3,040 | 2,302 | 5,449 | 4,539 | ||||||||||||
Operating income | 38 | 872 | 973 | 1,832 | ||||||||||||
Interest expense, net | (166 | ) | (152 | ) | (326 | ) | (301 | ) | ||||||||
Equity in net earnings of investee companies | 42 | 10 | 75 | 36 | ||||||||||||
Other items, net | (12 | ) | (3 | ) | (30 | ) | (3 | ) | ||||||||
Earnings/(loss) before provision for income taxes | (98 | ) | 727 | 692 | 1,564 | |||||||||||
Provision for income taxes | 50 | (216 | ) | (227 | ) | (496 | ) | |||||||||
Net earnings/(loss) ( |
(48 | ) | 511 | 465 | 1,068 | |||||||||||
Net earnings attributable to noncontrolling interests | (5 | ) | (9 | ) | (18 | ) | (19 | ) | ||||||||
Net earnings/(loss) attributable to |
$ | (53 | ) | $ | 502 | $ | 447 | $ | 1,049 | |||||||
Basic earnings/(loss) per share attributable to |
$ | (0.13 | ) | $ | 1.15 | $ | 1.10 | $ | 2.38 | |||||||
Diluted earnings/(loss) per share attributable to |
$ | (0.13 | ) | $ | 1.13 | $ | 1.09 | $ | 2.33 | |||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 402.5 | 436.1 | 406.6 | 440.5 | ||||||||||||
Diluted | 402.5 | 444.6 | 411.4 | 449.3 | ||||||||||||
Dividends declared per share of Class A and Class B common stock | $ | 0.33 | $ | 0.30 | $ | 0.66 | $ | 0.60 | ||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) |
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March 31, |
|
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(in millions, except par value) | 2015 | 2014 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 306 | $ | 1,000 | |||
Receivables, net | 2,758 | 3,066 | |||||
Inventory, net | 787 | 846 | |||||
Prepaid and other assets | 532 | 340 | |||||
Total current assets | 4,383 | 5,252 | |||||
Property and equipment, net | 949 | 1,016 | |||||
Inventory, net | 3,663 | 3,897 | |||||
Goodwill | 11,429 | 11,535 | |||||
Intangibles, net | 351 | 399 | |||||
Other assets | 982 | 1,018 | |||||
Total assets | $ | 21,757 | $ | 23,117 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 359 | $ | 475 | |||
Accrued expenses | 727 | 969 | |||||
Participants' share and residuals | 835 | 993 | |||||
Program obligations | 704 | 703 | |||||
Deferred revenue | 270 | 259 | |||||
Current portion of debt | 17 | 18 | |||||
Other liabilities | 655 | 518 | |||||
Total current liabilities | 3,567 | 3,935 | |||||
Noncurrent portion of debt | 13,213 | 12,751 | |||||
Participants' share and residuals | 274 | 403 | |||||
Program obligations | 413 | 459 | |||||
Deferred tax liabilities, net | 369 | 266 | |||||
Other liabilities | 1,405 | 1,340 | |||||
Redeemable noncontrolling interest | 194 | 216 | |||||
Commitments and contingencies | |||||||
|
|||||||
Class A common stock, par value |
— | — | |||||
Class B common stock, par value |
— | — | |||||
Additional paid-in capital | 9,961 | 9,772 | |||||
Treasury stock, 398.0 and 377.0 common shares held in treasury, respectively | (20,725 | ) | (19,225 | ) | |||
Retained earnings | 13,638 | 13,465 | |||||
Accumulated other comprehensive loss | (571 | ) | (293 | ) | |||
Total |
2,303 | 3,719 | |||||
Noncontrolling interests | 19 | 28 | |||||
Total equity | 2,322 | 3,747 | |||||
Total liabilities and equity | $ | 21,757 | $ | 23,117 | |||
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
The following tables reconcile our results for the quarter and six
months ended
(in millions, except per share amounts) | |||||||||||||||
Quarter Ended |
|||||||||||||||
Operating Income |
Pre-tax |
Net Earnings/(Loss) |
Diluted EPS | ||||||||||||
Reported results | $ | 38 | $ | (98 | ) | $ | (53 | ) | $ | (0.13 | ) | ||||
Factors Affecting Comparability: | |||||||||||||||
Restructuring and programing charges (1) |
784 | 784 | 520 | 1.29 | |||||||||||
Adjusted results | $ | 822 | $ | 686 | $ | 467 | $ | 1.16 | |||||||
Six Months Ended |
|||||||||||||||
Operating Income | Pre-tax Earnings |
Net Earnings |
Diluted EPS | ||||||||||||
Reported results | $ | 973 | $ | 692 | $ | 447 | $ | 1.09 | |||||||
Factors Affecting Comparability: | |||||||||||||||
Restructuring and programming charges (1) |
784 | 784 | 520 | 1.26 | |||||||||||
Loss on pension settlement (2) |
24 | 24 | 15 | 0.04 | |||||||||||
Discrete tax expense (3) |
— | — | 23 | 0.05 | |||||||||||
Adjusted results | $ | 1,781 | $ | 1,500 | $ | 1,005 | $ | 2.44 | |||||||
Quarter Ended |
|||||||||||||||
Operating Income | Pre-tax Earnings |
Net Earnings |
Diluted EPS | ||||||||||||
Reported results | $ | 872 | $ | 727 | $ | 502 | $ | 1.13 | |||||||
Factors Affecting Comparability: | |||||||||||||||
Discrete tax benefits (4) |
— | — | (20 | ) | (0.05 | ) | |||||||||
Adjusted results | $ | 872 | $ | 727 | $ | 482 | $ | 1.08 | |||||||
Six Months Ended |
|||||||||||||||
Operating Income | Pre-tax Earnings |
Net Earnings |
Diluted EPS | ||||||||||||
Reported results | $ | 1,832 | $ | 1,564 | $ | 1,049 | $ | 2.33 | |||||||
Factors Affecting Comparability: | |||||||||||||||
Discrete tax benefits (4) |
— | — | (20 | ) | (0.04 | ) | |||||||||
Adjusted results | $ | 1,832 | $ | 1,564 | $ | 1,029 | $ | 2.29 | |||||||
(1) The pre-tax charges of |
(2) The pre-tax non-cash charge of |
(3) The discrete tax expense is principally related to a reduction in qualified production activity tax benefits as a result of retroactively reenacted legislation. |
(4) The discrete tax benefits principally relate to the recognition of capital loss carryforward benefits. |
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20150430005229/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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