Viacom Reports Results for June Quarter; Adjusted Earnings Per Share up 4% to a Record $1.47
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Lip Sync Battle continues to be a ratings leader for
Fiscal Year 2015 Results |
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(in millions, except per share amounts) |
Quarter Ended |
B/(W) |
Nine Months Ended |
B/(W) | |||||||||||||||||||||
2015 | 2014 |
2015 vs. |
2015 | 2014 |
2015 vs. |
||||||||||||||||||||
Revenues | $ | 3,058 | $ | 3,421 | (11 | )% | $ | 9,480 | $ | 9,792 | (3 | )% | |||||||||||||
Operating income | 1,084 | 1,086 | — | 2,057 | 2,918 | (30 | ) | ||||||||||||||||||
Adjusted operating income* | 1,084 | 1,086 | — | 2,865 | 2,918 | (2 | ) | ||||||||||||||||||
Net earnings from continuing operations attributable to |
591 | 611 | (3 | ) | 1,038 | 1,660 | (37 | ) | |||||||||||||||||
Adjusted net earnings from continuing operations attributable to
|
591 | 618 | (4 | ) | 1,596 | 1,647 | (3 | ) | |||||||||||||||||
Diluted EPS from continuing operations | 1.47 | 1.40 | 5 | 2.54 | 3.73 | (32 | ) | ||||||||||||||||||
Adjusted diluted EPS from continuing operations* | $ | 1.47 | $ | 1.42 | 4 | % | $ | 3.91 | $ | 3.70 | 6 | % |
* Adjusted measures referenced in this release are detailed in the
Supplemental Disclosures at the end of this release. There were no
adjustments for the quarter ended |
"Underpinning this, we are operating more efficiently than ever,
accelerating content development and delivering programming more quickly
to audiences on all screens. We maintain a strong balance sheet, giving
us significant financial flexibility and we remain committed to resuming
Revenues |
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(in millions) |
Quarter Ended |
B/(W) |
Nine Months Ended |
B/(W) | |||||||||||||||||||||
2015 | 2014 |
2015 vs. |
2015 | 2014 |
2015 vs. |
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Media Networks | $ | 2,597 | $ | 2,591 | — | % | $ | 7,703 | $ | 7,507 | 3 | % | |||||||||||||
|
479 | 856 | (44 | ) | 1,858 | 2,368 | (22 | ) | |||||||||||||||||
Eliminations | (18 | ) | (26 | ) | NM | (81 | ) | (83 | ) | NM | |||||||||||||||
Total Revenues | $ | 3,058 | $ | 3,421 | (11 | )% | $ | 9,480 | $ | 9,792 | (3 | )% | |||||||||||||
NM - Not Meaningful | |||||||||||||||||||||||||
Quarterly revenues declined 11% to
Operating Income/(Loss) |
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(in millions) |
Quarter Ended |
B/(W) |
Nine Months Ended |
B/(W) | |||||||||||||||||||||
2015 | 2014 |
2015 vs. |
2015 | 2014 |
2015 vs. |
||||||||||||||||||||
Media Networks | $ | 1,114 | $ | 1,121 | (1 | )% | $ | 3,121 | $ | 3,184 | (2 | )% | |||||||||||||
|
48 | 55 | (13 | ) | (11 | ) | (8 | ) | (38 | ) | |||||||||||||||
Corporate expenses | (58 | ) | (61 | ) | 5 | (176 | ) | (164 | ) | (7 | ) | ||||||||||||||
Eliminations | 1 | 1 | NM | 3 | (1 | ) | NM | ||||||||||||||||||
Equity-based compensation | (21 | ) | (30 | ) | 30 | (72 | ) | (93 | ) | 23 | |||||||||||||||
Adjusted operating income | 1,084 | 1,086 | — | 2,865 | 2,918 | (2 | ) | ||||||||||||||||||
Loss on pension settlement | — | — | NM | (24 | ) | — | NM | ||||||||||||||||||
Restructuring and programming charges | — | — | NM | (784 | ) | — | NM | ||||||||||||||||||
Operating income | $ | 1,084 | $ | 1,086 | — | % | $ | 2,057 | $ | 2,918 | (30 | )% | |||||||||||||
NM - Not Meaningful | |||||||||||||||||||||||||
Quarterly adjusted operating income was steady at
Quarterly adjusted net earnings attributable to
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 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
|
Nine Months Ended |
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(in millions, except per share amounts) | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
Revenues | $ | 3,058 | $ | 3,421 | $ | 9,480 | $ | 9,792 | |||||||||||
Expenses: | |||||||||||||||||||
Operating | 1,252 | 1,565 | 4,931 | 4,577 | |||||||||||||||
Selling, general and administrative | 666 | 718 | 2,118 | 2,134 | |||||||||||||||
Depreciation and amortization | 56 | 52 | 168 | 163 | |||||||||||||||
Restructuring | — | — | 206 | — | |||||||||||||||
Total expenses | 1,974 | 2,335 | 7,423 | 6,874 | |||||||||||||||
Operating income | 1,084 | 1,086 | 2,057 | 2,918 | |||||||||||||||
Interest expense, net | (166 | ) | (158 | ) | (492 | ) | (459 | ) | |||||||||||
Equity in net earnings of investee companies | 28 | 22 | 103 | 58 | |||||||||||||||
Loss on extinguishment of debt | — | (11 | ) | — | (11 | ) | |||||||||||||
Other items, net | — | 3 | (30 | ) | — | ||||||||||||||
Earnings from continuing operations before provision for income taxes | 946 | 942 | 1,638 | 2,506 | |||||||||||||||
Provision for income taxes | (301 | ) | (288 | ) | (528 | ) | (784 | ) | |||||||||||
Net earnings from continuing operations | 645 | 654 | 1,110 | 1,722 | |||||||||||||||
Discontinued operations, net of tax | — | (1 | ) | — | (1 | ) | |||||||||||||
Net earnings ( |
645 | 653 | 1,110 | 1,721 | |||||||||||||||
Net earnings attributable to noncontrolling interests | (54 | ) | (43 | ) | (72 | ) | (62 | ) | |||||||||||
Net earnings attributable to |
$ | 591 | $ | 610 | $ | 1,038 | $ | 1,659 | |||||||||||
Amounts attributable to |
|||||||||||||||||||
Net earnings from continuing operations | $ | 591 | $ | 611 | $ | 1,038 | $ | 1,660 | |||||||||||
Discontinued operations, net of tax | — | (1 | ) | — | (1 | ) | |||||||||||||
Net earnings attributable to |
$ | 591 | $ | 610 | $ | 1,038 | $ | 1,659 | |||||||||||
Basic earnings per share attributable to |
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Continuing operations | $ | 1.49 | $ | 1.43 | $ | 2.57 | $ | 3.80 | |||||||||||
Discontinued operations | — | — | — | — | |||||||||||||||
Net earnings | $ | 1.49 | $ | 1.43 | $ | 2.57 | $ | 3.80 | |||||||||||
Diluted earnings per share attributable to |
|||||||||||||||||||
Continuing operations | $ | 1.47 | $ | 1.40 | $ | 2.54 | $ | 3.73 | |||||||||||
Discontinued operations | — | — | — | — | |||||||||||||||
Net earnings | $ | 1.47 | $ | 1.40 | $ | 2.54 | $ | 3.73 | |||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||
Basic | 397.5 | 428.0 | 403.6 | 436.4 | |||||||||||||||
Diluted | 401.2 | 435.8 | 408.0 | 444.8 | |||||||||||||||
Dividends declared per share of Class A and Class B common stock | $ | 0.40 | $ | 0.33 | $ | 1.06 | $ | 0.93 | |||||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) |
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(in millions, except par value) |
2015 |
2014 |
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ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 421 | $ | 1,000 | |||||||
Receivables, net | 2,720 | 3,066 | |||||||||
Inventory, net | 841 | 846 | |||||||||
Prepaid and other assets | 433 | 340 | |||||||||
Total current assets | 4,415 | 5,252 | |||||||||
Property and equipment, net | 937 | 1,016 | |||||||||
Inventory, net | 3,890 | 3,897 | |||||||||
Goodwill | 11,472 | 11,535 | |||||||||
Intangibles, net | 356 | 399 | |||||||||
Other assets | 1,025 | 948 | |||||||||
Total assets | $ | 22,095 | $ | 23,047 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 331 | $ | 475 | |||||||
Accrued expenses | 711 | 969 | |||||||||
Participants' share and residuals | 797 | 993 | |||||||||
Program obligations | 664 | 703 | |||||||||
Deferred revenue | 266 | 259 | |||||||||
Current portion of debt | 267 | 18 | |||||||||
Other liabilities | 794 | 518 | |||||||||
Total current liabilities | 3,830 | 3,935 | |||||||||
Noncurrent portion of debt | 12,816 | 12,681 | |||||||||
Participants' share and residuals | 255 | 403 | |||||||||
Program obligations | 362 | 459 | |||||||||
Deferred tax liabilities, net | 365 | 266 | |||||||||
Other liabilities | 1,321 | 1,340 | |||||||||
Redeemable noncontrolling interest | 206 | 216 | |||||||||
Commitments and contingencies | |||||||||||
|
|||||||||||
Class A common stock, par value |
— | — | |||||||||
Class B common stock, par value |
— | — | |||||||||
Additional paid-in capital | 9,981 | 9,772 | |||||||||
Treasury stock, 398.0 and 377.0 common shares held in treasury, respectively | (20,725 | ) | (19,225 | ) | |||||||
Retained earnings | 14,071 | 13,465 | |||||||||
Accumulated other comprehensive loss | (455 | ) | (293 | ) | |||||||
Total |
2,872 | 3,719 | |||||||||
Noncontrolling interests | 68 | 28 | |||||||||
Total equity | 2,940 | 3,747 | |||||||||
Total liabilities and equity | $ | 22,095 | $ | 23,047 | |||||||
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
The following tables reconcile our results for the nine months ended
(in millions, except per share amounts) | |||||||||||||||||||
Nine Months Ended |
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Operating Income |
Pre-tax Earnings |
Net Earnings from |
Diluted EPS from |
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Reported results | $ | 2,057 | $ | 1,638 | $ | 1,038 | $ | 2.54 | |||||||||||
Factors Affecting Comparability: | |||||||||||||||||||
Restructuring and programming charges (1) |
784 | 784 | 520 | 1.27 | |||||||||||||||
Loss on pension settlement (2) | 24 | 24 | 15 | 0.04 | |||||||||||||||
Discrete tax expense (3) | — | — | 23 | 0.06 | |||||||||||||||
Adjusted results | $ | 2,865 | $ | 2,446 | $ | 1,596 | $ | 3.91 | |||||||||||
Quarter Ended |
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Operating Income |
Pre-tax Earnings |
Net Earnings from |
Diluted EPS from |
||||||||||||||||
Reported results | $ | 1,086 | $ | 942 | $ | 611 | $ | 1.40 | |||||||||||
Factors Affecting Comparability: | |||||||||||||||||||
Loss on extinguishment of debt (4) | — | 11 | 7 | 0.02 | |||||||||||||||
Adjusted results | $ | 1,086 | $ | 953 | $ | 618 | $ | 1.42 | |||||||||||
Nine Months Ended |
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Operating Income |
Pre-tax Earnings |
Net Earnings from |
Diluted EPS from |
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Reported results | $ | 2,918 | $ | 2,506 | $ | 1,660 | $ | 3.73 | |||||||||||
Factors Affecting Comparability: | |||||||||||||||||||
Loss on extinguishment of debt (4) | — | 11 | 7 | 0.02 | |||||||||||||||
Discrete tax benefits (5) | — | — | (20 | ) | (0.05 | ) | |||||||||||||
Adjusted results | $ | 2,918 | $ | 2,517 | $ | 1,647 | $ | 3.70 | |||||||||||
(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 pre-tax charge of |
(5) The discrete tax benefits principally relate to the recognition of capital loss carryforward benefits. |
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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
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