Viacom Reports Fourth Quarter and Full Year Financial Results
-
Full-Year Adjusted Diluted EPS Increased to
All-Time High of$5.44 -
Media Networks Revenues Rose to Full Year Record of
$10.49 Billion -
Fourth Quarter Revenues Totaled
$3.79 Billion - Media Networks Revenues Rose 5% in the Quarter, with Affiliate Fees Up 10%
-
$2.1 Billion Returned to Shareholders in Fiscal 2015 Through Share Repurchases and Dividends
This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20151112005336/en/
Viacom's Media Networks delivered record revenues in fiscal 2015, driven by hits like
Fiscal Year 2015 Results |
|||||||||||||||||||||||
(in millions, except per share amounts) |
Quarter Ended |
B/(W) |
Year Ended |
B/(W) | |||||||||||||||||||
2015 | 2014 |
2015 vs. |
2015 | 2014 |
2015 vs. |
||||||||||||||||||
Revenues | $ | 3,788 | $ | 3,991 | (5 | )% | $ | 13,268 | $ | 13,783 | (4 | )% | |||||||||||
Operating income | 1,055 | 1,164 | (9 | ) | 3,112 | 4,082 | (24 | ) | |||||||||||||||
Adjusted operating income* | 1,055 | 1,207 | (13 | ) | 3,920 | 4,125 | (5 | ) | |||||||||||||||
Net earnings from continuing operations attributable to |
884 | 732 | 21 | 1,922 | 2,392 | (20 | ) | ||||||||||||||||
Adjusted net earnings from continuing operations attributable to
|
614 | 729 | (16 | ) | 2,210 | 2,376 | (7 | ) | |||||||||||||||
Diluted EPS from continuing operations | 2.21 | 1.72 | 28 | 4.73 | 5.43 | (13 | ) | ||||||||||||||||
Adjusted diluted EPS from continuing operations* | $ | 1.54 | $ | 1.71 | (10 | )% | $ | 5.44 | $ | 5.40 | 1 | % | |||||||||||
* Adjusted measures referenced in this release are detailed in the Supplemental Disclosures at the end of this release. |
"
Revenues |
|||||||||||||||||||||||
(in millions) |
Quarter Ended |
B/(W) |
Year Ended |
B/(W) | |||||||||||||||||||
2015 | 2014 |
2015 vs. |
2015 | 2014 |
2015 vs. |
||||||||||||||||||
Media Networks | $ | 2,787 | $ | 2,664 | 5 | % | $ | 10,490 | $ | 10,171 | 3 | % | |||||||||||
|
1,025 | 1,357 | (24) | 2,883 | 3,725 | (23) | |||||||||||||||||
Eliminations | (24 | ) | (30 | ) | NM | (105 | ) | (113 | ) | NM | |||||||||||||
Total Revenues |
$ | 3,788 | $ | 3,991 | (5 | )% | $ | 13,268 | $ | 13,783 | (4 | )% | |||||||||||
NM - Not Meaningful | |||||||||||||||||||||||
Quarterly revenues declined 5% to
Full-year revenues were
Operating Income |
|||||||||||||||||||||||
(in millions) |
Quarter Ended |
B/(W) |
Year Ended |
B/(W) | |||||||||||||||||||
2015 | 2014 |
2015 vs. |
2015 | 2014 |
2015 vs. |
||||||||||||||||||
Media Networks | $ | 1,022 | $ | 1,087 | (6 | )% | $ | 4,143 | $ | 4,271 | (3 | )% | |||||||||||
|
122 | 213 | (43 | ) | 111 | 205 | (46 | ) | |||||||||||||||
Corporate expenses | (59 | ) | (63 | ) | 6 | (235 | ) | (227 | ) | (4 | ) | ||||||||||||
Eliminations | (1 | ) | (1 | ) | NM | 2 | (2 | ) | NM | ||||||||||||||
Equity-based compensation | (29 | ) | (29 | ) | — | (101 | ) | (122 | ) | 17 | |||||||||||||
Adjusted operating income | 1,055 | 1,207 | (13 | ) | 3,920 | 4,125 | (5 | ) | |||||||||||||||
Asset impairment | — | (43 | ) | NM | — | (43 | ) | NM | |||||||||||||||
Restructuring and programming charges | — | — | — | (784 | ) | — | NM | ||||||||||||||||
Loss on pension settlement | — | — | — | (24 | ) | — | NM | ||||||||||||||||
Operating income | $ | 1,055 | $ | 1,164 | (9 | )% | $ | 3,112 | $ | 4,082 | (24 | )% | |||||||||||
NM - Not Meaningful | |||||||||||||||||||||||
Quarterly adjusted operating income was
Full-year adjusted operating income declined 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 fiscal year 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 brands, programs, motion pictures and other
entertainment content on the various platforms on which they are
distributed; the impact of inadequate audience measurement on our
program ratings, advertising revenues and affiliate fees; 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, number 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 or other 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 |
Year Ended |
||||||||||||||||
(in millions, except per share amounts) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues | $ | 3,788 | $ | 3,991 | $ | 13,268 | $ | 13,783 | |||||||||
Expenses: | |||||||||||||||||
Operating | 1,937 | 1,965 | 6,868 | 6,542 | |||||||||||||
Selling, general and administrative | 742 | 765 | 2,860 | 2,899 | |||||||||||||
Depreciation and amortization | 54 | 54 | 222 | 217 | |||||||||||||
Asset impairment | — | 43 | — | 43 | |||||||||||||
Restructuring | — | — | 206 | — | |||||||||||||
Total expenses | 2,733 | 2,827 | 10,156 | 9,701 | |||||||||||||
Operating income | 1,055 | 1,164 | 3,112 | 4,082 | |||||||||||||
Interest expense, net | (165 | ) | (156 | ) | (657 | ) | (615 | ) | |||||||||
Equity in net earnings of investee companies | (1 | ) | 11 | 102 | 69 | ||||||||||||
Loss on extinguishment of debt | (18 | ) | — | (18 | ) | (11 | ) | ||||||||||
Other items, net | (6 | ) | (11 | ) | (36 | ) | (11 | ) | |||||||||
Earnings from continuing operations before provision for income taxes | 865 | 1,008 | 2,503 | 3,514 | |||||||||||||
Provision for income taxes | 27 | (266 | ) | (501 | ) | (1,050 | ) | ||||||||||
Net earnings from continuing operations | 892 | 742 | 2,002 | 2,464 | |||||||||||||
Discontinued operations, net of tax | — | — | — | (1 | ) | ||||||||||||
Net earnings ( |
892 | 742 | 2,002 | 2,463 | |||||||||||||
Net earnings attributable to noncontrolling interests | (8 | ) | (10 | ) | (80 | ) | (72 | ) | |||||||||
Net earnings attributable to |
$ | 884 | $ | 732 | $ | 1,922 | $ | 2,391 | |||||||||
Amounts attributable to |
|||||||||||||||||
Net earnings from continuing operations | $ | 884 | $ | 732 | $ | 1,922 | $ | 2,392 | |||||||||
Discontinued operations, net of tax | — | — | — | (1 | ) | ||||||||||||
Net earnings attributable to |
$ | 884 | $ | 732 | $ | 1,922 | $ | 2,391 | |||||||||
Basic earnings per share attributable to |
|||||||||||||||||
Continuing operations | $ | 2.22 | $ | 1.74 | $ | 4.78 | $ | 5.54 | |||||||||
Discontinued operations | — | — | — | (0.01 | ) | ||||||||||||
Net earnings | $ | 2.22 | $ | 1.74 | $ | 4.78 | $ | 5.53 | |||||||||
Diluted earnings per share attributable to |
|||||||||||||||||
Continuing operations | $ | 2.21 | $ | 1.72 | $ | 4.73 | $ | 5.43 | |||||||||
Discontinued operations | — | — | — | — | |||||||||||||
Net earnings | $ | 2.21 | $ | 1.72 | $ | 4.73 | $ | 5.43 | |||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||
Basic | 398.0 | 419.6 | 402.2 | 432.1 | |||||||||||||
Diluted | 399.9 | 426.4 | 406.0 | 440.2 | |||||||||||||
Dividends declared per share of Class A and Class B common stock | $ | 0.40 | $ | 0.33 | $ | 1.46 | $ | 1.26 | |||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||||
(in millions, except par value) |
|
||||||||
2015 | 2014 | ||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 506 | $ | 1,000 | |||||
Receivables, net | 2,807 | 3,066 | |||||||
Inventory, net | 786 | 846 | |||||||
Prepaid and other assets | 559 | 340 | |||||||
Total current assets | 4,658 | 5,252 | |||||||
Property and equipment, net | 947 | 1,016 | |||||||
Inventory, net | 3,616 | 3,897 | |||||||
|
11,456 | 11,535 | |||||||
Intangibles, net | 340 | 399 | |||||||
Other assets | 1,200 | 948 | |||||||
Total assets | $ | 22,217 | $ | 23,047 | |||||
LIABILITIES AND EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 506 | $ | 475 | |||||
Accrued expenses | 748 | 969 | |||||||
Participants' share and residuals | 860 | 993 | |||||||
Program obligations | 703 | 703 | |||||||
Deferred revenue | 481 | 350 | |||||||
Current portion of debt | 18 | 18 | |||||||
Other liabilities | 538 | 427 | |||||||
Total current liabilities | 3,854 | 3,935 | |||||||
Noncurrent portion of debt | 12,267 | 12,681 | |||||||
Participants' share and residuals | 351 | 403 | |||||||
Program obligations | 356 | 459 | |||||||
Deferred tax liabilities, net | 223 | 266 | |||||||
Other liabilities | 1,348 | 1,340 | |||||||
Redeemable noncontrolling interest | 219 | 216 | |||||||
Commitments and contingencies | |||||||||
|
|||||||||
Class A common stock, par value |
— | — | |||||||
Class B common stock, par value |
— | — | |||||||
Additional paid-in capital | 10,017 | 9,772 | |||||||
|
(20,725 | ) | (19,225 | ) | |||||
Retained earnings | 14,780 | 13,465 | |||||||
Accumulated other comprehensive loss | (534 | ) | (293 | ) | |||||
Total |
3,538 | 3,719 | |||||||
Noncontrolling interests | 61 | 28 | |||||||
Total equity | 3,599 | 3,747 | |||||||
Total liabilities and equity | $ | 22,217 | $ | 23,047 | |||||
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 |
Net Earnings from Continuing Operations Attributable to |
Diluted EPS from Continuing Operations |
||||||||||||||
Reported results | $ | 1,055 | $ | 865 | $ | 884 | $ | 2.21 | |||||||||
Factors Affecting Comparability: | |||||||||||||||||
Loss on extinguishment of debt (1) | — | 18 | 11 | 0.03 | |||||||||||||
Discrete tax benefits (2) | — | — | (281 | ) | (0.70 | ) | |||||||||||
Adjusted results | $ | 1,055 | $ | 883 | $ | 614 | $ | 1.54 | |||||||||
Year Ended |
|||||||||||||||||
Operating Income |
Pre-tax Earnings |
Net Earnings from Continuing Operations Attributable to |
Diluted EPS from Continuing Operations |
||||||||||||||
Reported results | $ | 3,112 | $ | 2,503 | $ | 1,922 | $ | 4.73 | |||||||||
Factors Affecting Comparability: | |||||||||||||||||
Restructuring and programming charges (3) | 784 | 784 | 520 | 1.28 | |||||||||||||
Loss on pension settlement (4) | 24 | 24 | 15 | 0.04 | |||||||||||||
Loss on extinguishment of debt (1) | — | 18 | 11 | 0.03 | |||||||||||||
Discrete tax benefits (2) | — | — | (258 | ) | (0.64 | ) | |||||||||||
Adjusted results | $ | 3,920 | $ | 3,329 | $ | 2,210 | $ | 5.44 | |||||||||
Quarter Ended |
|||||||||||||||||
Operating Income |
Pre-tax Earnings |
Net Earnings from Continuing Operations Attributable to |
Diluted EPS from Continuing Operations |
||||||||||||||
Reported results | $ | 1,164 | $ | 1,008 | $ | 732 | $ | 1.72 | |||||||||
Factors Affecting Comparability: | |||||||||||||||||
Asset impairment (5) | 43 | 43 | 26 | 0.06 | |||||||||||||
Discrete tax benefits (6) | — | — | (29 | ) | (0.07 | ) | |||||||||||
Adjusted results | $ | 1,207 | $ | 1,051 | $ | 729 | $ | 1.71 | |||||||||
Year Ended |
|||||||||||||||||
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 (5) | 43 | 43 | 26 | 0.06 | |||||||||||||
Loss on extinguishment of debt (7) | — | 11 | 7 | 0.02 | |||||||||||||
Discrete tax benefits (6) | — | — | (49 | ) | (0.11 | ) | |||||||||||
Adjusted results | $ | 4,125 | $ | 3,568 | $ | 2,376 | $ | 5.40 | |||||||||
(1) The pre-tax charge of
(2) The net discrete tax benefits are principally related to excess foreign tax credits attributable to a taxable repatriation of non-U.S. earnings and the release of tax reserves with respect to certain effectively settled tax positions.
(3) The pre-tax charges of
(4) The pre-tax non-cash charge of
(5) The non-cash pre-tax impairment charge of
(6) The net discrete tax benefits in the quarter and year ended
(7) The pre-tax charge of
View source version on businesswire.com: http://www.businesswire.com/news/home/20151112005336/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:
News Provided by Acquire Media