Viacom Reports Results for December Quarter
This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20160209005568/en/
Fiscal Year 2016 Results
(in millions, except per share amounts) |
Quarter Ended |
B/(W) | |||||||||
2015 | 2014 | 2015 vs. 2014 | |||||||||
Revenues | $ | 3,154 | $ | 3,344 | (6 | )% | |||||
Operating income | 839 | 935 | (10 | ) | |||||||
Adjusted operating income* | 839 | 959 | (13 | ) | |||||||
Net earnings attributable to |
449 | 500 | (10 | ) | |||||||
Adjusted net earnings attributable to |
470 | 538 | (13 | ) | |||||||
Diluted EPS | 1.13 | 1.20 | (6 | ) | |||||||
Adjusted diluted EPS* | $ | 1.18 | $ | 1.29 | (9 | )% |
* Adjusted measures referenced in this release are detailed in the Supplemental Disclosures at the end of this release.
"2015 was a challenging year operationally as we redesigned ourselves and adapted to significant industry disruption. Our first fiscal quarter of 2016 reflected these challenges. However, our revitalized organization and our investments in content, technology and strategic innovation are now beginning to bear fruit. Although our industry continues to face headwinds, we expect our positive momentum to continue and build throughout the year."
Revenues
(in millions) |
Quarter Ended |
B/(W) | |||||||||
2015 | 2014 | 2015 vs. 2014 | |||||||||
Media Networks | $ | 2,565 | $ | 2,654 | (3 | )% | |||||
|
612 | 720 | (15 | ) | |||||||
Eliminations | (23 | ) | (30 | ) | NM | ||||||
Total Revenues | $ | 3,154 | $ | 3,344 | (6 | )% | |||||
NM - Not Meaningful |
Quarterly revenues declined 6% to
Operating Income/(Loss)
(in millions) |
Quarter Ended |
B/(W) | ||||||||
2015 | 2014 | 2015 vs. 2014 | ||||||||
Media Networks | $ | 1,057 | $ | 1,104 | (4 | )% | ||||
|
(146 | ) | (60 | ) | (143 | ) | ||||
Corporate expenses | (50 | ) | (61 | ) | 18 | |||||
Eliminations | 4 | 2 | NM | |||||||
Equity-based compensation | (26 | ) | (26 | ) | — | |||||
Adjusted operating income | 839 | 959 | (13 | ) | ||||||
Loss on pension settlement | — | (24 | ) | NM | ||||||
Operating income | $ | 839 | $ | 935 | (10 | )% | ||||
NM - Not Meaningful |
Quarterly adjusted operating income declined 13% to
Quarterly adjusted net earnings attributable to
Debt
At
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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 |
||||||||
(in millions, except per share amounts) | 2015 | 2014 | ||||||
Revenues | $ | 3,154 | $ | 3,344 | ||||
Expenses: | ||||||||
Operating | 1,593 | 1,623 | ||||||
Selling, general and administrative | 667 | 731 | ||||||
Depreciation and amortization | 55 | 55 | ||||||
Total expenses | 2,315 | 2,409 | ||||||
Operating income | 839 | 935 | ||||||
Interest expense, net | (155 | ) | (160 | ) | ||||
Equity in net earnings of investee companies | 31 | 33 | ||||||
Other items, net | 2 | (18 | ) | |||||
Earnings before provision for income taxes | 717 | 790 | ||||||
Provision for income taxes | (256 | ) | (277 | ) | ||||
Net earnings ( |
461 | 513 | ||||||
Net earnings attributable to noncontrolling interests | (12 | ) | (13 | ) | ||||
Net earnings attributable to |
$ | 449 | $ | 500 | ||||
Basic earnings per share attributable to |
$ | 1.13 | $ | 1.22 | ||||
Diluted earnings per share attributable to |
$ | 1.13 | $ | 1.20 | ||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 396.6 | 410.6 | ||||||
Diluted | 398.4 | 416.1 | ||||||
Dividends declared per share of Class A and Class B common stock | $ | 0.40 | $ | 0.33 |
CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
(in millions, except par value) |
2015 |
2015 |
||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 327 | $ | 506 | ||||
Receivables, net | 3,012 | 2,807 | ||||||
Inventory, net | 808 | 786 | ||||||
Prepaid and other assets | 552 | 479 | ||||||
Total current assets | 4,699 | 4,578 | ||||||
Property and equipment, net | 903 | 947 | ||||||
Inventory, net | 3,766 | 3,616 | ||||||
|
11,434 | 11,456 | ||||||
Intangibles, net | 328 | 340 | ||||||
Other assets | 1,232 | 1,206 | ||||||
Total assets | $ | 22,362 | $ | 22,143 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 289 | $ | 506 | ||||
Accrued expenses | 618 | 748 | ||||||
Participants' share and residuals | 913 | 860 | ||||||
Program obligations | 638 | 703 | ||||||
Deferred revenue | 459 | 481 | ||||||
Current portion of debt | 1,073 | 18 | ||||||
Other liabilities | 478 | 537 | ||||||
Total current liabilities | 4,468 | 3,853 | ||||||
Noncurrent portion of debt | 11,494 | 12,267 | ||||||
Participants' share and residuals | 306 | 351 | ||||||
Program obligations | 321 | 356 | ||||||
Deferred tax liabilities, net | 448 | 150 | ||||||
Other liabilities | 1,338 | 1,348 | ||||||
Redeemable noncontrolling interest | 231 | 219 | ||||||
Commitments and contingencies | ||||||||
|
||||||||
Class A common stock, par value |
— | — | ||||||
Class B common stock, par value |
— | — | ||||||
Additional paid-in capital | 10,051 | 10,017 | ||||||
|
(20,825 | ) | (20,725 | ) | ||||
Retained earnings | 15,049 | 14,780 | ||||||
Accumulated other comprehensive loss | (577 | ) | (534 | ) | ||||
Total |
3,698 | 3,538 | ||||||
Noncontrolling interests | 58 | 61 | ||||||
Total equity | 3,756 | 3,599 | ||||||
Total liabilities and equity | $ | 22,362 | $ | 22,143 |
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
The following tables reconcile our results for the quarter ended
(in millions, except per share amounts) | |||||||||||||||
Quarter Ended |
|||||||||||||||
Operating Income | Pre-tax Earnings |
Net Earnings Attributable to |
Diluted EPS | ||||||||||||
Reported results | $ | 839 | $ | 717 | $ | 449 | $ | 1.13 | |||||||
Factors Affecting Comparability: | |||||||||||||||
Discrete tax expense (1) | — | — | 21 | 0.05 | |||||||||||
Adjusted results | $ | 839 | $ | 717 | $ | 470 | $ | 1.18 | |||||||
Quarter Ended |
|||||||||||||||
Operating Income | Pre-tax Earnings |
Net Earnings Attributable to |
Diluted EPS | ||||||||||||
Reported results | $ | 935 | $ | 790 | $ | 500 | $ | 1.20 | |||||||
Factors Affecting Comparability: | |||||||||||||||
Loss on pension settlement (2) | 24 | 24 | 15 | 0.04 | |||||||||||
Discrete tax expense (1) | — | — | 23 | 0.05 | |||||||||||
Adjusted results | $ | 959 | $ | 814 | $ | 538 | $ | 1.29 |
(1) The net discrete tax expense is principally related to a reduction in qualified production activity tax benefits as a result of retroactively reenacted legislation.
(2) The pre-tax non-cash charge of
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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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