Viacom Reports Results for March Quarter
This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20160428005450/en/
AJ and Blaze in BLAZE AND THE MONSTER MACHINES on Nickelodeon, the number one kids' program across all TV last quarter. (Graphic: Business Wire)
Fiscal Year 2016 Results |
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(in millions, except per share amounts) |
Quarter Ended |
B/(W) |
Six Months Ended |
B/(W) | ||||||||||||||
2016 | 2015 |
2016 vs. |
2016 | 2015 |
2016 vs. |
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Revenues | $ | 3,001 | $ | 3,078 |
(3) |
% |
$ | 6,155 | $ | 6,422 |
(4) |
% |
||||||
Operating income | 586 | 38 | NM | 1,425 | 973 | 46 | ||||||||||||
Net earnings/(loss) attributable to |
303 | (53) | NM | 752 | 447 | 68 | ||||||||||||
Diluted earnings/(loss) per share | 0.76 | (0.13) | NM | 1.89 | 1.09 | 73 | ||||||||||||
Non-GAAP* |
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Adjusted operating income | 586 | 822 | (29) | 1,425 | 1,781 | (20) | ||||||||||||
Adjusted net earnings attributable to |
303 | 467 | (35) | 773 | 1,005 | (23) | ||||||||||||
Adjusted diluted earnings per share | $ | 0.76 | $ | 1.16 |
(34) |
% |
$ | 1.94 | $ | 2.44 |
(20) |
% |
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NM - Not Meaningful
* Non-GAAP measures referenced in this release
are detailed in the Supplemental Disclosures at the end of this release.
"We are responding to industry consumption shifts with innovative, thoughtful, and long-term strategic solutions and are generating meaningful results in many important areas, including content creation, data-based audience measurement and distribution innovation. There is much more work to be done, but we see the path to growth ahead and are very optimistic about our future."
Revenues |
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(in millions) |
Quarter Ended |
B/(W) |
Six Months Ended |
B/(W) | ||||||||||||||
2016 | 2015 |
2016 vs. |
2016 | 2015 |
2016 vs. |
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Media Networks | $ | 2,381 | $ | 2,452 |
(3) |
% |
$ | 4,946 | $ | 5,106 |
(3) |
% |
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655 | 659 | (1) | 1,267 | 1,379 | (8) | ||||||||||||
Eliminations | (35) | (33) | NM | (58) | (63) | NM | ||||||||||||
Total Revenues | $ | 3,001 | $ | 3,078 |
(3) |
% |
$ | 6,155 | $ | 6,422 |
|
(4) |
% |
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NM - Not Meaningful
Quarterly revenues declined 3% to
Operating Income/(Loss) |
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(in millions) |
Quarter Ended |
B/(W) |
Six Months Ended |
B/(W) | ||||||||||||||||||
2016 | 2015 |
2016 vs. |
2016 | 2015 |
2016 vs. |
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Media Networks | $ | 805 | $ | 903 |
(11) |
% |
$ | 1,862 | $ | 2,007 |
(7) |
% |
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|
(136 | ) | 1 | NM | (282 | ) | (59 | ) | (378) | |||||||||||||
Corporate expenses | (53 | ) | (57 | ) | 7 | (103 | ) | (118 | ) |
13 |
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Eliminations | (4 | ) | — | NM | — | 2 | NM | |||||||||||||||
Equity-based compensation | (26 | ) | (25 | ) | (4) | (52 | ) | (51 | ) | (2) | ||||||||||||
Adjusted operating income | 586 | 822 | (29) | 1,425 | 1,781 | (20) | ||||||||||||||||
Loss on pension settlement | — | — | — | — | (24 | ) | NM | |||||||||||||||
Restructuring and programming charges | — | (784 | ) | NM | — | (784 | ) | NM | ||||||||||||||
Operating income | $ | 586 | $ | 38 | NM | $ | 1,425 | $ | 973 |
46 |
% |
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NM - Not Meaningful
Quarterly adjusted operating income declined 29% to
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 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
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Quarter Ended |
Six Months Ended |
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(in millions, except per share amounts) | 2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenues | $ | 3,001 | $ | 3,078 | $ | 6,155 | $ | 6,422 | |||||||||
Expenses: | |||||||||||||||||
Operating | 1,654 | 2,056 | 3,247 | 3,679 | |||||||||||||
Selling, general and administrative | 705 | 721 | 1,372 | 1,452 | |||||||||||||
Depreciation and amortization | 56 | 57 | 111 | 112 | |||||||||||||
Restructuring | — | 206 | — | 206 | |||||||||||||
Total expenses | 2,415 | 3,040 | 4,730 | 5,449 | |||||||||||||
Operating income | 586 | 38 | 1,425 | 973 | |||||||||||||
Interest expense, net | (155 | ) | (166 | ) | (310 | ) | (326 | ) | |||||||||
Equity in net earnings of investee companies | 35 | 42 | 66 | 75 | |||||||||||||
Other items, net | (6 | ) | (12 | ) | (4 | ) | (30 | ) | |||||||||
Earnings/(loss) before provision for income taxes | 460 | (98 | ) | 1,177 | 692 | ||||||||||||
Provision for income taxes | (151 | ) | 50 | (407 | ) | (227 | ) | ||||||||||
Net earnings/(loss) ( |
309 | (48 | ) | 770 | 465 | ||||||||||||
Net earnings attributable to noncontrolling interests | (6 | ) | (5 | ) | (18 | ) | (18 | ) | |||||||||
Net earnings/(loss) attributable to |
$ | 303 | $ | (53 | ) | $ | 752 | $ | 447 | ||||||||
Basic earnings/(loss) per share attributable to |
$ | 0.76 | $ | (0.13 | ) | $ | 1.90 | $ | 1.10 | ||||||||
Diluted earnings/(loss) per share attributable to |
$ | 0.76 | $ | (0.13 | ) | $ | 1.89 | $ | 1.09 | ||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||
Basic | 396.1 | 402.5 | 396.4 | 406.6 | |||||||||||||
Diluted | 397.4 | 402.5 | 397.9 | 411.4 | |||||||||||||
Dividends declared per share of Class A and Class B common stock | $ | 0.40 | $ | 0.33 | $ | 0.80 | $ | 0.66 | |||||||||
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(in millions, except par value) |
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ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 480 | $ | 506 | ||||
Receivables, net | 2,784 | 2,807 | ||||||
Inventory, net | 806 | 786 | ||||||
Prepaid and other assets | 664 | 479 | ||||||
Total current assets | 4,734 | 4,578 | ||||||
Property and equipment, net | 879 | 947 | ||||||
Inventory, net | 3,876 | 3,616 | ||||||
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11,436 | 11,456 | ||||||
Intangibles, net | 333 | 340 | ||||||
Other assets | 1,307 | 1,206 | ||||||
Total assets | $ | 22,565 | $ | 22,143 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 343 | $ | 506 | ||||
Accrued expenses | 679 | 748 | ||||||
Participants' share and residuals | 848 | 860 | ||||||
Program obligations | 692 | 703 | ||||||
Deferred revenue | 413 | 481 | ||||||
Current portion of debt | 1,033 | 18 | ||||||
Other liabilities | 462 | 537 | ||||||
Total current liabilities | 4,470 | 3,853 | ||||||
Noncurrent portion of debt | 11,496 | 12,267 | ||||||
Participants' share and residuals | 322 | 351 | ||||||
Program obligations | 288 | 356 | ||||||
Deferred tax liabilities, net | 531 | 150 | ||||||
Other liabilities | 1,290 | 1,348 | ||||||
Redeemable noncontrolling interest | 221 | 219 | ||||||
Commitments and contingencies | ||||||||
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Class A common stock, par value |
— | — | ||||||
Class B common stock, par value |
— | — | ||||||
Additional paid-in capital | 10,073 | 10,017 | ||||||
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(20,825 | ) | (20,725 | ) | ||||
Retained earnings | 15,192 | 14,780 | ||||||
Accumulated other comprehensive loss | (551 | ) | (534 | ) | ||||
Total |
3,889 | 3,538 | ||||||
Noncontrolling interests | 58 | 61 | ||||||
Total equity | 3,947 | 3,599 | ||||||
Total liabilities and equity | $ | 22,565 | $ | 22,143 | ||||
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
The following tables reconcile our results for the six months ended
(in millions, except per share amounts) | ||||||||||||
Six Months Ended |
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Operating Income |
Net Earnings |
Diluted EPS | ||||||||||
Reported results (GAAP) | $ | 1,425 | $ | 752 | $ | 1.89 | ||||||
Factors Affecting Comparability: | ||||||||||||
Discrete tax expense (1) | — | 21 | 0.05 | |||||||||
Adjusted results (Non-GAAP) | $ | 1,425 | $ | 773 | $ | 1.94 | ||||||
Quarter Ended |
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Operating Income |
Net Earnings/(Loss) |
Diluted EPS | ||||||||||
Reported results (GAAP) | $ | 38 | $ | (53 | ) | $ | (0.13 | ) | ||||
Factors Affecting Comparability: | ||||||||||||
Restructuring and programming charges (2) | 784 | 520 | 1.29 | |||||||||
Adjusted results (Non-GAAP) | $ | 822 | $ | 467 | $ | 1.16 | ||||||
Six Months Ended |
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Operating Income |
Net Earnings |
Diluted EPS | ||||||||||
Reported results (GAAP) | $ | 973 | $ | 447 | $ | 1.09 | ||||||
Factors Affecting Comparability: | ||||||||||||
Restructuring and programming charges (2) | 784 | 520 | 1.26 | |||||||||
Loss on pension settlement (3) | 24 | 15 | 0.04 | |||||||||
Discrete tax expense (1) | — | 23 | 0.05 | |||||||||
Adjusted results (Non-GAAP) | $ | 1,781 | $ | 1,005 | $ | 2.44 | ||||||
(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 charge of
(3) The pre-tax non-cash charge of
View source version on businesswire.com: http://www.businesswire.com/news/home/20160428005450/en/
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or
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or
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or
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