Viacom Reports Results for June Quarter
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The Loud House is TV's top show for kids 2-11, helping to propel Nickelodeon to 52 consecutive weeks as the number one kids' network. (Photo: Business Wire)
Fiscal Year 2016 Results |
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(in millions, except per share amounts) |
Quarter Ended |
B/(W) |
Nine Months Ended |
B/(W) | ||||||||||||||||||||||
2016 | 2015 |
2016 vs. |
2016 | 2015 |
2016 vs. |
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GAAP |
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Revenues | $ | 3,107 | $ | 3,058 | 2 | % | $ | 9,262 | $ | 9,480 | (2 | )% | ||||||||||||||
Operating income | 769 | 1,084 | (29 | ) | 2,194 | 2,057 | 7 | |||||||||||||||||||
Net earnings attributable to |
432 | 591 | (27 | ) | 1,184 | 1,038 | 14 | |||||||||||||||||||
Diluted earnings per share | 1.09 | 1.47 | (26 | ) | 2.98 | 2.54 | 17 | |||||||||||||||||||
Non-GAAP* |
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Adjusted operating income | $ | 769 | $ | 1,084 | (29 | )% | $ | 2,194 | $ | 2,865 | (23 | )% | ||||||||||||||
Adjusted net earnings attributable to |
419 | 591 | (29 | ) | 1,192 | 1,596 | (25 | ) | ||||||||||||||||||
Adjusted diluted earnings per share | 1.05 | 1.47 | (29 | ) | 3.00 | 3.91 | (23 | ) | ||||||||||||||||||
* Non-GAAP measures referenced in this release are detailed in the Supplemental Disclosures at the end of this release.
Revenues |
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(in millions) |
Quarter Ended |
B/(W) |
Nine Months Ended |
B/(W) | ||||||||||||||||||||||||||
2016 | 2015 |
2016 vs. |
2016 | 2015 |
2016 vs. |
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Media Networks | $ | 2,513 | $ | 2,597 | (3 | )% | $ | 7,459 | $ | 7,703 | (3 | )% | ||||||||||||||||||
|
621 | 479 | 30 | 1,888 | 1,858 | 2 | ||||||||||||||||||||||||
Eliminations | (27 | ) | (18 | ) | NM | (85 | ) | (81 | ) | NM | ||||||||||||||||||||
Total Revenues | $ | 3,107 | $ | 3,058 | 2 | % | $ | 9,262 | $ | 9,480 | (2 | )% | ||||||||||||||||||
NM - Not Meaningful | ||||||||||||||||||||||||||||||
Quarterly revenues increased 2% to
Operating Income/(Loss) |
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(in millions) |
Quarter Ended |
B/(W) |
Nine Months Ended |
B/(W) | ||||||||||||||||||||||||||
2016 | 2015 |
2016 vs. |
2016 | 2015 |
2016 vs. |
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Media Networks | $ | 872 | $ | 1,114 | (22 | )% | $ | 2,734 | $ | 3,121 | (12 | )% | ||||||||||||||||||
|
(26 | ) | 48 | NM | (308 | ) | (11 | ) | NM | |||||||||||||||||||||
Corporate expenses | (60 | ) | (58 | ) | (3 | ) | (163 | ) | (176 | ) | 7 | |||||||||||||||||||
Eliminations | 2 | 1 | NM | 2 | 3 | NM | ||||||||||||||||||||||||
Equity-based compensation | (19 | ) | (21 | ) | 10 | (71 | ) | (72 | ) | 1 | ||||||||||||||||||||
Adjusted operating income (Non-GAAP) | 769 | 1,084 | (29 | ) | 2,194 | 2,865 | (23 | ) | ||||||||||||||||||||||
Loss on pension settlement | — | — | — | — | (24 | ) | NM | |||||||||||||||||||||||
Restructuring and programming charges | — | — | — | — | (784 | ) | NM | |||||||||||||||||||||||
Operating income (GAAP) | $ | 769 | $ | 1,084 | (29 | )% | $ | 2,194 | $ | 2,057 | 7 | % | ||||||||||||||||||
NM - Not Meaningful | ||||||||||||||||||||||||||||||
Quarterly operating income declined 29% to
Quarterly 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 effect
of actions taken in the name of the Company's controlling stockholder to
affect control of the Company and the related uncertainty under which
the Company is operating; 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) |
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Quarter Ended |
Nine Months Ended |
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(in millions, except per share amounts) | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Revenues | $ | 3,107 | $ | 3,058 | $ | 9,262 | $ | 9,480 | ||||||||||||||
Expenses: | ||||||||||||||||||||||
Operating | 1,575 | 1,252 | 4,822 | 4,931 | ||||||||||||||||||
Selling, general and administrative | 708 | 666 | 2,080 | 2,118 | ||||||||||||||||||
Depreciation and amortization | 55 | 56 | 166 | 168 | ||||||||||||||||||
Restructuring | — | — | — | 206 | ||||||||||||||||||
Total expenses | 2,338 | 1,974 | 7,068 | 7,423 | ||||||||||||||||||
Operating income | 769 | 1,084 | 2,194 | 2,057 | ||||||||||||||||||
Interest expense, net | (156 | ) | (166 | ) | (466 | ) | (492 | ) | ||||||||||||||
Equity in net earnings of investee companies | 19 | 28 | 85 | 103 | ||||||||||||||||||
Other items, net | 3 | — | (1 | ) | (30 | ) | ||||||||||||||||
Earnings before provision for income taxes | 635 | 946 | 1,812 | 1,638 | ||||||||||||||||||
Provision for income taxes | (195 | ) | (301 | ) | (602 | ) | (528 | ) | ||||||||||||||
Net earnings ( |
440 | 645 | 1,210 | 1,110 | ||||||||||||||||||
Net earnings attributable to noncontrolling interests | (8 | ) | (54 | ) | (26 | ) | (72 | ) | ||||||||||||||
Net earnings attributable to |
$ | 432 | $ | 591 | $ | 1,184 | $ | 1,038 | ||||||||||||||
Basic earnings per share attributable to |
$ | 1.09 | $ | 1.49 | $ | 2.99 | $ | 2.57 | ||||||||||||||
Diluted earnings per share attributable to |
$ | 1.09 | $ | 1.47 | $ | 2.98 | $ | 2.54 | ||||||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||||||
Basic | 396.5 | 397.5 | 396.4 | 403.6 | ||||||||||||||||||
Diluted | 398.0 | 401.2 | 397.9 | 408.0 | ||||||||||||||||||
Dividends declared per share of Class A and Class B common stock | $ | 0.40 | $ | 0.40 | $ | 1.20 | $ | 1.06 | ||||||||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) |
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(in millions, except par value) |
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|
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ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 192 | $ | 506 | |||||||
Receivables, net | 2,973 | 2,807 | |||||||||
Inventory, net | 829 | 786 | |||||||||
Prepaid and other assets | 615 | 479 | |||||||||
Total current assets | 4,609 | 4,578 | |||||||||
Property and equipment, net | 852 | 947 | |||||||||
Inventory, net | 4,106 | 3,616 | |||||||||
|
11,411 | 11,456 | |||||||||
Intangibles, net | 326 | 340 | |||||||||
Other assets | 1,301 | 1,206 | |||||||||
Total assets | $ | 22,605 | $ | 22,143 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 277 | $ | 506 | |||||||
Accrued expenses | 702 | 748 | |||||||||
Participants' share and residuals | 773 | 860 | |||||||||
Program obligations | 634 | 703 | |||||||||
Deferred revenue | 428 | 481 | |||||||||
Current portion of debt | 1,369 | 18 | |||||||||
Other liabilities | 452 | 537 | |||||||||
Total current liabilities | 4,635 | 3,853 | |||||||||
Noncurrent portion of debt | 10,996 | 12,267 | |||||||||
Participants' share and residuals | 380 | 351 | |||||||||
Program obligations | 326 | 356 | |||||||||
Deferred tax liabilities, net | 632 | 150 | |||||||||
Other liabilities | 1,281 | 1,348 | |||||||||
Redeemable noncontrolling interest | 203 | 219 | |||||||||
Commitments and contingencies | |||||||||||
|
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Class A common stock, par value |
— | — | |||||||||
Class B common stock, par value |
— | — | |||||||||
Additional paid-in capital | 10,059 | 10,017 | |||||||||
|
(20,804 | ) | (20,725 | ) | |||||||
Retained earnings | 15,467 | 14,780 | |||||||||
Accumulated other comprehensive loss | (630 | ) | (534 | ) | |||||||
Total |
4,092 | 3,538 | |||||||||
Noncontrolling interests | 60 | 61 | |||||||||
Total equity | 4,152 | 3,599 | |||||||||
Total liabilities and equity | $ | 22,605 | $ | 22,143 | |||||||
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
The following tables reconcile our results for the quarter and nine
months ended
(in millions, except per share amounts) | |||||||||||||||||||||||
Quarter Ended |
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Operating |
Earnings Before |
Provision for |
Net Earnings |
Diluted EPS | |||||||||||||||||||
Reported results (GAAP) | $ | 769 | $ | 635 | $ | 195 | $ | 432 | $ | 1.09 | |||||||||||||
Factors Affecting Comparability: | |||||||||||||||||||||||
Discrete tax benefit (2) | — | — | 13 | (13 | ) | (0.04 | ) | ||||||||||||||||
Adjusted results (Non-GAAP) | $ | 769 | $ | 635 | $ | 208 | $ | 419 | $ | 1.05 | |||||||||||||
Nine Months Ended |
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|
Operating |
Earnings Before |
Provision for |
Net Earnings |
Diluted EPS |
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Reported results (GAAP) | $ | 2,194 | $ | 1,812 | $ | 602 | $ | 1,184 | $ | 2.98 | |||||||||||||
Factors Affecting Comparability: | |||||||||||||||||||||||
Discrete tax expense (3) | — | — | (8 | ) | 8 | 0.02 | |||||||||||||||||
Adjusted results (Non-GAAP) | $ | 2,194 | $ | 1,812 | $ | 594 | $ | 1,192 | $ | 3.00 | |||||||||||||
Nine Months Ended |
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Operating |
Earnings Before |
Provision for |
|
Net Earnings |
Diluted EPS | ||||||||||||||||||
Reported results (GAAP) | $ | 2,057 | $ | 1,638 | $ | 528 | $ | 1,038 | $ | 2.54 | |||||||||||||
Factors Affecting Comparability: | |||||||||||||||||||||||
Restructuring and programming charges (4) | 784 | 784 | 264 | 520 | 1.27 | ||||||||||||||||||
Loss on pension settlement (5) | 24 | 24 | 9 | 15 | 0.04 | ||||||||||||||||||
Discrete tax expense (3) | — | — | (23 | ) | 23 | 0.06 | |||||||||||||||||
Adjusted results (Non-GAAP) | $ | 2,865 | $ | 2,446 | $ | 778 | $ | 1,596 | $ | 3.91 | |||||||||||||
(1) The tax impact has been calculated by applying the tax rates applicable to the adjustments presented.
(2) The net discrete tax benefit was principally related to the release
of tax reserves upon the remeasurement of excess foreign tax credits
associated with the reorganization of certain non-
(3) The net discrete tax expense was principally related to a reduction in qualified production activity tax benefits as a result of retroactively reenacted legislation, partially offset by reserve releases.
(4) The pre-tax charge of
(5) The pre-tax non-cash charge of
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or
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or
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