Viacom Reports Results For Third Quarter 2012
Fiscal Year 2012 Results | |||||||||||||||||||
Quarter Ended |
Nine Months Ended |
||||||||||||||||||
|
B/(W) |
|
B/(W) | ||||||||||||||||
2012 vs. |
2012 vs. | ||||||||||||||||||
(in millions, except per share amounts) |
2012 |
2011 |
2011 |
2012 |
2011 |
2011 | |||||||||||||
Revenues |
$ |
3,241 |
$ |
3,766 |
(14) |
% |
$ |
10,524 |
$ |
10,861 |
(3) |
% | |||||||
Operating income |
903 |
981 |
(8) |
2,851 |
2,781 |
3 |
|||||||||||||
Adjusted operating income* |
903 |
995 |
(9) |
2,851 |
2,795 |
2 |
|||||||||||||
Net earnings from continuing operations attributable to |
523 |
574 |
(9) |
1,702 |
1,570 |
8 |
|||||||||||||
Adjusted net earnings from continuing operations attributable to |
512 |
583 |
(12) |
1,638 |
1,633 |
- |
|||||||||||||
Diluted EPS from continuing operations |
0.99 |
0.97 |
2 |
3.13 |
2.62 |
19 |
|||||||||||||
Adjusted diluted EPS from continuing operations* |
$ |
0.97 |
$ |
0.99 |
(2) |
% |
$ |
3.01 |
$ |
2.72 |
11 |
% | |||||||
* Adjusted measures referenced in this release are detailed in the Supplemental Disclosures at the end of this release. |
(Logo: http://photos.prnewswire.com/prnh/20110811/NY51392LOGO )
The comparison with 2011 was impacted by the fact that
"Looking forward, we will continue to operate efficiently to maintain our competitive and creative edge, and over time, return significant value to shareholders."
Revenues | |||||||||||||||||||
Quarter Ended |
Nine Months Ended |
||||||||||||||||||
|
B/(W) |
|
B/(W) | ||||||||||||||||
2012 vs. |
2012 vs. | ||||||||||||||||||
(in millions) |
2012 |
2011 |
2011 |
2012 |
2011 |
2011 | |||||||||||||
Media Networks |
$ |
2,266 |
$ |
2,391 |
(5) |
% |
$ |
6,904 |
$ |
6,853 |
1 |
% | |||||||
|
1,006 |
1,407 |
(29) |
3,733 |
4,130 |
(10) |
|||||||||||||
Eliminations |
(31) |
(32) |
NM |
(113) |
(122) |
NM |
|||||||||||||
Total revenues |
$ |
3,241 |
$ |
3,766 |
(14) |
% |
$ |
10,524 |
$ |
10,861 |
(3) |
% | |||||||
NM - Not Meaningful |
Quarterly revenues of
Operating Income |
|||||||||||||||||||
Quarter Ended |
Nine Months Ended |
||||||||||||||||||
|
B/(W) |
|
B/(W) | ||||||||||||||||
2012 vs. |
2012 vs. | ||||||||||||||||||
(in millions) |
2012 |
2011 |
2011 |
2012 |
2011 |
2011 | |||||||||||||
Media Networks |
$ |
934 |
$ |
1,033 |
(10) |
% |
$ |
2,956 |
$ |
2,890 |
2 |
% | |||||||
|
46 |
49 |
(6) |
130 |
156 |
(17) |
|||||||||||||
Corporate expenses |
(43) |
(58) |
26 |
(144) |
(160) |
10 |
|||||||||||||
Equity-based compensation |
(35) |
(30) |
(17) |
(92) |
(93) |
1 |
|||||||||||||
Eliminations |
1 |
1 |
NM |
1 |
2 |
NM |
|||||||||||||
Adjusted operating income |
$ |
903 |
$ |
995 |
(9) |
$ |
2,851 |
$ |
2,795 |
2 |
|||||||||
Restructuring |
- |
(14) |
NM |
- |
(14) |
NM |
|||||||||||||
Operating income |
$ |
903 |
$ |
981 |
(8) |
% |
$ |
2,851 |
$ |
2,781 |
3 |
% | |||||||
NM - Not Meaningful |
Adjusted operating income decreased 9% to
Quarterly adjusted net earnings from continuing operations attributable to
Stock Repurchase Program
For the quarter 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 the Company's 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 actual results, performance or achievements to differ. These risks, uncertainties and other factors include, among others: the public acceptance of the Company's programs, motion pictures and other entertainment content on the various platforms on which they are distributed; technological developments and their effect in the Company's markets and on consumer behavior; competition for audiences and distribution; the impact of piracy; economic conditions
generally, and in advertising and retail markets in particular; fluctuations in the Company's results due to the timing, mix and availability of the Company's motion pictures; changes in the Federal communications laws and regulations; other domestic and global economic, business, competitive and/or regulatory factors affecting the Company's businesses generally; and other factors described in the Company's news releases and filings with the
| ||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||
(Unaudited) | ||||||||||||
Quarter Ended |
Nine Months Ended | |||||||||||
|
| |||||||||||
(in millions, except per share amounts) |
2012 |
2011 |
2012 |
2011 | ||||||||
Revenues |
$ |
3,241 |
$ |
3,766 |
$ |
10,524 |
$ |
10,861 | ||||
Expenses: |
||||||||||||
Operating |
1,599 |
1,945 |
5,429 |
5,683 | ||||||||
Selling, general and administrative |
682 |
761 |
2,066 |
2,180 | ||||||||
Depreciation and amortization |
57 |
65 |
178 |
203 | ||||||||
Restructuring |
- |
14 |
- |
14 | ||||||||
Total expenses |
2,338 |
2,785 |
7,673 |
8,080 | ||||||||
Operating income |
903 |
981 |
2,851 |
2,781 | ||||||||
Interest expense, net |
(104) |
(104) |
(312) |
(310) | ||||||||
Equity in net earnings of investee companies |
10 |
12 |
25 |
51 | ||||||||
Loss on extinguishment of debt |
- |
- |
(21) |
(87) | ||||||||
Other items, net |
(7) |
10 |
(12) |
3 | ||||||||
Earnings from continuing operations before provision for income taxes |
802 |
899 |
2,531 |
2,438 | ||||||||
Provision for income taxes |
(266) |
(310) |
(795) |
(838) | ||||||||
Net earnings from continuing operations |
536 |
589 |
1,736 |
1,600 | ||||||||
Discontinued operations, net of tax |
11 |
- |
(371) |
(10) | ||||||||
Net earnings ( |
547 |
589 |
1,365 |
1,590 | ||||||||
Net earnings attributable to noncontrolling interests |
(13) |
(15) |
(34) |
(30) | ||||||||
Net earnings attributable to |
$ |
534 |
$ |
574 |
$ |
1,331 |
$ |
1,560 | ||||
Amounts attributable to |
||||||||||||
Net earnings from continuing operations |
$ |
523 |
$ |
574 |
$ |
1,702 |
$ |
1,570 | ||||
Discontinued operations, net of tax |
11 |
- |
(371) |
(10) | ||||||||
Net earnings attributable to |
$ |
534 |
$ |
574 |
$ |
1,331 |
$ |
1,560 | ||||
Basic earnings per share attributable to |
||||||||||||
Continuing operations |
$ |
1.00 |
$ |
0.99 |
$ |
3.17 |
$ |
2.65 | ||||
Discontinued operations |
$ |
0.02 |
$ |
- |
$ |
(0.69) |
$ |
(0.02) | ||||
Net earnings |
$ |
1.02 |
$ |
0.99 |
$ |
2.48 |
$ |
2.63 | ||||
Diluted earnings per share attributable to |
||||||||||||
Continuing operations |
$ |
0.99 |
$ |
0.97 |
$ |
3.13 |
$ |
2.62 | ||||
Discontinued operations |
$ |
0.02 |
$ |
- |
$ |
(0.68) |
$ |
(0.02) | ||||
Net earnings |
$ |
1.01 |
$ |
0.97 |
$ |
2.45 |
$ |
2.60 | ||||
Weighted average number of common shares outstanding: |
||||||||||||
Basic |
523.7 |
582.7 |
537.3 |
593.5 | ||||||||
Diluted |
530.4 |
591.6 |
544.1 |
600.2 | ||||||||
Dividends declared per share of Class A and Class B common stock |
$ |
0.275 |
$ |
0.25 |
$ |
0.775 |
$ |
0.55 | ||||
| ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
|
| |||||
(in millions, except par value) |
2012 |
2011 | ||||
ASSETS |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ |
774 |
$ |
1,021 | ||
Receivables, net |
2,582 |
2,732 | ||||
Inventory, net |
817 |
828 | ||||
Deferred tax assets, net |
47 |
41 | ||||
Prepaid and other assets |
291 |
639 | ||||
Total current assets |
4,511 |
5,261 | ||||
Property and equipment, net |
1,045 |
1,057 | ||||
Inventory, net |
4,247 |
4,239 | ||||
Goodwill |
11,031 |
11,064 | ||||
Intangibles, net |
339 |
392 | ||||
Deferred tax assets, net |
73 |
- | ||||
Other assets |
712 |
788 | ||||
Total assets |
$ |
21,958 |
$ |
22,801 | ||
LIABILITIES AND EQUITY |
||||||
Current liabilities: |
||||||
Accounts payable |
$ |
295 |
$ |
427 | ||
Accrued expenses |
894 |
1,152 | ||||
Participants' share and residuals |
1,038 |
1,158 | ||||
Program rights obligations |
491 |
475 | ||||
Deferred revenue |
236 |
187 | ||||
Current portion of debt |
17 |
23 | ||||
Other liabilities |
745 |
520 | ||||
Total current liabilities |
3,716 |
3,942 | ||||
Noncurrent portion of debt |
8,147 |
7,342 | ||||
Participants' share and residuals |
434 |
487 | ||||
Program rights obligations |
650 |
771 | ||||
Deferred tax liabilities, net |
- |
123 | ||||
Other liabilities |
1,393 |
1,351 | ||||
Redeemable noncontrolling interest |
145 |
152 | ||||
Commitments and contingencies |
||||||
|
||||||
Class A Common stock, par value |
||||||
outstanding, respectively |
- |
- | ||||
Class |
||||||
outstanding, respectively |
1 |
1 | ||||
Additional paid-in capital |
8,698 |
8,614 | ||||
Treasury stock, 252.9 and 207.2 common shares held in treasury, respectively |
(10,325) |
(8,225) | ||||
Retained earnings |
9,336 |
8,418 | ||||
Accumulated other comprehensive loss |
(232) |
(164) | ||||
Total Viacom stockholders' equity |
7,478 |
8,644 | ||||
Noncontrolling interests |
(5) |
(11) | ||||
Total equity |
7,473 |
8,633 | ||||
Total liabilities and equity |
$ |
21,958 |
$ |
22,801 | ||
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
The following tables reconcile the Company's results for the quarter and nine months ended
(in millions, except per share amounts) | |||||||||||
Quarter Ended | |||||||||||
| |||||||||||
Diluted EPS | |||||||||||
Pre-tax Earnings |
Net Earnings from |
from | |||||||||
Operating |
from Continuing |
Continuing Operations |
Continuing | ||||||||
Income |
Operations(1) |
Attributable to |
Operations | ||||||||
Reported results |
$ |
903 |
$ |
802 |
$ |
523 |
$ |
0.99 | |||
Factors Affecting Comparability: |
|||||||||||
Discrete tax benefits (3) |
- |
- |
(11) |
(0.02) | |||||||
Adjusted results |
$ |
903 |
$ |
802 |
$ |
512 |
$ |
0.97 | |||
Nine Months Ended | |||||||||||
| |||||||||||
Diluted EPS | |||||||||||
Pre-tax Earnings |
Net Earnings from |
from | |||||||||
Operating |
from Continuing |
Continuing Operations |
Continuing | ||||||||
Income |
Operations(1) |
Attributable to |
Operations | ||||||||
Reported results |
$ |
2,851 |
$ |
2,531 |
$ |
1,702 |
$ |
3.13 | |||
Factors Affecting Comparability: |
|||||||||||
Extinguishment of debt(4) |
- |
21 |
13 |
0.02 | |||||||
Discrete tax benefits(3) |
- |
- |
(77) |
(0.14) | |||||||
Adjusted results |
$ |
2,851 |
$ |
2,552 |
$ |
1,638 |
$ |
3.01 | |||
Quarter Ended | |||||||||||
| |||||||||||
Diluted EPS | |||||||||||
Pre-tax Earnings |
Net Earnings from |
from | |||||||||
Operating |
from Continuing |
Continuing Operations |
Continuing | ||||||||
Income |
Operations(1) |
Attributable to |
Operations | ||||||||
Reported results |
$ |
981 |
$ |
899 |
$ |
574 |
$ |
0.97 | |||
Factors Affecting Comparability: |
|||||||||||
Restructuring(5) |
14 |
14 |
9 |
0.02 | |||||||
Adjusted results |
$ |
995 |
$ |
913 |
$ |
583 |
$ |
0.99 | |||
Nine Months Ended | |||||||||||
| |||||||||||
Diluted EPS | |||||||||||
Pre-tax Earnings |
Net Earnings from |
from | |||||||||
Operating |
from Continuing |
Continuing Operations |
Continuing | ||||||||
Income |
Operations(1) |
Attributable to |
Operations | ||||||||
Reported results |
$ |
2,781 |
$ |
2,438 |
$ |
1,570 |
$ |
2.62 | |||
Factors Affecting Comparability: |
|||||||||||
Restructuring(5) |
14 |
14 |
9 |
0.01 | |||||||
Extinguishment of debt (4) |
- |
87 |
54 |
0.09 | |||||||
Adjusted results |
$ |
2,795 |
$ |
2,539 |
$ |
1,633 |
$ |
2.72 | |||
(1) Pre-tax earnings from continuing operations represent earnings before provision for income taxes. |
(2) The tax impact has been calculated using the rates applicable to the adjustments presented. |
(3) Adjusted results for the quarter and nine months ended |
(4) Adjusted results for the nine months ended |
(5) Adjusted results for the quarter and nine months ended |
SOURCE
News Provided by Acquire Media