Viacom Reports Results for Third Quarter 2014
Paramount Pictures delivered the global megahit of the summer in "Transformers: Age of Extinction," which recently surpassed
Fiscal Year 2014 Results |
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Quarter Ended |
B/(W) |
Nine Months |
B/(W) | |||||||||||||||||||||
(in millions, except per share amounts) | 2014 | 2013 |
2014 vs. |
2014 | 2013 |
2014 vs. |
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Revenues | $ | 3,421 | $ | 3,693 | (7 | )% | $ | 9,792 | $ | 10,142 | (3 | )% | ||||||||||||
Operating income | 1,086 | 1,085 | — | 2,918 | 2,729 | 7 | ||||||||||||||||||
Net earnings from continuing operations attributable to |
611 | 647 | (6 | ) | 1,660 | 1,601 | 4 | |||||||||||||||||
Adjusted net earnings from continuing operations attributable to
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618 | 635 | (3 | ) | 1,647 | 1,577 | 4 | |||||||||||||||||
Diluted EPS from continuing operations | 1.40 | 1.32 | 6 | 3.73 | 3.20 | 17 | ||||||||||||||||||
Adjusted diluted EPS from continuing operations* | $ | 1.42 | $ | 1.29 | 10 | % | $ | 3.70 | $ | 3.15 | 17 | % | ||||||||||||
* Adjusted measures referenced in this release are detailed in the Supplemental Disclosures at the end of this release. |
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Revenues |
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(in millions) |
Quarter Ended |
B/(W) |
Nine Months |
B/(W) | |||||||||||||||||||||
2014 | 2013 |
2014 vs. |
2014 | 2013 |
2014 vs. |
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Media Networks | $ | 2,591 | $ | 2,569 | 1 | % | $ | 7,507 | $ | 7,196 | 4 | % | |||||||||||||
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856 | 1,158 | (26 | ) | 2,368 | 3,074 | (23 | ) | |||||||||||||||||
Eliminations | (26 | ) | (34 | ) |
NM |
(83 | ) | (128 | ) | NM | |||||||||||||||
Total Revenues | $ | 3,421 | $ | 3,693 | (7 | )% | $ | 9,792 | $ | 10,142 | (3 | )% | |||||||||||||
NM - Not Meaningful | |||||||||||||||||||||||||
Quarterly revenues were
Operating Income (Loss) |
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(in millions) |
Quarter Ended |
B/(W) |
Nine Months |
B/(W) | |||||||||||||||||||||
2014 | 2013 |
2014 vs. |
2014 | 2013 |
2014 vs. |
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Media Networks | $ | 1,121 | $ | 1,158 | (3 | )% | $ | 3,184 | $ | 3,061 | 4 | % | |||||||||||||
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55 | 17 | 224 | (8 | ) | (57 | ) | 86 | |||||||||||||||||
Corporate expenses | (61 | ) | (54 | ) | (13 | ) | (164 | ) | (171 | ) | 4 | ||||||||||||||
Equity-based compensation | (30 | ) | (35 | ) | 14 |
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(93 | ) | (95 | ) | 2 | ||||||||||||||
Eliminations | 1 | (1 | ) | NM | (1 | ) | (9 | ) | NM | ||||||||||||||||
Operating income | $ | 1,086 | $ | 1,085 | — | $ | 2,918 | $ | 2,729 | 7 | % | ||||||||||||||
NM - Not Meaningful | |||||||||||||||||||||||||
Operating income was
Quarterly adjusted net earnings from continuing operations
attributable to
Stock Repurchase Program
For the quarter ended
Debt
At June 30, 2014, total debt outstanding, including capital lease
obligations, was
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 programs, motion pictures and other entertainment
content on the various platforms on which they are distributed;
technological developments and their effect in our 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 our results due to the
timing, mix and availability of our motion pictures and other
programming; changes in the Federal communications laws and regulations;
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 |
Nine Months Ended |
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(in millions, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Revenues | $ | 3,421 | $ | 3,693 | $ | 9,792 | $ | 10,142 | |||||||||||
Expenses: | |||||||||||||||||||
Operating | 1,565 | 1,845 | 4,577 | 5,147 | |||||||||||||||
Selling, general and administrative | 718 | 705 | 2,134 | 2,091 | |||||||||||||||
Depreciation and amortization | 52 | 58 | 163 | 175 | |||||||||||||||
Total expenses | 2,335 | 2,608 | 6,874 | 7,413 | |||||||||||||||
Operating income | 1,086 | 1,085 | 2,918 | 2,729 | |||||||||||||||
Interest expense, net | (158 | ) | (114 | ) | (459 | ) | (334 | ) | |||||||||||
Equity in net earnings of investee companies | 22 | 6 | 58 | 46 | |||||||||||||||
Loss on extinguishment of debt | (11 | ) | — | (11 | ) | — | |||||||||||||
Other items, net | 3 | (2 | ) | — | (1 | ) | |||||||||||||
Earnings from continuing operations before provision for income taxes | 942 | 975 | 2,506 | 2,440 | |||||||||||||||
Provision for income taxes | (288 | ) | (309 | ) | (784 | ) | (803 | ) | |||||||||||
Net earnings from continuing operations | 654 | 666 | 1,722 | 1,637 | |||||||||||||||
Discontinued operations, net of tax | (1 | ) | (4 | ) | (1 | ) | (10 | ) | |||||||||||
Net earnings ( |
653 | 662 | 1,721 | 1,627 | |||||||||||||||
Net earnings attributable to noncontrolling interests | (43 | ) | (19 | ) | (62 | ) | (36 | ) | |||||||||||
Net earnings attributable to |
$ | 610 | $ | 643 | $ | 1,659 | $ | 1,591 | |||||||||||
Amounts attributable to |
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Net earnings from continuing operations | $ | 611 | $ | 647 | $ | 1,660 | $ | 1,601 | |||||||||||
Discontinued operations, net of tax | (1 | ) | (4 | ) | (1 | ) | (10 | ) | |||||||||||
Net earnings attributable to |
$ | 610 | $ | 643 | $ | 1,659 | $ | 1,591 | |||||||||||
Basic earnings per share attributable to |
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Continuing operations | $ | 1.43 | $ | 1.34 | $ | 3.80 | $ | 3.25 | |||||||||||
Discontinued operations | — | (0.01 | ) | — | (0.02 | ) | |||||||||||||
Net earnings | $ | 1.43 | $ | 1.33 | $ | 3.80 | $ | 3.23 | |||||||||||
Diluted earnings per share attributable to |
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Continuing operations | $ | 1.40 | $ | 1.32 | $ | 3.73 | $ | 3.20 | |||||||||||
Discontinued operations | — | (0.01 | ) | — | (0.02 | ) | |||||||||||||
Net earnings | $ | 1.40 | $ | 1.31 | $ | 3.73 | $ | 3.18 | |||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||
Basic | 428.0 | 482.6 | 436.4 | 492.1 | |||||||||||||||
Diluted | 435.8 | 491.9 | 444.8 | 500.5 | |||||||||||||||
Dividends declared per share of Class A and Class B common stock | $ | 0.33 | $ | 0.30 | $ | 0.93 | $ | 0.85 | |||||||||||
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(in millions, except par value) |
June 30, |
2013 |
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ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 1,585 | $ | 2,403 | |||||
Receivables, net | 2,958 | 2,987 | |||||||
Inventory, net | 690 | 770 | |||||||
Deferred tax assets, net | 64 | 58 | |||||||
Prepaid and other assets | 407 | 508 | |||||||
Total current assets | 5,704 | 6,726 | |||||||
Property and equipment, net | 998 | 1,040 | |||||||
Inventory, net | 4,068 | 3,945 | |||||||
Goodwill | 11,081 | 11,079 | |||||||
Intangibles, net | 242 | 279 | |||||||
Other assets | 855 | 760 | |||||||
Total assets | $ | 22,948 | $ | 23,829 | |||||
LIABILITIES AND EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 337 | $ | 316 | |||||
Accrued expenses | 849 | 1,074 | |||||||
Participants' share and residuals | 941 | 1,110 | |||||||
Program rights obligations | 557 | 576 | |||||||
Deferred revenue | 231 | 230 | |||||||
Current portion of debt | 20 | 18 | |||||||
Other liabilities | 448 | 466 | |||||||
Total current liabilities | 3,383 | 3,790 | |||||||
Noncurrent portion of debt | 12,758 | 11,867 | |||||||
Participants' share and residuals | 381 | 437 | |||||||
Program rights obligations | 396 | 527 | |||||||
Deferred tax liabilities, net | 472 | 649 | |||||||
Other liabilities | 1,158 | 1,169 | |||||||
Redeemable noncontrolling interest | 214 | 200 | |||||||
Commitments and contingencies | |||||||||
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Class A Common stock, par value |
— | — | |||||||
Class |
— | — | |||||||
Additional paid-in capital | 9,724 | 9,490 | |||||||
Treasury stock, 366.6 and 336.3 common shares held in treasury, respectively | (18,375 | ) | (15,825 | ) | |||||
Retained earnings | 12,878 | 11,629 | |||||||
Accumulated other comprehensive loss | (76 | ) | (101 | ) | |||||
Total |
4,151 | 5,193 | |||||||
Noncontrolling interests | 35 | (3 | ) | ||||||
Total equity | 4,186 | 5,190 | |||||||
Total liabilities and equity | $ | 22,948 | $ | 23,829 | |||||
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 |
Pre-tax Earnings |
Net Earnings from |
Diluted EPS from |
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Reported results | $ | 1,086 | $ | 942 | $ | 611 | $ | 1.40 | ||||||||
Factors Affecting Comparability: | ||||||||||||||||
Loss of extinguishment of debt (1) |
— | 11 | 7 | 0.02 | ||||||||||||
Adjusted results | $ | 1,086 | $ | 953 | $ | 618 | $ | 1.42 | ||||||||
Nine Months Ended |
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Operating |
Pre-tax Earnings |
Net Earnings from |
Diluted EPS from |
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Reported results | $ | 2,918 | $ | 2,506 | $ | 1,660 | $ | 3.73 | ||||||||
Factors Affecting Comparability: | ||||||||||||||||
Loss on extinguishment of debt (1) | — | 11 | 7 | 0.02 | ||||||||||||
Discrete tax benefits (2) | — | — |
(20 |
) | (0.05 | ) | ||||||||||
Adjusted results | $ | 2,918 | $ | 2,517 | $ | 1,647 | $ | 3.70 | ||||||||
Quarter Ended |
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Operating |
Pre-tax Earnings |
Net Earnings from |
Diluted EPS from |
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Reported results | $ | 1,085 | $ | 975 | $ | 647 | $ | 1.32 | ||||||||
Factors Affecting Comparability: | ||||||||||||||||
Discrete tax benefits (2) |
— | — | (12 | ) | (0.03 | ) | ||||||||||
Adjusted results | $ | 1,085 | $ | 975 | $ | 635 | $ | 1.29 | ||||||||
Nine Months Ended |
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Operating |
Pre-tax Earnings |
Net Earnings from |
Diluted EPS from |
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Reported results | $ | 2,729 | $ | 2,440 | $ | 1,601 | $ | 3.20 | ||||||||
Factors Affecting Comparability: | ||||||||||||||||
Discrete tax benefits (2) | — | — | (24 | ) | (0.05 | ) | ||||||||||
Adjusted results | $ | 2,729 | $ | 2,440 | $ | 1,577 | $ | 3.15 | ||||||||
(1) Adjusted results for the quarter and nine months ended
(2) Adjusted results for the nine months ended
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Press:
Vice President, Corporate Communications
jeremy.zweig@viacom.com
or
Mark
Jafar, 212-846-8961
Vice President, Corporate Communications
mark.jafar@viacom.com
or
Investors:
Senior Vice President, Investor Relations
james.bombassei@viacom.com
or
Director, Investor Relations
pamela.yi@viacom.com
Source:
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