Viacom Reports Strong Fourth Quarter and Full Year Results
- Company Delivered Turnaround of Core Business and Grew Full Year Consolidated Operating Income for First Time Since Fiscal 2014
- Consolidated Revenues Increased 5% in the Quarter, Driven by Double Digit Gains at
Paramount - Media Networks Grew Total Affiliate Revenues 4% in the Quarter, with Domestic Affiliate Revenues Up 3% – Sequential Improvement of 1,100 Basis Points in Growth Rate in the Year
- Viacom International Media Networks Delivered Record Year of Revenues and Profitability
- Full Year Net Cash Provided by Operating Activities Grew 9% to
$1.82 Billion ; Operating Free Cash Flow Up 9% to$1.64 Billion ; and Total Debt Reduced by Over$1 Billion
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181116005159/en/
STATEMENT FROM
“Our strong performance in the fourth quarter capped off a pivotal year for
Fiscal Year 2018 Results |
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$ millions, except per share amounts |
||||||||||||||||||||||||||||||||||||||
Quarter Ended September 30, |
Year Ended September 30, |
|||||||||||||||||||||||||||||||||||||
2018 | 2017 |
B/(W)% |
2018 | 2017 |
B/(W)% |
|||||||||||||||||||||||||||||||||
GAAP | ||||||||||||||||||||||||||||||||||||||
Revenues | $ | 3,485 | $ | 3,319 | 5 |
% |
|
$ | 12,943 | $ | 13,263 | (2 |
)% |
|
||||||||||||||||||||||||
Operating income | 645 | 705 | (9 |
) |
|
2,570 | 2,489 | 3 | ||||||||||||||||||||||||||||||
Net earnings from continuing operations attributable to Viacom | 386 | 674 | (43 |
) |
|
1,688 |
1,871 | (10 |
) |
|
||||||||||||||||||||||||||||
Diluted EPS from continuing operations | 0.96 | 1.67 | (43 |
) |
|
4.19 | 4.67 | (10 |
) |
|
||||||||||||||||||||||||||||
Non-GAAP* | ||||||||||||||||||||||||||||||||||||||
Adjusted operating income | $ | 670 | $ | 578 | 16 |
% |
|
$ | 2,795 | $ | 2,743 | 2 |
% |
|
||||||||||||||||||||||||
Adjusted net earnings from continuing operations attributable to Viacom | 400 | 310 | 29 | 1,659 | 1,511 | 10 | ||||||||||||||||||||||||||||||||
Adjusted diluted EPS from continuing operations | 0.99 | 0.77 | 29 | 4.12 | 3.77 | 9 | ||||||||||||||||||||||||||||||||
* Non-GAAP measures referenced in this release are detailed in the Supplemental Disclosures at the end of this release. |
FILMED ENTERTAINMENT
Quarterly Financial Results |
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$ millions |
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|
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FQ4’18 |
Total | B/(W)% | Domestic | B/(W)% | International | B/(W)% | |||||||||||||||||||||||||
Revenues | $ | 984 | 25 | % | $ | 400 | 26 | % | $ | 584 | 24 | % | |||||||||||||||||||
Theatrical | 337 | 193 | 108 |
315 |
229 | 157 | |||||||||||||||||||||||||
Licensing | 435 | 3 | 148 |
14 |
287 | (2 | ) | ||||||||||||||||||||||||
Home Entertainment | 157 | (17 | ) | 103 | (15 | ) | 54 | (22 | ) | ||||||||||||||||||||||
Ancillary | 55 | (10 | ) | 41 | 3 | 14 | (33 | ) | |||||||||||||||||||||||
Adj. Operating Income | $ | 38 | n/m* |
* n/m: not meaningful |
Paramount Pictures has improved YOY adjusted operating income for seven straight quarters, with growth in FQ4 benefitting from the performances of Mission: Impossible – Fallout, AQuiet Place andBook Club .- Double-digit gains in FQ4 total revenues were driven by a nearly 3X increase in worldwide theatrical revenues and growth in worldwide licensing.
- Higher worldwide theatrical revenues in FQ4 reflect the strong box office performance of Mission: Impossible – Fallout.
- The increase in FQ4 worldwide licensing revenues benefited from continued growth at Paramount Television, with notable deliveries, including Maniac.
- Paramount Television grew revenues +127% YOY to over
$400 million in FY18.
- Paramount Television grew revenues +127% YOY to over
- Lower worldwide home entertainment revenues in FQ4 reflect the number and mix of available titles.
- The decrease in FQ4 worldwide ancillary revenues reflects lower international revenues, partially offset by domestic growth.
Operational Highlights |
- Mission: Impossible – Fallout was #1 at the global box office in FQ4. It is the most successful film of the franchise, grossing nearly
$800 million to date. - With a production cost of approximately
$20 million , AQuiet Place grossed more than$340 million at the worldwide box office. Released in April, it is the second highest grossing horror film in the U.S. over the past decade. - Comedy hit
Book Club grossed nearly$75 million worldwide – more than seven times its acquisition cost of$10 million . Paramount Pictures has built a diverse theatrical film slate of 13 titles for FY19 – up from nine in FY18 – that feature big-budget tentpoles, targeted-audience productions andViacom -branded films.- Upcoming releases include the latest installment of the Transformers franchise, Bumblebee; theBET co-branded film What Men Want; animated featureWonder Park ; a reboot of Stephen King’s horror classic Pet Sematary; and the Elton John biopic Rocketman.- Paramount Television delivered nine series to air in FY18, with FQ4 premieres including Tom Clancy’s
Jack Ryan onAmazon and Maniac onNetflix .- Anticipated to grow revenues +50% in FY19, with 16 series ordered for production:
- Nine new shows, including The Haunting of Hill House for
Netflix , Catch-22 forHulu andFirst Wives Club for Paramount Network. - Seven returning series, including third seasons of 13 Reasons Why for
Netflix andBerlin Station for EPIX, and second seasons of Tom Clancy’sJack Ryan forAmazon and The Alienistfor TNT.
- Nine new shows, including The Haunting of Hill House for
- Anticipated to grow revenues +50% in FY19, with 16 series ordered for production:
MEDIA NETWORKS
Viacom Media Networks returned domestic affiliate revenues and total adjusted operating income to growth in FQ4, strengthened audience share and accelerated initiatives in content production, digital consumption and ad solutions.
Quarterly Financial Results |
||||||||||||||||||||||||||||||||||||
$ millions |
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FQ4’18 |
Total | B/(W)% | Domestic | B/(W)% | International | B/(W)% | FX B/(W)% | |||||||||||||||||||||||||||||
Revenues | $ | 2,520 | (1 | )% | $ | 1,966 |
- |
% | $ | 554 | (7 | )% | (8 | )% | ||||||||||||||||||||||
Affiliate | 1,192 | 4 | 972 |
3 |
220 | 10 | (6 | ) | ||||||||||||||||||||||||||||
Advertising | 1,147 | (6 | ) | 896 | (4 |
) |
251 | (13 | ) | (10 | ) | |||||||||||||||||||||||||
Ancillary | 181 | - | 98 | 29 | 83 | (21 | ) | (5 | ) | |||||||||||||||||||||||||||
Adj. Operating Income | $ | 708 | 2 | % |
|
- Worldwide affiliate growth in FQ4 partially offset lower worldwide advertising revenues. Domestic revenues held flat, while the impact of foreign exchange drove lower international revenues.
- Worldwide affiliate revenues in FQ4 were driven by domestic growth and double-digit international gains.
- Domestic affiliate revenues delivered +1,100 bps of sequential improvement in growth rate in the year.
- Advanced Marketing Solutions (AMS) revenues – including those from Vantage – grew +32% YOY in FQ4, partially offsetting the decrease in linear domestic ad revenues, while the unfavorable impact of foreign exchange drove lower international ad revenues.
- Live events and consumer products drove double-digit growth in FQ4 domestic ancillary revenues, offsetting lower international revenues.
- Adjusted OI returned to growth in FQ4, benefiting from lower programming expenses and cost transformation savings.
Operational Highlights |
Viacom held the #1 share of U.S. basic cable viewing across key audiences in FQ4, including viewers 2-49, 2-11, 12-17, 18-34 and 18-49, with particular strength atMTV ,BET andComedy Central .- Viacom brands in FQ4 had six of the 10 highest-rated original cable series among Adults 18-34, including season two of MTV’s Jersey Shore: Family Vacation– the most-watched unscripted show on cable in the demo.
- Internationally, Channel 5 returned to audience share growth in FQ4, while Telefe achieved 10 months of ratings leadership as of October.
Viacom more than doubled YOY global social video views in FQ4, jumping from #24 to #10 in Tubular media industry rankings.Viacom doubled itsYouTube subscribers in FY18 with launches of dedicated channels for hit franchises including MTV’s Wild ‘N Out.- AMS continued to scale, generating more than
$300 million in full-year revenues, and doubling its contribution from 5% of total domestic advertising revenues in FY16 to 10% in FY18. Vantage had its best quarter ever in FQ4, with revenues up 75% YOY. Viacom continued to build its studio production business to create content for third parties globally. Recent wins include:- The August release of Awesomeness’ To All the Boys I’ve Loved Before– one of Netflix’s most-watched original films ever.
- Nickelodeon’s partnership with
Netflix on a live-action series of Avatar: The Last Airbender, with production starting in 2019. - The launch of MTV Studios, which announced a three-season deal with Facebook Watch in October to reimagine MTV’s The Real Worldfor global audiences.
- The growth of Viacom International Studios (VIS), driven by production partnerships with
Amazon , Cablevisión, Fox Network Group Latin America,Netflix and Telemundo. Through VIS,Viacom is now a leading global producer of original Spanish-language content, with more than 700 hours delivered in FY18.
BALANCE SHEET AND LIQUIDITY
- At
September 30, 2018 , total debt outstanding was$10.08 billion , a reduction of over$1 billion during the year and approximately$3 billion since we announced our strategy to de-lever inFebruary 2017 . Total adjusted gross debt was$9.43 billion . - Cash balance grew by
$168 million to approximately$1.6 billion for the full year. - Net cash provided by operating activities increased
$150 million , or 9%, to$1.82 billion for the full year. - Free cash flow grew
$167 million , or 11%, to$1.64 billion , and operating free cash flow grew$134 million , or 9%, to$1.64 billion for the full year.
About
For more information on
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: technological developments, alternative content offerings and their effects in our markets and on consumer behavior; competition for content, audiences, advertising and distribution in a swiftly consolidating industry; the public acceptance of our brands, programs, films and other entertainment content on the various platforms on which they are distributed; the impact on our advertising revenues of declines in linear television viewing, deficiencies in audience measurement and advertising market conditions; the potential for loss of carriage or other reduction in the distribution of our content; evolving cybersecurity and similar risks; the failure, destruction or breach of our critical satellites or facilities; content theft; increased costs for programming, films and other rights; the loss of key talent; domestic and global political, economic and/or regulatory factors affecting our businesses generally; volatility in capital markets or a decrease in our debt ratings; a potential inability to realize the anticipated goals underlying our ongoing investments in new businesses, products, services and technologies; fluctuations in our results due to the timing, mix, number and availability of our films and other programming; potential conflicts of interest arising from our ownership structure with a controlling stockholder; and other factors described in our news releases and filings with the
VIACOM INC. | ||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
($ millions, except per share amounts) | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
Revenues | $ | 3,485 | $ | 3,319 | $ | 12,943 | $ | 13,263 | ||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Operating | 1,954 | 1,885 | 6,879 | 7,436 | ||||||||||||||||||||
Selling, general and administrative | 807 | 800 | 3,056 | 3,005 | ||||||||||||||||||||
Depreciation and amortization | 54 | 56 | 213 | 223 | ||||||||||||||||||||
Restructuring and related costs | 25 |
- |
225 | 237 | ||||||||||||||||||||
Total expenses | 2,840 | 2,741 | 10,373 | 10,901 | ||||||||||||||||||||
Gain on asset sale |
- |
127 |
- |
127 | ||||||||||||||||||||
Operating income | 645 | 705 | 2,570 | 2,489 | ||||||||||||||||||||
Interest expense, net | (132 | ) | (149 | ) | (560 | ) | (618 | ) | ||||||||||||||||
Equity in net earnings of investee companies | 4 | 3 | 9 | 81 | ||||||||||||||||||||
Gain on sale of EPIX |
- |
- |
- |
285 | ||||||||||||||||||||
Other items, net | (7 | ) | 12 | (22 | ) | (25 | ) | |||||||||||||||||
Earnings from continuing operations before provision for income taxes | 510 | 571 | 1,997 | 2,212 | ||||||||||||||||||||
Provision for income taxes | (111 | ) | 124 | (269 | ) | (293 | ) | |||||||||||||||||
Net earnings from continuing operations | 399 | 695 | 1,728 | 1,919 | ||||||||||||||||||||
Discontinued operations, net of tax | 8 |
- |
31 | 3 | ||||||||||||||||||||
Net earnings (Viacom and noncontrolling interests) | 407 | 695 | 1,759 | 1,922 | ||||||||||||||||||||
Net earnings attributable to noncontrolling interests | (13 | ) | (21 | ) | (40 | ) | (48 | ) | ||||||||||||||||
Net earnings attributable to Viacom | $ | 394 | $ | 674 | $ | 1,719 | $ | 1,874 | ||||||||||||||||
Amounts attributable to Viacom: | ||||||||||||||||||||||||
Net earnings from continuing operations | $ | 386 | $ | 674 | $ | 1,688 | $ | 1,871 | ||||||||||||||||
Discontinued operations, net of tax | 8 |
- |
31 | 3 | ||||||||||||||||||||
Net earnings attributable to Viacom | $ | 394 | $ | 674 | $ | 1,719 | $ | 1,874 | ||||||||||||||||
Basic earnings per share attributable to Viacom: | ||||||||||||||||||||||||
Continuing operations | $ | 0.96 | $ | 1.67 | $ | 4.19 | $ | 4.68 | ||||||||||||||||
Discontinued operations | 0.02 |
- |
0.08 | 0.01 | ||||||||||||||||||||
Net earnings | $ | 0.98 | $ | 1.67 | $ | 4.27 | $ | 4.69 | ||||||||||||||||
Diluted earnings per share attributable to Viacom: | ||||||||||||||||||||||||
Continuing operations | $ | 0.96 | $ | 1.67 | $ | 4.19 | $ | 4.67 | ||||||||||||||||
Discontinued operations | 0.02 |
- |
0.08 | 0.01 | ||||||||||||||||||||
Net earnings | $ | 0.98 | $ | 1.67 | $ | 4.27 | $ | 4.68 | ||||||||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||||||||
Basic | 403.1 | 402.4 | 402.7 | 399.9 | ||||||||||||||||||||
Diluted | 403.3 | 402.4 | 403.0 | 400.6 | ||||||||||||||||||||
Dividends declared per share of Class A and Class B common stock | $ | 0.20 | $ | 0.20 | $ | 0.80 | $ | 0.80 | ||||||||||||||||
VIACOM INC. | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(Unaudited) | ||||||||||||
($ millions, except par value) |
September 30, |
September 30, 2017 |
||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 1,557 | $ | 1,389 | ||||||||
Receivables, net | 3,141 | 2,970 | ||||||||||
Inventory, net | 896 | 919 | ||||||||||
Prepaid and other assets | 482 | 523 | ||||||||||
Total current assets | 6,076 | 5,801 | ||||||||||
Property and equipment, net | 919 | 978 | ||||||||||
Inventory, net | 3,848 | 3,982 | ||||||||||
Goodwill | 11,609 | 11,665 | ||||||||||
Intangibles, net | 313 | 313 | ||||||||||
Other assets | 1,018 | 959 | ||||||||||
Total assets | $ | 23,783 | $ | 23,698 | ||||||||
LIABILITIES AND EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 433 | $ | 431 | ||||||||
Accrued expenses | 848 | 869 | ||||||||||
Participants’ share and residuals | 719 | 825 | ||||||||||
Program obligations | 662 | 712 | ||||||||||
Deferred revenue | 398 | 463 | ||||||||||
Current portion of debt | 567 | 19 | ||||||||||
Other liabilities | 427 | 434 | ||||||||||
Total current liabilities | 4,054 | 3,753 | ||||||||||
Noncurrent portion of debt | 9,515 | 11,100 | ||||||||||
Participants’ share and residuals | 523 | 384 | ||||||||||
Program obligations | 498 | 477 | ||||||||||
Deferred tax liabilities, net | 296 | 294 | ||||||||||
Other liabilities | 1,186 | 1,323 | ||||||||||
Redeemable noncontrolling interest | 246 | 248 | ||||||||||
Commitments and contingencies | ||||||||||||
Viacom stockholders’ equity: | ||||||||||||
Class A common stock, par value $0.001, 375.0 authorized; 49.4 and 49.4 outstanding, respectively |
- |
- |
||||||||||
Class B common stock, par value $0.001, 5,000.0 authorized; 353.7 and 353.0 outstanding, respectively |
- |
- |
||||||||||
Additional paid-in capital | 10,145 | 10,119 | ||||||||||
Treasury stock, 393.1 and 393.8 common shares held in treasury, respectively | (20,562 | ) | (20,590 | ) | ||||||||
Retained earnings | 18,561 | 17,124 | ||||||||||
Accumulated other comprehensive loss | (737 | ) | (618 | ) | ||||||||
Total Viacom stockholders’ equity | 7,407 | 6,035 | ||||||||||
Noncontrolling interests | 58 | 84 | ||||||||||
Total equity | 7,465 | 6,119 | ||||||||||
Total liabilities and equity | $ | 23,783 | $ | 23,698 | ||||||||
VIACOM INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
(Unaudited) | ||||||||||||
($ millions) |
Year Ended |
|||||||||||
2018 | 2017 | |||||||||||
OPERATING ACTIVITIES | ||||||||||||
Net earnings (Viacom and noncontrolling interests) | $ | 1,759 | $ | 1,922 | ||||||||
Discontinued operations, net of tax | (31 | ) | (3 | ) | ||||||||
Net earnings from continuing operations | 1,728 | 1,919 | ||||||||||
Reconciling items: | ||||||||||||
Depreciation and amortization | 213 | 223 | ||||||||||
Feature film and program amortization | 4,785 | 4,739 | ||||||||||
Equity-based compensation | 57 | 68 | ||||||||||
Equity in net earnings and distributions from investee companies | (2 | ) | (14 | ) | ||||||||
Gain on asset sales | (16 | ) | (412 | ) | ||||||||
Deferred income taxes | (45 | ) | (174 | ) | ||||||||
Operating assets and liabilities, net of acquisitions: | ||||||||||||
Receivables | (250 | ) | (132 | ) | ||||||||
Production and programming | (4,606 | ) | (4,412 | ) | ||||||||
Accounts payable and other current liabilities | (45 | ) | (207 | ) | ||||||||
Other, net | 3 | 74 | ||||||||||
Net cash provided by operating activities | 1,822 | 1,672 | ||||||||||
INVESTING ACTIVITIES | ||||||||||||
Acquisitions and investments, net | (112 | ) | (378 | ) | ||||||||
Capital expenditures | (178 | ) | (195 | ) | ||||||||
Proceeds received from asset sales | 57 | 848 | ||||||||||
Grantor trust proceeds | 9 | 54 | ||||||||||
Net cash provided by/(used in) investing activities | (224 | ) | 329 | |||||||||
FINANCING ACTIVITIES | ||||||||||||
Borrowings | — | 2,569 | ||||||||||
Debt repayments | (1,000 | ) | (3,352 | ) | ||||||||
Dividends paid | (322 | ) | (319 | ) | ||||||||
Exercise of stock options | 2 | 172 | ||||||||||
Other, net | (90 | ) | (81 | ) | ||||||||
Net cash used in financing activities | (1,410 | ) | (1,011 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (20 | ) | 20 | |||||||||
Net change in cash and cash equivalents | 168 | 1,010 | ||||||||||
Cash and cash equivalents at beginning of period | 1,389 | 379 | ||||||||||
Cash and cash equivalents at end of period | $ | 1,557 | $ | 1,389 | ||||||||
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
The following tables reconcile our results of operations reported in accordance with accounting principles generally accepted in
Quarter Ended | ||||||||||||||||||||||||||||||
($ millions, except per share amounts) |
September 30, 2018 |
|||||||||||||||||||||||||||||
Earnings from | Net Earnings | |||||||||||||||||||||||||||||
Continuing | from Continuing | |||||||||||||||||||||||||||||
Operations | Operations | Diluted EPS | ||||||||||||||||||||||||||||
Operating | Before Provision | Provision for | Attributable to | from Continuing | ||||||||||||||||||||||||||
Income | for Income Taxes |
Income Taxes (1) |
Viacom | Operations | ||||||||||||||||||||||||||
Reported results (GAAP) | $ | 645 | $ | 510 | $ | 111 | $ | 386 | $ | 0.96 | ||||||||||||||||||||
Factors Affecting Comparability: | ||||||||||||||||||||||||||||||
Restructuring and related costs (2) |
25 |
25 |
7 |
18 |
0.05 |
|||||||||||||||||||||||||
Discrete tax benefit (3) |
- |
- |
4 |
(4 |
) |
(0.02 |
) |
|||||||||||||||||||||||
Adjusted results (Non-GAAP) | $ | 670 | $ | 535 | $ | 122 | $ | 400 | $ | 0.99 | ||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||||
($ millions, except per share amounts) | September 30, 2018 | |||||||||||||||||||||||||||||
Earnings from | Net Earnings | |||||||||||||||||||||||||||||
Continuing | from Continuing | |||||||||||||||||||||||||||||
Operations | Operations | Diluted EPS | ||||||||||||||||||||||||||||
Operating | Before Provision | Provision for | Attributable to | from Continuing | ||||||||||||||||||||||||||
Income | for Income Taxes |
Income Taxes (1) |
Viacom | Operations | ||||||||||||||||||||||||||
Reported results (GAAP) | $ | 2,570 | $ | 1,997 | $ | 269 | $ | 1,688 | $ | 4.19 | ||||||||||||||||||||
Factors Affecting Comparability: | ||||||||||||||||||||||||||||||
Restructuring and related costs (2) |
225 |
225 |
55 |
170 |
0.42 |
|||||||||||||||||||||||||
Gain on extinguishment of debt (4) |
- |
(25 |
) |
(6 |
) |
(19 |
) |
(0.05 |
) |
|||||||||||||||||||||
Gain on asset sale (5) |
- |
(16 |
) |
- |
(16 |
) |
(0.04 |
) |
||||||||||||||||||||||
Investment impairment (6) |
- |
46 |
10 |
36 |
0.09 |
|||||||||||||||||||||||||
Discrete tax benefit (3) |
- |
- |
200 |
(200 |
) |
(0.49 |
) |
|||||||||||||||||||||||
Adjusted results (Non-GAAP) | $ | 2,795 | $ | 2,227 | $ | 528 | $ | 1,659 | $ | 4.12 | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||
($ millions, except per share amounts) | September 30, 2017 | |||||||||||||||||||||||||||||
Earnings from | Net Earnings | |||||||||||||||||||||||||||||
Continuing | from Continuing | |||||||||||||||||||||||||||||
Operations | Operations | Diluted EPS | ||||||||||||||||||||||||||||
Operating | Before Provision | Provision for | Attributable to | from Continuing | ||||||||||||||||||||||||||
Income | for Income Taxes |
Income Taxes (1) |
Viacom | Operations | ||||||||||||||||||||||||||
Reported results (GAAP) |
$ |
705 |
$ |
571 |
$ |
(124 |
) |
$ |
674 |
$ |
1.67 |
|||||||||||||||||||
Factors Affecting Comparability: | ||||||||||||||||||||||||||||||
Gain on asset sale (8) | (127 | ) | (127 | ) | (20 | ) | (96 | ) | (0.24 | ) | ||||||||||||||||||||
Discrete tax benefit (3) |
- |
- |
268 | (268 | ) | (0.66 | ) | |||||||||||||||||||||||
Adjusted results (Non-GAAP) |
$ |
578 |
$ |
444 |
$ |
124 |
$ |
310 |
$ |
0.77 |
||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||||
($ millions, except per share amounts) | September 30, 2017 | |||||||||||||||||||||||||||||
Earnings from | Net Earnings | |||||||||||||||||||||||||||||
Continuing | from Continuing | |||||||||||||||||||||||||||||
Operations | Operations | Diluted EPS | ||||||||||||||||||||||||||||
Operating | Before Provision | Provision for | Attributable to | from Continuing | ||||||||||||||||||||||||||
Income | for Income Taxes |
Income Taxes (1) |
Viacom | Operations | ||||||||||||||||||||||||||
Reported results (GAAP) |
$ |
2,489 |
$ |
2,212 |
$ |
293 |
$ |
1,871 |
$ |
4.67 |
||||||||||||||||||||
Factors Affecting Comparability: | ||||||||||||||||||||||||||||||
Restructuring and programming charges (7) | 381 | 381 | 135 | 246 | 0.61 | |||||||||||||||||||||||||
Gain on asset sale (8) | (127 | ) | (412 | ) | (116 | ) | (285 | ) | (0.71 | ) | ||||||||||||||||||||
Loss on extinguishment of debt (4) |
- |
20 | 7 | 13 | 0.03 | |||||||||||||||||||||||||
Investment impairment (6) |
- |
10 | 4 | 6 | 0.01 | |||||||||||||||||||||||||
Discrete tax benefit (3) |
- |
- |
340 | (340 | ) | (0.84 | ) | |||||||||||||||||||||||
Adjusted results (Non-GAAP) |
$ |
2,743 |
$ |
2,211 |
$ |
663 |
$ |
1,511 |
$ |
3.77 |
||||||||||||||||||||
(1) The tax impact has been calculated by applying the tax rates applicable to the adjustments presented.
(2) During 2018, we launched a program of cost transformation initiatives to improve our margins, including an organizational realignment of support functions across Media Networks, new sourcing and procurement policies, real estate consolidation and technology enhancements. We recognized pre-tax restructuring and related costs of
(3) The net discrete tax benefit in the quarter ended
The net discrete tax benefit in the quarter ended
(4) We redeemed senior notes and debentures totaling
We redeemed senior notes and debentures totaling
(5) We completed the sale of a 1% equity interest in Viacom18 to our joint venture partner for
(6) We recognized impairment losses of
(7) We recognized pre-tax restructuring and programming charges of
(8) In the quarter and year ended
The following table reconciles our net cash provided by operating activities (GAAP) for the quarter and year ended
Reconciliation of net cash provided by operating activities
|
Quarter Ended September 30, |
Better/
(Worse) |
Year Ended |
Better/
(Worse) |
||||||||||||||||||||||||||||||||
2018 | 2017 | $ | 2018 | 2017 | $ | |||||||||||||||||||||||||||||||
Net cash provided by operating activities (GAAP) | $ | 825 | $ | 1,018 | $ | (193 | ) | $ | 1,822 | $ | 1,672 | $ | 150 | |||||||||||||||||||||||
Capital expenditures | (76 | ) | (56 | ) | (20 | ) | (178 | ) | (195 | ) | 17 | |||||||||||||||||||||||||
Free cash flow (Non-GAAP) | 749 | 962 | (213 | ) | 1,644 | 1,477 | 167 | |||||||||||||||||||||||||||||
Debt retirement premium |
- |
- |
- |
- |
33 | (33 | ) | |||||||||||||||||||||||||||||
Operating free cash flow (Non-GAAP) | $ | 749 | $ | 962 | $ | (213 | ) | $ | 1,644 | $ | 1,510 | $ | 134 | |||||||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20181116005159/en/
Source:
Press:
Justin Dini
Senior Vice President, Corporate Communications
(212) 846-2724
justin.dini@viacom.com
Alex Rindler
Senior Manager, Corporate Communications
(212) 846-4337
alex.rindler@viacom.com
Investors:
James Bombassei
Senior Vice President, Investor Relations and Treasurer
(212) 258-6377
james.bombassei@viacom.com
Kareem Chin
Vice President, Investor Relations
(212) 846-6305
kareem.chin@viacom.com