UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 |
FORM 8-K |
CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Date of Report (Date of earliest event reported): May 1, 2014 |
VIACOM INC. | ||
(Exact name of registrant as specified in its charter) |
Delaware | 001-32686 | 20-3515052 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
1515 Broadway, New York, NY | 10036 | |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (212) 258-6000 |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2 – Financial Information | |||
Item 2.02 | Results of Operations and Financial Condition. | ||
On May 1, 2014, Viacom Inc. issued a press release announcing earnings for the quarter ended March 31, 2014. A copy of the press release is furnished herewith as Exhibit 99 and is incorporated by reference herein in its entirety. | |||
Section 9 – Financial Statements and Exhibits | |||
Item 9.01 | Financial Statements and Exhibits. | ||
(d) Exhibits. The following exhibit is furnished as part of this Report on Form 8-K: | |||
Exhibit No. | Description of Exhibit | ||
99 | Press release of Viacom Inc. dated May 1, 2014 announcing earnings for the quarter ended March 31, 2014. |
VIACOM INC. | |||
By: | /s/ Michael D. Fricklas | ||
Name: | Michael D. Fricklas | ||
Title: | Executive Vice President, General Counsel and Secretary |
Exhibit No. | Description of Exhibit | |
99 | Press release of Viacom Inc. dated May 1, 2014 announcing earnings for the quarter ended March 31, 2014. |
• | Adjusted Diluted EPS Increased 13% to $1.08 Per Share |
• | Media Networks Revenues Up 6% and Operating Income Rose 9%, Driven By Higher Affiliate and Advertising Revenues |
• | $2 Billion Returned to Investors in First Half of Fiscal 2014 Through Share Repurchases and Dividends |
Quarter Ended March 31, | B/(W) | Six Months Ended March 31, | B/(W) | |||||||||||||||||||
(in millions, except per share amounts) | 2014 | 2013 | 2014 vs. 2013 | 2014 | 2013 | 2014 vs. 2013 | ||||||||||||||||
Revenues | $ | 3,174 | $ | 3,135 | 1 | % | $ | 6,371 | $ | 6,449 | (1 | )% | ||||||||||
Operating income | 872 | 847 | 3 | 1,832 | 1,644 | 11 | ||||||||||||||||
Net earnings from continuing operations attributable to Viacom | 502 | 481 | 4 | 1,049 | 954 | 10 | ||||||||||||||||
Adjusted net earnings from continuing operations attributable to Viacom* | 482 | 481 | — | 1,029 | 942 | 9 | ||||||||||||||||
Diluted EPS from continuing operations | 1.13 | 0.96 | 18 | 2.33 | 1.89 | 23 | ||||||||||||||||
Adjusted diluted EPS from continuing operations* | $ | 1.08 | $ | 0.96 | 13 | % | $ | 2.29 | $ | 1.87 | 22 | % | ||||||||||
(in millions) | Quarter Ended March 31, | B/(W) | Six Months Ended March 31, | B/(W) | |||||||||||||||||
2014 | 2013 | 2014 vs. 2013 | 2014 | 2013 | 2014 vs. 2013 | ||||||||||||||||
Media Networks | $ | 2,375 | $ | 2,233 | 6 | % | $ | 4,916 | $ | 4,627 | 6 | % | |||||||||
Filmed Entertainment | 831 | 941 | (12 | ) | 1,512 | 1,916 | (21 | ) | |||||||||||||
Eliminations | (32 | ) | (39 | ) | NM | (57 | ) | (94 | ) | NM | |||||||||||
Total Revenues | $ | 3,174 | $ | 3,135 | 1 | % | $ | 6,371 | $ | 6,449 | (1 | )% | |||||||||
NM - Not Meaningful |
(in millions) | Quarter Ended March 31, | B/(W) | Six Months Ended March 31, | B/(W) | |||||||||||||||||
2014 | 2013 | 2014 vs. 2013 | 2014 | 2013 | 2014 vs. 2013 | ||||||||||||||||
Media Networks | $ | 949 | $ | 873 | 9 | % | $ | 2,063 | $ | 1,903 | 8 | % | |||||||||
Filmed Entertainment | 11 | 65 | (83 | ) | (63 | ) | (74 | ) | 15 | ||||||||||||
Corporate expenses | (52 | ) | (57 | ) | 9 | (103 | ) | (117 | ) | 12 | |||||||||||
Equity-based compensation | (31 | ) | (29 | ) | (7 | ) | (63 | ) | (60 | ) | (5 | ) | |||||||||
Eliminations | (5 | ) | (5 | ) | NM | (2 | ) | (8 | ) | NM | |||||||||||
Operating income | $ | 872 | $ | 847 | 3 | % | $ | 1,832 | $ | 1,644 | 11 | % | |||||||||
NM - Not Meaningful |
Contacts | |
Press: | Investors: |
Jeremy Zweig | James Bombassei |
Vice President, Corporate Communications | Senior Vice President, Investor Relations |
(212) 846-7503 | (212) 258-6377 |
jeremy.zweig@viacom.com | james.bombassei@viacom.com |
Mark Jafar | Pamela Yi |
Vice President, Corporate Communications | Director, Investor Relations |
(212) 846-8961 | (212) 846-7581 |
mark.jafar@viacom.com | pamela.yi@viacom.com |
VIACOM INC. CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) | |||||||||||||||||||
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||
(in millions, except per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Revenues | $ | 3,174 | $ | 3,135 | $ | 6,371 | $ | 6,449 | |||||||||||
Expenses: | |||||||||||||||||||
Operating | 1,538 | 1,539 | 3,012 | 3,302 | |||||||||||||||
Selling, general and administrative | 712 | 689 | 1,416 | 1,386 | |||||||||||||||
Depreciation and amortization | 52 | 60 | 111 | 117 | |||||||||||||||
Total expenses | 2,302 | 2,288 | 4,539 | 4,805 | |||||||||||||||
Operating income | 872 | 847 | 1,832 | 1,644 | |||||||||||||||
Interest expense, net | (152 | ) | (110 | ) | (301 | ) | (220 | ) | |||||||||||
Equity in net earnings of investee companies | 10 | 16 | 36 | 40 | |||||||||||||||
Other items, net | (3 | ) | (6 | ) | (3 | ) | 1 | ||||||||||||
Earnings from continuing operations before provision for income taxes | 727 | 747 | 1,564 | 1,465 | |||||||||||||||
Provision for income taxes | (216 | ) | (258 | ) | (496 | ) | (494 | ) | |||||||||||
Net earnings from continuing operations | 511 | 489 | 1,068 | 971 | |||||||||||||||
Discontinued operations, net of tax | — | (3 | ) | — | (6 | ) | |||||||||||||
Net earnings (Viacom and noncontrolling interests) | 511 | 486 | 1,068 | 965 | |||||||||||||||
Net earnings attributable to noncontrolling interests | (9 | ) | (8 | ) | (19 | ) | (17 | ) | |||||||||||
Net earnings attributable to Viacom | $ | 502 | $ | 478 | $ | 1,049 | $ | 948 | |||||||||||
Amounts attributable to Viacom: | |||||||||||||||||||
Net earnings from continuing operations | $ | 502 | $ | 481 | $ | 1,049 | $ | 954 | |||||||||||
Discontinued operations, net of tax | — | (3 | ) | — | (6 | ) | |||||||||||||
Net earnings attributable to Viacom | $ | 502 | $ | 478 | $ | 1,049 | $ | 948 | |||||||||||
Basic earnings per share attributable to Viacom: | |||||||||||||||||||
Continuing operations | $ | 1.15 | $ | 0.98 | $ | 2.38 | $ | 1.92 | |||||||||||
Discontinued operations | — | (0.01 | ) | — | (0.01 | ) | |||||||||||||
Net earnings | $ | 1.15 | $ | 0.97 | $ | 2.38 | $ | 1.91 | |||||||||||
Diluted earnings per share attributable to Viacom: | |||||||||||||||||||
Continuing operations | $ | 1.13 | $ | 0.96 | $ | 2.33 | $ | 1.89 | |||||||||||
Discontinued operations | — | — | — | (0.01 | ) | ||||||||||||||
Net earnings | $ | 1.13 | $ | 0.96 | $ | 2.33 | $ | 1.88 | |||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||
Basic | 436.1 | 492.0 | 440.5 | 496.8 | |||||||||||||||
Diluted | 444.6 | 500.3 | 449.3 | 504.7 | |||||||||||||||
Dividends declared per share of Class A and Class B common stock | $ | 0.30 | $ | 0.275 | $ | 0.60 | $ | 0.55 | |||||||||||
VIACOM INC. CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||
(in millions, except par value) | March 31, 2014 | September 30, 2013 | |||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 2,580 | $ | 2,403 | |||||
Receivables, net | 2,674 | 2,987 | |||||||
Inventory, net | 717 | 770 | |||||||
Deferred tax assets, net | 51 | 58 | |||||||
Prepaid and other assets | 574 | 508 | |||||||
Total current assets | 6,596 | 6,726 | |||||||
Property and equipment, net | 1,011 | 1,040 | |||||||
Inventory, net | 4,087 | 3,945 | |||||||
Goodwill | 11,096 | 11,079 | |||||||
Intangibles, net | 258 | 279 | |||||||
Other assets | 814 | 760 | |||||||
Total assets | $ | 23,862 | $ | 23,829 | |||||
LIABILITIES AND EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 341 | $ | 316 | |||||
Accrued expenses | 792 | 1,074 | |||||||
Participants’ share and residuals | 968 | 1,110 | |||||||
Program rights obligations | 576 | 576 | |||||||
Deferred revenue | 216 | 230 | |||||||
Current portion of debt | 618 | 18 | |||||||
Other liabilities | 403 | 466 | |||||||
Total current liabilities | 3,914 | 3,790 | |||||||
Noncurrent portion of debt | 12,761 | 11,867 | |||||||
Participants’ share and residuals | 373 | 437 | |||||||
Program rights obligations | 461 | 527 | |||||||
Deferred tax liabilities, net | 562 | 649 | |||||||
Other liabilities | 1,160 | 1,169 | |||||||
Redeemable noncontrolling interest | 210 | 200 | |||||||
Commitments and contingencies | |||||||||
Viacom stockholders’ equity: | |||||||||
Class A Common stock, par value $0.001, 375.0 authorized; 51.0 and 51.1 outstanding, respectively | — | — | |||||||
Class B Common stock, par value $0.001, 5,000.0 authorized; 380.5 and 398.2 outstanding, respectively | — | — | |||||||
Additional paid-in capital | 9,607 | 9,490 | |||||||
Treasury stock, 356.6 and 336.3 common shares held in treasury, respectively | (17,525 | ) | (15,825 | ) | |||||
Retained earnings | 12,410 | 11,629 | |||||||
Accumulated other comprehensive loss | (68 | ) | (101 | ) | |||||
Total Viacom stockholders’ equity | 4,424 | 5,193 | |||||||
Noncontrolling interests | (3 | ) | (3 | ) | |||||
Total equity | 4,421 | 5,190 | |||||||
Total liabilities and equity | $ | 23,862 | $ | 23,829 | |||||
(in millions, except per share amounts) | |||||||||||||||||
Quarter Ended March 31, 2014 | |||||||||||||||||
Operating Income | Pre-tax Earnings from Continuing Operations | Net Earnings from Continuing Operations Attributable to Viacom | Diluted EPS from Continuing Operations | ||||||||||||||
Reported results | $ | 872 | $ | 727 | $ | 502 | $ | 1.13 | |||||||||
Factors Affecting Comparability: | |||||||||||||||||
Discrete tax benefits (1) | — | — | (20 | ) | (0.05 | ) | |||||||||||
Adjusted results | $ | 872 | $ | 727 | $ | 482 | $ | 1.08 | |||||||||
Six Months Ended March 31, 2014 | |||||||||||||||||
Operating Income | Pre-tax Earnings from Continuing Operations | Net Earnings from Continuing Operations Attributable to Viacom | Diluted EPS from Continuing Operations | ||||||||||||||
Reported results | $ | 1,832 | $ | 1,564 | $ | 1,049 | $ | 2.33 | |||||||||
Factors Affecting Comparability: | |||||||||||||||||
Discrete tax benefits (1) | — | — | (20 | ) | (0.04 | ) | |||||||||||
Adjusted results | $ | 1,832 | $ | 1,564 | $ | 1,029 | $ | 2.29 | |||||||||
Six Months Ended March 31, 2013 | |||||||||||||||||
Operating Income | Pre-tax Earnings from Continuing Operations | Net Earnings from Continuing Operations Attributable to Viacom | Diluted EPS from Continuing Operations | ||||||||||||||
Reported results | $ | 1,644 | $ | 1,465 | $ | 954 | $ | 1.89 | |||||||||
Factors Affecting Comparability: | |||||||||||||||||
Discrete tax benefits (1) | — | — | (12 | ) | (0.02 | ) | |||||||||||
Adjusted results | $ | 1,644 | $ | 1,465 | $ | 942 | $ | 1.87 | |||||||||