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): August 4, 2016 |
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 August 4, 2016, Viacom Inc. issued a press release announcing earnings for the quarter ended June 30, 2016. 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 August 4, 2016 announcing earnings for the quarter ended June 30, 2016. |
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 August 4, 2016 announcing earnings for the quarter ended June 30, 2016. |
(in millions, except per share amounts) | Quarter Ended June 30, | B/(W) | Nine Months Ended June 30, | B/(W) | |||||||||||||||||
2016 | 2015 | 2016 vs. 2015 | 2016 | 2015 | 2016 vs. 2015 | ||||||||||||||||
GAAP | |||||||||||||||||||||
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 Viacom | 432 | 591 | (27 | ) | 1,184 | 1,038 | 14 | ||||||||||||||
Diluted earnings per share | 1.09 | 1.47 | (26 | ) | 2.98 | 2.54 | 17 | ||||||||||||||
Non-GAAP* | |||||||||||||||||||||
Adjusted operating income | $ | 769 | $ | 1,084 | (29 | )% | $ | 2,194 | $ | 2,865 | (23 | )% | |||||||||
Adjusted net earnings attributable to Viacom | 419 | 591 | (29 | ) | 1,192 | 1,596 | (25 | ) | |||||||||||||
Adjusted diluted earnings per share | 1.05 | 1.47 | (29 | ) | 3.00 | 3.91 | (23 | ) | |||||||||||||
(in millions) | Quarter Ended June 30, | B/(W) | Nine Months Ended June 30, | B/(W) | |||||||||||||||||
2016 | 2015 | 2016 vs. 2015 | 2016 | 2015 | 2016 vs. 2015 | ||||||||||||||||
Media Networks | $ | 2,513 | $ | 2,597 | (3 | )% | $ | 7,459 | $ | 7,703 | (3 | )% | |||||||||
Filmed Entertainment | 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 |
(in millions) | Quarter Ended June 30, | B/(W) | Nine Months Ended June 30, | B/(W) | |||||||||||||||||
2016 | 2015 | 2016 vs. 2015 | 2016 | 2015 | 2016 vs. 2015 | ||||||||||||||||
Media Networks | $ | 872 | $ | 1,114 | (22 | )% | $ | 2,734 | $ | 3,121 | (12 | )% | |||||||||
Filmed Entertainment | (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 |
Contacts | |
Press: | Investors: |
Jeremy Zweig | James Bombassei |
Vice President, Corporate Communications and | Senior Vice President, Investor Relations |
Corporate Affairs | (212) 258-6377 |
(212) 846-7503 | james.bombassei@viacom.com |
jeremy.zweig@viacom.com | |
Kareem Chin | |
Vice President, Investor Relations | |
(212) 846-6305 | |
kareem.chin@viacom.com |
VIACOM INC. CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) | |||||||||||||||
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
(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 (Viacom and noncontrolling interests) | 440 | 645 | 1,210 | 1,110 | |||||||||||
Net earnings attributable to noncontrolling interests | (8 | ) | (54 | ) | (26 | ) | (72 | ) | |||||||
Net earnings attributable to Viacom | $ | 432 | $ | 591 | $ | 1,184 | $ | 1,038 | |||||||
Basic earnings per share attributable to Viacom | $ | 1.09 | $ | 1.49 | $ | 2.99 | $ | 2.57 | |||||||
Diluted earnings per share attributable to Viacom | $ | 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 | |||||||
VIACOM INC. CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
(in millions, except par value) | June 30, 2016 | September 30, 2015 | |||||
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 | |||||
Goodwill | 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 | |||||||
Viacom stockholders' equity: | |||||||
Class A common stock, par value $0.001, 375.0 authorized; 49.4 and 50.1 outstanding, respectively | — | — | |||||
Class B common stock, par value $0.001, 5,000.0 authorized; 347.4 and 348.0 outstanding, respectively | — | — | |||||
Additional paid-in capital | 10,059 | 10,017 | |||||
Treasury stock, 399.5 and 398.0 common shares held in treasury, respectively | (20,804 | ) | (20,725 | ) | |||
Retained earnings | 15,467 | 14,780 | |||||
Accumulated other comprehensive loss | (630 | ) | (534 | ) | |||
Total Viacom stockholders' equity | 4,092 | 3,538 | |||||
Noncontrolling interests | 60 | 61 | |||||
Total equity | 4,152 | 3,599 | |||||
Total liabilities and equity | $ | 22,605 | $ | 22,143 | |||
(in millions, except per share amounts) | |||||||||||||||||||
Quarter Ended June 30, 2016 | |||||||||||||||||||
Operating Income | Earnings Before Provision for Income Taxes | Provision for Income Taxes (1) | Net Earnings Attributable to Viacom | 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 June 30, 2016 | |||||||||||||||||||
Operating Income | Earnings Before Provision for Income Taxes | Provision for Income Taxes (1) | Net Earnings Attributable to Viacom | Diluted EPS | |||||||||||||||
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 June 30, 2015 | |||||||||||||||||||
Operating Income | Earnings Before Provision for Income Taxes | Provision for Income Taxes (1) | Net Earnings Attributable to Viacom | 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 | |||||||||