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ViacomCBS Reports Q1 2021 Earnings Results

Nachrichtenquelle: Business Wire (engl.)
06.05.2021, 13:00  |  226   |   |   

ViacomCBS Inc. (NASDAQ: VIAC; VIACA) today reported financial results for the quarter ended March 31, 2021.

STATEMENT FROM BOB BAKISH, PRESIDENT & CEO

“In Q1, we accelerated our expansion in streaming with the launch of Paramount+ further enhancing ViacomCBS’ ecosystem of premium, pay and free services. The strong consumer response we have seen is evident in today’s numbers – we have grown global streaming revenue 65 percent year-over-year and we added 6M global streaming subscribers, driven by Paramount+, to reach 36M streaming subscribers globally. In addition, we now have almost 50M global Pluto TV MAUs. Our early momentum in streaming is a testament to the breadth and relevance of our differentiated offerings, as well as our opportunities for growth through Paramount+, as we continue to ramp the availability of live sports, original series and blockbuster movies over the course of the year. ViacomCBS also achieved another strong quarter of results in our advertising and affiliate businesses, which continue to demonstrate the extraordinary power of our company to reach audiences and deliver for our partners globally.”

Q1 2021 RESULTS*

    Quarter Ended March 31
       
GAAP  

2021

 

2020

 

B/(W) %

Revenues  

$

7,412

 

$

6,499

 

14

%

Operating income  

 

1,528

 

 

 

902

 

 

69

 

Net earnings from continuing operations attributable to ViacomCBS  

 

899

 

 

 

501

 

 

79

 

Diluted EPS from continuing operations attributable to ViacomCBS  

 

1.42

 

 

 

0.81

 

 

75

 

Operating cash flow from continuing operations  

$

1,651

 

 

$

357

 

 

362

%

   

 

 

 

 

 

Non-GAAP†  

 

 

 

 

 

Adjusted OIBDA  

$

1,627

 

 

$

1,245

 

 

31

%

Adjusted net earnings from continuing operations attributable to ViacomCBS  

 

961

 

 

 

690

 

 

39

 

Adjusted diluted EPS from continuing operations attributable to ViacomCBS  

 

1.52

 

 

 

1.12

 

 

36

 

Free cash flow  

$

1,589

 

 

$

306

 

 

419

%

$ in millions, except per share amounts
† Non-GAAP measures are detailed in the Supplemental Disclosures at the end of this release.
*During the fourth quarter of 2020, ViacomCBS entered into an agreement to sell Simon & Schuster, which was previously reported as the Publishing segment. Simon & Schuster has been presented as a discontinued operation in the company’s consolidated financial statements for all periods.

OVERVIEW OF Q1 REVENUE

REVENUE BY TYPE

  • Advertising revenue, which excludes streaming revenue, grew 21% year-over-year, driven by CBS’ broadcasts of Super Bowl LV and NCAA Tournament games, which were partially offset by lower linear impressions.
  • Affiliate revenue, which excludes streaming revenue, increased 5% year-over-year, reflecting higher reverse compensation and retransmission fees, as well as expanded distribution, partially offset by a decline in cable subscribers.
  • Streaming revenue rose 65% year-over-year:
    • Streaming advertising revenue grew 62% year-over-year, driven by advertising on Pluto TV, Paramount+ and other digital video platforms.
    • Streaming subscription revenue grew 69% year-over-year, reflecting 63% growth in global streaming subscribers.
    Quarter Ended March 31  
         
   

2021

 

2020

  $ B/(W) %
Advertising   $ 2,681   $ 2,219   $ 462  

21

%

Affiliate   2,075   1,968   107  

5

 

Streaming   816   494   322  

65

 

Advertising   428   265   163  

62

 

Subscription   388   229   159  

69

 

Theatrical   1   167   (166 )  

(99

)

Licensing and other   1,839   1,651   188  

11

 

Total Revenues   $ 7,412   $ 6,499   $ 913  

14

%

         
$ in millions                    

GLOBAL STREAMING HIGHLIGHTS

  • Global streaming subscribers rose to 36M in Q1, adding 6M subscribers.
    • Subscriber additions in the quarter were led by Paramount+.
      • On Paramount+, the biggest drivers of sign-ups were live sports and specials, including the Super Bowl, NCAA Tournament, UEFA Champions League, Oprah with Meghan and Harry and The Grammy Awards, as well as kids’ content, including programming from the SpongeBob universe and iCarly, and original programming, including The Stand and Star Trek: Discovery.
      • Original programming, content from cable brands and Paramount movies drove almost half of Paramount+ subscriber engagement.
      • Globally, Nickelodeon programming was a significant driver of sign-ups and engagement on Paramount+.
    • SHOWTIME OTT delivered its best quarter ever in sign-ups, streams and hours watched, driven by originals, including Your Honor and Shameless, as well as theatricals.
  • Global Pluto TV MAUs rose to nearly 50M, adding 6M global MAUs in the quarter.
    • Pluto TV MAUs grew both domestically and internationally.
    • Pluto TV international expansion continued, launching in France in Q1.

REPORTING SEGMENTS

TV ENTERTAINMENT

  • In Q1, CBS was the most-watched network in Prime, Daytime and Late Night and claimed the quarter’s top broadcast program, top 3 dramas, top 5 comedies and top news magazine.
  • Revenue grew 19% mainly driven by CBS’ broadcasts of tentpole sporting events and subscriber growth at Paramount+, partially offset by the timing of licensing.
    • Advertising revenue, which excludes streaming revenue, increased 40% year-over-year, reflecting CBS’ broadcasts of Super Bowl LV and NCAA Tournament games, partially offset by lower linear impressions.
    • Affiliate revenue, which excludes streaming revenue, grew 11% year-over-year, driven by growth in reverse compensation and retransmission fees.
    • Streaming revenue rose 58%, primarily due to subscriber growth at Paramount+ and Super Bowl LV digital advertising.
    • Licensing and other revenue decreased 17% due to a lower volume of licensing principally from COVID-related production delays.
  • Adjusted OIBDA decreased 22% year-over-year, reflecting the company’s investments in Paramount+.
    Quarter Ended March 31
         
   

2021

 

2020

 

$ B/(W) %

Revenue   $ 3,511   $ 2,947   $ 564  

19

%

Advertising   1,807   1,288   519  

40

 

Affiliate   693   623   70  

11

 

Streaming   322   204   118  

58

 

Licensing and other   689   832   (143 )  

(17

)

Expenses   3,062   2,374   (688 )  

(29

)

Adjusted OIBDA   $ 449   $ 573   $ (124 )  

(22

)%

         
$ in millions        

CABLE NETWORKS

  • In Q1, ViacomCBS owned the most top 30 cable networks among P2+ and P18-49 and more top 30 kids’ series than any other cable family; Showtime had the top 2 scripted shows on premium cable.
  • Revenue increased 14% year-over-year, driven by growth in licensing, as well as higher streaming advertising and streaming subscription revenue.
    • Advertising revenue, which excludes streaming revenue, decreased 7% year-over-year, largely because of a decline in domestic advertising, partially offset by higher international advertising.
    • Affiliate revenue, which excludes streaming revenue, grew 3% year-over-year, reflecting expanded distribution and contractual rate increases, partially offset by linear subscriber declines.
    • Streaming revenue grew 70% year-over-year, fueled by advertising revenue growth from Pluto TV and other digital video platforms, as well as growth in subscribers for subscription streaming services, including SHOWTIME OTT, BET+ and Noggin.
    • Licensing and other revenue increased 82% year-over-year, driven by the licensing of programming to Paramount+ and third parties.
  • Adjusted OIBDA increased 49% year-over-year as a result of the increase in revenue. Expenses increased 1% due to higher participations, which were substantially offset by lower advertising expenses from the broadcast of fewer original programs, and savings from restructuring activities.
    Quarter Ended March 31
         
   

2021

 

2020

  $ B/(W) %
Revenue   $ 3,259   $ 2,858   $ 401  

14

%

Advertising   878   945   (67 )  

(7

)

Affiliate   1,382   1,345   37  

3

 

Streaming   494   290   204  

70

 

Licensing and other   505   278   227  

82

 

Expenses   2,075   2,064   (11 )  

(1

)

Adjusted OIBDA   $ 1,184   $ 794   $ 390  

49

%

         
$ in millions        

FILMED ENTERTAINMENT

  • Revenue grew 23% year-over-year, reflecting growth in licensing revenues partially offset by a decline in theatrical revenue.
    • Theatrical revenue was immaterial in the quarter as a result of the closure or reduction in capacity of movie theaters in response to COVID-19.
    • Licensing and other revenue increased 55% year-over-year because of higher revenue from the licensing of programming to Paramount+ and third parties, as well as revenue from the licensing of Miramax titles.
  • Adjusted OIBDA increased $177 million primarily due to higher licensing revenue, compared to the prior-year period, which included higher distribution costs associated with theatrical releases during the first quarter of 2020.
    Quarter Ended March 31
         
   

2021

 

2020

  $ B/(W) %
Revenue   $ 997   $ 811   $ 186  

23

%

Theatrical   1   167   (166 )  

(99

)

Licensing and other   996   644   352  

55

 

Expenses   793   784   (9 )  

(1

)

Adjusted OIBDA   $ 204   $ 27   $ 177  

656

%

         
$ in millions        

BALANCE SHEET & LIQUIDITY

  • In Q1, ViacomCBS generated $1.7B of operating cash flow from continuing operations and $1.6B of free cash flow†.
  • As of March 31, 2021, the company had $5.5B of cash on its balance sheet and a committed $3.5B revolving credit facility that remains undrawn.
  • In March, ViacomCBS completed the early redemption of senior notes maturing in 2022 and 2023 for a total $2.0B.
  • In March, the company also raised $2.7B of capital through an offering of Class B common stock and mandatory convertible preferred stock.

† Non-GAAP measures are detailed in the Supplemental Disclosures at the end of this release.

ABOUT VIACOMCBS

ViacomCBS (NASDAQ: VIAC; VIACA) is a leading global media and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic consumer brands, its portfolio includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, Pluto TV and Simon & Schuster, among others. The company delivers the largest share of the U.S. television audience and boasts one of the industry’s most important and extensive libraries of TV and film titles. In addition to offering innovative streaming services and digital video products, ViacomCBS provides powerful capabilities in production, distribution and advertising solutions for partners on five continents.

For more information about ViacomCBS, please visit www.viacomcbs.com and follow @ViacomCBS on social platforms.

VIAC-IR

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This communication contains both historical and forward-looking statements, including statements related to our future results and performance. All statements that are not statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements reflect our current expectations concerning future results and events; generally can be identified by the use of statements that include phrases such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will,” “may,” “could,” “estimate” or other similar words or phrases; and involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause our actual results, performance or achievements to be different from any future results, performance or achievements expressed or implied by these statements. These risks, uncertainties and other factors include, among others: changes in consumer behavior, as well as evolving technologies, distribution platforms and packaging; the impact on our advertising revenues of changes in consumers’ content viewership, deficiencies in audience measurement and advertising market conditions; our ability to maintain attractive brands and our reputation, and to offer popular programming and other content; increased costs for programming, films and other rights; competition for content, audiences, advertising and distribution; the potential for loss of carriage or other reduction in or the impact of negotiations for the distribution of our content; losses due to asset impairment charges for goodwill, intangible assets, FCC licenses and programming; the risks and costs associated with the integration of the CBS Corporation and Viacom Inc. businesses and investments in new businesses, products, services and technologies, including our streaming initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; content infringement; the impact of COVID-19 (and other widespread health emergencies or pandemics) and measures taken in response thereto; domestic and global political, economic and/or regulatory factors affecting our businesses generally; liabilities related to discontinued operations and former businesses; the loss of key talent and strikes and other union activity; 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 Securities and Exchange Commission, including but not limited to our most recent Annual Report on Form 10-K and reports on Form 10-Q and Form 8-K. There may be additional risks, uncertainties and factors that we do not currently view as material or that are not necessarily known. The forward-looking statements included in this communication are made only as of the date of this communication, and we do not undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.

VIACOMCBS INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions, except per share amounts)

   

 

 

Quarter Ended

 

 

March 31,

 

 

2021

 

2020

Revenues

 

$

7,412

 

 

$

6,499

 

Costs and expenses:

 

 

 

 

Operating

 

4,363

 

 

3,956

 

Selling, general and administrative

 

1,422

 

 

1,298

 

Depreciation and amortization

 

99

 

 

112

 

Restructuring and other corporate matters

 

 

 

231

 

Total costs and expenses

 

5,884

 

 

5,597

 

Operating income

 

1,528

 

 

902

 

Interest expense

 

(259

)

 

(241

)

Interest income

 

13

 

 

14

 

Loss on extinguishment of debt

 

(128

)

 

 

Other items, net

 

1

 

 

(28

)

Earnings from continuing operations before income taxes and equity in loss of investee companies

 

1,155

 

 

647

 

Provision for income taxes

 

(226

)

 

(134

)

Equity in loss of investee companies, net of tax

 

(18

)

 

(9

)

Net earnings from continuing operations

 

911

 

 

504

 

Net earnings from discontinued operations, net of tax

 

12

 

 

15

 

Net earnings (ViacomCBS and noncontrolling interests)

 

923

 

 

519

 

Net earnings attributable to noncontrolling interests

 

(12

)

 

(3

)

Net earnings attributable to ViacomCBS

 

$

911

 

 

$

516

 

 

Amounts attributable to ViacomCBS:

 

 

 

 

Net earnings from continuing operations

 

$

899

 

 

$

501

 

Net earnings from discontinued operations, net of tax

 

12

 

 

15

 

Net earnings attributable to ViacomCBS

 

$

911

 

 

$

516

 

 

 

 

 

 

Basic net earnings per common share attributable to ViacomCBS:

 

 

 

 

Net earnings from continuing operations

 

$

1.44

 

 

$

.82

 

Net earnings from discontinued operations

 

$

.02

 

 

$

.02

 

Net earnings

 

$

1.46

 

 

$

.84

 

 

 

 

 

 

Diluted net earnings per common share attributable to ViacomCBS:

 

 

 

 

Net earnings from continuing operations

 

$

1.42

 

 

$

.81

 

Net earnings from discontinued operations

 

$

.02

 

 

$

.02

 

Net earnings

 

$

1.44

 

 

$

.84

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

Basic

 

622

 

 

614

 

Diluted

 

631

 

 

616

 

VIACOMCBS INC. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions, except per share amounts)

   

 

 

At

 

At

 

 

March 31, 2021

 

December 31, 2020

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

5,499

 

 

 

$

2,984

 

Receivables, net

 

 

7,310

 

 

 

7,017

 

Programming and other inventory

 

 

1,137

 

 

 

1,757

 

Prepaid and other current assets

 

 

1,027

 

 

 

1,391

 

Current assets of discontinued operations

 

 

514

 

 

 

630

 

Total current assets

 

 

15,487

 

 

 

13,779

 

Property and equipment, net

 

 

1,994

 

 

 

1,994

 

Programming and other inventory

 

 

10,755

 

 

 

10,363

 

Goodwill

 

 

16,591

 

 

 

16,612

 

Intangible assets, net

 

 

2,815

 

 

 

2,826

 

Operating lease assets

 

 

1,527

 

 

 

1,602

 

Deferred income tax assets, net

 

 

981

 

 

 

993

 

Other assets

 

 

3,785

 

 

 

3,657

 

Assets held for sale

 

 

27

 

 

 

28

 

Assets of discontinued operations

 

 

811

 

 

 

809

 

Total Assets

 

 

$

54,773

 

 

 

$

52,663

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

 

$

612

 

 

 

$

571

 

Accrued expenses

 

 

1,663

 

 

 

1,714

 

Participants’ share and royalties payable

 

 

2,070

 

 

 

2,005

 

Accrued programming and production costs

 

 

1,392

 

 

 

1,141

 

Deferred revenues

 

 

1,010

 

 

 

978

 

Debt

 

 

19

 

 

 

16

 

Other current liabilities

 

 

1,512

 

 

 

1,391

 

Current liabilities of discontinued operations

 

 

423

 

 

 

480

 

Total current liabilities

 

 

8,701

 

 

 

8,296

 

Long-term debt

 

 

17,768

 

 

 

19,717

 

Participants’ share and royalties payable

 

 

1,351

 

 

 

1,317

 

Pension and postretirement benefit obligations

 

 

2,070

 

 

 

2,098

 

Deferred income tax liabilities, net

 

 

852

 

 

 

778

 

Operating lease liabilities

 

 

1,517

 

 

 

1,583

 

Program rights obligations

 

 

212

 

 

 

243

 

Other liabilities

 

 

2,058

 

 

 

2,158

 

Liabilities of discontinued operations

 

 

212

 

 

 

220

 

Redeemable noncontrolling interest

 

 

189

 

 

 

197

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

ViacomCBS stockholders’ equity:

 

 

 

 

 

 

5.75% Series A Mandatory Convertible Preferred Stock, par value $.001 per share; 25 shares authorized and 10 shares issued (2021)

 

 

 

 

 

 

Class A Common Stock, par value $.001 per share; 55 shares authorized; 41 (2021) and 52 (2020) shares issued

 

 

 

 

 

 

Class B Common Stock, par value $.001 per share; 5,000 shares authorized; 1,108 (2021) and 1,068 (2020) shares issued

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

32,866

 

 

 

29,785

 

Treasury stock, at cost; 503 (2021 and 2020) Class B shares

 

 

(22,958

)

 

 

(22,958

)

Retained earnings

 

 

11,144

 

 

 

10,375

 

Accumulated other comprehensive loss

 

 

(1,882

)

 

 

(1,832

)

Total ViacomCBS stockholders’ equity

 

 

19,171

 

 

 

15,371

 

Noncontrolling interests

 

 

672

 

 

 

685

 

Total Equity

 

 

19,843

 

 

 

16,056

 

Total Liabilities and Equity

 

 

$

54,773

 

 

 

$

52,663

 

VIACOMCBS INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)

   

 

 

Quarter Ended

 

 

March 31,

 

 

2021

 

2020

Operating Activities:

 

 

 

 

Net earnings (ViacomCBS and noncontrolling interests)

 

$

923

 

 

$

519

 

Less: Net earnings from discontinued operations, net of tax

 

12

 

 

15

 

Net earnings from continuing operations

 

911

 

 

504

 

Adjustments to reconcile net earnings from continuing operations to net cash flow provided by operating activities:

 

 

 

 

Depreciation and amortization

 

99

 

 

112

 

Deferred tax provision

 

95

 

 

153

 

Stock-based compensation

 

52

 

 

87

 

Loss on extinguishment of debt

 

128

 

 

 

Equity in loss of investee companies, net of tax and distributions

 

18

 

 

9

 

Change in assets and liabilities

 

348

 

 

(508

)

Net cash flow provided by operating activities from continuing operations

 

1,651

 

 

357

 

Net cash flow provided by (used for) operating activities from discontinued operations

 

72

 

 

(1

)

Net cash flow provided by operating activities

 

1,723

 

 

356

 

Investing Activities:

 

 

 

 

Investments

 

(40

)

 

(46

)

Capital expenditures

 

(62

)

 

(51

)

Proceeds from sale of investments

 

213

 

 

146

 

Other investing activities

 

(25

)

 

 

Net cash flow provided by investing activities

 

86

 

 

49

 

Financing Activities:

 

 

 

 

Repayments of short-term debt borrowings, net

 

 

 

(186

)

Repayment of long-term debt

 

(2,117

)

 

 

Dividends paid on common stock

 

(151

)

 

(152

)

Proceeds from issuance of preferred stock

 

983

 

 

 

Proceeds from issuance of common stock

 

1,672

 

 

 

Purchase of Company common stock

 

 

 

(58

)

Payment of payroll taxes in lieu of issuing shares for stock-based compensation

 

(35

)

 

(50

)

Proceeds from exercise of stock options

 

408

 

 

5

 

Other financing activities

 

(37

)

 

(38

)

Net cash flow provided by (used for) financing activities

 

723

 

 

(479

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(19

)

 

(29

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

2,513

 

 

(103

)

Cash, cash equivalents and restricted cash at beginning of period (includes $135 (2021) and $202 (2020) of restricted cash)

 

3,119

 

 

834

 

Cash, cash equivalents and restricted cash at end of period (includes $133 (2021) and $142 (2020) of restricted cash)

 

$

5,632

 

 

$

731

 

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES
(Unaudited; in millions, except per share amounts)

Results for the quarters ended March 31, 2021 and 2020 included certain items identified as affecting comparability. Adjusted operating income before depreciation and amortization (“Adjusted OIBDA”), adjusted earnings from continuing operations before income taxes, adjusted provision for income taxes, adjusted net earnings from continuing operations attributable to ViacomCBS, and adjusted diluted EPS from continuing operations (together, the “adjusted measures”) exclude the impact of these items and are measures of performance not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We use these measures to, among other things, evaluate our operating performance. These measures are among the primary measures used by management for planning and forecasting of future periods, and they are important indicators of our operational strength and business performance. In addition, we use Adjusted OIBDA to, among other things, value prospective acquisitions. We believe these measures are relevant and useful for investors because they allow investors to view performance in a manner similar to the method used by our management; provide a clearer perspective on our underlying performance; and make it easier for investors, analysts and peers to compare our operating performance to other companies in our industry and to compare our year-over-year results.

Because the adjusted measures are measures of performance not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, operating income, earnings from continuing operations before income taxes, provision for income taxes, net earnings from continuing operations attributable to ViacomCBS or diluted EPS from continuing operations, as applicable, as indicators of operating performance. These measures, as we calculate them, may not be comparable to similarly titled measures employed by other companies.

The following tables reconcile the adjusted measures to their most directly comparable financial measures in accordance with GAAP.

 

 

Quarter Ended

 

 

March 31,

 

 

2021

 

2020

Operating income (GAAP)

 

$

1,528

 

 

$

902

 

Depreciation and amortization (a)

 

99

 

 

112

 

Restructuring and other corporate matters (b)

 

 

 

231

 

Adjusted OIBDA (Non-GAAP)

 

$

1,627

 

 

$

1,245

 

(a)

 

The quarter ended March 31, 2020 includes accelerated depreciation of $12 million for technology that was abandoned in connection with synergy plans related to the merger of Viacom Inc. with and into CBS Corporation (the “Merger”).

(b)

 

Primarily reflects severance and exit costs as well as other costs related to the Merger.

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued)

(Unaudited; in millions, except per share amounts)

   

 

 

Quarter Ended March 31, 2021

 

 

Earnings from
Continuing
Operations
Before Income
Taxes

 

Provision for
Income Taxes

 

Net Earnings
from Continuing
Operations
Attributable to
ViacomCBS

 

Diluted EPS
from
Continuing
Operations

Reported (GAAP)

 

 

$

1,155

 

 

 

$

(226

)

 

 

$

899

 

 

 

$

1.42

 

Items affecting comparability:

 

 

 

 

 

 

 

 

 

 

 

 

Loss on extinguishment of debt

 

 

128

 

 

 

(30

)

 

 

98

 

 

 

.16

 

Gain on marketable securities

 

 

(20

)

 

 

5

 

 

 

(15

)

 

 

(.03

)

Discrete tax items (a)

 

 

 

 

 

(21

)

 

 

(21

)

 

 

(.03

)

Adjusted (Non-GAAP)

 

 

$

1,263

 

 

 

$

(272

)

 

 

$

961

 

 

 

$

1.52

 

(a)

 

Primarily reflects tax benefits from the resolution of certain state income tax matters and excess tax benefits from the vesting or exercise of stock-based compensation awards.

 

 

Quarter Ended March 31, 2020

 

 

Earnings from
Continuing
Operations
Before Income
Taxes

 

Provision for
Income Taxes

 

Net Earnings
from Continuing
Operations
Attributable to
ViacomCBS

 

Diluted EPS
from
Continuing
Operations

Reported (GAAP)

 

 

$

647

 

 

 

$

(134

)

 

 

$

501

 

 

 

$

.81

 

Items affecting comparability:

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and other corporate matters (a)

 

 

231

 

 

 

(47

)

 

 

184

 

 

 

.30

 

Depreciation of abandoned technology (b)

 

 

12

 

 

 

(3

)

 

 

9

 

 

 

.02

 

Discrete tax items

 

 

 

 

 

(4

)

 

 

(4

)

 

 

(.01

)

Adjusted (Non-GAAP)

 

 

$

890

 

 

 

$

(188

)

 

 

$

690

 

 

 

$

1.12

 

(a)

 

Primarily reflects severance and exit costs as well as other costs related to the Merger.

(b)

 

Reflects accelerated depreciation for technology that was abandoned in connection with synergy plans related to the Merger.

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions, except per share amounts)

Free Cash Flow

Free cash flow is a non-GAAP financial measure. Free cash flow reflects our net cash flow provided by operating activities from continuing operations less capital expenditures. Our calculation of free cash flow includes capital expenditures because investment in capital expenditures is a use of cash that is directly related to our operations. Our net cash flow provided by operating activities from continuing operations is the most directly comparable GAAP financial measure.

Management believes free cash flow provides investors with an important perspective on the cash available to us to service debt, make strategic acquisitions and investments, maintain our capital assets, satisfy our tax obligations, and fund ongoing operations and working capital needs. As a result, free cash flow is a significant measure of our ability to generate long-term value. It is useful for investors to know whether this ability is being enhanced or degraded as a result of our operating performance. We believe the presentation of free cash flow is relevant and useful for investors because it allows investors to evaluate the cash generated from our underlying operations in a manner similar to the method used by management. Free cash flow is among several components of incentive compensation targets for certain management personnel. In addition, free cash flow is a primary measure used externally by our investors, analysts and industry peers for purposes of valuation and comparison of our operating performance to other companies in our industry.

As free cash flow is not a measure calculated in accordance with GAAP, free cash flow should not be considered in isolation of, or as a substitute for, either net cash flow provided by operating activities from continuing operations as a measure of liquidity or net earnings as a measure of operating performance. Free cash flow, as we calculate it, may not be comparable to similarly titled measures employed by other companies. In addition, free cash flow as a measure of liquidity has certain limitations, does not necessarily represent funds available for discretionary use and is not necessarily a measure of our ability to fund our cash needs.

The following table presents a reconciliation of our net cash flow provided by operating activities from continuing operations to free cash flow.

 

 

Quarter Ended

 

 

March 31,

 

 

2021

 

2020

Net cash flow provided by operating activities from continuing operations (GAAP)

 

$

1,651

 

 

$

357

 

Capital expenditures

 

(62

)

 

(51

)

Free cash flow (Non-GAAP)

 

$

1,589

 

 

$

306

 

 

ViacomCBS Registered (B) Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de



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Disclaimer

ViacomCBS Reports Q1 2021 Earnings Results ViacomCBS Inc. (NASDAQ: VIAC; VIACA) today reported financial results for the quarter ended March 31, 2021. STATEMENT FROM BOB BAKISH, PRESIDENT & CEO “In Q1, we accelerated our expansion in streaming with the launch of Paramount+ further enhancing …

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