NEW YORK, May 3, 2016
/PRNewswire/ -- CBS Corporation (NYSE: CBS.A and CBS) today
reported results for the first quarter of 2016, including quarterly
records for operating income and diluted earnings per share.
"CBS delivered a spectacular quarter as we continue to execute
on our strategy of creating and distributing the content that
audiences have to have," said Leslie
Moonves, Chairman and Chief Executive Officer, CBS
Corporation. "We had double-digit revenue growth, and we set
records in all key profit measures, with EPS coming in above a
dollar for the first time in our Company's history. Advertising was
extremely strong, growing 31% overall and 49% at the CBS Television
Network, where we are on track to win the season in adults 25-54
and adults 18-49, as well as in viewers for the 13th
time in 14 years. Looking ahead, we are in a very enviable position
for this year's Upfront, given the ongoing strength of our
primetime lineup and a robust advertising marketplace. Plus,
advertising is poised for even more growth in the back half of the
year as political spending ramps up. Our high-margin,
nonadvertising revenue streams are also on the rise, led by
retransmission consent fees and reverse compensation, which are
expected to surpass $1 billion this
year. At the same time, our subscription streaming services, CBS
All Access and Showtime over-the-top, are reaching new and
younger audiences and are beginning to make a meaningful
contribution to our results. As we grow our Company on the strength
of our premium content, we are also moving forward with our
initiative to separate our radio business, which will unlock value
for shareholders and further diversify our revenue streams. So
across the board, we are turning in record results while we
position the Company for long-term growth. It clearly continues to
be a terrific time to be a CBS investor."
First Quarter 2016 Results
Revenues for the first quarter of 2016 increased 10% to
$3.85 billion from $3.50 billion during the same prior-year period.
Advertising revenues grew 31%, driven by the CBS Television
Network's broadcast of Super Bowl 50 and additional National
Football League ("NFL") games, as well as a 12% increase in
underlying network advertising. Affiliate and subscription fee
revenues rose 15%, driven by 42% growth in retransmission revenues
and fees from CBS Television Network affiliated stations, as well
as revenues from new digital distribution platforms. Content
licensing and distribution revenues declined 29%, reflecting the
timing of domestic and international television licensing
sales.
For the first quarter of 2016, operating income of $821 million grew 14% from $721 million for the same prior-year period, and
adjusted operating income of $812
million was up 16% from $702
million. In both cases, the increases reflected the
Company's first-quarter revenue growth.
Net earnings of $473 million for
the first quarter of 2016 rose 20% from $394
million for the first quarter of 2015, and adjusted net
earnings of $474 million grew 21%
from $391 million in the same
prior-year period. The increases were driven by the Company's
higher operating income and lower losses from foreign exchange rate
changes.
Diluted earnings per share ("EPS") for the first quarter of 2016
rose to $1.02 compared with
$.78 for the same quarter in 2015,
and adjusted EPS grew to $1.02 from
$.77. Weighted average shares
outstanding were 464 million in this year's first quarter, down
from 506 million in the prior-year period, mainly as a result of
the Company's ongoing share repurchase program.
The first quarter of 2016 and 2015 included discrete items,
primarily gains from the sales of Internet businesses in
China during each of the quarters,
which have been excluded from adjusted results. Adjusted net
earnings and adjusted EPS for the first quarter of 2016 also
exclude a write-down of an international equity investment to its
fair value.
Free Cash Flow, Balance Sheet and Liquidity
For the first quarter of 2016, free cash flow was $990 million, up from $400
million in the same prior-year period, and cash flows from
operating activities were $1.03
billion compared with $417
million. These increases were primarily driven by growth in
underlying advertising revenue and affiliate and subscription fees.
The cash flow increases also reflect the benefit from additional
NFL games broadcast on CBS in 2016, including Super Bowl 50,
while the related program rights are paid to the NFL in other
periods.
During January 2016, the Company
repaid its $200 million of
outstanding 7.625% senior debentures upon maturity.
Repurchase of Company Stock
During the first quarter of 2016, the Company repurchased 10.3
million shares of its Class B Common Stock for $500 million, leaving $1.50 billion of authorization remaining under
the Company's share repurchase program at March 31, 2016. The
Company expects to complete its share repurchase program by the end
of 2016, subject to market conditions.
Reconciliations of non-GAAP measures to reported results are
included at the end of this earnings release.
Consolidated and Segment Results (dollars in
millions)
The tables below present the Company's revenues by segment and
type, operating income (loss) excluding restructuring charges,
impairment charges, and other operating items, net by segment
("Segment Operating Income"), and depreciation and amortization by
segment for the three months ended March 31, 2016, and
2015.
|
Three Months
Ended
|
|
March
31,
|
Revenues by
Segment
|
2016
|
|
2015
|
Entertainment
|
$
|
2,587
|
|
|
$
|
2,261
|
|
Cable
Networks
|
525
|
|
|
539
|
|
Publishing
|
145
|
|
|
145
|
|
Local
Broadcasting
|
649
|
|
|
596
|
|
Eliminations
|
(57)
|
|
|
(41)
|
|
Total
Revenues
|
$
|
3,849
|
|
|
$
|
3,500
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
Revenues by
Type
|
2016
|
|
2015
|
Advertising
|
$
|
2,342
|
|
|
$
|
1,784
|
|
Content licensing and
distribution
|
729
|
|
|
1,028
|
|
Affiliate and
subscription fees
|
722
|
|
|
628
|
|
Other
|
56
|
|
|
60
|
|
Total
Revenues
|
$
|
3,849
|
|
|
$
|
3,500
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
Segment Operating
Income (Loss)
|
2016
|
|
2015
|
Entertainment
|
$
|
449
|
|
|
$
|
346
|
|
Cable
Networks
|
228
|
|
|
251
|
|
Publishing
|
13
|
|
|
12
|
|
Local
Broadcasting
|
206
|
|
|
161
|
|
Corporate
|
(84)
|
|
|
(68)
|
|
Adjusted Operating
Income
|
812
|
|
|
702
|
|
Other operating
items, net
|
9
|
|
|
19
|
|
Total Operating
Income
|
$
|
821
|
|
|
$
|
721
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
Depreciation and
Amortization
|
2016
|
|
2015
|
Entertainment
|
$
|
30
|
|
|
$
|
32
|
|
Cable
Networks
|
6
|
|
|
6
|
|
Publishing
|
1
|
|
|
1
|
|
Local
Broadcasting
|
19
|
|
|
21
|
|
Corporate
|
8
|
|
|
8
|
|
Total Depreciation
and Amortization
|
$
|
64
|
|
|
$
|
68
|
|
Entertainment (CBS Television Network, CBS Television
Studios, CBS Global Distribution Group, CBS Interactive, and CBS
Films)
Entertainment revenues rose 14% to $2.59
billion for the first quarter of 2016 compared with
$2.26 billion for the same prior-year
period. Advertising revenues for the CBS Television Network grew
49%, driven by the broadcast of Super Bowl 50 and additional
NFL games as well as 12% growth in underlying advertising.
Additionally, affiliate and subscription fees grew 67% for the
first quarter. These increases were partially offset by lower
content licensing and distribution revenues as the first quarter of
2015 benefited from significant domestic licensing sales of
NCIS and CSI.
Entertainment operating income for the first quarter of 2016 was
$449 million, up 30% from
$346 million for the same prior-year
period, driven by revenue growth.
Cable Networks (Showtime Networks, CBS Sports Network,
and Smithsonian Networks)
Cable Networks revenues for the first quarter of 2016 were
$525 million compared with
$539 million for the same prior-year
period, which included the initial benefit from a significant
multiyear licensing agreement with Bell Media in Canada. Revenue growth from new digital
distribution platforms partially offset the decline.
Cable Networks operating income for the first quarter of 2016
was $228 million compared with
$251 million for the same prior-year
period, primarily reflecting lower international licensing revenues
and incremental costs associated with the 2016 series premiere of
Billions on Showtime.
Publishing (Simon & Schuster)
Publishing revenues of $145
million for the first quarter of 2016 were even with the
same prior-year period. Digital revenues represented 28% of
Publishing's total revenues for the first quarter of 2016.
Best-selling titles included Lady Midnight: The Dark
Artifices by Cassandra Clare and
As Time Goes By by Mary Higgins
Clark.
Publishing operating income of $13
million for the first quarter of 2016 grew from $12 million in the first quarter of 2015,
primarily reflecting lower production and selling costs.
Local Broadcasting (CBS Television Stations and CBS
Radio)
Local Broadcasting revenues of $649
million for the first quarter of 2016 were up 9% from
$596 million in the same prior-year
period. The growth was the result of an 18% increase at CBS
Television Stations, reflecting the broadcast of Super Bowl
50 on CBS, higher political advertising sales, and growth in
retransmission revenues. These increases were partially offset by
lower radio revenues, which decreased 2%.
Local Broadcasting operating income for the first quarter of
2016 increased 28% to $206 million
from $161 million for the same
prior-year period. The increase was driven by higher revenues as
well as lower expenses as a result of restructuring activities the
Company put in place to create efficiencies.
Corporate
Corporate expenses for the first quarter of 2016 increased
$16 million to $84 million from $68
million for the same prior-year period, mainly because of
higher pension and other employee-related costs.
About CBS Corporation
CBS Corporation (NYSE: CBS.A and CBS) is a mass media company
that creates and distributes industry-leading content across a
variety of platforms to audiences around the world. The Company has
businesses with origins that date back to the dawn of the
broadcasting age as well as new ventures that operate on the
leading edge of media. CBS owns the most-watched television network
in the U.S. and one of the world's largest libraries of
entertainment content, making its brand -"the Eye" - one of the
most recognized in business. The Company's operations span
virtually every field of media and entertainment, including cable,
publishing, radio, local TV, film, and interactive and socially
responsible media. CBS's businesses include CBS Television Network,
The CW (a joint venture between CBS Corporation and Warner Bros.
Entertainment), CBS Television Studios, CBS Global Distribution
Group (CBS Studios International and CBS Television Distribution),
CBS Consumer Products, CBS Home Entertainment, CBS Interactive, CBS
Films, Showtime Networks, CBS Sports Network, Pop (a joint venture
between CBS Corporation and Lionsgate), Smithsonian Networks, Simon
& Schuster, CBS Television Stations, CBS Radio and CBS
EcoMedia. For more information, go to www.cbscorporation.com.
Cautionary Statement Concerning Forward-Looking
Statements
This news release contains both historical and
forward-looking statements. All statements other than statements of
historical fact are, or may be deemed to be, forward-looking
statements within the meaning of section 27A of the Securities Act
of 1933 and section 21E of the Securities Exchange Act of 1934.
These forward-looking statements are not based on historical facts,
but rather reflect the Company's current expectations concerning
future results and events. Similarly, statements that describe our
objectives, plans or goals are or may be forward-looking
statements. These forward-looking statements involve known and
unknown risks, uncertainties and other factors that are difficult
to predict and which may cause the actual results, performance or
achievements of the Company 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: advertising market conditions generally; changes in
the public acceptance of the Company's programming; changes in
technology and its effect on competition in the Company's markets;
changes in the Federal Communications laws and regulations; the
ability to achieve the separation of the Company's radio business
on terms that the Company finds acceptable; the impact of piracy on
the Company's products; the impact of the consolidation in the
market for the Company's programming; the impact of negotiations or
the loss of affiliation agreements or retransmission agreements;
other domestic and global economic, business, competitive and/or
other regulatory factors affecting the Company's businesses
generally; the impact of union activity, including possible strikes
or work stoppages or the Company's inability to negotiate favorable
terms for contract renewals; and other factors described in the
Company's filings with the Securities and Exchange Commission
including but not limited to the Company's most recent Form 10-K,
Form 10-Qs and Form 8-Ks. The forward-looking statements included
in this document are made only as of the date of this document, and
under section 27A of the Securities Act and section 21E of the
Exchange Act, we do not have any obligation to publicly update any
forward-looking statements to reflect subsequent events or
circumstances.
CBS CORPORATION
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited; in
millions, except per share amounts)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2016
|
|
2015
|
|
|
|
|
Revenues
|
$
|
3,849
|
|
|
$
|
3,500
|
|
Operating
income
|
821
|
|
|
721
|
|
Interest
expense
|
(100)
|
|
|
(93)
|
|
Interest
income
|
7
|
|
|
5
|
|
Other items,
net
|
(3)
|
|
|
(23)
|
|
Earnings before
income taxes
|
725
|
|
|
610
|
|
Provision for income
taxes
|
(231)
|
|
|
(203)
|
|
Equity in loss of
investee companies, net of tax
|
(21)
|
|
|
(13)
|
|
Net
earnings
|
$
|
473
|
|
|
$
|
394
|
|
|
|
|
|
Basic net earnings
per common share
|
$
|
1.03
|
|
|
$
|
.79
|
|
|
|
|
|
Diluted net
earnings per common share
|
$
|
1.02
|
|
|
$
|
.78
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
Basic
|
459
|
|
|
498
|
|
Diluted
|
464
|
|
|
506
|
|
|
|
|
|
Dividends per
common share
|
$
|
.15
|
|
|
$
|
.15
|
|
CBS CORPORATION
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Unaudited; in
millions)
|
|
|
At
|
|
|
At
|
|
|
March 31,
2016
|
|
December 31,
2015
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
411
|
|
|
|
|
$
|
323
|
|
|
Receivables,
net
|
|
3,678
|
|
|
|
|
3,628
|
|
|
Programming and other
inventory
|
|
822
|
|
|
|
|
1,271
|
|
|
Prepaid expenses and
other current assets
|
|
623
|
|
|
|
|
525
|
|
|
Total current
assets
|
|
5,534
|
|
|
|
|
5,747
|
|
|
Property and
equipment
|
|
3,248
|
|
|
|
|
3,243
|
|
|
Less accumulated
depreciation and amortization
|
|
1,872
|
|
|
|
|
1,838
|
|
|
Net property and
equipment
|
|
1,376
|
|
|
|
|
1,405
|
|
|
Programming and other
inventory
|
|
2,023
|
|
|
|
|
1,957
|
|
|
Goodwill
|
|
6,533
|
|
|
|
|
6,481
|
|
|
Intangible
assets
|
|
5,509
|
|
|
|
|
5,514
|
|
|
Other
assets
|
|
2,526
|
|
|
|
|
2,661
|
|
|
Total
Assets
|
|
$
|
23,501
|
|
|
|
|
$
|
23,765
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
196
|
|
|
|
|
$
|
192
|
|
|
Participants' share
and royalties payable
|
|
987
|
|
|
|
|
1,013
|
|
|
Program
rights
|
|
520
|
|
|
|
|
374
|
|
|
Current portion of
long-term debt
|
|
23
|
|
|
|
|
222
|
|
|
Accrued expenses and
other current liabilities
|
|
1,658
|
|
|
|
|
1,759
|
|
|
Total current
liabilities
|
|
3,384
|
|
|
|
|
3,560
|
|
|
Long-term
debt
|
|
8,226
|
|
|
|
|
8,226
|
|
|
Other
liabilities
|
|
6,340
|
|
|
|
|
6,344
|
|
|
Liabilities of
discontinued operations
|
|
68
|
|
|
|
|
72
|
|
|
Total Stockholders'
Equity
|
|
5,483
|
|
|
|
|
5,563
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
23,501
|
|
|
|
|
$
|
23,765
|
|
|
CBS CORPORATION
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited; in
millions)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2016
|
|
2015
|
Operating
Activities:
|
|
|
|
Net
earnings
|
$
|
473
|
|
|
$
|
394
|
|
Adjustments to
reconcile net earnings to net cash flow provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
64
|
|
|
68
|
|
Stock-based
compensation
|
43
|
|
|
46
|
|
Equity in loss of
investee companies, net of tax and distributions
|
22
|
|
|
13
|
|
Change in assets and
liabilities, net of investing and financing activities
|
426
|
|
|
(104)
|
|
Net cash flow
provided by operating activities
|
1,028
|
|
|
417
|
|
Investing
Activities:
|
|
|
|
Acquisitions
|
(50)
|
|
|
(1)
|
|
Capital
expenditures
|
(38)
|
|
|
(17)
|
|
Investments in and
advances to investee companies
|
(32)
|
|
|
(39)
|
|
Proceeds from
dispositions
|
29
|
|
|
59
|
|
Other investing
activities
|
(7)
|
|
|
3
|
|
Net cash flow (used
for) provided by investing activities from continuing
operations
|
(98)
|
|
|
5
|
|
Net cash flow used
for investing activities from discontinued operations
|
—
|
|
|
(3)
|
|
Net cash flow (used
for) provided by investing activities
|
(98)
|
|
|
2
|
|
Financing
Activities:
|
|
|
|
Repayments of
short-term debt borrowings, net
|
—
|
|
|
(616)
|
|
Proceeds from
issuance of senior notes
|
—
|
|
|
1,178
|
|
Repayment of senior
debentures
|
(200)
|
|
|
—
|
|
Payment of capital
lease obligations
|
(4)
|
|
|
(4)
|
|
Dividends
|
(73)
|
|
|
(80)
|
|
Purchase of Company
common stock
|
(533)
|
|
|
(1,049)
|
|
Payment of payroll
taxes in lieu of issuing shares for stock-based
compensation
|
(46)
|
|
|
(82)
|
|
Proceeds from
exercise of stock options
|
6
|
|
|
80
|
|
Excess tax benefit
from stock-based compensation
|
8
|
|
|
57
|
|
Net cash flow used
for financing activities
|
(842)
|
|
|
(516)
|
|
Net increase
(decrease) in cash and cash equivalents
|
88
|
|
|
(97)
|
|
Cash and cash
equivalents at beginning of period
|
323
|
|
|
428
|
|
Cash and cash
equivalents at end of period
|
$
|
411
|
|
|
$
|
331
|
|
CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL
DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(Unaudited; in millions)
Adjusted Operating Income and Segment Operating Income
The following table sets forth the Company's Adjusted Operating
Income for the three months ended March 31,
2016 and 2015. The Company defines "Adjusted Operating
Income" as operating income excluding restructuring charges,
impairment charges, and other operating items, net, where
applicable. For each individual reportable segment Adjusted
Operating Income is also known as "Segment Operating Income". The
Company presents Segment Operating Income as the primary measure of
profit and loss for its reportable segments in accordance with FASB
guidance for segment reporting.
The Company uses Adjusted Operating Income (or Segment Operating
Income for each segment), as well as Adjusted Operating Income
Margin, to, among other things, evaluate the Company's operating
performance, to value prospective acquisitions and as one of
several components of incentive compensation targets for certain
management personnel. These measures are among the primary measures
used by management for planning and forecasting of future periods,
and they are important indicators of the Company's operational
strength and business performance because they provide a link
between profitability and operating cash flow. The Company believes
these measures are relevant and useful for investors because they
allow investors to view performance in a manner similar to the
method used by the Company's management, help improve investors'
understanding of the Company's operating performance, and make it
easier for investors to compare the Company's results with other
companies that have different financing and capital structures or
tax rates. In addition, these are among the primary measures used
externally by the Company's investors, analysts and industry peers
for purposes of valuation and for the comparison of the Company's
operating performance to other companies in its industry, and to
compare the Company's year-over-year results.
Because Adjusted Operating Income is a measure of performance
not calculated in accordance with accounting principles generally
accepted in the United States
("GAAP"), it should not be considered in isolation of, or as a
substitute for, operating income or net earnings as an indicator of
operating performance. Adjusted Operating Income, as the Company
calculates it, may not be comparable to similarly titled measures
employed by other companies. In addition, this measure does not
necessarily represent funds available for discretionary use and is
not necessarily a measure of the Company's ability to fund its cash
needs. As Adjusted Operating Income excludes certain financial
information that is included in operating income and net earnings,
the most directly comparable GAAP financial measures, users of this
financial information should consider the types of events and
transactions which are excluded. The Company provides the following
reconciliation of Adjusted Operating Income to operating income and
net earnings.
|
Three Months
Ended
March 31,
|
|
2016
|
|
2015
|
Adjusted Operating
Income
|
$
|
812
|
|
|
$
|
702
|
|
Other operating
items, net
|
9
|
|
|
19
|
|
Operating
income
|
821
|
|
|
721
|
|
Interest
expense
|
(100)
|
|
|
(93)
|
|
Interest
income
|
7
|
|
|
5
|
|
Other items,
net
|
(3)
|
|
|
(23)
|
|
Earnings before
income taxes
|
725
|
|
|
610
|
|
Provision for income
taxes
|
(231)
|
|
|
(203)
|
|
Equity in loss of
investee companies, net of tax
|
(21)
|
|
|
(13)
|
|
Net
earnings
|
$
|
473
|
|
|
$
|
394
|
|
CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL
DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(continued)
(Unaudited; in millions)
Free Cash Flow
The Company defines free cash flow as its net cash flow provided
by (used for) operating activities before operating cash flow from
discontinued operations and less capital expenditures. The
Company's calculation of free cash flow includes capital
expenditures because investment in capital expenditures is a use of
cash that is directly related to the Company's operations. The
Company's net cash flow provided by (used for) operating activities
is the most directly comparable GAAP financial measure.
Management believes free cash flow provides investors with an
important perspective on the cash available to the Company to
service debt, make strategic acquisitions and investments, maintain
its capital assets, satisfy its tax obligations, and fund ongoing
operations and working capital needs. As a result, free cash flow
is a significant measure of the Company's 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 the
Company's operating performance. The Company believes the
presentation of free cash flow is relevant and useful for investors
because it allows investors to evaluate the cash generated from the
Company's underlying operations in a manner similar to the method
used by management. Free cash flow is one of several components of
incentive compensation targets for certain management personnel. In
addition, free cash flow is a primary measure used externally by
the Company's investors, analysts and industry peers for purposes
of valuation and comparison of the Company's operating performance
to other companies in its 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 (used for)
operating activities as a measure of liquidity or net earnings as a
measure of operating performance. Free cash flow, as the Company
calculates 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 the Company's ability to
fund its cash needs. When comparing free cash flow to net cash flow
provided by (used for) operating activities, the most directly
comparable GAAP financial measure, users of this financial
information should consider the types of events and transactions
that are not reflected in free cash flow.
The following table presents a reconciliation of the Company's
net cash flow provided by (used for) operating activities to free
cash flow:
|
Three Months
Ended
|
|
March
31,
|
|
2016
|
|
2015
|
Net cash flow
provided by operating activities
|
$
|
1,028
|
|
|
$
|
417
|
|
Capital
expenditures
|
(38)
|
|
|
(17)
|
|
Free cash
flow
|
$
|
990
|
|
|
$
|
400
|
|
The following table presents a summary of the Company's cash
flows:
|
Three Months
Ended
|
|
March
31,
|
|
2016
|
|
2015
|
Net cash flow
provided by operating activities
|
$
|
1,028
|
|
|
$
|
417
|
|
Net cash flow (used
for) provided by investing activities
|
$
|
(98)
|
|
|
$
|
2
|
|
Net cash flow used
for financing activities
|
$
|
(842)
|
|
|
$
|
(516)
|
|
CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL
DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(continued)
(Unaudited; in millions, except per share
amounts)
2016 and 2015 Adjusted Results
The following tables reconcile adjusted financial results to the
reported results included in this earnings release. The Company
believes that adjusting its financial results for the impact of
these items is relevant and useful for investors because it allows
investors to view performance in a manner similar to the method
used by the Company's management; provides a clearer perspective on
the underlying performance of the Company; makes it easier for
investors, analysts, and peers to compare the Company's operating
performance to other companies in its industry; and adjusting each
period's results on the same basis makes it easier to compare the
Company's year-over-year results.
|
Three Months Ended
March 31, 2016
|
|
2016
Reported
|
|
Other
Operating
Items (a)
|
|
Write-down of
Investment (b)
|
|
2016
Adjusted
|
|
Revenues
|
$
|
3,849
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,849
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
821
|
|
|
(9)
|
|
|
—
|
|
|
812
|
|
|
Operating income
margin (c)
|
21
|
%
|
|
|
|
|
|
21
|
%
|
|
Interest
expense
|
(100)
|
|
|
—
|
|
|
—
|
|
|
(100)
|
|
|
Interest
income
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
Other items,
net
|
(3)
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
Earnings before
income taxes
|
725
|
|
|
(9)
|
|
|
—
|
|
|
716
|
|
|
Provision for income
taxes
|
(231)
|
|
|
4
|
|
|
—
|
|
|
(227)
|
|
|
Effective income tax
rate
|
31.9
|
%
|
|
|
|
|
|
31.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Equity in loss of
investee companies, net of tax
|
(21)
|
|
|
—
|
|
|
6
|
|
|
(15)
|
|
|
Net
earnings
|
$
|
473
|
|
|
$
|
(5)
|
|
|
$
|
6
|
|
|
$
|
474
|
|
|
Diluted
EPS
|
$
|
1.02
|
|
|
$
|
(.01)
|
|
|
$
|
.01
|
|
|
$
|
1.02
|
|
|
Diluted weighted
average number of common shares outstanding
|
464
|
|
|
|
|
|
|
464
|
|
|
|
Three Months Ended
March 31, 2015
|
|
2015
Reported
|
|
Other
Operating
Items (a)
|
|
2015
Adjusted
|
|
Revenues
|
$
|
3,500
|
|
|
$
|
—
|
|
|
$
|
3,500
|
|
|
|
|
|
|
|
|
|
Operating
income
|
721
|
|
|
(19)
|
|
|
702
|
|
|
Operating income
margin (c)
|
21
|
%
|
|
|
|
20
|
%
|
|
Interest
expense
|
(93)
|
|
|
—
|
|
|
(93)
|
|
|
Interest
income
|
5
|
|
|
—
|
|
|
5
|
|
|
Other items,
net
|
(23)
|
|
|
—
|
|
|
(23)
|
|
|
Earnings before
income taxes
|
610
|
|
|
(19)
|
|
|
591
|
|
|
Provision for income
taxes
|
(203)
|
|
|
16
|
|
|
(187)
|
|
|
Effective income tax
rate
|
33.3
|
%
|
|
|
|
31.6
|
%
|
|
|
|
|
|
|
|
|
Equity in loss of
investee companies, net of tax
|
(13)
|
|
|
—
|
|
|
(13)
|
|
|
Net
earnings
|
$
|
394
|
|
|
$
|
(3)
|
|
|
$
|
391
|
|
|
Diluted
EPS
|
$
|
.78
|
|
|
$
|
(.01)
|
|
|
$
|
.77
|
|
|
Diluted weighted
average number of common shares outstanding
|
506
|
|
|
|
|
506
|
|
|
|
|
(a)
|
Reflects gains on the
sales of Internet businesses in China. 2016 also includes a
multiyear, retroactive impact of a new operating tax.
|
(b)
|
Reflects the
write-down of an international television joint venture to its fair
value.
|
(c)
|
Operating income
margin is defined as operating income or Adjusted Operating Income
divided by revenues.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cbs-corporation-reports-first-quarter-2016-results-300261935.html
SOURCE CBS Corporation