Viacom Reports Results For First Quarter 2013

                Viacom Reports Results For First Quarter 2013

PR Newswire

NEW YORK, Jan. 31, 2013

NEW YORK, Jan. 31, 2013 /PRNewswire-FirstCall/ --

Fiscal Year 2013 Results
                                                 Quarter Ended
                                                 December 31,         B/(W)
                                                                      2012 vs.
(in millions, except per share amounts)             2012     2011     2011
Revenues                                         $  3,314    $ 3,952  (16)  %
Operating income                                    797        1,016  (22)
Net earnings from continuing operations             473        591    (20)
attributable to Viacom
Adjusted net earnings from continuing               461        591    (22)
operations attributable to Viacom*
Diluted EPS from continuing operations              0.93       1.06   (12)
Adjusted diluted EPS from continuing             $  0.91     $ 1.06   (14)  %
operations*
* Adjusted measures referenced in this release are detailed in the
Supplemental Disclosures at the end of this release.

Viacom Inc. (NASDAQ: VIAB, VIA) today reported financial results for the
fiscal first quarter, which ended December 31, 2012. Revenues decreased 16%
to $3.31 billion, driven primarily by lower Filmed Entertainment revenues due
to the timing and mix of releases.Operating income and adjusted net earnings
from continuing operations attributable to Viacom declined 22% to $797 million
and $461 million, respectively, reflecting lower Filmed Entertainment results
and a decline in Media Networks advertising revenues, partially offset by
increased affiliate revenues. Adjusted diluted earnings per share from
continuing operations decreased 14% to $0.91 per diluted share.

(Logo:http://photos.prnewswire.com/prnh/20110811/NY51392LOGO)

Sumner M. Redstone, Executive Chairman of Viacom, said, "Viacom continues to
build on its impressive global portfolio of movies, television programming and
digital content. Philippe leads a talented executive and creative team at
Viacom, and I am fully confident that by investing in new hits we will
continue to build our outstanding brands and deliver strong value to
shareholders."

Philippe Dauman, President and Chief Executive Officer of Viacom, said,
"Throughout the quarter, we kept our focus on creative excellence and
strategic programming investment. Our ongoing investments in programming
continue to produce results, with positive ratings trends and growing consumer
engagement in new hit content, despite difficult short-term comparisons based
on the mix of film releases and the lingering effect of ratings softness last
year. Our television brands continue to be highly valued by distribution
partners, highlighted by our double digit organic affiliate revenue growth.
Paramount is well positioned for the future, with several upcoming tentpole
releases, including G.I. Joe: Retaliation, Pain & Gain, Star Trek Into
Darkness and World War Z. In addition, we are working closely with existing
distribution partners and new digital distributors to continue to launch
robust and consumer-friendly content experiences.

"Viacom's ability to generate significant cash flow permits us to continuously
invest in our businesses and deliver value directly to shareholders through
our share repurchase and dividend programs. Viacom's strong balance sheet has
provided the flexibility to tap the financing markets and lower our average
cost of debt."

Revenues
                       Quarter Ended
                       December 31,      B/(W)
                                         2012 vs.
(in millions)            2012   2011     2011
Media Networks         $ 2,394  $ 2,448  (2)   %
Filmed Entertainment     975      1,558  (37)
Eliminations             (55)     (54)   NM
 Total revenues  $ 3,314  $ 3,952  (16)  %
NM - Not Meaningful

Quarterly revenues of $3.31 billion represented a 16% decline from the prior
year. Media Networks revenues decreased 2% to $2.39 billion, driven by lower
advertising revenues, partially offset by increased affiliate revenues.
Domestic and worldwide advertising revenues each decreased 6%. The decline in
domestic advertising revenues was driven by lower ratings. Domestic affiliate
revenues increased 4%. Excluding the impact of digital distribution
arrangements, which are affected by the timing of available programming, the
domestic affiliate revenue growth rate was in the low-double digits.
Worldwide affiliate fees increased 3%.

Filmed Entertainment revenues were down 37% to $975 million. Worldwide
theatrical revenues decreased 42% in the quarter to $328 million, principally
reflecting the difficult comparison against the prior year release of Mission:
Impossible – Ghost Protocol, as well as the year over year comparison of
revenue from third-party theatrical releases. Worldwide home entertainment
revenues declined 43%, principally resulting from fewer releases in the
quarter compared to the first quarter of 2012. The decline in home
entertainment revenues also reflects lower carryover revenues from the prior
period release of Transformers: Dark of the Moon. Television license fees
decreased 24% to $227 million in the quarter.

Operating Income (Loss)
                           Quarter Ended
                           December 31,      B/(W)
                                             2012 vs.
(in millions)                2012   2011     2011
Media Networks             $ 1,030  $ 1,129  (9)   %
Filmed Entertainment         (139)    (31)   NM
Corporate expenses           (60)     (53)   (13)
Equity-based compensation    (31)     (29)   (7)
Eliminations                 (3)      -      NM
Operating income           $ 797    $ 1,016  (22)  %
NM - Not Meaningful

Quarterly operating income decreased 22% to $797 million in the quarter,
reflecting lower overall revenues from the timing and mix of Filmed
Entertainment releases, as well as lower revenues and increased investments in
programming at Media Networks.

Quarterly adjusted net earnings from continuing operations attributable to
Viacom declined $130 million, or 22%, in the quarter, principally due to the
decline in operating income. Adjusted diluted earnings per share from
continuing operations for the quarter were $0.91, a 14% decline from the prior
year's comparable quarter.

Stock Repurchase Program

For the quarter ended December 31, 2012, Viacom repurchased 13.3 million
shares under its stock repurchase program, for an aggregate purchase price of
$700 million. As of December 31, 2012, Viacom had 496 million shares of
Common stock outstanding. As of January 30, 2013, Viacom had $3.85 billion
remaining in its $10 billion stock repurchase program.

Debt

At December 31, 2012, total debt outstanding, including capital lease
obligations, was $8.39 billion, compared with $8.15 billion at September 30,
2012. The Company's cash balances were $671 million at December 31, 2012, a
decrease from $848 million at September 30, 2012.

About Viacom

Viacom is home to the world's premier entertainment brands that connect with
audiences through compelling content across television, motion picture, online
and mobile platforms in over 160 countries and territories. With media
networks reaching approximately 700 million global subscribers, Viacom's
leading brands include MTV, VH1, CMT, Logo, BET, CENTRIC, Nickelodeon, Nick
Jr., TeenNick, Nicktoons, Nick at Nite, COMEDY CENTRAL, TV Land, SPIKE, Tr3s,
Paramount Channel and VIVA. Paramount Pictures, America's oldest film studio
and creator of many of the most beloved motion pictures, continues today as a
major global producer and distributor of filmed entertainment. Viacom operates
a large portfolio of branded digital media experiences, including many of the
world's most popular properties for entertainment, community and casual online
gaming.

For more information about Viacom and its businesses, visit www.viacom.com.
Keep up with Viacom news by following Viacom's blog at blog.viacom.com and
Twitter feed at www.twitter.com/Viacom.

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 the
Company's 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 actual results,
performance or achievements to differ. These risks, uncertainties and other
factors include, among others: the public acceptance of the Company's
programs, motion pictures and other entertainment content on the various
platforms on which they are distributed; technological developments and their
effect in the Company's markets and on consumer behavior; competition for
audiences and distribution; the impact of piracy; economic conditions
generally, and in advertising and retail markets in particular; fluctuations
in the Company's results due to the timing, mix and availability of the
Company's motion pictures and other programming; changes in the Federal
communications laws and regulations; other domestic and global economic,
business, competitive and/or regulatory factors affecting the Company's
businesses generally; and other factors described in the Company's news
releases and filings with the Securities and Exchange Commission, including
but not limited to its 2012 Annual Report on Form 10-K and reports on Form
10-Q and Form 8-K. The forward-looking statements included in this document
are made only as of the date of this document, and the Company does not have
any obligation to publicly update any forward-looking statements to reflect
subsequent events or circumstances. If applicable, reconciliations for any
non-GAAP financial information contained in this news release are included in
this news release or available on the Company's website at
http://www.viacom.com .

VIACOM INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
                                                            Quarter Ended
                                                            December 31,
(in millions, except per share amounts)                     2012      2011
Revenues                                                    $ 3,314   $ 3,952
Expenses:
 Operating                                              1,763     2,185
 Selling, general and administrative                    697       689
 Depreciation and amortization                          57        62
 Total expenses                                         2,517     2,936
Operating income                                              797       1,016
Interest expense, net                                         (110)     (105)
Equity in net earnings of investee companies                  24        10
Other items, net                                              7         (4)
Earnings from continuing operations before provision for      718       917
income taxes
Provision for income taxes                                    (236)     (316)
Net earnings from continuing operations                       482       601
Discontinued operations, net of tax                           (3)       (379)
Net earnings (Viacom and noncontrolling interests)            479       222
Net earnings attributable to noncontrolling interests         (9)       (10)
Net earnings attributable to Viacom                         $ 470     $ 212
Amounts attributable to Viacom:
 Net earnings from continuing operations               $ 473     $ 591
 Discontinued operations, net of tax                     (3)       (379)
 Net earnings attributable to Viacom                   $ 470     $ 212
Basic earnings per share attributable to Viacom:
 Continuing operations                                 $ 0.94    $ 1.07
 Discontinued operations                                 -         (0.68)
 Net earnings                                          $ 0.94    $ 0.39
Diluted earnings per share attributable to Viacom:
 Continuing operations                                 $ 0.93    $ 1.06
 Discontinued operations                                 (0.01)    (0.68)
 Net earnings                                          $ 0.92    $ 0.38
Weighted average number of common shares outstanding:
 Basic                                                   501.5     550.6
 Diluted                                                 509.1     557.2
Dividends declared per share of Class A and Class B common  $ 0.275   $ 0.25
stock





VIACOM INC.
CONSOLIDATED BALANCE SHEETS
                                                December 31,    September 30,
(in millions, except par value)                 2012            2012
                                                (Unaudited)
ASSETS
Current assets:
 Cash and cash equivalents          $ 671           $ 848
 Receivables, net                     2,602           2,533
 Inventory, net                       797             832
 Deferred tax assets, net             68              68
 Prepaid and other assets             485             572
 Total current assets      4,623           4,853
Property and equipment, net                     1,046           1,068
Inventory, net                                  4,105           4,205
Goodwill                                        11,067          11,045
Intangibles, net                                322             328
Other assets                                    734             751
Total assets                                  $ 21,897        $ 22,250
LIABILITIES AND EQUITY
Current liabilities:
 Accounts payable                   $ 193           $ 255
 Accrued expenses                     913             943
 Participants' share and residuals    1,166           989
 Program rights obligations           588             569
 Deferred revenue                     210             230
 Current portion of debt              18              18
 Other liabilities                    634             826
 Total current             3,722           3,830
liabilities
Noncurrent portion of debt                      8,371           8,131
Participants' share and residuals               378             533
Program rights obligations                      571             642
Deferred tax liabilities, net                   70              5
Other liabilities                               1,454           1,491
Redeemable noncontrolling interest              175             179
Commitments and contingencies
Viacom stockholders' equity:
 Class A Common stock, par value
$0.001, 375.0 authorized; 51.1 and 51.1
 outstanding, respectively       -               -
 Class B Common stock, par value
$0.001, 5,000.0 authorized; 445.2 and 455.9
 outstanding, respectively       -               1
 Additional paid-in capital           8,997           8,916
 Treasury stock, 280.4 and 267.1      (11,725)        (11,025)
common shares held in treasury, respectively
 Retained earnings                    10,149          9,820
 Accumulated other comprehensive      (256)           (264)
loss
 Total Viacom              7,165           7,448
stockholders' equity
Noncontrolling interests                        (9)             (9)
Total equity                                    7,156           7,439
Total liabilities and equity                  $ 21,897        $ 22,250





SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION

The following table reconciles the Company's results for the quarter ended
December 31, 2012 to adjusted results that exclude the impact of certain items
identified as affecting comparability ("Factors Affecting Comparability"),
including discrete tax benefits. The Company uses consolidated adjusted
operating income, adjusted net earnings from continuing operations
attributable to Viacom and adjusted diluted earnings per share ("EPS") from
continuing operations, as applicable, among other measures, to evaluate the
Company's actual operating performance and for planning and forecasting of
future periods. The Company believes that the adjusted results provide
relevant and useful information for investors because they clarify the
Company's actual operating performance, make it easier to compare Viacom's
results with those of other companies and allow investors to review
performance in the same way as our management. Since these are not measures
of performance calculated in accordance with accounting principles generally
accepted in the United States of America, they should not be considered in
isolation of, or as a substitute for, operating income, net earnings from
continuing operations attributable to Viacom and diluted EPS as indicators of
operating performance, and they may not be comparable to similarly titled
measures employed by other companies.



(in millions,
except per share
amounts)
                 Quarter Ended
                 December 31, 2012
                                                                   Diluted EPS
                                Pre-tax            Net Earnings    from
                                Earnings           from
                   Operating    from Continuing    Continuing      Continuing
                                                   Operations
                   Income       Operations^(1)     Attributable    Operations
                                                   to Viacom
Reported results $ 797        $ 718              $ 473           $ 0.93
Factors
Affecting
Comparability:

Discrete tax       -            -                  (12)           (0.02)
benefits ^(2)
Adjusted results $ 797        $ 718              $ 461           $ 0.91

(1) Pre-tax earnings from continuing operations represent earnings before
    provision for income taxes.
    Adjusted results for the quarter ended December 31, 2012 exclude $12
(2) million of discrete tax benefits. The benefits recognized in the quarter
    principally reflect the release of tax reserves with respect to certain
    effectively settled tax positions.

SOURCE Viacom Inc.

Website: http://www.viacom.com
Contact: Press: Jeremy Zweig, Vice President, Corporate Communications,
+1-212-846-7503, jeremy.zweig@viacom.com, or Mark Jafar, Vice President,
Corporate Communications, +1-212-846-8961, mark.jafar@viacom.com; or
Investors: James Bombassei, Senior Vice President, Investor Relations,
+1-212-258-6377, james.bombassei@viacom.com, or Pamela Yi, Director, Investor
Relations, +1-212-846-7581, pamela.yi@viacom.com
 
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