ViacomCBS Reports Q4 and Full Year 2020 Earnings Results
ViacomCBS Reports Q4 and Full Year 2020 Earnings Results
February 24, 2021
- Grew Global Streaming Subscribers to Nearly 30M and Pluto TV Global MAUs to 43M; Domestic Streaming Subscribers Rose to 19.2M, up 71% Year-Over-Year, and Pluto TV Domestic MAUs Increased to 30.1M
- Accelerated Domestic Streaming & Digital Video Revenue Growth to 72% Year-Over-Year in Q4, Driven by Strong Streaming Subscription and Streaming Advertising Revenue
- Increased Q4 Affiliate Revenue 13% Year-Over-Year and Advertising Revenue 4% Year-Over-Year, Driving a 3% Year-Over-Year Increase in Total Revenue
- Delivered Year-Over-Year Improvements in Q4 Operating Income, Adjusted OIBDA, Operating Cash Flow From Continuing Operations and Free Cash Flow
- Hosting Virtual Investor Event Today, Detailing Paramount+ – a
Differentiated Streaming Offering Spanning Live Sports ,Breaking News and a Mountain of Entertainment – Ahead ofMarch 4 Launch
Statement from
“We started 2020 with clear goals: unlock the power of our combination, build robust operating momentum and accelerate our streaming strategy – and we delivered. In Q4, despite the ongoing impacts of COVID-19, we finished the year with strong advertising and affiliate results that demonstrate the strength of our core businesses and achieved incredible growth across our linked streaming ecosystem, reaching nearly 30 million global subscribers and over 43 million Pluto TV global MAUs. At today’s streaming investor event, we look forward to showcasing our opportunity to expand our position and bring
Q4 & FULL YEAR 2020 RESULTS*
| Quarter Ended |
Full Year Ended |
|||||||||||||||||||||
| GAAP |
2020 |
2019 |
B/(W) | % |
2020 |
2019 |
B/(W) | % | ||||||||||||||
| Revenues | $ |
6,874 |
$ |
6,656 |
3 |
% | $ |
25,285 |
$ |
26,998 |
(6 |
) |
% | |||||||||
| Operating income (loss) |
1,083 |
(44 |
) |
N/M |
4,139 |
4,146 |
- |
|||||||||||||||
| Net earnings from continuing operations attributable to |
783 |
(302 |
) |
N/M |
2,305 |
3,168 |
(27 |
) |
||||||||||||||
| Diluted EPS from continuing operations attributable to |
1.26 |
(0.49 |
) |
N/M |
3.73 |
5.13 |
(27 |
) |
||||||||||||||
| Operating cash flow from continuing operations |
(339 |
) |
(530 |
) |
36 |
2,215 |
1,171 |
89 |
||||||||||||||
| Non-GAAP† | ||||||||||||||||||||||
| Adjusted OIBDA | $ |
1,183 |
$ |
1,131 |
5 |
% | $ |
5,132 |
$ |
5,393 |
(5 |
) |
% | |||||||||
| Adjusted net earnings from continuing operations attributable to |
645 |
570 |
13 |
2,595 |
2,983 |
(13 |
) |
|||||||||||||||
| Adjusted diluted EPS from continuing operations attributable to |
1.04 |
0.92 |
13 |
4.20 |
4.83 |
(13 |
) |
|||||||||||||||
| Free cash flow |
(453 |
) |
(629 |
) |
28 |
1,891 |
826 |
129 |
||||||||||||||
| $ 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, |
| N/M = Not Meaningful |
OVERVIEW OF Q4 REVENUE
REVENUE BY TYPE
- Affiliate revenue increased 13% year-over-year, driven by strong growth in streaming subscription revenue, higher reverse compensation and retransmission fees, as well as expanded distribution.
- Advertising revenue grew 4% year-over-year, reflecting higher streaming advertising and political advertising sales, which more than offset the adverse effects of COVID-19.
- Content licensing revenue decreased 3% year-over-year, reflecting a lower volume of licensing due to COVID-related production delays.
| Quarter Ended |
Full Year Ended |
||||||||||||||||||||||||||
|
2020 |
2019 |
$ | B/W | % |
2020 |
2019 |
$ | B/W | % | ||||||||||||||||||
| Advertising | $ |
3,145 |
$ |
3,030 |
$ |
115 |
4 |
% | $ |
9,751 |
$ |
11,074 |
$ |
(1,323 |
) |
(12 |
) |
% | |||||||||
| Domestic |
2,700 |
2,635 |
65 |
2 |
8,567 |
9,716 |
(1,149 |
) |
(12 |
) |
|||||||||||||||||
| International |
445 |
395 |
50 |
13 |
1,184 |
1,358 |
(174 |
) |
(13 |
) |
|||||||||||||||||
| Affiliate |
2,410 |
2,133 |
277 |
13 |
9,166 |
8,602 |
564 |
7 |
|||||||||||||||||||
| Domestic |
2,239 |
1,975 |
264 |
13 |
8,521 |
7,937 |
584 |
7 |
|||||||||||||||||||
| International |
171 |
158 |
13 |
8 |
645 |
665 |
(20 |
) |
(3 |
) |
|||||||||||||||||
|
1,246 |
1,281 |
(35 |
) |
(3 |
) |
5,963 |
6,483 |
(520 |
) |
(8 |
) |
||||||||||||||||
| Theatrical |
4 |
129 |
(125 |
) |
(97 |
) |
180 |
547 |
(367 |
) |
(67 |
) |
|||||||||||||||
| Other |
69 |
83 |
(14 |
) |
(17 |
) |
225 |
292 |
(67 |
) |
(23 |
) |
|||||||||||||||
| Total Revenues | $ |
6,874 |
$ |
6,656 |
$ |
218 |
3 |
% | $ |
25,285 |
$ |
26,998 |
$ |
(1,713 |
) |
(6 |
) |
% | |||||||||
| $ in millions | |||||||||||||||||||||||||||
SPOTLIGHT ON STREAMING
In Q4,
Q4 GLOBAL HIGHLIGHTS*
- Global streaming & digital video revenue increased 71% year-over-year to
$888M , driven by 74% growth in streaming subscription revenue and 69% streaming advertising revenue growth.- Domestic streaming & digital video revenue growth accelerated from 56% in Q3 to 72% in Q4, resulting in revenue of
$845M .
- Domestic streaming & digital video revenue growth accelerated from 56% in Q3 to 72% in Q4, resulting in revenue of
- Global streaming subscribers rose to nearly 30M, up 56% year-over-year.
- Domestic streaming subscribers reached 19.2M, up 71% year-over-year.
- CBS All Access and SHOWTIME OTT delivered their best quarter ever in sign-ups.
- CBS All Access’ momentum was driven by demand for sports content, including the NFL,
UEFA andSEC , as well as original programming, including Star Trek: Discovery and The Stand, and content fromViacomCBS cable brands. - SHOWTIME OTT benefitted from strong demand for original programming, including the premieres of Shameless and the limited series Your Honor, as well as theatricals.
- CBS All Access’ momentum was driven by demand for sports content, including the NFL,
- CBS All Access and SHOWTIME OTT delivered their best quarter ever in sign-ups.
- Domestic streaming subscribers reached 19.2M, up 71% year-over-year.
- Pluto TV grew its global monthly active users (MAUs) to 43M, up 80% year-over-year.
- Pluto TV’s domestic MAUs increased to 30.1M, up 34% year-over-year, and more than doubled its advertising revenue in the quarter.
- User engagement increased, with strong growth in total viewing minutes and average monthly watch time per user, including across connected TVs and mobile devices.
- Internationally, Pluto TV MAUs grew to 12.9M, including expanding in
Spain andBrazil during the quarter. - Pluto TV also closed new global distribution agreements with Samsung and
Google .
- Pluto TV’s domestic MAUs increased to 30.1M, up 34% year-over-year, and more than doubled its advertising revenue in the quarter.
|
* |
Beginning Q1 2021, streaming & digital video revenue will be presented as global streaming revenue, including global revenue from advertising on the company’s pay and free streaming services, subscription fees for its pay streaming services, and advertising and subscriptions for its other digital video products. Global subscribers include customers who access the company's domestic or international streaming services, either directly through its owned and operated apps and websites, or through third-party distributors. Streaming metrics are as of |
STREAMING & DIGITAL VIDEO REVENUE
| GLOBAL (Includes Domestic Revenue) |
2020 |
2019 |
$ | B/W | % | ||||
| Quarter Ended |
$ |
888 |
$ |
519 |
|
71 |
% |
||
| Full Year Ended |
$ |
2,561 |
$ |
1,714 |
|
49 |
% |
||
| DOMESTIC |
2020 |
2019 |
$ | B/W | % | ||||
| Quarter Ended |
$ |
845 |
$ |
492 |
|
72 |
% |
||
| Full Year Ended |
$ |
2,458 |
$ |
1,632 |
|
51 |
% |
||
| $ in millions | |||||||||
REPORTING SEGMENTS
TV ENTERTAINMENT
- In Q4,
CBS was the most-watched network in Daytime and Late Night and claimed the quarter’s top drama, news magazine and 4 of the top 5 comedies, as well as the top new comedy series. - Q4 2020 revenue benefitted from strong affiliate revenue growth, which was offset by lower content licensing revenue.
- Affiliate revenue increased 23% year-over-year, driven by growth in reverse compensation and retransmission fees, as well as robust streaming subscription revenue from CBS All Access.
- Advertising revenue declined 1% year-over-year, reflecting the impacts from the delayed start of the fall broadcast season and the sale of
CNET Media Group , which was offset by record growth in political advertising. - Content licensing revenue decreased 20% year-over-year due to a lower volume of licensing from COVID-related production delays.
- Adjusted OIBDA decreased 12% year-over-year mainly because of increased expenses to support the growth and expansion of CBS All Access.
| Quarter Ended |
Full Year Ended |
|||||||||||||||||||||||||
|
2020 |
2019 |
$ | B/W | % |
2020 |
2019 |
$ | B/W | % | |||||||||||||||||
| Revenue | $ |
3,112 |
$ |
3,126 |
$ |
(14 |
) |
- |
% | $ |
10,700 |
$ |
11,924 |
$ |
(1,224 |
) |
(10 |
) |
% | |||||||
| Advertising |
1,650 |
1,669 |
(19 |
) |
(1 |
) |
5,035 |
6,008 |
(973 |
) |
(16 |
) |
||||||||||||||
| Affiliate |
841 |
682 |
159 |
23 |
3,129 |
2,550 |
579 |
23 |
||||||||||||||||||
|
573 |
715 |
(142 |
) |
(20 |
) |
2,369 |
3,157 |
(788 |
) |
(25 |
) |
|||||||||||||||
| Other |
48 |
60 |
(12 |
) |
(20 |
) |
167 |
209 |
(42 |
) |
(20 |
) |
||||||||||||||
| Expenses |
2,563 |
2,501 |
(62 |
) |
(2 |
) |
8,843 |
9,481 |
638 |
7 |
||||||||||||||||
| Adjusted OIBDA | $ |
549 |
$ |
625 |
$ |
(76 |
) |
(12 |
) |
% | $ |
1,857 |
$ |
2,443 |
$ |
(586 |
) |
(24 |
) |
% | ||||||
| $ in millions | ||||||||||||||||||||||||||
CABLE NETWORKS
- In Q4,
ViacomCBS owned the most top 30 cable networks among viewers 18-49 and 9 of the top 10 original series with kids 2-11;Showtime also had 2 of the top 4 scripted shows on premium cable in the quarter. - Q4 2020 revenue increased 11% year-over-year, driven by growth in content licensing, affiliate and advertising revenue.
- Affiliate revenue increased 8% year-over-year, fueled by growth in streaming subscription revenue, including from SHOWTIME OTT, as well as expanded distribution and contractual rate increases, partially offset by linear subscriber declines.
- Advertising revenue rose 8% year-over-year, reflecting growth in streaming advertising revenue from Pluto TV as well as higher pricing, which more than offset lower linear impressions.
- Content licensing revenue increased 48% year-over-year, driven by growth from the licensing of library programming.
- Adjusted OIBDA grew 1% year-over-year as a result of the increase in revenue and savings from restructuring activities, which was mostly offset by increased expenses for programming, participations, advertising and promotions, including to support the growth of the company’s streaming services.
| Quarter Ended |
Full Year Ended |
||||||||||||||||||||||||
|
2020 |
2019 |
$ | B/W | % |
2020 |
2019 |
$ | B/W | % | ||||||||||||||||
| Revenue | $ |
3,438 |
$ |
3,088 |
$ |
350 |
11 |
% | $ |
12,589 |
$ |
12,449 |
$ |
140 |
1 |
% | |||||||||
| Advertising |
1,499 |
1,387 |
112 |
8 |
4,743 |
5,129 |
(386 |
) |
(8 |
) |
|||||||||||||||
| Affiliate |
1,569 |
1,451 |
118 |
8 |
6,037 |
6,052 |
(15 |
) |
- |
||||||||||||||||
|
370 |
250 |
120 |
48 |
1,809 |
1,268 |
541 |
43 |
||||||||||||||||||
| Expenses |
2,637 |
2,296 |
(341 |
) |
(15 |
) |
8,843 |
8,934 |
91 |
1 |
|||||||||||||||
| Adjusted OIBDA | $ |
801 |
$ |
792 |
$ |
9 |
1 |
% | $ |
3,746 |
$ |
3,515 |
$ |
231 |
7 |
% | |||||||||
| $ in millions | |||||||||||||||||||||||||
FILMED ENTERTAINMENT
- Q4 2020 revenue decreased 3% year-over-year, reflecting the decline in theatrical revenue, partially offset by growth in licensing and home entertainment 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.
- Home entertainment revenue increased 14% year-over-year, driven by higher sales of catalog and
Miramax titles. - Licensing revenue grew 39% year-over-year due to higher licensing of catalog titles.
- Adjusted OIBDA was
$18M compared to a loss of$119M in the prior year quarter as lower revenue was more than offset by lower distribution costs from fewer theatrical releases.
| Quarter Ended |
Full Year Ended |
|||||||||||||||||||||||||
|
2020 |
2019 |
$ | B/W | % |
2020 |
2019 |
$ | B/W | % | |||||||||||||||||
| Revenue | $ |
514 |
$ |
532 |
$ |
(18 |
) |
(3 |
) |
% | $ |
2,562 |
$ |
2,990 |
$ |
(428 |
) |
(14 |
) |
% | ||||||
| Theatrical |
4 |
129 |
(125 |
) |
(97 |
) |
180 |
547 |
(367 |
) |
(67 |
) |
||||||||||||||
|
176 |
155 |
21 |
14 |
709 |
623 |
86 |
14 |
|||||||||||||||||||
| Licensing |
304 |
219 |
85 |
39 |
1,598 |
1,709 |
(111 |
) |
(6 |
) |
||||||||||||||||
| Other |
30 |
29 |
1 |
3 |
75 |
111 |
(36 |
) |
(32 |
) |
||||||||||||||||
| Expenses |
496 |
651 |
155 |
24 |
2,347 |
2,910 |
563 |
19 |
||||||||||||||||||
| Adjusted OIBDA | $ |
18 |
$ |
(119 |
) |
$ |
137 |
N/M |
$ |
215 |
$ |
80 |
$ |
135 |
169 |
% | ||||||||||
| $ in millions |
| N/M = Not Meaningful |
BALANCE SHEET & LIQUIDITY
- For the full year,
ViacomCBS generated$2.2B of operating cash flow from continuing operations and$1.9B of free cash flow†, benefiting from the timing of production spending and cost savings.- In Q4, as expected, the ramp up in production spend led to negative operating cash flow from continuing operations of
$339 million and negative free cash flow† of$453 million .
- In Q4, as expected, the ramp up in production spend led to negative operating cash flow from continuing operations of
- As of
December 31, 2020 , the company had$3B of cash on its balance sheet and a committed$3.5B revolving credit facility that remains undrawn.
|
† Non-GAAP measures are detailed in the Supplemental Disclosures at the end of this release |
ABOUT
For more information about
CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This communication 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 within 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
|
|
|||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
|
(Unaudited; in millions, except per share amounts) |
|||||||||||||||
|
|
Quarter Ended |
|
Year Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
Revenues |
$ |
6,874 |
|
|
$ |
6,656 |
|
|
$ |
25,285 |
|
|
$ |
26,998 |
|
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
|
Operating |
4,213 |
|
|
4,668 |
|
|
14,992 |
|
|
16,713 |
|
||||
|
Selling, general and administrative |
1,516 |
|
|
1,446 |
|
|
5,320 |
|
|
5,481 |
|
||||
|
Depreciation and amortization |
99 |
|
|
119 |
|
|
430 |
|
|
438 |
|
||||
|
Restructuring and other corporate matters |
177 |
|
|
467 |
|
|
618 |
|
|
769 |
|
||||
|
Total costs and expenses |
6,005 |
|
|
6,700 |
|
|
21,360 |
|
|
23,401 |
|
||||
|
Gain on sales |
214 |
|
|
— |
|
|
214 |
|
|
549 |
|
||||
|
Operating income (loss) |
1,083 |
|
|
(44) |
|
|
4,139 |
|
|
4,146 |
|
||||
|
Interest expense |
(268) |
|
|
(239) |
|
|
(1,031) |
|
|
(962) |
|
||||
|
Interest income |
21 |
|
|
13 |
|
|
60 |
|
|
66 |
|
||||
|
Net gains (losses) from investments |
174 |
|
|
(4) |
|
|
206 |
|
|
85 |
|
||||
|
Loss on extinguishment of debt |
— |
|
|
— |
|
|
(126) |
|
|
— |
|
||||
|
Other items, net |
(27) |
|
|
(25) |
|
|
(101) |
|
|
(112) |
|
||||
|
Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of investee companies |
983 |
|
|
(299) |
|
|
3,147 |
|
|
3,223 |
|
||||
|
(Provision) benefit for income taxes |
(183) |
|
|
1 |
|
|
(535) |
|
|
29 |
|
||||
|
Equity in earnings (loss) of investee companies, net of tax |
2 |
|
|
— |
|
|
(28) |
|
|
(53) |
|
||||
|
Net earnings (loss) from continuing operations |
802 |
|
|
(298) |
|
|
2,584 |
|
|
3,199 |
|
||||
|
Net earnings from discontinued operations, net of tax |
27 |
|
|
44 |
|
|
117 |
|
|
140 |
|
||||
|
Net earnings (loss) ( |
829 |
|
|
(254) |
|
|
2,701 |
|
|
3,339 |
|
||||
|
Net earnings attributable to noncontrolling interests |
(19) |
|
|
(4) |
|
|
(279) |
|
|
(31) |
|
||||
|
Net earnings (loss) attributable to |
$ |
810 |
|
|
$ |
(258) |
|
|
$ |
2,422 |
|
|
$ |
3,308 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Amounts attributable to |
|
|
|
|
|
|
|
||||||||
|
Net earnings (loss) from continuing operations |
$ |
783 |
|
|
$ |
(302) |
|
|
$ |
2,305 |
|
|
$ |
3,168 |
|
|
Net earnings from discontinued operations |
27 |
|
|
44 |
|
|
117 |
|
|
140 |
|
||||
|
Net earnings (loss) attributable to |
$ |
810 |
|
|
$ |
(258) |
|
|
$ |
2,422 |
|
|
$ |
3,308 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basic net earnings (loss) per common share attributable to |
|
|
|
|
|
|
|
||||||||
|
Net earnings (loss) from continuing operations |
$ |
1.27 |
|
|
$ |
(.49) |
|
|
$ |
3.74 |
|
|
$ |
5.15 |
|
|
Net earnings from discontinued operations |
$ |
.04 |
|
|
$ |
.07 |
|
|
$ |
.19 |
|
|
$ |
.23 |
|
|
Net earnings (loss) |
$ |
1.31 |
|
|
$ |
(.42) |
|
|
$ |
3.93 |
|
|
$ |
5.38 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted net earnings (loss) per common share attributable to |
|
|
|
|
|
|
|
||||||||
|
Net earnings (loss) from continuing operations |
$ |
1.26 |
|
|
$ |
(.49) |
|
|
$ |
3.73 |
|
|
$ |
5.13 |
|
|
Net earnings from discontinued operations |
$ |
.04 |
|
|
$ |
.07 |
|
|
$ |
.19 |
|
|
$ |
.23 |
|
|
Net earnings (loss) |
$ |
1.31 |
|
|
$ |
(.42) |
|
|
$ |
3.92 |
|
|
$ |
5.36 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
||||||||
|
Basic |
617 |
|
|
615 |
|
|
616 |
|
|
615 |
|
||||
|
Diluted |
620 |
|
|
615 |
|
|
618 |
|
|
617 |
|
||||
|
|
|||||||
|
CONSOLIDATED BALANCE SHEETS |
|||||||
|
(In millions, except per share amounts) |
|||||||
|
|
|
At |
|||||
|
|
|
2020 |
|
2019 |
|||
|
ASSETS |
|
|
|
|
|||
|
Current Assets: |
|
|
|
|
|||
|
Cash and cash equivalents |
|
$ |
2,984 |
|
|
$ |
632 |
|
Receivables, net |
|
7,017 |
|
|
6,837 |
||
|
Programming and other inventory |
|
1,757 |
|
|
2,813 |
||
|
Prepaid expenses |
|
622 |
|
|
399 |
||
|
Other current assets |
|
769 |
|
|
677 |
||
|
Current assets of discontinued operations |
|
630 |
|
|
544 |
||
|
Total current assets |
|
13,779 |
|
|
11,902 |
||
|
Property and equipment, net |
|
1,994 |
|
|
2,045 |
||
|
Programming and other inventory |
|
10,363 |
|
|
8,652 |
||
|
|
|
16,612 |
|
|
16,545 |
||
|
Intangible assets, net |
|
2,826 |
|
|
2,990 |
||
|
Operating lease assets |
|
1,602 |
|
|
1,738 |
||
|
Deferred income tax assets, net |
|
993 |
|
|
938 |
||
|
Other assets |
|
3,657 |
|
|
3,955 |
||
|
Assets held for sale |
|
28 |
|
|
23 |
||
|
Assets of discontinued operations |
|
809 |
|
|
797 |
||
|
Total Assets |
|
$ |
52,663 |
|
|
$ |
49,585 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|||
|
Current Liabilities: |
|
|
|
|
|||
|
Accounts payable |
|
$ |
571 |
|
|
$ |
632 |
|
Accrued expenses |
|
1,714 |
|
|
1,729 |
||
|
Participants’ share and royalties payable |
|
2,005 |
|
|
1,861 |
||
|
Accrued programming and production costs |
|
1,141 |
|
|
1,500 |
||
|
Deferred revenues |
|
978 |
|
|
737 |
||
|
Debt |
|
16 |
|
|
717 |
||
|
Other current liabilities |
|
1,391 |
|
|
1,439 |
||
|
Current liabilities of discontinued operations |
|
480 |
|
|
433 |
||
|
Total current liabilities |
|
8,296 |
|
|
9,048 |
||
|
Long-term debt |
|
19,717 |
|
|
18,002 |
||
|
Participants’ share and royalties payable |
|
1,317 |
|
|
1,546 |
||
|
Pension and postretirement benefit obligations |
|
2,098 |
|
|
2,121 |
||
|
Deferred income tax liabilities, net |
|
778 |
|
|
565 |
||
|
Operating lease liabilities |
|
1,583 |
|
|
1,705 |
||
|
Program rights obligations |
|
243 |
|
|
356 |
||
|
Other liabilities |
|
2,158 |
|
|
2,436 |
||
|
Liabilities of discontinued operations |
|
220 |
|
|
263 |
||
|
Redeemable noncontrolling interest |
|
197 |
|
|
254 |
||
|
|
|
|
|
|
|||
|
Commitments and contingencies |
|
|
|
|
|||
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
|
Class A Common Stock, par value 52 (2020 and 2019) shares issued |
|
— |
|
|
— |
||
|
Class B Common Stock, par value 1,068 (2020) and 1,064 (2019) shares issued |
|
1 |
|
|
1 |
||
|
Additional paid-in capital |
|
29,785 |
|
|
29,590 |
||
|
|
|
(22,958) |
|
|
(22,908) |
||
|
Retained earnings |
|
10,375 |
|
|
8,494 |
||
|
Accumulated other comprehensive loss |
|
(1,832) |
|
|
(1,970) |
||
|
Total |
|
15,371 |
|
|
13,207 |
||
|
Noncontrolling interests |
|
685 |
|
|
82 |
||
|
Total Equity |
|
16,056 |
|
|
13,289 |
||
|
Total Liabilities and Equity |
|
$ |
52,663 |
|
|
$ |
49,585 |
|
|
||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
|
(In millions) |
||||||
|
|
|
Year Ended |
||||
|
|
|
2020 |
|
2019 |
||
|
Operating Activities: |
|
|
|
|
||
|
Net earnings ( |
|
$ |
2,701 |
|
$ |
3,339 |
|
Less: Net earnings from discontinued operations, net of tax |
|
117 |
|
140 |
||
|
Net earnings from continuing operations |
|
2,584 |
|
3,199 |
||
|
Adjustments to reconcile net earnings from continuing operations to net cash flow provided by operating activities from continuing operations: |
|
|
|
|
||
|
Depreciation and amortization |
|
430 |
|
438 |
||
|
Television programming and feature film cost amortization |
|
11,045 |
|
12,554 |
||
|
Deferred tax provision (benefit) |
|
122 |
|
(765) |
||
|
Stock-based compensation |
|
274 |
|
286 |
||
|
Gain on sales |
|
(214) |
|
(549) |
||
|
Net gains from investments |
|
(206) |
|
(85) |
||
|
Loss on extinguishment of debt |
|
126 |
|
— |
||
|
Equity in loss of investee companies, net of tax and distributions |
|
34 |
|
58 |
||
|
Change in assets and liabilities |
|
|
|
|
||
|
Increase in receivables |
|
(68) |
|
(247) |
||
|
Increase in inventory and related program and participation liabilities, net |
|
(12,170) |
|
(14,215) |
||
|
Increase in accounts payable and other liabilities |
|
188 |
|
302 |
||
|
(Decrease) increase in pension and postretirement benefit obligations |
|
(20) |
|
16 |
||
|
Increase in income taxes |
|
2 |
|
176 |
||
|
Other, net |
|
88 |
|
3 |
||
|
Net cash flow provided by operating activities from continuing operations |
|
2,215 |
|
1,171 |
||
|
Net cash flow provided by operating activities from discontinued operations |
|
79 |
|
59 |
||
|
Net cash flow provided by operating activities |
|
2,294 |
|
1,230 |
||
|
Investing Activities: |
|
|
|
|
||
|
Investments |
|
(59) |
|
(171) |
||
|
Capital expenditures |
|
(324) |
|
(345) |
||
|
Acquisitions, net of cash acquired |
|
(147) |
|
(399) |
||
|
Proceeds from dispositions |
|
593 |
|
756 |
||
|
Other investing activities |
|
— |
|
14 |
||
|
Net cash flow provided by (used for) investing activities from continuing operations |
|
63 |
|
(145) |
||
|
Net cash flow used for investing activities from discontinued operations |
|
(7) |
|
(10) |
||
|
Net cash flow provided by (used for) investing activities |
|
56 |
|
(155) |
||
|
Financing Activities: |
|
|
|
|
||
|
(Repayments of) proceeds from short-term debt borrowings, net |
|
(706) |
|
25 |
||
|
Proceeds from issuance of senior notes |
|
4,375 |
|
492 |
||
|
Repayment of long-term debt |
|
(2,901) |
|
(910) |
||
|
Dividends |
|
(600) |
|
(595) |
||
|
Purchase of Company common stock |
|
(58) |
|
(57) |
||
|
Payment of payroll taxes in lieu of issuing shares for stock-based compensation |
|
(93) |
|
(56) |
||
|
Proceeds from exercise of stock options |
|
5 |
|
15 |
||
|
Other financing activities |
|
(112) |
|
(130) |
||
|
Net cash flow used for financing activities |
|
(90) |
|
(1,216) |
||
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
25 |
|
(1) |
||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
2,285 |
|
(142) |
||
|
Cash, cash equivalents and restricted cash at beginning of year (includes |
|
834 |
|
976 |
||
|
Cash, cash equivalents and restricted cash at end of year (includes |
|
$ |
3,119 |
|
$ |
834 |
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES
(Unaudited; in millions, except per share amounts)
Results for the quarters and years ended
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 (loss), earnings (loss) from continuing operations before income taxes, provision benefit for income taxes, net earnings (loss) from continuing operations attributable to
The following tables reconcile the adjusted measures to their most directly comparable financial measures in accordance with GAAP.
|
|
Quarter Ended |
|
Year Ended |
|||||||||
|
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
|
Operating Income (Loss) (GAAP) |
|
$ |
1,083 |
|
$ |
(44) |
|
$ |
4,139 |
|
$ |
4,146 |
|
Depreciation and amortization (a) |
|
99 |
|
119 |
|
430 |
|
438 |
||||
|
Restructuring and other corporate matters (b) |
|
177 |
|
467 |
|
618 |
|
769 |
||||
|
Programming charges (b) |
|
38 |
|
589 |
|
159 |
|
589 |
||||
|
Gain on sales (b) |
|
(214) |
|
— |
|
(214) |
|
(549) |
||||
|
Adjusted OIBDA (Non-GAAP) |
|
$ |
1,183 |
|
$ |
1,131 |
|
$ |
5,132 |
|
$ |
5,393 |
|
(a) |
The year ended |
|||
|
(b) |
See notes on the following tables for additional information on items affecting comparability. |
|
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) |
|||||||||||||||
|
(Unaudited; in millions, except per share amounts) |
|||||||||||||||
|
|
Quarter Ended |
||||||||||||||
|
|
Earnings from |
|
Provision for |
|
Net Earnings |
|
Diluted EPS |
||||||||
|
Reported (GAAP) |
|
$ |
983 |
|
|
$ |
(183) |
|
|
$ |
783 |
|
|
$ |
1.26 |
|
Items affecting comparability: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Restructuring and other corporate matters (a) |
|
177 |
|
|
(40) |
|
|
137 |
|
|
.22 |
||||
|
Programming charges (b) |
|
38 |
|
|
(10) |
|
|
28 |
|
|
.05 |
||||
|
Gain on sales (c) |
|
(214) |
|
|
31 |
|
|
(183) |
|
|
(.30) |
||||
|
Net gain from investments (d) |
|
(174) |
|
|
42 |
|
|
(132) |
|
|
(.21) |
||||
|
Discrete tax items |
|
— |
|
|
12 |
|
|
12 |
|
|
.02 |
||||
|
Adjusted (Non-GAAP) |
|
$ |
810 |
|
|
$ |
(148) |
|
|
$ |
645 |
|
|
$ |
1.04 |
|
(a) |
Reflects severance, exit costs and other costs related to the Merger. |
|||
|
(b) |
Programming charges primarily related to the abandonment of certain incomplete programs resulting from production shutdowns related to COVID-19. |
|||
|
(c) |
Reflects a gain on the sale of |
|||
|
(d) |
Primarily reflects an increase in the value of our investment in fuboTV, Inc. (“fuboTV”), which was sold in the fourth quarter of 2020. |
|
|
Quarter Ended |
||||||||||||||
|
|
Earnings |
|
(Provision) |
|
Net Earnings |
|
Diluted EPS |
||||||||
|
Reported (GAAP) |
|
$ |
(299) |
|
|
$ |
1 |
|
|
$ |
(302) |
|
|
$ |
(.49) |
|
Items affecting comparability: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Restructuring and other corporate matters (b) |
|
467 |
|
|
(88) |
|
|
379 |
|
|
.61 |
||||
|
Impairment charge (c) |
|
20 |
|
|
(6) |
|
|
14 |
|
|
.02 |
||||
|
Programming charges (d) |
|
589 |
|
|
(142) |
|
|
447 |
|
|
.73 |
||||
|
Net loss from investments (e) |
|
4 |
|
|
(3) |
|
|
1 |
|
|
— |
||||
|
Discrete tax items |
|
— |
|
|
31 |
|
|
31 |
|
|
.05 |
||||
|
Adjusted (Non-GAAP) |
|
$ |
781 |
|
|
$ |
(207) |
|
|
$ |
570 |
|
|
$ |
.92 |
|
(a) |
Reported EPS excludes the dilutive impact to shares since we reported a net loss. Adjusted EPS is calculated based on diluted weighted average shares outstanding of 618 million. |
|||
|
(b) |
Reflects severance and exit costs relating to restructuring activities and costs incurred in connection with the Merger. |
|||
|
(c) |
Reflects a charge to reduce the carrying value of our international broadcast licenses in |
|||
|
(d) |
Programming charges principally reflect accelerated amortization associated with changes in the expected monetization of certain programs, and decisions to cease airing, alter future airing patterns or not renew certain programs, in connection with management changes implemented as a result of the Merger. |
|||
|
(e) |
Includes an impairment charge of |
|
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) |
|||||||||||||||
|
(Unaudited; in millions, except per share amounts) |
|||||||||||||||
|
|
Year Ended |
||||||||||||||
|
|
Earnings from |
|
Provision for |
|
Net Earnings |
|
Diluted EPS |
||||||||
|
Reported (GAAP) |
|
$ |
3,147 |
|
|
$ |
(535) |
|
|
$ |
2,305 |
|
|
$ |
3.73 |
|
Items affecting comparability: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Restructuring and other corporate matters (a) |
|
618 |
|
|
(133) |
|
|
485 |
|
|
.79 |
||||
|
Impairment charge (b) |
|
25 |
|
|
(6) |
|
|
19 |
|
|
.03 |
||||
|
Depreciation of abandoned technology (c) |
|
12 |
|
|
(3) |
|
|
9 |
|
|
.01 |
||||
|
Programming charges (d) |
|
159 |
|
|
(39) |
|
|
120 |
|
|
.20 |
||||
|
Gain on sales (e) |
|
(214) |
|
|
31 |
|
|
(183) |
|
|
(.30) |
||||
|
Net gains from investments (f) |
|
(206) |
|
|
50 |
|
|
(156) |
|
|
(.25) |
||||
|
Loss on extinguishment of debt |
|
126 |
|
|
(29) |
|
|
97 |
|
|
.16 |
||||
|
Discrete tax items (g) |
|
— |
|
|
(110) |
|
|
(110) |
|
|
(.18) |
||||
|
Impairment of equity-method investment |
|
— |
|
|
— |
|
|
9 |
|
|
.01 |
||||
|
Adjusted (Non-GAAP) |
|
$ |
3,667 |
|
|
$ |
(774) |
|
|
$ |
2,595 |
|
|
$ |
4.20 |
|
(a) |
Reflects severance, exit costs and other costs related to the Merger and a charge to write down property and equipment classified as held for sale. |
|||
|
(b) |
Reflects a charge to reduce the carrying values of FCC licenses in two markets to their fair values. |
|||
|
(c) |
Reflects accelerated depreciation for technology that was abandoned in connection with synergy plans related to the Merger. |
|||
|
(d) |
Programming charges primarily related to the abandonment of certain incomplete programs resulting from production shutdowns related to COVID-19. |
|||
|
(e) |
Reflects a gain on the sale of CMG. |
|||
|
(f) |
Primarily reflects an increase in the value of our investment in fuboTV, which was sold in the fourth quarter of 2020. |
|||
|
(g) |
Primarily reflects a benefit from the remeasurement of our |
|
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) |
|||||||||||||||
|
(Unaudited; in millions, except per share amounts) |
|||||||||||||||
|
|
Year Ended |
||||||||||||||
|
|
Earnings from |
|
Benefit |
|
Net Earnings |
|
Diluted EPS |
||||||||
|
Reported (GAAP) |
|
$ |
3,223 |
|
|
$ |
29 |
|
|
$ |
3,168 |
|
|
$ |
5.13 |
|
Items affecting comparability: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Restructuring and other corporate matters (a) |
|
769 |
|
|
(133) |
|
|
636 |
|
|
1.03 |
||||
|
Impairment charge (b) |
|
20 |
|
|
(6) |
|
|
14 |
|
|
.02 |
||||
|
Programming charges (c) |
|
589 |
|
|
(142) |
|
|
447 |
|
|
.73 |
||||
|
Gain on sales (d) |
|
(549) |
|
|
163 |
|
|
(386) |
|
|
(.63) |
||||
|
Net gains from investments (e) |
|
(85) |
|
|
16 |
|
|
(69) |
|
|
(.11) |
||||
|
Discrete tax items (f) |
|
— |
|
|
(827) |
|
|
(827) |
|
|
(1.34) |
||||
|
Adjusted (Non-GAAP) |
|
$ |
3,967 |
|
|
$ |
(900) |
|
|
$ |
2,983 |
|
|
$ |
4.83 |
|
(a) |
Reflects severance and exit costs relating to restructuring activities, costs incurred in connection with the Merger, legal proceedings involving the Company and other corporate matters. |
|||
|
(b) |
Reflects a charge to reduce the carrying value of our international broadcast licenses in |
|||
|
(c) |
Programming charges principally reflect accelerated amortization associated with changes in the expected monetization of certain programs, and decisions to cease airing, alter future airing patterns or not renew certain programs, in connection with management changes implemented as a result of the Merger. |
|||
|
(d) |
Reflects a gain on the sale of CBS Television City property and sound stage operation. |
|||
|
(e) |
Reflects a gain on marketable securities of |
|||
|
(f) |
Primarily reflects a deferred tax benefit of |
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 (used for) from continuing operation 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 (used for) operating activities from continuing operations as a measure of liquidity or net earnings (loss) 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 (used for) operating activities from continuing operations to free cash flow:
|
|
Quarter Ended |
|
Year Ended |
|||||||||
|
|
|
|
|
|||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||
|
Net cash flow provided by (used for) operating activities from |
(339) |
|
(530) |
|
2,215 |
|
1,171 |
|
||||
|
Capital expenditures |
(114) |
|
(99) |
|
(324) |
|
(345) |
|
||||
|
Free cash flow (Non-GAAP) |
$ |
(453) |
|
$ |
(629) |
|
$ |
1,891 |
|
$ |
826 |
|
VIAC-IR
View source version on businesswire.com: https://www.businesswire.com/news/home/20210224005361/en/
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