CBS Corporation Reports 2013 Fourth Quarter And Full Year Results - CW15 - OMAHA

CBS Corporation Reports 2013 Fourth Quarter And Full Year Results

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE CBS Corporation

Fourth Quarter Revenue of $3.9 Billion, Up 6%

Fourth Quarter Adjusted OIBDA of $927 Million, Up 7%; Reported OIBDA Also Up 7%

Fourth Quarter Operating Income of $793 Million, Up 9%

Fourth Quarter Adjusted Diluted EPS of $.78, Up 22%; Reported Diluted EPS, Up 23%

NEW YORK, Feb. 12, 2014 /PRNewswire/ -- CBS Corporation (NYSE: CBS.A and CBS) today reported the Company's highest-ever fourth quarter and full year results in revenues, operating income before depreciation and amortization ("OIBDA"), operating income, and diluted earnings per share.

"CBS continues to turn in stellar performances year in and year out, and none better than 2013," said Sumner Redstone, Executive Chairman, CBS Corporation. "The Company's strategy of monetizing its content across all platforms is driving our results today, and it will continue to enhance our ability to achieve even greater success in the future. I'm confident that Les and his team will lead CBS to new heights in 2014 and beyond."

"Our record fourth-quarter and full-year results demonstrate CBS's stature as one of the world's foremost creators of premium content," said Leslie Moonves, President and Chief Executive Officer, CBS Corporation. "In addition to the solid performance of our base business, our fast-growing, non-advertising revenue streams are playing a bigger and bigger role in our results, and they will continue to do so in the years to come. These include the sale of three hit shows-Hawaii Five-0, Blue Bloods and Elementary-into domestic syndication, along with new deals in digital streaming, international syndication, retransmission consent, and reverse compensation. Plus, we plan to launch the IPO of our Outdoor business this quarter, which will unlock its value and significantly enhance our ability to return capital to shareholders. In fact, that's why today we're announcing an accelerated share repurchase of $1.5 billion in addition to stepping up the pace of our open market share repurchases during the first quarter. Our Outdoor transactions will also result in a CBS that is much closer to a pure content Company, with about half of our revenue coming from steady and recurring sources. Looking ahead, we are extremely excited about all the opportunities that we have in a marketplace that's exploding with new ways to engage with the best content."

Fourth Quarter 2013 Results

The Company reported record fourth quarter results in the following key metrics:

  • Revenues of $3.91 billion
  • Adjusted OIBDA of $927 million
  • Operating income of $793 million
  • Adjusted diluted earnings per share from continuing operations of $.78

Revenues of $3.91 billion for the fourth quarter of 2013 grew 6% from $3.70 billion in the same prior-year period. This growth was led by a 28% increase in content licensing and distribution revenues, which was driven by higher domestic and international licensing of television programming. Affiliate and subscription fee revenues grew 7%, principally reflecting higher cable affiliate fees, retransmission revenues, and fees from CBS Television Network-affiliated television stations.  Advertising revenues remained relatively even with the prior-year period, as a 4% increase at the CBS Television Network was offset by lower political advertising revenues at Local Broadcasting.

Adjusted OIBDA of $927 million for the fourth quarter of 2013 grew 7% from $866 million for the same prior-year period, and operating income of $793 million rose 9% from $726 million. The adjusted OIBDA and operating income growth was driven by higher revenues, which were partially offset by increased investment in television content and higher stock-based compensation, mainly attributable to the appreciation of the Company's stock price.

Adjusted net earnings from continuing operations were $477 million for the fourth quarter of 2013, or $.78 per diluted share, up from $414 million, or $.64 per diluted share, for the same prior-year period. Reported net earnings from continuing operations were $465 million for the fourth quarter of 2013, or $.76 per diluted share, up from $403 million, or $.62 per diluted share, for last year's fourth quarter. These increases reflect the operating income growth and lower weighted average shares outstanding, which are a result of the Company's ongoing share repurchase program.

Adjusted OIBDA and adjusted net earnings from continuing operations exclude restructuring charges of $20 million ($12 million, net of tax) for the fourth quarter of 2013 and $19 million ($11 million, net of tax) for the fourth quarter of 2012, primarily for the reorganization and closure of certain business operations, as well as early contract termination costs.

Reconciliations of non-GAAP measures to reported results are included at the end of this earnings release.

Full Year 2013 Results

For 2013, the Company reported all-time highs in the following key metrics:

  • Revenues of $15.28 billion
  • Adjusted OIBDA of $3.74 billion
  • Operating income of $3.26 billion
  • Adjusted diluted earnings per share from continuing operations of $3.02

Full year 2013 revenues of $15.28 billion grew 8% from $14.09 billion in 2012, reflecting increases across all of the Company's main revenue streams. Content licensing and distribution revenues increased 15%, led by growth from domestic and international licensing of programming for syndication and digital streaming. Advertising revenues rose 4%, principally driven by growth at the CBS Television Network, including the benefit from the broadcast of Super Bowl XLVII, as well as higher revenues from CBS Interactive. These increases were partially offset by lower political advertising revenues at Local Broadcasting, a result of the U.S. Presidential election in 2012.  Affiliate and subscription fee revenues grew 16%, primarily driven by growth in fees from CBS Television Network-affiliated stations, retransmission consent, and cable affiliates, as well as the benefit of two pay-per-view boxing events. 

Adjusted OIBDA of $3.74 billion in 2013 rose 7% from $3.49 billion in 2012, and operating income of $3.26 billion increased 9% from $2.98 billion in 2012. The adjusted OIBDA and operating income growth were primarily driven by the revenue increase, which was partially offset by higher sports programming costs, increased investment in content, and higher stock-based compensation primarily attributable to appreciation in the Company's stock price.

Adjusted net earnings from continuing operations in 2013 were $1.89 billion, or $3.02 per diluted share, up from $1.68 billion, or $2.55 per diluted share, for 2012. Reported net earnings from continuing operations in 2013 were $1.87 billion, or $3.00 per diluted share, up from $1.63 billion, or $2.48 per diluted share, for 2012.  The increases were driven by growth in revenues and operating income, as well as lower weighted average shares outstanding from the Company's ongoing share repurchases.

Adjusted OIBDA and adjusted net earnings from continuing operations in 2013 exclude restructuring charges of $20 million. For 2012, adjusted OIBDA and adjusted net earnings from continuing operations exclude a noncash impairment charge of $11 million related to radio stations divestitures, restructuring charges of $19 million, and a pretax net loss on early extinguishment of debt of $32 million.

Reconciliations of non-GAAP measures to reported results are included at the end of this earnings release.

Free Cash Flow, Balance Sheet and Liquidity
For the fourth quarter of 2013, free cash flow was $382 million compared with $199 million for the same prior-year period. Last year's fourth quarter included $200 million of discretionary pension contributions. For the 2013 full year, free cash flow grew from $1.57 billion in the prior year to a record $1.77 billion, including a discretionary pension contribution of $150 million to prefund the Company's qualified plans. The Company generated operating cash flow from continuing operations of $2.04 billion in 2013 versus $1.82 billion for 2012.

During the fourth quarter of 2013, the Company repurchased 6.1 million shares of CBS Corp. Class B Common Stock for $364 million. For the full year, the Company repurchased 45.8 million shares of CBS Corp. Class B Common Stock for $2.20 billion, at an average price of approximately $48 per share. Since the share repurchase program was initiated in January 2011 through the end of 2013, the Company has repurchased 123.5 million shares of its Class B Common Stock for $4.39 billion, at an average cost of approximately $36 per share, leaving $5.43 billion of authorization remaining at December 31, 2013.

Outdoor Initiatives 
In January 2014, in connection with the Company's strategic initiatives for its Outdoor Americas segment, Outdoor Americas borrowed $1.60 billion through an $800 million senior secured term loan credit facility and the issuance of $800 million of senior notes. Also in January 2014, Outdoor Americas entered into a $425 million revolving credit facility.  As of February 12, 2014, there were no outstanding borrowings under the revolving credit facility. The debt proceeds will primarily be used by the Company to repurchase shares of CBS Corp. Class B Common Stock through a $1.5 billion accelerated share repurchase transaction, with $50 million retained by Outdoor Americas for its corporate purposes and ongoing cash needs. The Company currently expects to launch the initial public offering of CBS Outdoor Americas Inc. during the first quarter of 2014.

Consolidated and Segment Results (dollars in millions)
The tables below present the Company's revenues by segment and type as well as its segment operating income (loss) before depreciation and amortization, restructuring charges and impairment charges ("Segment OIBDA") and operating income (loss) by segment for the three and twelve months ended December 31, 2013, and 2012. Reconciliations of all non-GAAP measures to reported results are included at the end of this earnings release.
























Three Months Ended

Twelve Months Ended






December 31,

December 31,


Revenues by Segment


2013



2012



2013



2012




Entertainment

$

2,214


$

1,989


$

8,645


$

7,694




Cable Networks


477



438



2,069



1,772




Publishing


225



215



809



790






Content Group


2,916



2,642



11,523



10,256




Local Broadcasting


719



787



2,696



2,774




Outdoor Americas


347



340



1,304



1,296






Local Group


1,066



1,127



4,000



4,070




Eliminations


(71)



(71)



(239)



(237)





Total Revenues

$

3,911


$

3,698


$

15,284


$

14,089
























Three Months Ended

Twelve Months Ended 






December 31, 

December 31, 


Revenues by Type


2013



2012



2013



2012




Advertising

$

2,402


$

2,415


$

8,803


$

8,459




Content licensing and distribution


898



704



3,997



3,468




Affiliate and subscription fees


542



505



2,221



1,921




Other


69



74



263



241





Total Revenues

$

3,911


$

3,698


$

15,284


$

14,089
























Three Months Ended

Twelve Months Ended 






December 31, 

December 31, 


Segment OIBDA


2013



2012



2013



2012




Entertainment

$

418


$

328


$

1,758


$

1,549




Cable Networks


199



185



898



811




Publishing


37



31



113



89






Content Group


654



544



2,769



2,449




Local Broadcasting


263



325



898



957




Outdoor Americas


120



94



411



378






Local Group


383



419



1,309



1,335




Corporate


(110)



(97)



(342)



(296)





Adjusted OIBDA


927



866



3,736



3,488




Restructuring charges


(20)



(19)



(20)



(19)




Impairment charges


-



-



-



(11)





Total OIBDA

$

907


$

847


$

3,716


$

3,458
























Three Months Ended

Twelve Months Ended 






December 31, 

December 31, 


Operating Income (Loss)


2013



2012



2013



2012




Entertainment

$

368


$

280


$

1,593


$

1,381




Cable Networks


193



176



877



785




Publishing


35



27



106



80






Content Group


596



483



2,576



2,246




Local Broadcasting


236



295



807



848




Outdoor Americas


78



52



243



209






Local Group


314



347



1,050



1,057




Corporate


(117)



(104)



(367)



(320)





Total Operating Income

$

793


$

726


$

3,259


$

2,983



















Entertainment (CBS Television Network, CBS Television Studios, CBS Global Distribution Group, CBS Films, and CBS Interactive)
Entertainment revenues of $2.21 billion for the fourth quarter of 2013 grew 11% from $1.99 billion for the same prior-year period. This increase was principally driven by higher domestic and international licensing of television programming for digital streaming and syndication, higher advertising revenues, and growth in network affiliation fees. Advertising revenues at the CBS Television Network grew 4%.

Entertainment OIBDA for the fourth quarter of 2013 of $418 million rose 27% from $328 million for the same prior-year period. This increase was driven by revenue growth, which was partially offset by higher investment in television content. Operating income includes restructuring charges of $12 million and $7 million for the fourth quarter of 2013 and 2012, respectively.

Cable Networks (Showtime Networks, CBS Sports Network, and Smithsonian Networks)
Cable Networks revenues for the fourth quarter of 2013 increased 9% to $477 million from $438 million for the same prior-year period. This growth was driven by the licensing of Showtime original series as well as higher affiliate revenues, reflecting increases in rates and subscriptions at Showtime Networks (which includes Showtime, The Movie Channel, and Flix), CBS Sports Network, and Smithsonian Networks.

Cable Networks OIBDA for the fourth quarter of 2013 grew 8% to $199 million from $185 million for the same prior-year period. The increase was primarily a result of revenue growth, which was partially offset by higher costs associated with the timing of original and theatrical programming.

Publishing (Simon & Schuster) 
Publishing revenues for the fourth quarter of 2013 increased 5% to $225 million from $215 million for the same prior-year period, reflecting growth in print book sales. Best-selling titles in the fourth quarter of 2013 included Rush Revere and the Brave Pilgrims by Rush Limbaugh and The Bully Pulpit by Doris Kearns Goodwin.

Publishing OIBDA for the fourth quarter of 2013 increased 19% to $37 million from $31 million for the same prior-year period. This growth was driven by higher revenues. Operating income includes restructuring charges of $1 million and $3 million for the fourth quarter of 2013 and 2012, respectively.

Local Broadcasting (CBS Television Stations and CBS Radio) 
Local Broadcasting revenues for the fourth quarter of 2013 decreased 9% to $719 million from $787 million for the same prior-year period. The decrease was the result of lower political advertising revenues compared with 2012, which benefited from the U.S. presidential election, and was partially offset by growth in retransmission consent fees. Revenues for CBS Television Stations and CBS Radio decreased 12% and 4%, respectively. Non-political revenues for CBS Television Stations increased 9%, while non-political revenues for CBS Radio were comparable with the fourth quarter of 2012.

Local Broadcasting OIBDA for the fourth quarter of 2013 decreased 19% to $263 million from $325 million for the same prior-year period, primarily driven by lower political advertising revenues. Operating income includes restructuring charges of $5 million and $8 million for the fourth quarter of 2013 and 2012, respectively.

Outdoor Americas (CBS Outdoor) 
Outdoor Americas revenues for the fourth quarter of 2013 grew 2% to $347 million from $340 million for the same prior-year period. In constant dollars, revenues rose 3%, led by 5% growth in the U.S.

Outdoor Americas OIBDA for the fourth quarter of 2013 grew 28% to $120 million from $94 million for the same prior-year period. This increase was primarily driven by three items: revenue growth; a gain from the disposition of certain transit shelter operations in 2013; and a billboard tax that included a one-time retroactive payment in 2012. 

Corporate 
Corporate expenses before depreciation for the fourth quarter of 2013 increased $13 million to $110 million from $97 million for the same prior-year period, reflecting higher stock-based compensation, which was mainly associated with the increase in the Company's stock price. 

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, outdoor advertising, 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), Showtime Networks, CBS Sports Network, TVGN (a joint venture between CBS Corporation and Lionsgate), Smithsonian Networks, Simon & Schuster, CBS Television Stations, CBS Radio, CBS Outdoor, CBS Television Studios, CBS Global Distribution Group (CBS Studios International and CBS Television Distribution), CBS Interactive, CBS Consumer Products, CBS Home Entertainment, CBS Films 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 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; the inability to obtain the requisite regulatory approvals and changes in legislation, tax rules or market conditions, which could adversely impact timing and the ability to consummate or achieve the benefits of transactions involving the Company's Outdoor Americas business; 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 news releases and 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


Twelve Months Ended



December 31,


December 31,




2013




2012




2013




2012



















Revenues

$

3,911



$

3,698



$

15,284



$

14,089



















Operating income


793




726




3,259




2,983




















Interest expense


(95)




(94)




(376)




(402)



Interest income


2




2




8




6



Net loss on early extinguishment of debt


-




-




-




(32)



Other items, net


8




1




6




6


Earnings from continuing operations before income taxes


708




635




2,897




2,561




















Provision for income taxes


(234)




(227)




(978)




(892)



Equity in loss of investee companies, net of tax


(9)




(5)




(46)




(35)


Net earnings from continuing operations


465




403




1,873




1,634



















Net earnings (loss) from discontinued operations, net of tax


5




(10)




6




(60)


Net earnings

$

470



$

393



$

1,879



$

1,574



















Basic net earnings (loss) per common share:

















Net earnings from continuing operations

$

.78



$

.64



$

3.08



$

2.55



Net earnings (loss) from discontinued operations

$

.01



$

(.02)



$

.01



$

(.09)



Net earnings

$

.78



$

.62



$

3.09



$

2.45



















Diluted net earnings (loss) per common share:

















Net earnings from continuing operations

$

.76



$

.62



$

3.00



$

2.48



Net earnings (loss) from discontinued operations

$

.01



$

(.02)



$

.01



$

(.09)



Net earnings

$

.76



$

.60



$

3.01



$

2.39



















Weighted average number of common shares outstanding:

















Basic


599




634




608




642



Diluted


615




650




624




659



















Dividends per common share

$

.12



$

.12



$

.48



$

.44


 

 


CBS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions)


























At


At




December 31, 2013


December 31, 2012












Assets


















Cash and cash equivalents

$

397



$

708



Receivables, net


3,415




3,137



Programming and other inventory


772




859



Prepaid expenses and other current assets


786




1,016





Total current assets


5,370




5,720



Property and equipment


5,023




4,988




Less accumulated depreciation and amortization


2,787




2,717





Net property and equipment


2,236




2,271



Programming and other inventory


1,697




1,582



Goodwill


8,562




8,567



Intangible assets


6,430




6,515



Other assets


2,092




1,811



Total Assets

$

26,387



$

26,466














Liabilities and Stockholders' Equity


















Accounts payable

$

371



$

386



Participants' share and royalties payable


1,008




953



Program rights


398




455



Commercial paper


475




-



Current portion of long-term debt


21




18



Accrued expenses and other current liabilities


1,934




2,129





Total current liabilities


4,207




3,941



Long-term debt


5,940




5,904



Other liabilities


6,274




6,408



Total Stockholders' Equity


9,966




10,213



Total Liabilities and Stockholders' Equity

$

26,387



$

26,466



 

 


CBS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)





















Twelve Months Ended



December 31,




2013




2012











Operating Activities:








Net earnings

$

1,879



$

1,574


Less: Net earnings (loss) from discontinued operations


6




(60)


Net earnings from continuing operations


1,873




1,634


Adjustments to reconcile net earnings from continuing operations









to net cash flow provided by operating activities:









Depreciation and amortization


457




475



Impairment charges


-




11



Stock-based compensation


229




153



Redemption of debt


-




(28)



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


59




52



Change in assets and liabilities, net of investing and financing activities


(574)




(478)


Net cash flow provided by operating activities from continuing operations


2,044




1,819


Net cash flow used for operating activities from discontinued operations


(171)




(4)


Net cash flow provided by operating activities


1,873




1,815


Investing Activities:









Acquisitions, net of cash acquired


(32)




(146)



Capital expenditures


(270)




(254)



Investments in and advances to investee companies


(176)




(91)



Proceeds from sale of investments


30




13



Proceeds from dispositions


193




49


Net cash flow used for investing activities from continuing operations


(255)




(429)


Net cash flow used for investing activities from discontinued operations


(17)




(22)


Net cash flow used for investing activities


(272)




(451)


Financing Activities:









Proceeds from short-term debt borrowings, net


475




-



Proceeds from issuance of notes


-




1,566



Repayment of notes and debentures


-




(1,583)



Payment of capital lease obligations


(17)




(19)



Payment of contingent consideration


(30)




(33)



Dividends


(300)




(276)



Purchase of Company common stock


(2,185)




(1,137)



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


(145)




(105)



Proceeds from exercise of stock options


146




168



Excess tax benefit from stock-based compensation


148




103



Other financing activities


(4)




-


Net cash flow used for financing activities


(1,912)




(1,316)


Net (decrease) increase in cash and cash equivalents


(311)




48


Cash and cash equivalents at beginning of year


708




660


Cash and cash equivalents at end of year

$

397



$

708


 

 

CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(Unaudited; in millions)

Segment Operating Income (Loss) Before Depreciation and Amortization ("OIBDA") and Adjusted OIBDA

The Company presents Segment OIBDA as the primary measure of profit and loss for its operating segments in accordance with FASB guidance for segment reporting.

The following tables set forth the Company's OIBDA and Adjusted OIBDA for the three and twelve months ended December 31, 2013 and 2012. The Company defines OIBDA as net earnings (loss) adjusted to exclude the following line items presented in its Consolidated Statements of Operations: Net earnings (loss) from discontinued operations, net of tax; Equity in earnings (loss) of investee companies, net of tax; Provision for income taxes; Other items, net; Net loss on early extinguishment of debt; Interest income; Interest expense; and Depreciation and amortization. The Company defines "Adjusted OIBDA" as OIBDA excluding restructuring and impairment charges. For each individual operating segment, Adjusted OIBDA is also known as "Segment OIBDA".

The Company uses Adjusted OIBDA (or Segment OIBDA for each segment), as well as Adjusted OIBDA 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.

Because Adjusted OIBDA is not a measure of performance 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, net earnings (loss) as an indicator of operating performance. Adjusted OIBDA, 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 OIBDA excludes certain financial information that is included in net earnings (loss), the most directly comparable GAAP financial measure, users of this financial information should consider the types of events and transactions which are excluded. The Company provides the following reconciliations of Adjusted OIBDA to operating income and net earnings (loss). In addition, the following tables also provide reconciliations of Segment OIBDA for each segment to such segment's operating income (loss).

 




CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)
(Unaudited; in millions)



















Three Months Ended December 31, 2013




Adjusted


Depreciation


Restructuring


Operating




OIBDA


and Amortization


Charges


Income (Loss)

Entertainment

$

418



$

(38)



$

(12)



$

368


Cable Networks


199




(5)




(1)




193


Publishing


37




(1)




(1)




35




Content Group


654




(44)




(14)




596


Local Broadcasting


263




(22)




(5)




236


Outdoor Americas


120




(42)




-




78




Local Group


383




(64)




(5)




314


Corporate


(110)




(6)




(1)




(117)



Total

$

927



$

(114)



$

(20)



$

793



Margin (a)


24%












20%
























































Three Months Ended December 31, 2012




Adjusted


Depreciation


Restructuring


Operating




OIBDA


and Amortization


Charges


Income (Loss)

Entertainment

$

328



$

(41)



$

(7)



$

280


Cable Networks


185




(9)




-




176


Publishing


31




(1)




(3)




27




Content Group


544




(51)




(10)




483


Local Broadcasting


325




(22)




(8)




295


Outdoor Americas


94




(42)




-




52




Local Group


419




(64)




(8)




347


Corporate


(97)




(6)




(1)




(104)



Total

$

866



$

(121)



$

(19)



$

726



Margin (a)


23%












20%



































































Three Months Ended December 31,













2013




2012


Adjusted OIBDA









$

927



$

866




Restructuring charges




(20)




(19)


Total OIBDA










907




847




Depreciation and amortization



(114)




(121)


Operating income








793




726




Interest expense



(95)




(94)




Interest income


2




2




Other items, net




8




1


Earnings from continuing operations before income taxes



708




635




Provision for income taxes




(234)




(227)




Equity in loss of investee companies, net of tax




(9)




(5)


Net earnings from continuing operations




465




403


Net earnings (loss) from discontinued operations, net of tax




5




(10)


Net earnings







$

470



$

393




(a)   

   Margin is defined as Adjusted OIBDA or operating income, as applicable, divided by revenues.

 


CBS CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)

(Unaudited; in millions)























Twelve Months Ended December 31, 2013








Adjusted


Depreciation


Restructuring


Operating








OIBDA


and Amortization


Charges


Income (Loss)





Entertainment

$

1,758



$

(153)



$

(12)



$

1,593






Cable Networks


898




(20)




(1)




877






Publishing


113




(6)




(1)




106








Content Group


2,769




(179)




(14)




2,576






Local Broadcasting


898




(86)




(5)




807






Outdoor Americas


411




(168)




-




243








Local Group


1,309




(254)




(5)




1,050






Corporate


(342)




(24)




(1)




(367)







Total

$

3,736



$

(457)



$

(20)



$

3,259







Margin (a)


24%












21%








































































Twelve Months Ended December 31, 2012




Adjusted


Depreciation


Restructuring


Impairment


Operating




OIBDA


and Amortization


Charges


Charges


Income (Loss)

Entertainment

$

1,549



$

(161)



$

(7)



$

-



$

1,381


Cable Networks


811




(26)




-




-




785


Publishing


89




(6)




(3)




-




80




Content Group


2,449




(193)




(10)




-




2,246


Local Broadcasting


957




(90)




(8)




(11)




848


Outdoor Americas


378




(169)




-




-




209




Local Group


1,335




(259)




(8)




(11)




1,057


Corporate


(296)




(23)




(1)




-




(320)



Total

$

3,488



$

(475)



$

(19)



$

(11)



$

2,983



Margin (a)


25%
















21%









































Twelve Months Ended December 31,

















2013




2012


Adjusted OIBDA













$

3,736



$

3,488




Restructuring charges









(20)




(19)




Impairment charges







-




(11)


Total OIBDA














3,716




3,458




Depreciation and amortization







(457)




(475)


Operating income














3,259




2,983




Interest expense









(376)




(402)




Interest income








8




6




Net loss on early extinguishment of debt








-




(32)




Other items, net









6




6


Earnings from continuing operations before income taxes








2,897




2,561




Provision for income taxes








(978)




(892)




Equity in loss of investee companies, net of tax








(46)




(35)


Net earnings from continuing operations





1,873




1,634


Net earnings (loss) from discontinued operations, net of tax





6




(60)


Net earnings



$

1,879



$

1,574




(a)   

   Margin is defined as Adjusted OIBDA or operating income, as applicable, divided by revenues.

 

 

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 (loss) 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 operating activities to free cash flow.





Three Months Ended


Twelve Months Ended




December 31,


December 31,





2013




2012




2013




2012


Net cash flow provided by operating activities

$

553



$

335



$

1,873



$

1,815


Capital expenditures


(130)




(115)




(270)




(254)


Exclude operating cash flow from discontinued operations


41




21




(171)




(4)


Free cash flow

$

382



$

199



$

1,774



$

1,565




















The following table presents a summary of the Company's cash flows:






















Three Months Ended


Twelve Months Ended




December 31,


December 31,





2013




2012




2013




2012


Net cash flow provided by operating activities

$

553



$

335



$

1,873



$

1,815


Net cash flow used for investing activities

$

(156)



$

(232)



$

(272)



$

(451)


Net cash flow used for financing activities

$

(226)



$

(342)



$

(1,912)



$

(1,316)




















 

 

CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)
(Unaudited; in millions, except per share amounts)

2013 and 2012 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 current underlying performance of the Company, 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 December 31, 2013





2013


Restructuring 


2013





Reported 


Charges  (a) 


Adjusted 


Revenues

$

3,911



$

-



$

3,911



OIBDA


907




20




927



OIBDA margin (b)


23%








24%


















Operating income


793




20




813



Interest expense


(95)




-




(95)



Interest income


2




-




2



Other items, net


8




-




8



Earnings from continuing operations before income taxes


708




20




728



Provision for income taxes


(234)




(8)




(242)



Effective income tax rate


33%








33%


















Equity in loss of investee companies, net of tax


(9)




-




(9)



Net earnings from continuing operations

$

465



$

12



$

477



Diluted EPS from continuing operations

$

.76



$

.02



$

.78



Diluted weighted average number of















common shares outstanding


615








615





















Three Months Ended December 31, 2012





2012



Restructuring 


2012






Reported 



Charges  (c) 


Adjusted 



Revenues

$

3,698



$

-



$

3,698



OIBDA


847




19




866



OIBDA margin (b)


23%








23%


















Operating income


726




19




745



Interest expense


(94)




-




(94)



Interest income


2




-




2



Other items, net


1




-




1



Earnings from continuing operations before income taxes


635




19




654



Provision for income taxes


(227)




(8)




(235)



Effective income tax rate


36%








36%


















Equity in loss of investee companies, net of tax


(5)




-




(5)



Net earnings from continuing operations

$

403



$

11



$

414



Diluted EPS from continuing operations

$

.62



$

.02



$

.64



Diluted weighted average number of















common shares outstanding


650








650




(a) 

Restructuring charges at Entertainment, Cable Networks, Publishing, Local Broadcasting and Corporate primarily for the reorganization and closure of certain business operations.

(b)  

OIBDA margin is defined as OIBDA or Adjusted OIBDA divided by revenues.

(c)  

Restructuring charges at Entertainment, Publishing, Local Broadcasting and Corporate primarily for the reorganization of certain business operations and early contract termination costs.

 

 

CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)
(Unaudited; in millions, except per share amounts)



























Twelve Months Ended December 31, 2013 





2013

Restructuring 


Impairment 


Extinguishment 


2013





Reported 

Charges  (a) 


Charges  


of Debt 


Adjusted 


Revenues

$

15,284


$

-



$

-



$

-



$

15,284



OIBDA


3,716



20




-




-




3,736



OIBDA margin (b) 


24%















24%

























Operating income


3,259



20




-




-




3,279



Interest expense


(376)



-




-




-




(376)



Interest income


8



-




-




-




8



Other items, net


6



-




-




-




6



Earnings from continuing operations before income taxes


2,897



20




-




-




2,917



Provision for income taxes


(978)



(8)




-




-




(986)



Effective income tax rate


34%















34%

























Equity in loss of investee companies, net of tax


(46)



-




-




-




(46)



Net earnings from continuing operations

$

1,873


$

12



$

-



$

-



$

1,885



Diluted EPS from continuing operations

$

3.00


$

.02



$

-



$

-



$

3.02



Diluted weighted average number of






















common shares outstanding


624















624


















































Twelve Months Ended December 31, 2012 





2012

Restructuring 


Impairment 


Extinguishment 


2012





Reported 

Charges  (c) 


Charges  (d) 


of Debt 


Adjusted 


Revenues

$

14,089


$

-



$

-



$

-



$

14,089



OIBDA


3,458



19




11




-




3,488



OIBDA margin (b) 


25%















25%

























Operating income


2,983



19




11




-




3,013



Interest expense


(402)



-




-




-




(402)



Interest income


6



-




-




-




6



Net loss on early extinguishment of debt


(32)



-




-




32




-



Other items, net


6



-




-




-




6



Earnings from continuing operations before income taxes


2,561



19




11




32




2,623



Provision for income taxes


(892)



(8)




3




(13)




(910)



Effective income tax rate


35%















35%

























Equity in loss of investee companies, net of tax


(35)



-




-




-




(35)



Net earnings from continuing operations

$

1,634


$

11



$

14



$

19



$

1,678



Diluted EPS from continuing operations

$

2.48


$

.02



$

.02



$

.03



$

2.55



Diluted weighted average number of






















common shares outstanding


659















659




(a)   

Restructuring charges at Entertainment, Cable Networks, Publishing, Local Broadcasting and Corporate primarily for the reorganization and closure of certain business operations.

(b)  

OIBDA margin is defined as OIBDA or Adjusted OIBDA divided by revenues.

(c)  

Restructuring charges at Entertainment, Publishing, Local Broadcasting and Corporate primarily for the reorganization of certain business operations and early contract termination costs.

(d)   

Reflects a noncash impairment charge to reduce goodwill at Local Broadcasting in connection with radio station divestitures.

©2012 PR Newswire. All Rights Reserved.

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KXVO. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.