Viacom Reports Higher 1996 Fourth Quarter Results From Continuing Operations.NEW YORK--(BUSINESS WIRE)--March 4, 1997--Viacom Inc. (AMEX AMEXSee: American Stock Exchange : VIA and VIAB) today announced results for the fourth quarter and year ended December 31, 1996. Results from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the fourth quarter of 1996 were led by sharply higher revenues in every business segment and double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" increases in earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in all but the Video and Music/Theme Parks segment. For the quarter, Viacom reported revenues of $3.4 billion, an increase of 22% from $2.8 billion in the fourth quarter of 1995; EBITDA of $478 million, up 10% from $435 million in the same quarter last year; and operating income of $250 million, unchanged from the same year-earlier period. For the full year ended December 31, 1996, Viacom reported revenues of $12.1 billion, EBITDA of $2.1 billion, and operating income of $1.3 billion, compared with revenues of $10.9 billion, EBITDA of $2.1 billion, and operating income of $1.4 billion for 1995. Excluding the previously announced $98 million charge associated with the Company's Blockbuster block·bust·er n. 1. Something, such as a film or book, that sustains widespread popularity and achieves enormous sales. 2. A high-explosive bomb used for demolition purposes. 3. unit, Viacom's EBITDA for the fourth quarter of 1996 increased 32% to $576 million and EBITDA for the full year rose 4% to $2.2 billion, versus the prior year. Results from continuing operations for the periods exclude contributions from Viacom's Cable, Radio and interactive game operations, including Virgin Interactive Entertainment, which are accounted for as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Sumner Sum·ner , James Batcheller 1887-1955. American biochemist. He shared a 1946 Nobel Prize for his pioneering work on crystallizing enzymes. M. Redstone, Chairman and Chief Executive Officer of Viacom, said, "The Company's fourth quarter results, with robust revenue growth in all segments and strong EBITDA and operating income growth in three of our four business segments, completes Viacom's excellent second-half performance in 1996. We made significant operational progress in the year, and benefited from superior growth in such major units as MTV Networks MTV Networks is a division of media conglomerate Viacom that oversees the operation of many TV network and Internet brands, including the first MTV channel. The company was established in 1984 after Warner Communications and American Express decided to divest the basic cable , Paramount's motion picture and television operations, Simon & Schuster Simon & Schuster U.S. publishing company. It was founded in 1924 by Richard L. Simon (1899–1960) and M. Lincoln Schuster (1897–1970), whose initial project, the original crossword-puzzle book, was a best-seller. and Showtime show·time or show time n. 1. The time at which an entertainment, such as the showing of a movie, is scheduled to start. 2. Slang The time at which an activity is to begin. Noun 1. Networks." "We also made significant strides in sharpening For image sharpening, see . Sharpening is the process of creating or refining a sharp edge on a tool or implement. The term has a wide application but can be expressed as the creation of two intersecting planes which produce an edge that is sharp enough to cut through the target our focus, strengthening our balance sheet and expanding our core businesses," Mr. Redstone added. "Among our major accomplishments were the split-off The process whereby a parent corporation organizes a subsidiary corporation to which it transfers part of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the shareholders of the parent corporation in exchange for a portion of their of our cable systems and the agreement to sell our radio operations at a combined value of $3.4 billion, three major long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. television output deals, continued international and domestic expansion of our cable TV networks, and entry into the broadcast network business through the United Paramount Network." For the fourth quarter of 1996, Viacom reported net earnings from continuing operations of $17 million, or $.01 per common share, versus a net loss from continuing operations of $12 million, or a loss of $.07 per common share, in the same year-earlier period. For full-year 1996, Viacom reported net earnings from continuing operations of $171 million, or $.30 per common share, compared with $151 million, or $.24 per common share in 1995. Excluding the Blockbuster charge, 1996 fourth quarter net earnings from continuing operations increased significantly to $84 million, or $.19 per common share, and 1996 full year net earnings from continuing operations rose sharply to $238 million, or $.48 per common share. For the fourth quarter of 1996, due primarily to the impact of the plan to exit the interactive game business, Viacom reported a net loss attributable to common stock of $242 million, or a loss of $.68 per common share, versus a net loss attributable to common stock of $11 million, or a loss of $.03 per common share, in the same year-earlier period. For full-year 1996, due primarily to the gain resulting from the split-off of the Cable operations, Viacom reported net earnings attributable to common stock of $1.2 billion, or $3.23 per common share, compared with $163 million, or $.43 per common share in 1995. Discontinued Operations Revenue, EBITDA, operating income and net earnings from continuing operations for the 1996 fourth-quarter and full-year periods exclude contributions from Viacom's cable operations, which were split-off from the Company on July 31, 1996; Viacom Radio, which the Company has agreed to sell to Evergreen evergreen, term commonly used as synonymous with conifer and applied also to all those broad-leaved plants that bear green leaves throughout the year. Of the latter, most are plants of the tropics, subtropics, and other areas where the growing season is prolonged (e. Media Corporation for $1.075 billion; and the Company's interactive game operations, including Virgin Interactive Entertainment, which Spelling Entertainment Group plans to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose in 1997. Results from these units are accounted for as discontinued operations and prior-year results have been reclassified to conform with the current year presentation. The cable split-off during the third quarter of 1996, resulted in a gain of $1.3 billion and reductions in interest expense and common shares outstanding. In the fourth quarter of 1996, Viacom recognized a net loss of $245 million primarily attributable to the anticipated loss on the disposition and operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of the interactive game operations, which includes estimated losses through the anticipated disposition date. These operating losses include costs to refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. Virgin Interactive Entertainment on the more profitable segments of the game market. Results for 1996 do not reflect the anticipated gain associated with the disposition of Viacom Radio which will be recognized upon completion of the transaction. Segment Results of Continuing Operations (Fourth quarter and year ended December 31, 1996 versus Fourth quarter and year ended December 31, 1995) Networks and Broadcasting (Basic cable and premium subscription television program services and television stations) For the quarter, Networks and Broadcasting revenues increased 23% to $703 million and EBITDA increased 40% to $253 million. MTVN revenues of $399 million increased 30% and EBITDA of $176 million increased 45%, principally reflecting higher advertising and affiliate revenues. Advertising revenue gains were driven by continued ratings growth at Nickelodeon, which, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Nielsen Media Research Nielsen Media Research (NMR) is an American firm that measures media audiences, including television, radio, theatre films (via the AMC MAP program) and newspapers. NMR, headquartered in New York City and operating primarily from Oldsmar, Florida, is best-known for the this season, commands a 57% share of the kids audience age 2-11. Showtime Networks Inc.'s revenues and EBITDA increased 13% and 8%, respectively. Television stations revenues and EBITDA increased 14% and 38%, respectively, reflecting the swapping of network affiliated television stations for UPN affiliates This is a list of stations that were affiliated with UPN in the United States at the time of network closure. UPN shut down on September 15, 2006. Former affiliates of UPN became affiliates of The CW Television Network, MyNetworkTV, another network, or reverted to independent . On a same-station basis, Television revenues and EBITDA increased 16%, and 44%, respectively. For the year, Networks and Broadcasting revenues increased 18% to $2.4 billion and EBITDA increased 20% to $755 million principally due to higher advertising and affiliate revenues at MTVN. MTVN revenues of $1.3 billion increased 27% and EBITDA of $529 million increased 29%. MTVN's EBITDA growth was driven by the increased revenues partially offset by start-up Start-up The earliest stage of a new business venture. costs of Nick at Nite's TV Land and M2, higher programming investment and increased expenses associated with international expansion. Showtime Networks Inc.'s revenues and EBITDA increased 12% and 19%, respectively, reflecting a subscriber increase of approximately 1.0 million to 15.9 million. Television stations revenues and EBITDA each increased 2%. On a same-station basis, revenues and EBITDA for Television stations increased 6% and 11%, respectively. Entertainment (Motion Pictures and Television Programming and Movie Theaters) For the quarter, the Entertainment segment benefited from the strong performance of Paramount feature films and first run syndication See syndication format. television programming, which resulted in a 34% increase in revenues to $1.1 billion, and a 97% increase in EBITDA to $81 million. Increased revenues reflect the strong foreign theatrical and domestic video performance of Mission: Impossible, and domestic theatrical release of Star Trek  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. : First Contact, The First Wives Club and Beavis and Butt-Head
Do America Beavis and Butt-Head Do America is an animated feature film, based on the TV series, Beavis and Butt-Head, that was released on December 20, 1996, produced by Paramount Pictures, Geffen Pictures, and MTV Films, and directed by Mike Judge. . The quarter also benefited from higher domestic syndication
revenues for television programming, principally Star Trek: Deep Space
Nine. Spelling's results benefited from a significant foreign
library licensing agreement with KirchGroup, partially offset by
softness in the direct-to-video market and increased production
spending. Spelling reported EBITDA of $25 million, an increase of 12%
over the fourth quarter of 1995.
For the year, Entertainment revenues increased 3% to $3.5 billion, while EBITDA decreased 5% to $455 million. Feature film revenues from Paramount Pictures' major 1996 theatrical releases, including Mission: Impossible, The First Wives Club and Star Trek: First Contact, and the impact, principally in the first quarter, of Paramount's KirchGroup alliance were offset primarily by lower EBITDA at Spelling, stemming from softness in the direct-to-video market and significantly higher production spending. Video and Music/Theme Parks (Video and Music Stores/Theme Parks) For the quarter, Video and Music/Theme Parks revenues increased 18% to $1.0 billion driven by higher video store revenues reflecting an increase in the number of company owned video stores as well as higher worldwide same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. , which increased approximately 6%. EBITDA of $89 million includes the impact of a write-off of music inventory of $9 million and a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $89 million. The restructuring charge reflects costs associated with the closing of approximately 50, or about 10%, of Blockbuster Music stores, as well as certain costs associated with the move of Blockbuster's headquarters from Fort Lauderdale Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. to Dallas. Excluding the Blockbuster charge, Video and Music/Theme Parks EBITDA of $187 million for the quarter increased 1%, reflecting continued difficult conditions in the music retailing industry and increased rental tape amortization costs. Video stores revenues increased 23% to $822 million and EBITDA increased 3% to $194 million. Music stores, excluding the attributable impact of the Blockbuster charge, reported EBITDA of $13 million for the fourth quarter of 1996 as compared to $17 million for the fourth quarter of 1995. Theme Parks, which resume full time operation during the second and third quarters, posted a small loss. For the year, Video and Music/Theme Parks revenues increased 18% to $3.9 billion, primarily reflecting an increased number of company owned video stores in operation in 1996 and a 6% increase in worldwide same-store sales. Blockbuster Video added the most stores in its history in 1996 -- significantly higher than 1995 -- and ended the year with 5,317 stores, a net increase of 804 stores over the prior year. Video and Music/Theme Parks EBITDA of $677 million for 1996 includes the impact of a write-off of music inventory of $9 million and a restructuring charge of $89 million. Excluding the impact of the Blockbuster charge, Video and Music/Theme Parks EBITDA of $775 million decreased 6% reflecting continuing difficult conditions in the music retailing industry and increased rental tape amortization. Revenues from music stores of $616 million for 1996 increased 5% and EBITDA, excluding the impact of the Blockbuster charge attributable to music, decreased to $2 million for 1996. Theme Parks revenues and EBITDA for 1996 increased 5% and 16%, respectively. Publishing (Consumer, Educational and International/Reference) For the quarter, Publishing posted a 12% increase in revenues to $641 million driven by strong sales from Higher Education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. , Educational Technology, International, and Macmillan Publishing USA. The Higher Education Division's performance was primarily attributable to a strong front list and the successful integration of Internet and CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). technology into textbooks. The Educational Technology Group, including Computer Curriculum Corporation and Educational Management Group, benefited from school districts' increased use of electronic instruction. International and Macmillan Publishing USA benefited from strong title sales and an enhanced focus in the Asian and Latin American markets. Publishing EBITDA increased 20% to $99 million. For the year, Publishing revenues increased 7% to a record $2.3 billion and EBITDA increased 7% to $365 million, primarily reflecting higher sales from the Higher Education, Macmillan Publishing USA, and International divisions, stemming principally from strong domestic title sales and an enhanced focus in the Latin American and Asian markets. The Consumer Group's EBITDA rose slightly reflecting strong sales for Undaunted Courage by Stephen Ambrose Stephen Edward Ambrose (January 10, 1936 – October 13, 2002) was an American historian and biographer of U.S. Presidents Dwight Eisenhower and Richard M. Nixon. He received his Ph.D. in 1960 from the University of Wisconsin-Madison. , Angela's Ashes by Frank McCourt
Francis "Frank" McCourt (born August 19, 1930) is an Irish-American teacher and author. , Moonlight Becomes You by Mary Higgins Clark Mary Theresa Eleanor Higgins Clark Conheeney, best known as Mary Higgins Clark, (b December 24, 1927 in the Bronx, New York) is an American author of suspense novels. and It Takes A Village by Hillary Rodham Rodham is an English surname which may refer to a number of persons or places. People Family of Hillary Rodham Clinton
Viacom Inc. is one of the world's largest entertainment and publishing companies and a leading force in nearly every segment of the international media marketplace. The operations of Viacom include Blockbuster video and music, MTV Networks, Paramount Parks Paramount Parks was an operator of theme parks and attractions, which annually attracted about 13 million patrons. Viacom had assumed control of the company as part of its acquisition of Paramount Pictures in 1994. , Paramount Pictures, Paramount Television Paramount Television (re-incorporated from Desilu Productions) was an American television production/distribution company that was active from December 1967 to May 28, 2006 and was launched under Gulf+Western. , Showtime Networks, Simon & Schuster and television stations and movie screens in 12 countries. Viacom also has a majority interest in Spelling Entertainment Group, as well as a half interest in Comedy Central and USA Networks USA Network is a popular American cable television network with about 89 million household subscribers as of 2005. The network shows a variety of original and second-run programming, from syndicated TV series to edited movies. , including the Sci-Fi Channel. National Amusements National Amusements, Inc. is a privately owned media and entertainment company based in Dedham, Massachusetts. The company was founded in 1936 as the Northeast Theatre Corporation by Michael Redstone. , Inc., a closely held corporation Noun 1. closely held corporation - stock is publicly traded but most is held by a few shareholders who have no plans to sell corp, corporation - a business firm whose articles of incorporation have been approved in some state which owns and operates approximately 1,100 screens in the U.S. and the U.K., is the parent company of Viacom. More information about Viacom is available at the Company's Web site located at http://www.viacom.com . -0-
VIACOM INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited; all amounts, except per share amounts, are in millions)
Three months ended Year Ended
December 31, December 31,
1996 1995 1996 1995
Revenues $ 3,409.4 $ 2,804.1 $ 12,084.2 $ 10,915.9
Operating income $ 250.0 $ 250.2 $ 1,274.3 $ 1,398.7
Other income (expense):
Interest expense, net (195.8) (205.0) (798.0) (809.3)
Other items, net 2.4 (1.0) 4.2 (9.6)
Earnings from continuing
operations before
income taxes 56.6 44.2 480.5 579.8
Provision for
income taxes (33.2) (28.9) (295.5) (367.1)
Equity in loss of
affiliated companies,
net of tax (3.7) (23.8) (13.0) (52.9)
Minority interest (2.5) (3.4) (1.3) (9.3)
Net earnings (loss) from
continuing operations 17.2 (11.9) 170.7 150.5
Discontinued operations,
net of tax (244.6) 16.4 1,077.2 72.0
Net earnings (loss) (227.4) 4.5 1,247.9 222.5
Cumulative convertible
preferred stock dividend
requirement (15.0) (15.0) (60.0) (60.0)
Net earnings (loss)
attributable to common
stock $ (242.4) $ (10.5) $ 1,187.9 $ 162.5
Earnings (loss) per
common share:
Primary:
Net earnings (loss)
from continuing
operations $ 0.01 $ (0.07) $ 0.30 $ 0.24
Net earnings (loss) $ (0.68) $ (0.03) $ 3.23 $ 0.43
Fully diluted:
Net earnings (loss)
from continuing
operations $ 0.01 $ (0.07) $ 0.30 $ 0.24
Net earnings (loss) $ (0.68) $ (0.03) $ 3.23 $ 0.43
Weighted average number
of common shares and
common share equivalents:
Primary 354.9 369.2 367.4 375.1
Fully diluted 354.9 369.2 367.5 375.5
-0-
Viacom Inc. and Subsidiaries
Business Segment Information
(Dollars in millions)
Three months ended Percent Year Ended Percent
December 31, Change December 31, Change
1996 1995 1996 1995
Revenues:
Networks and
Broadcasting $ 703.4 $ 573.1 23% $ 2,404.0 $ 2,030.8 18%
Entertainment 1,051.3 782.0 34 3,493.4 3,407.5 3
Video and Music/
Theme Parks 1,041.9 886.0 18 3,920.4 3,333.4 18
Publishing 640.8 570.3 12 2,331.7 2,171.1 7
Intercompany (28.0) (7.3) (284) (65.3) (26.9) (143)
Total $3,409.4 $ 2,804.1 22 $12,084.2 $10,915.9 11
EBITDA:
Networks and
Broadcasting $ 253.0 $ 180.3 40% $ 755.3 $ 627.9 20%
Entertainment 80.5 40.8 97 454.7 480.9 (5)
Video and Music/
Theme Parks(a) 88.5 184.4 (52) 676.6 823.0 (18)
Publishing 98.5 82.1 20 365.2 340.2 7
Segment EBITDA 520.5 487.6 7 2,251.8 2,272.0 (1)
Corporate
expenses (42.9) (52.5) 18 (159.9) (156.6) (2)
Total(a) $ 477.6 $ 435.1 10 $ 2,091.9 $ 2,115.4 (1)
Operating income:
Networks and
Broadcasting $ 217.1 $ 148.0 47% $ 630.2 $ 520.3 21%
Entertainment 47.9 8.8 NM 326.6 354.8 (8)
Video and Music/
Theme Parks (28.0) 106.8 (126) 273.1 501.5 (46)
Publishing 59.6 41.7 43 217.2 186.3 17
Segment
operating
income 296.6 305.3 (3) 1,447.1 1,562.9 (7)
Corporate
expenses (46.6) (55.1) 15 (172.8) (164.2) (5)
Total $ 250.0 $ 250.2 0 $ 1,274.3 $ 1,398.7 (9)
NM - Not Meaningful
(a) Results of operations include a $98 million Blockbuster
charge comprised of a music inventory charge of $9 million and a
restructuring charge of $89 million. Excluding the impact of the
Blockbuster charge, EBITDA for the fourth quarter and year ended
December 31, 1996 is as follows:
Video and Music/Theme Parks Total Company
Quarter Year Quarter Year
EBITDA as reported $ 88.5 $676.6 $477.6 $2,091.9
Restructuring charge 88.9 88.9 88.9 88.9
Inventory charge 9.4 9.4 9.4 9.4
EBITDA excluding
Blockbuster charge $186.8 $774.9 $575.9 $2,190.2
CONTACTS: Press: Analysts: Carl D. Folta George S George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). . Smith, Jr. Senior Vice President, Senior Vice President, Corporate Relations Chief Financial Officer (212) 258-6352 (212) 258-6390 Susan Duffy Vaughn A. Clarke Vice President, Senior Vice President, Corporate Relations Treasurer (212) 258-6347 (212) 258-6429 http://www.viacom.com |
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