• Grew Global Streaming Revenue 92% Year-Over-Year, Driven by Robust Growth in Subscriptions and Advertising
    • Added 6.5M Global Streaming Subscribers to Reach Over 42M in the Quarter, and Realized 82% Year-Over-Year Growth in Streaming Subscription Revenue, Fueled by the Diverse Global Content Offering of Paramount+
    • Generated 102% Year-Over-Year Growth in Streaming Advertising Revenue, Largely Driven by Pluto TV, Which More Than Doubled Revenue for the Fourth Consecutive Quarter
  • Increased Total Company Revenue 8% Year-Over-Year, Including 24% Growth in Advertising Revenue and 9% Growth in Affiliate Revenue Year-Over-Year
  • Recently Announced Comprehensive, Multi-Year Distribution Agreements with Charter Communications and Cox Communications for Continued Carriage of ViacomCBS Content and Streaming Services
  • Expanding Paramount+ Footprint Internationally to Include the UK, Ireland, Italy, Germany, Switzerland & Austria, as Part of Innovative New Sky Partnership

ViacomCBS Inc. (NASDAQ: VIAC; VIACA) today reported financial results for the quarter ended June 30, 2021.

STATEMENT FROM BOB BAKISH, PRESIDENT & CEO

“In a quarter of strong business performance, including growth in advertising and affiliate, streaming was a standout. We continued to accelerate our global streaming momentum and delivered phenomenal results across our flagship streaming services. For the second consecutive quarter, Paramount+ fueled more than 6 million additions to our global streaming subscription base, which now reaches over 42 million. This growth was driven by the power of the service’s differentiated content strategy and expanding content slate. Looking ahead, we're excited about our opportunity to build on this momentum, as we scale Paramount+'s content offerings across genres and expand our reach with global audiences.”

Q2 2021 RESULTS*   $ IN MILLIONS, EXCEPT PER SHARE AMOUNTS Three Months Ended June 30 Six Months Ended June 30 GAAP

2021

2020

B/(W)%

2021

2020

B/(W)%

Revenue $

6,564

$

6,075

8

%

$

13,976

$

12,574

11

%

Operating income $

1,226

$

1,251

(2

)%

$

2,754

$

2,153

28

%

Net earnings from continuing operations attributable to ViacomCBS $

995

$

453

120

%

$

1,894

$

954

99

%

Diluted EPS from continuing operations attributable to ViacomCBS $

1.5

$

0.73

105

%

$

2.93

$

1.55

89

%

  Non-GAAP† Adjusted OIBDA $

1,240

$

1,652

(25

)%

$

2,867

$

2,897

(1

)%

Adjusted net earnings from continuing operations attributable to ViacomCBS $

640

$

744

(14

)%

$

1,601

$

1,434

12

%

Adjusted diluted EPS from continuing operations attributable to ViacomCBS $

0.97

$

1.21

(20

)%

$

2.47

$

2.32

6

%

  † Non-GAAP measures are detailed in the Supplemental Disclosures at the end of this release. *During the fourth quarter of 2020, ViacomCBS entered into an agreement to sell Simon & Schuster, which was previously reported as the Publishing segment. Simon & Schuster has been presented as a discontinued operation in the company’s consolidated financial statements for all periods.

OVERVIEW OF Q2 REVENUE

REVENUE BY TYPE

  • Advertising revenue grew 24% year-over-year, driven by CBS’ broadcasts of 2021 sporting events for which there were no comparable broadcasts in the prior-year period as a result of COVID-19, and an improved advertising market.
  • Affiliate revenue increased 9% year-over-year, reflecting expanded distribution and higher reverse compensation and retransmission fees.
  • Streaming revenue rose 92% year-over-year:
    • Streaming advertising revenue more than doubled, growing 102% year-over-year, driven by growth in advertising on Pluto TV, Paramount+ and other digital video platforms.
    • Streaming subscription revenue grew 82% year-over-year, reflecting strong subscriber growth across the company’s subscription services.
  • Theatrical revenue reflects the release of A Quiet Place Part II in the second quarter of 2021, while there were no releases in the prior-year period as a result of COVID-19.
  • Licensing and other revenue decreased 36% year-over-year, primarily reflecting the licensing of the domestic streaming rights to South Park in the prior year and the impact on film licensing from the absence of theatrical releases throughout most of 2020 and the first quarter of 2021 due to COVID-19.
$ IN MILLIONS   Three Months Ended June 30   Six Months Ended June 30  

2021

 

2020

  $ B/(W) %  

2021

 

2020

  $ B/(W) % Advertising*   $

2,097

  $

1,686

  $

411

 

24

%

  $

4,778

  $

3,905

  $

873

 

22

%

Affiliate*  

2,107

 

1,929

 

178

 

9

 

4,182

 

3,897

 

285

 

7

Streaming  

983

 

513

 

470

 

92

 

1,799

 

1,007

 

792

 

79

Advertising  

502

 

248

 

254

 

102

 

930

 

513

 

417

 

81

Subscription  

481

 

265

 

216

 

82

 

869

 

494

 

375

 

76

Theatrical  

134

 

3

 

131

 

n/m

   

135

 

170

 

(35

)

 

(21

)

Licensing and other  

1,243

 

1,944

 

(701

)

 

(36

)

 

3,082

 

3,595

 

(513

)

 

(14

)

Total Revenue   $

6,564

  $

6,075

  $

489

 

8

%

  $

13,976

  $

12,574

  $

1,402

 

11

%

                  *Excludes streaming revenue n/m = not meaningful

GLOBAL STREAMING HIGHLIGHTS

  • Global streaming subscribers rose to more than 42M, adding 6.5M subscribers in the quarter.
    • Subscriber additions in the quarter were led by Paramount+.
      • Domestically, Paramount+ originals drove strong subscriber sign-ups and engagement.
        • The top drivers of sign-ups included the new iCarly series, Infinite, UEFA Champions League, The Challenge: All Stars and Why Women Kill.
        • Engagement reached an all-time high in the quarter, driven by Infinite, SpongeBob SquarePants, the new iCarly series, NCIS and The SpongeBob Movie: Sponge on the Run.
        • Total viewing hours and watch time per active subscriber grew quarter-over-quarter.
      • Internationally, Paramount+ launches to date have had strong momentum, led by its progress in Latin America.
      • Paramount+ to launch in Australia and New Zealand this August and in key European markets, including the UK, Ireland, Italy, Germany, Switzerland and Austria in 2022 as part of new Sky partnership.
    • SHOWTIME OTT delivered strong growth in sign-ups and engagement, driven by originals, including The Chi, Shameless and City on a Hill.
  • Global expansion and domestic growth helped global Pluto TV MAUs exceed 52M in the quarter and revenue surge 169% year-over-year, more than doubling for the fourth quarter in a row.
    • Domestic watch-time per user grew 45% year-over-year.

REPORTING SEGMENTS

TV ENTERTAINMENT

  • In Q2, CBS was the most-watched network in Prime, Daytime and Late Night and claimed the quarter’s top broadcast series, top 3 dramas, top 6 comedies and top news magazine.
  • Revenue grew 23% year-over-year, reflecting growth across all revenue streams.
    • Advertising revenue increased 24% year-over-year, reflecting CBS’ broadcast of the national semi-finals and championship games of the NCAA Tournament and professional golf tournaments, as well as an improved advertising market, partially offset by lower ratings.
    • Affiliate revenue grew 10% year-over-year, driven by growth in reverse compensation and retransmission fee revenue.
    • Streaming revenue rose 81% year-over-year, reflecting subscriber growth at Paramount+, as well as advertising growth from Paramount+ and other digital video platforms.
    • Licensing and other revenue increased 16% year-over-year, primarily driven by a higher volume of programming licensed internationally and produced for third-party broadcasters.
  • Adjusted OIBDA decreased 45% year-over-year, reflecting the company’s increased investment in Paramount+.
$ IN MILLIONS   Three Months Ended June 30 Six Months Ended June 30  

2021

2020

$ B/(W) %

2021

2020

$ B/(W) % Revenue   $

2,809

$

2,287

$

522

23

%

$

6,320

$

5,234

$

1,086

21

%

Advertising*  

1,088

880

208

24

2,895

2,168

727

34

Affiliate*  

691

629

62

10

1,384

1,252

132

11

Streaming  

350

193

157

81

672

397

275

69

Licensing and other  

680

585

95

16

1,369

1,417

(48

)

(3

)

Expenses  

2,593

1,895

(698

)

(37

)

5,655

4,269

(1,386

)

(32

)

Adjusted OIBDA   $

216

$

392

$

(176

)

(45

)%

$

665

$

965

$

(300

)

(31

)%

    *Excludes streaming revenue

CABLE NETWORKS

  • In Q2, ViacomCBS had the most programs among the top 25 original cable series with P18-34 and P2-11 than any other cable family.
  • Revenue increased 8% year-over-year, primarily driven by higher streaming, advertising and affiliate revenue, partially offset by lower licensing revenue.
    • Advertising revenue increased 24% year-over-year, largely driven by an improved advertising market and a 4-percentage point favorable impact of foreign exchange rate changes, partially offset by lower ratings.
    • Affiliate revenue grew 9% year-over-year, reflecting expanded vMVPD distribution and rate increases, partially offset by subscriber declines.
    • Streaming revenue increased 98% year-over-year, largely fueled by advertising revenue growth from Pluto TV, as well as growth in subscribers for subscription streaming services, including SHOWTIME OTT and BET+.
    • Licensing and other revenue decreased 48% year-over-year, primarily reflecting the licensing of the domestic streaming rights to South Park in the prior-year quarter, partially offset by revenue from the licensing of programming to Paramount+.
  • Adjusted OIBDA declined 12% year-over-year, reflecting the benefit to 2020 from the domestic licensing of South Park and an increased investment in content, partially offset by the above-mentioned revenue increases.
$ IN MILLIONS   Three Months Ended June 30 Six Months Ended June 30  

2021

2020

$ B/(W) %

2021

2020

$ B/(W) % Revenue   $

3,475

$

3,232

$

243

8

%

$

6,734

$

6,090

$

644

11

%

Advertising*  

1,011

815

196

24

1,889

1,760

129

7

Affiliate*  

1,416

1,300

116

9

2,798

2,645

153

6

Streaming  

633

320

313

98

1,127

610

517

85

Licensing and other  

415

797

(382

)

(48

)

920

1,075

(155

)

(14

)

Expenses  

2,350

1,947

(403

)

(21

)

4,425

4,011

(414

)

(10

)

Adjusted OIBDA   $

1,125

$

1,285

$

(160

)

(12

)%

$

2,309

$

2,079

$

230

11

%

        *Excludes streaming revenue

FILMED ENTERTAINMENT

  • Revenue grew 3% year-over-year, primarily driven by current quarter theatrical releases, partially offset by lower licensing revenue.
    • Theatrical revenue reflects the release of A Quiet Place Part II.
    • Licensing and other revenue decreased 17% year-over-year because of lower home entertainment revenue as a result of the absence of theatrical releases due to COVID-19.
  • Adjusted OIBDA declined 38% year-over-year, reflecting distribution costs associated with current quarter theatrical releases and other anticipated releases later in 2021.
$ IN MILLIONS   Three Months Ended June 30 Six Months Ended June 30  

2021

2020

$ B/(W) %

2021

2020

$ B/(W) % Revenue   $

667

$

647

$

20

3

%

$

1,664

$

1,458

$

206

14

%

Theatrical  

134

3

131

n/m

 

135

170

(35

)

(21

)

Licensing and other  

533

644

(111

)

(17

)

1,529

1,288

241

19

Expenses  

595

531

(64

)

(12

)

1,388

1,315

(73

)

(6

)

Adjusted OIBDA   $

72

$

116

$

(44

)

(38

)%

$

276

$

143

$

133

93

%

    n/m = not meaningful  

BALANCE SHEET & LIQUIDITY

  • As of June 30, 2021, the company had $5.4B of cash on its balance sheet and a committed $3.5B revolving credit facility that remains undrawn.

ABOUT VIACOMCBS

ViacomCBS (NASDAQ: VIAC; VIACA) is a leading global media and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic consumer brands, its portfolio includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, Pluto TV and Simon & Schuster, among others. The company delivers the largest share of the U.S. television audience and boasts one of the industry’s most important and extensive libraries of TV and film titles. In addition to offering innovative streaming services and digital video products, ViacomCBS provides powerful capabilities in production, distribution and advertising solutions for partners on five continents.

For more information about ViacomCBS, please visit www.viacomcbs.com and follow @ViacomCBS on social platforms.

VIAC-IR

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This communication contains both historical and forward-looking statements, including statements related to our future results and performance. All statements that are not statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of 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 CBS Corporation and Viacom Inc. businesses and investments in new businesses, products, services and technologies, including our streaming initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; content infringement; the impact of COVID-19 (and other widespread health emergencies or pandemics) and measures taken in response thereto; domestic and global political, economic and/or regulatory factors affecting our businesses generally; liabilities related to discontinued operations and former businesses; the loss of key talent and strikes and other union activity; potential conflicts of interest arising from our ownership structure with a controlling stockholder; and other factors described in our news releases and filings with the Securities and Exchange Commission, including but not limited to our most recent Annual Report on Form 10-K and reports on Form 10-Q and Form 8-K. There may be additional risks, uncertainties and factors that we do not currently view as material or that are not necessarily known. The forward-looking statements included in this communication are made only as of the date of this communication, and we do not undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.

VIACOMCBS INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions, except per share amounts)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2021

 

2020

 

2021

 

2020

Revenues

 

$

6,564

 

 

$

6,075

 

 

$

13,976

 

 

$

12,574

 

Costs and expenses:

 

 

 

 

 

 

 

 

Operating

 

3,865

 

 

3,361

 

 

8,228

 

 

7,317

 

Selling, general and administrative

 

1,459

 

 

1,183

 

 

2,881

 

 

2,481

 

Depreciation and amortization

 

95

 

 

122

 

 

194

 

 

234

 

Restructuring and other corporate matters

 

35

 

 

158

 

 

35

 

 

389

 

Total costs and expenses

 

5,454

 

 

4,824

 

 

11,338

 

 

10,421

 

Net gain on sales

 

116

 

 

 

 

116

 

 

 

Operating income

 

1,226

 

 

1,251

 

 

2,754

 

 

2,153

 

Interest expense

 

(243

)

 

(263

)

 

(502

)

 

(504

)

Interest income

 

13

 

 

11

 

 

26

 

 

25

 

Net gains from investments

 

32

 

 

32

 

 

52

 

 

32

 

Loss on extinguishment of debt

 

 

 

(103

)

 

(128

)

 

(103

)

Other items, net

 

(10

)

 

(26

)

 

(29

)

 

(54

)

Earnings from continuing operations before income taxes and equity

in loss of investee companies

 

1,018

 

 

902

 

 

2,173

 

 

1,549

 

(Provision) benefit for income taxes

 

34

 

 

(192

)

 

(192

)

 

(326

)

Equity in loss of investee companies, net of tax

 

(44

)

 

(12

)

 

(62

)

 

(21

)

Net earnings from continuing operations

 

1,008

 

 

698

 

 

1,919

 

 

1,202

 

Net earnings from discontinued operations, net of tax

 

41

 

 

28

 

 

53

 

 

43

 

Net earnings (ViacomCBS and noncontrolling interests)

 

1,049

 

 

726

 

 

1,972

 

 

1,245

 

Net earnings attributable to noncontrolling interests

 

(13

)

 

(245

)

 

(25

)

 

(248

)

Net earnings attributable to ViacomCBS

 

$

1,036

 

 

$

481

 

 

$

1,947

 

 

$

997

 

 

 

 

 

 

 

 

 

 

Amounts attributable to ViacomCBS:

 

 

 

 

 

 

 

 

Net earnings from continuing operations

 

$

995

 

 

$

453

 

 

$

1,894

 

 

$

954

 

Net earnings from discontinued operations, net of tax

 

41

 

 

28

 

 

53

 

 

43

 

Net earnings attributable to ViacomCBS

 

$

1,036

 

 

$

481

 

 

$

1,947

 

 

$

997

 

 

 

 

 

 

 

 

 

 

Basic net earnings per common share attributable to ViacomCBS:

 

 

 

 

 

 

 

 

Net earnings from continuing operations

 

$

1.52

 

 

$

.74

 

 

$

2.96

 

 

$

1.55

 

Net earnings from discontinued operations

 

$

.06

 

 

$

.05

 

 

$

.08

 

 

$

.07

 

Net earnings

 

$

1.58

 

 

$

.78

 

 

$

3.05

 

 

$

1.62

 

 

 

 

 

 

 

 

 

 

Diluted net earnings per common share attributable to ViacomCBS:

 

 

 

 

 

 

 

 

Net earnings from continuing operations

 

$

1.50

 

 

$

.73

 

 

$

2.93

 

 

$

1.55

 

Net earnings from discontinued operations

 

$

.06

 

 

$

.05

 

 

$

.08

 

 

$

.07

 

Net earnings

 

$

1.56

 

 

$

.78

 

 

$

3.01

 

 

$

1.62

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

646

 

 

615

 

 

634

 

 

615

 

Diluted

 

662

 

 

617

 

 

647

 

 

617

 

VIACOMCBS INC. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions, except per share amounts)

     

 

At

 

At

 

June 30, 2021

 

December 31, 2020

ASSETS

 

 

 

Current Assets:

 

 

 

Cash and cash equivalents

$

5,375

 

 

$

2,984

 

Receivables, net

6,824

 

 

7,017

 

Programming and other inventory

1,419

 

 

1,757

 

Prepaid expenses and other current assets

1,089

 

 

1,391

 

Current assets of discontinued operations

547

 

 

630

 

Total current assets

15,254

 

 

13,779

 

Property and equipment, net

1,979

 

 

1,994

 

Programming and other inventory

11,421

 

 

10,363

 

Goodwill

16,601

 

 

16,612

 

Intangible assets, net

2,805

 

 

2,826

 

Operating lease assets

1,440

 

 

1,602

 

Deferred income tax assets, net

1,235

 

 

993

 

Other assets

3,658

 

 

3,657

 

Assets held for sale

 

 

28

 

Assets of discontinued operations

811

 

 

809

 

Total Assets

$

55,204

 

 

$

52,663

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current Liabilities:

 

 

 

Accounts payable

$

602

 

 

$

571

 

Accrued expenses

1,828

 

 

1,714

 

Participants’ share and royalties payable

2,176

 

 

2,005

 

Accrued programming and production costs

1,168

 

 

1,141

 

Deferred revenues

1,104

 

 

978

 

Debt

17

 

 

16

 

Other current liabilities

1,230

 

 

1,391

 

Current liabilities of discontinued operations

461

 

 

480

 

Total current liabilities

8,586

 

 

8,296

 

Long-term debt

17,703

 

 

19,717

 

Participants’ share and royalties payable

1,326

 

 

1,317

 

Pension and postretirement benefit obligations

2,025

 

 

2,098

 

Deferred income tax liabilities, net

888

 

 

778

 

Operating lease liabilities

1,472

 

 

1,583

 

Program rights obligations

188

 

 

243

 

Other liabilities

1,960

 

 

2,158

 

Liabilities of discontinued operations

210

 

 

220

 

Redeemable noncontrolling interest

190

 

 

197

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

ViacomCBS stockholders’ equity:

 

 

 

5.75% Series A Mandatory Convertible Preferred Stock, par value $.001 per share; 25 shares authorized and 10 shares issued (2021)

 

 

 

Class A Common Stock, par value $.001 per share; 55 shares authorized; 41 (2021) and 52 (2020) shares issued

 

 

 

Class B Common Stock, par value $.001 per share; 5,000 shares authorized; 1,108 (2021) and 1,068 (2020) shares issued

1

 

 

1

 

Additional paid-in capital

32,901

 

 

29,785

 

Treasury stock, at cost; 503 (2021 and 2020) Class B shares

(22,958

)

 

(22,958

)

Retained earnings

12,007

 

 

10,375

 

Accumulated other comprehensive loss

(1,853

)

 

(1,832

)

Total ViacomCBS stockholders’ equity

20,098

 

 

15,371

 

Noncontrolling interests

558

 

 

685

 

Total Equity

20,656

 

 

16,056

 

Total Liabilities and Equity

$

55,204

 

 

$

52,663

 

VIACOMCBS INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)

 

 

 

Six Months Ended

 

 

June 30,

 

 

2021

 

2020

Operating Activities:

 

 

 

 

Net earnings (ViacomCBS and noncontrolling interests)

 

$

1,972

 

 

$

1,245

 

Less: Net earnings from discontinued operations, net of tax

 

53

 

 

43

 

Net earnings from continuing operations

 

1,919

 

 

1,202

 

Adjustments to reconcile net earnings from continuing operations to net cash flow provided by operating activities:

 

 

 

 

Depreciation and amortization

 

194

 

 

234

 

Deferred tax (benefit) provision

 

(110

)

 

227

 

Stock-based compensation

 

101

 

 

143

 

Net gain on sales

 

(116

)

 

 

Gains from investments

 

(52

)

 

(32

)

Loss on extinguishment of debt

 

128

 

 

103

 

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

 

62

 

 

22

 

Change in assets and liabilities

 

(424

)

 

(741

)

Net cash flow provided by operating activities from continuing operations

 

1,702

 

 

1,158

 

Net cash flow provided by (used for) operating activities from discontinued operations

 

89

 

 

(7

)

Net cash flow provided by operating activities

 

1,791

 

 

1,151

 

Investing Activities:

 

 

 

 

Investments

 

(114

)

 

(60

)

Capital expenditures

 

(138

)

 

(131

)

Acquisitions, net of cash acquired

 

 

 

(141

)

Proceeds from dispositions

 

408

 

 

146

 

Other investing activities

 

(25

)

 

 

Net cash flow provided by (used for) investing activities from continuing operations

 

131

 

 

(186

)

Net cash flow used for investing activities from discontinued operations

 

(2

)

 

(1

)

Net cash flow provided by (used for) investing activities

 

129

 

 

(187

)

Financing Activities:

 

 

 

 

Repayments of short-term debt borrowings, net

 

 

 

(698

)

Proceeds from issuance of long-term debt

 

 

 

4,370

 

Repayment of long-term debt

 

(2,200

)

 

(2,535

)

Dividends paid on common stock

 

(302

)

 

(301

)

Proceeds from issuance of preferred stock

 

983

 

 

 

Proceeds from issuance of common stock

 

1,672

 

 

 

Purchase of Company common stock

 

 

 

(58

)

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

 

(49

)

 

(59

)

Proceeds from exercise of stock options

 

408

 

 

 

Other financing activities

 

(161

)

 

(70

)

Net cash flow provided by financing activities

 

351

 

 

649

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(8

)

 

(17

)

Net increase in cash, cash equivalents and restricted cash

 

2,263

 

 

1,596

 

Cash, cash equivalents and restricted cash at beginning of period (includes $135 (2021) and $202 (2020) of restricted cash)

 

3,119

 

 

834

 

Cash, cash equivalents and restricted cash at end of period (includes $7 (2021) and $142 (2020) of restricted cash)

 

$

5,382

 

 

$

2,430

 

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Unaudited; in millions, except per share amounts)

Results for the three and six months ended June 30, 2021 and 2020 included certain items identified as affecting comparability. Adjusted operating income before depreciation and amortization (“Adjusted OIBDA”), adjusted earnings from continuing operations before income taxes, adjusted provision for income taxes, adjusted net earnings from continuing operations attributable to ViacomCBS, and adjusted diluted EPS from continuing operations (together, the “adjusted measures”) exclude the impact of these items and are measures of performance not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We use these measures to, among other things, evaluate our operating performance. These measures are among the primary measures used by management for planning and forecasting of future periods, and they are important indicators of our operational strength and business performance. In addition, we use Adjusted OIBDA to, among other things, value prospective acquisitions. We believe these measures are relevant and useful for investors because they allow investors to view performance in a manner similar to the method used by our management; provide a clearer perspective on our underlying performance; and make it easier for investors, analysts and peers to compare our operating performance to other companies in our industry and to compare our year-over-year results.

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, earnings from continuing operations before income taxes, provision/benefit for income taxes, net earnings from continuing operations attributable to ViacomCBS or diluted EPS from continuing operations, as applicable, as indicators of operating performance. These measures, as we calculate them, may not be comparable to similarly titled measures employed by other companies.

The following tables reconcile the adjusted measures to their most directly comparable financial measures in accordance with GAAP.

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2021

 

2020

 

2021

 

2020

Operating income (GAAP)

 

$

1,226

 

 

$

1,251

 

 

$

2,754

 

 

$

2,153

 

Depreciation and amortization (a)

 

95

 

 

122

 

 

194

 

 

234

 

Restructuring and other corporate matters (b)

 

35

 

 

158

 

 

35

 

 

389

 

Programming charges (b)

 

 

 

121

 

 

 

 

121

 

Net gain on sales (b)

 

(116

)

 

 

 

(116

)

 

 

Adjusted OIBDA (Non-GAAP)

 

$

1,240

 

 

$

1,652

 

 

$

2,867

 

 

$

2,897

 

(a)

The three and six months ended June 30, 2020 include an impairment charge for FCC licenses of $25 million and the six months ended June 30, 2020 also includes accelerated depreciation of $12 million for technology that was abandoned in connection with synergy plans related to the merger of Viacom Inc. with and into CBS Corporation (the “Merger”).

(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)

 

 

 

Three Months Ended June 30, 2021

 

 

Earnings from Continuing Operations Before Income Taxes

 

(Provision) Benefit for Income Taxes

 

Net Earnings from Continuing Operations Attributable to ViacomCBS

 

Diluted EPS from Continuing Operations

Reported (GAAP)

 

$

1,018

 

 

$

34

 

 

$

995

 

 

$

1.50

 

Items affecting comparability:

 

 

 

 

 

 

 

 

Restructuring and other corporate matters (a)

 

 

35

 

 

 

(8

)

 

 

27

 

 

 

.04

 

Net gain on sales (b)

 

 

(116

)

 

 

27

 

 

 

(89

)

 

 

(.13

)

Net gains from investments (c)

 

 

(32

)

 

 

7

 

 

 

(25

)

 

 

(.04

)

Discrete tax items (d)

 

 

 

 

 

(268

)

 

 

(268

)

 

 

(.40

)

Adjusted (Non-GAAP)

 

$

905

 

 

$

(208

)

 

$

640

 

 

$

.97

 

(a)

Reflects the impairment of lease assets in connection with cost transformation initiatives related to the Merger.

(b)

Primarily reflects a gain on the sale of a noncore trademark licensing operation.

(c)

Reflects a gain of $37 million on the sale of an investment, partially offset by a decrease in the fair value of a marketable security of $5 million.

(d)

Primarily reflects a benefit of $260 million to remeasure our UK net deferred income tax asset as a result of the enactment during the quarter of an increase in the UK corporate income tax rate from 19% to 25% beginning April 1, 2023, as well as a net tax benefit in connection with the settlement of income tax audits.

 

 

Three Months Ended June 30, 2020

 

 

Earnings from Continuing Operations Before Income Taxes

 

Provision for Income Taxes

 

Net Earnings from Continuing Operations Attributable to ViacomCBS

 

Diluted EPS from Continuing Operations

Reported (GAAP)

 

$

902

 

 

$

(192

)

 

$

453

 

 

$

.73

 

Items affecting comparability:

 

 

 

 

 

 

 

 

Restructuring and other corporate matters (a)

 

 

158

 

 

 

(34

)

 

 

124

 

 

 

.20

 

Impairment charge (b)

 

 

25

 

 

 

(6

)

 

 

19

 

 

 

.03

 

Programming charges (c)

 

 

121

 

 

 

(29

)

 

 

92

 

 

 

.15

 

Gains from investments (d)

 

 

(32

)

 

 

8

 

 

 

(24

)

 

 

(.03

)

Loss on extinguishment of debt

 

 

103

 

 

 

(24

)

 

 

79

 

 

 

.13

 

Discrete tax items

 

 

 

 

 

1

 

 

 

1

 

 

 

 

Adjusted (Non-GAAP)

 

$

1,277

 

 

$

(276

)

 

$

744

 

 

$

1.21

 

(a)

Reflects severance, exit costs and other costs related to the Merger and a charge to write down property and equipment to its fair value less costs to sell.

(b)

Reflects a charge to reduce the carrying values of FCC licenses in two markets to their fair values.

(c)

Primarily related to the abandonment of certain incomplete programs resulting from production shutdowns related to COVID-19.

(d)

Reflects an increase to the carrying value of an investment based on the market price of a similar investment.

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued)

(Unaudited; in millions, except per share amounts)

 

 

 

Six Months Ended June 30, 2021

 

 

Earnings from Continuing Operations Before Income Taxes

 

Provision for Income Taxes

 

Net Earnings from Continuing Operations Attributable to ViacomCBS

 

Diluted EPS from Continuing Operations

Reported (GAAP)

 

$

2,173

 

 

$

(192

)

 

$

1,894

 

 

$

2.93

 

Items affecting comparability:

 

 

 

 

 

 

 

 

Restructuring and other corporate matters (a)

 

 

35

 

 

 

(8

)

 

 

27

 

 

 

.04

 

Net gain on sales (b)

 

 

(116

)

 

 

27

 

 

 

(89

)

 

 

(.14

)

Gains from investments (c)

 

 

(52

)

 

 

12

 

 

 

(40

)

 

 

(.06

)

Loss on extinguishment of debt

 

 

128

 

 

 

(30

)

 

 

98

 

 

 

.15

 

Discrete tax items (d)

 

 

 

 

 

(289

)

 

 

(289

)

 

 

(.45

)

Adjusted (Non-GAAP)

 

$

2,168

 

 

$

(480

)

 

$

1,601

 

 

$

2.47

 

(a)

Reflects the impairment of lease assets in connection with cost transformation initiatives related to the Merger.

(b)

Primarily reflects a gain on the sale of a noncore trademark licensing operation.

(c)

Reflects a gain of $37 million on the sale of an investment and an increase in the fair value of marketable securities of $15 million.

(d)

Primarily reflects a benefit of $260 million to remeasure our UK net deferred income tax asset as a result of the enactment during the quarter of an increase in the UK corporate income tax rate from 19% to 25% beginning April 1, 2023, as well as a net tax benefit in connection with the settlement of income tax audits.

 

 

Six Months Ended June 30, 2020

 

 

Earnings from Continuing Operations Before Income Taxes

 

Provision for Income Taxes

 

Net Earnings from Continuing Operations Attributable to ViacomCBS

 

Diluted EPS from Continuing Operations

Reported (GAAP)

 

$

1,549

 

 

$

(326

)

 

$

954

 

 

$

1.55

 

Items affecting comparability:

 

 

 

 

 

 

 

 

Restructuring and other corporate matters (a)

 

 

389

 

 

 

(81

)

 

 

308

 

 

 

.49

 

Impairment charge (b)

 

 

25

 

 

 

(6

)

 

 

19

 

 

 

.03

 

Depreciation of abandoned technology (c)

 

 

12

 

 

 

(3

)

 

 

9

 

 

 

.01

 

Programming charges (d)

 

 

121

 

 

 

(29

)

 

 

92

 

 

 

.15

 

Gains from investments (e)

 

 

(32

)

 

 

8

 

 

 

(24

)

 

 

(.04

)

Loss on extinguishment of debt

 

 

103

 

 

 

(24

)

 

 

79

 

 

 

.13

 

Discrete tax items

 

 

 

 

 

(3

)

 

 

(3

)

 

 

 

Adjusted (Non-GAAP)

 

$

2,167

 

 

$

(464

)

 

$

1,434

 

 

$

2.32

 

(a)

Reflects severance, exit and other costs related to the Merger and a charge to write down property and equipment to its fair value less costs to sell.

(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)

Primarily related to the abandonment of certain incomplete programs resulting from production shutdowns related to COVID-19.

(e)

Reflects an increase to the carrying value of an investment based on the market price of a similar investment.

 

PRESS Justin Dini Executive Vice President, Corporate Communications (212) 846-2724 justin.dini@viacomcbs.com

Peter Collins Vice President, Corporate Communications (917) 826-4182 peter.collins@viacomcbs.com

Justin Blaber Senior Director, Corporate Communications (646) 823-6616 justin.blaber@viacomcbs.com

Pranita Sookai Director, Corporate Communications (718) 316-2182 pranita.sookai@viacomcbs.com

INVESTORS Anthony DiClemente Executive Vice President, Investor Relations (917) 796-4647 anthony.diclemente@viacomcbs.com

Jaime Morris Vice President, Investor Relations (646) 824-5450 jaime.morris@viacomcbs.com

Robert Amparo Manager, Investor Relations (347) 223-1682 robert.amparo@viacomcbs.com

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