Press Release

VIACOMCBS REPORTS Q4 AND FULL YEAR 2021 EARNINGS RESULTS

February 15, 2022 at 4:01 PM EST

NEW YORK, Feb. 15, 2022 /PRNewswire/ --

  • Total Company Revenue Increased 16% Year-Over-Year in Q4, Reflecting Growth Across All Revenue Types
  • Quarterly Global Streaming Revenue Grew 48% Year-Over-Year to $1.3 Billion, Driven by Strength in Subscription and Advertising
    • Added a Record 9.4M Global Streaming Subscribers, Overwhelmingly Led By Paramount+, to Reach Over 56M Subscribers in the Quarter, and Achieved 84% Year-Over-Year Growth in Streaming Subscription Revenue
    • Fueled By a Diverse Global Content Offering, Subscriber Acquisition and Consumption on Paramount+ Accelerated - Driven By Original Scripted Dramas 1883 and Mayor of Kingstown; Family Friendly Films Such As Clifford The Big Red Dog; and Live Sports With The NFL ON CBS
    • Added 10M Pluto TV Global Monthly Active Users (MAUs) to Reach Over 64M and Grew Revenue by 45% Year-Over-Year
  • Strengthened Financial Position by Generating $2.3B of Net Proceeds From Non-Core Asset Dispositions
  • The Company is Hosting Virtual Investor Event Today, Detailing the Momentum of Paramount+ and More

STATEMENT FROM BOB BAKISH PRESIDENT & CEO

"In the fourth quarter you saw the power of strategy and strength of execution across the company. Our success was evident across all lines of business, and spotlighted by streaming, where we achieved our best quarter ever in streaming subscription growth - more than doubling our subscriber additions from last quarter with a record 9.4M additions, expanding our total global streaming subscribers to over 56M. And, to top it off, we saw meaningful acceleration in our global Pluto TV MAUs, to reach over 64M and generate over $1 billion in revenue in the year. This sets us up well for 2022, where I'm tremendously excited to continue to build on this powerful momentum - investing in global content, distribution, and market expansion - to further drive scale."

Q42021 RESULTS*

                                            
                                             

$ IN MILLIONS, EXCEPT PER SHARE AMOUNTS

                        
   

Three Months Ended December 31

  

Twelve Months Ended December 31

GAAP

  

2021

  

2020

  

B/(W)%

  

2021

  

2020

  

B/(W)%

Revenue

  

$

8,000

    

$

6,874

    

16

%

  

$

28,586

    

$

25,285

    

13

%

▪Advertising**

  

2,634

    

2,600

    

1

%

  

9,267

    

8,333

    

11

%

▪Affiliate**

  

2,110

    

2,067

    

2

%

  

8,394

    

8,023

    

5

%

▪Streaming

  

1,315

    

888

    

48

%

  

4,193

    

2,561

    

64

%

▪Theatrical

  

39

    

4

    

n/m

  

241

    

180

    

34

%

▪Licensing and other

  

1,902

    

1,315

    

45

%

  

6,491

    

6,188

    

5

%

Operating income

  

$

2,664

    

$

1,083

    

146

%

  

$

6,297

    

$

4,139

    

52

%

Diluted EPS from continuing operations attributable to ViacomCBS

  

$

3.05

    

$

1.26

    

142

%

  

$

6.69

    

$

3.73

    

79

%
                         

Non-GAAP†

                        

Adjusted OIBDA

  

$

557

    

$

1,183

    

(53)

%

  

$

4,444

    

$

5,132

    

(13)

%

Adjusted diluted EPS from continuing operations attributable to ViacomCBS

  

$

0.26

    

$

1.04

    

(75)

%

  

$

3.48

    

$

4.20

    

(17)

%

 

† 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. 

**Excludes streaming revenue.

   n/m = not meaningful

OVERVIEW OF Q4 REVENUE

REVENUE BY TYPE

  • Advertising revenue grew 1% year-over-year, reflecting improved pricing, partially offset by lower political advertising and lower linear impressions.
  • Affiliate revenue increased 2% year-over-year, reflecting higher reverse compensation, expanded distribution and rate increases, partially offset by subscriber declines.
  • Streaming revenue rose 48% year-over-year:
    • Streaming subscription revenue grew 84% year-over-year, reflecting strong subscriber growth from the company's streaming subscription services.
    • Streaming advertising revenue grew 26% year-over-year, driven by growth in advertising on Pluto TV and Paramount+.
  • Theatrical revenue reflects the fourth quarter release of Clifford The Big Red Dog, and the third quarter release of PAW Patrol: The Movie, while the prior-year period was impacted by the closure or reduced capacity of movie theaters in response to Covid.
  • Licensing and other revenue increased 45% year-over-year, reflecting a higher volume of licensing, including from the comparison against the impact in 2020 from Covid-related production shutdowns.

 

$ IN MILLIONS

Three Months Ended December 31

  

Twelve Months Ended December 31
 

2021

  

2020

  

       $ B/(W) %

  

2021

  

2020

  

       $ B/(W) %

Advertising*

$

2,634

    

$

2,600

    

$

34

    

1

%

  

$

9,267

    

$

8,333

    

$

934

    

11

%

Affiliate*

2,110

    

2,067

    

43

    

2

    

8,394

    

8,023

    

371

    

5

  

Streaming

1,315

    

888

    

427

    

48

    

4,193

    

2,561

    

1,632

    

64

  

▪Advertising

684

    

545

    

139

    

26

    

2,145

    

1,418

    

727

    

51

  

▪Subscription

631

    

343

    

288

    

84

    

2,048

    

1,143

    

905

    

79

  

Theatrical

39

    

4

    

35

    

n/m

  

241

    

180

    

61

    

34

  

Licensing and other

1,902

    

1,315

    

587

    

45

    

6,491

    

6,188

    

303

    

5

  

Total Revenue

$

8,000

    

$

6,874

    

$

1,126

    

16

%

  

$

28,586

    

$

25,285

    

$

3,301

    

13

%
 

*Excludes streaming revenue     n/m = not meaningful

 

GLOBAL STREAMING HIGHLIGHTS

  • Global streaming subscribers rose to more than 56M, adding a record breaking 9.4M subscribers in the quarter.
    • Subscriber additions in the quarter were overwhelmingly led by Paramount+, with 7.3M additions, bringing Paramount+ total subscribers to 32.8M in the quarter.
      • Domestically, Paramount+ saw record subscriber sign-ups and engagement from a variety of content, including Clifford The Big Red Dog, Mayor of Kingstown, 1883, South Park: Post Covid, live events and the NFL.
      • Internationally, Paramount+ had great momentum, reflecting strong global and local content, including local sports such as A-League in Australia.
    • SHOWTIME OTT also had a record quarter with sign-ups and engagement, benefiting from hit originals, including Dexter: New Blood and Yellowjackets.
    • SkyShowtime, the new streaming joint venture with ViacomCBS and Comcast, plans to launch in more than 20 European markets encompassing 90 million homes starting later this year.
  • Pluto TV revenue grew 45% year-over-year to $362M, as additions of 10M grew total MAUs to over 64M in the quarter.
    • During the quarter, Pluto TV launched in Italy, and announced a strategic partnership with Nordic Entertainment Group to bring Pluto TV to Sweden, Denmark, and Norway in 2022.

REPORTING SEGMENTS

TV ENTERTAINMENT

  • In Q4, CBS had the top scripted broadcast drama with NCIS, the top comedy with Young Sheldon, and the top three new programs with FBI: International, NCIS: Hawai'i and Ghosts. Also, THE NFL ON CBS averaged over 18 million viewers, more than any prime-time television sports, entertainment, or news series on any network this season.
  • Revenue grew 18% year-over-year, reflecting growth across all revenue streams.
    • Advertising revenue increased 2% year-over-year, primarily reflecting improved pricing and an increase in original programming, partially offset by lower political advertising.
    • Affiliate revenue grew 5% year-over-year, driven by growth in reverse compensation.
    • Streaming revenue rose 64% year-over-year, reflecting subscriber and advertising growth at Paramount+.
    • Licensing and other revenue increased 51% year-over-year, reflecting a higher volume of licensing, including from the comparison against the impact in 2020 from Covid-related production shutdowns.
  • Adjusted OIBDA decreased 73% year-over-year, reflecting the company's increased investment in Paramount+.

 

$ IN MILLIONS

Three Months Ended December 31

  

Twelve Months Ended December 31
 

2021

  

2020

  

       $ B/(W) %

  

2021

  

2020

  

       $ B/(W) %

Revenue

$

3,687

    

$

3,112

    

$

575

    

18

%

  

$

12,931

    

$

10,700

    

$

2,231

    

21

%

▪Advertising*

1,539

    

1,505

    

34

    

2

    

5,377

    

4,639

    

738

    

16

  

▪Affiliate*

721

    

688

    

33

    

5

    

2,803

    

2,614

    

189

    

7

  

▪Streaming

489

    

298

    

191

    

64

    

1,551

    

911

    

640

    

70

  

▪Licensing and other

938

    

621

    

317

    

51

    

3,200

    

2,536

    

664

    

26

  

Expenses

3,540

    

2,563

    

(977)

    

(38)

    

11,848

    

8,843

    

(3,005)

    

(34)

  

Adjusted OIBDA

$

147

    

$

549

    

$

(402)

    

(73)

%

  

$

1083

    

$

1,857

    

$

(774)

    

(42)

%
                                                           

*Excludes streaming revenue

                                                        

CABLE NETWORKS

  • In Q4, ViacomCBS maintained leadership as the #1 portfolio in share of viewing among key demos (P2+, P12-17, P18-34, P18-49, P25-54), and owned the #1 cable series with Yellowstone and the #1 cable series among K2-11 with Paw Patrol.
  • Revenue increased 17% year-over-year, reflecting growth across all revenue streams.
    • Advertising revenue increased slightly year-over-year, as the benefits from improved pricing and the acquisition of Chilevisión were largely offset by lower linear impressions.
    • Affiliate revenue grew 1% year-over-year, reflecting higher revenues from expanded vMVPD distribution, rate increases, and pay-per-view boxing events, partially offset by subscriber declines.
    • Streaming revenue increased 40% year-over-year, largely fueled by advertising revenue growth from Pluto TV, as well as growth in subscribers for subscription streaming services.
    • Licensing and other revenue increased 87% year-over-year, primarily driven by a higher volume of licensing, led by the licensing of programming to Paramount+.
  • Adjusted OIBDA decreased 34% year-over-year, reflecting an increased investment in international streaming services and an increase in original programming.

 

$ IN MILLIONS

Three Months Ended December 31

  

Twelve Months Ended December 31
 

2021

  

2020

  

       $ B/(W) %

  

2021

  

2020

  

       $ B/(W) %

Revenue

$

4,008

    

$

3,438

    

$

570

    

17

%

  

$

14,200

    

$

12,589

    

$

1,611

    

13

%

▪Advertising*

1101

    

1099

    

2

    

0

    

3,907

    

3,721

    

186

    

5

  

▪Affiliate*

1,389

    

1,379

    

10

    

1

    

5,591

    

5,409

    

182

    

3

  

▪Streaming

826

    

590

    

236

    

40

    

2,642

    

1,650

    

992

    

60

  

▪Licensing and other

692

    

370

    

322

    

87

    

2,060

    

1,809

    

251

    

14

  

Expenses

3,476

    

2,637

    

(839)

    

(32)

    

10,453

    

8,843

    

(1,610)

    

(18)

  

Adjusted OIBDA

$

532

    

$

801

    

$

(269)

    

(34)

%

  

$

3,747

    

$

3,746

    

$

1

    

0

%
                                                           

*Excludes streaming revenue

                                                        

FILMED ENTERTAINMENT

  • Revenue rose 61% year-over-year, driven by higher theatrical and licensing revenues.
    • Theatrical includes revenues from the fourth quarter release of Clifford The Big Red Dog, and the third quarter release of PAW Patrol: The Movie, while the prior-year period was impacted by the closure or reduced capacity of movie theaters in response to Covid.
    • Licensing and other revenue increased 54% year-over-year driven by a higher volume of licensing, including to our owned streaming services and from the comparison against the impact in 2020 from Covid-related production shutdowns.
  • Adjusted OIBDA increased $36 million year-over-year, reflecting higher profits from the licensing of our content, partially offset by higher distribution costs from the timing of theatrical releases.

 

$ IN MILLIONS

Three Months Ended December 31

  

Twelve Months Ended December 31
 

2021

  

2020

  

       $ B/(W) %

  

2021

  

2020

  

       $ B/(W) %

Revenue

$

826

    

$

514

    

$

312

    

61

%

  

$

3,070

    

$

2,562

    

$

508

    

20

%

▪Theatrical

39

    

4

    

35

    

n/m

  

241

    

180

    

61

    

34

  

▪Licensing and other

787

    

510

    

277

    

54

    

2,829

    

2,382

    

447

    

19

  

Expenses

772

    

496

    

(276)

    

(56)

    

2,702

    

2,347

    

(355)

    

(15)

  

Adjusted OIBDA

$

54

    

$

18

    

$

36

    

200

%

  

$

368

    

$

215

    

$

153

    

71

%
                                                           

n/m = not meaningful

                                                          

BALANCE SHEET & LIQUIDITY

  • As of December 31, 2021, the company had $6.3B of cash on its balance sheet and a committed $3.5B revolving credit facility that remains undrawn.
  • Strengthened financial position by generating $2.3B of net proceeds from the sale of the CBS Studio Center and the #fff Rock office building.

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 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: risks related to our streaming initiatives; changes in consumer behavior, as well as evolving technologies, distribution platforms and packaging; the impact on our advertising revenues as a result of changes in consumer viewership, advertising market conditions and deficiencies in audience measurement; our ability to maintain attractive brands and our reputation, and to offer popular programming and other content; increased costs for content and other rights; competition for talent, content, audiences, subscribers, 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; risks related to our ongoing investments in new businesses, products, services and technologies, through acquisitions and other strategic initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; content infringement; the impact of Covid-19 and other pandemics and measures taken in response thereto; domestic and global political, economic and regulatory factors affecting our businesses generally; liabilities related to discontinued operations and former businesses; the loss of existing or inability to hire new key employees or secure creative talent; 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

  

Twelve Months Ended
 

December 31,

  

December 31,
 

2021

  

2020

  

2021

  

2020

Revenues

$      8,000

  

$      6,874

  

$    28,586

  

$    25,285

Costs and expenses:

              

Operating

5,452

  

4,213

  

17,744

  

14,992

Selling, general and administrative

1,991

  

1,516

  

6,398

  

5,320

Depreciation and amortization

101

  

99

  

390

  

430

Restructuring and other corporate matters

19

  

177

  

100

  

618

Total costs and expenses

7,563

  

6,005

  

24,632

  

21,360

Net gain on sales

2,227

  

214

  

2,343

  

214

Operating income

2,664

  

1,083

  

6,297

  

4,139

Interest expense

(241)

  

(268)

  

(986)

  

(1,031)

Interest income

16

  

21

  

53

  

60

Net gains from investments

—

  

174

  

47

  

206

Loss on extinguishment of debt

—

  

—

  

(128)

  

(126)

Other items, net

(22)

  

(27)

  

(77)

  

(101)

Earnings from continuing operations before income taxes and equity

   in earnings (loss) of investee companies

2,417

  

983

  

5,206

  

3,147

Provision for income taxes

(334)

  

(183)

  

(646)

  

(535)

Equity in earnings (loss) of investee companies, net of tax

(11)

  

2

  

(91)

  

(28)

Net earnings from continuing operations

2,072

  

802

  

4,469

  

2,584

Net earnings from discontinued operations, net of tax

36

  

27

  

162

  

117

Net earnings (ViacomCBS and noncontrolling interests)

2,108

  

829

  

4,631

  

2,701

Net earnings attributable to noncontrolling interests

(50)

  

(19)

  

(88)

  

(279)

Net earnings attributable to ViacomCBS

$      2,058

  

$         810

  

$      4,543

  

$      2,422
               

Amounts attributable to ViacomCBS:

              

Net earnings from continuing operations

$      2,022

  

$         783

  

$      4,381

  

$      2,305

Net earnings from discontinued operations, net of tax

36

  

27

  

162

  

117

Net earnings attributable to ViacomCBS

$      2,058

  

$         810

  

$      4,543

  

$      2,422
               

Basic net earnings per common share attributable to ViacomCBS:

              

Net earnings from continuing operations

$        3.10

  

$        1.27

  

$        6.77

  

$        3.74

Net earnings from discontinued operations

$          .06

  

$          .04

  

$          .25

  

$          .19

Net earnings

$        3.16

  

$        1.31

  

$        7.02

  

$        3.93
               

Diluted net earnings per common share attributable to ViacomCBS:

             

Net earnings from continuing operations

$        3.05

  

$        1.26

  

$        6.69

  

$        3.73

Net earnings from discontinued operations

$          .05

  

$          .04

  

$          .25

  

$          .19

Net earnings

$        3.11

  

$        1.31

  

$        6.94

  

$        3.92
               

Weighted average number of common shares outstanding:

              

Basic

647

  

617

  

641

  

616

Diluted

662

  

620

  

655

  

618

 

 

VIACOMCBS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except per share amounts)
 
   

At December 31,

  
   

2021

  

2020

  

ASSETS

          

Current Assets:

          

Cash and cash equivalents

  

$              6,267

  

$         2,984

  

Receivables, net

  

6,984

  

7,017

  

Programming and other inventory

 

1,504

  

1,757

  

Prepaid expenses and other current assets

  

1,176

  

1,391

  

Current assets of discontinued operations

  

745

  

630

  

Total current assets

  

16,676

  

13,779

  

Property and equipment, net

  

1,736

  

1,994

  

Programming and other inventory

 

13,358

  

10,363

  

Goodwill

  

16,584

  

16,612

  

Intangible assets, net

  

2,772

  

2,826

  

Operating lease assets

  

1,630

  

1,602

  

Deferred income tax assets, net

  

1,206

  

993

  

Other assets

  

3,824

  

3,657

  

Assets held for sale

 

19

  

28

  

Assets of discontinued operations

  

815

  

809

  

Total Assets

  

$            58,620

  

$       52,663

  

LIABILITIES AND STOCKHOLDERS' EQUITY

          

Current Liabilities:

          

Accounts payable

  

$                 800

  

$            571

  

Accrued expenses

  

2,323

  

1,714

  

Participants' share and royalties payable

  

2,159

  

2,005

  

Accrued programming and production costs

  

1,342

  

1,141

  

Deferred revenues

  

1,091

  

978

  

Debt

  

11

  

16

  

Other current liabilities

  

1,182

  

1,391

  

Current liabilities of discontinued operations

  

571

  

480

  

Total current liabilities

  

9,479

  

8,296

  

Long-term debt

 

17,698

  

19,717

  

Participants' share and royalties payable

  

1,244

  

1,317

  

Pension and postretirement benefit obligations

 

1,946

  

2,098

  

Deferred income tax liabilities, net

 

1,063

  

778

  

Operating lease liabilities

  

1,598

  

1,583

  

Program rights obligations

  

404

  

243

  

Other liabilities

  

1,898

  

2,158

  

Liabilities of discontinued operations

 

213

  

220

  

Redeemable noncontrolling interest

  

107

  

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;

1,110 (2021) and 1,068 (2020) shares issued

  

1

  

1

  

Additional paid-in capital

  

32,918

  

29,785

  

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

  

(22,958)

  

(22,958)

  

Retained earnings

  

14,343

  

10,375

  

Accumulated other comprehensive loss

 

(1,902)

  

(1,832)

  

Total ViacomCBS stockholders' equity

  

22,402

  

15,371

  

Noncontrolling interests

  

568

  

685

  

Total Equity

  

22,970

  

16,056

  

Total Liabilities and Equity

  

$            58,620

  

$       52,663

  

 

 

VIACOMCBS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)
 
 

Year Ended December 31,
 

2021

  

2020

Operating Activities:

      

Net earnings (ViacomCBS and noncontrolling interests)

$           4,631

  

$           2,701

Less: Net earnings from discontinued operations, net of tax

162

  

117

Net earnings from continuing operations

4,469

  

2,584

Adjustments to reconcile net earnings from continuing operations to net cash flow provided

     by operating activities from continuing operations:

      

Depreciation and amortization

390

  

430

Television programming and feature film cost amortization

13,352

  

11,045

Deferred tax provision

90

  

122

Stock-based compensation

192

  

274

Net gain on sales

(2,343)

  

(214)

Net gains from investments

(47)

  

(206)

Loss on extinguishment of debt

128

  

126

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

96

  

34

Change in assets and liabilities

      

Decrease (increase) in receivables

179

  

(68)

Increase in inventory and related program and participation liabilities, net

(16,584)

  

(12,170)

Increase in accounts payable and other liabilities

760

  

188

Decrease in pension and postretirement benefit obligations

(61)

  

(20)

Increase in income taxes

265

  

2

Other, net

(51)

  

88

Net cash flow provided by operating activities from continuing operations

835

  

2,215

Net cash flow provided by operating activities from discontinued operations

118

  

79

Net cash flow provided by operating activities

953

  

2,294

Investing Activities:

      

Investments

(193)

  

(59)

Capital expenditures

(354)

  

(324)

Acquisitions, net of cash acquired

(54)

  

(147)

Proceeds from dispositions

3,028

  

593

Other investing activities

(25)

  

—

Net cash flow provided by investing activities from continuing operations

2,402

  

63

Net cash flow used for investing activities from discontinued operations

(7)

  

(7)

Net cash flow provided by investing activities

2,395

  

56

Financing Activities:

      

Repayments of short-term debt borrowings, net

—

  

(706)

Proceeds from issuance of senior notes

—

  

4,375

Repayment of long-term debt

(2,230)

  

(2,901)

Dividends paid on preferred stock

(30)

  

—

Dividends paid on common stock

(617)

  

(600)

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

(110)

  

(93)

Proceeds from exercise of stock options

408

  

5

Payments to noncontrolling interests

(235)

  

(59)

Other financing activities

7

  

(53)

Net cash flow used for financing activities

(152)

  

(90)

Effect of exchange rate changes on cash and cash equivalents

(48)

  

25

Net increase in cash, cash equivalents and restricted cash

3,148

  

2,285

Cash, cash equivalents and restricted cash at beginning of year

   (includes $135 (2021) and $202 (2020) of restricted cash)

3,119

  

834

Cash, cash equivalents and restricted cash at end of year

   (includes $135 (2020) of restricted cash)

$           6,267

  

$           3,119

 

 

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

Results for the three and twelve months ended December 31, 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 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

  

Twelve Months Ended
 

December 31,

  

December 31,
 

2021

  

2020

  

2021

  

2020

Operating income (GAAP)

$      2,664

  

$      1,083

  

$      6,297

  

$      4,139

Depreciation and amortization (a)

101

  

99

  

390

  

430

Restructuring and other corporate matters (b)

19

  

177

  

100

  

618

Programming charges (b)

—

  

38

  

—

  

159

Net gain on sales (b)

(2,227)

  

(214)

  

(2,343)

  

(214)

Adjusted OIBDA (Non-GAAP)

$         557

  

$      1,183

  

$      4,444

  

$      5,132
 

(a) The year ended December 31, 2020 includes an impairment charge for FCC licenses of $25 million and 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 December 31, 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)

  

$     2,417

      

$       (334)

      

$     2,022

      

$       3.05

  

Items affecting comparability:

                              

Restructuring and other corporate matters (a)

  

19

      

(5)

      

14

      

.02

  

Net gain on sales (b)

  

(2,227)

      

565

      

(1,662)

      

(2.51)

  

Discrete tax items (c)

  

—

      

(227)

      

(227)

      

(.34)

  

Impairment of equity-method investment,

    net of tax

  

—

      

—

      

34

      

.05

  

Impact of antidilution of Mandatory

   Convertible Preferred Stock (d)

  

—

      

—

      

—

      

(.01)

  

Adjusted (Non-GAAP)

  

$        209

      

$           (1)

      

$        181

      

$         .26

  
 

(a) Reflects severance costs associated with changes in management at certain of our businesses.

(b) Primarily reflects gains on the sales of CBS Studio Center and 51 West 52nd Street, an office tower that was formerly the headquarters of CBS  ("51 West 52nd Street").

(c) Principally reflects the recognition of a capital loss associated with a change in the tax entity classification of a foreign subsidiary.

(d) The weighted average number of common shares outstanding used in the calculation of reported diluted EPS from continuing operations were 662 million and in the calculation of adjusted diluted EPS from continuing operations were 650 million. These amounts differ because adjusted diluted EPS excludes the effect of the assumed conversion of our Mandatory Convertible Preferred Stock into shares of common stock since the impact would have been antidilutive. As a result, in the calculation of adjusted diluted EPS, the weighted average number of diluted shares outstanding does not include the assumed issuance of shares upon conversion of preferred stock, and preferred stock dividends recorded during the three months ended December 31, 2021 of $14 million are deducted from net earnings from continuing operations.

 

 

Three Months Ended December 31, 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)

  

$        983

      

$       (183)

      

$        783

      

$       1.26

  

Items affecting comparability:

                              

Restructuring and other corporate matters (a)

  

177

      

(40)

      

137

      

.22

  

Programming charges (b)

  

38

      

(10)

      

28

      

.05

  

Gain on sales (c)

  

(214)

      

31

      

(183)

      

(.30)

  

Net gain from investments (d)

  

(174)

      

42

      

(132)

      

(.21)

  

Discrete tax items

  

—

      

12

      

12

      

.02

  

Adjusted (Non-GAAP)

  

$        810

      

$       (148)

      

$        645

      

$       1.04

  
 

(a) Reflects severance, exit costs and other costs related to the Merger.

(b) Primarily related to the abandonment of certain incomplete programs resulting from production shutdowns related to the coronavirus pandemic (" COVID-19").

(c) Reflects a gain on the sale of CNET Media Group ("CMG").

(d) Primarily reflects an increase in the value of our investment in fuboTV, Inc. ("fuboTV"), which was sold in the fourth quarter of 2020.

 

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued)

(Unaudited; in millions, except per share amounts)
 
 

Twelve Months Ended December 31, 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)

  

$     5,206

      

$       (646)

      

$     4,381

      

$       6.69

  

Items affecting comparability:

                              

Restructuring and other corporate matters (a)

  

100

      

(25)

      

75

      

.11

  

Net gain on sales (b)

  

(2,343)

      

592

      

(1,751)

      

(2.67)

  

Gains from investments (c)

  

(47)

      

11

      

(36)

      

(.05)

  

Loss on extinguishment of debt

  

128

      

(30)

      

98

      

.15

  

Pension settlement charge (d)

  

10

      

(2)

      

8

      

.01

  

Discrete tax items (e)

  

—

      

(517)

      

(517)

      

(.79)

  

Impairment of equity-method investment,

    net of tax

  

—

      

—

      

34

      

.05

  

Impact of antidilution of Mandatory

   Convertible Preferred Stock (f)

  

—

      

—

      

—

      

(.02)

  

Adjusted (Non-GAAP)

  

$     3,054

      

$       (617)

      

$     2,292

      

3.48

  
 

(a) Reflects severance costs associated with changes in management at certain of our businesses and the impairment of lease assets in connection with cost transformation initiatives related to the Merger.

(b) Primarily reflects gains on the sales of CBS Studio Center, 51 West 52nd Street and a noncore trademark licensing operation.

(c) Primarily reflects a gain of $37 million on the sale of an investment and a gain of $9 million from an increase in the fair value of an investment that was sold during the third quarter of 2021.

(d) Reflects the accelerated recognition of a portion of the unamortized actuarial losses due to the volume of lump sum benefit payments in one of our pension plans.

(e) Primarily reflects a benefit of $260 million to remeasure our United Kingdom ("U.K.") net deferred income tax asset as a result of the enactment of an increase in the U.K. corporate income tax rate from 19% to 25% beginning April 1, 2023, a benefit of $229 million from the recognition of a capital loss associated with a change in the tax entity classification of a foreign subsidiary, as well as a net tax benefit in connection with the settlement of income tax audits.

(f) The weighted average number of common shares outstanding used in the calculation of reported diluted EPS from continuing operations were 655 million and in the calculation of adjusted diluted EPS from continuing operations were 646 million. These amounts differ because adjusted diluted EPS excludes the effect of the assumed conversion of our Mandatory Convertible Preferred Stock into shares of common stock since the impact would have been antidilutive. As a result, in the calculation of adjusted diluted EPS, the weighted average number of diluted shares outstanding does not include the assumed issuance of shares upon conversion of preferred stock, and preferred stock dividends recorded during the year ended December 31, 2021 of $44 million are deducted from net earnings from continuing operations.

 

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued)

(Unaudited; in millions, except per share amounts)
 
 

Twelve Months Ended December 31, 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)

  

$     3,147

      

$       (535)

      

$     2,305

      

$       3.73

  

Items affecting comparability:

                              

Restructuring and other corporate matters (a)

  

618

      

(133)

      

485

      

.79

  

Impairment charge (b)

  

25

      

(6)

      

19

      

.03

  

Depreciation of abandoned technology (c)

  

12

      

(3)

      

9

      

.01

  

Programming charges (d)

  

159

      

(39)

      

120

      

.20

  

Gain on sales (e)

  

(214)

      

31

      

(183)

      

(.30)

  

Net gains from investments (f)

  

(206)

      

50

      

(156)

      

(.25)

  

Loss on extinguishment of debt

  

126

      

(29)

      

97

      

.16

  

Discrete tax items (g)

  

—

      

(110)

      

(110)

      

(.18)

  

Impairment of equity-method investment,

    net of tax

  

—

      

—

      

9

      

.01

  

Adjusted (Non-GAAP)

  

$     3,667

      

$       (774)

      

$     2,595

      

$       4.20

  
 

(a) Reflects severance, exit costs and other costs related to the Merger and a charge to write down property and equipment that was classified as held for sale.

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

(c) Reflects accelerated depreciation for technology that was abandoned in connection with synergy plans related to the Merger.

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

(e) Reflects a gain on the sale of CMG.

(f) Primarily reflects an increase in the value of our investment in fuboTV, which was sold in the fourth quarter of 2020.

(g) Primarily reflects a benefit from the remeasurement of our U.K. net deferred income tax asset as a result of an increase in the U.K. corporate income tax rate from 17% to 19% enacted during the third quarter of 2020.

 

 

 

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SOURCE ViacomCBS Inc.

CONTACTS: 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; INVESTORS: Anthony DiClemente, Executive Vice President, Investor Relations, (917) 796-4647, anthony.diclemente@viacomcbs.com; Jaime Morris, Senior Vice President, Investor Relations, (646) 824-5450, jaime.morris@viacomcbs.com; Robert Amparo, Director, Investor Relations, (347) 223-1682, robert.amparo@viacomcbs.com