New York: CBS Corporation (NYSE: CBS.A and CBS) has reported results for the third quarter ended September 30, 2009.
Revenues for the third quarter of 2009 totaled $3.35 billion compared to $3.38 billion for the same prior-year quarter due to lower advertising sales largely offset by higher syndication sales.
Operating income before depreciation and amortization (“OIBDA”) for the third quarter of 2009 was $565.6 million compared with a loss of $13.48 billion for last year’s third quarter. Operating income was $418.2 million for the third quarter of 2009 versus an operating loss of $13.62 billion for the same quarter last year.
Results for the third quarter of 2009 included a pre-tax non-cash impairment charge of $31.7 million ($23.1 million, net of tax) and results for 2008 included pre-tax non-cash impairment charges of $14.12 billion ($12.69 billion, net of tax). Before impairment charges, third quarter 2009 OIBDA was $597.3 million and operating income was $449.9 million compared with OIBDA of $638.8 million and operating income of $499.1 million for the third quarter of 2008.
Net earnings for the third quarter of 2009 were $207.6 million versus a net loss of $12.46 billion for the same quarter last year and diluted earnings per share were $.30 in 2009 compared to a loss of $18.58 per diluted share in 2008. Before impairment charges, adjusted net earnings for the third quarter of 2008 were $265.9 million and adjusted diluted earnings per share were $.39.
“Through this extraordinary time, Leslie and his team have managed CBS not simply to survive but to truly thrive,” said Sumner Redstone, Executive Chairman, CBS Corporation. “The strong performance of the CBS content businesses continues to build audiences, as well as our value proposition for advertisers. At the same time we’ve further solidified our financial position. I feel very good about what the future holds for CBS, especially given the improving economic outlook.”
“The operating environment for our businesses continues to improve and we are finishing the year with strong momentum,” said Leslie Moonves, President and Chief Executive Officer, CBS Corporation. “So far this year, each quarter has been better than the one before, with the third quarter showing significant improvement over the second, just as we expected. Going forward, we have many reasons for optimism as we look to 2010: In the new fall season, we are not only again the #1 television network, we have also grown our audience year-over-year. Our premium cable business continues to enhance its profile and once again added subscribers during the quarter. We’ve sold five series into domestic syndication this year, and global demand for our programming continues to grow. And on the local front, pacing continues rising steadily for TV, radio and outdoor, and we expect that with our new streamlined cost structure, margins will improve significantly going forward as well.”
Moonves continued: “Over the long term, we continue to believe that great content is the best driver of growth in this industry, which is why we’ve been so focused on building our content businesses across the Company. To highlight this strategy, we are realigning our business segments beginning in the fourth quarter. Our aim is to offer greater transparency so others can continue to view CBS the way we do – as a collection of leading content businesses in all the right areas of distribution – and be better able to gauge our progress against our long-term goals going forward.”
Results for the third quarter of 2009 included three discrete items: the pre-tax non-cash impairment charge of $31.7 million ($23.1 million, net of tax), which was related to the disposition of radio stations, offset by a settlement of $28.0 million ($16.8 million, net of tax) related to the favorable resolution of certain disputes regarding a previously disposed business and a tax benefit of $41.8 million resulting from the settlement of federal and state income tax audits. Together, these items contributed $.05 to diluted earnings per share for the third quarter of 2009.
Free cash flow for the third quarter of 2009 was a net cash outflow of $23.6 million versus a net cash outflow of $38.1 million for the third quarter of 2008.
Revenues were $9.52 billion for the first nine months of 2009 versus $10.42 billion for the same prior-year period reflecting lower advertising sales partially offset by higher affiliate revenues.
OIBDA for the first nine months of 2009 was $1.20 billion versus a loss of $12.08 billion for the same prior-year period, and operating income was $767.9 million versus an operating loss of $12.46 billion for the same prior-year period. Before impairment charges, OIBDA was $1.23 billion and operating income was $799.6 million for the first nine months of 2009 compared with OIBDA of $2.04 billion and operating income of $1.66 billion for the same prior-year period.
Net earnings were $167.7 million, or $.25 per diluted share, for the first nine months of 2009 versus a net loss of $11.81 billion, or a loss of $17.64 per diluted share, for the same prior-year period. Before impairment charges and gain on dispositions, adjusted net earnings for the first nine months of 2008 were $840.3 million and adjusted diluted earnings per share were $1.25.
Free cash flow was $532.4 million for the first nine months of 2009 versus $1.36 billion for the same prior-year period.