New York : CBS Corporation (NYSE: CBS.A; CBS) has reported results for the fourth quarter and full year ended December 31, 2009.
“Throughout the past year, Leslie and his team did all the right things to position CBS for a vibrant future, and the results we’re reporting today speak to our momentum,” said Sumner Redstone, Executive Chairman, CBS Corporation. “We’ve managed through the year with financial prudence, while at the same time continuing to invest in our top-quality content businesses and maintain our industry-leading position. I’m very excited about all that we can achieve going forward.”
“As we promised, each quarter in 2009 improved on the one before – culminating in our best performance of the year in the fourth quarter,” said Leslie Moonves, President and Chief Executive Officer, CBS Corporation. “The good news is, the rising revenue trends are continuing into 2010.”
Moonves continued: “We see a number of very positive signs at both our Content Group and our Local Group. The CBS Television Network is again #1 this season and up in every key demographic year-over-year, and we’ve added two new hits – both of which are wholly-owned by CBS. Cable Networks’ subscriber and profit growth continues, and traffic to CBS Interactive sites hit new records during the quarter. Meanwhile, both national and local advertising are improving substantially – with dramatic gains in scatter and sales pacing for the Network and our TV Stations in the first quarter. Local radio stations are pacing well above last year’s first quarter, and Outdoor has reached last year’s levels. And with growing retransmission and affiliate fees, we’ve established a substantial secondary revenue stream. At the same time, we continue to manage our cost structure to deliver better efficiencies in any economy, and have improved our liquidity position – all of which we believe will help us better capitalize on the ongoing economic recovery in 2010.”
Revenues for the fourth quarter of 2009 totaled $3.50 billion, down less than 1% versus $3.53 billion for the same prior-year quarter. Higher national advertising sales, growth in affiliate and subscription fees, and improvement in the local television marketplace, were offset by lower radio, outdoor and political advertising sales, and continued softness in the publishing retail market.
Adjusted operating income before depreciation and amortization (“OIBDA”) was $569.2 million for the fourth quarter of 2009, up 11% versus $513.1 million for last year’s fourth quarter, driven by higher affiliate and subscription fees, including retransmission revenues, combined with lower expenses as a result of cost-savings initiatives. Results for the fourth quarter also reflect lower restructuring charges, which were substantially offset by lower political advertising sales.
Adjusted operating income was $421.8 million for the fourth quarter of 2009, up 16% from $362.4 million for the same quarter last year.
Reported operating income was $243.5 million for the fourth quarter of 2009 versus $298.2 million for the same quarter last year.
Adjusted net earnings increased 23% to $171.1 million, or $.25 per diluted share, up 19%, for the fourth quarter of 2009 versus $139.3 million, or $.21 per diluted share, for the same quarter last year.
Reported net earnings were $58.8 million, or $.09 per diluted share, for the fourth quarter of 2009 versus $136.1 million, or $.20 per diluted share, for the same quarter last year.
Free cash flow for the fourth quarter of 2009 was $295.4 million versus $308.3 million for the fourth quarter of 2008, reflecting the timing of interest payments partially offset by lower discretionary contributions in 2009 to pre-fund the Company’s qualified pension plans.
Adjusted results for the fourth quarter exclude impairment charges and tax benefits resulting from the settlement of federal and state income tax audits. The Company recorded pre-tax non-cash impairment charges during the fourth quarter of 2009 to reduce the carrying value of FCC broadcast licenses in certain radio markets. During the fourth quarter of 2008, the Company recorded pre-tax non-cash impairment charges related to radio station divestitures. Reconciliations of all non-GAAP measures to reported quarterly results are included at the end of this earnings release.
Full year 2009 revenues were $13.01 billion, down 7% versus $13.95 billion for the prior year, reflecting lower local non-political advertising sales during the first three quarters of 2009 and lower political advertising for the year, partially offset by higher affiliate and subscription fees.
Adjusted OIBDA for 2009 was $1.80 billion, down 29% versus $2.55 billion for 2008, reflecting lower local advertising sales, including politicals, partially offset by higher affiliate and subscription fees, a reduction in expenses resulting from cost-savings initiatives and lower restructuring charges in 2009.
Adjusted operating income for 2009 was $1.22 billion, down 40% versus $2.02 billion for 2008.
Reported operating income was $1.01 billion for 2009 versus an operating loss of $12.16 billion for 2008.
Adjusted net earnings were $358.8 million, or $.53 per diluted share, for 2009 versus $984.3 million, or $1.46 per diluted share, for 2008.
Reported net earnings were $226.5 million, or $.33 per diluted share, for 2009 versus a net loss of $11.67 billion, or a loss of $17.43 per diluted share, for 2008.
Free cash flow was $827.8 million for 2009 versus $1.67 billion for 2008, reflecting lower adjusted OIBDA and higher investment in programming and content, partially offset by lower cash taxes and capital expenditures.
Adjusted results for the full year exclude impairment charges; tax benefits resulting from the settlement of federal and state income tax audits; and reductions of deferred tax assets associated with stock-based compensation in both 2009 and 2008; and a gain on the sale of the Company’s investment in Sundance Channel in 2008. During 2009, the Company recorded pre-tax non-cash impairment charges to reduce the carrying value of radio FCC broadcast licenses and goodwill. During 2008, the Company recorded pre-tax non-cash impairment charges to reduce the carrying value of goodwill and intangible assets. Reconciliations of all non-GAAP measures to reported annual results are included at the end of this earnings release.