Net Earnings Up 14% to $244 Million
Diluted EPS Up 29% to $.36
Free Cash Flow Up 25% to $938 Million
Adjusted OIBDA and Operating Income Up 10% and 11%
Company Raises Quarterly Dividend by 8% to $.27 Per Share
NEW YORK, April 29 /PRNewswire-FirstCall/ -- CBS Corporation (NYSE:
CBS.A and CBS) today reported results for the first quarter ended March 31,
2008.
"The solid financial performance of CBS Corporation, in spite of a
challenging economic environment, demonstrates the enduring strength of its
brands and world-class assets," said Sumner Redstone, Executive Chairman,
CBS Corporation. "Leslie and his team are consistently delivering strong
results while positioning CBS for future growth and returning significant
cash to shareholders."
"I'm very pleased with the operating performance of the Company, which
produced terrific first quarter free cash flow of $938 million and diluted
EPS of $.36," said Leslie Moonves, President and Chief Executive Officer,
CBS Corporation. "As a result of our continued confidence in our
businesses, we are increasing our quarterly dividend by 8% to $.27 per
share, paying among the highest dividends in the industry. Driving the
Company's performance this quarter was significant profit improvement at
Television, led by a new distribution arrangement for our valuable CSI
franchise in international markets. We also continued to drive digital
operations forward, nearly doubling our online revenues for March Madness
on Demand. At Radio, we are seeing positive signs early in the second
quarter with sales pacing up over last year in some of our larger markets.
And our recent acquisition of the largest outdoor company in South America
adds to CBS Outdoor's portfolio of fast-growing attractive billboard
markets."
First Quarter 2008 Results
Total revenues of $3.7 billion for the first quarter of 2008 were flat
with the same quarter in 2007, when CBS broadcast Super Bowl XLI and the
Semifinals of the NCAA Men's Basketball Tournament. First quarter revenues
in 2008 benefited from the impact of a new international self-distribution
arrangement for the CSI franchise, which was previously distributed by a
third party.
On an adjusted basis, operating income before depreciation and
amortization ("OIBDA") increased 10% to $720.0 million and operating income
increased 11% to $602.2 million principally reflecting higher profits from
syndication sales, which included the impact of the new international self-
distribution arrangement for the CSI franchise, partially offset by lower
advertising sales at Radio. Adjusted results exclude stock-based
compensation expense and $44.9 million of restructuring charges incurred at
Television and Radio during the first quarter of 2008. Reported OIBDA of
$642.0 million and operating income of $524.2 million for the first quarter
of 2008 both increased 1% from the same prior-year period. Stock-based
compensation expense for the first quarter of 2008 was $33.1 million versus
$21.0 million for the same quarter last year.
On an adjusted basis, net earnings of $291.4 million for the first
quarter of 2008 increased 9% and diluted earnings per share of $.43
increased 23% due to lower shares outstanding resulting from 2007 share
repurchases. Adjusted results exclude stock-based compensation expense,
restructuring charges and the 2007 impact of station divestitures. Reported
net earnings increased 14% to $244.3 million for the first quarter of 2008
from $213.5 million for the same quarter last year, which included $43.5
million of income tax expense related to radio station divestitures, and
diluted earnings per share increased 29% to $.36 in 2008 from $.28 for the
same prior-year period.
Free cash flow for the first quarter of 2008 was up 25% to $938.0
million from $752.9 million for the same prior-year period primarily
reflecting lower television production payments and an advance payment
received from a third party distributor for home entertainment products.
Business Outlook
The Company expects OIBDA and operating income growth to be in the
range of 3% to 5% for 2008, excluding stock-based compensation expense and
restructuring charges. The Company's 2008 business outlook is based on 2007
OIBDA of $3.18 billion and operating income of $2.73 billion, which exclude
stock-based compensation expense.
Consolidated and Segment Results
The tables below present the Company's revenues, OIBDA and operating
income by segment for the three months ended March 31, 2008 and 2007
(dollars in millions). Reconciliations of all non-GAAP measures to reported
results have been included at the end of this earnings release.
Three Months Ended
March 31, Better/
Revenues 2008 2007 (Worse)%
Television $2,597.6 $2,573.0 1%
Radio 363.5 397.5 (9)
Outdoor 496.9 462.3 7
Publishing 201.6 229.3 (12)
Eliminations (5.5) (4.3) (28)
Total Revenues $3,654.1 $3,657.8 -%
Three Months Ended
March 31, Better/
OIBDA 2008 2007 (Worse)%
Television $449.5 $399.0 13%
Radio 122.3 164.4 (26)
Outdoor 101.5 100.2 1
Publishing 17.1 23.8 (28)
Corporate (26.0) (26.8) 3
Residual costs (22.4) (24.1) 7
Total OIBDA $642.0 $636.5 1%
Three Months Ended
March 31, Better/
Operating Income 2008 2007 (Worse)%
Television $402.1 $350.1 15%
Radio 115.0 156.8 (27)
Outdoor 44.1 47.0 (6)
Publishing 14.6 21.4 (32)
Corporate (29.2) (29.9) 2
Residual costs (22.4) (24.1) 7
Total Operating Income $524.2 $521.3 1%
Television (CBS Television Network, CBS Television Stations, CBS
Paramount Network Television, CBS Television Distribution, Showtime
Networks and CBS College Sports Network)
Television revenues for the first quarter of 2008 increased 1% to $2.60
billion from $2.57 billion for the same prior-year period principally due
to an increase of 85% in television license fees, reflecting higher
domestic and international syndication sales, which included the impact of
the new international self-distribution arrangement for the CSI franchise
and the second-cycle syndication sale of Everybody Loves Raymond. Affiliate
revenues increased 6% driven by rate increases and subscriber growth at
Showtime Networks and CBS College Sports Network. These increases were
largely offset by the absence of the 2007 telecast of Super Bowl XLI, the
impact of 2007 station divestitures and the timing of the Semifinals of the
NCAA Men's Basketball Tournament, which aired in the second quarter of 2008
versus the first quarter of 2007. These items negatively impacted the first
quarter Television revenue comparison by 10%. Advertising revenues
decreased 15% due to the aforementioned three factors as well as the impact
of the Writers' Guild of America strike, which was settled in February
2008, partially offset by higher political advertising sales.
Television OIBDA increased 13% to $449.5 million and operating income
increased 15% to $402.1 million for the first quarter of 2008 primarily due
to higher profits from syndication sales, principally relating to the new
international self-distribution arrangement for the CSI franchise and the
sale of Everybody Loves Raymond, and higher affiliate revenues, partially
offset by restructuring charges of $34.9 million incurred during the first
quarter of 2008 and higher stock-based compensation expense. Television
results included stock-based compensation expense of $16.3 million and
$10.3 million for the first quarter of 2008 and 2007, respectively.
On January 10, 2008, the Company completed the sale of seven of its
owned television stations in Austin, Salt Lake City, Providence and West
Palm Beach to Cerberus Capital Management, L.P. for approximately $185
million.
Radio (CBS Radio)
Radio revenues on a same station basis decreased 6% from the first
quarter of 2007. Reported Radio revenues decreased 9% to $363.5 million
from $397.5 million for the same prior-year period, reflecting weakness in
the radio advertising market and the impact of radio station divestitures.
These decreases were partially offset by the recognition of $10.4 million
of revenue associated with the Company's former agreements with Westwood
One which were concluded during the first quarter of 2008.
Radio OIBDA and operating income for the first quarter of 2008
decreased 26% to $122.3 million and 27% to $115.0 million, respectively,
principally resulting from lower advertising sales, the absence of profits
from divested stations and a restructuring charge of $10.0 million incurred
during the first quarter of 2008 partially offset by the aforementioned
$10.4 million of revenue from Westwood One. Radio results included
stock-based compensation expense of $3.8 million and $3.4 million for the
first quarter of 2008 and 2007, respectively.
Outdoor (CBS Outdoor)
Outdoor revenues for the first quarter of 2008 increased 7% to $496.9
million from $462.3 million for the same prior-year period reflecting
growth of 15% in Europe and Asia and 3% in North America. Growth in Europe
and Asia was led by the U.K. as well as the impact of fluctuations in
foreign exchange rates. Revenue growth in North America was negatively
impacted by the non- renewal of two major municipal contracts in Toronto
and San Francisco, which reduced the revenue growth in North America by 2%
for the quarter.
Outdoor OIBDA increased 1% to $101.5 million for the first quarter of
2008 reflecting growth in Europe and Asia partially offset by a decline in
North America. Europe and Asia OIBDA increased 48% to $10.2 million driven
by the revenue growth. North America OIBDA decreased 2% to $91.3 million
due to the aforementioned non-renewal of municipal contracts as well as
higher billboard lease and transit costs. Outdoor operating income
decreased 6% to $44.1 million due to higher depreciation expense associated
with recent capital expenditures. Operating income for North America
decreased 6% to $45.0 million and Europe and Asia remained flat with an
operating loss of $.9 million. Outdoor results included stock-based
compensation expense of $1.5 million and $1.1 million for the first quarter
of 2008 and 2007, respectively.
Publishing (Simon & Schuster)
Publishing revenues for the first quarter of 2008 decreased 12% to
$201.6 million from $229.3 million for the same prior-year period, as
best-selling titles in the first quarter of 2008, including Duma Key by
Stephen King, Where Are You Now? by Mary Higgins Clark and Change of Heart
by Jodi Picoult, did not match contributions from prior year titles, which
included The Secret by Rhonda Byrne.
Publishing OIBDA and operating income decreased 28% to $17.1 million
and 32% to $14.6 million, respectively, principally reflecting the decline
in revenues partially offset by lower royalty expenses, production costs
and selling and advertising expenses. Publishing results included
stock-based compensation expense of $1.0 million and $.7 million for the
first quarter of 2008 and 2007, respectively.
Corporate
Corporate expenses before depreciation expense for the first quarter of
2008 decreased to $26.0 million from $26.8 million for the same prior-year
period. Corporate expenses included stock-based compensation expense of
$10.5 million and $5.5 million for the first quarter of 2008 and 2007,
respectively.
Residual Costs
Residual costs primarily include pension and postretirement benefits
costs for benefit plans retained by the Company for previously divested
businesses. Residual costs decreased to $22.4 million for the first quarter
of 2008 from $24.1 million for the same prior-year period.
Interest Expense
Interest expense for the first quarter of 2008 of $138.7 million
decreased from $139.8 million for the same prior-year period.
Interest Income
Interest income for the first quarter of 2008 of $17.6 million
decreased from $39.3 million for the same prior-year period principally
reflecting lower average cash balances primarily resulting from share
repurchases during 2007.
Provision for Income Taxes
The Company's effective income tax rate for the first quarter was 37.6%
for 2008 versus 48.7% for 2007, which reflected the tax impact of radio
station divestitures. Excluding the impact of station divestitures and
stock- based compensation expense, the effective income tax rate for the
first quarter of 2007 was 38.7%.
Other Matters
The Company also announced today that its Board of Directors authorized
an increase to the quarterly dividend of 8% from $.25 to $.27 per share.
The dividend is payable on July 1, 2008 to stockholders of record as of
June 3, 2008.
About CBS Corporation
CBS Corporation (NYSE: CBS.A and CBS) is a mass media company with
constituent parts that reach back to the beginnings of the broadcast
industry, as well as newer businesses that operate on the leading edge of
the media industry. The Company, through its many and varied operations,
combines broad reach with well-positioned local businesses, all of which
provide it with an extensive distribution network by which it serves
audiences and advertisers in all 50 states and key international markets.
It has operations in virtually every field of media and entertainment,
including broadcast television (CBS and The CW - a joint venture between
CBS Corporation and Warner Bros. Entertainment), cable television (Showtime
and CBS College Sports Network), local television (CBS Television
Stations), television production and syndication (CBS Paramount Network
Television and CBS Television Distribution), radio (CBS Radio), advertising
on out-of-home media (CBS Outdoor), publishing (Simon & Schuster),
interactive media (CBS Interactive), music (CBS Records), licensing and
merchandising (CBS Consumer Products), video/DVD (CBS Home Entertainment),
in-store media (CBS Outernet) and motion pictures (CBS Films). For more
information, log on to http://www.cbscorporation.com.
Cautionary Statement Concerning Forward-looking Statements
This news release contains both historical and forward-looking
statements. All statements, including Business Outlook, other than
statements of historical fact are, or may be deemed to be, forward-looking
statements within the meaning of section 27A of the Securities Act of 1933
and section 21E of the Securities Exchange Act of 1934. These
forward-looking statements are not based on historical facts, but rather
reflect the Company's current expectations concerning future results and
events. Similarly, statements that describe our objectives, plans or goals
are or may be forward-looking statements. These forward-looking statements
involve known and unknown risks, uncertainties and other factors that are
difficult to predict and which may cause the actual results, performance or
achievements of the Company 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: advertising
market conditions generally; changes in the public acceptance of the
Company's programming; changes in technology and its effect on competition
in the Company's markets; changes in the Federal Communications laws and
regulations; the impact of piracy on the Company's products, the impact of
the consolidation in the market for the Company's programming; other
domestic and global economic, business, competitive and/or other regulatory
factors affecting the Company's businesses generally; the impact of union
activity, including possible strikes or work stoppages or the Company's
inability to negotiate favorable terms for contract renewals; and other
factors described in the Company's news releases and filings with the
Securities and Exchange Commission including but not limited to the
Company's most recent Form 10-K. The forward-looking statements included in
this document are made only as of the date of this document, and under
section 27A of the Securities Act and section 21E of the Exchange Act, we
do not have any obligation to publicly update any forward-looking
statements to reflect subsequent events or circumstances.
CBS CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited; all amounts, except per share amounts, are in millions)
Three Months Ended
March 31,
2008 2007
Revenues $3,654.1 $3,657.8
Operating income 524.2 521.3
Interest expense (138.7) (139.8)
Interest income 17.6 39.3
Other items, net (.2) (1.5)
Earnings before income taxes 402.9 419.3
Provision for income taxes (151.3) (204.2)
Equity in loss of investee companies, net of tax (7.2) (1.9)
Minority interest, net of tax (.1) .3
Net earnings $244.3 $213.5
Basic net earnings per common share $.37 $.28
Diluted net earnings per common share $.36 $.28
Weighted average number of common shares outstanding:
Basic 667.9 756.7
Diluted 673.8 765.1
Dividends per common share $.25 $.22
CBS CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited; Dollars in millions)
At March 31, At December 31,
2008 2007
Assets
Cash and cash equivalents $2,258.9 $1,346.9
Receivables, net 2,923.0 2,678.0
Programming and other inventory 750.0 971.9
Prepaid expenses and other current assets 1,059.9 1,034.1
Total current assets 6,991.8 6,030.9
Property and equipment 4,699.7 4,683.4
Less accumulated depreciation and amortization 1,806.7 1,761.9
Net property and equipment 2,893.0 2,921.5
Programming and other inventory 1,267.9 1,548.5
Goodwill 18,480.6 18,452.0
Intangible assets 9,961.0 10,081.3
Other assets 1,437.0 1,396.0
Total Assets $41,031.3 $40,430.2
Liabilities and Stockholders' Equity
Accounts payable $328.1 $352.3
Participants' share and royalties payable 928.3 612.5
Program rights 1,002.6 1,009.7
Current portion of long-term debt 14.6 19.1
Accrued expenses and other current liabilities 2,463.3 2,411.0
Total current liabilities 4,736.9 4,404.6
Long-term debt 7,112.0 7,068.6
Other liabilities 7,513.7 7,483.1
Minority interest 1.7 1.5
Stockholders' equity 21,667.0 21,472.4
Total Liabilities and Stockholders' Equity $41,031.3 $40,430.2
CBS CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited; Dollars in millions)
Three Months Ended
March 31,
2008 2007
Operating activities:
Net earnings $244.3 $213.5
Adjustments to reconcile net earnings to net cash
flow provided by operating activities:
Depreciation and amortization 117.8 115.2
Stock-based compensation 33.1 21.0
Equity in loss of investee companies,
net of distributions 7.2 5.7
Minority interest, net of tax .1 (.3)
Change in assets and liabilities,
net of effects of acquisitions 624.3 492.9
Net cash flow provided by operating activities 1,026.8 848.0
Investing activities:
Acquisitions, net of cash acquired (48.4) (28.1)
Capital expenditures (88.8) (95.1)
Investments in and advances to investee companies (1.1) (31.1)
Purchases of marketable securities (12.6) -
Proceeds from sales of marketable securities 4.7 -
Proceeds from dispositions 189.5 243.7
Net receipts from Viacom Inc. related to the
Separation 6.7 188.5
Other, net (7.4) -
Net cash flow provided by investing activities 42.6 277.9
Financing activities:
Borrowings from (repayments to) banks,
including commercial paper, net (3.7) 2.3
Payment of capital lease obligations (5.0) (4.2)
Proceeds from issuance of notes - 678.0
Purchase of Company common stock (11.9) (1,422.1)
Dividends (168.8) (153.9)
Proceeds from exercise of stock options 30.4 75.6
Excess tax benefit from stock-based compensation 1.6 2.4
Net cash flow used for financing activities (157.4) (821.9)
Net increase in cash and cash equivalents 912.0 304.0
Cash and cash equivalents at beginning of period 1,346.9 3,074.6
Cash and cash equivalents at end of period $2,258.9 $3,378.6
CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(Unaudited; Dollars in millions)
Operating Income Before Depreciation and Amortization ("OIBDA")
The following tables set forth the Company's Operating Income before
Depreciation and Amortization ("OIBDA") for the three months ended March
31, 2008 and 2007. The Company defines OIBDA as net earnings adjusted to
exclude the following line items presented in its Statements of Operations:
Minority interest, net of tax; Equity in loss of investee companies, net of
tax; Provision for income taxes; Other items, net; Interest income;
Interest expense; and Depreciation and amortization.
The Company uses OIBDA, among other things, to evaluate the Company's
operating performance, to value prospective acquisitions and as one of
several components of incentive compensation targets for certain management
personnel, and this measure is among the primary measures used by
management for planning and forecasting of future periods. This measure is
an important indicator of the Company's operational strength and
performance of its business because it provides a link between
profitability and operating cash flow. The Company believes the
presentation of this measure is relevant and useful for investors because
it allows investors to view performance in a manner similar to the method
used by the Company's management, helps improve their ability to understand
the Company's operating performance and makes it easier to compare the
Company's results with other companies that have different financing and
capital structures or tax rates. In addition, this measure is also among
the primary measures used externally by the Company's investors, analysts
and peers in its industry for purposes of valuation and comparing the
operating performance of the Company to other companies in its industry.
Since OIBDA is not a measure of performance calculated in accordance
with generally accepted accounting principles ("GAAP"), it should not be
considered in isolation of, or as a substitute for, net earnings as an
indicator of operating performance. OIBDA, as the Company calculates it,
may not be comparable to similarly titled measures employed by other
companies. In addition, this measure does not necessarily represent funds
available for discretionary use, and is not necessarily a measure of the
Company's ability to fund its cash needs. As OIBDA excludes certain
financial information compared with net earnings, the most directly
comparable GAAP financial measure, users of this financial information
should consider the types of events and transactions which are excluded.
The Company provides the following reconciliations of Total OIBDA to Net
earnings and OIBDA for each segment to such segment's operating income, the
most directly comparable amounts reported under GAAP.
CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(continued)
(Unaudited; Dollars in millions)
Three Months Ended March 31, 2008
Depreciation Operating
OIBDA and Amortization Income (Loss)
Television $449.5 $(47.4) $402.1
Radio 122.3 (7.3) 115.0
Outdoor 101.5 (57.4) 44.1
Publishing 17.1 (2.5) 14.6
Corporate (26.0) (3.2) (29.2)
Residual costs (22.4) - (22.4)
Total $642.0 $(117.8) $524.2
Three Months Ended March 31, 2007
Depreciation Operating
OIBDA and Amortization Income (Loss)
Television $399.0 $(48.9) $350.1
Radio 164.4 (7.6) 156.8
Outdoor 100.2 (53.2) 47.0
Publishing 23.8 (2.4) 21.4
Corporate (26.8) (3.1) (29.9)
Residual costs (24.1) - (24.1)
Total $636.5 $(115.2) $521.3
Three Months Ended March 31,
2008 2007
Total OIBDA $642.0 $636.5
Depreciation and amortization (117.8) (115.2)
Operating income 524.2 521.3
Interest expense (138.7) (139.8)
Interest income 17.6 39.3
Other items, net (.2) (1.5)
Earnings before income taxes 402.9 419.3
Provision for income taxes (151.3) (204.2)
Equity in loss of investee companies, net of tax (7.2) (1.9)
Minority interest, net of tax (.1) .3
Net earnings $244.3 $213.5
CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(continued)
(Unaudited; Dollars in millions)
Free Cash Flow
Free cash flow reflects the Company's net cash flow from operating
activities less capital expenditures. The Company uses free cash flow,
among other measures, to evaluate its operating performance. Management
believes free cash flow provides investors with an important perspective on
the cash available to service debt, make strategic acquisitions and
investments, maintain its capital assets, satisfy its tax obligations and
fund ongoing operations and working capital needs. As a result, free cash
flow is a significant measure of the Company's ability to generate long
term value. It is useful for investors to know whether this ability is
being enhanced or degraded as a result of the Company's operating
performance. The Company believes the presentation of free cash flow is
relevant and useful for investors because it allows investors to view
performance in a manner similar to the method used by management. In
addition, free cash flow is also a primary measure used externally by the
Company's investors, analysts and peers in its industry for purposes of
valuation and comparing the operating performance of the Company to other
companies in its industry.
As free cash flow is not a measure of performance calculated in
accordance with GAAP, free cash flow should not be considered in isolation
of, or as a substitute for, net earnings as an indicator of operating
performance or net cash flow provided by operating activities as a measure
of liquidity. Free cash flow, as the Company calculates it, may not be
comparable to similarly titled measures employed by other companies. In
addition, free cash flow does not necessarily represent funds available for
discretionary use and is not necessarily a measure of the Company's ability
to fund its cash needs. As free cash flow deducts capital expenditures from
net cash flow provided by operating activities, the most directly
comparable GAAP financial measure, users of this financial information
should consider the types of events and transactions which are not
reflected. The Company provides below a reconciliation of free cash flow to
net cash flow provided by operating activities, the most directly
comparable amount reported under GAAP.
The following table presents a reconciliation of the Company's net cash
flow provided by operating activities to free cash flow:
Three Months Ended
March 31,
2008 2007
Net cash flow provided by operating activities $1,026.8 $848.0
Less capital expenditures 88.8 95.1
Free cash flow $938.0 $752.9
The following table presents a summary of the Company's cash flows:
Three Months Ended
March 31,
2008 2007
Net cash flow provided by operating activities $1,026.8 $848.0
Net cash flow provided by investing activities $42.6 $277.9
Net cash flow used for financing activities $(157.4) $(821.9)
CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(continued)
(Unaudited; all amounts, except per share amounts, are in millions)
2008 and 2007 Three Month Adjusted Results
The following tables reconcile financial measures excluding stock-based
compensation expense, restructuring charges and the impact of the pre-tax
gain and related tax provision of the radio station divestitures, to the
reported measures included in this earnings release. The Company believes
that adjusting its financial results for the impact of these items is
relevant and useful for investors because it allows investors to view
performance in a manner similar to the method used by the Company's
management, provides a clearer perspective on the current underlying
performance of the Company and makes it easier to compare the Company's
year-over-year results.
Three Months Ended March 31, 2008
Increase
vs.
2008 Stock-based Restructuring 2008 2007
Reported Compensation Charges(a) Adjusted Adjusted
Revenues $3,654.1 $- $- $3,654.1
OIBDA 642.0 33.1 44.9 720.0 10%
Operating income 524.2 33.1 44.9 602.2 11%
Interest expense (138.7) - - (138.7)
Interest income 17.6 - - 17.6
Other items, net (.2) - - (.2)
Earnings before
income taxes 402.9 33.1 44.9 480.9
Provision for
income taxes (151.3) (13.1) (17.8) (182.2)
Effective income
tax rate 37.6% 37.9%
Equity in loss of investee
companies, net of tax (7.2) - - (7.2)
Minority interest,
net of tax (.1) - - (.1)
Net earnings $244.3 $20.0 $27.1 $291.4 9%
Diluted EPS $.36 $.03 $.04 $.43 23%
Diluted weighted average
number of common shares
outstanding 673.8 673.8 673.8 673.8
Three Months Ended March 31, 2007
2007 Stock-based Station 2007
Reported Compensation Divestitures(b) Adjusted
Revenues $3,657.8 $- $- $3,657.8
OIBDA 636.5 21.0 - 657.5
Operating income 521.3 21.0 - 542.3
Interest expense (139.8) - - (139.8)
Interest income 39.3 - - 39.3
Other items, net (1.5) - (3.4) (4.9)
Earnings before
income taxes 419.3 21.0 (3.4) 436.9
Provision for
income taxes (204.2) (8.3) 43.5 (169.0)
Effective income tax rate 48.7% 38.7%
Equity in loss of investee
companies, net of tax (1.9) - - (1.9)
Minority interest,
net of tax .3 - - .3
Net earnings $213.5 $12.7 $40.1 $266.3
Diluted EPS $.28 $.02 $.05 $.35
Diluted weighted average
number of common shares
outstanding 765.1 765.1 765.1 765.1
(a) Restructuring charges at Television ($34.9 million) and Radio
($10.0 million) reflecting severance costs associated with headcount
reductions.
(b) Pre-tax gain and related tax provision of the divestitures of radio
stations.
CBS CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(continued)
(Unaudited; Dollars in millions)
Radio Segment Same Station Reconciliation
The Company has completed all of the previously announced sales of 39
radio stations in ten of its smaller markets. The following table presents
the revenues for the Radio segment on a same station basis, which excludes
all revenues for the divested stations, for all periods presented. The
Company believes that adjusting the revenues of the Radio segment for the
impact of station divestitures provides investors with a clearer
perspective on the current underlying financial performance of the Radio
segment.
Three Months Ended
March 31, Better/
2008 2007 (Worse)%
Radio revenues, as reported $363.5 $397.5 (9)%
Divested stations - (9.6) n/m
Radio revenues, same station basis $363.5 $387.9 (6)%
n/m - not meaningful
Business Outlook
The following table presents the Company's business outlook for 2008,
which is based on 2007 results adjusted to exclude stock-based compensation
expense. The Company believes that providing its business outlook excluding
the impact of stock-based compensation expense is relevant and meaningful
because it provides management and investors with a clearer perspective on
the Company's underlying growth. The Company currently expects stock-based
compensation expense in 2008 to be in the range of $155 million to $165
million compared to $106.6 million in 2007.
Twelve Months Ended December 31, 2007
2007 Stock-based 2007 2008
Reported Compensation Adjusted Business Outlook
OIBDA $3,077.5 $106.6 $3,184.1 3% - 5%
Depreciation and
amortization (455.7) - (455.7)
Operating income $2,621.8 $106.6 $2,728.4 3% - 5%
SOURCE CBS Corporation
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http://www.prnewswire.com/comp/185007.html / (CBS)
CONTACT:
Press: Gil Schwartz, Executive Vice
President, Corporate Communications, +1-212-975-2121,
gdschwartz@cbs.com, or Dana McClintock, Senior Vice President,
Corporate Communications, dlmcclintock@cbs.com, +1-212- 975-1077,
Investors: Martin Shea, Executive Vice President, Investor
Relations, +1-212-975-8571, marty.shea@cbs.com, Debra Wichser,
Vice President, Investor Relations, +1-212-975-3718,
debra.wichser@cbs.com, all of CBS
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