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Discovery Communications Reports First Quarter 2017 Results
"Improved ratings across many of Discovery's key distinctive programs and brands, coupled with strong global distribution growth, led to solid organic growth in the first quarter," said President and CEO
First Quarter Results
First quarter revenues of
First quarter net income available to
Free cash flow increased to
(1) |
See full definitions of Adjusted Operating Income Before Depreciation and Amortization and Adjusted Earnings Per Diluted Share on page 5. |
(2) |
All per share amounts are calculated using DCI Net Income. See table on page 12 for the full schedule. |
SEGMENT RESULTS
(dollars in millions) |
Three Months Ended March 31, |
||||||||||
2017 |
2016 |
Change |
|||||||||
Revenues: |
|||||||||||
U.S. Networks |
$ |
829 |
$ |
807 |
3 |
% |
|||||
International Networks |
747 |
711 |
5 |
% |
|||||||
Education and Other |
37 |
44 |
(16) |
% |
|||||||
Corporate and Inter-Segment Eliminations |
— |
(1) |
NM |
||||||||
Total Revenues |
$ |
1,613 |
$ |
1,561 |
3 |
% |
|||||
Adjusted OIBDA: |
|||||||||||
U.S. Networks |
$ |
501 |
$ |
473 |
6 |
% |
|||||
International Networks |
194 |
182 |
7 |
% |
|||||||
Education and Other |
(6) |
(1) |
NM |
||||||||
Corporate and Inter-Segment Eliminations |
(86) |
(80) |
(8) |
% |
|||||||
Total Adjusted OIBDA |
$ |
603 |
$ |
574 |
5 |
% |
U.S. Networks
(dollars in millions) |
Three Months Ended March 31, |
||||||||||
2017 |
2016 |
Change |
|||||||||
Revenues: |
|||||||||||
Distribution |
$ |
408 |
$ |
390 |
5 |
% |
|||||
Advertising |
405 |
402 |
1 |
% |
|||||||
Other |
16 |
15 |
7 |
% |
|||||||
Total Revenues |
$ |
829 |
$ |
807 |
3 |
% |
|||||
Adjusted OIBDA |
$ |
501 |
$ |
473 |
6 |
% |
|||||
Adjusted OIBDA Margin |
60 |
% |
59 |
% |
U.S. Networks' revenues for the first quarter 2017 increased 3% to
Operating expenses decreased 2% compared to the prior year primarily due to lower content amortization and impairment costs, lower personnel costs, and the impact of the Group Nine transaction, partially offset by higher marketing and research costs. Adjusted OIBDA increased 6% to
(1) |
The Company completed its investment, including the contribution and, therefore, deconsolidation of Seeker and SourceFed, in Group Nine on December 2, 2016. |
International Networks
(dollars in millions) |
Three Months Ended March 31, |
||||||||||
2017 |
2016 |
Change |
|||||||||
Revenues: |
|||||||||||
Distribution |
$ |
447 |
$ |
411 |
9 |
% |
|||||
Advertising |
282 |
285 |
(1) |
% |
|||||||
Other |
18 |
15 |
20 |
% |
|||||||
Total Revenues |
$ |
747 |
$ |
711 |
5 |
% |
|||||
Adjusted OIBDA |
$ |
194 |
$ |
182 |
7 |
% |
|||||
Adjusted OIBDA Margin |
26 |
% |
26 |
% |
International Networks' revenues for the first quarter increased 5% to
Operating expenses increased 5%, or 9% excluding the impact of foreign currency exchange rates, primarily due to increased sports and other content and production costs. Excluding the impact of foreign currency exchange rates, Adjusted OIBDA increased 4%, reflecting revenue growth, partially offset by higher operating expenses.
Education and Other
(dollars in millions) |
Three Months Ended March 31, |
||||||||||
2017 |
2016 |
Change |
|||||||||
Revenues |
$ |
37 |
$ |
44 |
(16) |
% |
|||||
Adjusted OIBDA |
$ |
(6) |
$ |
(1) |
NM |
Education and Other revenues for the first quarter 2017 decreased
Corporate and Inter-Segment Eliminations
Adjusted OIBDA for the first quarter 2017 decreased
STOCK REPURCHASE
During the quarter, the Company, pursuant to its existing stock repurchase program, repurchased 5.2 million shares of its Series C common stock at an average price of
Through March 31, 2017, the Company had repurchased a total of 155.0 million shares of Series C common stock and 2.8 million shares of its Series A common stock under its stock repurchase program. In aggregate, including the 34.4 million Series C convertible preferred shares acquired from ANPP and from
On
OTHER ITEMS
On
On March 13, 2017,
FULL YEAR 2017 OUTLOOK(2)
Discovery will provide forward-looking guidance in connection with this quarterly earnings announcement on its quarterly earnings conference call and webcast referenced hereafter.
(1) |
The average repurchase price was calculated by dividing a) the aggregate amount spent on share repurchases since the inception of share repurchases in 2010 ($8.2 billion) by b) the number of shares that would have been repurchased if the Series C Common Stock special dividend paid on August 6, 2014 occurred prior to the inception of share repurchases in 2010. For each common share repurchased prior to August 6, 2014, we assume one additional share of Class C Common Stock was repurchased for no additional consideration. For each Series C convertible preferred share repurchased, we assume each preferred share would have converted into two Series C common shares. |
(2) |
Discovery is unable to provide a reconciliation of the forward-looking guidance to GAAP measures as, at this time, Discovery cannot determine the adjustments that would be required, including those related to fluctuations in foreign currency exchange rates. |
NON-GAAP FINANCIAL MEASURES
In addition to the results prepared in accordance with U.S. generally accepted accounting principles ("GAAP") provided in this release, the Company has presented Adjusted OIBDA, Adjusted EPS and free cash flow. These non-GAAP measures should be considered in addition to, but not as a substitute for, operating income, net income, earnings per diluted share and other measures of financial performance reported in accordance with GAAP. Please review the supplemental financial schedules beginning on page 10 for reconciliations to the most comparable GAAP measures.
Adjusted OIBDA and Adjusted OIBDA Excluding the Impact of Currency Effects
The Company evaluates the operating performance of its segments based on financial measures such as revenues and Adjusted OIBDA. Adjusted OIBDA is defined as operating income excluding: (i) mark-to-market share-based compensation, (ii) depreciation and amortization, (iii) restructuring and other charges, (iv) certain impairment charges, (v) gains and losses on business and asset dispositions, and (vi) certain inter-segment eliminations related to production studios. For the current period presented, the Company no longer excludes amortization of deferred launch incentives in calculating total Adjusted OIBDA as this expense is not material.
The Company uses Adjusted OIBDA to assess the operating results and performance of its segments, perform analytical comparisons, identify strategies to improve performance and allocate resources to each segment. The Company believes Adjusted OIBDA is relevant to investors because it allows them to analyze the operating performance of each segment using the same metric management uses. The Company excludes mark-to-market share-based compensation, restructuring and other charges, certain impairment charges, and gains and losses on business and asset dispositions from the calculation of Adjusted OIBDA due to their volatility. The Company also excludes depreciation of fixed assets and amortization of intangible assets as these amounts do not represent cash payments in the current reporting period. Additionally, certain corporate expenses are excluded from segment results to enable executive management to evaluate segment performance based upon the decisions of segment executives. Refer to page 6 for our methodology for calculating growth rates excluding the impact of currency effects.
Adjusted EPS and Adjusted EPS Excluding the Impact of Currency Effects
Adjusted EPS is defined as earnings excluding the impact of amortization of acquisition-related intangible assets per diluted share. Note that given the change in conversion ratio for our preferred stock, the preferred shares are now only included in the diluted share count. The Company believes Adjusted EPS is relevant to investors because this metric allows them to evaluate the performance of the Company's operations exclusive of the non-cash amortization of acquisition-related intangible assets that impact the comparability of results from period to period. Refer to page 6 for our methodology for calculating growth rates excluding the impact of currency effects.
Free Cash Flow and Free Cash Flow Excluding the Impact of Currency Effects
The Company defines free cash flow as cash provided by operating activities less acquisitions of property and equipment. The Company uses free cash flow as it believes it is an important indicator for management and investors of the Company's liquidity, including its ability to reduce debt, make strategic investments and return capital to stockholders. Refer to page 6 for our methodology for calculating growth rates excluding the impact of currency effects.
Methodology for Calculating Growth Rates Excluding the Impact of Currency Effects
The impact of exchange rates on our business is an important factor in understanding period to period comparisons of our results. For example, our international revenues are favorably impacted as the U.S. dollar weakens relative to other foreign currencies, and unfavorably impacted as the U.S. dollar strengthens relative to other foreign currencies. We believe the presentation of results on a constant currency basis ("ex-FX"), in addition to results reported in accordance with GAAP, provides useful information about our operating performance because the presentation ex-FX excludes the effects of foreign currency volatility and highlights our core operating results. The presentation of results on a constant currency basis should be considered in addition to, but not a substitute for, measures of financial performance reported in accordance with GAAP.
The ex-FX change represents the percentage change on a period-over-period basis adjusted for foreign currency impacts. The ex-FX change is calculated as the difference between the current year amounts translated at a baseline rate (which is based on a spot rate for each of our currencies determined early in the fiscal year as part of our forecasting process) (the "2017 Baseline Rate") and the prior year amounts translated at the same 2017 Baseline Rate. In addition, consistent with the assumption of a constant currency environment, our ex-FX results exclude the impact of our foreign currency hedging activities as well as realized and unrealized foreign currency transaction gains and losses. Results on a constant currency basis, as we present them, may not be comparable to similarly titled measures used by other companies.
Conference Call Information
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties and on information available to the Company as of the date hereof. The Company's actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risk factors disclosed in its Annual Report on Form 10-K filed with the
DISCOVERY COMMUNICATIONS, INC. |
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(unaudited; in millions, except per share amounts) |
||||||||
Three Months Ended March 31, |
||||||||
2017 |
2016 |
|||||||
Revenues: |
||||||||
Distribution |
$ |
855 |
$ |
801 |
||||
Advertising |
687 |
687 |
||||||
Other |
71 |
73 |
||||||
Total revenues |
1,613 |
1,561 |
||||||
Costs and expenses: |
||||||||
Costs of revenues, excluding depreciation and amortization |
607 |
592 |
||||||
Selling, general and administrative |
415 |
408 |
||||||
Depreciation and amortization |
80 |
79 |
||||||
Restructuring and other charges |
24 |
6 |
||||||
Gain on disposition |
— |
(13) |
||||||
Total costs and expenses |
1,126 |
1,072 |
||||||
Operating income |
487 |
489 |
||||||
Interest expense |
(91) |
(85) |
||||||
Loss on extinguishment of debt |
(54) |
— |
||||||
Loss from equity investees, net |
(53) |
(8) |
||||||
Other expense, net |
(13) |
(16) |
||||||
Income before income taxes |
276 |
380 |
||||||
Income tax expense |
(55) |
(111) |
||||||
Net income |
221 |
269 |
||||||
Net income attributable to redeemable noncontrolling interests |
(6) |
(6) |
||||||
Net income available to Discovery Communications, Inc. |
$ |
215 |
$ |
263 |
||||
Net income per share available to Discovery Communications, Inc. Series A, B and C common stockholders: |
||||||||
Basic |
$ |
0.37 |
$ |
0.42 |
||||
Diluted(1) |
$ |
0.37 |
$ |
0.42 |
||||
Weighted average shares outstanding: |
||||||||
Basic |
389 |
413 |
||||||
Diluted(1) |
588 |
630 |
(1) |
Diluted shares adjust for the potential dilution that would occur if common stock equivalents, including convertible preferred stock and share-based awards, were converted into common stock or exercised. |
DISCOVERY COMMUNICATIONS, INC. |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(unaudited; in millions) |
||||||||
March 31, 2017 |
December 31, 2016 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
267 |
$ |
300 |
||||
Receivables, net |
1,560 |
1,495 |
||||||
Content rights, net |
395 |
310 |
||||||
Prepaid expenses and other current assets |
369 |
397 |
||||||
Total current assets |
2,591 |
2,502 |
||||||
Noncurrent content rights, net |
2,038 |
2,089 |
||||||
Property and equipment, net |
504 |
482 |
||||||
Goodwill, net |
8,077 |
8,040 |
||||||
Intangible assets, net |
1,489 |
1,512 |
||||||
Equity method investments, including note receivable |
690 |
557 |
||||||
Other noncurrent assets |
473 |
490 |
||||||
Total assets |
$ |
15,862 |
$ |
15,672 |
||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
200 |
$ |
241 |
||||
Accrued liabilities |
1,008 |
1,075 |
||||||
Deferred revenues |
194 |
163 |
||||||
Current portion of debt |
132 |
82 |
||||||
Total current liabilities |
1,534 |
1,561 |
||||||
Noncurrent portion of debt |
7,970 |
7,841 |
||||||
Deferred income taxes |
429 |
467 |
||||||
Other noncurrent liabilities |
345 |
393 |
||||||
Total liabilities |
10,278 |
10,262 |
||||||
Redeemable noncontrolling interests |
249 |
243 |
||||||
Equity: |
||||||||
Preferred stock |
2 |
2 |
||||||
Common stock |
5 |
5 |
||||||
Additional paid-in capital |
7,146 |
7,046 |
||||||
Treasury stock, at cost |
(6,496) |
(6,356) |
||||||
Retained earnings |
5,382 |
5,232 |
||||||
Accumulated other comprehensive loss |
(704) |
(762) |
||||||
Total equity |
5,335 |
5,167 |
||||||
Total liabilities and equity |
$ |
15,862 |
$ |
15,672 |
DISCOVERY COMMUNICATIONS, INC. |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(unaudited; in millions) |
|||||||
Three Months Ended March 31, |
|||||||
2017 |
2016 |
||||||
Operating Activities |
|||||||
Net income |
$ |
221 |
$ |
269 |
|||
Adjustments to reconcile net income to cash provided by operating activities: |
|||||||
Share-based compensation expense |
21 |
24 |
|||||
Depreciation and amortization |
80 |
79 |
|||||
Content amortization and impairment expense |
458 |
441 |
|||||
Gain on disposition |
— |
(13) |
|||||
Equity in losses of investee companies, net of cash distributions |
54 |
9 |
|||||
Deferred income taxes |
(34) |
(58) |
|||||
Loss on extinguishment of debt |
54 |
— |
|||||
Other, net |
3 |
15 |
|||||
Changes in operating assets and liabilities: |
|||||||
Receivables, net |
(44) |
(7) |
|||||
Content rights, net |
(474) |
(488) |
|||||
Accounts payable and accrued liabilities |
(121) |
(148) |
|||||
Share-based compensation liabilities |
(1) |
(5) |
|||||
Income taxes receivable and prepaid income taxes |
48 |
28 |
|||||
Foreign currency and other, net |
(10) |
(84) |
|||||
Cash provided by operating activities |
255 |
62 |
|||||
Investing Activities |
|||||||
Payments for investments |
(188) |
— |
|||||
Distributions from equity method investees |
5 |
15 |
|||||
Purchases of property and equipment |
(47) |
(15) |
|||||
Proceeds from derivative instruments, net |
5 |
— |
|||||
Other investing activities, net |
1 |
(1) |
|||||
Cash used in investing activities |
(224) |
(1) |
|||||
Financing Activities |
|||||||
Commercial paper borrowings (repayments), net |
54 |
(93) |
|||||
Borrowings under revolving credit facility |
150 |
95 |
|||||
Principal repayments of revolving credit facility |
(125) |
(252) |
|||||
Borrowings from debt, net of discount and including premiums |
659 |
498 |
|||||
Principal repayments of debt, including discount payment and premiums to par value |
(650) |
— |
|||||
Principal repayments of capital lease obligations |
(13) |
(12) |
|||||
Repurchases of stock |
(200) |
(373) |
|||||
Cash settlement of common stock repurchase contracts |
58 |
— |
|||||
Distributions to redeemable noncontrolling interests |
(3) |
(2) |
|||||
Share-based plan payments, net |
(8) |
(5) |
|||||
Other financing activities, net |
(6) |
(11) |
|||||
Cash used in financing activities |
(84) |
(155) |
|||||
Effect of exchange rate changes on cash and cash equivalents |
20 |
37 |
|||||
Net change in cash and cash equivalents |
(33) |
(57) |
|||||
Cash and cash equivalents, beginning of period |
300 |
390 |
|||||
Cash and cash equivalents, end of period |
$ |
267 |
$ |
333 |
DISCOVERY COMMUNICATIONS, INC. |
||||||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA |
||||||||||||||||||||
RECONCILIATION OF NET INCOME TO |
||||||||||||||||||||
ADJUSTED OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION |
||||||||||||||||||||
(unaudited; in millions) |
||||||||||||||||||||
Three Months Ended March 31, 2017 |
||||||||||||||||||||
U.S. Networks |
International Networks |
Education and Other |
Corporate and Inter-Segment Eliminations |
Total |
||||||||||||||||
Net income available to Discovery Communications, Inc. |
$ |
215 |
||||||||||||||||||
Net income attributable to redeemable noncontrolling interests |
6 |
|||||||||||||||||||
Income tax expense |
55 |
|||||||||||||||||||
Other expense, net |
13 |
|||||||||||||||||||
Loss from equity investees, net |
53 |
|||||||||||||||||||
Loss on extinguishment of debt |
54 |
|||||||||||||||||||
Interest expense |
91 |
|||||||||||||||||||
Operating income |
483 |
123 |
(2) |
(117) |
487 |
|||||||||||||||
Inter-segment eliminations |
6 |
— |
(6) |
— |
— |
|||||||||||||||
Gain on disposition |
— |
— |
— |
— |
— |
|||||||||||||||
Restructuring and other charges |
4 |
17 |
1 |
2 |
24 |
|||||||||||||||
Depreciation and amortization |
8 |
54 |
1 |
17 |
80 |
|||||||||||||||
Mark-to-market share-based compensation |
— |
— |
— |
12 |
12 |
|||||||||||||||
Total Adjusted OIBDA |
$ |
501 |
$ |
194 |
$ |
(6) |
$ |
(86) |
$ |
603 |
||||||||||
Three Months Ended March 31, 2016 |
||||||||||||||||||||
U.S. Networks |
International Networks |
Education and Other |
Corporate and Inter-Segment Eliminations |
Total |
||||||||||||||||
Net income available to Discovery Communications, Inc. |
$ |
263 |
||||||||||||||||||
Net income attributable to redeemable noncontrolling interests |
6 |
|||||||||||||||||||
Income tax expense |
111 |
|||||||||||||||||||
Other expense, net |
16 |
|||||||||||||||||||
Loss from equity investees, net |
8 |
|||||||||||||||||||
Loss on extinguishment of debt |
— |
|||||||||||||||||||
Interest expense |
85 |
|||||||||||||||||||
Operating income |
461 |
135 |
2 |
(109) |
489 |
|||||||||||||||
Inter-segment eliminations |
4 |
1 |
(5) |
— |
— |
|||||||||||||||
Gain on disposition |
— |
(13) |
— |
— |
(13) |
|||||||||||||||
Restructuring and other charges |
1 |
5 |
— |
— |
6 |
|||||||||||||||
Depreciation and amortization |
7 |
54 |
2 |
16 |
79 |
|||||||||||||||
Mark-to-market share-based compensation |
— |
— |
— |
13 |
13 |
|||||||||||||||
Total Adjusted OIBDA |
$ |
473 |
$ |
182 |
$ |
(1) |
$ |
(80) |
$ |
574 |
||||||||||
DISCOVERY COMMUNICATIONS, INC. |
||||||||||||||
SUPPLEMENTAL FINANCIAL DATA |
||||||||||||||
SELECTED FINANCIAL DETAIL |
||||||||||||||
(unaudited; in millions, except per share amounts) |
||||||||||||||
SELECTED TOTAL COMPANY FINANCIAL METRICS - YEAR OVER YEAR GROWTH RATES REPORTED AND EXCLUDING FOREIGN CURRENCY IMPACT |
||||||||||||||
Three Months Ended March 31, |
||||||||||||||
2017 |
2016 |
% Change (Reported) |
% Change (ex-FX)(1) |
|||||||||||
Revenues |
$ |
1,613 |
$ |
1,561 |
3 |
% |
5 |
% |
||||||
Adjusted OIBDA(2) |
$ |
603 |
$ |
574 |
5 |
% |
4 |
% |
||||||
DCI Net Income |
$ |
215 |
$ |
263 |
(18) |
% |
(18) |
% |
||||||
Diluted EPS |
$ |
0.37 |
$ |
0.42 |
(12) |
% |
(12) |
% |
||||||
Adjusted EPS(2) |
$ |
0.41 |
$ |
0.46 |
(11) |
% |
(11) |
% |
||||||
Free Cash Flow(2) |
$ |
208 |
$ |
47 |
343 |
% |
167 |
% |
||||||
SELECTED INTERNATIONAL NETWORKS FINANCIAL METRICS - YEAR OVER YEAR GROWTH RATES REPORTED AND EXCLUDING FOREIGN CURRENCY IMPACT |
||||||||||||||
Three Months Ended March 31, |
||||||||||||||
2017 |
2016 |
% Change (Reported) |
% Change (ex-FX)(1) |
|||||||||||
Revenues |
||||||||||||||
Distribution |
$ |
447 |
$ |
411 |
9 |
% |
10 |
% |
||||||
Advertising |
282 |
285 |
(1) |
% |
3 |
% |
||||||||
Other |
18 |
15 |
20 |
% |
29 |
% |
||||||||
Total Revenues |
$ |
747 |
$ |
711 |
5 |
% |
8 |
% |
||||||
Adjusted OIBDA(2) |
$ |
194 |
$ |
182 |
7 |
% |
4 |
% |
||||||
(1) Refer to Page 6 for our methodology for calculating growth rates excluding the impact of currency effects. |
||||||||||||||
(2) See full definitions of Adjusted OIBDA, Adjusted EPS and Free Cash Flow on page 5. |
DISCOVERY COMMUNICATIONS, INC. |
||||||||
SUPPLEMENTAL FINANCIAL DATA |
||||||||
SELECTED FINANCIAL DETAIL |
||||||||
(unaudited; in millions, except per share amounts) |
||||||||
EARNINGS PER SHARE |
||||||||
Three Months Ended March 31, |
||||||||
2017 |
2016 |
|||||||
Numerator: |
||||||||
Net income |
$ |
221 |
$ |
269 |
||||
Less: |
||||||||
Allocation of undistributed income to Series A convertible preferred stock |
(52) |
(59) |
||||||
Net income attributable to redeemable noncontrolling interests |
(6) |
(6) |
||||||
Net income available to Discovery Communications, Inc. Series A, B and C common and Series C convertible preferred stockholders for basic net income per share |
$ |
163 |
$ |
204 |
||||
Allocation of net income available to Discovery Communications Inc. Series A, B and C common stockholders and Series C convertible preferred stockholders for basic net income per share: |
||||||||
Series A, B and C common stockholders |
143 |
173 |
||||||
Series C convertible preferred stockholders |
20 |
31 |
||||||
Total |
163 |
204 |
||||||
Add: |
||||||||
Allocation of undistributed income to Series A convertible preferred stockholders |
52 |
59 |
||||||
Net income available to Discovery Communications, Inc. Series A, B and C common stockholders for diluted net income per share |
$ |
215 |
$ |
263 |
||||
Denominator: |
||||||||
Weighted average Series A, B and C common shares outstanding — basic |
389 |
413 |
||||||
Weighted average impact of assumed preferred stock conversion |
195 |
214 |
||||||
Weighted average dilutive effect of share-based awards |
4 |
3 |
||||||
Weighted average Series A, B and C common shares outstanding — diluted |
588 |
630 |
||||||
Weighted average Series C convertible preferred stock outstanding — basic and diluted |
27 |
36 |
||||||
Basic net income per share available to Discovery Communications, Inc. Series A, B and C common and Series C convertible preferred stockholders: |
||||||||
Series A, B and C common stockholders |
$ |
0.37 |
$ |
0.42 |
||||
Series C convertible preferred stockholders |
$ |
0.74 |
$ |
0.84 |
||||
Diluted net income per share available to Discovery Communications, Inc. Series A, B and C common and Series C convertible preferred stockholders: |
||||||||
Series A, B and C common stockholders |
$ |
0.37 |
$ |
0.42 |
||||
Series C convertible preferred stockholders |
$ |
0.74 |
$ |
0.84 |
DISCOVERY COMMUNICATIONS, INC. |
|||||||||||||||
SUPPLEMENTAL FINANCIAL DATA |
|||||||||||||||
SELECTED FINANCIAL DETAIL |
|||||||||||||||
(unaudited; in millions, except per share amounts) |
|||||||||||||||
CALCULATION OF ADJUSTED EARNINGS PER DILUTED SHARE |
|||||||||||||||
Three Months Ended March 31, |
|||||||||||||||
2017 |
2016 |
Change |
|||||||||||||
Diluted net income per share available to Discovery Communications, Inc. Series A, B and C common stockholders |
$ |
0.37 |
$ |
0.42 |
$ |
(0.05) |
|||||||||
Amortization of acquisition-related intangible assets (gross) per share |
0.06 |
0.06 |
— |
||||||||||||
Tax effect on amortization of acquisition-related intangible assets per share |
(0.02) |
(0.02) |
— |
||||||||||||
Adjusted earnings per diluted share |
$ |
0.41 |
$ |
0.46 |
$ |
(0.05) |
|||||||||
CALCULATION OF FREE CASH FLOW |
|||||||||||||||
Three Months Ended March 31, |
|||||||||||||||
2017 |
2016 |
Change |
% Change |
||||||||||||
Cash provided by operating activities |
$ |
255 |
$ |
62 |
$ |
193 |
311 |
% |
|||||||
Purchases of property and equipment |
(47) |
(15) |
(32) |
213 |
% |
||||||||||
Free cash flow |
$ |
208 |
$ |
47 |
$ |
161 |
343 |
% |
DISCOVERY COMMUNICATIONS, INC. |
|||||||||||
SUPPLEMENTAL FINANCIAL DATA |
|||||||||||
SELECTED FINANCIAL DETAIL |
|||||||||||
(unaudited; in millions, except per share amounts) |
|||||||||||
BORROWINGS |
|||||||||||
March 31, 2017 |
|||||||||||
5.625% Senior notes, semi-annual interest, due August 2019 |
$ |
411 |
|||||||||
5.05% Senior notes, semi-annual interest, due June 2020 |
789 |
||||||||||
4.375% Senior notes, semi-annual interest, due June 2021 |
650 |
||||||||||
2.375% Senior notes, euro denominated, annual interest, due March 2022 |
322 |
||||||||||
3.30% Senior notes, semi-annual interest, due May 2022 |
500 |
||||||||||
3.25% Senior notes, semi-annual interest, due April 2023 |
350 |
||||||||||
3.80% Senior notes, semi-annual interest, due March 2024 |
450 |
||||||||||
3.45% Senior notes, semi-annual interest, due March 2025 |
300 |
||||||||||
4.90% Senior notes, semi-annual interest, due March 2026 |
700 |
||||||||||
1.90% Senior notes, euro denominated, annual interest, due March 2027 |
644 |
||||||||||
6.35% Senior notes, semi-annual interest, due June 2040 |
850 |
||||||||||
4.95% Senior notes, semi-annual interest, due May 2042 |
500 |
||||||||||
4.875% Senior notes, semi-annual interest, due April 2043 |
850 |
||||||||||
Revolving credit facility |
575 |
||||||||||
Commercial paper |
102 |
||||||||||
Capital lease obligations |
167 |
||||||||||
Total debt |
8,160 |
||||||||||
Unamortized discount and debt issuance costs |
(58) |
||||||||||
Debt, net |
8,102 |
||||||||||
Current portion of debt |
(132) |
||||||||||
Noncurrent portion of debt |
$ |
7,970 |
|||||||||
SHARE COUNT ROLL FORWARD |
Common |
Preferred |
Total |
||||||||
(Basic shares, in millions) |
|||||||||||
Total shares outstanding as of December 31, 2016 |
389.7 |
97.8 |
487.5 |
||||||||
Shares repurchased |
(5.2) |
(1.2) |
(6.4) |
||||||||
Shares issued – share-based compensation |
2.3 |
— |
2.3 |
||||||||
Total shares outstanding as of March 31, 2017 |
386.8 |
96.6 |
483.4 |
||||||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/discovery-communications-reports-first-quarter-2017-results-300454051.html
SOURCE
Corporate Communications : Bill Launder , (212) 548-5693 bill_launder@discovery.com ; Investor Relations : Jackie Burka , (212) 548-5642 , jackie_burka@discovery.com