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News Release

CBS Corporation Reports First Quarter 2017 Results
Revenues of $3.34 Billion
Operating Income of $704 Million
Diluted EPS from Continuing Operations Up 15% to $1.09
Adjusted Diluted EPS from Continuing Operations Up 9% to $1.04

NEW YORK, May 4, 2017 /PRNewswire/ -- CBS Corporation (NYSE: CBS.A and CBS) today reported results for the first quarter of 2017, including record first-quarter adjusted diluted earnings per share ("EPS") from continuing operations.

"Our first-quarter results once again demonstrate the strength of our strategy, which is to diversify our revenue mix as we achieve our long-term financial goals," said Leslie Moonves, Chairman and Chief Executive Officer, CBS Corporation. "Retransmission consent and reverse compensation led the way in Q1, growing 28%. This contributed to a 17% increase in our Company's affiliate and subscription fee revenue, which also benefited from our over-the-top subscription services, CBS All Access and Showtime OTT. In addition, we a had very solid quarter for content licensing and distribution, which was up 16% and is poised for continued strength when several of our hit series enter the syndication cycle later this year. And we continue to add to our content pipeline all the time. In two weeks we will unveil our new primetime schedule on the CBS Television Network, which will include 19 returning series further strengthened by several new shows, the majority of which we will own. We look forward to the upfront marketplace where we're confident advertisers will once again place great value on the #1 television network in an increasingly fragmented media landscape. And longer term, that content becomes even more valuable when we license it across distribution services, both here in the U.S. and internationally as well. As we continue to sharpen our core content focus in the quarters to come, including the impending split-off of our radio business, we will be even better positioned to take advantage of all of the opportunities before us. So there is so much yet to come, and our road map for success is clear."

First Quarter 2017 Results

Revenues were $3.34 billion for the first quarter of 2017, down from $3.59 billion for the first quarter of 2016, when the CBS Television Network broadcast Super Bowl 50 and an additional National Football League ("NFL") playoff game. Excluding these two noncomparable games, first quarter revenues would have been up high-single digits. In addition, affiliate and subscription fee revenues increased 17%, driven by 28% growth in retransmission revenues and fees from CBS Television Network affiliated stations, as well as the Company's digital subscription services. Content licensing and distribution revenues grew 16%, led by higher domestic and international television licensing sales.

Operating income for the first quarter of 2017 was $704 million compared with $765 million for the same prior-year period, as a result of the above-mentioned noncomparable NFL games.

Net earnings from continuing operations were $454 million for the first quarter of 2017 compared with $442 million for the same quarter last year. Net earnings from continuing operations for the first quarter of 2017 included tax benefits from the resolution of certain state income tax matters as well as the exercise of stock options and vesting of RSUs. The Company reported a net loss of $252 million for the first quarter of 2017 compared with net earnings of $473 million for the same prior-year period. The net loss for the first quarter of 2017 included a noncash charge of $715 million in discontinued operations to establish a valuation allowance to adjust the carrying value of CBS Radio to the value indicated by the stock valuation of Entercom Communications Corp. CBS Radio is classified as held for sale and therefore, in accordance with accounting guidance, the valuation allowance will continue to be adjusted based on the trading price of Entercom's stock, which could result in future gains or losses.

Diluted EPS from continuing operations for the first quarter of 2017 was $1.09 compared with $.95 for the same quarter in 2016. Adjusted EPS from continuing operations increased 9% to $1.04, as a result of lower shares outstanding in the first quarter of 2017 because of the Company's ongoing share repurchase program. Adjusted EPS from continuing operations excludes the tax benefit of $22 million, or $.05 per diluted share, from the resolution of the aforementioned state income tax matters. EPS for the first quarter of 2017 was a loss of $.61 as a result of the above-mentioned noncash charge at CBS Radio, compared with EPS of $1.02 for the prior-year period. During the quarter, the Company repurchased 7.6 million of its shares for $500 million.

Details of the discrete items excluded from financial results, along with reconciliations of adjusted results to their most directly comparable GAAP financial measures, are included at the end of this earnings release.

Free Cash Flow

For the first quarter of 2017, operating cash flow from continuing operations was $678 million, which included discretionary pension contributions of $100 million to prefund the Company's qualified plans, compared with operating cash flow from continuing operations of $923 million for the first quarter of 2016, which included CBS's broadcast of Super Bowl 50. Meanwhile, operating cash flow from continuing operations benefited from higher affiliate and subscription fee revenues in the first quarter of 2017. Free cash flow was $651 million for the first quarter of 2017 compared with $889 million for the same prior-year period.

Consolidated and Segment Results (dollars in millions)

The tables below present the Company's revenues by segment and type; operating income (loss) excluding other operating items, net, by segment ("Segment Operating Income"); and depreciation and amortization by segment for the three months ended March 31, 2017, and 2016.


Three Months Ended


March 31,

Revenues by Segment

2017


2016

Entertainment

$

2,347



$

2,587


Cable Networks

543



525


Publishing

161



145


Local Media

409



448


Corporate/Eliminations

(117)



(117)


  Total Revenues

$

3,343



$

3,588











Three Months Ended


March 31,

Revenues by Type

2017


2016

Advertising

$

1,603



$

2,085


Content licensing and distribution

845



729


Affiliate and subscription fees

842



722


Other

53



52


  Total Revenues

$

3,343



$

3,588











Three Months Ended


March 31,

Segment Operating Income (Loss)

2017


2016

Entertainment

$

398



$

449


Cable Networks

248



228


Publishing

14



13


Local Media

123



150


Corporate

(79)



(84)


  Adjusted Operating Income

704



756


Other operating items, net



9


  Total Operating Income

$

704



$

765











Three Months Ended


March 31,

Depreciation and Amortization

2017


2016

Entertainment

$

29



$

30


Cable Networks

6



6


Publishing

1



1


Local Media

11



11


Corporate

8



9


Total Depreciation and Amortization

$

55



$

57


Entertainment (CBS Television Network, CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Interactive, and CBS Films)

Entertainment revenues of $2.35 billion for the first quarter of 2017 decreased 9% from $2.59 billion for the first quarter of 2016. Comparability of revenues was affected by the 2016 broadcast of Super Bowl 50 and an additional NFL playoff game on the CBS Television Network. Affiliate and subscription fees grew 28%, driven by higher station affiliation fees and subscriber growth at CBS All Access. Content licensing and distribution revenues were up 21%, reflecting growth in domestic and international licensing sales.

Entertainment operating income of $398 million for the first quarter of 2017 decreased 11% from $449 million for the same prior-year period, driven by the impact of the above-mentioned noncomparable NFL games, which was partially offset by higher station affiliation fees.

Cable Networks (Showtime Networks, CBS Sports Network, and Smithsonian Networks)

Cable Networks revenues of $543 million for the first quarter of 2017 increased 3% from $525 million for the same prior-year period. The increase was driven by higher affiliate and subscription fees, led by growth of the Showtime digital streaming subscription offering, which was partially offset by the timing of international television licensing sales of Showtime original series.

Cable Networks operating income of $248 million for the first quarter of 2017 increased 9% from $228 million for the same prior-year period, primarily reflecting growth in higher-margin revenues.

Publishing (Simon & Schuster)

Publishing revenues of $161 million for the first quarter of 2017 increased 11% from $145 million for the same prior-year period. The increase was led by growth in print book sales and digital audio sales. Bestselling titles for the first quarter of 2017 included Unshakeable by Tony Robbins and A Man called Ove by Fredrik Backman.

Publishing operating income of $14 million for the first quarter of 2017 grew 8% from $13 million for the same prior-year period, as the increase in revenues was offset by higher production and selling costs.

Local Media (CBS Television Stations and CBS Local Digital Media)

Local Media revenues of $409 million for the first quarter of 2017 decreased 9% from $448 million for the first quarter of 2016, which included CBS's 2016 broadcast of Super Bowl 50 and an additional NFL playoff game. The impact of these items was partially offset by growth in retransmission revenues.

Local Media operating income of $123 million for the first quarter of 2017 decreased 18% from $150 million for the same prior-year period, primarily reflecting the decline in revenues. 

Corporate

Corporate expenses for the first quarter of 2017 decreased $5 million to $79 million from $84 million for the same prior-year period, mainly due to lower employee compensation costs, partly as a result of changes in the Company's stock price.

About CBS Corporation
CBS Corporation (NYSE: CBS.A and CBS) is a mass media company that creates and distributes industry-leading content across a variety of platforms to audiences around the world. The Company has businesses with origins that date back to the dawn of the broadcasting age as well as new ventures that operate on the leading edge of media. CBS owns the most-watched television network in the U.S. and one of the world's largest libraries of entertainment content, making its brand -"the Eye" - one of the most recognized in business. The Company's operations span virtually every field of media and entertainment, including cable, publishing, radio, local TV, film, and interactive and socially responsible media. CBS's businesses include CBS Television Network, The CW (a joint venture between CBS Corporation and Warner Bros. Entertainment), CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Consumer Products, CBS Home Entertainment, CBS Interactive, CBS Films, Showtime Networks, CBS Sports Network, Pop (a joint venture between CBS Corporation and Lionsgate), Smithsonian Networks, Simon & Schuster, CBS Television Stations, CBS Radio and CBS EcoMedia. For more information, go to www.cbscorporation.com.

Cautionary Statement Concerning Forward-Looking Statements
This news release contains both historical and forward-looking statements. All statements 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 content; 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 content; the impact of negotiations or the loss of affiliation agreements or retransmission agreements; the impact of union activity, including possible strikes or work stoppages or the Company's inability to negotiate favorable terms for contract renewals; the ability to achieve the separation of the Company's radio business through a merger of CBS Radio with a subsidiary of Entercom Communications Corp. on the anticipated terms, which are subject to regulatory and Entercom stockholder approvals, an exchange offer and other customary closing conditions, and fluctuations in the market values of Entercom's Class A common stock and the Company's Class B common stock; other domestic and global economic, business, competitive and/or other regulatory factors affecting the Company's businesses generally; and other factors described in the Company's filings with the Securities and Exchange Commission including, but not limited to, the Company's most recent Form 10-K, Form 10-Q and Form 8-Ks. 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 STATEMENTS OF OPERATIONS

(Unaudited; in millions, except per share amounts)



Three Months Ended


March 31,


2017


2016





Revenues

$

3,343



$

3,588


Operating income

704



765


Interest expense

(109)



(100)


Interest income

13



7


Other items, net

1



(3)


Earnings from continuing operations before income taxes

609



669


Provision for income taxes

(138)



(206)


Equity in loss of investee companies, net of tax

(17)



(21)


Net earnings from continuing operations

454



442


Net earnings (loss) from discontinued operations, net of tax

(706)



31


Net earnings (loss)

$

(252)



$

473






Basic net earnings (loss) per common share:




Net earnings from continuing operations

$

1.11



$

.96


Net earnings (loss) from discontinued operations

$

(1.72)



$

.07


Net earnings (loss)

$

(.61)



$

1.03






Diluted net earnings (loss) per common share:




Net earnings from continuing operations

$

1.09



$

.95


Net earnings (loss) from discontinued operations

$

(1.70)



$

.07


Net earnings (loss)

$

(.61)



$

1.02






Weighted average number of common shares outstanding:




Basic

410



459


Diluted

416



464






Dividends per common share

$

.18



$

.15


 

 

CBS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions)



At



At



March 31, 2017


December 31, 2016

Assets








Cash and cash equivalents


$

163





$

598



Receivables, net


3,478





3,314



Programming and other inventory


1,201





1,427



Prepaid expenses and other current assets


520





419



Current assets of discontinued operations


258





305



Total current assets


5,620





6,063



Property and equipment


2,943





2,935



Less accumulated depreciation and amortization


1,723





1,694



Net property and equipment


1,220





1,241



Programming and other inventory


2,546





2,439



Goodwill


4,889





4,864



Intangible assets


2,631





2,633



Other assets


2,539





2,707



Assets of discontinued operations


3,577





4,291



Total Assets


$

23,022





$

24,238











Liabilities and Stockholders' Equity








Accounts payable


$

158





$

148



Participants' share and royalties payable


1,022





1,024



Program rights


477





290



Commercial paper


30





450



Current portion of long-term debt


23





23



Accrued expenses and other current liabilities


1,563





1,618



Current liabilities of discontinued operations


151





155



Total current liabilities


3,424





3,708



Long-term debt


8,900





8,902



Other liabilities


5,359





5,488



Liabilities of discontinued operations


2,454





2,451



Stockholders' Equity


2,885





3,689



Total Liabilities and Stockholders' Equity


$

23,022





$

24,238



 

 

CBS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)



Three Months Ended


March 31,


2017


2016

Operating Activities:




Net earnings (loss)

$

(252)



$

473


Less: Net earnings (loss) from discontinued operations

(706)



31


Net earnings from continuing operations

454



442


Adjustments to reconcile net earnings from continuing operations to net cash flow provided by operating activities from continuing operations:




Depreciation and amortization

55



57


Stock-based compensation

40



39


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

17



22


Change in assets and liabilities, net of investing and financing activities

112



363


Net cash flow provided by operating activities from continuing operations

678



923


Net cash flow provided by operating activities from discontinued operations

41



105


Net cash flow provided by operating activities

719



1,028


Investing Activities:




Acquisitions

(21)



(50)


Capital expenditures

(27)



(34)


Investments in and advances to investee companies

(49)



(32)


Proceeds from dispositions

1



21


Other investing activities

14



(7)


Net cash flow used for investing activities from continuing operations

(82)



(102)


Net cash flow (used for) provided by investing activities from discontinued operations

(7)



4


Net cash flow used for investing activities

(89)



(98)


Financing Activities:




Repayments of short-term debt borrowings, net

(420)




Repayment of senior debentures



(200)


Repayment of debt borrowings of CBS Radio

(3)




Payment of capital lease obligations

(4)



(4)


Payment of contingent consideration

(7)




Dividends

(77)



(73)


Purchase of Company common stock

(531)



(533)


Payment of payroll taxes in lieu of issuing shares for stock-based compensation

(76)



(46)


Proceeds from exercise of stock options

36



6


Excess tax benefit from stock-based compensation



8


Net cash flow used for financing activities

(1,082)



(842)


Net (decrease) increase in cash and cash equivalents

(452)



88


Cash and cash equivalents at beginning of period (includes $24 (2017) and $6 (2016) of discontinued operations cash)

622



323


Cash and cash equivalents at end of period (includes $7 (2017) and $2 (2016) of discontinued operations cash)

$

170



$

411


 

 

CBS CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION

(Unaudited; in millions)


Adjusted Operating Income and Segment Operating Income


The following table sets forth the Company's Adjusted Operating Income for the three months ended March 31, 2017 and 2016. The Company defines "Adjusted Operating Income" as operating income excluding restructuring charges and other operating items, net, each where applicable. For each individual reportable segment Adjusted Operating Income is also known as "Segment Operating Income." The Company presents Segment Operating Income as the primary measure of profit and loss for its reportable segments in accordance with Financial Accounting Standards Board ("FASB") guidance for segment reporting.


The Company uses Adjusted Operating Income (or Segment Operating Income for each segment), as well as Adjusted Operating Income Margin, to, among other things, evaluate the Company's operating performance, to value prospective acquisitions and as one of several components of incentive compensation targets for certain management personnel. These measures are among the primary measures used by management for planning and forecasting of future periods, and they are important indicators of the Company's operational strength and business performance. The Company believes these measures are relevant and useful for investors because they allow investors to view performance in a manner similar to the method used by the Company's management, help improve investors' understanding of the Company's operating performance, and make it easier for investors to compare the Company's results with other companies that have different financing and capital structures or tax rates. In addition, these are among the primary measures used externally by the Company's investors, analysts and industry peers for purposes of valuation and for the comparison of the Company's operating performance to other companies in its industry, and to compare the Company's year-over-year results.


Because Adjusted Operating Income is a measure of performance not calculated in accordance with accounting principles generally accepted in the United States ("GAAP"), it should not be considered in isolation of, or as a substitute for, operating income or net earnings (loss) as an indicator of operating performance. Adjusted Operating Income, 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 Adjusted Operating Income excludes certain financial information that is included in operating income and net earnings (loss), the most directly comparable GAAP financial measures, users of this financial information should consider the types of events and transactions which are excluded. The Company provides the following reconciliation of Adjusted Operating Income to operating income and net earnings (loss).



Three Months Ended March 31,


2017


2016

Adjusted Operating Income

$

704



$

756


Other operating items, net



9


Operating income

704



765


Interest expense

(109)



(100)


Interest income

13



7


Other items, net

1



(3)


Earnings before income taxes

609



669


Provision for income taxes

(138)



(206)


Equity in loss of investee companies, net of tax

(17)



(21)


Net earnings from continuing operations

454



442


Net earnings (loss) from discontinued operations, net of tax

(706)



31


Net earnings (loss)

$

(252)



$

473


 

 

CBS CORPORATION AND SUBSIDIARIES



SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)

(Unaudited; in millions)






Free Cash Flow






The Company defines free cash flow as its net cash flow provided by (used for) operating activities before operating cash flow from discontinued operations and less capital expenditures. The Company's calculation of free cash flow includes capital expenditures because investment in capital expenditures is a use of cash that is directly related to the Company's operations. The Company's net cash flow provided by (used for) operating activities is the most directly comparable GAAP financial measure.




Management believes free cash flow provides investors with an important perspective on the cash available to the Company 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 evaluate the cash generated from the Company's underlying operations in a manner similar to the method used by management. Free cash flow is one of several components of incentive compensation targets for certain management personnel. In addition, free cash flow is a primary measure used externally by the Company's investors, analysts and industry peers for purposes of valuation and comparison of the Company's operating performance to other companies in its industry.




As free cash flow is not a measure calculated in accordance with GAAP, free cash flow should not be considered in isolation of, or as a substitute for, either net cash flow provided by (used for) operating activities as a measure of liquidity or net earnings (loss) as a measure of operating performance. 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 as a measure of liquidity has certain limitations, 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. When comparing free cash flow to net cash flow provided by (used for) operating activities, the most directly comparable GAAP financial measure, users of this financial information should consider the types of events and transactions that are not reflected in free cash flow.




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,






2017


2016





Net cash flow provided by operating activities

$

719



$

1,028






Capital expenditures

(27)



(34)






Exclude operating cash flow from discontinued operations

41



105






Free cash flow

$

651



$

889







The following table presents a summary of the Company's cash flows:

















Three Months Ended






March 31,






2017


2016





Net cash flow provided by operating activities

$

719



$

1,028






Net cash flow used for investing activities

$

(89)



$

(98)






Net cash flow used for financing activities

$

(1,082)



$

(842)




 

 

CBS CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)

(Unaudited; in millions, except per share amounts)


2017 and 2016 Adjusted Results


The following tables reconcile adjusted financial results to their most directly comparable GAAP financial measures. 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 underlying performance of the Company; and makes it easier for investors, analysts, and peers to compare the Company's operating performance to other companies in its industry and to compare the Company's year-over-year results.



Three Months Ended March 31, 2017


Reported

Discrete Tax
Item (a)

Valuation
Allowance (b)


Adjusted


Revenues

$

3,343



$




$




$

3,343














Operating income

$

704



$




$




$

704



Operating income margin (c)

21

%








21

%


Interest expense

(109)









(109)



Interest income

13









13



Other items, net

1









1



Earnings from continuing operations before income taxes

609









609



Provision for income taxes

(138)



(22)







(160)



Effective income tax rate

22.7

%








26.3

%













Equity in loss of investee companies, net of tax

(17)









(17)



Net earnings from continuing operations

454



(22)







432



Net earnings (loss) from discontinued operations, net of tax

(706)






715




9



Net earnings (loss)

$

(252)



$

(22)




$

715




441



Diluted EPS from continuing operations

$

1.09



$

(.05)




$




$

1.04



Diluted EPS

$

(.61)



$

(.05)




$

1.72




$

1.06



Diluted weighted average number of common shares outstanding

416









416





(a)

Reflects a tax benefit from the resolution of certain state income tax matters.

(b)

CBS Radio is classified as held for sale and in accordance with FASB Accounting Standards Codification ("ASC") 360, the Company recorded a noncash charge to establish a valuation allowance to adjust the carrying value of CBS Radio to the value indicated by the stock valuation of Entercom.

(c)

Operating income margin is defined as operating income or Adjusted Operating Income divided by revenues.

 

 

CBS CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)

(Unaudited; in millions, except per share amounts)



Three Months Ended March 31, 2016


Reported


Other
Operating
Items (a)


Write-down of
Investment (b)


Adjusted


Revenues

$

3,588




$





$




$

3,588
















Operating income

$

765




(9)





$




$

756



Operating income margin (c)

21

%










21

%


Interest expense

(100)











(100)



Interest income

7











7



Other items, net

(3)











(3)



Earnings from continuing operations before income taxes

669




(9)








660



Provision for income taxes

(206)




4








(202)



Effective income tax rate

30.8

%










30.6

%















Equity in loss of investee companies, net of tax

(21)








6




(15)



Net earnings from continuing operations

442




(5)





6




443



Net earnings from discontinued operations, net of tax

31











31



Net earnings

$

473




$

(5)





$

6




474



Diluted EPS from continuing operations

$

.95




$

(.01)





$

.01




$

.95



Diluted EPS

$

1.02




$

(.01)





$

.01




$

1.02



Diluted weighted average number of common shares outstanding

464











464





(a)

Reflects a gain on the sale of an internet business in China and a multiyear, retroactive impact of a new operating tax.

(b)

Reflects the write-down of an international television joint venture to its fair value.

(c)

Operating income margin is defined as operating income or Adjusted Operating Income divided by revenues.

 

 

CBS CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION (continued)

(Unaudited; in millions)


CBS Radio Results

The following tables provide reported and adjusted results for CBS Radio, which has been presented as a discontinued operation of the Company for all periods presented, along with a reconciliation of adjusted financial results to reported results. There were no adjustments to CBS Radio's reported results for the three months ended March 31, 2016.








Three Months Ended March 31, 2017





Reported


Valuation
Allowance (a)


Adjusted




Revenues

$

250




$




$

250
















Operating income (loss)

$

(676)




$

715




$

39





Interest expense

(19)







(19)





Earnings (loss) before income taxes

(695)




715




20





Provision for income taxes

(11)







(11)





Net earnings (loss)

$

(706)




$

715




$

9









(a)  CBS Radio is classified as held for sale and in accordance with ASC 360, the 
       Company recorded a noncash charge to establish a valuation allowance to adjust the 
       carrying value of CBS Radio to the value indicated by the stock valuation of Entercom.








Three Months Ended
March 31, 2016





Reported




Revenues


$

262












Operating income


$

56





Provision for income taxes


(25)





Net earnings


$

31



 

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SOURCE CBS Corporation

Press: Gil Schwartz, Senior Executive Vice President and Chief Communications Officer, (212) 975-2121, gdschwartz@cbs.com; Dana McClintock, Executive Vice President of Communications, (212) 975-1077, dlmcclintock@cbs.com; Investors: Adam Townsend, Executive Vice President, Corporate Finance and Investor Relations, (212) 975-5292, adam.townsend@cbs.com; David Bank, Senior Vice President, Investor Relations, (212) 975-6106, david.bank@cbs.com