CBS Corporation reported results for the first quarter of 2015, including its highest-ever net earnings from continuing operations per diluted share.
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Revenues were $3.5 billion for the first quarter of 2015 compared with $3.57 billion for the same prior-year period.
The quarter was affected by the broadcast of one fewer National Football League (NFL) playoff game on the CBS Television Network and lower advertising revenues at the company's Local Broadcasting segment.
Content licensing and distribution revenues decreased 4%, while affiliate and subscription fees increased 11%, driven by growth in rates.
Operating income was $702 million for the first quarter of 2015 compared with $791 million for the same prior-year period, reflecting a higher investment in sports and entertainment programming.
Net earnings from continuing operations were $394 million for the first quarter of 2015 compared with $462 million for the same prior-year period as a result of the lower operating income.
EPS was a record for the quarter at $.78 compared with $.77 for the same quarter in 2014. Weighted average shares outstanding were 506 million in this year's first quarter, down from 600 million in the prior-year period.
For the first quarter of 2015, free cash flow was $400 million compared with $520 million for the same prior-year period. Operating cash flow from continuing operations was $417 million compared with $548 million for last year's first quarter. This performance was primarily driven by a higher investment in programming.
During January 2015, the company issued $600 million of 3.50% senior notes due 2025 and $600 million of 4.60% senior notes due 2045. The company used the net proceeds for the repurchase of CBS Corp.
Class B Common Stock and repayment of short-term borrowings, including commercial paper. Also during the quarter, the company repurchased 17.2 million shares of its Class B Common Stock for $1.00 billion, at an average cost of $58.07 per share. ■