CBS Corporation (NYSE:CBS.A) Q4 2016 Earnings Conference Call - Final Transcript

Feb 15, 2017 • 04:30 pm ET

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CBS Corporation (NYSE:CBS.A) Q4 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Good day, everyone, and welcome to the CBS Corporation fourth quarter and full-year 2016 earnings teleconference. Today's call is being recorded. At this time I would like to turn the call over to the EVP of Corporate Finance and IR, Mr. Adam Townsend. Please go ahead.

Executive
Adam Townsend

Thank you. Good afternoon, everyone, and welcome to fourth quarter and full-year 2016 earnings call. Joining us with today's remarks are Leslie Moonves, our Chairman and CEO, and Joe Ianniello, our COO. Following Les and Joe's discussion of the company's performance we will open the call up to questions.

Please note that during today's conference call, the fourth quarter and full-year 2016 results and prior period comparisons will be discussed on an adjusted basis, unless otherwise specified. Also I would like to highlight that due to the previously announced Radio transaction we are presenting the Radio segment as discontinued operations, which excludes results of revenue and operating income metrics. This presentation differs from the analyst consensus which still includes Radio in these metrics. However, adjusted EPS is comparable. Reconciliations for non-GAAP financial information related to this call can be found in our earnings release or on our website.

(Forward-Looking Cautionary Statements)

A webcast of this call and the earnings release related to today's presentation can be found on the Investors section of our website at CBSCorporation.com. And with that it is my pleasure to turn the call over to Les.

Executive
Leslie Moonves

Thank you, Adam, and good afternoon, everyone, and thank you for joining us. I'm extremely pleased to tell you that we turned in another great quarter and another terrific year at the CBS Corporation. For the fourth quarter we delivered record profit with operating income up 10% to $733 million and EPS up 21% to $1.11, also a record.

For the year revenue was up 4% to $13.2 billion, an all-time high; operating income was up 12% to $2.9 billion, also an all-time high; and EPS was up 24% to $4.11, breaking $4.00 for the first time in our company's history and marking our 7th straight year and 28th consecutive quarter of EPS growth. This kind of year demonstrates the performance you have come to expect from us and that we continue to deliver day in and day out year after year.

Across every division we are operating with distinction, building our businesses for the future and transforming our company to capitalize on faster growth. Let me tell you just a few of the actions we have taken recently along these lines. First, as you know, we just announced that we are separating our Radio business through a tax-free merger with Entercom. This will reduce our dependency on advertising to just 45% of our total revenue. Remember just a few short years ago that number was greater than 70%. Since then we have told you of our goal to get our revenue ratio down to 50-50 and, like many of our goals, we have surpassed it.

And the 55% of our revenue that is non-advertising