ViacomCBS Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - November 2, 2017

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Exhibit 99.1

CBS RADIO INC.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS


The historical financial statements of CBS Radio Inc. (“CBS Radio”) included herein have been presented on a “carve-out” basis from CBS Corporation’s consolidated financial statements using the historical results of operations, cash flows, assets and liabilities of CBS Radio and include allocations of corporate expenses from CBS Corporation. These allocations reflect significant assumptions, and the financial statements do not fully reflect what CBS Radio’s financial position, results of operations or cash flows would have been had it been a stand-alone company during the periods presented. As a result, historical financial information is not necessarily indicative of CBS Radio’s future results of operations, financial position or cash flows.

-1-

CBS RADIO INC.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except share and per share amounts)
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
 
Revenues
 
$
299.7

 
$
317.0

 
$
855.3

 
$
894.1

Costs and expenses:
 
 
 
 
 
 
 
 
Operating
 
112.9

 
110.0

 
306.8

 
299.0

Selling, general and administrative
 
121.8

 
121.8

 
373.5

 
359.3

Depreciation
 
6.5

 
6.6

 
19.0

 
19.8

Restructuring charges
 
—

 
—

 
7.5

 
—

Total costs and expenses
 
241.2

 
238.4

 
706.8

 
678.1

Operating income
 
58.5

 
78.6

 
148.5

 
216.0

Interest expense
 
(20.7
)
 
—

 
(59.8
)
 
—

Income before income taxes
 
37.8

 
78.6

 
88.7

 
216.0

Provision for income taxes
 
(16.3
)
 
(30.9
)
 
(36.7
)
 
(85.8
)
Net income
 
$
21.5


$
47.7

 
$
52.0


$
130.2

Net income per basic and diluted share
 
$
307,143

 
$
681,429

 
$
742,857

 
$
1,860,000

 
 
 
 
 
 
 
 
 
Weighted average number of basic and diluted
common shares outstanding
 
70

 
70

 
70

 
70





-2-


CBS RADIO INC.
INTERIM CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions, except share and per share amounts)
 
 
 
At
September 30, 2017
 
At
December 31, 2016
Assets
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash
 
 
$
30.1

 
 
 
$
24.3

 
 
Receivables, less allowances of $8.4 (2017) and $6.9 (2016)
 
 
253.9

 
 
 
244.2

 
 
Prepaid income taxes
 
 
13.3

 
 
 
—

 
 
Prepaid expenses
 
 
25.9

 
 
 
22.3

 
 
Other current assets
 
 
17.0

 
 
 
13.8

 
Total current assets
 
 
340.2

 
 
 
304.6

 
Property and equipment, net
 
 
138.5

 
 
 
145.3

 
FCC licenses
 
 
2,545.4

 
 
 
2,545.4

 
Goodwill
 
 
1,331.8

 
 
 
1,331.8

 
Other assets
 
 
3.6

 
 
 
4.1

 
Total Assets
 
 
$
4,359.5

 
 
 
$
4,331.2

 
Liabilities and Stockholder's Equity
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
 
 
$
39.1

 
 
 
$
34.0

 
 
Accrued expenses
 
 
19.6

 
 
 
29.7

 
 
Accrued compensation
 
 
24.4

 
 
 
20.7

 
 
Accrued interest
 
 
12.7

 
 
 
7.5

 
 
Income taxes payable
 
 
—

 
 
 
20.5

 
 
Due to CBS
 
 
4.4

 
 
 
12.3

 
 
Other current liabilities
 
 
18.5

 
 
 
24.0

 
 
Current portion of long-term debt
 
 
10.6

 
 
 
10.6

 
Total current liabilities
 
 
129.3

 
 
 
159.3

 
Long-term debt
 
 
1,354.9

 
 
 
1,334.7

 
Deferred income tax liabilities, net
 
 
923.5

 
 
 
918.2

 
Other liabilities
 
 
58.8

 
 
 
58.6

 
Commitments and contingencies
 
 
 
 
 
 
 
 
Stockholder's Equity:
 
 
 
 
 
 
 
 
Series 1 common stock, par value $.01 per share;
500 shares authorized; 20 shares issued
Series 2 common stock, par value $.01 per share;
500 shares authorized; 50 shares issued
 
 
—

 
 
 
—

 
Additional paid-in-capital
 
 
2,523.6

 
 
 
2,543.0

 
Accumulated deficit
 
 
(630.6
)
 
 
 
(682.6
)
 
Total Stockholder's Equity
 
 
1,893.0

 
 
 
1,860.4

 
Total Liabilities and Stockholder's Equity
 
 
$
4,359.5

 
 
 
$
4,331.2

 



-3-


CBS RADIO INC.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
 
 
Nine Months Ended September 30,
 
 
2017
 
2016
Operating Activities:
 
 
 
 
Net income
 
$
52.0

 
$
130.2

Adjustments to reconcile net income to net cash
flow provided by operating activities:
 
 
 
 
Depreciation
 
19.0

 
19.8

Deferred income tax provision
 
5.4

 
5.6

Stock-based compensation expense
 
10.0

 
10.6

Change in assets and liabilities, net of investing and financing activities
 
 
 
 
(Increase) decrease in receivables
 
(9.8
)
 
25.8

(Increase) decrease in prepaid expenses and other current assets
 
(4.8
)
 
1.4

Decrease in accounts payable and accrued expenses
 
(4.2
)
 
(20.5
)
(Decrease) increase in income taxes
 
(34.3
)
 
.5

Other, net
 
1.6

 
(1.8
)
Net cash flow provided by operating activities
 
34.9

 
171.6

Investing Activities:
 
 
 
 
Capital expenditures
 
(16.3
)
 
(14.0
)
Proceeds from dispositions
 
1.0

 
8.0

Proceeds from sale of investments
 
—

 
3.8

Net cash flow used for investing activities
 
(15.3
)
 
(2.2
)
Financing Activities:
 
 
 
 
Proceeds from debt borrowings
 
40.2

 
—

Repayment of debt borrowings
 
(23.0
)
 
—

Other financing activities
 
(1.5
)
 
—

Net cash distribution to CBS
 
(29.5
)
 
(174.0
)
Net cash flow used for financing activities
 
(13.8
)
 
(174.0
)
Net increase (decrease) in cash
 
5.8

 
(4.6
)
Cash at beginning of period
 
24.3

 
5.8

Cash at end of period
 
$
30.1

 
$
1.2

Supplemental disclosure of cash flow information:
 
 
 
 
Cash paid for income taxes
 
$
65.7

 
$
79.7

Cash paid for interest
 
$
51.6

 
$
—

 
 
 
 
 
Non-cash investing activity:
 
 
 
 
Accruals for unpaid property and equipment additions
 
$
1.7

 
$
—



-4-

ViacomCBS Inc. Reports