Liberty Media Corporation Reports Third Quarter 2019 Financial Results
ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Liberty Media Corporation ("Liberty Media" or “Liberty”) (NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) today reported third quarter 2019 results. Headlines include(1):
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Attributed to Liberty SiriusXM Group
-
SiriusXM reported very strong third quarter 2019 financial results
- Third quarter revenue increased to $2.0 billion; pro forma growth of 7%
- Net income of $246 million; diluted EPS of $0.05
- Adjusted EBITDA(2) hit record $657 million, up 12%
- SiriusXM repurchased $464 million of common stock in the third quarter
- SiriusXM increased 2019 revenue, adjusted EBITDA and free cash flow guidance
- Liberty Media’s ownership of SiriusXM stood at 71.5% as of October 29th
- From August 1st through October 31st, Liberty repurchased 1.4 million LSXMK shares at an average price per share of $41.68 and total cash consideration of $60 million
-
SiriusXM reported very strong third quarter 2019 financial results
-
Attributed to Formula One Group
-
FIA World Motor Sport Council unanimously approved Formula 1 technical, sporting and financial regulations effective 2021
- Regulations intended to promote closer racing, more balanced competition and financial sustainability
- 2020 race calendar expanded to 22 races
- Renewed or extended agreements for Italian, Mexican and Spanish races
- Mercedes secured 6th consecutive Constructors’ Championship and Lewis Hamilton won 6th Drivers’ Championship title
-
FIA World Motor Sport Council unanimously approved Formula 1 technical, sporting and financial regulations effective 2021
-
Attributed to Braves Group
- Braves won 2nd straight NL East division title
“SiriusXM continues to deliver and posted another record breaking quarter. The company has made great progress in monetization at Pandora, reaching an all-time high for ad revenue in the quarter,” said Greg Maffei, Liberty Media President and CEO. “Formula 1 continues to show great momentum and is on track to hit 2019 targets, benefitting from foundation building over the last two years, and the Braves secured their second straight NL East division title.”
Unless otherwise noted, the following discussion compares financial information for the three months ended September 30, 2019 to the same period in 2018.
LIBERTY SIRIUSXM GROUP – The following table provides the financial results attributed to Liberty SiriusXM Group for the third quarter of 2019. In the third quarter, approximately $5 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to the Liberty SiriusXM Group.
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3Q18 |
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3Q19 |
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% Change |
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amounts in millions |
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Liberty SiriusXM Group |
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Revenue |
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|||||
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SiriusXM |
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$ |
|
1,468 |
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$ |
|
2,011 |
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37 |
% |
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Total Liberty SiriusXM Group |
|
$ |
|
1,468 |
|
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$ |
|
2,011 |
|
|
|
37 |
% |
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Operating Income (Loss) |
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|
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|||||
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SiriusXM |
|
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465 |
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|
|
459 |
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(1 |
)% |
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Corporate and other |
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(10 |
) |
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(5 |
) |
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50 |
% |
||
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Total Liberty SiriusXM Group |
|
$ |
|
455 |
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$ |
|
454 |
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— |
% |
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Adjusted OIBDA |
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|||||
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SiriusXM |
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587 |
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659 |
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12 |
% |
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Corporate and other |
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(4 |
) |
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(4 |
) |
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— |
% | ||
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Total Liberty SiriusXM Group |
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$ |
|
583 |
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$ |
|
655 |
|
|
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12 |
% |
SiriusXM completed the acquisition of Pandora on February 1, 2019. The financial results above include the results of Pandora for the three months ended September 30, 2019 but not for the three months ended September 30, 2018. Pro forma results for SiriusXM including Pandora for all periods presented, including adjustments related to amortization of acquired intangible assets, depreciation of property and equipment, acquisition costs, fair value of gain or loss on the Pandora investment and associated tax impacts, can be found in Liberty Media’s Form 10-Q for the quarter ended September 30, 2019.
SiriusXM is a separate publicly traded company and additional information about SiriusXM can be obtained through its website and filings with the Securities and Exchange Commission. SiriusXM reported its stand-alone third quarter results on October 31, 2019. For additional detail on SiriusXM’s financial results for the third quarter, please see SiriusXM’s earnings release posted to its Investor Relations website. For presentation purposes on page one of this release, we include the results of SiriusXM, as reported by SiriusXM, without regard to the purchase accounting adjustments applied by us for purposes of our financial statements. Liberty Media believes the presentation of financial results as reported by SiriusXM is useful to investors as the comparability of those results is best understood in the context of SiriusXM's historical financial presentation.
The businesses and assets attributed to Liberty SiriusXM Group consist primarily of Liberty Media’s interest in SiriusXM, which includes its subsidiary Pandora.
FORMULA ONE GROUP – The following table provides the financial results attributed to the Formula One Group for the third quarter of 2019. In the third quarter, the Formula One Group incurred approximately $10 million of corporate level selling, general and administrative expense (including stock-based compensation expense).
“We were thrilled to have the World Motor Sport Council unanimously approve the 2021 regulations, which were the result of input from all stakeholders across the sport of Formula 1. We believe these regulations stay true to the DNA of Formula 1 while seeking to improve the competition and action on the track,” said Chase Carey, Formula 1 Chairman and CEO. “This season continues to produce some spectacular racing and we congratulate Lewis Hamilton and Mercedes on their amazing achievements. We now look forward to the final two races of 2019 and a record 22 race 2020 season, including our new event in Vietnam and our return to the Netherlands.”
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3Q18 |
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3Q19 |
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amounts in millions |
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Formula One Group |
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Revenue |
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Formula 1 |
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$ |
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647 |
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$ |
|
633 |
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Total Formula One Group |
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$ |
|
647 |
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$ |
|
633 |
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Operating Income (Loss) |
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||||
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Formula 1 |
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$ |
|
39 |
|
|
$ |
|
44 |
|
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Corporate and other |
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(8 |
) |
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(12 |
) |
||
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Total Formula One Group |
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$ |
|
31 |
|
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$ |
|
32 |
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Adjusted OIBDA |
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||||
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Formula 1 |
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$ |
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158 |
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$ |
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162 |
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Corporate and other |
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(2 |
) |
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(8 |
) |
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Total Formula One Group |
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$ |
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156 |
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$ |
|
154 |
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The following table provides the operating results of Formula 1 (“F1”).
F1 Operating Results
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3Q18 |
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3Q19 |
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% Change |
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amounts in millions |
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Primary Formula 1 revenue |
$ |
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560 |
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$ |
|
553 |
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(1 |
)% |
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Other Formula 1 revenue |
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87 |
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80 |
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(8 |
)% |
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Total Formula 1 revenue |
$ |
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647 |
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$ |
|
633 |
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(2 |
)% |
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Operating expenses (excluding stock-based compensation included below): |
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Team payments |
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(344 |
) |
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(335 |
) |
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3 |
% |
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Other cost of Formula 1 revenue |
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(107 |
) |
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(99 |
) |
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7 |
% |
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Cost of Formula 1 revenue |
$ |
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(451 |
) |
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$ |
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(434 |
) |
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4 |
% |
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Selling, general and administrative expenses |
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(38 |
) |
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(37 |
) |
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3 |
% |
||
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Adjusted OIBDA |
$ |
|
158 |
|
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$ |
|
162 |
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|
3 |
% |
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Stock-based compensation |
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(4 |
) |
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(5 |
) |
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(25 |
)% |
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Depreciation and Amortization |
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(115 |
) |
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(113 |
) |
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2 |
% |
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Operating income |
$ |
|
39 |
|
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$ |
|
44 |
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13 |
% |
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Number of races in period |
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8 |
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7 |
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Primary F1 revenue is comprised of (i) race promotion fees, (ii) broadcasting fees and (iii) advertising and sponsorship fees. Results in the third quarter of 2019 were unfavorably impacted by the timing of the 2019 race calendar, with seven races taking place in the third quarter of 2019 compared to eight races in the third quarter of 2018.
Race promotion revenue decreased due to one less race held in the third quarter of 2019 and the impact of the renewal terms of one contract. Broadcast revenue increased primarily due to contractual rate increases, partially offset by the lower proportionate recognition of season-based income during the quarter (7/21 races took place in the third quarter of 2019 compared to 8/21 in the third quarter of 2018). Advertising and sponsorship revenue increased due to revenue from new sponsorship agreements. Other F1 revenue decreased in the third quarter primarily due to one less race held in the third quarter of 2019 and non-recurring television production fees in the prior year period.
Operating income and Adjusted OIBDA(2) increased in the third quarter as the revenue decline was more than offset by reduced costs. Team payments were lower in the third quarter driven by the pro rata recognition of such payments across the race season, and other cost of Formula 1 revenue was lower due to one less race in the quarter, which drove decreases in FIA regulatory fees, advertising and sponsorship, hospitality and other event based costs. Selling, general and administrative expense was relatively flat in the quarter.
F1’s total net debt to covenant OIBDA ratio, as defined in F1’s credit facilities for covenant calculations, was 5.3x as of September 30, 2019, as compared to a maximum allowable leverage ratio of 8.25x.
The businesses and assets attributed to the Formula One Group consist of Liberty Media’s subsidiary F1, its interest in Live Nation, minority equity investments and an intergroup interest in the Braves Group. There are approximately 9.1 million notional shares of the Braves Group underlying the Formula One Group’s 15.1% intergroup interest as of October 31, 2019.
BRAVES GROUP - The following table provides the financial results attributed to the Braves Group for the third quarter of 2019. In the third quarter, approximately $2 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to the Braves Group.
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3Q18 |
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3Q19 |
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amounts in millions |
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Braves Group |
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Revenue |
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Corporate and other |
|
$ |
200 |
|
$ |
212 |
|
Operating Income |
|
|
|
|
|
|
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Corporate and other |
|
$ |
45 |
|
$ |
21 |
|
Adjusted OIBDA |
|
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|
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Corporate and other |
|
$ |
72 |
|
$ |
45 |
The following table provides the operating results of Braves Holdings, LLC (“Braves”).
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3Q18 |
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3Q19 |
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% Change |
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amounts in millions |
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Baseball revenue |
$ |
|
190 |
|
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$ |
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203 |
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7 |
% |
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Development revenue |
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10 |
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9 |
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(10 |
)% |
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Total revenue |
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200 |
|
|
|
212 |
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|
6 |
% |
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Operating expenses (excluding stock-based compensation included below): |
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Other operating expenses |
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(105 |
) |
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|
(145 |
) |
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(38 |
)% |
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Selling, general and administrative expenses |
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(21 |
) |
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(21 |
) |
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— |
% | ||
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Adjusted OIBDA |
$ |
|
74 |
|
|
$ |
|
46 |
|
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(38 |
)% |
|
Stock-based compensation |
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(4 |
) |
|
|
(3 |
) |
|
25 |
% |
||
|
Depreciation and Amortization |
|
(24 |
) |
|
|
(20 |
) |
|
17 |
% |
||
|
Operating income |
$ |
|
46 |
|
|
$ |
|
23 |
|
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(50 |
)% |
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|
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Number of home games in period |
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41 |
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|
40 |
|
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Baseball revenue per home game |
$ |
|
4.6 |
|
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$ |
|
5.1 |
|
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|
Baseball revenue is comprised of (i) ballpark operations, (ii) local and national broadcast rights and (iii) licensing and other shared MLB revenue streams. Development revenue is derived from the Battery Atlanta mixed-use facilities and primarily includes rental income.
Baseball revenue per home game grew in the third quarter of 2019 primarily due to increased ticket and concession sales. Development revenue was modestly lower in the third quarter of 2019 as a result of the sale of the residential development in October 2018 and therefore the loss of its revenue in the current quarter. Operating income and Adjusted OIBDA declined in the third quarter of 2019, as revenue growth was more than offset by elevated operating expenses. The increase in operating expenses was primarily driven by higher player salaries, and to a lesser extent elevated costs due to the opening of the new spring training facility, scouting expenses, increased obligations under MLB’s revenue sharing plan and stadium operation costs driven by concessions.
The Formula One Group holds an approximate 15.1% intergroup interest in the Braves Group as of October 31, 2019. Assuming the issuance of the shares underlying the intergroup interest held by the Formula One Group, the Braves Group outstanding share count as of October 31, 2019 would have been 60 million.
The businesses and assets attributed to the Braves Group consist primarily of Liberty Media’s subsidiary the Braves, which indirectly owns the Atlanta Braves Major League Baseball Club, six minor league baseball clubs and certain assets and liabilities associated with the Braves’ ballpark and mixed-use development project.
Share Repurchases
From August 1, 2019 through October 31, 2019, Liberty Media repurchased approximately 1.4 million Series C Liberty SiriusXM shares (Nasdaq: LSXMK) at an average cost per share of $41.68 for total cash consideration of $60 million. The total remaining repurchase authorization for Liberty Media is approximately $419 million and can be applied to repurchases of Series A and Series C shares of any of the Liberty Media Corporation tracking stocks.
FOOTNOTES
| 1) |
Liberty Media's President and CEO, Greg Maffei, will discuss these headlines and other matters on Liberty Media's earnings conference call which will begin at 10:00 a.m. (E.S.T.) on November 11, 2019. For information regarding how to access the call, please see “Important Notice” later in this document. |
|
| 2) |
For definitions of Adjusted OIBDA (as defined by Liberty Media) and adjusted EBITDA (as defined by SiriusXM) and applicable reconciliations see the accompanying schedules. |
NOTES
The following financial information with respect to Liberty Media's equity affiliates and available for sale securities is intended to supplement Liberty Media's condensed consolidated balance sheet and statement of operations to be included in its Form 10-Q for the period ended September 30, 2019.
Fair Value of Corporate Public Holdings
|
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(amounts in millions) |
|
6/30/2019 |
|
9/30/2019 |
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||
|
Liberty SiriusXM Group |
|
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|
|
|
|
|
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iHeart(1) |
|
$ |
105 |
|
$ |
105 |
|
|
Total Liberty SiriusXM Group |
|
$ |
105 |
|
$ |
105 |
|
|
Formula One Group |
|
|
|
|
|
|
|
|
Live Nation Investment(2) |
|
$ |
4,614 |
|
|
4,620 |
|
|
Other Public Holdings(3) |
|
|
263 |
|
|
288 |
|
|
Total Formula One Group |
|
$ |
4,877 |
|
$ |
4,908 |
|
|
Braves Group |
|
|
N/A |
|
|
N/A |
|
|
Total Liberty Media |
|
$ |
4,982 |
|
$ |
5,013 |
|
| _____________________________ | ||
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(1) |
Includes fair value of iHeart shares and warrants which are included in other long-term assets. |
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(2) |
Represents the fair value of the equity investment attributed to Formula One Group. In accordance with GAAP, Liberty Media accounts for its investment in the equity of Live Nation using the equity method of accounting and includes it in its condensed consolidated balance sheet at $756 million and $792 million as of June 30, 2019 and September 30, 2019, respectively. |
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(3) |
Represents the carrying value of other public holdings which are accounted for at fair value. Excludes Braves Group intergroup interest. |
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Cash and Debt
The following presentation is provided to separately identify cash and liquid investments and debt information.
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(amounts in millions) |
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6/30/2019 |
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9/30/2019 |
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Cash, Cash Equivalents and Restricted Cash Attributable to: |
|
|
|
|
|
|
|
||||
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Liberty SiriusXM Group(1)(2) |
|
$ |
|
248 |
|
|
$ |
|
144 |
|
|
|
Formula One Group(3) |
|
|
334 |
|
|
|
419 |
|
|
||
|
Braves Group(2) |
|
|
169 |
|
|
|
210 |
|
|
||
|
Total Consolidated Cash, Cash Equivalents and Restricted Cash (GAAP) |
|
$ |
|
751 |
|
|
$ |
|
773 |
|
|
|
|
|
|
|
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|
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Debt: |
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|
|
|
|
|
|
||||
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SiriusXM senior notes(4) |
|
$ |
|
7,750 |
|
|
$ |
|
7,750 |
|
|
|
Pandora convertible senior notes |
|
|
194 |
|
|
|
194 |
|
|
||
|
2.125% exchangeable senior debentures due 2048(5) |
|
|
400 |
|
|
|
400 |
|
|
||
|
Margin loans |
|
|
475 |
|
|
|
550 |
|
|
||
|
Other subsidiary debt(6) |
|
|
— |
|
|
65 |
|
|
|||
|
Total Attributed Liberty SiriusXM Group Debt |
|
$ |
|
8,819 |
|
|
$ |
|
8,959 |
|
|
|
Unamortized discount, fair market value adjustment and deferred loan costs |
|
|
(116 |
) |
|
|
(102 |
) |
|
||
|
Total Attributed Liberty SiriusXM Group Debt (GAAP) |
|
$ |
|
8,703 |
|
|
$ |
|
8,857 |
|
|
|
|
|
|
|
|
|
|
|
||||
|
1.375% cash convertible notes due 2023(5) |
|
|
1,000 |
|
|
|
1,000 |
|
|
||
|
1% cash convertible notes due 2023(5) |
|
|
450 |
|
|
|
450 |
|
|
||
|
2.25% exchangeable senior debentures due 2046(5) |
|
|
211 |
|
|
|
210 |
|
|
||
|
2.25% exchangeable senior debentures due 2048(5) |
|
|
385 |
|
|
|
385 |
|
|
||
|
Formula 1 bank loan |
|
|
2,902 |
|
|
|
2,902 |
|
|
||
|
Other corporate level debt |
|
|
32 |
|
|
|
32 |
|
|
||
|
Total Attributed Formula One Group Debt |
|
$ |
|
4,980 |
|
|
$ |
|
4,979 |
|
|
|
Fair market value adjustment |
|
|
276 |
|
|
|
350 |
|
|
||
|
Total Attributed Formula One Group Debt (GAAP) |
|
$ |
|
5,256 |
|
|
$ |
|
5,329 |
|
|
|
Formula 1 leverage(7) |
|
|
5.6x |
|
|
5.3x |
|
||||
|
|
|
|
|
|
|
|
|
||||
|
Atlanta Braves debt |
|
|
470 |
|
|
|
540 |
|
|
||
|
Total Attributed Braves Group Debt |
|
$ |
|
470 |
|
|
$ |
|
540 |
|
|
|
Deferred loan costs |
|
|
(5 |
) |
|
|
(5 |
) |
|
||
|
Total Attributed Braves Group Debt (GAAP) |
|
$ |
|
465 |
|
|
$ |
|
535 |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total Liberty Media Corporation Debt (GAAP) |
|
$ |
|
14,424 |
|
|
$ |
|
14,721 |
|
|
| _____________________________ | ||
| (1) |
Includes $227 million and $90 million of cash, liquid investments and restricted cash held at SiriusXM as of June 30, 2019 and September 30, 2019, respectively. |
|
| (2) |
Includes restricted cash held in reserves pursuant to the terms of various financial obligations. |
|
| (3) |
Includes $276 million and $354 million of cash and liquid investments held at Formula 1 as of June 30, 2019 and September 30, 2019, respectively. |
|
| (4) |
Outstanding principal amount of Senior Notes with no reduction for the net unamortized discount. |
|
| (5) |
Face amount of the cash convertible notes and exchangeable debentures with no fair market value adjustment. |
|
| (6) |
Includes SiriusXM revolving credit facility. |
|
| (7) |
Net debt to covenant OIBDA ratio of F1 operating business as defined in F1’s credit facilities for covenant calculations. |
|
Total cash, liquid investments and restricted cash attributed to Liberty SiriusXM Group decreased $104 million in the third quarter as cash from operations at SiriusXM and net borrowings were more than offset by return of capital at both Liberty SiriusXM Group and SiriusXM and capital expenditures. Included in the cash, liquid investments and restricted cash balance attributed to Liberty SiriusXM Group at September 30, 2019 is $90 million held at SiriusXM. Although SiriusXM is a consolidated subsidiary, it is a separate public company with a significant non-controlling interest, therefore Liberty Media does not have unfettered access to SiriusXM’s cash balances. Liberty SiriusXM Group received $38 million of dividends from SiriusXM during the quarter.
Total debt attributed to Liberty SiriusXM Group increased $140 million during the quarter primarily as a result of additional borrowing under Liberty SiriusXM’s margin loan and SiriusXM’s revolving credit facility.
Total cash and liquid investments attributed to the Formula One Group increased $85 million during the quarter primarily due to cash from operations at Formula 1. Total debt at Formula One Group was flat in the quarter.
Total cash, liquid investments and restricted cash attributed to the Braves Group increased $41 million during the quarter as cash from operations at the Braves and additional borrowing more than offset capital expenditures related to the mixed-use development. Total debt attributed to the Braves Group increased $70 million during the quarter primarily due to draw downs on the team revolver and spring training credit facility to fund regular baseball operating activities and spring training facility capital expenditures. The second phase of the Battery Atlanta mixed-use development is expected to cost approximately $200 million, which the Braves and affiliated entities expect to fund through a mix of approximately $55 million in equity and approximately $145 million in debt.
Important Notice: Liberty Media Corporation (Nasdaq: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) President and CEO, Greg Maffei, will discuss Liberty Media's earnings release on a conference call which will begin at 10:00 a.m. (E.S.T.) on November 11, 2019. The call can be accessed by dialing (888) 254-3590 or (323) 994-2093, passcode 3845573 at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to http://www.libertymedia.com/events. Links to this press release will also be available on the Liberty Media website.
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, future financial prospects, Formula 1’s race calendar and new races, the expected benefits to Formula 1 of the 2021 regulations, the Battery Atlanta, the continuation of our stock repurchase plan and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of new products or services, regulatory matters affecting our businesses, the unfavorable outcome of pending or future litigation, the failure to realize benefits of acquisitions, rapid technological and industry change, continued access to capital on terms acceptable to Liberty Media, and changes in law, including consumer protection laws, and their enforcement and market conditions conducive to stock repurchases. These forward-looking statements speak only as of the date of this press release, and Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Liberty Media, including the most recent Forms 10-K and 10-Q, for additional information about Liberty Media and about the risks and uncertainties related to Liberty Media's business which may affect the statements made in this press release.
|
LIBERTY MEDIA CORPORATION |
|||||||||||||||||
|
BALANCE SHEET INFORMATION |
|||||||||||||||||
|
September 30, 2019 (unaudited) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Attributed |
|
|
|
|
|||||||||||
|
|
|
Liberty |
|
|
|
Formula |
|
|
|
|
|||||||
|
|
|
SiriusXM |
|
Braves |
|
One |
|
Intergroup |
|
Consolidated |
|||||||
|
|
|
Group |
|
Group |
|
Group |
|
Eliminations |
|
Liberty |
|||||||
|
|
|
amounts in millions |
|||||||||||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cash and cash equivalents |
|
$ |
|
133 |
|
|
142 |
|
|
419 |
|
|
— |
|
694 |
|
|
|
Trade and other receivables, net |
|
|
632 |
|
|
49 |
|
|
97 |
|
|
— |
|
778 |
|
||
|
Other current assets |
|
|
225 |
|
|
102 |
|
|
137 |
|
|
— |
|
464 |
|
||
|
Total current assets |
|
|
990 |
|
|
293 |
|
|
653 |
|
|
— |
|
1,936 |
|
||
|
Intergroup interest in the Braves Group |
|
|
— |
|
— |
|
252 |
|
|
(252 |
) |
|
— |
||||
|
Investments in affiliates, accounted for using the equity method |
|
|
638 |
|
|
104 |
|
|
956 |
|
|
— |
|
1,698 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Property and equipment, at cost |
|
|
2,639 |
|
|
883 |
|
|
192 |
|
|
— |
|
3,714 |
|
||
|
Accumulated depreciation |
|
|
(1,275 |
) |
|
(117 |
) |
|
(92 |
) |
|
— |
|
(1,484 |
) |
||
|
|
|
|
1,364 |
|
|
766 |
|
|
100 |
|
|
— |
|
2,230 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Intangible assets not subject to amortization |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Goodwill |
|
|
15,816 |
|
|
180 |
|
|
3,956 |
|
|
— |
|
19,952 |
|
||
|
FCC licenses |
|
|
8,600 |
|
|
— |
|
— |
|
— |
|
8,600 |
|
||||
|
Other |
|
|
1,262 |
|
|
143 |
|
|
— |
|
— |
|
1,405 |
|
|||
|
|
|
|
25,678 |
|
|
323 |
|
|
3,956 |
|
|
— |
|
29,957 |
|
||
|
Intangible assets subject to amortization, net |
|
|
1,632 |
|
|
35 |
|
|
4,412 |
|
|
— |
|
6,079 |
|
||
|
Other assets |
|
|
702 |
|
|
73 |
|
|
1,032 |
|
|
(62 |
) |
|
1,745 |
|
|
|
Total assets |
|
$ |
|
31,004 |
|
|
1,594 |
|
|
11,361 |
|
|
(314 |
) |
|
43,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Intergroup payable (receivable) |
|
$ |
|
4 |
|
|
(7 |
) |
|
3 |
|
|
— |
|
— |
||
|
Accounts payable and accrued liabilities |
|
|
1,240 |
|
|
57 |
|
|
240 |
|
|
— |
|
1,537 |
|
||
|
Deferred revenue |
|
|
1,938 |
|
|
52 |
|
|
245 |
|
|
— |
|
2,235 |
|
||
|
Other current liabilities |
|
|
74 |
|
|
17 |
|
|
19 |
|
|
— |
|
110 |
|
||
|
Total current liabilities |
|
|
3,256 |
|
|
119 |
|
|
507 |
|
|
— |
|
3,882 |
|
||
|
Long-term debt |
|
|
8,857 |
|
|
521 |
|
|
5,329 |
|
|
— |
|
14,707 |
|
||
|
Deferred income tax liabilities |
|
|
1,856 |
|
|
78 |
|
|
— |
|
(62 |
) |
|
1,872 |
|
||
|
Redeemable intergroup interest |
|
|
— |
|
252 |
|
|
— |
|
(252 |
) |
|
— |
||||
|
Other liabilities |
|
|
634 |
|
|
206 |
|
|
166 |
|
|
— |
|
1,006 |
|
||
|
Total liabilities |
|
|
14,603 |
|
|
1,176 |
|
|
6,002 |
|
|
(314 |
) |
|
21,467 |
|
|
|
Equity / Attributed net assets |
|
|
10,735 |
|
|
426 |
|
|
5,356 |
|
|
— |
|
16,517 |
|
||
|
Noncontrolling interests in equity of subsidiaries |
|
|
5,666 |
|
|
(8 |
) |
|
3 |
|
|
— |
|
5,661 |
|
||
|
Total liabilities and equity |
|
$ |
|
31,004 |
|
|
1,594 |
|
|
11,361 |
|
|
(314 |
) |
|
43,645 |
|
|
LIBERTY MEDIA CORPORATION |
||||||||||||||
|
STATEMENT OF OPERATIONS |
||||||||||||||
|
Three months ended September 30, 2019 (unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Attributed |
|
|
||||||||||
|
|
|
Liberty |
|
|
|
Formula |
|
|
||||||
|
|
|
SiriusXM |
|
Braves |
|
One |
|
Consolidated |
||||||
|
|
|
Group |
|
Group |
|
Group |
|
Liberty |
||||||
|
|
|
amounts in millions |
||||||||||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|||||
|
SIRIUS XM Holdings revenue |
|
$ |
|
2,011 |
|
|
— |
|
— |
|
2,011 |
|
||
|
Formula 1 revenue |
|
|
— |
|
— |
|
633 |
|
|
633 |
|
|||
|
Other revenue |
|
|
— |
|
212 |
|
|
— |
|
212 |
|
|||
|
Total revenue |
|
|
2,011 |
|
|
212 |
|
|
633 |
|
|
2,856 |
|
|
|
Operating costs and expenses, including stock-based compensation: |
|
|
|
|
|
|
|
|
|
|||||
|
Cost of services (exclusive of depreciation shown separately below): |
|
|
|
|
|
|
|
|
|
|||||
|
Revenue share and royalties |
|
|
592 |
|
|
— |
|
— |
|
592 |
|
|||
|
Programming and content(1) |
|
|
116 |
|
|
— |
|
— |
|
116 |
|
|||
|
Customer service and billing(1) |
|
|
120 |
|
|
— |
|
— |
|
120 |
|
|||
|
Other(1) |
|
|
52 |
|
|
— |
|
— |
|
52 |
|
|||
|
Cost of Formula 1 revenue |
|
|
— |
|
— |
|
434 |
|
|
434 |
|
|||
|
Subscriber acquisition costs |
|
|
101 |
|
|
— |
|
— |
|
101 |
|
|||
|
Other operating expenses(1) |
|
|
78 |
|
|
145 |
|
|
— |
|
223 |
|
||
|
Selling, general and administrative(1) |
|
|
363 |
|
|
26 |
|
|
51 |
|
|
440 |
|
|
|
Acquisition and other related costs |
|
|
— |
|
— |
|
— |
|
— |
|||||
|
Depreciation and amortization |
|
|
135 |
|
|
20 |
|
|
116 |
|
|
271 |
|
|
|
|
|
|
1,557 |
|
|
191 |
|
|
601 |
|
|
2,349 |
|
|
|
Operating income (loss) |
|
|
454 |
|
|
21 |
|
|
32 |
|
|
507 |
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|||||
|
Interest expense |
|
|
(115 |
) |
|
(6 |
) |
|
(48 |
) |
|
(169 |
) |
|
|
Share of earnings (losses) of affiliates, net |
|
|
(7 |
) |
|
4 |
|
|
58 |
|
|
55 |
|
|
|
Realized and unrealized gains (losses) on financial instruments, net |
|
|
(10 |
) |
|
(2 |
) |
|
26 |
|
|
14 |
|
|
|
Unrealized gains (losses) on intergroup interest |
|
|
— |
|
2 |
|
|
(2 |
) |
|
— |
|||
|
Other, net |
|
|
(51 |
) |
|
— |
|
4 |
|
|
(47 |
) |
||
|
|
|
|
(183 |
) |
|
(2 |
) |
|
38 |
|
|
(147 |
) |
|
|
Earnings (loss) from continuing operations before income taxes |
|
|
271 |
|
|
19 |
|
|
70 |
|
|
360 |
|
|
|
Income tax (expense) benefit |
|
|
(63 |
) |
|
(7 |
) |
|
(28 |
) |
|
(98 |
) |
|
|
Net earnings (loss) |
|
|
208 |
|
|
12 |
|
|
42 |
|
|
262 |
|
|
|
Less net earnings (loss) attributable to the noncontrolling interests |
|
|
68 |
|
|
— |
|
1 |
|
|
69 |
|
||
|
Net earnings (loss) attributable to Liberty stockholders |
|
$ |
|
140 |
|
|
12 |
|
|
41 |
|
|
193 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(1) Includes stock-based compensation expense as follows: |
|
|
|
|
|
|
|
|
|
|||||
|
Programming and content |
|
|
8 |
|
|
— |
|
— |
|
8 |
|
|||
|
Customer service and billing |
|
|
1 |
|
|
— |
|
— |
|
1 |
|
|||
|
Other |
|
|
1 |
|
|
— |
|
— |
|
1 |
|
|||
|
Other operating expenses |
|
|
15 |
|
|
— |
|
— |
|
15 |
|
|||
|
Selling, general and administrative |
|
|
41 |
|
|
4 |
|
|
6 |
|
|
51 |
|
|
|
Stock compensation expense |
|
$ |
|
66 |
|
|
4 |
|
|
6 |
|
|
76 |
|
|
LIBERTY MEDIA CORPORATION |
||||||||||||||
|
STATEMENT OF OPERATIONS |
||||||||||||||
|
Three months ended September 30, 2018 (unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Attributed |
|
|
||||||||||
|
|
|
Liberty |
|
|
|
Formula |
|
|
||||||
|
|
|
SiriusXM |
|
Braves |
|
One |
|
Consolidated |
||||||
|
|
|
Group |
|
Group |
|
Group |
|
Liberty |
||||||
|
|
|
amounts in millions |
||||||||||||
|
Revenue: |
|
|
|
|
|
|
|
|
|
|||||
|
SIRIUS XM Holdings revenue |
|
$ |
|
1,468 |
|
|
— |
|
— |
|
1,468 |
|
||
|
Formula 1 revenue |
|
|
— |
|
— |
|
647 |
|
|
647 |
|
|||
|
Other revenue |
|
|
— |
|
200 |
|
|
— |
|
200 |
|
|||
|
Total revenue |
|
|
1,468 |
|
|
200 |
|
|
647 |
|
|
2,315 |
|
|
|
Operating costs and expenses, including stock-based compensation: |
|
|
|
|
|
|
|
|
|
|||||
|
Cost of services (exclusive of depreciation shown separately below): |
|
|
|
|
|
|
|
|
|
|||||
|
Revenue share and royalties |
|
|
343 |
|
|
— |
|
— |
|
343 |
|
|||
|
Programming and content(1) |
|
|
97 |
|
|
— |
|
— |
|
97 |
|
|||
|
Customer service and billing(1) |
|
|
95 |
|
|
— |
|
— |
|
95 |
|
|||
|
Other(1) |
|
|
30 |
|
|
— |
|
— |
|
30 |
|
|||
|
Cost of Formula 1 revenue |
|
|
— |
|
— |
|
450 |
|
|
450 |
|
|||
|
Subscriber acquisition costs |
|
|
110 |
|
|
— |
|
— |
|
110 |
|
|||
|
Other operating expenses(1) |
|
|
31 |
|
|
106 |
|
|
— |
|
137 |
|
||
|
Selling, general and administrative(1) |
|
|
214 |
|
|
26 |
|
|
48 |
|
|
288 |
|
|
|
Depreciation and amortization |
|
|
93 |
|
|
23 |
|
|
118 |
|
|
234 |
|
|
|
|
|
|
1,013 |
|
|
155 |
|
|
616 |
|
|
1,784 |
|
|
|
Operating income (loss) |
|
|
455 |
|
|
45 |
|
|
31 |
|
|
531 |
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|||||
|
Interest expense |
|
|
(95 |
) |
|
(6 |
) |
|
(49 |
) |
|
(150 |
) |
|
|
Share of earnings (losses) of affiliates, net |
|
|
(2 |
) |
|
2 |
|
|
58 |
|
|
58 |
|
|
|
Realized and unrealized gains (losses) on financial instruments, net |
|
|
(51 |
) |
|
1 |
|
|
19 |
|
|
(31 |
) |
|
|
Unrealized gains (losses) on intergroup interest |
|
|
— |
|
(13 |
) |
|
13 |
|
|
— |
|||
|
Other, net |
|
|
6 |
|
|
— |
|
4 |
|
|
10 |
|
||
|
|
|
|
(142 |
) |
|
(16 |
) |
|
45 |
|
|
(113 |
) |
|
|
Earnings (loss) from continuing operations before income taxes |
|
|
313 |
|
|
29 |
|
|
76 |
|
|
418 |
|
|
|
Income tax (expense) benefit |
|
|
(30 |
) |
|
12 |
|
|
(34 |
) |
|
(52 |
) |
|
|
Net earnings (loss) |
|
|
283 |
|
|
41 |
|
|
42 |
|
|
366 |
|
|
|
Less net earnings (loss) attributable to the noncontrolling interests |
|
|
98 |
|
|
— |
|
— |
|
98 |
|
|||
|
Net earnings (loss) attributable to Liberty stockholders |
|
$ |
|
185 |
|
|
41 |
|
|
42 |
|
|
268 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(1) Includes stock-based compensation expense as follows: |
|
|
|
|
|
|
|
|
|
|||||
|
Programming and content |
|
|
3 |
|
|
— |
|
— |
|
3 |
|
|||
|
Customer service and billing |
|
|
1 |
|
|
— |
|
— |
|
1 |
|
|||
|
Other |
|
|
1 |
|
|
— |
|
— |
|
1 |
|
|||
|
Other operating expenses |
|
|
5 |
|
|
— |
|
— |
|
5 |
|
|||
|
Selling, general and administrative |
|
|
25 |
|
|
4 |
|
|
7 |
|
|
36 |
|
|
|
Stock compensation expense |
|
$ |
|
35 |
|
|
4 |
|
|
7 |
|
|
46 |
|
|
LIBERTY MEDIA CORPORATION |
||||||||||||||
|
STATEMENT OF CASH FLOWS INFORMATION |
||||||||||||||
|
Nine months ended September 30, 2019 (unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Attributed |
|
|
||||||||||
|
|
|
Liberty |
|
|
|
Formula |
|
|
||||||
|
|
|
SiriusXM |
|
Braves |
|
One |
|
Consolidated |
||||||
|
|
|
Group |
|
Group |
|
Group |
|
Liberty |
||||||
|
|
|
amounts in millions |
||||||||||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|||||
|
Net earnings (loss) |
|
$ |
|
543 |
|
|
(33 |
) |
|
(183 |
) |
|
327 |
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation and amortization |
|
|
396 |
|
|
54 |
|
|
340 |
|
|
790 |
|
|
|
Stock-based compensation |
|
|
204 |
|
|
13 |
|
|
21 |
|
|
238 |
|
|
|
Share of (earnings) loss of affiliates, net |
|
|
18 |
|
|
(13 |
) |
|
(74 |
) |
|
(69 |
) |
|
|
Unrealized (gains) losses on intergroup interest, net |
|
|
— |
|
26 |
|
|
(26 |
) |
|
— |
|||
|
Realized and unrealized (gains) losses on financial instruments, net |
|
|
(6 |
) |
|
6 |
|
|
171 |
|
|
171 |
|
|
|
Noncash interest expense (benefit) |
|
|
5 |
|
|
1 |
|
|
1 |
|
|
7 |
|
|
|
Deferred income tax expense (benefit) |
|
|
232 |
|
|
7 |
|
|
(43 |
) |
|
196 |
|
|
|
Intergroup tax allocation |
|
|
1 |
|
|
(6 |
) |
|
5 |
|
|
— |
||
|
Intergroup tax (payments) receipts |
|
|
(2 |
) |
|
22 |
|
|
(20 |
) |
|
— |
||
|
Other charges (credits), net |
|
|
58 |
|
|
8 |
|
|
(5 |
) |
|
61 |
|
|
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|||||
|
Current and other assets |
|
|
14 |
|
|
(37 |
) |
|
(38 |
) |
|
(61 |
) |
|
|
Payables and other liabilities |
|
|
(26 |
) |
|
9 |
|
|
127 |
|
|
110 |
|
|
|
Net cash provided (used) by operating activities |
|
|
1,437 |
|
|
57 |
|
|
276 |
|
|
1,770 |
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|||||
|
Investments in equity method affiliates and debt and equity securities |
|
|
(14 |
) |
|
(4 |
) |
|
(7 |
) |
|
(25 |
) |
|
|
Cash proceeds from sale of investments |
|
|
373 |
|
|
— |
|
16 |
|
|
389 |
|
||
|
Cash paid for acquisitions, net of cash acquired |
|
|
313 |
|
|
— |
|
— |
|
313 |
|
|||
|
Capital expended for property and equipment |
|
|
(239 |
) |
|
(72 |
) |
|
(27 |
) |
|
(338 |
) |
|
|
Sales of short term investments and other marketable securities |
|
|
73 |
|
|
— |
|
— |
|
73 |
|
|||
|
Other investing activities, net |
|
|
2 |
|
|
— |
|
(4 |
) |
|
(2 |
) |
||
|
Net cash provided (used) by investing activities |
|
|
508 |
|
|
(76 |
) |
|
(22 |
) |
|
410 |
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|||||
|
Borrowings of debt |
|
|
4,943 |
|
|
75 |
|
|
— |
|
5,018 |
|
||
|
Repayments of debt |
|
|
(4,311 |
) |
|
(29 |
) |
|
(5 |
) |
|
(4,345 |
) |
|
|
Series C Liberty SiriusXM stock repurchases |
|
|
(374 |
) |
|
— |
|
— |
|
(374 |
) |
|||
|
Subsidiary shares repurchased by subsidiary |
|
|
(1,959 |
) |
|
— |
|
— |
|
(1,959 |
) |
|||
|
Cash dividends paid by subsidiary |
|
|
(52 |
) |
|
— |
|
— |
|
(52 |
) |
|||
|
Taxes paid in lieu of shares issued for stock-based compensation |
|
|
(109 |
) |
|
(1 |
) |
|
9 |
|
|
(101 |
) |
|
|
Other financing activities, net |
|
|
(41 |
) |
|
(6 |
) |
|
6 |
|
|
(41 |
) |
|
|
Net cash provided (used) by financing activities |
|
|
(1,903 |
) |
|
39 |
|
|
10 |
|
|
(1,854 |
) |
|
|
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
|
|
— |
|
— |
|
(5 |
) |
|
(5 |
) |
|||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
42 |
|
|
20 |
|
|
259 |
|
|
321 |
|
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
102 |
|
|
190 |
|
|
160 |
|
|
452 |
|
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
|
144 |
|
|
210 |
|
|
419 |
|
|
773 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Cash and cash equivalents |
|
$ |
|
133 |
|
|
142 |
|
|
419 |
|
|
694 |
|
|
Restricted cash included in other current assets |
|
|
— |
|
55 |
|
|
— |
|
55 |
|
|||
|
Restricted cash included in other assets |
|
|
11 |
|
|
13 |
|
|
— |
|
24 |
|
||
|
Total cash and cash equivalents and restricted cash at end of period |
|
$ |
|
144 |
|
|
210 |
|
|
419 |
|
|
773 |
|
|
LIBERTY MEDIA CORPORATION |
||||||||||||||
|
STATEMENT OF CASH FLOWS INFORMATION |
||||||||||||||
|
Nine months ended September 30, 2018 (unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Attributed |
|
|
||||||||||
|
|
|
Liberty |
|
|
|
Formula |
|
|
||||||
|
|
|
SiriusXM |
|
Braves |
|
One |
|
Consolidated |
||||||
|
|
|
Group |
|
Group |
|
Group |
|
Liberty |
||||||
|
|
|
amounts in millions |
||||||||||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|||||
|
Net earnings (loss) |
|
$ |
|
813 |
|
|
(14 |
) |
|
35 |
|
|
834 |
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation and amortization |
|
|
274 |
|
|
62 |
|
|
345 |
|
|
681 |
|
|
|
Stock-based compensation |
|
|
117 |
|
|
9 |
|
|
19 |
|
|
145 |
|
|
|
Share of (earnings) loss of affiliates, net |
|
|
2 |
|
|
(8 |
) |
|
(66 |
) |
|
(72 |
) |
|
|
Unrealized (gains) losses on intergroup interest, net |
|
|
— |
|
46 |
|
|
(46 |
) |
|
— |
|||
|
Realized and unrealized (gains) losses on financial instruments, net |
|
|
(69 |
) |
|
(1 |
) |
|
(110 |
) |
|
(180 |
) |
|
|
Noncash interest expense (benefit) |
|
|
(9 |
) |
|
4 |
|
|
(1 |
) |
|
(6 |
) |
|
|
Deferred income tax expense (benefit) |
|
|
159 |
|
|
3 |
|
|
(30 |
) |
|
132 |
|
|
|
Intergroup tax allocation |
|
|
21 |
|
|
(14 |
) |
|
(7 |
) |
|
— |
||
|
Other charges (credits), net |
|
|
2 |
|
|
9 |
|
|
2 |
|
|
13 |
|
|
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|||||
|
Current and other assets |
|
|
(33 |
) |
|
(3 |
) |
|
(83 |
) |
|
(119 |
) |
|
|
Payables and other liabilities |
|
|
14 |
|
|
(30 |
) |
|
223 |
|
|
207 |
|
|
|
Net cash provided (used) by operating activities |
|
|
1,291 |
|
|
63 |
|
|
281 |
|
|
1,635 |
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|||||
|
Investments in equity affiliates and debt and equity securities |
|
|
(397 |
) |
|
— |
|
(6 |
) |
|
(403 |
) |
||
|
Cash proceeds from the sale of investments |
|
|
— |
|
— |
|
244 |
|
|
244 |
|
|||
|
Cash paid for acquisitions, net of cash acquired |
|
|
(1 |
) |
|
— |
|
— |
|
(1 |
) |
|||
|
Capital expended for property and equipment |
|
|
(239 |
) |
|
(15 |
) |
|
(11 |
) |
|
(265 |
) |
|
|
Other investing activities, net |
|
|
5 |
|
|
33 |
|
|
5 |
|
|
43 |
|
|
|
Net cash provided (used) by investing activities |
|
|
(632 |
) |
|
18 |
|
|
232 |
|
|
(382 |
) |
|
|
Cash flows from financing activities: |
|
|
— |
|
— |
|
— |
|
— |
|||||
|
Borrowings of debt |
|
|
1,899 |
|
|
123 |
|
|
288 |
|
|
2,310 |
|
|
|
Repayments of debt |
|
|
(1,902 |
) |
|
(185 |
) |
|
(927 |
) |
|
(3,014 |
) |
|
|
Series C Liberty SiriusXM stock repurchases |
|
|
(368 |
) |
|
— |
|
— |
|
(368 |
) |
|||
|
Subsidiary shares repurchased by subsidiary |
|
|
(662 |
) |
|
— |
|
— |
|
(662 |
) |
|||
|
Cash dividends paid by subsidiary |
|
|
(44 |
) |
|
— |
|
— |
|
(44 |
) |
|||
|
Taxes paid in lieu of shares issued for stock-based compensation |
|
|
(120 |
) |
|
— |
|
(2 |
) |
|
(122 |
) |
||
|
Other financing activities, net |
|
|
50 |
|
|
— |
|
1 |
|
|
51 |
|
||
|
Net cash provided (used) by financing activities |
|
|
(1,147 |
) |
|
(62 |
) |
|
(640 |
) |
|
(1,849 |
) |
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(488 |
) |
|
19 |
|
|
(127 |
) |
|
(596 |
) |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
625 |
|
|
140 |
|
|
282 |
|
|
1,047 |
|
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
|
137 |
|
|
159 |
|
|
155 |
|
|
451 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Cash and cash equivalents |
|
$ |
|
126 |
|
|
78 |
|
|
151 |
|
|
355 |
|
|
Restricted cash included in other current assets |
|
|
— |
|
68 |
|
|
4 |
|
|
72 |
|
||
|
Restricted cash included in other assets |
|
|
11 |
|
|
13 |
|
|
— |
|
24 |
|
||
|
Total cash and cash equivalents and restricted cash at end of period |
|
$ |
|
137 |
|
|
159 |
|
|
155 |
|
|
451 |
|
NON-GAAP FINANCIAL MEASURES
SCHEDULE 1
To provide investors with additional information regarding our financial results, this press release includes a presentation of Adjusted OIBDA, which is a non-GAAP financial measure, for the Liberty SiriusXM Group, the Braves Group and the Formula One Group, together with reconciliations to operating income, as determined under GAAP. Liberty Media defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, restructuring, acquisition and other related costs and impairment charges.
Liberty Media believes Adjusted OIBDA is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. Because Adjusted OIBDA is used as a measure of operating performance, Liberty Media views operating income as the most directly comparable GAAP measure. Adjusted OIBDA is not meant to replace or supersede operating income or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that Liberty Media's management considers in assessing the results of operations and performance of its assets.
The following table provides a reconciliation of Adjusted OIBDA for Liberty Media to operating income calculated in accordance with GAAP for the three months ended September 30, 2018 and September 30, 2019, respectively.
QUARTERLY SUMMARY
|
|
|
|
|
|
|
|
|
(amounts in millions) |
|
3Q18 |
|
3Q19 |
||
|
Liberty SiriusXM Group |
|
|
|
|
|
|
|
Revenue |
|
$ |
1,468 |
|
$ |
2,011 |
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
455 |
|
$ |
454 |
|
Depreciation and amortization |
|
|
93 |
|
|
135 |
|
Stock compensation expense |
|
|
35 |
|
|
66 |
|
Adjusted OIBDA |
|
$ |
583 |
|
$ |
655 |
|
|
|
|
|
|
|
|
|
Formula One Group |
|
|
|
|
|
|
|
Revenue |
|
$ |
647 |
|
$ |
633 |
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
31 |
|
$ |
32 |
|
Depreciation and amortization |
|
|
118 |
|
|
116 |
|
Stock compensation expense |
|
|
7 |
|
|
6 |
|
Adjusted OIBDA |
|
$ |
156 |
|
$ |
154 |
|
|
|
|
|
|
|
|
|
Braves Group |
|
|
|
|
|
|
|
Revenue |
|
$ |
200 |
|
$ |
212 |
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
45 |
|
$ |
21 |
|
Depreciation and amortization |
|
|
23 |
|
|
20 |
|
Stock compensation expense |
|
|
4 |
|
|
4 |
|
Adjusted OIBDA |
|
$ |
72 |
|
$ |
45 |
|
|
|
|
|
|
|
|
|
Liberty Media Corporation (Consolidated) |
|
|
|
|
|
|
|
Revenue |
|
$ |
2,315 |
|
$ |
2,856 |
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
531 |
|
$ |
507 |
|
Depreciation and amortization |
|
|
234 |
|
|
271 |
|
Stock compensation expense |
|
|
46 |
|
|
76 |
|
Adjusted OIBDA |
|
$ |
811 |
|
$ |
854 |
|
|
|
|
|
|
|
|
SCHEDULE 2
This press release also includes a presentation of adjusted EBITDA of SiriusXM, which is a non-GAAP financial measure used by SiriusXM, together with a reconciliation to SiriusXM's stand-alone net income, as determined under GAAP. SiriusXM defines adjusted EBITDA as net income before interest expense, income tax expense and depreciation and amortization. SiriusXM adjusts EBITDA to exclude the impact of other expense (income) as well as certain other charges discussed below. Adjusted EBITDA is a Non-GAAP financial measure that excludes or adjusts for (if applicable): (i) certain adjustments as a result of the purchase price accounting for the XM Merger and the Pandora acquisition, (ii) predecessor net income adjusted for certain expenses, including depreciation and amortization, other income (loss), and share-based payment expense for January 2019 and the nine months ended September 30, 2018, (iii) share-based payment expense and (iv) other significant operating expense (income) that do not relate to the on-going performance of its business. SiriusXM believes adjusted EBITDA is a useful measure of the underlying trend of its operating performance, which provides useful information about its business apart from the costs associated with its capital structure and purchase price accounting. SiriusXM believes investors find this Non-GAAP financial measure useful when analyzing past operating performance with current performance and comparing operating performance to the performance of other communications, entertainment and media companies. SiriusXM believes investors use adjusted EBITDA to estimate current enterprise value and to make investment decisions. As a result of large capital investments in SiriusXM’s satellite radio system, its results of operations reflect significant charges for depreciation expense. SiriusXM believes the exclusion of share-based payment expense is useful as it is not directly related to the operational conditions of its business. SiriusXM also believes the exclusion of the legal settlements and reserves, acquisition related costs, loss on extinguishment of debt and loss on disposal of assets, to the extent they occur during the period, is useful as they are significant expenses not incurred as part of normal operations for the period.
Adjusted EBITDA has certain limitations in that it does not take into account the impact to SiriusXM’s statements of comprehensive income of certain expenses, including share-based payment expense and certain purchase price accounting for the XM Merger and the Pandora acquisition. SiriusXM endeavors to compensate for the limitations of the Non-GAAP measure presented by also providing the comparable GAAP measure with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the Non-GAAP measure. Investors that wish to compare and evaluate operating results after giving effect for these costs, should refer to net income as disclosed in SiriusXM’s unaudited consolidated statements of comprehensive income. Since adjusted EBITDA is a Non-GAAP financial performance measure, SiriusXM’s calculation of adjusted EBITDA may be susceptible to varying calculations; may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. The reconciliation of net income to the adjusted EBITDA is calculated as follows:
|
|
|
|
|
|
|
|
|
||||
|
|
|
Unaudited |
|
||||||||
|
|
|
For the Three Months Ended |
|
||||||||
|
|
|
September 30, |
|
||||||||
|
|
|
2018 |
|
2019 |
|
||||||
|
($ in millions) |
|
|
|
|
|
|
|
||||
|
Net income: |
|
$ |
|
343 |
|
|
$ |
|
246 |
|
|
|
Add back items excluded from Adjusted EBITDA: |
|
|
|
|
|
|
|
||||
|
Share-based payment expense |
|
|
29 |
|
|
|
65 |
|
|
||
|
Depreciation and amortization |
|
|
76 |
|
|
|
118 |
|
|
||
|
Interest expense |
|
|
86 |
|
|
|
104 |
|
|
||
|
Loss on extinguishment of debt |
|
|
— |
|
|
56 |
|
|
|||
|
Other expense (income) |
|
|
42 |
|
|
|
— |
|
|||
|
Income tax expense |
|
|
12 |
|
|
|
70 |
|
|
||
|
Purchase price accounting adjustments: |
|
|
|
|
|
|
|
||||
|
Revenues |
|
|
2 |
|
|
|
2 |
|
|
||
|
Operating expenses |
|
|
— |
|
|
(4 |
) |
|
|||
|
Pro forma adjustments(1) |
|
|
(5 |
) |
|
|
— |
|
|||
|
Adjusted EBITDA |
|
$ |
|
585 |
|
|
$ |
|
657 |
|
|
| _____________________________ | ||
| (1) |
Pro forma adjustment for three months ended September 30, 2018 includes Pandora's net income for the three months ended September 30, 2018 of $(64) million plus depreciation and amortization of $16 million, share-based payment expense of $29 million, interest expense of $7 million and transaction related costs recorded by Pandora related to the acquisition by SiriusXM $9 million, offset by other expense (income) of $2 million. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20191111005142/en/
Courtnee Chun (720) 875-5420
Source: Liberty Media Corporation
Released November 11, 2019
