-
Attributed to
Liberty SiriusXM Group -
SiriusXM reported third quarter 2020 financial results-
SiriusXM self-pay net subscriber additions of 169,000 in third quarter -
Third quarter revenue of
$2,025 million , up 1% year-over-year -
Third quarter net income of
$272 million , up 11%; diluted EPS of$0.06 -
Adjusted EBITDA(2) of
$661 million in the third quarter, up 1% year-over-year -
SiriusXM increased 2020 subscriber and financial guidance onOctober 22 nd -
Third quarter
SiriusXM capital returns total$544 million ; Stitcher acquisition complete; leadership transition on track
-
-
Jennifer Witz slated to become CEO ofSiriusXM onJanuary 1, 2021 -
Liberty Media’s ownership of
SiriusXM stood at 74.4% as ofOctober 20 th -
From
August 1 st throughOctober 31 st, Liberty repurchased 3.1 million LSXMA/K shares at an average price per share of$34.93 and total cash consideration of$110 million -
Corporate level liquidity as of
September 30 th:$974 million cash, cash equivalents and undrawn margin loan capacity (excluding liquidity atSiriusXM )
-
-
Attributed to
Formula One Group - F1 and FIA announced new five year Concorde Agreement executed with all ten teams
- Completed 13 races of planned 17 race season
-
Lewis Hamilton sets new record of 93Grand Prix wins, surpassingMichael Schumacher -
Stefano Domenicali appointed President and CEO of F1 effectiveJanuary 2021 -
Chase Carey will move to role of non-executive Chairman
-
-
Liquidity as of
September 30 th:$2.1 billion cash, cash equivalents and revolver capacity (including$639 million of liquidity at F1)
-
Attributed to
Braves Group -
Braves clinched third straight NL East title and won NL Wild Card Series and NL Division Series -
Braves amended debt agreements related to the team revolver and ballpark funding -
Liquidity as of
September 30 th:$260 million cash, restricted cash, cash equivalents and revolver capacity (including$183 million liquidity atBraves )
-
“Our employees and management teams executed exceptionally well given the ongoing challenges presented by COVID-19.
Note on COVID-19
Discussion of Results
Unless otherwise noted, the following discussion compares financial information for the three months ended
LIBERTY SIRIUSXM GROUP – The following table provides the financial results attributed to
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
3Q19 |
|
3Q20 |
|
% Change |
|||||||
|
|
amounts in millions |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||
Revenue |
|
|
|
|
|
|
|
|
|
|
|||
|
|
$ |
2,011 |
|
|
$ |
2,025 |
|
|
|
1 |
% |
|
|
|
$ |
2,011 |
|
|
$ |
2,025 |
|
|
|
1 |
% |
|
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
459 |
|
|
|
461 |
|
|
|
0 |
% |
|
Corporate and other |
|
|
(5 |
) |
|
|
(10 |
) |
|
|
(100 |
)% |
|
|
|
$ |
454 |
|
|
$ |
451 |
|
|
|
(1 |
)% |
|
Adjusted OIBDA |
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
659 |
|
|
|
661 |
|
|
|
0 |
% |
|
Corporate and other |
|
|
(4 |
) |
|
|
(7 |
) |
|
|
(75 |
)% |
|
|
|
$ |
655 |
|
|
$ |
654 |
|
|
|
0 |
% |
a) |
|
The businesses and assets attributed to
“We are incredibly proud of the way our Formula 1 community has come together to face the challenges and return to racing in a safe way, and we’ve seen excitement both on and off the track.
|
|
|
|
|
|
|
||
|
|
3Q19 |
|
3Q20 |
||||
|
|
amounts in millions |
||||||
|
|
|
|
|
|
|
||
Revenue |
|
|
|
|
|
|
||
Formula 1 |
|
$ |
633 |
|
|
$ |
597 |
|
|
|
$ |
633 |
|
|
$ |
597 |
|
Operating Income (Loss) |
|
|
|
|
|
|
||
Formula 1 |
|
$ |
44 |
|
|
$ |
(104 |
) |
Corporate and other |
|
|
(12 |
) |
|
|
(11 |
) |
|
|
$ |
32 |
|
|
$ |
(115 |
) |
Adjusted OIBDA |
|
|
|
|
|
|
||
Formula 1 |
|
$ |
162 |
|
|
$ |
14 |
|
Corporate and other |
|
|
(8 |
) |
|
|
(6 |
) |
|
|
$ |
154 |
|
|
$ |
8 |
|
The following table provides the operating results of Formula 1 (“F1”).
F1 Operating Results |
|
|
|
|
|
|
|
|
|||
|
3Q19 |
|
3Q20 |
|
% Change |
||||||
|
amounts in millions |
|
|
|
|||||||
Primary Formula 1 revenue |
$ |
553 |
|
|
$ |
524 |
|
|
(5 |
)% |
|
Other Formula 1 revenue |
|
80 |
|
|
|
73 |
|
|
(9 |
)% |
|
Total Formula 1 revenue |
$ |
633 |
|
|
$ |
597 |
|
|
(6 |
)% |
|
Operating expenses (excluding stock-based compensation included below): |
|
|
|
|
|
|
|
|
|||
Team payments |
|
(335 |
) |
|
|
(441 |
) |
|
(32 |
)% |
|
Other cost of Formula 1 revenue |
|
(99 |
) |
|
|
(110 |
) |
|
(11 |
)% |
|
Cost of Formula 1 revenue |
$ |
(434 |
) |
|
$ |
(551 |
) |
|
(27 |
)% |
|
Selling, general and administrative expenses |
|
(37 |
) |
|
|
(32 |
) |
|
14 |
% |
|
Adjusted OIBDA |
$ |
162 |
|
|
$ |
14 |
|
|
(91 |
)% |
|
Stock-based compensation |
|
(5 |
) |
|
|
(3 |
) |
|
40 |
% |
|
Depreciation and Amortization |
|
(113 |
) |
|
|
(115 |
) |
|
(2 |
)% |
|
Operating income (loss) |
$ |
44 |
|
|
$ |
(104 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|||
Number of races in period |
|
7 |
|
|
|
10 |
|
|
|
|
Due to the COVID-19 pandemic, the start of the 2020 season was postponed until early July, with certain races cancelled and others rescheduled to later dates. The 2020 revised calendar consists of 17 events beginning
Primary F1 revenue is comprised of (i) race promotion fees, (ii) broadcasting fees and (iii) advertising & sponsorship fees. Primary F1 revenue decreased mainly due to the limited race promotion revenue received since fans were prohibited at all but one race during the third quarter. This was partially offset by growth in broadcasting and advertising & sponsorship fees due to the impact of higher proportionate recognition of season-based income with three additional races during the current period, as well as the impact of recognizing revenue over fewer races in 2020. However, both broadcasting and advertising & sponsorship revenues were lower than originally contracted. The altered schedule triggered lower broadcasting fees pursuant to the contractual terms within certain broadcasting agreements and also led to other one-time changes as certain broadcasting fees were renegotiated for the current year. Additionally, Formula 1 has been prevented from delivering all elements of a typical sponsorship offering due to the cancellation of races to which contracted sponsorship inventory specifically related and the limited activities at the races, including hospitality, leading to one-time changes in sponsorship contracts.
Other F1 revenue decreased in the third quarter due to the non-operation of the
Operating loss increased and adjusted OIBDA(2) decreased in the third quarter. Team payments increased partially due to one-time fees paid to teams upon signing the new Concorde Agreement as well as the pro rata recognition of prize fund payments across the race season. Other cost of F1 revenue is largely variable in nature and mostly relates directly to revenue opportunities. These costs increased in the third quarter due to the increase in number of races compared to the prior year, partially offset by lower hospitality and lower freight costs, as only one flyaway race took place in the current period. Selling, general and administrative expense decreased due to favorable foreign exchange rates and lower discretionary marketing expense.
The businesses and assets attributed to the
BRAVES GROUP - The following table provides the financial results attributed to the
|
|
|
|
|
|
|
|
|
|
3Q19 |
|
3Q20 |
|||
|
|
amounts in millions |
|||||
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Corporate and other |
|
$ |
212 |
|
$ |
110 |
|
Operating Income |
|
|
|
|
|
|
|
Corporate and other |
|
$ |
21 |
|
$ |
(16 |
) |
Adjusted OIBDA |
|
|
|
|
|
|
|
Corporate and other |
|
$ |
45 |
|
$ |
5 |
|
The following table provides the operating results of
|
|
|
|
|
|
|
|
|
|||
|
3Q19 |
|
3Q20 |
|
% Change |
||||||
|
amounts in millions |
|
|
|
|||||||
Baseball revenue |
$ |
203 |
|
|
$ |
102 |
|
|
(50 |
)% |
|
Development revenue |
|
9 |
|
|
|
8 |
|
|
(11 |
)% |
|
Total revenue |
|
212 |
|
|
|
110 |
|
|
(48 |
)% |
|
Operating expenses (excluding stock-based compensation included below): |
|
|
|
|
|
|
|
|
|||
Other operating expenses |
|
(145 |
) |
|
|
(90 |
) |
|
38 |
% |
|
Selling, general and administrative expenses |
|
(21 |
) |
|
|
(14 |
) |
|
33 |
% |
|
Adjusted OIBDA |
$ |
46 |
|
|
$ |
6 |
|
|
(87 |
)% |
|
Stock-based compensation |
|
(3 |
) |
|
|
(2 |
) |
|
33 |
% |
|
Depreciation and Amortization |
|
(20 |
) |
|
|
(19 |
) |
|
5 |
% |
|
Operating income (loss) |
$ |
23 |
|
|
$ |
(15 |
) |
|
NM |
||
|
|
|
|
|
|
|
|
|
|||
Number of home games in period |
|
40 |
|
|
|
30 |
|
|
|
|
Due to the outbreak of COVID-19, MLB postponed the start of the 2020 season until late July. The regular season included 60 games (30 home and 30 away) beginning
Baseball revenue is comprised of (i) ballpark operations (ticket sales, concessions, corporate sales, retail, suites, premium seat fees and postseason), (ii) local broadcast rights and (iii) national broadcast rights, 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 decreased in the third quarter as a result of fewer games and no fans, which drove lower broadcasting and ballpark operations revenue. The decrease in development revenue was primarily driven by the deferral of rental income from certain tenants at the mixed-use development.
Operating income and adjusted OIBDA decreased in the third quarter. Lower revenue was partially offset by decreased operating expenses as a result of lower player salaries, as players were paid a pro-rata portion of their salaries, as well as lower facility and game day expenses driven by fewer games with no fans. Selling, general and administrative expense decreased due to reduced marketing expense and fewer games.
The
The businesses and assets attributed to the
Share Repurchases
From
The total remaining repurchase authorization for
FOOTNOTES
1) |
|
|
2) |
For definitions of Adjusted OIBDA (as defined by |
NOTES
The following financial information with respect to
Fair Value of |
|
|
|
|
|
|
|
(amounts in millions) |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
$ |
3,087 |
|
$ |
3,752 |
|
iHeart(b) |
|
$ |
58 |
|
|
57 |
|
|
|
$ |
3,145 |
|
$ |
3,809 |
|
|
|
|
|
|
|
|
|
|
|
|
187 |
|
|
177 |
|
|
|
$ |
187 |
|
$ |
177 |
|
|
|
|
NA |
|
|
NA |
|
Total |
|
$ |
3,332 |
|
$ |
3,986 |
|
a) |
Represents the fair value of the equity investment in Live Nation. 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 |
|
b) |
Includes fair value of iHeart shares and warrants which are included in other long-term assets. |
|
c) |
|
|
d) |
Represents the carrying value of other public holdings which are accounted for at fair value. |
Fair Value of Intergroup Assets and Liabilities
The intergroup interests represent quasi-equity interests which are not represented by outstanding shares of common stock; rather, the
The Live Nation call spread was issued in connection with the reattribution between
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Attributed |
|
|||||||||||||||||||
|
|
as of |
|
|||||||||||||||||||
|
|
Liberty |
|
|
|
|
|
|
Formula |
|
||||||||||||
|
|
|
|
|
|
One |
|
|||||||||||||||
|
|
Group |
|
Group |
|
Group |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(amounts in millions) |
|
Notional
|
|
|
Value |
|
Notional
|
|
|
Value |
|
Notional
|
|
Value |
|
|||||||
|
|
2.3 |
|
|
$ |
49 |
|
|
(9.1 |
) |
|
$ |
(191 |
) |
|
6.8 |
|
|
$ |
142 |
|
|
|
|
5.3 |
|
|
$ |
176 |
|
|
|
|
$ |
|
|
(5.3 |
) |
|
$ |
(176 |
) |
|
||
Live Nation call spread |
|
(34.8 |
) |
|
$ |
(276 |
) |
|
|
|
$ |
|
|
34.8 |
|
|
$ |
276 |
|
|
Cash and Debt
The following presentation is provided to separately identify cash and liquid investments and debt information.
|
|
|
|
|
|
|
|
||
(amounts in millions) |
|
|
|
|
|
||||
Cash, Cash Equivalents and Restricted Cash Attributable to: |
|
|
|
|
|
|
|
||
|
|
$ |
1,935 |
|
|
$ |
148 |
|
|
|
|
|
1,767 |
|
|
|
1,586 |
|
|
|
|
|
329 |
|
|
|
240 |
|
|
Total Consolidated Cash, Cash Equivalents and Restricted Cash (GAAP) |
|
$ |
4,031 |
|
|
$ |
1,974 |
|
|
|
|
|
|
|
|
|
|
||
Debt: |
|
|
|
|
|
|
|
||
|
|
$ |
9,250 |
|
|
$ |
7,750 |
|
|
Pandora convertible senior notes |
|
|
194 |
|
|
|
194 |
|
|
1.375% cash convertible notes due 2023(e) |
|
|
1,000 |
|
|
|
1,000 |
|
|
2.125% |
|
|
400 |
|
|
|
400 |
|
|
2.25% Live Nation exchangeable senior debentures due 2048(e) |
|
|
385 |
|
|
|
385 |
|
|
2.75% |
|
|
604 |
|
|
|
604 |
|
|
|
|
|
750 |
|
|
|
750 |
|
|
Live Nation margin loan |
|
|
— |
|
|
|
— |
|
|
Other subsidiary debt(f) |
|
|
— |
|
|
|
— |
|
|
Total Attributed Liberty SiriusXM Group Debt |
|
$ |
12,583 |
|
|
$ |
11,083 |
|
|
Unamortized discount, fair market value adjustment and deferred loan costs |
|
|
(115 |
) |
|
|
2 |
|
|
Total Attributed Liberty SiriusXM Group Debt (GAAP) |
|
$ |
12,468 |
|
|
$ |
11,085 |
|
|
|
|
|
|
|
|
|
|
||
1% cash convertible notes due 2023(e) |
|
|
450 |
|
|
|
450 |
|
|
2.25% AT&T exchangeable senior debentures due 2046(e) |
|
|
206 |
|
|
|
204 |
|
|
Formula 1 term loan and revolving credit facility |
|
|
2,902 |
|
|
|
2,902 |
|
|
Other corporate level debt |
|
|
77 |
|
|
|
76 |
|
|
Total Attributed Formula One Group Debt |
|
$ |
3,635 |
|
|
$ |
3,632 |
|
|
Fair market value adjustment and deferred loan costs |
|
|
37 |
|
|
|
83 |
|
|
Total Attributed Formula One Group Debt (GAAP) |
|
$ |
3,672 |
|
|
$ |
3,715 |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
718 |
|
|
|
714 |
|
|
Total Attributed Braves Group Debt |
|
$ |
718 |
|
|
$ |
714 |
|
|
Deferred loan costs |
|
|
(4 |
) |
|
|
(4 |
) |
|
Total Attributed Braves Group Debt (GAAP) |
|
$ |
714 |
|
|
$ |
710 |
|
|
|
|
|
|
|
|
|
|
||
Total Liberty Media Corporation Debt (GAAP) |
|
$ |
16,854 |
|
|
$ |
15,510 |
|
|
a) |
Includes |
|
b) |
Includes restricted cash held in reserves pursuant to the terms of various financial obligations. |
|
c) |
Includes |
|
d) |
Outstanding principal amount of Senior Notes with no reduction for the net unamortized discount. |
|
e) |
Face amount of the cash convertible notes and exchangeable debentures with no fair market value adjustment. |
|
f) |
Includes |
Total cash, liquid investments and restricted cash attributed to
Total debt attributed to
Total cash and liquid investments attributed to the
Total cash, liquid investments and restricted cash attributed to the
On
Important Notice:
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; the new Concorde Agreement, MLB’s 2020 season; the impact of COVID-19; matters relating to
BALANCE SHEET INFORMATION
|
||||||||||||||||
|
|
|
Attributed |
|
|
|
|
|||||||||
|
|
Liberty |
|
|
|
Formula |
|
|
|
|
||||||
|
|
|
|
|
|
One |
|
Intergroup |
|
Consolidated |
||||||
|
|
Group |
|
Group |
|
Group |
|
Eliminations |
|
Liberty |
||||||
|
|
amounts in millions |
||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|||||
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents |
|
$ |
137 |
|
|
213 |
|
|
1,586 |
|
|
— |
|
|
1,936 |
|
Trade and other receivables, net |
|
|
582 |
|
|
41 |
|
|
148 |
|
|
— |
|
|
771 |
|
Other current assets |
|
|
214 |
|
|
40 |
|
|
588 |
|
|
(276 |
) |
|
566 |
|
Total current assets |
|
|
933 |
|
|
294 |
|
|
2,322 |
|
|
(276 |
) |
|
3,273 |
|
Intergroup interests |
|
|
225 |
|
|
— |
|
|
142 |
|
|
(367 |
) |
|
— |
|
Investments in affiliates, accounted for using the equity method |
|
|
986 |
|
|
87 |
|
|
33 |
|
|
— |
|
|
1,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Property and equipment, at cost |
|
|
2,724 |
|
|
991 |
|
|
191 |
|
|
— |
|
|
3,906 |
|
Accumulated depreciation |
|
|
(1,435 |
) |
|
(168 |
) |
|
(67 |
) |
|
— |
|
|
(1,670 |
) |
|
|
|
1,289 |
|
|
823 |
|
|
124 |
|
|
— |
|
|
2,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Intangible assets not subject to amortization |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
15,820 |
|
|
180 |
|
|
3,956 |
|
|
— |
|
|
19,956 |
|
|
|
|
8,600 |
|
|
— |
|
|
— |
|
|
— |
|
|
8,600 |
|
Other |
|
|
1,262 |
|
|
143 |
|
|
— |
|
|
— |
|
|
1,405 |
|
|
|
|
25,682 |
|
|
323 |
|
|
3,956 |
|
|
— |
|
|
29,961 |
|
Intangible assets subject to amortization, net |
|
|
1,474 |
|
|
25 |
|
|
3,990 |
|
|
— |
|
|
5,489 |
|
Other assets |
|
|
1,021 |
|
|
76 |
|
|
664 |
|
|
(37 |
) |
|
1,724 |
|
Total assets |
|
$ |
31,610 |
|
|
1,628 |
|
|
11,231 |
|
|
(680 |
) |
|
43,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
|||||
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Intergroup payable (receivable) |
|
$ |
(28 |
) |
|
(25 |
) |
|
53 |
|
|
— |
|
|
— |
|
Accounts payable and accrued liabilities |
|
|
1,156 |
|
|
63 |
|
|
184 |
|
|
— |
|
|
1,403 |
|
Current portion of debt |
|
|
1 |
|
|
95 |
|
|
— |
|
|
— |
|
|
96 |
|
Deferred revenue |
|
|
1,792 |
|
|
88 |
|
|
362 |
|
|
— |
|
|
2,242 |
|
Other current liabilities |
|
|
350 |
|
|
4 |
|
|
20 |
|
|
(276 |
) |
|
98 |
|
Total current liabilities |
|
|
3,271 |
|
|
225 |
|
|
619 |
|
|
(276 |
) |
|
3,839 |
|
Long-term debt |
|
|
11,084 |
|
|
615 |
|
|
3,715 |
|
|
— |
|
|
15,414 |
|
Deferred income tax liabilities |
|
|
2,055 |
|
|
47 |
|
|
— |
|
|
(37 |
) |
|
2,065 |
|
Redeemable intergroup interests |
|
|
— |
|
|
191 |
|
|
176 |
|
|
(367 |
) |
|
— |
|
Other liabilities |
|
|
664 |
|
|
213 |
|
|
214 |
|
|
— |
|
|
1,091 |
|
Total liabilities |
|
|
17,074 |
|
|
1,291 |
|
|
4,724 |
|
|
(680 |
) |
|
22,409 |
|
Equity / Attributed net assets |
|
|
9,354 |
|
|
337 |
|
|
6,501 |
|
|
— |
|
|
16,192 |
|
Noncontrolling interests in equity of subsidiaries |
|
|
5,182 |
|
|
— |
|
|
6 |
|
|
— |
|
|
5,188 |
|
Total liabilities and equity |
|
$ |
31,610 |
|
|
1,628 |
|
|
11,231 |
|
|
(680 |
) |
|
43,789 |
|
STATEMENT OF OPERATIONS
Three months ended
|
|||||||||||||
|
|
|
Attributed |
|
|
||||||||
|
|
Liberty |
|
|
|
Formula |
|
|
|||||
|
|
|
|
|
|
One |
|
Consolidated |
|||||
|
|
Group |
|
Group |
|
Group |
|
Liberty |
|||||
|
|
amounts in millions |
|||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
2,025 |
|
|
— |
|
|
— |
|
|
2,025 |
|
Formula 1 revenue |
|
|
— |
|
|
— |
|
|
597 |
|
|
597 |
|
Other revenue |
|
|
— |
|
|
110 |
|
|
— |
|
|
110 |
|
Total revenue |
|
|
2,025 |
|
|
110 |
|
|
597 |
|
|
2,732 |
|
Operating costs and expenses, including stock-based compensation: |
|
|
|
|
|
|
|
|
|
||||
Cost of services (exclusive of depreciation shown separately below): |
|
|
|
|
|
|
|
|
|
||||
Revenue share and royalties |
|
|
602 |
|
|
— |
|
|
— |
|
|
602 |
|
Programming and content(1) |
|
|
123 |
|
|
— |
|
|
— |
|
|
123 |
|
Customer service and billing(1) |
|
|
119 |
|
|
— |
|
|
— |
|
|
119 |
|
Other(1) |
|
|
51 |
|
|
— |
|
|
— |
|
|
51 |
|
Cost of Formula 1 revenue |
|
|
— |
|
|
— |
|
|
551 |
|
|
551 |
|
Subscriber acquisition costs |
|
|
110 |
|
|
— |
|
|
— |
|
|
110 |
|
Other operating expenses(1) |
|
|
64 |
|
|
90 |
|
|
— |
|
|
154 |
|
Selling, general and administrative(1) |
|
|
363 |
|
|
17 |
|
|
43 |
|
|
423 |
|
Acquisition and restructuring |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Depreciation and amortization |
|
|
142 |
|
|
19 |
|
|
118 |
|
|
279 |
|
|
|
|
1,574 |
|
|
126 |
|
|
712 |
|
|
2,412 |
|
Operating income (loss) |
|
|
451 |
|
|
(16 |
) |
|
(115 |
) |
|
320 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(116 |
) |
|
(6 |
) |
|
(31 |
) |
|
(153 |
) |
Intergroup interest (expense) income |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Share of earnings (losses) of affiliates, net |
|
|
(183 |
) |
|
(5 |
) |
|
1 |
|
|
(187 |
) |
Realized and unrealized gains (losses) on financial instruments, net |
|
|
(39 |
) |
|
— |
|
|
55 |
|
|
16 |
|
Unrealized gains (losses) on intergroup interests |
|
|
25 |
|
|
(10 |
) |
|
(15 |
) |
|
— |
|
Other, net |
|
|
(36 |
) |
|
(1 |
) |
|
5 |
|
|
(32 |
) |
|
|
|
(349 |
) |
|
(22 |
) |
|
15 |
|
|
(356 |
) |
Earnings (loss) from continuing operations before income taxes |
|
|
102 |
|
|
(38 |
) |
|
(100 |
) |
|
(36 |
) |
Income tax (expense) benefit |
|
|
(22 |
) |
|
7 |
|
|
8 |
|
|
(7 |
) |
Net earnings (loss) |
|
|
80 |
|
|
(31 |
) |
|
(92 |
) |
|
(43 |
) |
Less net earnings (loss) attributable to the noncontrolling interests |
|
|
68 |
|
|
— |
|
|
3 |
|
|
71 |
|
Net earnings (loss) attributable to Liberty stockholders |
|
$ |
12 |
|
|
(31 |
) |
|
(95 |
) |
|
(114 |
) |
|
|
|
|
|
|
|
|
|
|
||||
(1) Includes stock-based compensation expense as follows: |
|
|
|
|
|
|
|
|
|
||||
Programming and content |
|
|
9 |
|
|
— |
|
|
— |
|
|
9 |
|
Customer service and billing |
|
|
1 |
|
|
— |
|
|
— |
|
|
1 |
|
Other |
|
|
1 |
|
|
— |
|
|
— |
|
|
1 |
|
Other operating expenses |
|
|
11 |
|
|
— |
|
|
— |
|
|
11 |
|
Selling, general and administrative |
|
|
39 |
|
|
2 |
|
|
5 |
|
|
46 |
|
Stock compensation expense |
|
$ |
61 |
|
|
2 |
|
|
5 |
|
|
68 |
|
STATEMENT OF OPERATIONS
Three months ended |
|||||||||||||
|
|
|
Attributed |
|
|
||||||||
|
|
Liberty |
|
|
|
Formula |
|
|
|||||
|
|
|
|
|
|
One |
|
Consolidated |
|||||
|
|
Group |
|
Group |
|
Group |
|
Liberty |
|||||
|
|
amounts in millions |
|||||||||||
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 restructuring |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
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 interests |
|
|
— |
|
|
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 |
|
STATEMENT OF CASH FLOWS INFORMATION
Nine months ended |
|||||||||||||
|
|
|
Attributed |
|
|
||||||||
|
|
Liberty |
|
|
|
Formula |
|
|
|||||
|
|
|
|
|
|
One |
|
Consolidated |
|||||
|
|
Group |
|
Group |
|
Group |
|
Liberty |
|||||
|
|
amounts in millions |
|||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
||||
Net earnings (loss) |
|
$ |
348 |
|
|
(16 |
) |
|
(635 |
) |
|
(303 |
) |
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
432 |
|
|
54 |
|
|
326 |
|
|
812 |
|
Stock-based compensation |
|
|
173 |
|
|
(10 |
) |
|
17 |
|
|
180 |
|
Share of (earnings) loss of affiliates, net |
|
|
331 |
|
|
2 |
|
|
109 |
|
|
442 |
|
Unrealized (gains) losses on intergroup interests, net |
|
|
(92 |
) |
|
(78 |
) |
|
170 |
|
|
— |
|
Realized and unrealized (gains) losses on financial instruments, net |
|
|
228 |
|
|
10 |
|
|
(75 |
) |
|
163 |
|
Deferred income tax expense (benefit) |
|
|
33 |
|
|
(15 |
) |
|
(61 |
) |
|
(43 |
) |
Intergroup tax allocation |
|
|
4 |
|
|
(16 |
) |
|
12 |
|
|
— |
|
Other charges (credits), net |
|
|
73 |
|
|
10 |
|
|
2 |
|
|
85 |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
||||
Current and other assets |
|
|
150 |
|
|
(16 |
) |
|
(282 |
) |
|
(148 |
) |
Payables and other liabilities |
|
|
(301 |
) |
|
19 |
|
|
150 |
|
|
(132 |
) |
Net cash provided (used) by operating activities |
|
|
1,379 |
|
|
(56 |
) |
|
(267 |
) |
|
1,056 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
||||
Investments in equity method affiliates and debt and equity securities |
|
|
(91 |
) |
|
— |
|
|
(3 |
) |
|
(94 |
) |
Return of investment in equity method affiliates |
|
|
— |
|
|
— |
|
|
105 |
|
|
105 |
|
Cash proceeds from sale of investments |
|
|
— |
|
|
— |
|
|
13 |
|
|
13 |
|
Cash (paid) received for acquisitions, net of cash acquired |
|
|
(28 |
) |
|
— |
|
|
— |
|
|
(28 |
) |
Capital expended for property and equipment, including internal-use software and website development |
|
|
(230 |
) |
|
(69 |
) |
|
(17 |
) |
|
(316 |
) |
Other investing activities, net |
|
|
10 |
|
|
4 |
|
|
(3 |
) |
|
11 |
|
Net cash provided (used) by investing activities |
|
|
(339 |
) |
|
(65 |
) |
|
95 |
|
|
(309 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
||||
Borrowings of debt |
|
|
2,300 |
|
|
216 |
|
|
522 |
|
|
3,038 |
|
Repayments of debt |
|
|
(1,922 |
) |
|
(62 |
) |
|
(611 |
) |
|
(2,595 |
) |
Intergroup Loan (repayment) borrowing |
|
|
(750 |
) |
|
— |
|
|
750 |
|
|
— |
|
Liberty |
|
|
(135 |
) |
|
— |
|
|
(69 |
) |
|
(204 |
) |
Subsidiary shares repurchased by subsidiary |
|
|
(870 |
) |
|
— |
|
|
— |
|
|
(870 |
) |
Reattribution between |
|
|
(608 |
) |
|
— |
|
|
608 |
|
|
— |
|
Proceeds from Liberty SiriusXM common stock rights offering |
|
|
754 |
|
|
— |
|
|
— |
|
|
754 |
|
Cash dividends paid by subsidiary |
|
|
(49 |
) |
|
— |
|
|
— |
|
|
(49 |
) |
Taxes paid in lieu of shares issued for stock-based compensation |
|
|
(84 |
) |
|
— |
|
|
(2 |
) |
|
(86 |
) |
Other financing activities, net |
|
|
(35 |
) |
|
(5 |
) |
|
(26 |
) |
|
(66 |
) |
Net cash provided (used) by financing activities |
|
|
(1,399 |
) |
|
149 |
|
|
1,172 |
|
|
(78 |
) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
|
|
— |
|
|
— |
|
|
(1 |
) |
|
(1 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(359 |
) |
|
28 |
|
|
999 |
|
|
668 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
507 |
|
|
212 |
|
|
587 |
|
|
1,306 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
148 |
|
|
240 |
|
|
1,586 |
|
|
1,974 |
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
137 |
|
|
213 |
|
|
1,586 |
|
|
1,936 |
|
Restricted cash included in other current assets |
|
|
— |
|
|
10 |
|
|
— |
|
|
10 |
|
Restricted cash included in other assets |
|
|
11 |
|
|
17 |
|
|
— |
|
|
28 |
|
Total cash and cash equivalents and restricted cash at end of period |
|
$ |
148 |
|
|
240 |
|
|
1,586 |
|
|
1,974 |
|
STATEMENT OF CASH FLOWS INFORMATION
Nine months ended |
|||||||||||||
|
|
|
Attributed |
|
|
||||||||
|
|
Liberty |
|
|
|
Formula |
|
|
|||||
|
|
|
|
|
|
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 interests, net |
|
|
— |
|
|
26 |
|
|
(26 |
) |
|
— |
|
Realized and unrealized (gains) losses on financial instruments, net |
|
|
(6 |
) |
|
6 |
|
|
171 |
|
|
171 |
|
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 |
|
|
63 |
|
|
9 |
|
|
(4 |
) |
|
68 |
|
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 |
|
|
1437 |
|
|
57 |
|
|
276 |
|
|
1,770 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
||||
Investments in equity affiliates and debt and equity securities |
|
|
(14 |
) |
|
(4 |
) |
|
(7 |
) |
|
(25 |
) |
Cash proceeds from the sale of investments |
|
|
373 |
|
|
— |
|
|
16 |
|
|
389 |
|
Cash paid for acquisitions, net of cash acquired |
|
|
313 |
|
|
— |
|
|
— |
|
|
313 |
|
Capital expended for property and equipment, including internal-use software and website development |
|
|
(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 |
) |
Liberty |
|
|
(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 rates 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 |
|
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
The following table provides a reconciliation of Adjusted OIBDA for
QUARTERLY SUMMARY |
|
|
|
|
|
|
|
(amounts in millions) |
|
3Q19 |
|
3Q20 |
|||
|
|
|
|
|
|
|
|
Revenue |
|
$ |
2,011 |
|
$ |
2,025 |
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
454 |
|
$ |
451 |
|
Depreciation and amortization |
|
|
135 |
|
|
142 |
|
Stock compensation expense |
|
|
66 |
|
|
61 |
|
Adjusted OIBDA |
|
$ |
655 |
|
$ |
654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
633 |
|
$ |
597 |
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
32 |
|
$ |
(115 |
) |
Depreciation and amortization |
|
|
116 |
|
|
118 |
|
Stock compensation expense |
|
|
6 |
|
|
5 |
|
Adjusted OIBDA |
|
$ |
154 |
|
$ |
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
212 |
|
$ |
110 |
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
21 |
|
$ |
(16 |
) |
Depreciation and amortization |
|
|
20 |
|
|
19 |
|
Stock compensation expense |
|
|
4 |
|
|
2 |
|
Adjusted OIBDA |
|
$ |
45 |
|
$ |
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
2,856 |
|
$ |
2,732 |
|
|
|
|
|
|
|
|
|
Operating Income |
|
$ |
507 |
|
$ |
320 |
|
Depreciation and amortization |
|
|
271 |
|
|
279 |
|
Stock compensation expense |
|
|
76 |
|
|
68 |
|
Adjusted OIBDA |
|
$ |
854 |
|
$ |
667 |
|
SCHEDULE 2
This press release also includes a presentation of adjusted EBITDA of
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.
|
|
|
|
|
|
|
|
||
|
|
Unaudited |
|
||||||
|
|
For the Three Months Ended |
|
||||||
|
|
|
|
||||||
|
|
2019 |
|
2020 |
|
||||
($ in millions) |
|
|
|
|
|
|
|
||
Net income: |
|
$ |
246 |
|
|
$ |
272 |
|
|
Add back items excluded from Adjusted EBITDA: |
|
|
|
|
|
|
|
||
Share-based payment expense |
|
|
65 |
|
|
|
58 |
|
|
Depreciation and amortization |
|
|
118 |
|
|
|
125 |
|
|
Interest expense |
|
|
104 |
|
|
|
96 |
|
|
Loss on extinguishment of debt |
|
|
56 |
|
|
|
40 |
|
|
Other expense (income) |
|
|
— |
|
|
|
(2 |
) |
|
Income tax expense |
|
|
70 |
|
|
|
72 |
|
|
Purchase price accounting adjustments: |
|
|
|
|
|
|
|
||
Revenues |
|
|
2 |
|
|
|
2 |
|
|
Operating expenses |
|
|
(4 |
) |
|
|
(2 |
) |
|
Adjusted EBITDA |
|
$ |
657 |
|
|
$ |
661 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20201105005361/en/
Source: