Liberty Media Corporation ("Liberty Media" or “Liberty”)
(NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) today
reported third quarter 2022 results. Headlines include(1):
- Attributed to Liberty SiriusXM Group
- SiriusXM reported third quarter 2022 financial results
- Revenue of $2.28 billion; increase of 4% year-over-year
- Net income of $247 million; diluted EPS of $0.06
- Adjusted EBITDA(2) of $720 million
- SiriusXM announced 10% increase to quarterly dividend;
year-to-date capital returns to SiriusXM stockholders of $1.8
billion
- SiriusXM reiterated full-year financial and subscriber guidance
on November 1st
- Liberty Media’s ownership of SiriusXM was 82.4% as of October
28th
- Repurchased $210 million aggregate principal amount of 1.375%
cash convertible notes due 2023 for $284 million gross
consideration
- Effective cost to Liberty SiriusXM Group of $179 million, net
of proceeds received from Formula One Group ($64 million) and
Braves Group ($14 million) to settle corresponding portion of
intergroup interests and proceeds from settlement of bond hedge and
warrant ($27 million)
- From August 1st through October 31st, Liberty repurchased 276
thousand LSXMK shares at an average price per share of $40.54 for
total cash consideration of $11 million
- Attributed to Formula One Group
- Announced multiple broadcast extensions, including Sky Sports
covering UK and Ireland, Germany and Italy in multi-year
agreements, ESPN for US market through 2025, and ServusTV in
Austria through 2025
- Announced 2023 race calendar with renewals of Monaco and Mexico
City races until 2025
- Expanded partnership with AWS as a Global Partner
- Audi announced F1 entry as new engine supplier in tandem with
introduction of next-generation engine regulations in 2026
- Issued $475 million aggregate principal amount of 2.25% FWONK
convertible notes due 2027
- Repurchased $213 million face value of 1% FWONK cash
convertible notes due 2023
- Liberty Media Acquisition Corporation to hold special meeting
of stockholders on November 14, 2022 to approve early unwind and
redemption of outstanding public shares
- Attributed to Braves Group
- Secured NL East Championship for fifth consecutive season
- 42 game sellouts and 3.2 million tickets sold for 2022 season,
highest ticket sales since 2000
“We congratulate the Atlanta Braves, who won their fifth
consecutive NL East Championship and drew record fans for Truist
Park. Formula 1 is capitalizing on its popularity, setting new
attendance records around the globe and securing important
commercial agreements, while Live Nation continues to benefit from
consumers prioritizing the thrill of live experiences,” said Greg
Maffei, Liberty Media President and CEO. “SiriusXM once again
posted solid results and returned $1.8 billion to shareholders
year-to-date.”
Discussion of Results
Unless otherwise noted, the following discussion compares
financial information for the three months ended September 30, 2022
to the same period in 2021.
LIBERTY SIRIUSXM GROUP – The following table provides the
financial results attributed to Liberty SiriusXM Group for the
third quarter of 2022. In the third quarter, approximately $10
million of corporate level selling, general and administrative
expense (including stock-based compensation expense) was allocated
to the Liberty SiriusXM Group.
3Q21
3Q22
% Change
amounts in millions
Liberty SiriusXM Group
Revenue
SiriusXM
$
2,198
$
2,280
4
%
Total Liberty SiriusXM Group
$
2,198
$
2,280
4
%
Operating Income (Loss)
SiriusXM
610
444
(27)
%
Corporate and other
(6)
(10)
(67)
%
Total Liberty SiriusXM Group
$
604
$
434
(28)
%
Adjusted OIBDA
SiriusXM
720
722
—
%
Corporate and other
(5)
(9)
(80)
%
Total Liberty SiriusXM Group
$
715
$
713
—
%
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 November 1, 2022.
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 interests in SiriusXM, which
includes its subsidiary Pandora, and Live Nation.
FORMULA ONE GROUP – The following table provides the
financial results attributed to the Formula One Group for the third
quarter of 2022. In the third quarter, the Formula One Group
incurred approximately $14 million of corporate level selling,
general and administrative expense (including stock-based
compensation expense).
“Formula 1 is delivering in 2022 across all areas including
financial results, engagement with fans and action on the track. We
look forward to a strong finish to the season with drivers and
teams battling on the track,” said Stefano Domenicali, Formula 1
President and CEO. “We were excited to announce our record-setting
24 race calendar for 2023 which includes the much-anticipated Las
Vegas Grand Prix. We also announced significant multi-year
broadcast renewals to extend our relationships at attractive rates
with ESPN in the US and in 3 key European markets with Sky.”
3Q21
3Q22
amounts in millions
Formula One Group
Revenue
Formula 1
$
668
$
715
Total Formula One Group
$
668
$
715
Operating Income (Loss)
Formula 1
$
80
$
82
Corporate and other
(12
)
(18
)
Total Formula One Group
$
68
$
64
Adjusted OIBDA
Formula 1
$
180
$
170
Corporate and other
(4
)
(12
)
Total Formula One Group
$
176
$
158
The following table provides the operating results of Formula 1
(“F1”).
F1 Operating Results
3Q21
3Q22
% Change
amounts in millions
Primary Formula 1 revenue
$
612
$
624
2
%
Other Formula 1 revenue
56
91
63
%
Total Formula 1 revenue
$
668
$
715
7
%
Operating expenses (excluding stock-based
compensation included below):
Team payments
(338)
(370)
(9)
%
Other cost of Formula 1 revenue
(111)
(124)
(12)
%
Cost of Formula 1 revenue
$
(449)
$
(494)
(10)
%
Selling, general and administrative
expenses
(39)
(51)
(31)
%
Adjusted OIBDA
$
180
$
170
(6)
%
Stock-based compensation
(4)
(1)
75
%
Depreciation and Amortization(a)
(96)
(87)
9
%
Operating income (loss)
$
80
$
82
2
%
Number of races in period
7
7
__________________________
a)
Includes $90 million and $81 million of
amortization related to purchase accounting as of September 30,
2021 and September 30, 2022, respectively, that is excluded from
calculations for purposes of team payments.
Primary F1 revenue represents the majority of F1’s revenue and
is derived from (i) race promotion revenue, (ii) media rights fees
and (iii) sponsorship fees.
There were seven races held in the third quarters of both 2022
and 2021. There are 22 events scheduled for the 2022 race calendar.
Throughout 2021 and particularly in the first half of the season,
attendance at races was limited due to the pandemic. Restrictions
on fan attendance reduced as 2021 progressed, with all races in the
second half of the year operating at either full capacity or with
fewer restrictions. The Paddock Club resumed normal operations
beginning with the Austrian Grand Prix on July 4, 2021. F1’s
results in 2022 are not being impacted by capacity limitations, and
throughout the first nine months of the 2022 season F1 has seen
strong growth in attendance in the grandstands and the Paddock
Club.
Primary F1 revenue increased in the third quarter with growth
across media rights and sponsorship, partially offset by a decline
in race promotion revenue. Race promotion revenue decreased due to
lower fees generated from the different mix of events held, with
one additional race held outside of Europe in the prior year
period. Media rights increased due to growth in F1 TV subscription
revenue and increased fees under new and renewed contractual
agreements, and sponsorship revenue increased due to the
recognition of revenue from new sponsors.
Other F1 revenue increased in the third quarter primarily due to
higher hospitality revenue generated from the Paddock Club, which
operated at one additional race in the third quarter of 2022
compared to the prior year period and has seen record attendance
year-to-date.
Operating income was flat and adjusted OIBDA(2) decreased in the
third quarter. Cost of F1 revenue increased compared to the prior
year due to the pro rata recognition of increased team payments.
Other cost of F1 revenue is largely variable in nature and mostly
relates to revenue opportunities. These costs increased in the
third quarter driven by the costs of higher hospitality attendance
in the Paddock Club and one additional Paddock Club event operated
compared to the prior year period. In addition, other cost of F1
revenue grew due to higher commissions and partner servicing costs
associated with the Primary F1 revenue streams and higher Formula 2
and Formula 3 related costs. Selling, general and administrative
expense increased in the third quarter due to higher personnel and
IT costs and increased legal and other advisory fees.
The Liberty SiriusXM Group holds an approximate 1.8% intergroup
interest (4.2 million notional shares) in the Formula One Group as
of October 31, 2022. These shares are not included in the
outstanding share count of Formula One Group in Liberty Media’s
most recent Form 10-Q. Assuming the issuance of the shares
underlying this intergroup interest, the Formula One Group
outstanding share count as of October 31, 2022 would have been 238
million.
The businesses and assets attributed to the Formula One Group
consist of Liberty Media’s subsidiary F1, its interest in Liberty
Media Acquisition Corporation, other minority investments and an
inter-group interest in the Braves Group.
BRAVES GROUP - The following table provides the financial
results attributed to the Braves Group for the third quarter of
2022. In the third quarter, approximately $5 million of corporate
level selling, general and administrative expense (including
stock-based compensation expense) was allocated to the Braves
Group.
3Q21
3Q22
amounts in millions
Braves Group
Revenue
Corporate and other
$
234
$
252
Operating Income
Corporate and other
$
30
$
8
Adjusted OIBDA
Corporate and other
$
55
$
38
The following table provides the operating results of Braves
Holdings, LLC (“Braves”).
3Q21
3Q22
% Change
amounts in millions
Baseball revenue
$
222
$
238
7
%
Development revenue
12
14
17
%
Total revenue
234
252
8
%
Operating expenses (excluding stock-based
compensation included below):
Other operating expenses
(153)
(184)
(20)
%
Selling, general and administrative
expenses
(23)
(27)
(17)
%
Adjusted OIBDA
$
58
$
41
(29)
%
Impairment, restructuring and acquisition
costs, net of recoveries
—
(5)
NM
Stock-based compensation
(2)
(2)
—
%
Depreciation and Amortization
(21)
(21)
—
%
Operating income
$
35
$
13
(63)
%
Number of home games in period
34
38
Baseball revenue is derived from two primary sources: (i)
ballpark event revenue (ticket sales, concessions, advertising
sponsorships, suites and premium seat fees) and (ii) broadcasting
revenue (including national and local broadcast rights).
Development revenue is derived from the Battery Atlanta mixed-use
facilities and primarily includes rental income.
There were 38 home games played in the third quarter of 2022,
compared to 34 games played in the prior year period. A full 162
game schedule was played in 2022.
Baseball revenue increased in the third quarter due to more home
games played and increased ticket demand at regular season games,
as well as additional special events including concerts held at the
ballpark compared to the period year period. Development revenue
increased during the third quarter due to a reduction in deferred
payment arrangements and increases in rental income from various
new lease commencements.
Operating income and adjusted OIBDA decreased in the third
quarter. Increased operating costs due to higher player salaries,
higher levels of facility and game day expenses driven by more home
games and higher attendance and increased expenses under MLB’s
revenue sharing plan more than offset revenue growth. Selling,
general and administrative expense increased primarily due to
increased special event expenses, marketing initiatives and
personnel costs.
The Formula One Group holds an approximate 11.1% intergroup
interest (6.8 million notional shares) and the Liberty SiriusXM
Group holds an approximate 2.9% intergroup interest (1.8 million
notional shares) in the Braves Group as of October 31, 2022. These
shares are not included in the outstanding share count of the
Braves Group in Liberty Media’s most recent Form 10-Q. Assuming the
issuance of the shares underlying these intergroup interests, the
Braves Group outstanding share count as of October 31, 2022 would
have been 61 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 and
certain assets and liabilities associated with the Braves’ ballpark
and mixed-use development project.
Share Repurchases
From August 1, 2022 through October 31, 2022, Liberty SiriusXM
Group repurchased approximately 276 thousand Series C Liberty
SiriusXM shares (Nasdaq: LSXMK) at an average cost per share of
$40.54 for total cash consideration of $11 million.
The total remaining repurchase authorization for Liberty Media
as of November 1, 2022 is $1.1 billion and can be applied to
repurchases of common shares of any of the Liberty Media
Corporation tracking stocks.
FOOTNOTES
1)
Liberty Media will discuss these headlines
and other matters on Liberty Media's earnings conference call that
will begin at 10:00 a.m. (E.T.) on November 4, 2022. 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, 2022.
Fair Value of Corporate Public
Holdings
(amounts in millions)
6/30/2022
9/30/2022
Liberty SiriusXM Group
Live Nation Investment(a)
5,751
5,296
Total Liberty SiriusXM Group
$
5,751
$
5,296
Formula One Group
Other Monetizable Public Holdings(b)
106
108
Total Formula One Group
$
106
$
108
Braves Group
N/A
N/A
Total Liberty Media
$
5,857
$
5,404
__________________________
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 $112 million and $212 million as of
June 30, 2022 and September 30, 2022, respectively.
b)
Represents the carrying value of other
public holdings that are accounted for at fair value. Excludes
intergroup interests.
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 Formula One Group and Liberty SiriusXM Group have attributed
interests in the Braves Group, which are generally stated in terms
of a number of shares of Liberty Braves common stock, and the
Liberty SiriusXM Group also has an attributed interest in the
Formula One Group, which is generally stated in terms of a number
of shares of Liberty Formula One common stock. Each reporting
period, the notional shares representing the intergroup interests
are marked to fair value. The changes in fair value are recorded in
the unrealized gain (loss) on the intergroup interest line item in
the unaudited attributed condensed consolidated statements of
operations. The intergroup interests will remain outstanding until
the redemption of the outstanding interests, at the discretion of
Liberty Media’s Board of Directors, through transfer of securities,
cash and/or other assets from the Braves Group or Formula One
Group, respectively, to the respective tracking stock group.
Attributed
as of September 30, 2022
Liberty
Formula
SiriusXM
Braves
One
Group
Group
Group
(amounts in millions)
Notional Shares
Value
Notional Shares
Value
Notional Shares
Value
Braves Group intergroup interests(a)
1.8
$
51
(8.6
)
$
(238
)
6.8
$
187
Formula One Group intergroup
interest(a)
4.2
$
219
(4.2
)
$
(219
)
__________________________
a)
During the three months ended September
30, 2022, Formula One Group paid $64 million and Braves Group paid
$14 million to Liberty SiriusXM Group in exchange for the
cancellation of 1.1 million notional shares and 0.5 million
notional shares, respectively, underlying the portion of their
respective inter-group interests held by Liberty SiriusXM Group
related to the repurchase of the 1.375% cash convertible notes due
2023.
Cash and Debt
The following presentation is provided to separately identify
cash and debt information.
(amounts in millions)
6/30/2022
9/30/2022
Cash and Cash Equivalents Attributable
to:
Liberty SiriusXM Group(a)
$
494
$
264
Formula One Group(b)
1,944
2,119
Braves Group(c)
207
159
Total Consolidated Cash and Cash
Equivalents (GAAP)
$
2,645
$
2,542
Debt:
SiriusXM senior notes(d)
$
8,750
$
8,750
Pandora convertible senior notes
193
193
1.375% cash convertible notes due
2023(e)
1,000
790
2.125% SiriusXM exchangeable senior
debentures due 2048(e)
387
387
2.75% SiriusXM exchangeable senior
debentures due 2049(e)
586
586
0.5% Live Nation exchangeable senior
debentures due 2050(e)
920
920
SiriusXM margin loan
875
875
Live Nation margin loan
—
—
Other subsidiary debt(f)
1,010
921
Total Attributed Liberty SiriusXM Group
Debt
$
13,721
$
13,422
Unamortized discount, fair market value
adjustment and deferred loan costs
182
92
Total Attributed Liberty SiriusXM Group
Debt (GAAP)
$
13,903
$
13,514
1% cash convertible notes due 2023(e)
240
27
2.25% convertible notes due 2027(e)
—
475
Formula 1 term loan and revolving credit
facility
2,902
2,902
Other corporate level debt
66
65
Total Attributed Formula One Group
Debt
$
3,208
$
3,469
Fair market value adjustment
172
(16
)
Total Attributed Formula One Group Debt
(GAAP)
$
3,380
$
3,453
Formula 1 leverage(g)
3.0x
2.8x
Atlanta Braves debt
602
601
Total Attributed Braves Group
Debt
$
602
$
601
Deferred loan costs
(3
)
(3
)
Total Attributed Braves Group Debt
(GAAP)
$
599
$
598
Total Liberty Media Corporation Debt
(GAAP)
$
17,882
$
17,565
__________________________
a)
Includes $126 million and $39 million of
cash held at SiriusXM as of June 30, 2022 and September 30, 2022,
respectively.
b)
Includes $935 million and $1,115 million
of cash held at Formula 1 as of June 30, 2022 and September 30,
2022, respectively.
c)
Excludes restricted cash held in reserves
pursuant to the terms of various financial obligations of $66
million and $15 million as of June 30, 2022 and September 30, 2022,
respectively.
d)
Outstanding principal amount of Senior
Notes with no reduction for the net unamortized discount.
e)
Face amount of the convertible notes and
exchangeable debentures with no fair market value adjustment.
f)
Includes SiriusXM revolving credit
facility and term loan.
g)
Net debt to covenant OIBDA ratio of F1
operating business as defined in F1’s credit facilities for
covenant calculations.
Liberty Media, SiriusXM, Formula 1 and Braves Holdings are in
compliance with their debt covenants as of September 30, 2022.
Total cash and cash equivalents attributed to Liberty SiriusXM
Group decreased $230 million in the third quarter as cash from
operations at SiriusXM and the receipt of cash from the settlement
of Braves Group and Formula One intergroup interests described
below were more than offset by net debt repayment and return of
capital at SiriusXM. Included in the cash and cash equivalents
balance attributed to Liberty SiriusXM Group at September 30, 2022
is $39 million held at SiriusXM. Although SiriusXM is a
consolidated subsidiary, it is a separate public company with a
non-controlling interest, therefore Liberty Media does not have
ready access to SiriusXM’s cash balance. Liberty SiriusXM Group
received $70 million of dividends from SiriusXM during the
quarter.
Total debt attributed to Liberty SiriusXM Group decreased $299
million during the quarter due to net debt repayment at both
SiriusXM and Liberty SiriusXM Group. During the third quarter,
Liberty SiriusXM Group paid approximately $284 million to
repurchase $210 million aggregate principal amount of the 1.375%
cash convertible senior notes due 2023. This payment was funded as
follows: (i) the receipt of $64 million cash from the Formula One
Group in exchange for the cancellation of 1.1 million notional
shares underlying a portion on the inter-group interest in the
Formula One Group held by Liberty SiriusXM Group, (ii) the receipt
of $14 million from the Braves Group in exchange for the
cancellation of 0.5 million notional shares underlying a portion of
the inter-group interest in the Braves Group held by Liberty
SiriusXM Group, and (iii) the receipt of $27 million related to the
settlement of the bond hedge and warrants related to the repurchase
of the notes. The number and type of notional shares cancelled in
the exchange was determined based on the number and type of shares
underlying the notes repurchased.
Total cash and cash equivalents attributed to the Formula One
Group increased $175 million during the quarter due to cash from
operations at F1 and net debt issuance. Total debt at Formula One
Group increased $261 million in the third quarter. On August 12,
2022, Liberty issued $475 million aggregate principal amount of
2.25% FWONK convertible notes due 2027. The notes will mature on
August 15, 2027, unless earlier redeemed, and have an initial
conversion rate of 11.6198 shares of FWONK per $1,000 principal
amount of notes, representing an initial conversion price of
approximately $86.06 for each share of FWONK. Proceeds from the
offering were used in part to repurchase $213 million aggregate
principal amount of 1% FWONK cash convertible notes due 2023.
Total cash and cash equivalents attributed to the Braves Group
decreased $48 million during the quarter due to cash used in
operations primarily due to seasonal working capital changes, as
well as debt service, partially offset by the release of restricted
cash pursuant to the terms of various financial debt arrangements.
Total debt attributed to the Braves Group was flat in the quarter
as draws from the operating credit facilities were used to
extinguish the ballpark floating rate notes.
Important Notice: Liberty Media Corporation (Nasdaq:
LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) will discuss
Liberty Media's earnings release on a conference call which will
begin at 10:00 a.m. (E. T.) on November 4, 2022. The call can be
accessed by dialing (877) 704-2829 or (215) 268-9864, passcode
13731627 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
https://www.libertymedia.com/investors/news-events/ir-calendar.
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 performance and prospects, subscriber
and financial guidance, Formula 1’s race calendar and new races,
plans regarding stock repurchases, the Battery Atlanta mixed-use
development, the Liberty Media Acquisition Corporation special
meeting 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, changes in law, including consumer protection laws, and
their enforcement, the impact of COVID-19, including on general
market conditions, the ability of Formula 1, the Braves and Live
Nation to hold live events and fan attendance at such events 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, 2022
(unaudited)
Attributed
Liberty
Formula
SiriusXM
Braves
One
Intergroup
Consolidated
Group
Group
Group
Eliminations
Liberty
amounts in millions
Assets
Current assets:
Cash and cash equivalents
$
264
159
2,119
—
2,542
Trade and other receivables, net
658
65
103
—
826
Other current assets
325
81
196
—
602
Total current assets
1,247
305
2,418
—
3,970
Intergroup interests
270
—
187
(457
)
—
Investments in affiliates, accounted for
using the equity method
885
114
29
—
1,028
Property and equipment, at cost
2,863
999
467
—
4,329
Accumulated depreciation
(1,779
)
(265
)
(103
)
—
(2,147
)
1,084
734
364
—
2,182
Intangible assets not subject to
amortization
Goodwill
15,209
176
3,956
—
19,341
FCC licenses
8,600
—
—
—
8,600
Other
1,242
124
—
—
1,366
25,051
300
3,956
—
29,307
Intangible assets subject to amortization,
net
1,132
25
3,249
—
4,406
Other assets
760
56
1,528
(2
)
2,342
Total assets
$
30,429
1,534
11,731
(459
)
43,235
Liabilities and Equity
Current liabilities:
Intergroup payable (receivable)
$
4
(7
)
3
—
—
Accounts payable and accrued
liabilities
1,315
58
267
—
1,640
Current portion of debt
381
75
43
—
499
Deferred revenue
1,381
78
471
—
1,930
Other current liabilities
65
4
26
—
95
Total current liabilities
3,146
208
810
—
4,164
Long-term debt
13,133
523
3,410
—
17,066
Deferred income tax liabilities
2,042
53
—
(2
)
2,093
Redeemable intergroup interests
—
238
219
(457
)
—
Other liabilities
544
173
151
—
868
Total liabilities
18,865
1,195
4,590
(459
)
24,191
Redeemable noncontrolling interests in
equity of subsidiary
—
—
578
—
578
Equity / Attributed net assets
8,457
339
6,538
—
15,334
Noncontrolling interests in equity of
subsidiaries
3,107
—
25
—
3,132
Total liabilities and equity
$
30,429
1,534
11,731
(459
)
43,235
LIBERTY MEDIA
CORPORATION
STATEMENT OF
OPERATIONS
Three months ended September
30, 2022 (unaudited)
Attributed
Liberty
Formula
SiriusXM
Braves
One
Consolidated
Group
Group
Group
Liberty
amounts in millions
Revenue:
Sirius XM Holdings revenue
$
2,280
—
—
2,280
Formula 1 revenue
—
—
715
715
Other revenue
—
252
—
252
Total revenue
2,280
252
715
3,247
Operating costs and expenses, including
stock-based compensation:
Cost of Sirius XM Holdings services
(exclusive of depreciation shown separately below):
Revenue share and royalties
709
—
—
709
Programming and content(1)
156
—
—
156
Customer service and billing(1)
122
—
—
122
Other(1)
54
—
—
54
Cost of Formula 1 revenue
—
—
494
494
Subscriber acquisition costs
86
—
—
86
Other operating expenses(1)
69
184
—
253
Selling, general and administrative(1)
424
33
68
525
Impairment, restructuring and acquisition
costs, net of recoveries
69
5
—
74
Depreciation and amortization
157
22
89
268
1,846
244
651
2,741
Operating income (loss)
434
8
64
506
Other income (expense):
Interest expense
(130
)
(8
)
(41
)
(179
)
Share of earnings (losses) of affiliates,
net
104
6
1
111
Realized and unrealized gains (losses) on
financial instruments, net
76
6
24
106
Gains (losses) on dilution of investment
in affiliate
2
—
—
2
Unrealized gains (losses) on intergroup
interests
(16
)
(31
)
47
—
Other, net
11
—
7
18
47
(27
)
38
58
Earnings (loss) from continuing operations
before income taxes
481
(19
)
102
564
Income tax (expense) benefit
(135
)
(3
)
8
(130
)
Net earnings (loss)
346
(22
)
110
434
Less net earnings (loss) attributable to
the noncontrolling interests
41
—
5
46
Less net earnings (loss) attributable to
redeemable noncontrolling interest
—
—
(3
)
(3
)
Net earnings (loss) attributable to
Liberty stockholders
$
305
(22
)
108
391
(1) Includes stock-based compensation
expense as follows:
Programming and content
10
—
—
10
Customer service and billing
1
—
—
1
Other
1
—
—
1
Other operating expenses
10
—
—
10
Selling, general and administrative
31
3
5
39
Stock compensation expense
$
53
3
5
61
LIBERTY MEDIA
CORPORATION
STATEMENT OF OPERATIONS Three
months ended September 30, 2021 (unaudited)
Attributed
Liberty
Formula
SiriusXM
Braves
One
Consolidated
Group
Group
Group
Liberty
amounts in millions
Revenue:
Sirius XM Holdings revenue
$
2,198
—
—
2,198
Formula 1 revenue
—
—
668
668
Other revenue
—
234
—
234
Total revenue
2,198
234
668
3,100
Operating costs and expenses, including
stock-based compensation:
Cost of Sirius XM Holdings services
(exclusive of depreciation shown separately below):
Revenue share and royalties
671
—
—
671
Programming and content(1)
142
—
—
142
Customer service and billing(1)
128
—
—
128
Other(1)
57
—
—
57
Cost of Formula 1 revenue
—
—
449
449
Subscriber acquisition costs
70
—
—
70
Other operating expenses(1)
67
154
—
221
Selling, general and administrative(1)
402
28
51
481
Impairment, restructuring and acquisition
costs, net of recoveries
(95
)
—
—
(95
)
Depreciation and amortization
152
22
100
274
1,594
204
600
2,398
Operating income (loss)
604
30
68
702
Other income (expense):
Interest expense
(130
)
(6
)
(32
)
(168
)
Share of earnings (losses) of affiliates,
net
2
9
(2
)
9
Realized and unrealized gains (losses) on
financial instruments, net
(42
)
—
2
(40
)
Gains (losses) on dilution of investment
in affiliate
142
—
—
142
Unrealized gains (losses) on intergroup
interests
20
12
(32
)
—
Other, net
(75
)
1
2
(72
)
(83
)
16
(62
)
(129
)
Earnings (loss) from continuing operations
before income taxes
521
46
6
573
Income tax (expense) benefit
(108
)
(10
)
(55
)
(173
)
Net earnings (loss)
413
36
(49
)
400
Less net earnings (loss) attributable to
the noncontrolling interests
71
—
3
74
Less net earnings (loss) attributable to
redeemable noncontrolling interest
—
—
(2
)
(2
)
Net earnings (loss) attributable to
Liberty stockholders
$
342
36
(50
)
328
(1) Includes stock-based compensation
expense as follows:
Programming and content
8
—
—
8
Customer service and billing
2
—
—
2
Other
1
—
—
1
Other operating expenses
9
—
—
9
Selling, general and administrative
34
3
8
45
Stock compensation expense
$
54
3
8
65
LIBERTY MEDIA CORPORATION
STATEMENT OF CASH FLOWS
INFORMATION
Nine months ended September
30, 2022 (unaudited)
Attributed
Liberty
Formula
SiriusXM
Braves
One
Consolidated
Group
Group
Group
Liberty
amounts in millions
Cash flows from operating activities:
Net earnings (loss)
$
1,188
29
187
1,404
Adjustments to reconcile net earnings
(loss) to net cash provided by operating activities:
Depreciation and amortization
461
57
272
790
Stock-based compensation
152
9
12
173
Non-cash impairment and restructuring
costs
68
5
—
73
Share of (earnings) loss of affiliates,
net
(140
)
(18
)
—
(158
)
Unrealized (gains) losses on intergroup
interests, net
31
(5
)
(26
)
—
Realized and unrealized (gains) losses on
financial instruments, net
(433
)
(12
)
(100
)
(545
)
Losses (gains) on dilution of investment
in affiliate
(9
)
—
—
(9
)
Deferred income tax expense (benefit)
267
(6
)
16
277
Intergroup tax allocation
80
15
(95
)
—
Intergroup tax (payments) receipts
(66
)
9
57
—
Other charges (credits), net
(11
)
(3
)
(4
)
(18
)
Changes in operating assets and
liabilities
Current and other assets
41
(52
)
(91
)
(102
)
Payables and other liabilities
(325
)
(8
)
188
(145
)
Net cash provided (used) by operating
activities
1,304
20
416
1,740
Cash flows from investing activities:
Investments in equity method affiliates
and debt and equity securities
(1
)
(5
)
(35
)
(41
)
Cash proceeds from dispositions
50
48
51
149
Cash (paid) received for acquisitions, net
of cash acquired
(136
)
—
—
(136
)
Capital expended for property and
equipment, including internal-use software and website
development
(279
)
(13
)
(263
)
(555
)
Other investing activities, net
4
—
73
77
Net cash provided (used) by investing
activities
(362
)
30
(174
)
(506
)
Cash flows from financing activities:
Borrowings of debt
3,019
135
468
3,622
Repayments of debt
(3,079
)
(235
)
(634
)
(3,948
)
Intergroup (repayments) borrowings
78
(14
)
(64
)
—
Liberty stock repurchases
(358
)
—
(37
)
(395
)
Subsidiary shares repurchased by
subsidiary
(599
)
—
—
(599
)
Cash dividends paid by subsidiary
(233
)
—
—
(233
)
Taxes paid in lieu of shares issued for
stock-based compensation
(134
)
—
25
(109
)
Other financing activities, net
30
(6
)
58
82
Net cash provided (used) by financing
activities
(1,276
)
(120
)
(184
)
(1,580
)
Effect of foreign exchange rate changes on
cash, cash equivalents and restricted cash
—
—
(13
)
(13
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(334
)
(70
)
45
(359
)
Cash, cash equivalents and restricted cash
at beginning of period
606
244
2,074
2,924
Cash, cash equivalents and restricted cash
at end of period
$
272
174
2,119
2,565
Cash and cash equivalents
$
264
159
2,119
2,542
Restricted cash included in other current
assets
—
15
—
15
Restricted cash included in other
assets
8
—
—
8
Total cash and cash equivalents and
restricted cash at end of period
$
272
174
2,119
2,565
LIBERTY MEDIA
CORPORATION
STATEMENT OF CASH FLOWS
INFORMATION
Nine months ended September
30, 2021 (unaudited)
Attributed
Liberty
Formula
SiriusXM
Braves
One
Consolidated
Group
Group
Group
Liberty
amounts in millions
Cash flows from operating activities:
Net earnings (loss)
$
883
2
29
914
Adjustments to reconcile net earnings
(loss) to net cash provided by operating activities:
Depreciation and amortization
451
56
299
806
Stock-based compensation
158
9
21
188
Non-cash impairment and restructuring
costs
24
—
—
24
Share of (earnings) loss of affiliates,
net
181
(20
)
(27
)
134
Unrealized (gains) losses on intergroup
interests, net
(52
)
15
37
—
Realized and unrealized (gains) losses on
financial instruments, net
42
(1
)
(107
)
(66
)
Losses (gains) on dilution of investment
in affiliate
(152
)
—
—
(152
)
Deferred income tax expense (benefit)
66
10
(43
)
33
Intergroup tax allocation
5
(2
)
(3
)
—
Other charges (credits), net
77
7
3
87
Changes in operating assets and
liabilities
Current and other assets
54
(52
)
(47
)
(45
)
Payables and other liabilities
(439
)
(16
)
205
(250
)
Net cash provided (used) by operating
activities
1,298
8
367
1,673
Cash flows from investing activities:
Investments in equity affiliates and debt
and equity securities
(66
)
—
(152
)
(218
)
Investment of subsidiary initial public
offering proceeds into trust account
—
—
(575
)
(575
)
Cash proceeds from dispositions
27
2
167
196
Cash (paid) received for acquisitions, net
of cash acquired
(14
)
—
—
(14
)
Capital expended for property and
equipment, including internal-use software and website
development
(244
)
(26
)
(10
)
(280
)
Proceeds from insurance recoveries
225
—
—
225
Other investing activities, net
6
8
37
51
Net cash provided (used) by investing
activities
(66
)
(16
)
(533
)
(615
)
Cash flows from financing activities:
Borrowings of debt
6,294
113
—
6,407
Repayments of debt
(5,871
)
(67
)
(191
)
(6,129
)
Liberty stock repurchases
(351
)
—
(47
)
(398
)
Subsidiary shares repurchased by
subsidiary
(1,174
)
—
—
(1,174
)
Cash dividends paid by subsidiary
(41
)
—
—
(41
)
Taxes paid in lieu of shares issued for
stock-based compensation
(91
)
—
(2
)
(93
)
Proceeds from initial public offering of
subsidiary
—
—
575
575
Settlement of intergroup call spread
(384
)
—
384
—
Other financing activities, net
(85
)
(6
)
(37
)
(128
)
Net cash provided (used) by financing
activities
(1,703
)
40
682
(981
)
Effect of foreign exchange rates on cash,
cash equivalents and restricted cash
—
—
(5
)
(5
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(471
)
32
511
72
Cash, cash equivalents and restricted cash
at beginning of period
1,008
185
1,684
2,877
Cash, cash equivalents and restricted cash
at end of period
$
537
217
2,195
2,949
Cash and cash equivalents
$
529
134
2,195
2,858
Restricted cash included in other current
assets
—
64
—
64
Restricted cash included in other
assets
8
19
—
27
Total cash and cash equivalents and
restricted cash at end of period
$
537
217
2,195
2,949
NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL
DISCLOSURES
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, 2021 and September
30, 2022, respectively.
QUARTERLY SUMMARY
(amounts in millions)
3Q21
3Q22
Liberty SiriusXM Group
Operating Income
$
604
$
434
Depreciation and amortization
152
157
Stock compensation expense
54
53
Impairment, restructuring and acquisition
costs, net of recoveries(a)
(95
)
69
Adjusted OIBDA
$
715
$
713
Formula One Group
Operating Income
$
68
$
64
Depreciation and amortization
100
89
Stock compensation expense
8
5
Adjusted OIBDA
$
176
$
158
Braves Group
Operating Income
$
30
$
8
Depreciation and amortization
22
22
Stock compensation expense
3
3
Impairment, restructuring and acquisition
costs, net of recoveries(a)
—
5
Adjusted OIBDA
$
55
$
38
Liberty Media Corporation
(Consolidated)
Operating Income
$
702
$
506
Depreciation and amortization
274
268
Stock compensation expense
65
61
Impairment, restructuring and acquisition
costs, net of recoveries(a)
(95
)
74
Adjusted OIBDA
$
946
$
909
__________________________
(a)
During the three months ended September
30, 2021, SiriusXM recorded insurance recoveries related to the
SXM-7 satellite of $80 million as well as the reversal of a $17
million liability related to the Stitcher acquisition. During the
three months ended September 30, 2022, Sirius XM recorded
impairment losses of $43 million related to the termination of
certain software projects, $20 million related to the impairment of
vacated office spaces and $5 million related to personnel
severance, and Braves Holdings recorded $5 million of impairment
losses as a result of hurricane damage at its spring training
facility in Florida. These charges have been excluded from adjusted
OIBDA.
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)
loss on extinguishment of debt, (ii) share-based payment expense,
(iii) impairment, restructuring and acquisition costs, (iv) legal
settlements/reserves and (v) other significant operating expense
(income) that do not relate to the on-going performance of
SiriusXM’s 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 SiriusXM’s 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, impairment, restructuring and acquisition
related costs, and loss on extinguishment of debt, to the extent
they occur during the period, is useful as they are significant
expenses not incurred as part of its 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.
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,
2021
2022
($ in millions)
Net income:
$
343
$
247
Add back items excluded from Adjusted
EBITDA:
Impairment, restructuring and acquisition
costs(a)
(95
)
69
Share-based payment expense
51
50
Depreciation and amortization
135
134
Interest expense
111
107
Loss on extinguishment of debt
83
—
Other expense (income)
1
3
Income tax (benefit) expense
90
110
Adjusted EBITDA
$
719
$
720
__________________________
(a)
During the three months ended September
30, 2021, SiriusXM recorded insurance recoveries related to the
SXM-7 satellite of $80 million as well as the reversal of a $17
million liability related to the Stitcher acquisition. During the
three months ended September 30, 2022, Sirius XM recorded
impairment losses of $43 million related to the termination of
certain software projects, $20 million related to the impairment of
vacated office spaces and $5 million related to personnel
severance. These charges have been excluded from adjusted
OIBDA.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221103006406/en/
Courtnee Chun (720) 875-5420
Liberty Media (NASDAQ:FWONA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Liberty Media (NASDAQ:FWONA)
Historical Stock Chart
From Jul 2023 to Jul 2024