Sign In  |  Register  |  About Sunnyvale  |  Contact Us

Sunnyvale, CA
September 01, 2020 10:10am
7-Day Forecast | Traffic
  • Search Hotels in Sunnyvale

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Liberty Media Corporation Reports Third Quarter 2022 Financial Results

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.

 

Contacts

Courtnee Chun (720) 875-5420

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 Sunnyvale.com & California Media Partners, LLC. All rights reserved.