Delaware | 001-35294 | 20-8988475 |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Exhibit No. | Name | |
99.1 | Press Release dated May 8, 2012 |
Exhibit No. | Name | |
99.1 | Press Release dated May 8, 2012 |
• | Increased STARZ and ENCORE subscriptions by 7% and 2%, respectively |
• | Concluded season two of Spartacus: Vengeance, the STARZ Original series, on March 30, with strong, sustained viewership throughout the season |
• | Debuted Magic City, the STARZ Original series, with the first three episodes available for sampling on multiple linear and digital platforms |
• | Extended Starz affiliation agreements with DIRECTV and Cox Communications |
• | Barnes & Noble announced a strategic investment by Microsoft in its digital and college businesses |
• | Entered into a forward purchase contract for 302 million shares of SiriusXM, with a forward price of $2.15 per share for a total notional amount of $650 million. If physically settled, will increase Liberty's ownership to 45.2% on an as-converted basis |
• | Repurchased $120 million of Liberty Media stock from February 1 through April 30, 2012 |
1) | Liberty Media's President and CEO, Gregory B. Maffei, will discuss these highlights and other matters in Liberty Media's earnings conference call which will begin at 11:45 a.m. (ET) on May 8, 2012. For information regarding how to access the call, please see “Important Notice” later in this document. |
2) | For a definition of adjusted OIBDA and applicable reconciliations see the accompanying schedules. |
(amounts in millions) | 12/31/2011 | 3/31/2012 | |||
SiriusXM debt and equity(1) | $ | 5,092 | 6,368 | ||
Live Nation debt and equity(2) | 350 | 392 | |||
Barnes & Noble investment(3) | 253 | 232 | |||
Non-strategic public holdings(4) | 1,187 | 1,175 | |||
Total Liberty Media | $ | 6,882 | 8,167 |
(1) | Represents the fair value of Liberty Media's debt and equity investments in SiriusXM. The fair value of Liberty Media's convertible preferred stock is calculated on an as-if-converted basis into common stock. In accordance with GAAP, Liberty Media accounts for the convertible preferred stock using the equity method of accounting and includes this in its consolidated balance sheet at historical carrying value. |
(2) | Represents the fair value of Liberty Media's debt and equity investments. 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 consolidated balance sheet at its historical carrying value. |
(3) | Represents the carrying value of Liberty Media's preferred equity investment in Barnes & Noble, which is accounted for at fair value on Liberty Media's balance sheet. |
(4) | Represents Liberty Media's non-strategic public holdings which are accounted for at fair value. |
(amounts in millions) | 12/31/2011 | 3/31/2012 | |||
Cash and liquid investments(1) (2) | $ | 2,369 | 2,234 | ||
Less: Short-term marketable securities | 299 | 319 | |||
Total Liberty Media Cash (GAAP) | $ | 2,070 | 1,915 | ||
Debt: | |||||
Bank investment facility | $ | 750 | — | ||
Starz bank facility | 505 | 505 | |||
Other | 40 | 39 | |||
Total Liberty Media Debt (GAAP) | $ | 1,295 | 544 | ||
(1) | Includes $299 million and $319 million of short-term marketable securities with an original maturity greater than 90 days as of December 31, 2011 and March 31, 2012, respectively. |
(2) | Excludes $660 million of restricted cash on December 31, 2011 associated with the bank investment facility which matured in March 2012. |
(amounts in millions) | 1Q11 | 2Q11 | 3Q11 | 4Q11 | 1Q12 | ||||||
Starz, LLC | |||||||||||
Revenue | $ | 391 | 403 | 389 | 432 | 405 | |||||
Adjusted OIBDA | 131 | 118 | 107 | 93 | 127 | ||||||
Operating income | 124 | 112 | 101 | 87 | 120 | ||||||
Subscription units - Starz | 18.8 | 19.0 | 19.0 | 19.6 | 20.1 | ||||||
Subscription units - Encore | 33.1 | 32.9 | 32.8 | 33.2 | 33.6 | ||||||
(amounts in millions) | 1Q11 | 2Q11 | 3Q11 | 4Q11 | 1Q12 | ||||||
Liberty Media | |||||||||||
Adjusted OIBDA | $ | 484 | 124 | 129 | 323 | 110 | |||||
Depreciation and amortization | (21 | ) | (20 | ) | (15 | ) | (13 | ) | (13 | ) | |
Stock compensation expense | (11 | ) | (10 | ) | (3 | ) | (8 | ) | (8 | ) | |
Gain (loss) on legal settlement | 7 | — | — | (9 | ) | — | |||||
Operating Income | $ | 459 | 94 | 111 | 293 | 89 | |||||
(amounts in millions) | 1Q11 | 2Q11 | 3Q11 | 4Q11 | 1Q12 | ||||||
Starz, LLC | |||||||||||
Adjusted OIBDA | $ | 131 | 118 | 107 | 93 | 127 | |||||
Depreciation and amortization | (5 | ) | (4 | ) | (4 | ) | (5 | ) | (4 | ) | |
Stock compensation expense | (2 | ) | (2 | ) | (2 | ) | (1 | ) | (3 | ) | |
Operating Income | $ | 124 | 112 | 101 | 87 | 120 | |||||
3/31/2012 | 12/31/2011 | ||||||
amounts in millions | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,915 | 2,070 | ||||
Trade and other receivables, net | 272 | 288 | |||||
Program rights | 524 | 442 | |||||
Short term marketable securities | 319 | 299 | |||||
Restricted cash | 29 | 709 | |||||
Financial instruments | 220 | — | |||||
Deferred income tax assets | 44 | 61 | |||||
Other current assets | 57 | 45 | |||||
Total current assets | 3,380 | 3,914 | |||||
Investments in available-for-sale securities and other cost investments | 1,831 | 1,859 | |||||
Investments in affiliates, accounted for using the equity method | 550 | 567 | |||||
Property and equipment, at cost | 506 | 504 | |||||
Accumulated depreciation | (297 | ) | (289 | ) | |||
209 | 215 | ||||||
Intangible assets not subject to amortization | 475 | 475 | |||||
Intangible assets subject to amortization, net | 131 | 135 | |||||
Program rights | 323 | 320 | |||||
Other assets, at cost, net of accumulated amortization | 223 | 238 | |||||
Total assets | $ | 7,122 | 7,723 | ||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 12 | 15 | ||||
Accrued liabilities | 322 | 313 | |||||
Current portion of debt | 4 | 754 | |||||
Deferred revenue | 133 | 63 | |||||
Other current liabilities | 76 | 85 | |||||
Total current liabilities | 547 | 1,230 | |||||
Long-term debt | 540 | 541 | |||||
Deferred income tax liabilities | 427 | 411 | |||||
Other liabilities | 287 | 290 | |||||
Total liabilities | 1,801 | 2,472 | |||||
Equity: | |||||||
Total stockholders' equity | 5,327 | 5,261 | |||||
Noncontrolling interests in equity of subsidiaries | (6 | ) | (10 | ) | |||
Total equity | 5,321 | 5,251 | |||||
Commitments and contingencies | |||||||
Total liabilities and equity | $ | 7,122 | 7,723 | ||||
Quarter ended | ||||||||||
3/31/2012 | 3/31/2011 | |||||||||
amounts in millions | ||||||||||
REVENUE: | ||||||||||
Communications and programming services | $ | 440 | 973 | |||||||
OPERATING COSTS AND EXPENSES: | ||||||||||
Operating | 246 | 393 | ||||||||
Selling, general and administrative, including stock-based compensation | 92 | 107 | ||||||||
Legal settlement | — | (7 | ) | |||||||
Depreciation and amortization | 13 | 21 | ||||||||
351 | 514 | |||||||||
Operating income | 89 | 459 | ||||||||
OTHER INCOME (EXPENSE): | ||||||||||
Interest expense | (7 | ) | (7 | ) | ||||||
Share of earnings (losses) of affiliates, net | (9 | ) | (28 | ) | ||||||
Realized and unrealized gains (losses) on financial instruments, net | 113 | 122 | ||||||||
Other, net | 26 | 23 | ||||||||
123 | 110 | |||||||||
Earnings (loss) from continuing operations before income taxes | 212 | 569 | ||||||||
Income tax (expense) benefit | (74 | ) | (237 | ) | ||||||
Net earnings (loss) | 138 | 332 | ||||||||
Less net earnings (loss) attributable to the noncontrolling interests | 1 | 1 | ||||||||
Net earnings (loss) attributable to Liberty Media Corporation shareholders | $ | 137 | 331 | |||||||
Net earnings (loss) attributable to Liberty Media Corporation shareholders: | ||||||||||
Liberty Capital common stock | $ | 137 | 279 | |||||||
Liberty Starz common stock | NA | 52 | ||||||||
$ | 137 | 331 | ||||||||
Quarter ended | ||||||||
3/31/2012 | 3/31/2011 | |||||||
amounts in millions | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net earnings | $ | 138 | 332 | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 13 | 21 | ||||||
Amortization of program rights | 179 | 155 | ||||||
Cash payments for program rights | (216 | ) | (142 | ) | ||||
Stock-based compensation | 8 | 11 | ||||||
Cash payments for stock-based compensation | (27 | ) | (3 | ) | ||||
Share of (earnings) losses of affiliates, net | 9 | 28 | ||||||
Realized and unrealized (gains) losses on financial instruments, net | (113 | ) | (122 | ) | ||||
Losses (gains) on disposition of assets, net | — | 2 | ||||||
Change in tax accounts from Liberty Interactive, net | — | 36 | ||||||
Deferred income tax expense | 35 | 177 | ||||||
Other noncash charges (credits), net | — | (375 | ) | |||||
Changes in operating assets and liabilities | ||||||||
Current and other assets | (29 | ) | (92 | ) | ||||
Payables and other liabilities | 97 | 237 | ||||||
Net cash provided (used) by operating activities | 94 | 265 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Cash proceeds from dispositions | 87 | — | ||||||
Proceeds (payments) on financial instruments, net | (183 | ) | — | |||||
Investments in and loans to cost and equity investees | (2 | ) | (19 | ) | ||||
Repayment of loans by cost and equity investees | 21 | 134 | ||||||
Capital expended for property and equipment | (2 | ) | (3 | ) | ||||
Net sales (purchases) of short term investments | (20 | ) | 165 | |||||
Net (increase) decrease in restricted cash | 680 | (79 | ) | |||||
Reattribution of cash to Liberty Interactive | — | (264 | ) | |||||
Other investing activities, net | — | 3 | ||||||
Net cash provided (used) by investing activities | 581 | (63 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Borrowings of debt | — | 1 | ||||||
Repayments of debt | (751 | ) | (19 | ) | ||||
Repurchases of Liberty common stock | (79 | ) | (80 | ) | ||||
Other financing activities, net | — | 4 | ||||||
Net cash provided (used) by financing activities | (830 | ) | (94 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (155 | ) | 108 | |||||
Cash and cash equivalents at beginning of period | 2,070 | 2,090 | ||||||
Cash and cash equivalents at end of period | $ | 1,915 | 2,198 | |||||
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