Liberty Media Corporation ("Liberty Media" or “Liberty”)
(NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) today
reported first quarter 2022 results. Headlines include(1):
- Attributed to Liberty SiriusXM Group
- SiriusXM reported first quarter 2022 financial results
- Revenue in first quarter 2022 of $2.19 billion; increase of 6%
year-over-year
- First quarter 2022 net income climbed to $309 million; diluted
EPS of $0.08
- Adjusted EBITDA(2) of $690 million, increase of 1%
year-over-year
- Year-to-date capital returns to SiriusXM stockholders of $1.3
billion
- SiriusXM reiterated full-year subscriber and financial guidance
on April 28th
- Liberty Media’s ownership of SiriusXM was 81.4% as of April
26th
- From February 1st through April 30th, Liberty repurchased 3.9
million LSXMA/K shares at an average price per share of $47.06 for
total cash consideration of $182 million
- Attributed to Formula One Group
- Announced Las Vegas Grand Prix beginning 2023
- F1 and Liberty Media will act as promoter for race
- Announced multiple new sponsorship agreements, including
Salesforce, MSC Cruises and Lenovo
- Secured race promotion contract with Imola until 2025
- Extended broadcast partnerships with Foxtel Group in Australia
and Canal+ in France
- From February 1st through April 30th, Liberty repurchased 348
thousand FWONA shares at an average price per share of $56.14 for
total cash consideration of $20 million
- Attributed to Braves Group
- Completed sale of minor league teams in January 2022, with
teams remaining affiliates of the Braves for future player
development
- Announced planned construction of new office building for
relocated national headquarters of Truist Securities under 15-year
lease
- Authorized committee of Liberty Media’s Board of Directors
increased remaining repurchase authorization by $1 billion on May
4th
“SiriusXM produced robust financial results while navigating
well through challenging macroeconomic conditions and supply chain
issues. Live Nation continues to experience record-breaking demand
which it is matching with compelling live experiences. The powerful
allure of Formula 1 continues, and we were excited to announce that
the Las Vegas Grand Prix will join the calendar in November 2023,”
said Greg Maffei, Liberty Media President and CEO. “We were pleased
that a new CBA was reached, and the World Series Champion Atlanta
Braves returned to the field in April and expect to play a full
162-game season.”
Discussion of Results
Unless otherwise noted, the following discussion compares
financial information for the three months ended March 31, 2022 to
the same period in 2021.
LIBERTY SIRIUSXM GROUP – The following table provides the
financial results attributed to Liberty SiriusXM Group for the
first quarter of 2022. In the first quarter, approximately $9
million of corporate level selling, general and administrative
expense (including stock-based compensation expense) was allocated
to the Liberty SiriusXM Group.
1Q21
1Q22
% Change
amounts in millions
Liberty SiriusXM Group
Revenue
SiriusXM
$
2,058
$
2,186
6
%
Total Liberty SiriusXM Group
$
2,058
$
2,186
6
%
Operating Income (Loss)
SiriusXM
237
493
108
%
Corporate and other
(8
)
(9
)
(13
)%
Total Liberty SiriusXM Group
$
229
$
484
111
%
Adjusted OIBDA(2)
SiriusXM
682
690
1
%
Corporate and other
(5
)
(5
)
—
%
Total Liberty SiriusXM Group
$
677
$
685
1
%
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 first quarter results on April 28, 2022.
For additional detail on SiriusXM’s financial results for the first
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 first
quarter of 2022. In the first quarter, the Formula One Group
incurred approximately $14 million of corporate level selling,
general and administrative expense (including stock-based
compensation expense).
“We’ve had a phenomenal start to the 2022 Formula 1 season,
building on our momentum from a successful 2021. The new cars and
regulations are delivering as we had hoped, enabling closer racing,
more overtaking, battles through the field and thrilling results.
Our events are attracting growing audiences both in person and
across all our platforms,” said Stefano Domenicali, Formula 1
President and CEO. “We were pleased to announce multiple new
sponsors around the start of the season, especially in the
technology space. We are thrilled to debut the Formula 1 Miami
Grand Prix this weekend!”
1Q21
1Q22
amounts in millions
Formula One Group
Revenue
Formula 1
$
180
$
360
Total Formula One Group
$
180
$
360
Operating Income (Loss)
Formula 1
$
(33
)
$
34
Corporate and other
(14
)
(15
)
Total Formula One Group
$
(47
)
$
19
Adjusted OIBDA
Formula 1
$
66
$
122
Corporate and other
(7
)
(10
)
Total Formula One Group
$
59
$
112
The following table provides the operating results of Formula 1
(“F1”).
F1 Operating
Results
1Q21
1Q22
% Change
amounts in millions
Primary Formula 1 revenue
$
159
$
287
81
%
Other Formula 1 revenue
21
73
248
%
Total Formula 1 revenue
$
180
$
360
100
%
Operating expenses (excluding stock-based
compensation included below):
Team payments
(44
)
(100
)
(127
)%
Other cost of Formula 1 revenue
(40
)
(95
)
(138
)%
Cost of Formula 1 revenue
$
(84
)
$
(195
)
(132
)%
Selling, general and administrative
expenses
(30
)
(43
)
(43
)%
Adjusted OIBDA
$
66
$
122
85
%
Stock-based compensation
(3
)
—
NM
Depreciation and Amortization
(96
)
(88
)
8
%
Operating income (loss)
$
(33
)
$
34
NM
Number of races in period
1
2
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 two races held in the first quarter of 2022, compared
to one race held in the first quarter of 2021. Throughout 2021 and
particularly in the first half of the season, attendance at races
was limited due to the pandemic, and the Paddock Club did not
operate in the first half. F1 does not expect its results in 2022
to be impacted by such capacity limitations, though fan attendance
continues to be assessed by relevant government authorities on a
race-by-race basis. There are currently 22 events scheduled in 2022
following the cancellation of the Russian Grand Prix and F1 is
actively evaluating alternatives.
Primary F1 revenue increased in the first quarter with growth
across race promotion, media rights and sponsorship. All three
primary F1 revenue streams grew due to the higher recognition of
race specific and season-based income with two races held in the
first quarter of 2022 compared to one race in the prior year
period. Media rights also increased due to growth in F1 TV
subscription revenue and fees under new and renewed contractual
agreements. Race promotion revenue in the first quarter of 2021
included proceeds from a one-time settlement related to the
cancellation of a race originally scheduled to commence in 2020.
Sponsorship revenue also increased in the first quarter due to the
recognition of revenue from new sponsors.
Other F1 revenue increased in the first quarter primarily due to
the impact of one additional race held in the current year and a
greater scope of activities able to be undertaken compared to the
pandemic-affected first quarter of 2021. The increase was also
driven by higher hospitality revenue generated from the Paddock
Club, which operated at both races in the first quarter of 2022 but
was unable to operate in the prior year period.
Operating income and adjusted OIBDA increased in the first
quarter. Cost of F1 revenue increased compared to the prior year
due to the impact of the pro rata recognition of team payments
across the race season with one additional race held. Other cost of
F1 revenue is largely variable in nature and mostly relates to
revenue opportunities. These costs increased in the first quarter
driven by the costs associated with two races having taken place
compared to one in the prior year period combined with higher
freight costs. Selling, general and administrative expense
increased in the first quarter due to higher personnel and IT costs
and increased legal and other advisory fees.
The Liberty SiriusXM Group holds an approximate 2.2% intergroup
interest (5.3 million notional shares) in the Formula One Group as
of April 30, 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 April 30, 2022 would have been 237 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 first quarter of
2022. In the first quarter, approximately $3 million of corporate
level selling, general and administrative expense (including
stock-based compensation expense) was allocated to the Braves
Group.
1Q21
1Q22
amounts in millions
Braves Group
Revenue
Corporate and other
$
16
$
23
Operating Income (Loss)
Corporate and other
$
(40
)
$
(40
)
Adjusted OIBDA
Corporate and other
$
(22
)
$
(19
)
The following table provides the operating results of Braves
Holdings, LLC (“Braves”).
1Q21
1Q22
% Change
amounts in millions
Baseball revenue
$
7
$
11
57
%
Development revenue
9
12
33
%
Total revenue
16
23
44
%
Operating expenses (excluding stock-based
compensation included below):
Other operating expenses
(20
)
(23
)
(15
)%
Selling, general and administrative
expenses
(16
)
(17
)
(6
)%
Adjusted OIBDA
$
(20
)
$
(17
)
(15
)%
Stock-based compensation
(2
)
(2
)
—
%
Depreciation and Amortization
(15
)
(18
)
(20
)%
Operating income (loss)
$
(37
)
$
(37
)
—
%
Number of home games in period
—
—
Baseball revenue is comprised of (i) ballpark operations (ticket
sales, concessions, corporate sales, retail, suites, premium seat
fees and postseason), (ii) local broadcast rights and (iii) shared
Major League Baseball revenue streams, including national broadcast
rights and licensing. Development revenue is derived from the
Battery Atlanta mixed-use facilities and primarily includes rental
income.
In December 2021, the Collective Bargaining Agreement (“CBA”),
which requires MLB clubs to sign players using a uniform contract,
expired and MLB commenced a lockout of the Major League players. As
a result of the lockout, the start of the 2022 regular season was
delayed and the number of spring training games played was reduced.
A new five-year Collective Bargaining Agreement was signed in March
2022 and the regular season began in April. Despite the delayed
start of the 2022 season, a full 162-game schedule is expected to
be played.
There were no home games played in the first quarter of 2022 or
the prior year period. The first Braves game of the 2022 regular
season was played on April 7th at full capacity. The 2021 regular
season began with fans in attendance at 33% capacity for the first
home game beginning April 9th, which increased to 50% capacity
beginning April 23rd and further expanded to full capacity
beginning May 7th.
Baseball revenue increased in the first quarter due to increased
capacity at spring training games, additional special events held
at the ballpark, World Series related retail revenue and an
increase in licensing revenue. Development revenue increased during
the first quarter due to a reduction in deferred payment
arrangements and increases in rental income from various new lease
commencements.
Operating loss was flat and adjusted OIBDA loss improved in the
first quarter. Revenue growth more than offset increased operating
costs due to more normalized levels of facility and spring training
game day expenses. Selling, general and administrative expense
increased primarily due to increased personnel costs, including
commissions for ticket sales due to higher demand.
The Formula One Group holds an approximate 11.0% intergroup
interest (6.8 million notional shares) and the Liberty SiriusXM
Group holds an approximate 3.7% intergroup interest (2.3 million
notional shares) in the Braves Group as of April 30, 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 April 30, 2022 would
have been 62 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 February 1, 2022 through April 30, 2022, Liberty SiriusXM
Group repurchased approximately 1.7 million Series C Liberty
SiriusXM shares (Nasdaq: LSXMK) at an average cost per share of
$46.89 for total cash consideration of $81 million and repurchased
approximately 2.1 million Series A Liberty SiriusXM shares (Nasdaq:
LSXMA) at an average cost per share of $47.20 for total cash
consideration of $101 million.
From February 1, 2022 through April 30, 2022, Formula One Group
repurchased approximately 348 thousand Series A Liberty Formula One
shares (Nasdaq: FWONA) at an average cost per share of $56.14 for
total cash consideration of $20 million.
On May 4, 2022, a duly authorized committee of Liberty Media’s
Board of Directors increased the remaining repurchase authorization
by $1 billion. The total remaining repurchase authorization for
Liberty Media as of May 4, 2022 is $1.2 billion and can be applied
to repurchases of Series A and Series C shares of any of the
Liberty Media Corporation tracking stocks.
FOOTNOTES
1)
Liberty Media will discuss these
headlines and other matters on Liberty Media's earnings conference
call that will begin at 10:00 a.m. (E.D.T.) on May 6, 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 March 31, 2022.
Fair Value of
Corporate Public Holdings
(amounts in millions)
12/31/2021
3/31/2022
Liberty SiriusXM Group
Live Nation Investment(a)
$
8,336
$
8,193
Other Monetizable Public Holdings(b)
50
—
Total Liberty SiriusXM Group
$
8,386
$
8,193
Formula One Group
Other Monetizable Public Holdings(b)
167
162
Total Formula One Group
$
167
$
162
Braves Group
N/A
N/A
Total Liberty Media
$
8,553
$
8,355
____________________
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 $89 million and $72 million
as of December 31, 2021 and March 31, 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 March 31, 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
2.3
$
67
(9.1
)
$
(256
)
6.8
$
189
Formula One Group intergroup interest
5.3
$
332
(5.3
)
$
(332
)
Cash and Debt
The following presentation is provided to separately identify
cash and debt information.
(amounts in millions)
12/31/2021
3/31/2022
Cash and Cash Equivalents Attributable
to:
Liberty SiriusXM Group(a)
$
598
$
710
Formula One Group(b)
2,074
2,265
Braves Group(c)
142
311
Total Consolidated Cash and Cash
Equivalents (GAAP)
$
2,814
$
3,286
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
1,000
2.125% SiriusXM exchangeable senior
debentures due 2048(e)
400
388
2.25% Live Nation exchangeable senior
debentures due 2048(e)
385
—
2.75% SiriusXM exchangeable senior
debentures due 2049(e)
604
586
0.5% Live Nation exchangeable senior
debentures due 2050(e)
920
920
SiriusXM margin loan
875
875
Live Nation margin loan
—
250
Other subsidiary debt(f)
—
981
Total Attributed Liberty SiriusXM Group
Debt
$
13,127
$
13,943
Unamortized discount, fair market value
adjustment and deferred loan costs
1,135
738
Total Attributed Liberty SiriusXM Group
Debt (GAAP)
$
14,262
$
14,681
1% cash convertible notes due 2023(e)
386
386
Formula 1 term loan and revolving credit
facility
2,902
2,902
Other corporate level debt
69
68
Total Attributed Formula One Group
Debt
$
3,357
$
3,356
Fair market value adjustment
274
339
Total Attributed Formula One Group Debt
(GAAP)
$
3,631
$
3,695
Formula 1 leverage(g)
4.4x
3.7x
Atlanta Braves debt
700
678
Total Attributed Braves Group
Debt
$
700
$
678
Deferred loan costs
(3
)
(3
)
Total Attributed Braves Group Debt
(GAAP)
$
697
$
675
Total Liberty Media Corporation Debt
(GAAP)
$
18,590
$
19,051
____________________
a)
Includes $191 million and $76
million of cash held at SiriusXM as of December 31, 2021 and March
31, 2022, respectively.
b)
Includes $709 million and $835
million of cash held at Formula 1 as of December 31, 2021 and March
31, 2022, respectively.
c)
Excludes restricted cash held in
reserves pursuant to the terms of various financial obligations of
$102 million and $26 million as of December 31, 2021 and March 31,
2022, respectively.
d)
Outstanding principal amount of
Senior Notes with no reduction for the net unamortized
discount.
e)
Face amount of the cash
convertible notes and exchangeable debentures with no fair market
value adjustment.
f)
Includes SiriusXM revolving
credit facility.
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 March 31, 2022.
Total cash and cash equivalents attributed to Liberty SiriusXM
Group increased $112 million in the first quarter as cash from
operations, net borrowings at SiriusXM and the disposition of
marketable securities more than offset return of capital at both
SiriusXM and Liberty SiriusXM Group and net debt repayment at
Liberty SiriusXM. Included in the cash and cash equivalents balance
attributed to Liberty SiriusXM Group at March 31, 2022 is $76
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.
On February 1, 2022, SiriusXM announced they would pay a special
cash dividend of $0.25 per share for an aggregate dividend of
approximately $1 billion. The payment date of the special cash
dividend was February 25, 2022, and Liberty SiriusXM received
approximately $770 million of proceeds, net of extraordinary cash
distributions of approximately $12 million paid to holders of its
2.125% SiriusXM exchangeable senior debentures due 2048 and
approximately $18 million paid to holders of its 2.75% SiriusXM
exchangeable senior debentures due 2049. Liberty SiriusXM Group
received a total of $872 million in gross dividends from SiriusXM
during the first quarter, including $70 million of proceeds from
the regular quarterly dividend as well as the special cash dividend
received in February.
Total debt attributed to Liberty SiriusXM Group increased $816
million during the quarter due to SiriusXM borrowing under its
revolving credit facility, partially offset by net debt repayment
at Liberty SiriusXM.
In October 2021, Liberty Media issued a notice of redemption in
full for the 2.25% Live Nation exchangeable senior debentures due
2048 on or before December 1, 2021. All holders exercised their
right to exchange the debentures in the fourth quarter. On January
21, 2022, the exchanges of debentures were settled in cash for $664
million funded with cash on hand and incremental borrowing under
Liberty’s margin loan facilities.
Total cash and cash equivalents attributed to the Formula One
Group increased $191 million during the quarter due to cash from
operations at F1 and short-term marketable securities which matured
during the quarter and are now reflected in cash equivalents. Total
debt at Formula One Group was flat in the first quarter.
Total cash and cash equivalents attributed to the Braves Group
increased $169 million during the quarter as net debt repayment was
more than offset by proceeds from the minor league sale and cash
from operations, including the release of restricted cash held in
reserves pursuant to the terms of various financial obligations.
Total debt attributed to the Braves Group decreased $22 million in
the quarter driven by repayment under the Braves team revolver. The
second phase of the Battery Atlanta mixed-use development is
expected to be completed in the second quarter of 2022. An
additional office building will be constructed at Five Ballpark
Center that will house the national headquarters for Truist
Securities under a 15-year lease. Construction is expected to begin
in the second half of 2022 and the Braves’ estimated cash
contribution will be modest.
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.D.T.) on May 6, 2022. The call can be
accessed by dialing (800) 458-4121 or (720) 543-0206, passcode
3276965 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,
capacity limitations, plans regarding stock repurchases, the
Battery Atlanta mixed-use development 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
March 31, 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
$
710
311
2,265
—
3,286
Trade and other receivables, net
650
43
148
—
841
Other current assets
789
45
209
—
1,043
Total current assets
2,149
399
2,622
—
5,170
Intergroup interests
399
—
189
(588
)
—
Investments in affiliates, accounted for
using the equity method
806
114
27
—
947
Property and equipment, at cost
2,840
998
217
—
4,055
Accumulated depreciation
(1,722
)
(240
)
(92
)
—
(2,054
)
1,118
758
125
—
2,001
Intangible assets not subject to
amortization
Goodwill
15,140
176
3,956
—
19,272
FCC licenses
8,600
—
—
—
8,600
Other
1,242
124
—
—
1,366
24,982
300
3,956
—
29,238
Intangible assets subject to amortization,
net
1,236
24
3,420
—
4,680
Other assets
946
68
1,514
(45
)
2,483
Total assets
$
31,636
1,663
11,853
(633
)
44,519
Liabilities and Equity
Current liabilities:
Intergroup payable (receivable)
$
28
(23
)
(5
)
—
—
Accounts payable and accrued
liabilities
1,229
58
225
—
1,512
Current portion of debt
1,669
156
759
—
2,584
Deferred revenue
1,451
166
526
—
2,143
Other current liabilities
82
4
37
—
123
Total current liabilities
4,459
361
1,542
—
6,362
Long-term debt
13,012
519
2,936
—
16,467
Deferred income tax liabilities
2,221
54
—
(45
)
2,230
Redeemable intergroup interests
—
256
332
(588
)
—
Other liabilities
587
183
162
—
932
Total liabilities
20,279
1,373
4,972
(633
)
25,991
Redeemable noncontrolling interests in
equity of subsidiary
—
—
575
—
575
Equity / Attributed net assets
8,092
290
6,281
—
14,663
Noncontrolling interests in equity of
subsidiaries
3,265
—
25
—
3,290
Total liabilities and equity
$
31,636
1,663
11,853
(633
)
44,519
LIBERTY MEDIA
CORPORATION
STATEMENT OF
OPERATIONS
Three months ended March 31,
2022 (unaudited)
Attributed
Liberty
Formula
SiriusXM
Braves
One
Consolidated
Group
Group
Group
Liberty
amounts in millions
Revenue:
Sirius XM Holdings revenue
$
2,186
—
—
2,186
Formula 1 revenue
—
—
360
360
Other revenue
—
23
—
23
Total revenue
2,186
23
360
2,569
Operating costs and expenses, including
stock-based compensation:
Cost of Sirius XM Holdings services
(exclusive of depreciation shown separately below):
Revenue share and royalties
670
—
—
670
Programming and content(1)
140
—
—
140
Customer service and billing(1)
125
—
—
125
Other(1)
54
—
—
54
Cost of Formula 1 revenue
—
—
195
195
Subscriber acquisition costs
90
—
—
90
Other operating expenses(1)
67
23
—
90
Selling, general and administrative(1)
404
22
56
482
Depreciation and amortization
152
18
90
260
1,702
63
341
2,106
Operating income (loss)
484
(40
)
19
463
Other income (expense):
Interest expense
(122
)
(6
)
(29
)
(157
)
Share of earnings (losses) of affiliates,
net
(18
)
4
—
(14
)
Realized and unrealized gains (losses) on
financial instruments, net
61
5
(7
)
59
Unrealized gains (losses) on intergroup
interests
20
1
(21
)
—
Other, net
20
20
5
45
(39
)
24
(52
)
(67
)
Earnings (loss) from continuing operations
before income taxes
445
(16
)
(33
)
396
Income tax (expense) benefit
(101
)
3
(2
)
(100
)
Net earnings (loss)
344
(13
)
(35
)
296
Less net earnings (loss) attributable to
the noncontrolling interests
56
—
9
65
Less net earnings (loss) attributable to
redeemable noncontrolling interest
—
—
(9
)
(9
)
Net earnings (loss) attributable to
Liberty stockholders
$
288
(13
)
(35
)
240
(1) Includes stock-based compensation
expense as follows:
Programming and content
8
—
—
8
Customer service and billing
1
—
—
1
Other
1
—
—
1
Other operating expenses
8
—
—
8
Selling, general and administrative
31
3
3
37
Stock compensation expense
$
49
3
3
55
LIBERTY MEDIA
CORPORATION
STATEMENT OF
OPERATIONS
Three months ended March 31,
2021 (unaudited)
Attributed
Liberty
Formula
SiriusXM
Braves
One
Consolidated
Group
Group
Group
Liberty
amounts in millions
Revenue:
Sirius XM Holdings revenue
$
2,058
—
—
2,058
Formula 1 revenue
—
—
180
180
Other revenue
—
16
—
16
Total revenue
2,058
16
180
2,254
Operating costs and expenses, including
stock-based compensation:
Cost of Sirius XM Holdings services
(exclusive of depreciation shown separately below):
Revenue share and royalties
640
—
—
640
Programming and content(1)
130
—
—
130
Customer service and billing(1)
117
—
—
117
Other(1)
52
—
—
52
Cost of Formula 1 revenue
—
—
84
84
Subscriber acquisition costs
86
—
—
86
Other operating expenses(1)
64
20
—
84
Selling, general and administrative(1)
346
21
43
410
Impairment, restructuring and acquisition
costs, net of recoveries
245
—
—
245
Depreciation and amortization
149
15
100
264
1,829
56
227
2,112
Operating income (loss)
229
(40
)
(47
)
142
Other income (expense):
Interest expense
(120
)
(6
)
(32
)
(158
)
Share of earnings (losses) of affiliates,
net
(113
)
3
15
(95
)
Realized and unrealized gains (losses) on
financial instruments, net
(86
)
2
35
(49
)
Unrealized gains (losses) on intergroup
interests
10
(28
)
18
—
Other, net
11
(1
)
5
15
(298
)
(30
)
41
(287
)
Earnings (loss) from continuing operations
before income taxes
(69
)
(70
)
(6
)
(145
)
Income tax (expense) benefit
107
11
13
131
Net earnings (loss)
38
(59
)
7
(14
)
Less net earnings (loss) attributable to
the noncontrolling interests
49
—
—
49
Less net earnings (loss) attributable to
redeemable noncontrolling interest
—
—
53
53
Net earnings (loss) attributable to
Liberty stockholders
$
(11
)
(59
)
(46
)
(116
)
(1) Includes stock-based compensation
expense as follows:
Programming and content
8
—
—
8
Customer service and billing
1
—
—
1
Other
1
—
—
1
Other operating expenses
10
—
—
10
Selling, general and administrative
34
3
6
43
Stock compensation expense
$
54
3
6
63
LIBERTY MEDIA
CORPORATION
STATEMENT OF CASH FLOWS
INFORMATION
Three months ended March 31,
2022 (unaudited)
Attributed
Liberty
Formula
SiriusXM
Braves
One
Consolidated
Group
Group
Group
Liberty
amounts in millions
Cash flows from operating activities:
Net earnings (loss)
$
344
(13
)
(35
)
296
Adjustments to reconcile net earnings
(loss) to net cash provided by operating activities:
Depreciation and amortization
152
18
90
260
Stock-based compensation
49
3
3
55
Share of (earnings) loss of affiliates,
net
18
(4
)
—
14
Unrealized (gains) losses on intergroup
interests, net
(20
)
(1
)
21
—
Realized and unrealized (gains) losses on
financial instruments, net
(61
)
(5
)
7
(59
)
Deferred income tax expense (benefit)
39
(10
)
26
55
Intergroup tax allocation
42
7
(49
)
—
Other charges (credits), net
(11
)
(20
)
(2
)
(33
)
Changes in operating assets and
liabilities
Current and other assets
21
23
(158
)
(114
)
Payables and other liabilities
(238
)
83
232
77
Net cash provided (used) by operating
activities
335
81
135
551
Cash flows from investing activities:
Investments in equity method affiliates
and debt and equity securities
(1
)
(5
)
(3
)
(9
)
Cash proceeds from dispositions
50
47
—
97
Capital expended for property and
equipment, including internal-use software and website
development
(97
)
(4
)
(10
)
(111
)
Other investing activities, net
(42
)
—
76
34
Net cash provided (used) by investing
activities
(90
)
38
63
11
Cash flows from financing activities:
Borrowings of debt
1,740
15
—
1,755
Repayments of debt
(1,204
)
(37
)
(1
)
(1,242
)
Liberty stock repurchases
(202
)
—
(37
)
(239
)
Subsidiary shares repurchased by
subsidiary
(206
)
—
—
(206
)
Cash dividends paid by subsidiary
(201
)
—
—
(201
)
Taxes paid in lieu of shares issued for
stock-based compensation
(61
)
—
26
(35
)
Other financing activities, net
1
(4
)
7
4
Net cash provided (used) by financing
activities
(133
)
(26
)
(5
)
(164
)
Effect of foreign exchange rate changes on
cash, cash equivalents and restricted cash
—
—
(2
)
(2
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
112
93
191
396
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
$
718
337
2,265
3,320
Cash and cash equivalents
$
710
311
2,265
3,286
Restricted cash included in other current
assets
—
12
—
12
Restricted cash included in other
assets
8
14
—
22
Total cash and cash equivalents and
restricted cash at end of period
$
718
337
2,265
3,320
LIBERTY MEDIA
CORPORATION
STATEMENT OF CASH FLOWS
INFORMATION
Three months ended March 31,
2021 (unaudited)
Attributed
Liberty
Formula
SiriusXM
Braves
One
Consolidated
Group
Group
Group
Liberty
amounts in millions
Cash flows from operating activities:
Net earnings (loss)
$
38
(59
)
7
(14
)
Adjustments to reconcile net earnings
(loss) to net cash provided by operating activities:
Depreciation and amortization
149
15
100
264
Stock-based compensation
54
3
6
63
Non-cash impairment and restructuring
costs
245
—
—
245
Share of (earnings) loss of affiliates,
net
113
(3
)
(15
)
95
Unrealized (gains) losses on intergroup
interests, net
(10
)
28
(18
)
—
Realized and unrealized (gains) losses on
financial instruments, net
86
(2
)
(35
)
49
Deferred income tax expense (benefit)
(121
)
(7
)
(15
)
(143
)
Intergroup tax allocation
1
(3
)
2
—
Other charges (credits), net
(3
)
—
2
(1
)
Changes in operating assets and
liabilities
Current and other assets
58
36
(102
)
(8
)
Payables and other liabilities
(339
)
34
252
(53
)
Net cash provided (used) by operating
activities
271
42
184
497
Cash flows from investing activities:
Investments in equity affiliates and debt
and equity securities
(5
)
—
(53
)
(58
)
Investment of subsidiary initial public
offering proceeds into trust account
—
—
(575
)
(575
)
Capital expended for property and
equipment, including internal-use software and website
development
(78
)
(10
)
(3
)
(91
)
Other investing activities, net
8
—
—
8
Net cash provided (used) by investing
activities
(75
)
(10
)
(631
)
(716
)
Cash flows from financing activities:
Borrowings of debt
1,083
8
(1
)
1,090
Repayments of debt
(585
)
(6
)
(2
)
(593
)
Liberty stock repurchases
(107
)
—
—
(107
)
Subsidiary shares repurchased by
subsidiary
(522
)
—
—
(522
)
Cash dividends paid by subsidiary
(14
)
—
—
(14
)
Taxes paid in lieu of shares issued for
stock-based compensation
(21
)
—
(1
)
(22
)
Proceeds from initial public offering of
subsidiary
—
—
575
575
Other financing activities, net
—
(1
)
(23
)
(24
)
Net cash provided (used) by financing
activities
(166
)
1
548
383
Effect of foreign exchange rates on cash,
cash equivalents and restricted cash
—
—
(2
)
(2
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
30
33
99
162
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
$
1,038
218
1,783
3,039
Cash and cash equivalents
$
1,030
181
1,783
2,994
Restricted cash included in other current
assets
—
19
—
19
Restricted cash included in other
assets
8
18
—
26
Total cash and cash equivalents and
restricted cash at end of period
$
1,038
218
1,783
3,039
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 March 31, 2021 and March 31, 2022,
respectively.
QUARTERLY
SUMMARY
(amounts in millions)
1Q21
1Q22
Liberty SiriusXM Group
Operating Income
$
229
$
484
Depreciation and amortization
149
152
Stock compensation expense
54
49
Impairment, restructuring and acquisition
costs, net of recoveries (a)
245
—
Adjusted OIBDA
$
677
$
685
Formula One Group
Operating Income (Loss)
$
(47
)
$
19
Depreciation and amortization
100
90
Stock compensation expense
6
3
Adjusted OIBDA
$
59
$
112
Braves Group
Operating Income (Loss)
$
(40
)
$
(40
)
Depreciation and amortization
15
18
Stock compensation expense
3
3
Adjusted OIBDA
$
(22
)
$
(19
)
Liberty Media Corporation
(Consolidated)
Operating Income
$
142
$
463
Depreciation and amortization
264
260
Stock compensation expense
63
55
Impairment, restructuring and acquisition
costs, net of recoveries (a)
245
—
Adjusted OIBDA
$
714
$
778
____________________
(a)
Includes a $220 million
impairment to the carrying value of SiriusXM’s SXM-7 satellite
after it experienced failures of certain payload units during
in-orbit testing, and restructuring costs of $25 million resulting
from the termination of SiriusXM’s leased office space during the
three months ended March 31, 2021. 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
March 31,
2021
2022
($ in millions)
Net income:
$
219
$
309
Add back items excluded from Adjusted
EBITDA:
Impairment, restructuring and acquisition
costs(a)
245
—
Share-based payment expense
51
45
Depreciation and amortization
132
135
Interest expense
100
103
Other expense (income)
(3
)
(2
)
Income tax (benefit) expense
(62
)
100
Adjusted EBITDA
$
682
$
690
____________________
(a)
Includes a $220 million
impairment to the carrying value of SiriusXM’s SXM-7 satellite
after it experienced failures of certain payload units during
in-orbit testing, and restructuring costs of $25 million resulting
from the termination of SiriusXM’s leased office space during the
three months ended March 31, 2021. These charges have been excluded
from adjusted OIBDA.
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version on businesswire.com: https://www.businesswire.com/news/home/20220505006256/en/
Courtnee Chun, (720) 875-5420
Liberty Media (NASDAQ:FWONA)
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