Liberty Media Corporation (“Liberty”) (Nasdaq: LCAPA, LCAPB,
LINTA, LINTB, LSTZA, LSTZB) today reported second quarter results
for Liberty Capital group, Liberty Interactive group and Liberty
Starz group. Highlights include(1):
- Grew consolidated QVC revenue by 8%
with strong international market results
- Adjusted OIBDA(2) increased 4%, but
excluding the effects of the new agreement with GE Money Bank and
QVC Italy launch, adjusted OIBDA grew 8%
- Operating income increased 4%, but
excluding the effects of the new agreement with GE Money Bank and
QVC Italy launch, operating income grew 11%
- QVC reduced the balance of the bank
credit facility by $170 million, decreasing its leverage ratio to
1.58x
- Signed a partnership deal with BBC
Worldwide to produce and distribute original content on Starz
- Increased STARZ and ENCORE
subscriptions by 10% and 3%, respectively
- Seeking to acquire a significant stake
in Barnes & Noble
“QVC had a solid quarter, with revenue growth in all markets. We
were impressed that Japan was back to growth so quickly after the
tragedies of the spring,” stated Greg Maffei, Liberty President and
CEO. “At Starz, we were pleased to announce our partnership with
BBC Worldwide and look forward to producing and distributing
original content with them. Additionally, Starz once again grew
subscribers and posted strong financial results. We continue to
pursue the split-off of Liberty Capital and Liberty Starz. Bank of
New York’s appeal of our win in Delaware Chancery Court will be
heard in the Delaware Supreme Court in mid-September and we expect
to complete the split-off in the third quarter.”
LIBERTY INTERACTIVE GROUP – Liberty Interactive group’s
revenue increased 9% to $2.2 billion and adjusted OIBDA increased
5% to $450 million, while operating income increased 5% to $288
million. The increase in revenue, adjusted OIBDA, and operating
income for the quarter was due to favorable results at QVC and the
eCommerce companies.
QVC
QVC’s consolidated net revenue increased 8% in the second
quarter to $1.9 billion, adjusted OIBDA increased 4% to $418
million and operating income increased 4% to $281 million.
“We continue to build momentum even in these uncertain economic
times with consolidated second quarter net revenue growth of 8%,”
stated Mike George, QVC President and CEO. “Each market experienced
net revenue growth in local currency including Japan which has
rebounded nicely after the tragic events experienced in late March.
Excluding our QVC Italy start up operations and the previously
discussed change in our QCard program with GE Money Bank, our
adjusted OIBDA growth would have been 8% and operating income would
have been 11%. We continue to see strong global new customer net
revenue growth and our global eCommerce revenue now represents 30%
of our worldwide revenue. We are excited about our strong product
and programming line-up for the third quarter as we expand our
presence in New York’s Fashion Night Out this September with the
exciting premieres of John Hardy jewelry and Heidi Klum
accessories. In addition, QVC will broadcast live, select programs
from the LA Live complex, featuring a range of QVC personalities
and brands, enabling us to provide a localized look and feel for
our West Coast audience during their prime television viewing
hours.”
QVC’s domestic revenue increased 3% in the second quarter to
$1.2 billion and adjusted OIBDA increased 1% to $305 million
compared to the second quarter 2010. The product mix continued to
show a steady growth in accessories, apparel and home and a decline
in jewelry sales. The average selling price increased 8% from
$48.10 to $52.02 while total units sold decreased 4% to 25.7
million. Returns as a percent of gross product revenue remained
relatively consistent to the prior year period at 18.5%. QVC.com
sales as a percentage of US sales grew from 32% in the second
quarter of 2010 to 35% in the second quarter of 2011. Overall, the
US adjusted OIBDA margin decreased 64 basis points to 24.8% for the
quarter due to the previous disclosed change in our QCard
arrangement which negatively impacted adjusted OIBDA by
approximately $9.0 million. Excluding the negative impact of this
arrangement, US adjusted OIBDA increased 4% for the second quarter
with a slight increase in adjusted OIBDA margin primarily driven by
favorable product margins.
QVC’s international revenue increased 18% in the second quarter
to $666 million from $565 million including the impact of favorable
exchange rates in each of our markets. International adjusted OIBDA
increased 13% to $113 million and adjusted OIBDA margins decreased
73 basis points for the quarter. QVC’s international second quarter
results include $13 million of adjusted OIBDA loss compared to $5
million in the prior year related to QVC Italy operations that
launched in October 2010. Excluding the effects of QVC Italy,
international adjusted OIBDA and adjusted OIBDA margins would have
increased 20% and 51 basis points, respectively, for the
quarter.
QVC UK’s revenue grew 4% in local currency in the second quarter
due primarily to increased sales in apparel and most home
categories. These increases were partially offset by declines in
fine jewelry. QVC UK’s average selling price in local currency
decreased 1% and units sold increased 5% for the second quarter.
QVC UK’s adjusted OIBDA increased 4% and the adjusted OIBDA margin
increased 59 basis points due primarily to a favorable inventory
obsolescence provision and freight costs offset somewhat by higher
distribution costs associated with the QVC Beauty Channel, QVC UK’s
second channel, being launched part time on the Freeview DTT
platform.
QVC Germany’s revenue grew 7% in local currency in the quarter
driven by increased sales of apparel, jewelry, and nutrition
products. QVC Germany’s average selling price in local currency
increased 1% for the second quarter and units sold increased 11%.
QVC Germany’s returns as a percent of gross product revenue
increased 251 basis points from the prior period due in part to a
product mix shift to higher return categories including apparel and
jewelry. QVC Germany’s adjusted OIBDA increased 21% in local
currency and the adjusted OIBDA margin increased 199 basis points
due to favorable product margins and inventory obsolescence.
QVC Japan’s revenue grew 1% in local currency in the second
quarter due to increased sales primarily in apparel. QVC Japan’s
market has rebounded after the tragic events experienced in March
with positive year over year growth achieved in May and June. QVC
Japan achieved growth of 13% in units sold for the quarter with the
average selling price in local currency declining 10%. QVC Japan’s
adjusted OIBDA in local currency declined 2% and the adjusted OIBDA
margin declined 72 basis points due to lower product margins and
higher commission expense.
QVC Italy continues the trend from the first quarter -
sequential sales growth following a softer than anticipated launch.
These sales are primarily in the home and beauty product areas. In
the quarter, QVC Italy began to invest in a strong marketing
campaign to build awareness and accelerate new customer
acquisition, and it plans to monitor these and other fixed costs as
they grow into their cost structure.
QVC’s outstanding bank and bond debt was $2.6 billion at June
30, 2011.
eCommerce Businesses
In the aggregate, the eCommerce businesses increased revenue 18%
to $347 million for the quarter. Adjusted OIBDA increased 29% to
$36 million for the quarter and operating income increased 138% to
$19 million. Each of the eCommerce businesses reported an increase
in revenue for the quarter as a result of acquisitions and
deconsolidations, increased marketing efforts and increased
conversion resulting from site optimization and broader inventory
offerings. The second quarter of 2010 included the results of a
start-up, Lockerz, which was deconsolidated in the third quarter of
2010. Excluding the results of the start-up, adjusted OIBDA
increased 11% and operating income increased 13%.
Share Repurchases
There were no repurchases of Liberty Interactive stock from May
1, 2011 through July 31, 2011. Liberty has approximately $740
million remaining under its Liberty Interactive stock repurchase
authorization.
The businesses and assets attributed to Liberty Interactive
group are engaged in, or are ownership interests in companies that
are engaged in, video and on-line commerce, and currently include
Liberty’s subsidiaries QVC, Provide Commerce, Backcountry.com,
Bodybuilding.com, Celebrate Interactive, CommerceHub, and The Right
Start, and its interests in, HSN, Tree.com, Interval Leisure Group,
Expedia and Lockerz. Liberty has identified wholly-owned QVC as the
principal operating segment of the Liberty Interactive group.
LIBERTY STARZ GROUP – The attributed financials in the
10-Q, continue to show the Liberty Starz results for the first
through the third quarters of 2010 as only the legacy Starz
Entertainment business since Starz Media was not attributed to
Liberty Starz until September 30, 2010. However since the current
results of Liberty Starz primarily represent the results of Starz
LLC, for discussion purposes in the 10-Q, this press release and as
an additional section in the slides, the historical results for the
legacy Starz Media businesses have been combined with the
historical results of the legacy Starz Entertainment business,
including the impacts of intercompany eliminations.
Starz’s revenue increased 5% to $403 million for the second
quarter, an increase of $20 million. Revenue for the second quarter
increased as a result of an $8 million increase due to a higher
effective rate for the Starz Channels’ services, $6 million due to
growth in the average number of subscriptions and $3 million in
additional ancillary revenue related to international television
distribution rights and home video for STARZ original content. The
remaining increase was primarily attributable to the home video
performance of The King’s Speech in the current period which was
partially offset by no theatrical releases of films in 2011.
Starz’s adjusted OIBDA increased 146% to $118 million, a $70
million increase, and operating income increased to $112 million, a
160% increase. The increase in adjusted OIBDA was a combination of
increased results by the legacy Starz Entertainment business and
the decisions made regarding the legacy Starz Media businesses in
the prior year. As discussed above, the reduced theatrical releases
resulted in lower revenue which was more than offset by no current
period spending on marketing and advertising associated with the
theatrical exhibition of such productions, lower production and
acquisition costs and lower home video costs. STARZ’ subscription
units increased 10% and ENCORE subscriptions increased 3% compared
to the second quarter of 2010.
“The business of Starz Entertainment continued its solid
performance in the second quarter with STARZ hitting an all-time
high of 19 million subscribers thanks in part to our investments in
a strong programming lineup of exclusive first-run movies and
quality original programming,” said Chris Albrecht, Starz, LLC,
President and CEO. “We are very proud of the agreement announced
yesterday with BBC Worldwide Productions – a deal that will
accelerate prudently our growth into STARZ originals in the years
ahead. ENCORE entered into original programming on a more targeted
scale last week as part of a series of wide-ranging ENCORE package
enhancements, including the launch of ENCORE ESPAÑOL, the company’s
first 24/7 Spanish-language premium channel. Meanwhile, the legacy
Starz Media businesses continue to reflect improved operational
performance.”
Share Repurchases
There were no repurchases of Liberty Starz stock from May 1,
2011 through July 31, 2011. Liberty has approximately $447 million
remaining under its Liberty Starz stock repurchase
authorization.
The businesses and assets attributed to Liberty Starz group are
primarily engaged in the production and distribution of video
programming and related businesses.
LIBERTY CAPITAL GROUP – Liberty Capital group’s revenue
decreased 33% to $135 million while adjusted OIBDA increased to $7
million and operating losses improved by $69 million to a $14
million loss for the second quarter. The decrease in revenue and
increase in adjusted OIBDA and operating income is primarily due to
the impact of the change in attribution of Starz Media from Liberty
Capital to Liberty Starz which was effective September 30,
2010.
Share Repurchases
From May 1, 2011 through July 31, 2011, Liberty repurchased
approximately 55,097 shares of Series A Liberty Capital common
stock at an average cost per share of $78.27 for total cash
consideration of $4.3 million. Since the reclassification of
Liberty Capital on March 4, 2008 through July 31, 2011, Liberty has
repurchased 50.9 million shares at an average cost per share of
$25.41 for total cash consideration of $1.3 billion. These
repurchases represent 39.4% of the shares outstanding. Liberty had
approximately $306.3 million remaining under its Liberty Capital
stock repurchase authorization on July 31, 2011.
The businesses and assets attributed to Liberty Capital group
are all of Liberty’s businesses and assets other than those
attributed to the Liberty Interactive group and Liberty Starz group
and include its subsidiaries Starz Media (through September 30,
2010), TruePosition, Atlanta National League Baseball Club (the
owner of the Atlanta Braves), its interests in SiriusXM and Live
Nation, and minority interests in Time Warner, and Viacom.
FOOTNOTES
1) Liberty’s President and CEO,
Gregory B. Maffei, will discuss these highlights and other matters
in Liberty’s earnings conference call which will begin at 12:00
p.m. (ET) on August 9, 2011. 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 and a definition of adjusted OIBDA margin, see the
accompanying schedules.
NOTES
Liberty Media Corporation operates and owns interests in a broad
range of video and on-line commerce, media, communications and
entertainment businesses. Those interests are currently attributed
to three tracking stock groups: Liberty Interactive group, Liberty
Starz group and Liberty Capital group.
Unless otherwise noted, the foregoing discussion compares
financial information for the three months ended June 30, 2011 to
the same period in 2010.
On September 16, 2010, Liberty Media’s board of directors
approved a change in attribution of Liberty Media’s interest in
Starz Media from its Capital group to its Starz group, effective
September 30, 2010. Unless otherwise stated, the historical results
for the three months ended June 30, 2010, and September 30, 2010
only include the historical results for the legacy Starz
Entertainment business operations, as the change in attribution of
Starz Media from Liberty Capital to Liberty Starz became effective
as of September 30, 2010. Results for the three months ended
December 31, 2010, March 31, 2011 and June 30, 2011 include the
legacy Starz Entertainment and the legacy Starz Media
businesses.
The following financial information is intended to supplement
Liberty’s consolidated statements of operations to be included in
its Form 10-Q.
Fair Value of Public Holdings and
Derivatives
(amounts in millions and include the value
of derivatives)
March 31,2011
June 30,2011
Expedia(1) 1,569
2,007 HSN(1) 593 610 Interval Leisure Group
and Tree.com(1) 288 242 Non Strategic Public Holdings(2) 1,207
1,258
Total Attributed
Liberty Interactive Group 3,657
4,117 SiriusXM debt and equity(3) 4,661
6,055 Live Nation equity(1) 362 449 Non-strategic public
holdings(4) 1,336 1,359
Total
Attributed Liberty Capital Group 6,359
7,863
(1)
Represents fair value of
Liberty’s investments. In accordance with GAAP, Liberty accounts
for these investments using the equity method of accounting and
includes these investments in its consolidated balance sheet at
their historical carrying values.
(2)
Represents Liberty’s non-strategic public holdings which are
accounted for at fair value including any associated equity
derivatives on such investments.
(3)
Represents the fair value of Liberty’s
various debt and equity investments in SiriusXM. The fair value of
Liberty’s convertible preferred stock is calculated on an
as-if-converted basis into common stock. In accordance with GAAP,
Liberty accounts for the convertible preferred stock using the
equity method of accounting and includes this in its consolidated
balance sheet at historical carrying value.
(4)
Represents Liberty’s non-strategic public holdings which are
accounted for at fair value including any associated equity
derivatives on such investments. Also includes the liability
associated with borrowed shares which totaled $1,125 million and
$1,148 million on March 31, 2011 and June 30, 2011, respectively.
Cash and Debt
The following presentation is provided to separately identify
cash and liquid investments and debt information.
(amounts in millions)
March 31,2011
June 30,2011
Cash and Liquid Investments Attributable to:
Liberty Interactive group(1) 1,350 1,360
Liberty Starz group(2) (3) 1,290 1,231 Liberty Capital group(4) (5)
1,319 1,259
Total Liberty Consolidated Cash and Liquid Investments
3,959 3,850
Less: Short-term marketable securities –
Liberty Interactive group 111 48 Short-term marketable securities –
Liberty Starz group 149 132 Long-term marketable securities –
Liberty Starz group 97 64 Short-term marketable securities –
Liberty Capital group 165
192
Total Liberty Consolidated Cash (GAAP)
3,437 3,414
Debt: Senior notes and debentures(6) 1,115
1,115 Senior exchangeable debentures(7) 3,096 3,086 QVC senior
notes(6) 2,000 2,000 QVC bank credit facility 781 611 Other 53
65
Total
Attributed Liberty Interactive Group Debt 7,045
6,877 Unamortized discount (22 ) (22 ) Fair market value
adjustment (404 ) (425 )
Total Attributed Liberty Interactive Group Debt (GAAP)
6,619 6,430
Other 81 42
Total Attributed Liberty Starz Group Debt (GAAP)
81 42
Bank investment facility 750
750
Total Attributed Liberty Capital
Group Debt (GAAP) 750
750
Total Consolidated Liberty Debt (GAAP) 7,450
7,222
(1)
Includes $111 million and $48
million of short-term marketable securities with an original
maturity greater than 90 days as of March 31, 2011 and June 30,
2011, respectively.
(2)
Includes $149 million and $132 million of short-term marketable
securities with an original maturity greater than 90 days as of
March 31, 2011 and June 30, 2011, respectively.
(3)
Includes $97 million and $64 million of marketable securities with
an original maturity greater than one year as of March 31, 2011 and
June 30, 2011, respectively, which are reflected in investments in
available-for-sale securities in Liberty’s condensed consolidated
balance sheet.
(4)
Includes $165 million and $192 million of short-term marketable
securities with an original maturity greater than 90 days as of
March 31, 2011 and June 30, 2011, respectively.
(5)
Excludes $590 million and $638 million of restricted cash on March
31, 2011 and June 30, 2011, respectively, associated with the bank
investment facility which is reflected in current restricted cash
on Liberty’s consolidated balance sheet.
(6)
Face amount of Senior Notes and Debentures with no reduction for
the unamortized discount or fair market value adjustment.
(7)
Face amount of Senior Exchangeable Debentures with no reduction for
the fair market value adjustment.
Total attributed Liberty Interactive group cash increased $10
million, primarily due to cash flow from operations at QVC. These
cash inflows were partially offset by capital expenditures,
subsidiary debt payments and intergroup tax payments. Total
attributed Interactive group debt decreased by $168 million
primarily due to debt repayments on the QVC bank credit
facility.
Total attributed Liberty Starz group cash and liquid investments
decreased $59 million, primarily as a result of intergroup tax
payments made and debt repayments, partially offset by cash flow
from operations at Starz LLC. Total attributed Starz group debt
decreased $39 million primarily as a result of payments made on the
Starz LLC Overture credit facility, which was fully repaid in the
second quarter.
Total attributed Liberty Capital group cash decreased $60
million, primarily due to a $58 million investment in Live Nation
combined with LCAPA stock repurchases.
Important Notice: Liberty Media Corporation (Nasdaq:
LCAPA, LCAPB, LINTA, LINTB, LSTZA, LSTZB,) President and CEO,
Gregory B. Maffei will discuss Liberty’s earnings release in a
conference call which will begin at 12:00 p.m. (ET) on August 9,
2011. The call can be accessed by dialing (888) 576-4387 or (719)
325-2455 at least 10 minutes prior to the start time. Replays of
the conference call can be accessed until 8:00 p.m. (ET) August 16,
2011, by dialing (888) 203-1112 or (719) 457-0820 plus the pass
code 3833741#. The call will also be broadcast live across the
Internet and archived on our website. To access the webcast go to
http://www.libertymedia.com/events. 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 prospects, international expansion, new
service and product launches including original content
programming, our ability to complete acquisition opportunities, the
impact of the Japanese tragedies, the proposed split-off of our
Liberty Capital and Liberty Starz tracking stock groups 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, competitive
issues, regulatory matters affecting our businesses, continued
access to capital on terms acceptable to Liberty Media, changes in
law and government regulations that may impact the derivative
instruments that hedge certain of our financial risks and the
satisfaction of the conditions to the proposed split-off. 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 Form 10-Q and Form 10-K, 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.
Additional Information
Nothing in this press release shall constitute a solicitation to
buy or an offer to sell shares of Liberty CapStarz, Inc. (formerly
named Liberty Splitco, Inc.), the split-off entity or any of
Liberty's tracking stocks. The offer and sale of shares in the
proposed split-off will only be made pursuant to Liberty CapStarz,
Inc.'s effective registration statement. Liberty stockholders and
other investors are urged to read the effective registration
statement on file with the SEC, including Liberty's proxy
statement/prospectus contained therein, together with Liberty
CapStarz’s most recently filed Forms 10-Q; because they contain
important information about the split-off. Copies of these SEC
filings are available free of charge at the SEC’s website
(http://www.sec.gov). Copies of the filings together with the
materials incorporated by reference therein are also available,
without charge, by directing a request to Liberty Media
Corporation, 12300 Liberty Boulevard, Englewood, Colorado 80112,
Attention: Investor Relations, Telephone: (720) 875-5408.
SUPPLEMENTAL INFORMATION
As a supplement to Liberty’s consolidated statements of
operations, to be included in its Form 10-Q, the following is a
presentation of quarterly financial information and operating
metrics on a stand-alone basis for the two largest privately held
businesses (QVC and Starz, LLC) owned by Liberty at June 30, 2011,
which Liberty has identified as its operating segments.
Results for the Liberty Starz group include the legacy Starz
Entertainment and the legacy Starz Media businesses for the three
months ended December 31, 2010, March 31, 2011 and June 30, 2011.
The historical results for the three months ended June 30, 2010,
and September 30, 2010 only include the results for the legacy
Starz Entertainment business, as the change in attribution of Starz
Media from Liberty Capital to Liberty Starz became effective as of
September 30, 2010.
Please see below for the definition of adjusted OIBDA and a
discussion of why management believes the presentation of adjusted
OIBDA provides useful information for investors. Schedule 2 to this
press release provides a reconciliation of adjusted OIBDA for each
identified entity to that entity’s operating income for the same
period, as determined under GAAP.
QUARTERLY SUMMARY
(amounts in millions) 2Q10
3Q10 4Q10
1Q11 2Q11
Liberty Interactive Group
QVC Revenue – US 1,193 1,167 1,719 1,192 1,232
Revenue – International 565 604
802
643 666 Revenue –
Total 1,758 1,771
2,521 1,835
1,898 Adjusted OIBDA – US
303 261 364 260 305 Adjusted OIBDA – International 100
108
169 103
113 Adjusted OIBDA – Total 403
369 533
363
418 Operating income – US 201 159 261 159 204
Operating income – International 69
76 132
66 77
Operating income – Total 270
235 393
225 281
Gross margin – US 37.3 % 35.9 % 33.1 % 35.1 % 37.5 % Gross
margin – International 36.9 % 37.4 %
37.7 % 36.9
% 38.0 %
Liberty Starz
Group Starz LLC(1) Revenue 308 316 400 391 403
Adjusted OIBDA 107 92 110 131 118 Operating income 102 87 70 124
112 Subscription units – Starz 17.3 17.4 18.2 18.8 19.0
Subscription units – Encore 31.9
32.0 32.8
33.1 32.9
(1)
Includes the legacy Starz
Entertainment and the legacy Starz Media businesses for the three
months ended December 31, 2010, March 31, 2011 and June 30, 2011
and only legacy Starz Entertainment results for the three months
ended June 30, 2010, and September 30, 2010 as the change in
attribution of Starz Media from Liberty Capital to Liberty Starz
became effective as of September 30, 2010.
NON-GAAP FINANCIAL MEASURES
This press release includes a presentation of adjusted OIBDA,
which is a non-GAAP financial measure, for each of Liberty’s
tracking stock groups and each of QVC (and certain of its
subsidiaries), the eCommerce businesses, and Starz, LLC, together
with a reconciliation to that group’s or entity’s operating income,
as determined under GAAP. Liberty defines adjusted OIBDA as revenue
less cost of sales, operating expenses, and selling, general and
administrative expenses (excluding stock and other equity-based
compensation) and excludes from that definition depreciation and
amortization, restructuring and impairment charges and gains on
legal settlements that are included in the measurement of operating
income pursuant to GAAP. Further, this press release includes
adjusted OIBDA margin which is also a non-GAAP financial measure.
Liberty defines adjusted OIBDA margin as adjusted OIBDA divided by
revenue.
Liberty believes adjusted OIBDA is an important indicator of the
operational strength and performance of its businesses, including
each business’ ability to service debt and fund capital
expenditures. 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 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's management
considers in assessing the results of operations and performance of
its assets. Please see the attached schedules for applicable
reconciliations.
SCHEDULE 1
The following table provides a reconciliation of adjusted OIBDA
for each of Liberty Interactive group, Liberty Starz group, and
Liberty Capital group to that group’s operating income calculated
in accordance with GAAP for the three months ended June 30, 2010,
September 30, 2010, December 31, 2010, March 31, 2011 and June 30,
2011, respectively.
QUARTERLY SUMMARY
(amounts in millions) 2Q10
3Q10 4Q10
1Q11 2Q11
Liberty Interactive Group
Adjusted OIBDA 428 373 564 378 450 Depreciation and
amortization (139 ) (141 ) (150 ) (149 ) (148 ) Stock compensation
expense (15 ) (12 )
(18 ) (16 )
(14 )
Operating Income 274
220
396 213
288
Liberty Starz Group Adjusted OIBDA 103 89 106 126 117
Depreciation and amortization (4 ) (7 ) (2 ) (5 ) (5 ) Stock
compensation expense (3 ) (5 ) (38 ) (5 ) (4 ) Impairment of
long-lived assets -- --
(4 ) --
--
Operating
Income 96 77
62
116
108 Liberty Capital Group Adjusted
OIBDA (59 ) 25 -- 358 7 Depreciation and amortization (21 ) (20 )
(15 ) (16 ) (15 ) Stock compensation expense (3 ) (8 ) (9 ) (6 ) (6
) Gain on legal settlement -- --
48
7 --
Operating
Income (Loss) (83 )
(3 ) 24
343
(14 )
The following table provides a reconciliation of adjusted OIBDA
to earnings from continuing operations before income taxes for the
quarters ended June 30, 2010 and 2011, respectively.
(amounts in millions) 2010
2011 Liberty Interactive group $
428 $ 450 Liberty Starz group
103 117 Liberty Capital group (59 )
7
Consolidated Adjusted OIBDA
$ 472
$ 574 Consolidated segment adjusted
OIBDA $ 472 $ 574 Stock-based compensation (21 ) (24 ) Depreciation
and amortization (164 ) (168 ) Interest expense (174 ) (110 ) Share
of earnings of affiliates, net 39 15 Realized and unrealized gains
(losses) on financial instruments, net (81 ) 143 Gains on
dispositions, net 25 -- Other, net 2
29
Earnings from Continuing
Operations Before Income Taxes $ 98
$ 459
SCHEDULE 2
The following table provides a reconciliation of adjusted OIBDA
for QVC (and certain of its subsidiaries), the eCommerce businesses
and Starz, LLC to that entity or group’s operating income (loss)
calculated in accordance with GAAP for the three months ended June
30, 2010, September, 30, 2010, December 31, 2010, March 31, 2011,
and June 30, 2011, respectively.
QUARTERLY SUMMARY
(amounts in millions) 2Q10
3Q10 4Q10
1Q11 2Q11
Liberty
Interactive Group
QVC QVC US
adjusted OIBDA 303 261
364
260 305 QVC UK adjusted
OIBDA 22 25 43 21 26 QVC Germany adjusted OIBDA 30 38 71 49 41 QVC
Japan adjusted OIBDA 53 54 69 43 59 QVC Italy adjusted OIBDA (5 )
(9 ) (14 )
(10 ) (13 )
QVC International adjusted OIBDA 100
108 169
103 113
Total QVC adjusted OIBDA 403 369 533 363 418
Depreciation and amortization (129 ) (129 ) (136 ) (134 ) (131 )
Stock compensation expense (4 ) (5 )
(4 ) (4 )
(6 )
Operating Income 270
235
393
225 281
eCommerce Businesses Adjusted OIBDA 28 10 47 29 36
Depreciation and amortization (11 ) (12 ) (15 ) (16 ) (16 ) Stock
compensation expense (9 ) 2
(4 ) (5 )
(1 )
Operating Income 8
--
28 8
19
Liberty Starz
Group
Starz, LLC(1) – Actual results Adjusted OIBDA
107 92 110 131 118 Depreciation and amortization (4 ) (3 ) (5 ) (5
) (4 ) Stock compensation expense (1 )
(2 ) (35 )
(2 ) (2 )
Operating Income
102 87
70
124 112
Starz(2) – For discussion
purposes Revenue 383 396 400 391 403 Adjusted OIBDA 48 83 110
131 118 Depreciation and amortization (6 ) (6 ) (5 ) (5 ) (4 )
Stock compensation expense 1 (1
) (35 ) (2
) (2 )
Operating Income
43 76
70
124 112
(1)
Includes the legacy Starz
Entertainment and the legacy Starz Media businesses for the three
months ended December 31, 2010, March 31, 2011 and June 30, 2011
and only legacy Starz Entertainment results for the three months
ended June 30, 2010 and September 30, 2010 as the change in
attribution of Starz Media from Liberty Capital to Liberty Starz
became effective as of September 30, 2010.
(2)
Includes results for the legacy Starz Entertainment and the legacy
Starz Media businesses for all periods presented, including the
impact of intercompany eliminations.
Liberty Media Corp. - Liberty Cap Class B Common Stock (MM) (NASDAQ:LCAPB)
Historical Stock Chart
From Jul 2024 to Aug 2024
Liberty Media Corp. - Liberty Cap Class B Common Stock (MM) (NASDAQ:LCAPB)
Historical Stock Chart
From Aug 2023 to Aug 2024