Liberty Media Corporation (“Liberty Media” or “Liberty”)
(NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, LLYVA, LLYVK) today
reported first quarter 2024 results. Headlines include(1):
- Attributed to Liberty SiriusXM Group
- SiriusXM reported first quarter 2024 operating and financial
results
- First quarter 2024 revenue of $2.16 billion; up 1%
year-over-year
- Ad revenue up 7% year-over-year
- Net income of $265 million; diluted EPS of $0.07
- Adjusted EBITDA(2) of $650 million; up 4% year-over-year
- Free cash flow(2) of $132 million; down 8% year-over-year
- SiriusXM reiterated 2024 financial guidance
- Liberty Media’s ownership of SiriusXM was 83.3% as of April
26th
- On schedule to complete planned combination of Liberty SiriusXM
Group and SiriusXM early third quarter 2024
- Repaid $65 million under the SiriusXM margin loan in first
quarter
- Attributed to Formula One Group
- Announced planned acquisition of MotoGP and expect to complete
transaction by year-end 2024
- F1 announced 24-race calendar for 2025 which will mark its 75th
anniversary
- Expanded partnership with DHL as Global Partner and secured new
sponsorship deals at F1, including Globant as Official Partner and
McDonald’s as Regional Partner in Latin America
- F1 secured new broadcast deal with beIN SPORTS across MENA
through 2033, extended partnership with Viaplay in Netherlands and
Nordic countries through 2029 and signed FanCode in India through
2025
- Quint announced as official experiences and travel provider to
USGA and launched new partnerships, including with WNBA, X Games
and USA Basketball
- Attributed to Liberty Live Group
- Fair value of Live Nation investment was $7.4 billion as of
March 31st
“We were thrilled to announce Liberty’s planned acquisition of
MotoGP, adding to our attractive assets in the premium live event
and sports industries. We look forward to bringing this
exhilarating sport to a wider global audience,” said Greg Maffei,
Liberty Media President and CEO. “Formula 1 kicked off the 2024
season with over 1 million fans in attendance across the first five
races. At SiriusXM, they delivered solid revenue and adjusted
EBITDA growth and are focused on improving subscriber results with
enhancements to content and digital innovation. The planned merger
with Liberty SiriusXM is on track to be completed at the beginning
of the third quarter. Live Nation has already sold 86 million
concert tickets for an expected record-setting 2024.”
Corporate Updates
On January 2nd, Liberty closed the acquisition of Quint for $205
million total cash consideration, net of Quint cash acquired.
On March 29th, Liberty agreed to acquire MotoGP for €3.5 billion
equity value. MotoGP management is expected to retain 14% equity in
the business with the remaining equity consideration comprised of a
mix of cash and Series C Liberty Formula One common stock. The
acquisition is expected to be completed by year-end 2024 and is
subject to the receipt of clearances and approvals by competition
and foreign investment law authorities in various
jurisdictions.
Discussion of Results
Unless otherwise noted, the following discussion compares
financial information for the three months ended March 31, 2024 to
the same period in 2023.
LIBERTY SIRIUSXM GROUP – The following table provides the
financial results attributed to Liberty SiriusXM Group for the
first quarter of 2024. In the first quarter, $13 million of
corporate level selling, general and administrative expense
(including stock-based compensation expense) was allocated to
Liberty SiriusXM Group.
1Q23
1Q24
% Change
amounts in millions
Liberty SiriusXM Group
Revenue
SiriusXM
$
2,144
$
2,162
1
%
Total Liberty SiriusXM Group
$
2,144
$
2,162
1
%
Operating Income (Loss)
SiriusXM
387
422
9
%
Corporate and other
(14
)
(13
)
7
%
Total Liberty SiriusXM Group
$
373
$
409
10
%
Adjusted OIBDA (Loss)
SiriusXM
625
635
2
%
Corporate and other
(11
)
(10
)
9
%
Total Liberty SiriusXM Group
$
614
$
625
2
%
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 30, 2024.
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 interest in SiriusXM, which
includes its subsidiary Pandora.
FORMULA ONE GROUP – The following table provides the
financial results attributed to Formula One Group for the first
quarter of 2024. In the first quarter, Formula One Group incurred
$23 million of corporate level selling, general and administrative
expense (including stock-based compensation expense).
1Q23
1Q24
amounts in millions
Formula One Group
Revenue
Formula 1
$
381
$
553
Corporate and other
—
44
Intergroup elimination
—
(10
)
Total Formula One Group
$
381
$
587
Operating Income (Loss)
Formula 1
$
35
$
136
Corporate and other
(19
)
(41
)
Total Formula One Group
$
16
$
95
Adjusted OIBDA (Loss)
Formula 1
$
117
$
208
Corporate and other
(12
)
(6
)
Total Formula One Group
$
105
$
202
F1 Operating Results
“The 2024 season is underway, including our return to China for
the first time since 2019 and our third year in Miami which saw
another incredible event demonstrating the growing strength of F1
in the US. We are seeing continued momentum both in financial
performance and amplification of our fanbase, including through
expanding our methods of fan engagement. We have already announced
our 24-race calendar for 2025, a landmark year that will mark the
75th anniversary of the FIA Formula One World Championship,” said
Stefano Domenicali, Formula 1 President & CEO. “We recently
published our first ever Impact Report and are proud to highlight
that we are on track to reach our net zero target by 2030 and
continue to prioritize our diversity and inclusion efforts with
programs like the F1 Academy Discover Your Drive, STEM Challenge
Days and more.”
The following table provides the operating results of Formula 1
(“F1”).
1Q23
1Q24
% Change
amounts in millions
Primary Formula 1 revenue
$
314
$
463
47
%
Other Formula 1 revenue
67
90
34
%
Total Formula 1 revenue
$
381
$
553
45
%
Operating expenses (excluding stock-based
compensation):
Team payments
(112
)
(163
)
(46
)%
Other cost of Formula 1 revenue
(94
)
(123
)
(31
)%
Cost of Formula 1 revenue
$
(206
)
$
(286
)
(39
)%
Selling, general and administrative
expenses
(58
)
(59
)
(2
)%
Adjusted OIBDA
$
117
$
208
78
%
Depreciation and Amortization(a)
(82
)
(72
)
12
%
Operating income (loss)
$
35
$
136
289
%
Number of races in period
2
3
a)
Includes $74 million and $61 million of
amortization related to purchase accounting for the periods ended
March 31, 2023 and March 31, 2024, 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 three races held in the first quarter of 2024,
compared to two races held in the first quarter of 2023. There are
24 events scheduled for the 2024 race calendar.
Primary F1 revenue increased in the first quarter with growth
across race promotion, media rights and sponsorship partly driven
by one more race held in the current period, which resulted in a
greater proportion of season-based revenue recognized. Race
promotion revenue also increased due to fees from the additional
race held in the period and contractual increases in fees. Media
rights revenue also benefited from contractual increases in fees,
higher fees from new and renewed contractual agreements and
continued growth in F1 TV subscription revenue. Sponsorship revenue
also increased due to recognition of revenue from new sponsors and
growth in revenue from existing contracts. Other F1 revenue
increased in the first quarter primarily driven by the sale of new
F2 cars and associated parts at the start of the new F2 vehicle
cycle, higher hospitality and experiences revenue and higher
freight income driven by the additional race held in the current
period.
Operating income and Adjusted OIBDA(2) increased in the first
quarter. Team payments were higher compared to the prior year due
to the pro rata recognition of payments across the race season with
one more race held, as well as an expectation of increased team
payments for the full year. Other cost of F1 revenue is largely
variable in nature and is mostly derived from servicing both
Primary and Other F1 revenue opportunities. These costs increased
due to the cost of supplying the new F2 cars and associated parts,
increased commissions and partner servicing costs associated with
higher Primary F1 revenue streams as well as increased freight,
travel, technical, digital and FIA regulatory costs from the
additional race. Other cost of F1 revenue in the first quarter was
also impacted by lease costs for the Las Vegas Grand Prix Plaza,
the 39-acre site in Las Vegas. Selling, general and administrative
expense was relatively flat during the quarter.
Corporate and Other Operating
Results
Liberty closed the Quint acquisition on January 2nd and began
consolidating Quint results within the Corporate and Other segment.
Corporate and Other revenue increased in the first quarter due to
the Quint acquisition and $7 million of rental income related to
the Las Vegas Grand Prix Plaza. Quint’s revenue is seasonal around
its largest events, which are generally during the second and
fourth quarters with the first quarter having modest event
activity. Corporate and Other Adjusted OIBDA for the first quarter
of 2024 includes the rental income related to the Las Vegas Grand
Prix Plaza, Quint results and other corporate overhead.
The businesses and assets attributed to Formula One Group
consist primarily of Liberty Media’s subsidiaries, F1 and
Quint.
LIBERTY LIVE GROUP – In the first quarter, $2 million of
corporate level selling, general and administrative expense
(including stock-based compensation expense) was allocated to
Liberty Live Group.
The businesses and assets attributed to Liberty Live Group
consist of Liberty Media’s interest in Live Nation and other
minority investments.
Share Repurchases
There were no repurchases of Liberty Media’s common stock from
February 1, 2024 through April 30, 2024. The total remaining
repurchase authorization for Liberty Media as of May 1, 2024 is
$1.1 billion and can be applied to repurchases of common shares of
any of the Liberty Media 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 May 8, 2024. 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 and free cash flow
(as defined by SiriusXM) and applicable reconciliations see the
accompanying schedules.
NOTES
The following financial information with respect to Liberty
Media's equity affiliates, available for sale securities, cash and
debt 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, 2024.
Fair Value of Corporate Public
Holdings
(amounts in millions)
12/31/2023
3/31/2024
Liberty SiriusXM Group
N/A
N/A
Formula One Group
Other Monetizable Public Holdings(a)
—
50
Total Formula One Group
$
—
$
50
Liberty Live Group
Live Nation Investment(b)
6,519
7,366
Other Monetizable Public Holdings(a)
113
125
Total Liberty Live Group
$
6,632
$
7,491
Total Liberty Media
$
6,632
$
7,541
a)
Represents the carrying value of other
public holdings that are accounted for at fair value. Formula One
Group purchased $50 million of time deposits during the first
quarter of 2024 which are classified as short term marketable
securities.
b)
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 $307 million and $290 million as of
December 31, 2023 and March 31, 2024, respectively.
Cash and Debt
The following presentation is provided to separately identify
cash and debt information.
(amounts in millions)
12/31/2023
3/31/2024
Cash and Cash Equivalents Attributable
to:
Liberty SiriusXM Group(a)
$
306
$
135
Formula One Group(b)
1,408
1,233
Liberty Live Group
305
298
Total Consolidated Cash and Cash
Equivalents (GAAP)
$
2,019
$
1,666
Debt:
SiriusXM senior notes(c)
$
8,750
$
8,750
3.75% convertible notes due 2028(d)
575
575
2.75% SiriusXM exchangeable senior
debentures due 2049(d)
586
585
SiriusXM margin loan
695
630
Other subsidiary debt(e)
500
530
Total Attributed Liberty SiriusXM Group
Debt
$
11,106
$
11,070
Unamortized discount, fair market value
adjustment and deferred loan costs
31
52
Total Attributed Liberty SiriusXM Group
Debt (GAAP)
$
11,137
$
11,122
2.25% convertible notes due 2027(d)
475
475
Formula 1 term loan and revolving credit
facility
2,407
2,398
Other corporate level debt
58
56
Total Attributed Formula One Group
Debt
$
2,940
$
2,929
Fair market value adjustment
(34
)
(27
)
Total Attributed Formula One Group Debt
(GAAP)
$
2,906
$
2,902
Formula 1 leverage(f)
1.9x
1.7x
0.5% Live Nation exchangeable senior
debentures due 2050(d)
62
62
2.375% Live Nation exchangeable senior
debentures due 2053(d)
1,150
1,150
Live Nation margin loan
—
—
Total Attributed Liberty Live Group
Debt
$
1,212
$
1,212
Unamortized discount, fair market value
adjustment and deferred loan costs
105
206
Total Attributed Liberty Live Group
Debt (GAAP)
$
1,317
$
1,418
Total Liberty Media Corporation Debt
(GAAP)
$
15,360
$
15,442
a)
Includes $216 million and $71 million of
cash held at SiriusXM as of December 31, 2023 and March 31, 2024,
respectively.
b)
Includes $1,002 million and $1,016 million
of cash held at F1 as of December 31, 2023 and March 31, 2024,
respectively, and $60 million of cash held at Quint as of March 31,
2024.
c)
Outstanding principal amount of Senior
Notes or Term Loan with no reduction for the net unamortized
discount.
d)
Face amount of the convertible notes and
exchangeable debentures with no fair market value adjustment.
e)
Includes SiriusXM revolving credit
facility and term loan.
f)
As defined in F1’s credit facilities for
covenant calculations.
Liberty Media and its consolidated subsidiaries are in
compliance with their debt covenants as of March 31, 2024.
Total cash and cash equivalents attributed to Liberty SiriusXM
Group decreased $171 million in the first quarter as capital
expenditures and return of capital at SiriusXM and net debt
repayment at Liberty SiriusXM Group more than offset cash from
operations at SiriusXM. Included in the cash and cash equivalents
balance attributed to Liberty SiriusXM Group at March 31, 2024 is
$71 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 $85
million of dividends from SiriusXM during the quarter.
Total debt attributed to Liberty SiriusXM Group decreased $36
million during the quarter as Liberty SiriusXM Group paid down $65
million under its SiriusXM margin loan, partially offset by
SiriusXM borrowing $30 million under its revolving credit
facility.
Total cash and cash equivalents attributed to Formula One Group
decreased $175 million during the quarter as cash from operations
at F1 was more than offset by net cash paid for the Quint
acquisition and investments in short term marketable securities.
Total debt at Formula One Group was relatively flat in the first
quarter.
Total cash and cash equivalents attributed to Liberty Live Group
decreased $7 million during the first quarter primarily due to
interest payments. Total debt attributed to Liberty Live Group was
flat during the quarter.
Important Notice: Liberty Media Corporation (Nasdaq:
LSXMA, LSXMB, LSXMK, FWONA, FWONK, LLYVA, LLYVK) will discuss
Liberty Media's earnings release on a conference call which will
begin at 10:00 a.m. (E.T.) on May 8, 2024. The call can be accessed
by dialing (877) 704-2829 or (215) 268-9864, passcode 13742817 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, the planned
combination of Liberty SiriusXM Group and SiriusXM (the “Proposed
Combination”), the planned acquisition of MotoGP, expectation’s
regarding SiriusXM’s and Live Nation’s businesses, the continuation
of our stock repurchase plan, F1’s environmental and social
initiatives 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, the satisfaction of all conditions to the Proposed
Combination, the satisfaction of all conditions to closing for the
transaction with MotoGP, 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, failure of third parties to
perform, continued access to capital on terms acceptable to Liberty
Media and changes in law, including consumer protection laws, and
their enforcement. 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, 2024
(unaudited)
Attributed
Liberty
Formula
Liberty
SiriusXM
One
Live
Consolidated
Group
Group
Group
Liberty
amounts in millions
Assets
Current assets:
Cash and cash equivalents
$
135
1,233
298
1,666
Trade and other receivables, net
614
175
—
789
Other current assets
402
338
—
740
Total current assets
1,151
1,746
298
3,195
Investments in affiliates, accounted for
using the equity method
1,642
38
316
1,996
Property and equipment, at cost
3,200
983
—
4,183
Accumulated depreciation
(1,905
)
(149
)
—
(2,054
)
1,295
834
—
2,129
Intangible assets not subject to
amortization
Goodwill
15,209
4,190
—
19,399
FCC licenses
8,600
—
—
8,600
Other
1,242
—
—
1,242
25,051
4,190
—
29,241
Intangible assets subject to amortization,
net
991
2,898
—
3,889
Other assets
681
899
375
1,955
Total assets
$
30,811
10,605
989
42,405
Liabilities and Equity
Current liabilities:
Intergroup payable (receivable)
$
87
(82
)
(5
)
—
Accounts payable and accrued
liabilities
1,225
396
—
1,621
Current portion of debt
1,075
36
74
1,185
Deferred revenue
1,162
664
—
1,826
Other current liabilities
168
47
19
234
Total current liabilities
3,717
1,061
88
4,866
Long-term debt
10,047
2,866
1,344
14,257
Deferred income tax liabilities
2,379
8
(185
)
2,202
Other liabilities
1,254
180
1
1,435
Total liabilities
17,397
4,115
1,248
22,760
Equity / Attributed net assets
10,343
6,490
(282
)
16,551
Noncontrolling interests in equity of
subsidiaries
3,071
—
23
3,094
Total liabilities and equity
$
30,811
10,605
989
42,405
LIBERTY MEDIA
CORPORATION
STATEMENT OF OPERATIONS
INFORMATION
Three months ended March 31,
2024 (unaudited)
Attributed
Liberty
Formula
Liberty
SiriusXM
One
Live
Consolidated
Group
Group
Group
Liberty
amounts in millions
Revenue:
Sirius XM Holdings revenue
$
2,162
—
—
2,162
Formula 1 revenue
—
550
—
550
Other revenue
—
37
—
37
Total revenue
2,162
587
—
2,749
Operating costs and expenses, including
stock-based compensation:
Cost of Sirius XM Holdings services
(exclusive of depreciation shown separately below):
Revenue share and royalties
703
—
—
703
Programming and content(1)
157
—
—
157
Customer service and billing(1)
116
—
—
116
Other(1)
61
—
—
61
Cost of Formula 1 revenue (exclusive of
depreciation shown separately below)
—
279
—
279
Other cost of sales
—
26
—
26
Subscriber acquisition costs
90
—
—
90
Other operating expenses(1)
86
1
—
87
Selling, general and administrative(1)
372
91
2
465
Impairment, restructuring and acquisition
costs
13
9
—
22
Depreciation and amortization
155
86
—
241
1,753
492
2
2,247
Operating income (loss)
409
95
(2
)
502
Other income (expense):
Interest expense
(129
)
(55
)
(7
)
(191
)
Share of earnings (losses) of affiliates,
net
5
(3
)
(21
)
(19
)
Realized and unrealized gains (losses) on
financial instruments, net
18
48
(69
)
(3
)
Other, net
6
15
6
27
(100
)
5
(91
)
(186
)
Earnings (loss) before income taxes
309
100
(93
)
316
Income tax (expense) benefit
(68
)
(23
)
20
(71
)
Net earnings (loss)
241
77
(73
)
245
Less net earnings (loss) attributable to
the noncontrolling interests
42
—
—
42
Net earnings (loss) attributable to
Liberty stockholders
$
199
77
(73
)
203
(1) Includes stock-based compensation
expense as follows:
Programming and content
9
—
—
9
Customer service and billing
1
—
—
1
Other
1
—
—
1
Other operating expenses
12
—
—
12
Selling, general and administrative
25
12
1
38
Stock compensation expense
$
48
12
1
61
LIBERTY MEDIA
CORPORATION
STATEMENT OF OPERATIONS
INFORMATION
Three months ended March 31,
2023 (unaudited)
Attributed
Liberty
Formula
SiriusXM
One
Braves
Consolidated
Group
Group
Group
Liberty
amounts in millions
Revenue:
Sirius XM Holdings revenue
$
2,144
—
—
2,144
Formula 1 revenue
—
381
—
381
Other revenue
—
—
31
31
Total revenue
2,144
381
31
2,556
Operating costs and expenses, including
stock-based compensation:
Cost of Sirius XM Holdings services
(exclusive of depreciation shown separately below):
Revenue share and royalties
700
—
—
700
Programming and content(1)
150
—
—
150
Customer service and billing(1)
122
—
—
122
Other(1)
52
—
—
52
Cost of Formula 1 revenue (exclusive of
depreciation shown separately below)
—
206
—
206
Subscriber acquisition costs
90
—
—
90
Other operating expenses(1)
79
—
39
118
Selling, general and administrative(1)
385
75
26
486
Impairment, restructuring and acquisition
costs
32
—
—
32
Depreciation and amortization
161
84
15
260
1,771
365
80
2,216
Operating income (loss)
373
16
(49
)
340
Other income (expense):
Interest expense
(136
)
(51
)
(9
)
(196
)
Share of earnings (losses) of affiliates,
net
(7
)
(2
)
(1
)
(10
)
Realized and unrealized gains (losses) on
financial instruments, net
2
(47
)
(1
)
(46
)
Unrealized gains (losses) on intergroup
interests
54
(41
)
(13
)
—
Other, net
3
10
1
14
(84
)
(131
)
(23
)
(238
)
Earnings (loss) before income taxes
289
(115
)
(72
)
102
Income tax (expense) benefit
(69
)
6
13
(50
)
Net earnings (loss)
220
(109
)
(59
)
52
Less net earnings (loss) attributable to
the noncontrolling interests
37
—
—
37
Net earnings (loss) attributable to
Liberty stockholders
$
183
(109
)
(59
)
15
(1) Includes stock-based compensation
expense as follows:
Programming and content
7
—
—
7
Customer service and billing
1
—
—
1
Other
1
—
—
1
Other operating expenses
11
—
—
11
Selling, general and administrative
28
5
3
36
Stock compensation expense
$
48
5
3
56
LIBERTY MEDIA
CORPORATION
STATEMENT OF CASH FLOWS
INFORMATION
Three months ended March 31,
2024 (unaudited)
Attributed
Liberty
Formula
Liberty
SiriusXM
One
Live
Consolidated
Group
Group
Group
Liberty
amounts in millions
Cash flows from operating activities:
Net earnings (loss)
$
241
77
(73
)
245
Adjustments to reconcile net earnings
(loss) to net cash provided by operating activities:
Depreciation and amortization
155
86
—
241
Stock-based compensation
48
12
1
61
Non-cash impairment and restructuring
costs
1
—
—
1
Share of (earnings) loss of affiliates,
net
(5
)
3
21
19
Realized and unrealized (gains) losses on
financial instruments, net
(18
)
(48
)
69
3
Deferred income tax expense (benefit)
(12
)
9
(18
)
(21
)
Intergroup tax allocation
29
(27
)
(2
)
—
Other charges (credits), net
24
2
—
26
Changes in operating assets and
liabilities
Current and other assets
66
(90
)
(3
)
(27
)
Payables and other liabilities
(265
)
116
(4
)
(153
)
Net cash provided (used) by operating
activities
264
140
(9
)
395
Cash flows from investing activities:
Investments in equity method affiliates
and debt and equity securities
(179
)
(1
)
—
(180
)
Cash (paid) received for acquisitions, net
of cash acquired
—
(205
)
—
(205
)
Capital expended for property and
equipment, including internal-use software and website
development
(174
)
(27
)
—
(201
)
Other investing activities, net
(1
)
(63
)
—
(64
)
Net cash provided (used) by investing
activities
(354
)
(296
)
—
(650
)
Cash flows from financing activities:
Borrowings of debt
230
—
—
230
Repayments of debt
(267
)
(10
)
—
(277
)
Cash dividends paid by subsidiary
(17
)
—
—
(17
)
Taxes paid in lieu of shares issued for
stock-based compensation
(17
)
(7
)
—
(24
)
Other financing activities, net
(2
)
6
2
6
Net cash provided (used) by financing
activities
(73
)
(11
)
2
(82
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(163
)
(167
)
(7
)
(337
)
Cash, cash equivalents and restricted cash
at beginning of period
315
1,408
305
2,028
Cash, cash equivalents and restricted cash
at end of period
$
152
1,241
298
1,691
Cash and cash equivalents
$
135
1,233
298
1,666
Restricted cash included in other current
assets
8
8
—
16
Restricted cash included in other
assets
9
—
—
9
Total cash and cash equivalents and
restricted cash at end of period
$
152
1,241
298
1,691
LIBERTY MEDIA
CORPORATION
STATEMENT OF CASH FLOWS
INFORMATION
Three months ended March 31,
2023 (unaudited)
Attributed
Liberty
Formula
SiriusXM
One
Braves
Consolidated
Group
Group
Group
Liberty
amounts in millions
Cash flows from operating activities:
Net earnings (loss)
$
220
(109
)
(59
)
52
Adjustments to reconcile net earnings
(loss) to net cash provided by operating activities:
Depreciation and amortization
161
84
15
260
Stock-based compensation
48
5
3
56
Non-cash impairment and restructuring
costs
8
—
—
8
Share of (earnings) loss of affiliates,
net
7
2
1
10
Unrealized (gains) losses on intergroup
interests, net
(54
)
41
13
—
Realized and unrealized (gains) losses on
financial instruments, net
(2
)
47
1
46
Deferred income tax expense (benefit)
7
(5
)
(8
)
(6
)
Intergroup tax allocation
31
(26
)
(5
)
—
Other charges (credits), net
4
(3
)
1
2
Changes in operating assets and
liabilities
Current and other assets
46
(8
)
27
65
Payables and other liabilities
(157
)
229
96
168
Net cash provided (used) by operating
activities
319
257
85
661
Cash flows from investing activities:
Investments in equity method affiliates
and debt and equity securities
(39
)
(130
)
—
(169
)
Cash proceeds from dispositions
—
34
—
34
Capital expended for property and
equipment, including internal-use software and website
development
(205
)
(62
)
(14
)
(281
)
Other investing activities, net
2
(1
)
—
1
Net cash provided (used) by investing
activities
(242
)
(159
)
(14
)
(415
)
Cash flows from financing activities:
Borrowings of debt
1,479
—
—
1,479
Repayments of debt
(1,633
)
(53
)
(4
)
(1,690
)
Settlement of intergroup interests
202
(202
)
—
—
Subsidiary shares repurchased by
subsidiary
(62
)
—
—
(62
)
Cash dividends paid by subsidiary
(17
)
—
—
(17
)
Taxes paid in lieu of shares issued for
stock-based compensation
(15
)
(8
)
(1
)
(24
)
Other financing activities, net
37
14
6
57
Net cash provided (used) by financing
activities
(9
)
(249
)
1
(257
)
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
68
(149
)
72
(9
)
Cash, cash equivalents and restricted cash
at beginning of period
370
1,733
173
2,276
Cash, cash equivalents and restricted cash
at end of period
$
438
1,584
245
2,267
Cash and cash equivalents
$
430
215
1,584
2,229
Restricted cash included in other current
assets
—
30
—
30
Restricted cash included in other
assets
8
—
—
8
Total cash and cash equivalents and
restricted cash at end of period
$
438
245
1,584
2,267
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 Liberty
SiriusXM Group, Formula One Group, Liberty Live Group and the
former Braves 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 (loss) calculated in
accordance with GAAP for the three months ended March 31, 2023 and
March 31, 2024, respectively.
QUARTERLY SUMMARY
(amounts in millions)
1Q23
1Q24
Liberty SiriusXM Group
Operating income
$
373
$
409
Depreciation and amortization
161
155
Stock compensation expense
48
48
Impairment, restructuring and acquisition
costs(a)
32
13
Adjusted OIBDA
$
614
$
625
Formula One Group
Operating income
$
16
$
95
Depreciation and amortization
84
86
Stock compensation expense
5
12
Impairment, restructuring and acquisition
costs(b)
—
9
Adjusted OIBDA
$
105
$
202
Liberty Live Group
Operating income
$
N/A
$
(2
)
Depreciation and amortization
N/A
—
Stock compensation expense
N/A
1
Adjusted OIBDA
$
N/A
$
(1
)
Braves Group
Operating income
$
(49
)
$
N/A
Depreciation and amortization
15
N/A
Stock compensation expense
3
N/A
Impairment, restructuring and acquisition
costs
—
N/A
Adjusted OIBDA
$
(31
)
$
N/A
Liberty Media Corporation
(Consolidated)
Operating income
$
340
$
502
Depreciation and amortization
260
241
Stock compensation expense
56
61
Impairment, restructuring and acquisition
costs
32
22
Adjusted OIBDA
$
688
$
826
a)
During the three months ended March 31,
2024, Sirius XM Holdings recorded $12 million associated with
severance and other employee costs and $1 million of impairments,
primarily related to terminated software projects. During the three
months ended March 31, 2023, Sirius XM Holdings recorded $23
million associated with severance and other employee costs and $9
million primarily related to a vacated office space.
b)
During the three months ended March 31,
2024, Formula One Group incurred $9 million of acquisition related
costs associated with the completion of the Quint acquisition and
the announcement of the company’s planned acquisition of
MotoGP.
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, 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 consolidated 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 SiriusXM’s 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,
2023
2024
($ in millions)
Net income:
$
233
$
265
Add back items excluded from Adjusted
EBITDA:
Impairment, restructuring and acquisition
costs
32
28
Share-based payment expense
45
45
Depreciation and amortization
136
140
Interest expense
107
104
Other (income) expense
(3
)
(12
)
Income tax expense
75
80
Adjusted EBITDA
$
625
$
650
SCHEDULE 3
This press release includes a presentation of free cash flow of
SiriusXM, which is a non-GAAP financial measure used by SiriusXM,
together with a reconciliation to SiriusXM's stand-alone cash flow
provided by operating activities, as determined under GAAP.
SiriusXM’s free cash flow is derived from cash flow provided by
operating activities, net of additions to property and equipment
and purchases of other investments. Free cash flow is a metric that
SiriusXM’s management and board of directors use to evaluate the
cash generated by its operations, net of capital expenditures and
other investment activity. In a capital intensive business, with
significant investments in satellites, SiriusXM looks at its
operating cash flow, net of these investing cash outflows, to
determine cash available for future subscriber acquisition and
capital expenditures, to repurchase or retire debt, to acquire
other companies and to evaluate its ability to return capital to
stockholders. SiriusXM excludes from free cash flow certain items
that do not relate to the on-going performance of its business,
such as cash flows related to acquisitions, strategic and
short-term investments, including tax efficient investments in
clean energy and net loan activity with related parties and other
equity investees. SiriusXM believes free cash flow is an indicator
of the long-term financial stability of its business. Free cash
flow, which is reconciled to "Net cash provided by operating
activities," is a non-GAAP financial measure. This measure can be
calculated by deducting amounts under the captions "Additions to
property and equipment" and deducting or adding Restricted and
other investment activity from "Net cash provided by operating
activities" from the unaudited consolidated statements of cash
flows. Free cash flow should be used in conjunction with other GAAP
financial performance measures and may not be comparable to free
cash flow measures presented by other companies. Free cash flow
should be viewed as a supplemental measure rather than an
alternative measure of cash flows from operating activities, as
determined in accordance with GAAP. Free cash flow is limited and
does not represent remaining cash flows available for discretionary
expenditures due to the fact that the measure does not deduct the
payments required for debt maturities. SiriusXM believes free cash
flow provides useful supplemental information to investors
regarding its current cash flow, along with other GAAP measures
(such as cash flows from operating and investing activities), to
determine its financial condition, and to compare its operating
performance to other communications, entertainment and media
companies. Free cash flow is calculated as follows:
Unaudited
For the Three Months Ended
March 31,
2023
2024
($ in millions)
Cash flow information
Net cash provided by operating
activities
$
350
$
308
Net cash used in investing activities
$
(235
)
$
(363
)
Net cash used in financing activities
$
(119
)
$
(90
)
Free cash flow
Net cash provided by operating
activities
$
350
$
308
Additions to property and equipment
(205
)
(174
)
Purchases of other investments
(1
)
(2
)
Free cash flow
$
144
$
132
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240507436710/en/
Liberty Media Corporation Shane Kleinstein, (720)
875-5432
Liberty Media (NASDAQ:LSXMA)
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