Liberty Media Corporation ("Liberty Media" or “Liberty”)
(NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) today
reported first quarter 2023 results. Headlines include(1):
- Targeting completion of planned split-off of Atlanta Braves
Holdings, Inc. and reclassification of tracking stocks to create
Liberty Live Group tracking stock by end of second quarter
2023
- Attributed to Liberty SiriusXM Group
- SiriusXM reported first quarter 2023 operating and financial
results
- First quarter 2023 revenue of $2.14 billion; down 2%
year-over-year
- Net income of $233 million, down from $309 million in 2022;
diluted EPS of $0.06
- Adjusted EBITDA(2) of $625 million and free cash flow(2) of
$144 million
- SiriusXM increased full-year adjusted EBITDA and free cash flow
guidance on April 27th
- Liberty Media’s ownership of SiriusXM was 82.9% as of April
25th
- Issued $575 million of 3.75% LSXMA convertible senior notes and
used proceeds, along with cash on hand, to repurchase $591 million
aggregate principal of 1.375% cash convertible notes and $112
million aggregate adjusted principal of 2.125% exchangeable senior
debentures
- Attributed to Formula One Group
- Announced multiple updates to sponsorship agreements, including
extending MSC Cruises as Global Partner, welcoming Puma as Official
Provider of F1’s sporting apparel and naming Paramount+ and Liqui
Moly as Official Partners
- Extended agreement with ESPN to broadcast F1 in Latin America
and Caribbean through 2025
- Las Vegas Grand Prix Paddock Building construction at 60%
completion with expected occupancy by end of September
- Formula 1 leverage at quarter-end of 2.2x will trigger
permanent reduction in existing Term Loan B margin from 3.25% to
3.00%
- Formula One Group paid $202 million in exchange for the
cancellation of 3.1 million notional FWONA shares underlying
intergroup interest held at Liberty SiriusXM Group corresponding to
the portion of 1.375% cash convertible notes repurchased
- Attributed to Braves Group
- Braves home opener on April 6th drew 42,000 fans, largest home
opener crowd in Truist Park history
“We are progressing well on the split-off of the Atlanta Braves
and the creation of the Liberty Live Group tracking stock,” said
Greg Maffei, Liberty Media President and CEO. “SiriusXM navigated a
difficult auto and ad market backdrop in the first quarter, but we
are confident in their improving trajectory for the remainder of
the year evidenced by management increasing 2023 adjusted EBITDA
and free cash flow guidance. The Formula 1 season is underway and
fans are tuning in across platforms. Arrangements for the Las Vegas
Grand Prix are ramping up, with the Paddock Building construction
and track preparations progressing on-time and in-line with our
capex expectations. The Atlanta Braves are seeing strong trends in
ticket sales and concessions early in the season.”
Discussion of Results
Unless otherwise noted, the following discussion compares
financial information for the three months ended March 31, 2023 to
the same period in 2022.
LIBERTY SIRIUSXM GROUP – The following table provides the
financial results attributed to Liberty SiriusXM Group for the
first quarter of 2023. In the first quarter, approximately $14
million of corporate level selling, general and administrative
expense (including stock-based compensation expense) was allocated
to the Liberty SiriusXM Group.
1Q22
1Q23
% Change
amounts in millions
Liberty SiriusXM Group
Revenue
SiriusXM
$
2,186
$
2,144
(2
)%
Total Liberty SiriusXM Group
$
2,186
$
2,144
(2
)%
Operating Income (Loss)
SiriusXM
493
387
(22
)%
Corporate and other
(9
)
(14
)
(56
)%
Total Liberty SiriusXM Group
$
484
$
373
(23
)%
Adjusted OIBDA (Loss)
SiriusXM
690
625
(9
)%
Corporate and other
(5
)
(11
)
(120
)%
Total Liberty SiriusXM Group
$
685
$
614
(10
)%
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 27, 2023.
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 an investment in Live
Nation.
FORMULA ONE GROUP – The following table provides the
financial results attributed to the Formula One Group for the first
quarter of 2023. In the first quarter, the Formula One Group
incurred approximately $16 million of corporate level selling,
general and administrative expense (including stock-based
compensation expense).
“The F1 season is off to a fantastic start, with thrilling races
to-date and many more to come on our record 23-race 2023 calendar.
The race weekends are drawing huge crowds, with the Australian
Grand Prix hosting 445,000 fans and sellouts for the majority of
the remaining calendar,” said Stefano Domenicali, Formula 1
President and CEO. “The power of our platform continues to draw
interest also from commercial partners, with a number of new and
expanded sponsors already announced season-to-date.”
1Q22
1Q23
amounts in millions
Formula One Group
Revenue
Formula 1
$
360
$
381
Total Formula One Group
$
360
$
381
Operating Income (Loss)
Formula 1
$
34
$
35
Corporate and other
(15
)
(19
)
Total Formula One Group
$
19
$
16
Adjusted OIBDA (Loss)
Formula 1
$
122
$
117
Corporate and other
(10
)
(12
)
Total Formula One Group
$
112
$
105
The following table provides the operating results of Formula 1
(“F1”).
F1 Operating
Results
1Q22
1Q23
% Change
amounts in millions
Primary Formula 1 revenue
$
287
$
314
9
%
Other Formula 1 revenue
73
67
(8
)%
Total Formula 1 revenue
$
360
$
381
6
%
Operating expenses (excluding stock-based
compensation):
Team payments
(100
)
(112
)
(12
)%
Other cost of Formula 1 revenue
(95
)
(94
)
1
%
Cost of Formula 1 revenue
$
(195
)
$
(206
)
(6
)%
Selling, general and administrative
expenses
(43
)
(58
)
(35
)%
Adjusted OIBDA
$
122
$
117
(4
)%
Depreciation and Amortization(a)
(88
)
(82
)
7
%
Operating income (loss)
$
34
$
35
3
%
Number of races in period
2
2
____________________
a)
Includes $81 million and $74
million of amortization related to purchase accounting as of March
31, 2022 and March 31, 2023, 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 two races held in the first
quarter of both 2022 and 2023. There are 23 events scheduled for
the 2023 race calendar.
Primary F1 revenue increased in the first quarter with growth
across media rights, race promotion and sponsorship. Media rights
revenue increased due to continued growth in F1 TV subscription
revenue and increased fees under new and renewed contractual
agreements. Race promotion revenue grew due to contractual
increases in fees, and sponsorship revenue increased due to the
recognition of revenue from new sponsors and growth in revenue from
existing sponsors. Other F1 revenue decreased in the first quarter
primarily due to lower freight income driven by the easing of
freight cost inflation on billing rates, partially offset by
increased hospitality revenue from higher Paddock Club
attendance.
Operating income was relatively flat and adjusted OIBDA(2)
decreased in the first quarter. Team payments were higher compared
to the prior year due to the pro rata recognition of increased
payments across the race season. 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 were
relatively flat, as significantly lower freight costs were largely
offset by increased Paddock Club costs associated with servicing
higher hospitality attendance at the two events held in the first
quarter, and higher commissions and partner servicing costs
associated with increased Primary F1 revenue streams, including F1
TV subscriptions. Selling, general and administrative expense
increased in the first quarter due to higher personnel, IT and
marketing costs. There were approximately $6 million of costs
associated with the planning of the Las Vegas Grand Prix included
in selling, general and administrative expense in the first quarter
of 2023.
The Liberty SiriusXM Group has an approximate 0.4% intergroup
interest (1.1 million notional shares) in the Formula One Group
attributed to it as of April 30, 2023. 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, 2023 would have been 235
million.
The businesses and assets attributed to the Formula One Group
consist of Liberty Media’s subsidiary F1, other minority
investments and an intergroup interest in the Braves Group.
BRAVES GROUP - The following table provides the financial
results attributed to the Braves Group for the first quarter of
2023. In the first quarter, approximately $6 million of corporate
level selling, general and administrative expense (including
stock-based compensation expense) was allocated to the Braves
Group.
1Q22
1Q23
amounts in millions
Braves Group
Revenue
Corporate and other
$
23
$
31
Operating Income (Loss)
Corporate and other
$
(40
)
$
(49
)
Adjusted OIBDA (Loss)
Corporate and other
$
(19
)
$
(31
)
The following table provides the operating results of Braves
Holdings, LLC (“Braves”).
1Q22
1Q23
% Change
amounts in millions
Baseball revenue
$
11
$
18
64
%
Mixed-use development revenue
12
13
8
%
Total revenue
23
31
35
%
Operating expenses (excluding stock-based
compensation included below):
Operating expenses
(23
)
(39
)
(70
)%
Selling, general and administrative
expenses
(17
)
(18
)
(6
)%
Adjusted OIBDA
$
(17
)
$
(26
)
(53
)%
Stock-based compensation
(2
)
(2
)
—
%
Depreciation and Amortization
(18
)
(15
)
17
%
Operating income (loss)
$
(37
)
$
(43
)
(16
)%
Number of home games in period
—
—
Baseball revenue is derived from two primary sources: (i)
ballpark event revenue (ticket sales, concessions, advertising
sponsorships, suites and premium seat fees) and (ii) broadcasting
revenue (including national and local broadcast rights). Mixed-use
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.
The start of the 2023 season was not impacted by these factors and
a full spring training schedule took place. No regular season home
games were played in the first quarter of 2023 nor the prior year
period.
Baseball revenue increased in the first quarter due to more
spring training home games and additional special events held at
the ballpark compared to the prior year period. Development revenue
increased during the first quarter due to increases in rental
income related to tenant recoveries.
Operating income and adjusted OIBDA decreased in the first
quarter. Revenue growth was more than offset by increased operating
costs due to higher player salaries, as player salary expense was
not recognized in the prior year period due to the delayed start of
the season, as well as higher levels of MLB shared expenses,
baseball operations expenses and facility and game day expenses for
spring training games. Selling, general and administrative expense
increased modestly due to increased promotion and marketing
initiatives and higher personnel costs.
The Formula One Group has an approximate 11.0% intergroup
interest (6.8 million notional shares) and the Liberty SiriusXM
Group has an approximate 2.9% intergroup interest (1.8 million
notional shares) in the Braves Group attributed to them as of April
30, 2023. 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,
2023 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.
Share Repurchases
There were no repurchases of Liberty Media’s common stock
(NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) from
February 1, 2023 through April 30, 2023. The total remaining
repurchase authorization for Liberty Media as of May 1, 2023 is
approximately $1.1 billion and can be applied to repurchases of
common shares of any of the Liberty Media Corporation tracking
stocks.
FOOTNOTES
1)
Liberty Media will discuss these
headlines and other matters on Liberty Media's earnings conference
call that will begin at 9:30 a.m. (E.T.) on May 5, 2023. 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 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, 2023.
Fair Value of
Corporate Public Holdings
(amounts in millions)
12/31/2022
3/31/2023
Liberty SiriusXM Group
Live Nation Investment(a)
4,857
4,875
Total Liberty SiriusXM Group
$
4,857
$
4,875
Formula One Group
Other Monetizable Public Holdings(b)
80
172
Total Formula One Group
$
80
$
172
Braves Group
N/A
N/A
Total Liberty Media
$
4,937
$
5,047
____________________
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 $158 million and $157
million as of December 31, 2022 and March 31, 2023,
respectively.
b)
Represents the carrying value of
other public holdings that are accounted for at fair value.
Includes approximately $126 million of exchange-traded funds as of
March 31, 2023 that are expected to be contributed to Liberty Live
Group upon the reclassification of the tracking stocks. 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 gains (losses) on the intergroup interest line item
in the unaudited attributed condensed consolidated statements of
operations. In connection with the previously announced split-off
of Atlanta Braves Holdings, Inc., the intergroup interests in the
Braves Group attributed to Liberty SiriusXM Group and Formula One
Group will be settled and extinguished in connection with the
split-off.
The Braves Group will attribute shares of New BATRA and New
BATRK to Liberty SiriusXM Group and Formula One Group,
respectively, on a one-for-one basis equal to the number of
notional shares representing the intergroup interest attributed to
each immediately prior to the split-off. Following the split-off:
(i) Liberty SiriusXM Group intends to deliver the shares of New
BATRA to and exchange such New BATRA shares with one or more third
party lenders for satisfaction of certain debt obligations of
Liberty SiriusXM Group and (ii) the new BATRK shares attributed to
Formula One Group will be distributed on a pro rata basis to
Formula One Group common shareholders.
The intergroup interest in the Formula One Group attributed to
Liberty SiriusXM Group will be settled and extinguished through the
attribution of cash prior to the split-off.
Attributed
as of March 31, 2023
Liberty
Formula
SiriusXM
Braves
One
Group
Group
Group
(amounts in millions)
Notional Shares
Value
Notional Shares
Value
Notional Shares
Value
Braves Group intergroup interests(a)
1.8
$
63
(8.6)
$
(291
)
6.8
$
228
Formula One Group intergroup
interest(a)
1.1
$
71
(1.1)
$
(71
)
____________________
a)
During the three months ended
March 31, 2023, Formula One Group paid $202 million to Liberty
SiriusXM Group to settle and extinguish 3.1 million notional shares
underlying the portion of the intergroup interest in the Formula
One Group held by Liberty SiriusXM Group as a result of the
repurchase of a portion of the 1.375% cash convertible notes due
2023.
Cash and Debt
The following presentation is provided to separately identify
cash and debt information.
(amounts in millions)
12/31/2022
3/31/2023
Cash and Cash Equivalents Attributable
to:
Liberty SiriusXM Group(a)
$
362
$
430
Formula One Group(b)
1,733
1,584
Braves Group(c)
151
215
Total Consolidated Cash and Cash
Equivalents (GAAP)
$
2,246
$
2,229
Debt:
SiriusXM senior notes(d)
$
8,750
$
8,750
Pandora convertible senior notes(e)
193
118
1.375% cash convertible notes due
2023(f)
790
199
3.75% convertible notes due 2028(f)
—
575
2.125% SiriusXM exchangeable senior
debentures due 2048(f)
387
275
2.75% SiriusXM exchangeable senior
debentures due 2049(f)
586
586
0.5% Live Nation exchangeable senior
debentures due 2050(f)
920
920
SiriusXM margin loan
875
875
Live Nation margin loan
—
—
Other subsidiary debt(g)
580
710
Total Attributed Liberty SiriusXM Group
Debt
$
13,081
$
13,008
Unamortized discount, fair market value
adjustment and deferred loan costs
62
(108
)
Total Attributed Liberty SiriusXM Group
Debt (GAAP)
$
13,143
$
12,900
1% cash convertible notes due 2023(f)
27
—
2.25% convertible notes due 2027(f)
475
475
Formula 1 term loan and revolving credit
facility
2,425
2,420
Other corporate level debt
63
63
Total Attributed Formula One Group
Debt
$
2,990
$
2,958
Fair market value adjustment
(43
)
—
Total Attributed Formula One Group Debt
(GAAP)
$
2,947
$
2,958
Formula 1 leverage(h)
2.7x
2.2x
Atlanta Braves debt
546
542
Total Attributed Braves Group
Debt
$
546
$
542
Deferred loan costs
(4
)
(4
)
Total Attributed Braves Group Debt
(GAAP)
$
542
$
538
Total Liberty Media Corporation Debt
(GAAP)
$
16,632
$
16,396
____________________
a)
Includes $57 million and $53
million of cash held at SiriusXM as of December 31, 2022 and March
31, 2023, respectively.
b)
Includes $752 million and $1,043
million of cash held at F1 as of December 31, 2022 and March 31,
2023, respectively.
c)
Excludes restricted cash held in
reserves pursuant to the terms of various financial obligations of
$22 million and $30 million as of December 31, 2022 and March 31,
2023, respectively.
d)
Outstanding principal amount of
Senior Notes or Term Loan with no reduction for the net unamortized
discount.
e)
During the three months ended
March 31, 2023, certain investors exercised their right to require
a Special Repurchase, as defined in the indenture governing the
Pandora convertible senior notes, and Pandora repurchased $75
million principal amount of such notes with cash for an aggregate
purchase price equal to 100% of the principal amount of the notes
repurchased plus accrued and unpaid interest to the date of
repurchase.
f)
Face amount of the convertible
notes and exchangeable debentures with no fair market value
adjustment.
g)
Includes SiriusXM revolving
credit facility and term loan.
h)
Net debt to covenant OIBDA ratio
of F1 operating business as defined in F1’s credit facilities for
covenant calculations.
Liberty Media, SiriusXM, F1 and the Braves are in compliance
with their debt covenants as of March 31, 2023.
Total cash and cash equivalents attributed to Liberty SiriusXM
Group increased $68 million in the first quarter as net debt
repayment at Liberty SiriusXM Group (described below) and return of
capital at SiriusXM were more than offset by cash received from the
settlement of a portion of the Formula One Group intergroup
interest held at Liberty SiriusXM Group (described below), cash
from operations at SiriusXM and borrowings under the revolving
credit facility at SiriusXM. Included in the cash and cash
equivalents balance attributed to Liberty SiriusXM Group at March
31, 2023 is $53 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 $77 million of dividends from SiriusXM during the
quarter.
Total debt attributed to Liberty SiriusXM Group decreased $73
million during the quarter. During the first quarter, Liberty
SiriusXM Group issued $575 million aggregate principal amount of
3.75% LSXMA convertible notes due 2028 and used net proceeds of the
offering, together with cash on hand, to repurchase (i) $591
million aggregate principal amount of its 1.375% cash convertible
notes due 2023 and (ii) $112 million aggregate adjusted principal
amount of its 2.125% exchangeable debentures due 2048, for a total
cost of $774 million. In addition to proceeds from the convertible
notes, Liberty SiriusXM Group received (i) $39 million of net
proceeds from the settlement of the bond hedge and warrants related
to the portion of the 1.375% cash convertible notes repurchased and
(ii) $202 million of cash from the Formula One Group in exchange
for the cancellation of 3.1 million notional shares underlying a
portion of the intergroup interest in the Formula One Group held by
Liberty SiriusXM Group (equivalent to the FWONA common stock
underlying the portion of the 1.375% cash convertible notes
repurchased). In addition, subsequent to quarter end in April 2023,
Liberty SiriusXM Group paid $275 million to settle the remaining
amount outstanding of its 2.125% exchangeable debentures due 2048,
which was funded with cash on hand.
Total cash and cash equivalents attributed to the Formula One
Group decreased $149 million during the quarter as cash from
operations at F1 was more than offset by $202 million paid to
Liberty SiriusXM Group in exchange for the cancellation of 3.1
million FWONA shares underlying the intergroup interest (described
above), $120 million of exchange-traded funds purchased that are
expected to be attributed to the Liberty Live Group after the
completion of the previously announced reclassification of tracking
stocks and capital expenditures related to the Las Vegas Grand
Prix. Total debt at Formula One Group decreased $32 million in the
first quarter primarily due to the January 2023 settlement of the
remaining 1% FWONK cash convertible notes.
Pursuant to F1’s credit facilities agreement, the margin on its
existing Term Loan B will be permanently reduced from 3.25% to
3.00% after the first quarter as a result of F1’s leverage as
defined in its credit facilities for covenant calculations falling
below a certain threshold.
Total cash and cash equivalents attributed to the Braves Group
increased $64 million during the quarter due to cash from
operations. Total debt attributed to the Braves Group decreased $4
million during the first quarter primarily due to repayment under
the ballpark senior secured note.
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 9:30 a.m. (E.T.) on May 5, 2023. The call can be accessed
by dialing (877) 704-2829 or (215) 268-9864, passcode 13736371 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 Las
Vegas Grand Prix, our proposed split-off and reclassification of
tracking stocks, the continuation of our stock repurchase plan 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, the satisfaction of conditions to the proposed
split-off and reclassification of tracking stocks, 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, 2023
(unaudited)
Attributed
Liberty
Formula
SiriusXM
Braves
One
Intergroup
Consolidated
Group
Group
Group
Eliminations
Liberty
amounts in millions
Assets
Current assets:
Cash and cash equivalents
$
430
215
1,584
—
2,229
Trade and other receivables, net
587
23
91
—
701
Other current assets
366
62
278
—
706
Total current assets
1,383
300
1,953
—
3,636
Intergroup interests
134
—
228
(362
)
—
Investments in affiliates, accounted for
using the equity method
862
94
37
—
993
Property and equipment, at cost
2,926
1,021
616
—
4,563
Accumulated depreciation
(1,742
)
(292
)
(112
)
—
(2,146
)
1,184
729
504
—
2,417
Intangible assets not subject to
amortization
Goodwill
15,209
176
3,956
—
19,341
FCC licenses
8,600
—
—
—
8,600
Other
1,242
124
—
—
1,366
25,051
300
3,956
—
29,307
Intangible assets subject to amortization,
net
1,060
28
3,083
—
4,171
Other assets
529
67
1,217
(4
)
1,809
Total assets
$
30,203
1,518
10,978
(366
)
42,333
Liabilities and Equity
Current liabilities:
Intergroup payable (receivable)
$
35
(2
)
(33
)
—
—
Accounts payable and accrued
liabilities
1,229
66
318
—
1,613
Current portion of debt
608
75
23
—
706
Deferred revenue
1,307
191
655
—
2,153
Other current liabilities
80
5
35
—
120
Total current liabilities
3,259
335
998
—
4,592
Long-term debt
12,292
463
2,935
—
15,690
Deferred income tax liabilities
2,046
46
—
(4
)
2,088
Redeemable intergroup interests
—
291
71
(362
)
—
Other liabilities
596
147
136
—
879
Total liabilities
18,193
1,282
4,140
(366
)
23,249
Equity / Attributed net assets
8,920
229
6,813
—
15,962
Noncontrolling interests in equity of
subsidiaries
3,090
7
25
—
3,122
Total liabilities and equity
$
30,203
1,518
10,978
(366
)
42,333
LIBERTY MEDIA
CORPORATION
STATEMENT OF
OPERATIONS
Three months ended March 31,
2023 (unaudited)
Attributed
Liberty
Formula
SiriusXM
Braves
One
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
31
381
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
26
75
486
Impairment, restructuring and acquisition
costs, net of recoveries
32
—
—
32
Depreciation and amortization
161
15
84
260
1,771
80
365
2,216
Operating income (loss)
373
(49
)
16
340
Other income (expense):
Interest expense
(136
)
(9
)
(51
)
(196
)
Share of earnings (losses) of affiliates,
net
(7
)
(1
)
(2
)
(10
)
Realized and unrealized gains (losses) on
financial instruments, net
2
(1
)
(47
)
(46
)
Unrealized gains (losses) on intergroup
interests
54
(13
)
(41
)
—
Other, net
3
1
10
14
(84
)
(23
)
(131
)
(238
)
Earnings (loss) before income taxes
289
(72
)
(115
)
102
Income tax (expense) benefit
(69
)
13
6
(50
)
Net earnings (loss)
220
(59
)
(109
)
52
Less net earnings (loss) attributable to
the noncontrolling interests
37
—
—
37
Net earnings (loss) attributable to
Liberty stockholders
$
183
(59
)
(109
)
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
3
5
36
Stock compensation expense
$
48
3
5
56
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 (exclusive of
depreciation shown separately below)
—
—
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) 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 CASH FLOWS
INFORMATION
Three months ended March 31,
2023 (unaudited)
Attributed
Liberty
Formula
SiriusXM
Braves
One
Consolidated
Group
Group
Group
Liberty
amounts in millions
Cash flows from operating activities:
Net earnings (loss)
$
220
(59
)
(109
)
52
Adjustments to reconcile net earnings
(loss) to net cash provided by operating activities:
Depreciation and amortization
161
15
84
260
Stock-based compensation
48
3
5
56
Non-cash impairment and restructuring
costs
8
—
—
8
Share of (earnings) loss of affiliates,
net
7
1
2
10
Unrealized (gains) losses on intergroup
interests, net
(54
)
13
41
—
Realized and unrealized (gains) losses on
financial instruments, net
(2
)
1
47
46
Deferred income tax expense (benefit)
7
(8
)
(5
)
(6
)
Intergroup tax allocation
31
(5
)
(26
)
—
Other charges (credits), net
4
1
(3
)
2
Changes in operating assets and
liabilities
Current and other assets
46
27
(8
)
65
Payables and other liabilities
(157
)
96
229
168
Net cash provided (used) by operating
activities
319
85
257
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
)
(14
)
(62
)
(281
)
Other investing activities, net
2
—
(1
)
1
Net cash provided (used) by investing
activities
(242
)
(14
)
(159
)
(415
)
Cash flows from financing activities:
Borrowings of debt
1,479
—
—
1,479
Repayments of debt
(1,633
)
(4
)
(53
)
(1,690
)
Intergroup (repayments) borrowings
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
)
(1
)
(8
)
(24
)
Other financing activities, net
37
6
14
57
Net cash provided (used) by financing
activities
(9
)
1
(249
)
(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
72
(149
)
(9
)
Cash, cash equivalents and restricted cash
at beginning of period
370
173
1,733
2,276
Cash, cash equivalents and restricted cash
at end of period
$
438
245
1,584
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
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 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 rates 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
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 (loss) calculated in
accordance with GAAP for the three months ended March 31, 2022 and
March 31, 2023, respectively.
QUARTERLY
SUMMARY
(amounts in millions)
1Q22
1Q23
Liberty SiriusXM Group
Operating income
$
484
$
373
Depreciation and amortization
152
161
Stock compensation expense
49
48
Impairment, restructuring and acquisition
costs, net of recoveries(a)
—
32
Adjusted OIBDA
$
685
$
614
Formula One Group
Operating income
$
19
$
16
Depreciation and amortization
90
84
Stock compensation expense
3
5
Adjusted OIBDA
$
112
$
105
Braves Group
Operating income
$
(40
)
$
(49
)
Depreciation and amortization
18
15
Stock compensation expense
3
3
Adjusted OIBDA
$
(19
)
$
(31
)
Liberty Media Corporation
(Consolidated)
Operating income
$
463
$
340
Depreciation and amortization
260
260
Stock compensation expense
55
56
Impairment, restructuring and acquisition
costs, net of recoveries(a)
—
32
Adjusted OIBDA
$
778
$
688
____________________
(a)
During the three months ended
March 31, 2023, SiriusXM recorded $23 million associated with
severance and other employee costs and $9 million primarily related
to a vacated office space. 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
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,
2022
2023
($ in millions)
Net income:
$
309
$
233
Add back items excluded from Adjusted
EBITDA:
Impairment, restructuring and acquisition
costs(a)
—
32
Share-based payment expense
45
45
Depreciation and amortization
135
136
Interest expense
103
107
Other expense (income)
(2
)
(3
)
Income tax (benefit) expense
100
75
Adjusted EBITDA
$
690
$
625
____________________
(a)
During the three months ended
March 31, 2023, SiriusXM recorded $23 million associated with
severance and other employee costs and $9 million primarily related
to a vacated office space. These charges have been excluded from
adjusted OIBDA.
SCHEDULE 3
This press release also 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 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,
2022
2023
($ in millions)
Cash flow information
Net cash provided by operating
activities
$
355
$
350
Net cash used in investing activities
$
(142
)
$
(235
)
Net cash used in financing activities
$
(328
)
$
(119
)
Free cash flow
Net cash provided by operating
activities
$
355
$
350
Additions to property and equipment
(97
)
(205
)
Purchases of other investments
—
(1
)
Free cash flow
$
258
$
144
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230504006095/en/
Shane Kleinstein, (720) 875-5432
Liberty Media (NASDAQ:LSXMA)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Liberty Media (NASDAQ:LSXMA)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
