Attributed to
- QVC posted strong revenue and adjusted OIBDA increases across all European operations
- Grew QVC US revenue by 3% and adjusted OIBDA(2) by 2% in the second quarter
-
Repurchased
$274 million LINTA shares fromMay 1 to July 31, 2014 -
Announced combination of FTD Companies, Inc. ("
FTD ") and Provide Commerce; upon closing Liberty will own 35% ofFTD -
Continuing with plan to create
QVC Group tracking stock - In light of Provide-FTD transaction, along with other factors, re-evaluating the optimal structure of the Liberty's digital commerce assets
Attributed to
-
Filed amended S-1 for Liberty TripAdvisor spin on
July 25, 2014
"QVC posted strong revenue and adjusted OIBDA increases across
LIBERTY INTERACTIVE GROUP -
QVC
QVC's consolidated revenue increased 3% to
"Our second quarter performance reflects the strategic actions we are
taking to extend our highly differentiated retail model across
geographies and commerce platforms," said QVC President and CEO
QVC US's revenue increased 3% to
QVC's international revenue in US Dollars increased 2% to
QVC Germany's revenue increased 5% in local currency in the second
quarter.
QVC
CNRS, QVC's joint venture in
QVC's outstanding bank and bond debt was
eCommerce Businesses
In the aggregate,
On
On
On
Share Repurchases
From
LIBERTY VENTURES GROUP - As of June 30, 2014, the fair value of
the public equity method securities and other public holdings attributed
to the
On
Share Repurchases
There were no repurchases of
The businesses and assets attributed to the
FOOTNOTES
1) |
Liberty's President and CEO, |
||
2) | For a definition of adjusted OIBDA and applicable reconciliations and a definition of adjusted OIBDA margin, see the accompanying schedules. | ||
LIBERTY INTERACTIVE GROUP FINANCIAL METRICS - QUARTER |
||||||||||||||||||
(amounts in millions) | 2Q13 | 2Q14 | % Change | |||||||||||||||
Revenue | ||||||||||||||||||
QVC | ||||||||||||||||||
US | $ | 1,312 | $ | 1,352 | 3 | % | ||||||||||||
International | 649 | 662 | 2 | % | ||||||||||||||
Total QVC Revenue | 1,961 | $ | 2,014 | 3 | % | |||||||||||||
eCommerce businesses | 439 | 481 | 10 | % | ||||||||||||||
Total Liberty Interactive Group Revenue | $ | 2,400 | $ | 2,495 | 4 | % | ||||||||||||
Adjusted OIBDA | ||||||||||||||||||
QVC | ||||||||||||||||||
US | $ | 320 | $ | 325 | 2 | % | ||||||||||||
International | 114 | 114 | — | % | ||||||||||||||
Total QVC Adjusted OIBDA | 434 | 439 | 1 | % | ||||||||||||||
eCommerce businesses | 26 | 19 | (27 |
) |
% |
|||||||||||||
Corporate and other | (5 | ) | (6 | ) | (20 |
) |
% |
|||||||||||
Total Liberty Interactive Group Adjusted OIBDA | $ | 455 | $ | 452 | (1 |
) |
% |
|||||||||||
Operating Income | ||||||||||||||||||
QVC | ||||||||||||||||||
US | $ | 207 | $ | 203 | (2 |
) |
% |
|||||||||||
International | 78 | 81 | 4 | % | ||||||||||||||
Total QVC Operating Income | 285 | 284 | — | % | ||||||||||||||
eCommerce businesses | (2 | ) | (16 | ) | (700 |
) |
% |
|||||||||||
Corporate and other | (15 | ) | (13 | ) | 13 | % | ||||||||||||
Total Liberty Interactive Group Operating Income | $ | 268 | $ | 255 | (5 |
) |
% |
|||||||||||
(amounts in millions) | ||||||||
LINT Shares Outstanding |
|
|
||||||
Outstanding A and B shares | 520 | 482 | ||||||
(amounts in millions) | ||||||||
Quarter ended |
Quarter ended |
|||||||
LINTA and LINTB Basic and Diluted Shares |
|
|
||||||
Basic Weighted Average Shares Outstanding ("WASO") | 523 | 486 | ||||||
Potentially dilutive Shares | 8 | 10 | ||||||
Diluted WASO | 531 | 496 | ||||||
QVC OPERATING METRICS - QUARTER |
||||||||||||||||||
(amounts in millions except average sale price amounts) | 2Q13 | 2Q14 | % Change | |||||||||||||||
QVC - Consolidated(1) | ||||||||||||||||||
Revenue | $ | 1,961 | $ | 2,014 | 3 | % | ||||||||||||
Adjusted OIBDA | $ | 434 | $ | 439 | 1 | % | ||||||||||||
Adjusted OIBDA margin | 22.13 | % | 21.80 | % | (33) bps | |||||||||||||
Operating Income | $ | 285 | $ | 284 | — | % | ||||||||||||
eCommerce and Mobile Metrics |
||||||||||||||||||
eCommerce $ of total revenue | $ | 725 | $ | 779 | 7 | % | ||||||||||||
eCommerce % of total revenue | 36.97 | % | 38.68 | % | 171 bps | |||||||||||||
Mobile % of total eCommerce(2) | 29.68 | % | 39.86 | % | 1,018 bps | |||||||||||||
QVC - US(1) | ||||||||||||||||||
Revenue | $ | 1,312 | $ | 1,352 | 3 | % | ||||||||||||
Adjusted OIBDA | $ | 320 | $ | 325 | 2 | % | ||||||||||||
Adjusted OIBDA margin | 24.39 | % | 24.04 | % | (35) bps | |||||||||||||
Operating Income | $ | 207 | $ | 203 | (2 |
) |
% |
|||||||||||
Average sale price (ASP) $ | 56.39 | 57.05 | 1 | % | ||||||||||||||
Units sold | 25.36 | 26.14 | 3 | % | ||||||||||||||
Return rate | 18.89 | % | 19.24 | % | 35 bps | |||||||||||||
eCommerce and Mobile Metrics |
||||||||||||||||||
eCommerce $ of US revenue | $ | 550 | $ | 588 | 7 | % | ||||||||||||
eCommerce % of US revenue | 41.92 | % | 43.49 | % | 157 bps | |||||||||||||
Mobile % of US eCommerce(2) | 28.15 | % | 37.48 | % | 933 bps | |||||||||||||
QVC OPERATING METRICS - QUARTER (CONT'D) |
||||||||||||||||||
(amounts in millions except average sale price amounts) | 2Q13 | 2Q14 | % Change | |||||||||||||||
QVC - |
||||||||||||||||||
Revenue | $ | 260 | $ | 223 | (14 |
) |
% |
|||||||||||
Adjusted OIBDA | $ | 57 | $ | 43 | (25 |
) |
% |
|||||||||||
Adjusted OIBDA margin | 21.92 | % | 19.28 | % | (264) bps | |||||||||||||
Operating Income | $ | 49 | $ | 36 | (27 |
) |
% |
|||||||||||
Average sale price (ASP) ¥ | 6,191.41 | 6,016.95 | (3 |
) |
% |
|||||||||||||
Units sold | 4.73 | 4.35 | (8 |
) |
% |
|||||||||||||
QVC - |
||||||||||||||||||
Revenue | $ | 207 | $ | 227 | 10 | % | ||||||||||||
Adjusted OIBDA | $ | 35 | $ | 40 | 14 | % | ||||||||||||
Adjusted OIBDA margin | 16.91 | % | 17.62 | % | 71 bps | |||||||||||||
Operating Income | $ | 18 | $ | 23 | 28 | % | ||||||||||||
Average sale price (ASP) € | 35.16 | 35.81 | 2 | % | ||||||||||||||
Units sold | 6.22 | 6.02 | (3 |
) |
% |
|||||||||||||
QVC - |
||||||||||||||||||
Revenue | $ | 153 | $ | 178 | 16 | % | ||||||||||||
Adjusted OIBDA | $ | 26 | $ | 33 | 27 | % | ||||||||||||
Adjusted OIBDA margin | 16.99 | % | 18.54 | % | 155 bps | |||||||||||||
Operating Income | $ | 18 | $ | 26 | 44 | % | ||||||||||||
Average sale price (ASP) £ | 29.26 | 29.24 | — | % | ||||||||||||||
Units sold | 3.68 | 3.89 | 6 | % | ||||||||||||||
QVC - |
||||||||||||||||||
Revenue | $ | 29 | $ | 34 | 17 | % | ||||||||||||
Adjusted OIBDA | $ | (4 | ) | $ | (2 | ) | 50 | % | ||||||||||
Adjusted OIBDA margin | (13.79 | )% | (5.88 | )% | 791 bps | |||||||||||||
Operating Income | $ | (7 | ) | $ | (4 | ) | 43 | % | ||||||||||
Average sale price (ASP) € | 32.18 | 32.49 | 1 | % | ||||||||||||||
Units sold | 0.77 | 0.83 | 8 | % | ||||||||||||||
China JV(1)(3) | ||||||||||||||||||
Revenue | $ | 26 | $ | 33 | 27 | % | ||||||||||||
Adjusted OIBDA | $ | (2 | ) | $ | (3 | ) | (50 |
) |
% |
|||||||||
Adjusted OIBDA margin | (7.69 | )% | (9.09 | )% | (140) bps | |||||||||||||
(1) | Revenue change, adjusted OIBDA change and eCommerce and Mobile Metrics calculated in US Dollars, not local currency. | ||
(2) | Based on gross US Dollar orders. | ||
(3) | This joint venture is being accounted for as an equity method investment. |
NOTES
Unless otherwise noted, the foregoing discussion compares financial information for the three months ended June 30, 2014 to the same period in 2013.
The following financial information with respect to Liberty's equity affiliates and available for sale securities is intended to supplement Liberty's condensed consolidated statements of operations which are included in its Form 10-Q.
Fair Value of Public Holdings |
|||||||||||
(amounts in millions) |
|
|
|||||||||
HSN(1) | $ | 1,196 | $ | 1,186 | |||||||
|
$ | 1,196 | $ | 1,186 | |||||||
|
$ | 1,673 | $ | 1,818 | |||||||
Interval Leisure Group and Tree.com(3) | 521 | 446 | |||||||||
Other Public Holdings(4) | 1,059 | 1,149 | |||||||||
|
$ | 3,253 | $ | 3,413 | |||||||
(1) |
Represents fair value of |
||
(2) |
Represents fair value of |
||
(3) |
Represents fair value of |
||
(4) |
|
Cash and Debt
The following presentation is provided to separately identify cash and liquid investments and debt information.
(amounts in millions) |
|
|
||||||||
Cash and Liquid Investments Attributable to: | ||||||||||
|
$ | 682 | $ | 703 | ||||||
Liberty Ventures Group(2)(3)(4) | 1,891 | 1,909 | ||||||||
Total Liberty Consolidated Cash and Liquid Investments | $ | 2,573 | $ | 2,612 | ||||||
Less: | ||||||||||
Short-term marketable securities - |
$ | — | $ | 11 | ||||||
Short-term marketable securities - |
682 | 646 | ||||||||
Long-term marketable securities - |
407 | 122 | ||||||||
Total Liberty Consolidated Cash (GAAP) | $ | 1,484 | $ | 1,833 | ||||||
Debt: | ||||||||||
Senior notes and debentures(5) | $ | 791 | $ | 791 | ||||||
Senior exchangeable debentures(6) | 400 | 400 | ||||||||
QVC senior notes(5) | 3,819 | 3,819 | ||||||||
QVC bank credit facility | 124 | 65 | ||||||||
Other | 145 | 157 | ||||||||
Total Attributed Liberty Interactive Group Debt | $ | 5,279 | $ | 5,232 | ||||||
Unamortized discount and fair market value adjustment | 8 | 2 | ||||||||
Total Attributed Liberty Interactive Group Debt (GAAP) | $ | 5,287 | $ | 5,234 | ||||||
Senior exchangeable debentures(6) | $ | 2,086 | $ | 2,086 | ||||||
TripAdvisor debt facilities | 361 | 353 | ||||||||
Total Attributed Liberty Ventures Group Debt | $ | 2,447 | $ | 2,439 | ||||||
Fair market value adjustment | (143 | ) | (5 | ) | ||||||
Total Attributed Liberty Ventures Group Debt (GAAP) | $ | 2,304 | $ | 2,434 | ||||||
Total Liberty Interactive Corporation Debt (GAAP) | $ | 7,591 | $ | 7,668 | ||||||
(1) |
Includes |
||
(2) |
Includes |
||
(3) |
Includes |
||
(4) |
Includes |
||
(5) | Face amount of Senior Notes and Debentures with no reduction for the unamortized discount. | ||
(6) | Face amount of Senior Exchangeable Debentures with no reduction for the fair market value adjustment. |
Total cash and liquid investments attributed to the
Total cash and liquid investments attributed to the
Important Notice: Liberty (Nasdaq: LINTA, LINTB, LVNTA, LVNTB)
President and CEO,
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, the
proposed spin-off of
SUPPLEMENTAL INFORMATION
As a supplement to Liberty's condensed consolidated statements of operations, which are included in its Form 10-Q, the following is a presentation of quarterly information and operating metrics on a stand-alone basis for the largest business owned by Liberty (QVC) at June 30, 2014, which Liberty has identified as a reportable segment.
Please see below for the definition of adjusted OIBDA and a discussion of why management believes the presentation of adjusted OIBDA for QVC provides useful information for investors. Schedule 2 to this press release provides a reconciliation of adjusted OIBDA for each identified reportable segment to that segment's operating income for the same period, as determined under GAAP.
QUARTERLY SUMMARY |
|||||||||||||||||||||||||
(amounts in millions) | 2Q13 | 3Q13 | 4Q13 | 1Q14 | 2Q14 | ||||||||||||||||||||
|
|||||||||||||||||||||||||
QVC | |||||||||||||||||||||||||
Revenue - US | $ | 1,312 | $ | 1,303 | $ | 1,932 | $ | 1,305 | $ | 1,352 | |||||||||||||||
Revenue - International | 649 | 644 | 809 | 681 | 662 | ||||||||||||||||||||
Revenue - Total | $ | 1,961 | $ | 1,947 | $ | 2,741 | $ | 1,986 | $ | 2,014 | |||||||||||||||
Adjusted OIBDA - US | 320 | 304 | 437 | 301 | 325 | ||||||||||||||||||||
Adjusted OIBDA - International | 114 | 104 | 158 | 111 | 114 | ||||||||||||||||||||
Adjusted OIBDA - Total | $ | 434 | $ | 408 | $ | 595 | $ | 412 | $ | 439 | |||||||||||||||
Operating income - US | 207 | 191 | 323 | 186 | 203 | ||||||||||||||||||||
Operating income - International | 78 | 68 | 118 | 74 | 81 | ||||||||||||||||||||
Operating income - Total | $ | 285 | $ | 259 | $ | 441 | $ | 260 | $ | 284 | |||||||||||||||
Gross margin - US | 37.3 | % | 37.1 | % | 34.7 | % | 36.4 | % | 37.7 | % | |||||||||||||||
Gross margin - International | 37.8 | % | 37.4 | % | 37.8 | % | 37.4 | % | 38.3 | % | |||||||||||||||
NON-GAAP FINANCIAL MEASURES
This press release includes a presentation of adjusted OIBDA, which is a non-GAAP financial measure, for Liberty, QVC (and certain of its subsidiaries), and the eCommerce businesses together with a reconciliation to that 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 all stock based compensation, and excludes from that definition depreciation and amortization and restructuring and impairment charges 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
QUARTERLY SUMMARY |
|||||||||||||||||||||||||
(amounts in millions) | 2Q13 | 3Q13 | 4Q13 | 1Q14 | 2Q14 | ||||||||||||||||||||
|
|||||||||||||||||||||||||
Adjusted OIBDA | $ | 455 | $ | 396 | $ | 618 | $ | 431 | $ | 452 | |||||||||||||||
Depreciation and amortization | (158 | ) | (156 | ) | (165 | ) | (163 | ) | (166 | ) | |||||||||||||||
Stock compensation expense | (29 | ) | (22 | ) | (35 | ) | (24 | ) | (24 | ) | |||||||||||||||
Impairment of intangible assets | — | (19 | ) | (14 | ) | — | (7 | ) | |||||||||||||||||
Operating Income | $ | 268 | $ | 199 | $ | 404 | $ | 244 | $ | 255 | |||||||||||||||
SCHEDULE 2
The following table provides a reconciliation of adjusted OIBDA for QVC
(and certain of its subsidiaries) and the eCommerce businesses to that
entity or such businesses' operating income (loss) calculated in
accordance with GAAP for the three months ended
QUARTERLY SUMMARY |
|||||||||||||||||||||||||
(amounts in millions) | 2Q13 | 3Q13 | 4Q13 | 1Q14 | 2Q14 | ||||||||||||||||||||
|
|||||||||||||||||||||||||
QVC Adjusted OIBDA | |||||||||||||||||||||||||
QVC US | $ | 320 | $ | 304 | $ | 437 | $ | 301 | $ | 325 | |||||||||||||||
|
57 | 46 | 55 | 47 | 43 | ||||||||||||||||||||
QVC Germany | 35 | 37 | 58 | 39 | 40 | ||||||||||||||||||||
QVC |
26 | 26 | 47 | 27 | 33 | ||||||||||||||||||||
|
(4 | ) | (5 | ) | (2 | ) | (2 | ) | (2 | ) | |||||||||||||||
|
$ | 114 | $ | 104 | $ | 158 | $ | 111 | $ | 114 | |||||||||||||||
Consolidated QVC adjusted OIBDA | 434 | 408 | 595 | 412 | 439 | ||||||||||||||||||||
Depreciation and amortization | (140 | ) | (139 | ) | (145 | ) | (144 | ) | (145 | ) | |||||||||||||||
Stock compensation | (9 | ) | (10 | ) | (9 | ) | (8 | ) | (10 | ) | |||||||||||||||
Operating Income | $ | 285 | $ | 259 | $ | 441 | $ | 260 | $ | 284 | |||||||||||||||
eCommerce Businesses | |||||||||||||||||||||||||
Adjusted OIBDA | 26 | (5 | ) | 25 | 23 | 19 | |||||||||||||||||||
Depreciation and amortization | (18 | ) | (19 | ) | (18 | ) | (19 | ) | (21 | ) | |||||||||||||||
Stock compensation | (10 | ) | (3 | ) | (14 | ) | (5 | ) | (7 | ) | |||||||||||||||
Impairment of intangible assets | — | (19 | ) | (14 | ) | — | (7 | ) | |||||||||||||||||
Operating Income (Loss) | $ | (2 | ) | $ | (46 | ) | $ | (21 | ) | $ | (1 | ) | $ | (16 | ) | ||||||||||
|
|||||||||||||||||||
BALANCE SHEET INFORMATION | |||||||||||||||||||
|
|||||||||||||||||||
|
|||||||||||||||||||
Attributed | |||||||||||||||||||
Interactive | Ventures | Inter-group | Consolidated | ||||||||||||||||
Group | Group | Eliminations | Liberty | ||||||||||||||||
amounts in millions | |||||||||||||||||||
Assets | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 692 | 1,141 | — | 1,833 | ||||||||||||||
Trade and other receivables, net | 785 | 188 | — | 973 | |||||||||||||||
Inventory, net | 1,181 | — | — | 1,181 | |||||||||||||||
Short-term marketable securities | 11 | 646 | — | 657 | |||||||||||||||
Other current assets | 252 | 20 | (159 | ) | 113 | ||||||||||||||
Total current assets | 2,921 | 1,995 | (159 | ) | 4,757 | ||||||||||||||
Investments in available-for-sale securities and other cost investments | 4 | 1,271 | — | 1,275 | |||||||||||||||
Investments in affiliates, accounted for using the equity method | 363 | 873 | — | 1,236 | |||||||||||||||
Property and equipment, net | 1,183 | 93 | — | 1,276 | |||||||||||||||
Intangible assets not subject to amortization | 8,389 | 5,399 | — | 13,788 | |||||||||||||||
Intangible assets subject to amortization, net | 1,396 | 871 | — | 2,267 | |||||||||||||||
Other assets, at cost, net of accumulated amortization | 90 | 33 | — | 123 | |||||||||||||||
Total assets | $ | 14,346 | 10,535 | (159 | ) | 24,722 | |||||||||||||
Liabilities and Equity | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Intergroup Payable (receivable) | $ | 53 | (53 | ) | — | — | |||||||||||||
Accounts payable | 571 | 135 | — | 706 | |||||||||||||||
Accrued liabilities | 681 | 123 | — | 804 | |||||||||||||||
Current portion of debt | 39 | 1,009 | — | 1,048 | |||||||||||||||
Current deferred tax liabilities | — | 1,137 | (159 | ) | 978 | ||||||||||||||
Other current liabilities | 199 | 63 | — | 262 | |||||||||||||||
Total current liabilities | 1,543 | 2,414 | (159 | ) | 3,798 | ||||||||||||||
Long-term debt | 5,195 | 1,425 | — | 6,620 | |||||||||||||||
Deferred income tax liabilities | 1,100 | 1,615 | — | 2,715 | |||||||||||||||
Other liabilities | 222 | 111 | — | 333 | |||||||||||||||
Total liabilities | 8,060 | 5,565 | (159 | ) | 13,466 | ||||||||||||||
Equity/Attributed net assets (liabilities) | 6,164 | 504 | — | 6,668 | |||||||||||||||
Noncontrolling interests in equity of subsidiaries | 122 | 4,466 | — | 4,588 | |||||||||||||||
Total liabilities and equity | $ | 14,346 | 10,535 | (159 | ) | 24,722 | |||||||||||||
|
|||||||||||||
STATEMENT OF OPERATIONS INFORMATION | |||||||||||||
Three months ended |
|||||||||||||
Attributed | |||||||||||||
Interactive | Ventures | Consolidated | |||||||||||
Group | Group | Liberty | |||||||||||
amounts in millions | |||||||||||||
Revenue: | |||||||||||||
Net retail sales | $ | 2,495 | — | 2,495 | |||||||||
Other revenue | — | 323 | 323 | ||||||||||
Total revenue | 2,495 | 323 | 2,818 | ||||||||||
Operating costs and expenses: | |||||||||||||
Cost of sales | 1,568 | — | 1,568 | ||||||||||
Operating, including stock-based compensation | 219 | 51 | 270 | ||||||||||
Selling, general and administrative, including stock-based compensation | 280 | 167 | 447 | ||||||||||
Impairment of long-lived assets | 7 | — | 7 | ||||||||||
Depreciation and amortization | 166 | 71 | 237 | ||||||||||
2,240 | 289 | 2,529 | |||||||||||
Operating income | 255 | 34 | 289 | ||||||||||
Other income (expense): | |||||||||||||
Interest expense | (79 | ) | (21 | ) | (100 | ) | |||||||
Share of earnings (losses) of affiliates, net | 7 | (3 | ) | 4 | |||||||||
Realized and unrealized gains (losses) on financial instruments, net | 6 | (47 | ) | (41 | ) | ||||||||
Other, net | (1 | ) | 4 | 3 | |||||||||
(67 | ) | (67 | ) | (134 | ) | ||||||||
Earnings (loss) before income taxes | 188 | (33 | ) | 155 | |||||||||
Income tax benefit (expense) | (74 | ) | 25 | (49 | ) | ||||||||
Net earnings (loss) | 114 | (8 | ) | 106 | |||||||||
Less net earnings (loss) attributable to noncontrolling interests | 9 | 20 | 29 | ||||||||||
Net earnings (loss) attributable to Liberty stockholders | $ | 105 | (28 | ) | 77 | ||||||||
LINT Shares Outstanding |
||||
Outstanding A and B shares as of |
482 | |||
Quarter ended |
||||
LINTA and LINTB Basic and Diluted Shares (in millions) |
|
|||
Basic Weighted Average Shares Outstanding ("WASO") | 486 | |||
Potentially dilutive shares | 10 | |||
Diluted WASO | 496 | |||
|
|||||||||||||
STATEMENT OF OPERATIONS INFORMATION | |||||||||||||
Three months ended |
|||||||||||||
Attributed | |||||||||||||
Interactive | Ventures | Consolidated | |||||||||||
Group | Group | Liberty | |||||||||||
amounts in millions | |||||||||||||
Revenue: | |||||||||||||
Net retail sales |
$ | 2,400 | — | 2,400 | |||||||||
Other revenue | — | 247 | 247 | ||||||||||
Total revenue | 2,400 | 247 | 2,647 | ||||||||||
Operating costs and expenses: | |||||||||||||
Cost of sales | 1,521 | — | 1,521 | ||||||||||
Operating, including stock-based compensation | 207 | 36 | 243 | ||||||||||
Selling, general and administrative, including stock-based compensation | 246 | 116 | 362 | ||||||||||
Depreciation and amortization | 158 | 79 | 237 | ||||||||||
2,132 | 231 | 2,363 | |||||||||||
Operating income | 268 | 16 | 284 | ||||||||||
Other income (expense): | |||||||||||||
Interest expense | (70 | ) | (20 | ) | (90 | ) | |||||||
Share of earnings (losses) of affiliates, net | 4 | 3 | 7 | ||||||||||
Realized and unrealized gains (losses) on financial instruments, net | 4 | 5 | 9 | ||||||||||
Other, net | (15 | ) | (2 | ) | (17 | ) | |||||||
(77 | ) | (14 | ) | (91 | ) | ||||||||
Earnings (loss) before income taxes | 191 | 2 | 193 | ||||||||||
Income tax benefit (expense) | (69 | ) | 26 | (43 | ) | ||||||||
Net earnings (loss) | 122 | 28 | 150 | ||||||||||
Less net earnings (loss) attributable to noncontrolling interests | 13 | 17 | 30 | ||||||||||
Net earnings (loss) attributable to Liberty stockholders | $ | 109 | 11 | 120 | |||||||||
LINT Shares Outstanding |
|||||||||||||
Outstanding A and B shares as of |
520 | ||||||||||||
Quarter ended |
|||||||||||||
LINTA and LINTB Basic and Diluted Shares (in millions) |
|
||||||||||||
Basic Weighted Average Shares Outstanding ("WASO") | 523 | ||||||||||||
Potentially dilutive shares | 8 | ||||||||||||
Diluted WASO | 531 | ||||||||||||
|
|||||||||||||
STATEMENT OF CASH FLOWS INFORMATION | |||||||||||||
Six months ended |
|||||||||||||
Attributed | |||||||||||||
Interactive | Ventures | Consolidated | |||||||||||
Group | Group | Liberty | |||||||||||
amounts in millions | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||
Net earnings (loss) | $ | 234 | (18 | ) | 216 | ||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 329 | 140 | 469 | ||||||||||
Stock-based compensation | 48 | 37 | 85 | ||||||||||
Cash payments for stock based compensation | (5 | ) | (1 | ) | (6 | ) | |||||||
Excess tax benefit from stock based compensation | (9 | ) | (15 | ) | (24 | ) | |||||||
Share of (earnings) losses of affiliates, net | (28 | ) | 26 | (2 | ) | ||||||||
Cash receipts from return on equity investments | 10 | 10 | 20 | ||||||||||
Realized and unrealized gains (losses) on financial instruments, net | (7 | ) | 73 | 66 | |||||||||
Impairment of intangible assets | 7 | — | 7 | ||||||||||
Deferred income tax (benefit) expense | (101 | ) | (1 | ) | (102 | ) | |||||||
Other, net | 5 | 2 | 7 | ||||||||||
Intergroup tax allocation | 105 | (105 | ) | — | |||||||||
Intergroup tax payments | (276 | ) | 276 | — | |||||||||
Changes in operating assets and liabilities | |||||||||||||
Current and other assets | 308 | (65 | ) | 243 | |||||||||
Payables and other current liabilities | (50 | ) | 158 | 108 | |||||||||
Net cash provided (used) by operating activities | 570 | 517 | 1,087 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||
Cash proceeds from dispositions | — | 25 | 25 | ||||||||||
Investments in and loans to cost and equity investees | (2 | ) | (29 | ) | (31 | ) | |||||||
Capital expended for property and equipment | (87 | ) | (42 | ) | (129 | ) | |||||||
Purchases of short term and other marketable securities | (38 | ) | (438 | ) | (476 | ) | |||||||
Sales of short term and other marketable securities | 27 | 614 | 641 | ||||||||||
Acquisitions, net of cash acquired | — | (152 | ) | (152 | ) | ||||||||
Other investing activities, net | (10 | ) | 15 | 5 | |||||||||
Net cash provided (used) by investing activities | (110 | ) | (7 | ) | (117 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||
Borrowings of debt | 1,895 | 5 | 1,900 | ||||||||||
Repayments of debt | (1,739 | ) | (25 | ) | (1,764 | ) | |||||||
Intergroup receipts (payments), net | 2 | (2 | ) | — | |||||||||
Repurchases of Liberty common stock | (478 | ) | — | (478 | ) | ||||||||
Minimum withholding taxes on net settlements of stock-based compensation | (14 | ) | (23 | ) | (37 | ) | |||||||
Excess tax benefit from stock-based compensation | 9 | 15 | 24 | ||||||||||
Other financing activities, net | (36 | ) | — | (36 | ) | ||||||||
Net cash provided (used) by financing activities | (361 | ) | (30 | ) | (391 | ) | |||||||
Effect of foreign currency rates on cash | (5 | ) | 3 | (2 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | 94 | 483 | 577 | ||||||||||
Cash and cash equivalents at beginning of period | 598 | 658 | 1,256 | ||||||||||
Cash and cash equivalents at end period | $ | 692 | 1,141 | 1,833 | |||||||||
|
|||||||||||||
STATEMENT OF CASH FLOWS INFORMATION | |||||||||||||
Six months ended |
|||||||||||||
Attributed | |||||||||||||
Interactive | Ventures | Consolidated | |||||||||||
Group | Group | Liberty | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | amounts in millions | ||||||||||||
Net earnings (loss) | $ | 229 | (26 | ) | 203 | ||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 311 | 156 | 467 | ||||||||||
Stock-based compensation | 53 | 33 | 86 | ||||||||||
Cash payments for stock based compensation | (4 | ) | (1 | ) | (5 | ) | |||||||
Excess tax benefit from stock-based compensation | (7 | ) | (5 | ) | (12 | ) | |||||||
Share of losses (earnings) of affiliates, net | (20 | ) | 24 | 4 | |||||||||
Cash receipts from return on equity investments | 7 | 8 | 15 | ||||||||||
Realized and unrealized gains (losses) on financial instruments, net | (17 | ) | 81 | 64 | |||||||||
Gains (losses) on dispositions of assets | 1 | 1 | 2 | ||||||||||
Deferred income tax (benefit) expense | (86 | ) | (181 | ) | (267 | ) | |||||||
Other, net | 6 | 8 | 14 | ||||||||||
Intergroup tax allocation | (33 | ) | 33 | — | |||||||||
Intergroup tax payments | 94 | (94 | ) | — | |||||||||
Changes in operating assets and liabilities | |||||||||||||
Current and other assets | 324 | (74 | ) | 250 | |||||||||
Payables and other current liabilities | (476 | ) | 102 | (374 | ) | ||||||||
Net cash provided (used) by operating activities | 382 | 65 | 447 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||
Cash proceeds from dispositions | — | 1,136 | 1,136 | ||||||||||
Investments in and loans to cost and equity investees | — | (51 | ) | (51 | ) | ||||||||
Capital expended for property and equipment | (111 | ) | (25 | ) | (136 | ) | |||||||
Purchases of short term and other marketable securities | — | (1,116 | ) | (1,116 | ) | ||||||||
Sales of short term and other marketable securities | 2 | 442 | 444 | ||||||||||
Acquisitions, net of cash acquired | — | (32 | ) | (32 | ) | ||||||||
Other investing activities, net | (7 | ) | (3 | ) | (10 | ) | |||||||
Net cash provided (used) by investing activities | (116 | ) | 351 | 235 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||
Borrowings of debt | 2,246 | 848 | 3,094 | ||||||||||
Repayments of debt | (2,055 | ) | (2,342 | ) | (4,397 | ) | |||||||
Shares repurchased by subsidiary | — | (42 | ) | (42 | ) | ||||||||
Shares issued by subsidiary | — | 19 | 19 | ||||||||||
Excess tax benefit from stock-based compensation | 7 | 5 | 12 | ||||||||||
Minimum withholding taxes on net settlements of stock-based compensation | (7 | ) | (6 | ) | (13 | ) | |||||||
Intergroup receipts (payments), net | 2 | (2 | ) | — | |||||||||
Repurchases of Liberty common stock | (499 | ) | — | (499 | ) | ||||||||
Other financing activities, net | (39 | ) | — | (39 | ) | ||||||||
Net cash provided (used) by financing activities | (345 | ) | (1,520 | ) | (1,865 | ) | |||||||
Effect of foreign currency rates on cash | (29 | ) | — | (29 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | (108 | ) | (1,104 | ) | (1,212 | ) | |||||||
Cash and cash equivalents at beginning of period | 699 | 1,961 | 2,660 | ||||||||||
Cash and cash equivalents at end period | $ | 591 | 857 | 1,448 | |||||||||
Additional Information
Nothing in this press release shall constitute a solicitation to buy or
an offer to sell shares of Liberty's proposed
Participants in a Solicitation
The directors and executive officers of Liberty and other persons may be
deemed to be participants in the solicitation of proxies in respect of
proposals relating to the approval of the issuance of the new tracking
stock. Information regarding the directors and executive officers of
Liberty and other participants in the proxy solicitation and a
description of their respective direct and indirect interests, by
security holdings or otherwise, will be available in the proxy materials
to be filed with the
Source:
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