猫咪社区 Reports Third Quarter 2015 Financial Results

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ENGLEWOOD, Colo.--(BUSINESS WIRE)-- 猫咪社区 ("猫咪社区 Media") (NASDAQ: LMCA, LMCB, LMCK) today reported third quarter 2015 results. Highlights include (1):

  • SiriusXM reported strong third quarter results
  • Subscriber base grew to nearly 29 million
  • Record third quarter revenue up 11% to $1.17 billion
  • Net income of $167 million, an increase of 22%
  • Adjusted EBITDA(2) climbed 17% to record $447 million
  • Free cash flow(2) per fully-diluted share increased 54% to 6.9 cents
  • 猫咪社区 Media鈥檚 ownership of SiriusXM stood at 60.7% as of October 20th
  • Completed hedging period for forward purchase of Live Nation Entertainment shares
  • Acquiring 15.9 million shares at average share price of $24.91; upon settlement will own 34.4%
  • From August 1st through October 31st, repurchased 1.0 million LMCK shares at an average price per share of $36.87 and a total cost of $38.3 million

鈥淪iriusXM had another outstanding quarter, reaching record revenue, adjusted EBITDA and adjusted EBITDA margin. Subscribers reached an all-time high of almost 29 million, and SiriusXM continues to extend its lead in exclusive, valuable content,鈥� stated Greg Maffei, President and CEO of 猫咪社区 Media. 鈥淎t 猫咪社区, we continued to repurchase our shares and completed the hedging period on our forward purchase of Live Nation shares. Upon settlement, our ownership of Live Nation will increase to 34.4%.鈥�

猫咪社区 Media

猫咪社区 Media's revenue increased $100 million to $1.3 billion in the third quarter. Adjusted OIBDA(2) increased $81 million to $473 million and operating income increased $72 million to $321 million. The increases in revenue, adjusted OIBDA and operating income were primarily due to operating results at SiriusXM.

SiriusXM

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 third quarter results on October 22, 2015. For presentation purposes in this release, we include below the results of SiriusXM, as reported by SiriusXM, without regard to the purchase accounting adjustments applied by us for purposes of our financial statements. 猫咪社区 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. For a reconciliation of revenue, adjusted OIBDA (as defined by 猫咪社区 Media) and operating income for SiriusXM's stand-alone operating results as reported by SiriusXM to those results as reported by 猫咪社区 Media, see 猫咪社区 Media's Form 10-Q for the quarter ended September 30, 2015.

Highlights of SiriusXM's earnings release included the following:

  • Record third quarter revenue up 11% to $1.17 billion
  • Third quarter net income climbed 22% to $167 million
  • Adjusted EBITDA(2) climbed 17% to a record $447 million
  • Free cash flow(2) per fully-diluted share increased 54% to 6.9 cents
  • SiriusXM鈥檚 cumulative share repurchases now exceed $6 billion

Share Repurchases

Between the reclassification of the original 猫咪社区 Capital tracking stock on March 3, 2008 and July 23, 2014, 猫咪社区 Media repurchased shares of Series A common stock for aggregate cash consideration of approximately $2.9 billion, representing 51% of shares outstanding(3). From August 1, 2015 through October 31, 2015, 猫咪社区 Media repurchased approximately 1.0 million shares of Series C common stock at an average cost per share of $36.87 for total cash consideration of $38.3 million. For the period covering the creation of the 猫咪社区 Media Series C common stock on July 23, 2014 through October 31, 2015, 猫咪社区 Media repurchased approximately 8.9 million shares of Series A and

Series C common stock collectively at an average cost per share of $37.92 for total cash consideration of $338 million, representing 2.6% of shares outstanding(4). The total remaining repurchase authorization for 猫咪社区 Media stock is approximately $1.3 billion.

FOOTNOTES

1) 听 猫咪社区 Media's President and CEO, Greg Maffei, will discuss these highlights and other matters in 猫咪社区 Media's earnings conference call which will begin at 4:30 p.m. (E.S.T.) on November 4, 2015. For information regarding how to access the call, please see 鈥淚mportant Notice鈥� later in this document.
2) For definitions of adjusted OIBDA (as defined by 猫咪社区 Media), adjusted EBITDA (as defined by SiriusXM) and free cash flow (as defined by SiriusXM) and applicable reconciliations see the accompanying schedules.
3) Based on shares outstanding at the time of the introduction of the original 猫咪社区 Capital stock.
4) Based on shares outstanding as of October 31, 2014. There were no share repurchases from July 23, 2014 through December 31, 2014.
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NOTES

Unless otherwise noted, the foregoing discussion compares financial information for the three months ended September 30, 2015 to the same period in 2014.

The following financial information with respect to 猫咪社区 Media's equity affiliates and available for sale securities is intended to supplement 猫咪社区 Media's condensed consolidated balance sheet and statement of operations to be included in its Form 10-Q for the period ended September 30, 2015.

Fair Value of Corporate Public Holdings

听 听 听 听 听 听
(amounts in millions) 6/30/2015 9/30/2015
Live Nation Debt and Equity(1) $ 1,501 1,316
Other Public Holdings(2) 听 580 听 461
Total 猫咪社区 Media $ 2,081 听 1,777

________________________

(1) 听 Represents the fair value of 猫咪社区 Media's debt and equity investments. In accordance with GAAP, 猫咪社区 Media accounts for its investment in the equity of Live Nation using the equity method of accounting and includes it in its consolidated balance sheet at its historical carrying value of $375 million and $395 million as of June 30, 2015 and September 30, 2015, respectively.
(2) Represents the carrying value of other public holdings which are accounted for at fair value.
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Cash and Debt

The following presentation is provided to separately identify cash and liquid investments and debt information.

听 听 听 听 听
(amounts in millions) 6/30/2015 9/30/2015
Cash and liquid investments(1)(2) $ 841 607
Less: Short-term marketable securities 听 51 听 听 19 听
Total 猫咪社区 Media Cash (GAAP) $ 790 听 听 588 听
听
Debt:
SiriusXM senior notes(3) $ 5,150 5,150
猫咪社区 1.375% cash convertible notes due 2023(4) 1,000 1,000
Margin loans 250 250
Atlanta Braves debt(5) 185 175
Other subsidiary debt(6) 听 16 听 听 305 听
Total 猫咪社区 Media Debt $ 6,601 听 听 6,880 听
Unamortized discount and fair market value adjustment 听 (99 ) 听 (78 )
Total 猫咪社区 Media Debt (GAAP) $ 6,502 听 听 6,802 听

_______________________

(1) 听 Includes $51 million and $19 million of short-term marketable securities with an original maturity greater than 90 days as of June 30, 2015 and September 30, 2015, respectively.
(2) Includes $294 million and $153 million of cash and liquid investments held at SiriusXM as of June 30, 2015 and September 30, 2015, respectively.
(3) Outstanding principal amount of Senior Notes with no reduction for the net unamortized discount.
(4) Face amount of the cash convertible notes with no adjustment for the fair market value adjustment.
(5) Includes Atlanta National League Baseball Club, Inc. borrowings largely to fund the construction of a new stadium in Cobb County, Georgia; Atlanta Braves鈥� construction financing obligations as of 6/30/2015 have been reclassified as Other long-term liabilities for comparative purposes.
(6) Includes SiriusXM capital leases and borrowings under the SiriusXM revolving credit facility.
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Total 猫咪社区 Media cash and liquid investments decreased $234 million during the quarter. Cash from operations at SiriusXM and additional borrowings at SiriusXM were more than offset by shares repurchased by SiriusXM, shares repurchased by 猫咪社区 Media and capital expenditures. Included in the consolidated cash and liquid investments balance at September 30, 2015 is $153 million at SiriusXM. Although SiriusXM is a consolidated subsidiary, it is a separate public company with a significant non-controlling interest, therefore 猫咪社区 Media does not have ready access to SiriusXM鈥檚 cash balance. Excluding cash held at SiriusXM, 猫咪社区 Media's cash and liquid investments balance at September 30, 2015 was $454 million.

Total 猫咪社区 Media debt increased by $0.3 billion primarily as a result of borrowings under the SiriusXM revolving credit facility.

Important Notice: 猫咪社区 (Nasdaq: LMCA, LMCB, LMCK) President and CEO, Greg Maffei, will discuss 猫咪社区 Media's earnings release in a conference call which will begin at 4:30 p.m. (E.S.T.) on November 4, 2015. The call can be accessed by dialing (844) 838-8043 or (678) 509-7480 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 . Links to this press release will also be available on the 猫咪社区 Media website.

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, future financial prospects, growth of SiriusXM's subscriber base, the future financial performance of SiriusXM, the continuation of our stock repurchase plan, the repurchase activity of SiriusXM, the construction of the new stadium for the Atlanta Braves and the associated mixed use development, the settlement of our forward purchase of Live Nation shares 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 competitive position of SiriusXM versus other radio and audio entertainment providers, the ability of SiriusXM to attract and retain subscribers, the dependence of SiriusXM upon the auto industry, general economic conditions, the failure of SiriusXM鈥檚 satellites (which, in most cases, are not insured), the interruption or failure of SiriusXM鈥檚 information and communication systems, the security of personal customer information, royalties SiriusXM pays for music rights (which increase over time), 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, changes in consumer protection laws and their enforcement, continued access to capital on terms acceptable to 猫咪社区 Media, changes in law and market conditions conducive to stock repurchases. These forward-looking statements speak only as of the date of this presentation, and 猫咪社区 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 猫咪社区 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 猫咪社区 Media, including the most recent Forms 10-K and 10-Q, for additional information about 猫咪社区 Media and about the risks and uncertainties related to 猫咪社区 Media's business which may affect the statements made in this presentation.

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LIBERTY MEDIA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)

听
听
12/31/2014 听 听 9/30/2015
amounts in millions
Assets
Current assets:
Cash and cash equivalents $ 681 588
Trade and other receivables, net 235 278
Short term marketable securities 199 19
Deferred income tax assets 931 840
Other current assets 听 270 听 385 听
Total current assets 听 2,316 听 2,110 听
Investments in available-for-sale securities and other cost investments 816 541
Investments in affiliates, accounted for using the equity method 851 759
听
Property and equipment, at cost 2,215 2,443
Accumulated depreciation 听 (501 ) (656 )
1,714 1,787
Intangible assets not subject to amortization
Goodwill 14,345 14,345
FCC licenses 8,600 8,600
Other 听 1,073 听 1,073 听
24,018 24,018
听
Intangible assets subject to amortization, net 1,166 1,112
Other assets, at cost, net of accumulated amortization 听 326 听 353 听
Total assets $ 31,207 听 30,680 听
听
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities $ 712 755
Current portion of debt 257 256
Deferred revenue 1,641 1,717
Other current liabilities 听 40 听 33 听
Total current liabilities 听 2,650 听 2,761 听
听
Long-term debt 5,595 6,546
Deferred income tax liabilities 2,438 2,429
Other liabilities 听 348 听 502 听
Total liabilities 听 11,031 听 12,238 听
听
Equity:
Total stockholders' equity 11,398 10,994
Non-controlling interests in equity of subsidiaries 听 8,778 听 7,448 听
Total equity 听 20,176 听 18,442 听
Commitments and contingencies
Total liabilities and equity $ 31,207 听 30,680 听
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听 听 听 听 听 听 听 听

LIBERTY MEDIA CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)

听
听
Three Months Ended Nine Months Ended
9/30/2014 听 听 9/30/2015 听 听 9/30/2014 听 听 9/30/2015
amounts in millions
Revenue:
Subscriber revenue $ 892 969 2,602 2,812
Other revenue 听 292 听 315 听 753 听 775 听
Total revenue 1,184 1,284 3,355 3,587
听
Operating costs and expenses:
Cost of subscriber services
Revenue share and royalties 204 239 600 783
Programming and content(1) 66 68 194 191
Customer service and billing(1) 94 94 276 280
Other(1) 33 33 97 98
Subscriber acquisition cost 120 133 367 392
Other operating expense(1) 119 93 274 226
Selling, general and administrative(1) 209 207 640 608
Depreciation and amortization 听 90 听 96 听 272 听 272 听
听 935 听 963 听 2,720 听 2,850 听
Operating income (loss) 249 321 635 737
听
Other income (expense):
Interest expense (70 ) (84 ) (185 ) (244 )
Share of earnings (losses) of affiliates, net (6 ) 29 (53 ) (8 )
Realized and unrealized gains (losses) on financial instruments, net (15 ) (200 ) (55 ) (188 )
Other, net 听 (8 ) 4 听 (46 ) 12 听
听 (99 ) (251 ) (339 ) (428 )
Earnings (loss) before income taxes 150 70 296 309
Income tax (expense) benefit 听 (63 )