Liberty Interactive Corporation (“Liberty”) (Nasdaq: LINTA, LINTB,
LVNTA, LVNTB) today reported third quarter 2013 results. Highlights
include(1):
Attributed to Liberty Interactive Group
-
Grew QVC US revenue by 5% and adjusted OIBDA(2) by 9%
-
QVC US operating income increased by 10%
-
QVC.com revenue as a percent of total US revenue increased to 41%,
a 2 point increase
-
QVC US mobile penetration was 32% of QVC.com orders
-
Repurchased $303 million LINTA shares from August 1 to October 31, 2013
-
Announced plan to create QVC Group and Liberty Digital Commerce Group
tracking stocks out of Liberty Interactive Group
Attributed to Liberty Ventures Group
-
Announced plan to spin-off Liberty TripAdvisor Holdings
-
Invested $300 million in Abengoa solar project
“QVC again posted solid results in the US, while the international
markets proved more challenging and were negatively impacted by currency
fluctuations in Japan and the UK. We announced our plan to create the
new QVC Group and Liberty Digital Commerce Group tracking stocks,”
stated Greg Maffei, Liberty President and CEO. “We repurchased $303
million of Liberty Interactive stock from August 1 to October 31, and
$854 million year to date. We announced our plan to spin-off Liberty
TripAdvisor Holdings (which is attributable to Liberty Ventures) and we
expect the spin-off to occur in the first half of 2014.”
LIBERTY INTERACTIVE GROUP - Liberty Interactive Group's revenue
increased 2% to $2.2 billion in the third quarter, adjusted OIBDA was
relatively flat at $396 million and operating income increased 3% to
$199 million. The increase in revenue was due to favorable results at
QVC and the eCommerce companies.
QVC
QVC's consolidated net revenue increased 2% in the third quarter to $1.9
billion. During the same period, adjusted OIBDA increased 3% to $408
million and operating income remained relatively flat at $259 million.
On a constant currency basis, consolidated net revenue increased 4% and
adjusted OIBDA grew 5% in the third quarter as the US denominated
results were negatively impacted by exchange rate fluctuations,
primarily the strengthening of the US Dollar against the Japanese Yen,
which decreased 20%.
“QVC had strong results in the third quarter, and marked great success
in the growth of our global TV and digital platforms,” said Mike George,
QVC President and CEO. “We’ve expanded QVC’s audience reach to 290
million homes worldwide, and created new digital platforms that include
the launch of toGather, our new social commerce platform. We’re
delivering a unique shopping experience that is perfectly aligned with
the megatrends that are reshaping the retail industry today.”
QVC's US revenue increased 5% to $1.3 billion in the third quarter
primarily as a result of strength in the home, accessories and beauty
categories. Average selling price per unit ("ASP") increased 5% from
$55.21 to $57.88 and units sold increased 1% compared to the prior year
third quarter. Returns as a percent of gross product revenue improved 42
basis points due primarily to lower product return mix within the
categories. In the same period, QVC US eCommerce revenue increased 12%
to $535 million and grew to 41% from 39% as a percentage of total QVC US
net revenue. Adjusted OIBDA increased 9% to $304 million and adjusted
OIBDA margin(2) increased 86 basis points in the third
quarter. Adjusted OIBDA margin increased primarily due to improved
product margins, due in part to a favorable product mix, and favorable
warehouse and freight expenses.
QVC's international revenue in US Dollars decreased 5% in the third
quarter to $644 million. The third quarter results included the negative
impact of the strengthening of the US Dollar against the Japanese Yen,
and to a lesser extent, the UK Pound Sterling, which were somewhat
offset by the weakening of the US Dollar against the Euro. Adjusted
OIBDA decreased 13% to $104 million and adjusted OIBDA margin decreased
132 basis points in the third quarter. In constant currency, QVC's
international revenue and adjusted OIBDA increased 2% and decreased 4%,
respectively.
QVC Japan's revenue decreased 1% in local currency in the third quarter.
QVC Japan's ASP in local currency decreased 3%, but units sold increased
4% in the third quarter. Japan experienced growth in apparel that was
more than offset by declines in accessories and beauty sales as well as
a 205 basis point increase in the return rate driven by the higher mix
of apparel that returns at a higher rate. QVC Japan's adjusted OIBDA in
local currency decreased 14% and adjusted OIBDA margin decreased 277
basis points in the third quarter. The decrease in adjusted OIBDA margin
was primarily due to lower product margins, increased programming
distribution costs and higher personnel expenses.
In US Dollars, QVC Japan's revenue and adjusted OIBDA decreased 22% and
31%, respectively. The decrease in revenue and adjusted OIBDA during the
quarter was driven by a 20% decline in the Japanese Yen, which created
significant pressure on US Dollar denominated results.
QVC Germany's revenue remained relatively flat in local currency in the
third quarter. QVC Germany's ASP in local currency decreased 3%, while
units sold increased 6% in the third quarter. QVC Germany had growth in
apparel and home sales, offset by a decrease in jewelry and beauty as
well as a 170 basis point increase in the return rate due to the greater
mix of apparel that returns at a higher rate as well as higher returns
in the apparel, jewelry and home categories. QVC Germany's adjusted
OIBDA in local currency decreased 3% and adjusted OIBDA margin decreased
54 basis points for the third quarter. Adjusted OIBDA margin decreased
primarily due to higher information technology and personnel expenses,
partially offset by a reversal of an accrual made in connection with
additional taxes and social security contributions related to a
reclassification of certain workers.
QVC UK's revenue grew 7% in local currency in the third quarter
primarily due to sales in the home and accessories categories. QVC UK's
ASP in local currency increased 9%, while units sold decreased 1% in the
third quarter. UK's adjusted OIBDA in local currency increased 25% and
adjusted OIBDA margin increased 258 basis points in the third quarter.
The increase in adjusted OIBDA margin was primarily due to improved
product margins.
QVC Italy's revenue increased 27% in local currency in the third
quarter. QVC Italy's sales were primarily from the home, beauty and
apparel product categories. QVC Italy's ASP in local currency decreased
5%, but units sold increased 31% in the third quarter. In the same
period, the adjusted OIBDA deficit remained at €4 million as compared to
the third quarter of 2012, primarily due to one-time warehouse
transition costs from the QVC Germany Distribution Center to an
outsourced provider in Italy.
CNR Home Shopping Co., Ltd. ("CNRS"), QVC's joint venture in China,
experienced a revenue increase of 54% in local currency in the third
quarter. In the same period, CNRS' adjusted OIBDA deficit improved by
44%. This joint venture is being accounted for as an equity method
investment.
QVC's outstanding bank and bond debt was $3.5 billion at September 30,
2013, an increase of $101 million since December 31, 2012.
eCommerce Businesses
In the aggregate, Liberty Interactive Group's eCommerce businesses
increased revenue 7% to $298 million for the third quarter. The
increased revenue was the result of increased marketing efforts driving
additional traffic, investments in site improvements, increased shipping
charges and broader inventory offerings. Additionally, the increased
revenue was partially driven by the selling of product at a discount to
continue to manage inventory to appropriate levels. Adjusted OIBDA
decreased $9 million to a loss of $5 million. The decrease in adjusted
OIBDA was the result of lower product margins as a result of continued
product discounts and promotions and increased credit card chargebacks.
Operating income improved by 18% to a loss of $46 million. The decrease
in operating loss was primarily attributable to less significant
impairments during the current quarter, offset by greater depreciation
and amortization and stock compensation expense.
On October 10, 2013, Liberty announced that its board has authorized
management to pursue a plan to recapitalize its Liberty Interactive
Group tracking stock into two new tracking stocks, one (currently the
Liberty Interactive Group common stock) to be renamed the QVC Group
common stock and the other to be designated as the Liberty Digital
Commerce Group common stock. In the recapitalization, record holders of
Series A and Series B Liberty Interactive Group common stock would
receive 1 share of the corresponding series of Liberty Digital Commerce
Group common stock for each 10 shares of the renamed QVC Group common
stock held by them as of the effective date. Liberty intends to
attribute to the Liberty Digital Commerce Group its subsidiaries Provide
Commerce, Backcountry.com, Bodybuilding.com, CommerceHub, Right Start,
and Evite along with cash and certain liabilities. The QVC Group, which
is currently known as the Liberty Interactive Group, would have
attributed to it Liberty’s subsidiary QVC, Inc. and its approximate 38%
interest in HSN, Inc., along with cash and certain liabilities. Liberty
expects that the Series A and Series B Liberty Digital Commerce Group
common stock will trade under the symbols “LDCA” and “LDCB” and that the
Series A and Series B QVC Group common stock will trade under the
symbols “QVCA” and “QVCB,” in each case, on the Nasdaq Stock Market.
The recapitalization is subject to various conditions, including the
requisite approval of the holders of Liberty Interactive Group common
stock and Liberty Ventures Group common stock at a stockholders’ meeting
and the receipt of the opinion of tax counsel. Subject to the
satisfaction of these conditions, the recapitalization is expected to
occur in the first half of 2014.
Share Repurchases
From August 1, 2013 through October 31, 2013, Liberty repurchased
approximately 12.4 million Series A Liberty Interactive shares (Nasdaq:
LINTA) at an average cost per share of $24.37 for total cash
consideration of $303.3 million. Since the creation of the Liberty
Interactive stock in May 2006, Liberty has repurchased approximately
220.0 million shares at an average cost per share of $19.65 for
aggregate cash consideration of $4.3 billion. These repurchases
represent approximately 31.2% of the shares outstanding at the time of
creation of the Liberty Interactive stock. All repurchases up to August
9, 2012, the date on which the Liberty Interactive stock was
recapitalized to create the Liberty Ventures stock, were comprised of
shares of the combined stocks. The total remaining repurchase
authorization for Liberty Interactive Group stock is approximately $406
million.
Liberty Interactive Group holds controlling interests in companies that
are engaged in digital commerce, including QVC, Provide Commerce,
Backcountry.com, Bodybuilding.com, Celebrate Interactive, CommerceHub,
and also owns an interest in HSN.
LIBERTY VENTURES GROUP - As of September 30, 2013, the fair value
of the public equity method securities and other public holdings
attributed to the Liberty Ventures Group was $1,662 million and $947
million, respectively. When compared to June 30, 2013, the fair value of
Liberty Ventures Group's public equity method securities decreased 6%.
The Liberty Ventures Group's other public holdings balance increased 3%
primarily due to changes in market prices of certain securities during
the third quarter.
On October 10, 2013, Liberty announced that its board has also
authorized management to pursue a plan to spin-off to holders of its
Liberty Ventures Group common stock shares of a newly formed company to
be called Liberty TripAdvisor Holdings (“Trip Holdings”). Trip Holdings
would be comprised of, among other things, Liberty’s 22% economic and
57% voting interest in TripAdvisor, as well as Liberty’s BuySeasons
business, which is currently a part of Liberty’s subsidiary Celebrate
Interactive, LLC (“Celebrate Interactive”) and an anticipated net debt
balance of $350 million. BuySeasons would be reattributed from the
Liberty Interactive Group to the Liberty Ventures Group prior to the
spin-off and cash equal to the fair market value of BuySeasons would be
reattributed from the Liberty Ventures Group to the Liberty Interactive
Group. The Evite business, also currently a part of Celebrate
Interactive, would remain at Liberty attributed to the Liberty
Interactive Group (or, assuming the completion of the recapitalization,
the new Liberty Digital Commerce Group). In the spin-off, record holders
of Series A and Series B Liberty Ventures common stock would receive 1
share of the corresponding series of Trip Holdings common stock for each
share of the Liberty Ventures common stock held by them as of a
to-be-determined record date. Liberty expects that the Series A and
Series B Liberty TripAdvisor Holdings common stock will trade under the
symbols “LTRPA” and “LTRPB” and that the Series A and Series B Liberty
Ventures Group common stock will continue to trade under the symbols
“LVNTA” and “LVNTB,” in each case, on the Nasdaq Stock Market.
The spin-off is intended to be tax-free to stockholders of Liberty and
its completion will be subject to various conditions, including the
receipt of an IRS private letter ruling and an opinion of tax counsel.
Subject to the satisfaction of these conditions, the completion of the
spin-off is expected to occur in the first half of 2014.
Share Repurchases
There were no repurchases of Liberty Ventures Group common stock
(Nasdaq: LVNTA) from August 1, 2013 through October 31, 2013. The
Liberty Ventures Group does not have an outstanding stock repurchase
authorization at this time.
The businesses and assets attributed to the Liberty Ventures Group are
all of Liberty's businesses and assets other than those attributed to
the Liberty Interactive Group and include its subsidiary TripAdvisor,
its interest in Expedia, and minority interests in Time Warner and Time
Warner Cable. TripAdvisor is a separate publicly traded company and
additional information about TripAdvisor can be obtained through its
website and filings with the Securities and Exchange Commission.
FOOTNOTES
|
|
|
1)
|
|
Liberty's President and CEO, Greg Maffei, will discuss these
highlights and other matters in Liberty's earnings conference call
which will begin at 4:00 p.m. (ET) on November 5, 2013. For
information regarding how to access the call, please see “Important
Notice” later in this document.
|
|
|
|
2)
|
|
For a definition of adjusted OIBDA and applicable reconciliations
and a definition of adjusted OIBDA margin, see the accompanying
schedules.
|
|
|
|
|
|
|
|
LIBERTY INTERACTIVE GROUP FINANCIAL
METRICS - QUARTER
|
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in millions)
|
|
|
3Q12
|
|
|
3Q13
|
|
|
% Change
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
QVC
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
$
|
1,237
|
|
|
|
$
|
1,303
|
|
|
|
5
|
%
|
|
International
|
|
|
681
|
|
|
|
644
|
|
|
|
(5
|
)%
|
|
Total QVC Revenue
|
|
|
1,918
|
|
|
|
$
|
1,947
|
|
|
|
2
|
%
|
|
eCommerce businesses
|
|
|
278
|
|
|
|
298
|
|
|
|
7
|
%
|
|
Total Liberty Interactive Group Revenue
|
|
|
$
|
2,196
|
|
|
|
$
|
2,245
|
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBDA
|
|
|
|
|
|
|
|
|
|
|
QVC
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
$
|
278
|
|
|
|
$
|
304
|
|
|
|
9
|
%
|
|
International
|
|
|
119
|
|
|
|
104
|
|
|
|
(13
|
)%
|
|
Total QVC Adjusted OIBDA
|
|
|
397
|
|
|
|
408
|
|
|
|
3
|
%
|
|
eCommerce businesses
|
|
|
4
|
|
|
|
(5
|
)
|
|
|
(225
|
)%
|
|
Corporate and other
|
|
|
(5
|
)
|
|
|
(7
|
)
|
|
|
(40
|
)%
|
|
Total Liberty Interactive Group Adjusted OIBDA
|
|
|
$
|
396
|
|
|
|
$
|
396
|
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
|
|
QVC
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
$
|
173
|
|
|
|
$
|
191
|
|
|
|
10
|
%
|
|
International
|
|
|
87
|
|
|
|
68
|
|
|
|
(22
|
)%
|
|
Total QVC Operating Income
|
|
|
260
|
|
|
|
259
|
|
|
|
—
|
%
|
|
eCommerce businesses
|
|
|
(56
|
)
|
|
|
(46
|
)
|
|
|
18
|
%
|
|
Corporate and other
|
|
|
(11
|
)
|
|
|
(14
|
)
|
|
|
(27
|
)%
|
|
Total Liberty Interactive Group Operating Income
|
|
|
$
|
193
|
|
|
|
$
|
199
|
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
LINT Shares Outstanding
|
|
|
10/31/2012
|
|
|
10/31/2013
|
|
|
|
|
Outstanding A and B shares
|
|
|
544
|
|
|
|
508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
LINTA and LINTB Basic and Diluted Shares
|
|
|
Quarter ended
9/30/2012(1)
|
|
|
Quarter ended
9/30/2013
|
|
|
|
|
Basic Weighted Average Shares Outstanding (“WASO”)
|
|
|
542
|
|
|
|
513
|
|
|
|
|
|
Potentially dilutive Shares
|
|
|
10
|
|
|
|
10
|
|
|
|
|
|
Diluted WASO
|
|
|
552
|
|
|
|
523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Represents the Liberty Interactive Group from the date of the
recapitalization of Liberty Interactive Corporation into the Liberty
Interactive Group and Liberty Ventures Group tracking stocks on
August 9, 2012 through September 30, 2012.
|
|
|
|
|
|
|
|
QVC OPERATING METRICS - QUARTER
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in millions except average sale price amounts)
|
|
|
|
|
3Q12
|
|
|
|
|
3Q13
|
|
|
|
|
% Change
|
|
QVC - Consolidated(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
$
|
1,918
|
|
|
|
|
|
$
|
1,947
|
|
|
|
|
|
2
|
%
|
|
Adjusted OIBDA
|
|
|
|
|
$
|
397
|
|
|
|
|
|
$
|
408
|
|
|
|
|
|
3
|
%
|
|
Adjusted OIBDA margin
|
|
|
|
|
20.70
|
%
|
|
|
|
|
20.96
|
%
|
|
|
|
|
26 bps
|
|
Operating Income
|
|
|
|
|
$
|
260
|
|
|
|
|
|
$
|
259
|
|
|
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
eCommerce and Mobile Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
eCommerce $ of total revenue
|
|
|
|
|
$
|
642
|
|
|
|
|
|
$
|
705
|
|
|
|
|
|
10
|
%
|
|
eCommerce % of total revenue
|
|
|
|
|
33.47
|
%
|
|
|
|
|
36.21
|
%
|
|
|
|
|
274 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile % of total eCommerce(2) |
|
|
|
|
|
23.82
|
%
|
|
|
|
|
32.70
|
%
|
|
|
|
|
888 bps
|
|
QVC - US(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
$
|
1,237
|
|
|
|
|
|
$
|
1,303
|
|
|
|
|
|
5
|
%
|
|
Adjusted OIBDA
|
|
|
|
|
$
|
278
|
|
|
|
|
|
$
|
304
|
|
|
|
|
|
9
|
%
|
|
Adjusted OIBDA margin
|
|
|
|
|
22.47
|
%
|
|
|
|
|
23.33
|
%
|
|
|
|
|
86 bps
|
|
Operating Income
|
|
|
|
|
$
|
173
|
|
|
|
|
|
$
|
191
|
|
|
|
|
|
10
|
%
|
|
Average sale price (ASP) $
|
|
|
|
|
55.21
|
|
|
|
|
|
57.88
|
|
|
|
|
|
5
|
%
|
|
Units sold
|
|
|
|
|
24.64
|
|
|
|
|
|
24.82
|
|
|
|
|
|
1
|
%
|
|
Return rate
|
|
|
|
|
20.05
|
%
|
|
|
|
|
19.63
|
%
|
|
|
|
|
(42) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
eCommerce and Mobile Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
eCommerce $ of US revenue
|
|
|
|
|
$
|
479
|
|
|
|
|
|
$
|
535
|
|
|
|
|
|
12
|
%
|
|
eCommerce % of US revenue
|
|
|
|
|
38.72
|
%
|
|
|
|
|
41.06
|
%
|
|
|
|
|
234 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile % of US eCommerce(2) |
|
|
|
|
21.68
|
%
|
|
|
|
|
31.62
|
%
|
|
|
|
|
994 bps
|
|
QVC - Japan(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
$
|
301
|
|
|
|
|
|
$
|
236
|
|
|
|
|
|
(22
|
)%
|
|
Adjusted OIBDA
|
|
|
|
|
$
|
67
|
|
|
|
|
|
$
|
46
|
|
|
|
|
|
(31
|
)%
|
|
Adjusted OIBDA margin
|
|
|
|
|
22.26
|
%
|
|
|
|
|
19.49
|
%
|
|
|
|
|
(277) bps
|
|
Operating Income
|
|
|
|
|
$
|
61
|
|
|
|
|
|
38
|
|
|
|
|
|
(38
|
)%
|
|
Average sale price (ASP) ¥
|
|
|
|
|
6,214.50
|
|
|
|
|
|
6,029.91
|
|
|
|
|
|
(3
|
)%
|
|
Units sold
|
|
|
|
|
4.18
|
|
|
|
|
|
4.36
|
|
|
|
|
|
4
|
%
|
|
QVC - Germany(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
$
|
211
|
|
|
|
|
|
$
|
224
|
|
|
|
|
|
6
|
%
|
|
Adjusted OIBDA
|
|
|
|
|
$
|
36
|
|
|
|
|
|
$
|
37
|
|
|
|
|
|
3
|
%
|
|
Adjusted OIBDA margin
|
|
|
|
|
17.06
|
%
|
|
|
|
|
16.52
|
%
|
|
|
|
|
(54) bps
|
|
Operating Income
|
|
|
|
|
$
|
21
|
|
|
|
|
|
$
|
19
|
|
|
|
|
|
(10
|
)%
|
|
Average sale price (ASP) €
|
|
|
|
|
35.23
|
|
|
|
|
|
34.03
|
|
|
|
|
|
(3
|
)%
|
|
Units sold
|
|
|
|
|
6.16
|
|
|
|
|
|
6.55
|
|
|
|
|
|
6
|
%
|
|
QVC - UK(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
$
|
149
|
|
|
|
|
|
$
|
156
|
|
|
|
|
|
5
|
%
|
|
Adjusted OIBDA
|
|
|
|
|
$
|
21
|
|
|
|
|
|
$
|
26
|
|
|
|
|
|
24
|
%
|
|
Adjusted OIBDA margin
|
|
|
|
|
14.09
|
%
|
|
|
|
|
16.67
|
%
|
|
|
|
|
258 bps
|
|
Operating Income
|
|
|
|
|
$
|
15
|
|
|
|
|
|
$
|
21
|
|
|
|
|
|
40
|
%
|
|
Average sale price (ASP) £
|
|
|
|
|
27.91
|
|
|
|
|
|
30.50
|
|
|
|
|
|
9
|
%
|
|
Units sold
|
|
|
|
|
3.61
|
|
|
|
|
|
3.57
|
|
|
|
|
|
(1
|
)%
|
|
QVC - Italy(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
$
|
20
|
|
|
|
|
|
$
|
28
|
|
|
|
|
|
40
|
%
|
|
Adjusted OIBDA
|
|
|
|
|
$
|
(5
|
)
|
|
|
|
|
$
|
(5
|
)
|
|
|
|
|
—
|
%
|
|
Adjusted OIBDA margin
|
|
|
|
|
(25.00
|
)%
|
|
|
|
|
(17.86
|
)%
|
|
|
|
|
714 bps
|
|
Operating Income
|
|
|
|
|
$
|
(10
|
)
|
|
|
|
|
$
|
(10
|
)
|
|
|
|
|
—
|
%
|
|
Average sale price (ASP) €
|
|
|
|
|
33.01
|
|
|
|
|
|
31.51
|
|
|
|
|
|
(5
|
)%
|
|
Units sold
|
|
|
|
|
0.54
|
|
|
|
|
|
0.71
|
|
|
|
|
|
31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
NOTES
Unless otherwise noted, the foregoing discussion compares financial
information for the three months ended September 30, 2013 to the same
period in 2012.
The following financial information with respect to Liberty's equity
affiliates and available for sale securities is intended to supplement
Liberty's consolidated statements of operations which are included in
its Form 10-Q.
|
Fair Value of Public Holdings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in millions)
|
|
|
|
|
6/30/2013
|
|
|
|
|
9/30/2013
|
|
HSN(1) |
|
|
|
|
$
|
1,075
|
|
|
|
|
|
$
|
1,073
|
|
Total Attributed Liberty Interactive Group
|
|
|
|
|
$
|
1,075
|
|
|
|
|
|
$
|
1,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expedia(2) |
|
|
|
|
$
|
1,388
|
|
|
|
|
|
$
|
1,196
|
|
Interval Leisure Group and Tree.com(3) |
|
|
|
|
379
|
|
|
|
|
|
466
|
|
Other Public Holdings(4) |
|
|
|
|
917
|
|
|
|
|
|
947
|
|
Total Attributed Liberty Ventures Group
|
|
|
|
|
$
|
2,684
|
|
|
|
|
|
$
|
2,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Represents fair value of Liberty Interactive Group's investment in
HSN. In accordance with GAAP, Liberty Interactive Group accounts for
this investment using the equity method of accounting and includes
this investment in its attributed balance sheet at its historical
carrying value which aggregated $270 million and $283 million at
June 30, 2013 and September 30, 2013, respectively.
|
|
|
|
(2)
|
|
Represents fair value of Liberty Ventures Group's investment in
Expedia. In accordance with GAAP, Liberty Ventures Group accounts
for this investment using the equity method of accounting and
includes this investment in its attributed balance sheet at its
historical carrying value which aggregated $438 million and $465
million at June 30, 2013 and September 30, 2013, respectively.
|
|
|
|
(3)
|
|
Represents fair value of Liberty Ventures Group's investments. In
accordance with GAAP, Liberty Ventures Group accounts for these
investments using the equity method of accounting and includes these
investments in its attributed balance sheet at their historical
carrying values which aggregated $95 million and $98 million at June
30, 2013 and September 30, 2013, respectively.
|
|
|
|
(4)
|
|
Represents Liberty Ventures Group's other public holdings which are
accounted for at fair value. Excludes $444 million and $392 million
of long-term marketable securities as of June 30, 2013 and September
30, 2013, respectively.
|
|
|
|
|
|
|
Cash and Debt
The following presentation is provided to separately identify cash and
liquid investments and debt information.
|
(amounts in millions)
|
|
|
|
|
6/30/2013
|
|
|
|
|
9/30/2013
|
|
Cash and Liquid Investments Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
Liberty Interactive Group
|
|
|
|
|
$
|
591
|
|
|
|
|
|
$
|
455
|
|
|
Liberty Ventures Group(1)(2)(3) |
|
|
|
|
1,809
|
|
|
|
|
|
1,470
|
|
|
Total Liberty Consolidated Cash and Liquid Investments
|
|
|
|
|
$
|
2,400
|
|
|
|
|
|
$
|
1,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Short-term marketable securities - Liberty Ventures Group
|
|
|
|
|
$
|
508
|
|
|
|
|
|
$
|
552
|
|
|
Long-term marketable securities - Liberty Ventures Group
|
|
|
|
|
444
|
|
|
|
|
|
392
|
|
|
Total Liberty Consolidated Cash (GAAP)
|
|
|
|
|
$
|
1,448
|
|
|
|
|
|
$
|
981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
|
|
|
|
|
Senior notes and debentures(4) |
|
|
|
|
$
|
792
|
|
|
|
|
|
$
|
792
|
|
|
Senior exchangeable debentures(5) |
|
|
|
|
—
|
|
|
|
|
|
400
|
|
|
QVC senior notes(4) |
|
|
|
|
2,819
|
|
|
|
|
|
2,819
|
|
|
QVC bank credit facility
|
|
|
|
|
990
|
|
|
|
|
|
673
|
|
|
Other
|
|
|
|
|
138
|
|
|
|
|
|
153
|
|
|
Total Attributed Liberty Interactive Group Debt
|
|
|
|
|
$
|
4,739
|
|
|
|
|
|
$
|
4,837
|
|
|
Unamortized discount and fair market value adjustment
|
|
|
|
|
(15
|
)
|
|
|
|
|
(2
|
)
|
|
Total Attributed Liberty Interactive Group Debt (GAAP)
|
|
|
|
|
$
|
4,724
|
|
|
|
|
|
$
|
4,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior exchangeable debentures(5) |
|
|
|
|
$
|
2,146
|
|
|
|
|
|
$
|
2,091
|
|
|
TripAdvisor debt facilities
|
|
|
|
|
385
|
|
|
|
|
|
376
|
|
|
Total Attributed Liberty Ventures Group Debt
|
|
|
|
|
$
|
2,531
|
|
|
|
|
|
$
|
2,467
|
|
|
Fair market value adjustment
|
|
|
|
|
(267
|
)
|
|
|
|
|
(268
|
)
|
|
Total Attributed Liberty Ventures Group Debt (GAAP)
|
|
|
|
|
$
|
2,264
|
|
|
|
|
|
$
|
2,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liberty Interactive Corporation Debt (GAAP)
|
|
|
|
|
$
|
6,988
|
|
|
|
|
|
$
|
7,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Includes $508 million and $552 million of short-term marketable
securities with an original maturity greater than 90 days as of June
30, 2013 and September 30, 2013, respectively.
|
|
|
|
(2)
|
|
Includes $444 million and $392 million of marketable securities with
an original maturity greater than one year as of June 30, 2013 and
September 30, 2013, respectively, which are reflected in investments
in available-for-sale securities in Liberty Ventures Group's
condensed attributed balance sheet.
|
|
|
|
(3)
|
|
Includes $616 million and $596 million of cash and liquid
investments held at TripAdvisor as of June 30, 2013 and September
30, 2013, respectively.
|
|
|
|
(4)
|
|
Face amount of Senior Notes and Debentures with no reduction for the
unamortized discount.
|
|
|
|
(5)
|
|
Face amount of Senior Exchangeable Debentures with no reduction for
the fair market value adjustment.
|
|
|
|
|
|
|
Total cash and liquid investments attributed to the Liberty Interactive
Group decreased by approximately $136 million during the third quarter.
Cash flows from operations were offset by capital expenditures and stock
repurchases. Total debt attributed to the Liberty Interactive Group
increased by $98 million, primarily due to the issuance of new senior
exchangeable debentures during the quarter, partially offset by payments
made on the QVC bank credit facility.
Total cash and liquid investments attributed to the Liberty Ventures
Group decreased $339 million, primarily due to investments in cost and
equity investees, debt repayments during the quarter and shares
repurchased by subsidiary. These cash outflows were partially offset by
cash flows from operations. Included in the third quarter total cash and
liquid investments attributed to the Liberty Ventures Group is $596
million held at TripAdvisor, which is comprised of $276 million of cash,
$156 million of short-term marketable securities and $164 million of
long-term marketable securities. Although TripAdvisor is a consolidated
subsidiary, they are a separate public company with a significant
noncontrolling interest, therefore Liberty does not have ready access to
those cash and liquid investments. Total debt outstanding attributed to
the Liberty Ventures Group decreased by $64 million from the second
quarter to the third quarter, primarily due to repayments made on senior
exchangeable debentures.
Important Notice: Liberty (Nasdaq: LINTA, LINTB, LVNTA, LVNTB)
President and CEO, Greg Maffei will discuss Liberty's earnings release
in a conference call which will begin at 4:00 p.m. (ET) on November 5,
2013. The call can be accessed by dialing (888) 437-9357 or (719)
325-2449 at least 10 minutes prior to the start time. Replays of the
conference call can be accessed until 6:00 p.m. (ET) on November 12,
2013, by dialing (888) 203-1112 or (719) 457-0820 plus the passcode
2267905. The call will also be broadcast live across the Internet and
archived on our website. To access the webcast go to http://www.libertyinteractive.com/events.
Links to this press release will also be available on Liberty's 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, the
proposed spin-off of our interest in TripAdvisor, the proposed
recapitalization of the Liberty Interactive Group tracking stock into
the QVC Group tracking stock and a new Liberty Digital Commerce tracking
stock, future financial prospects, international expansion, new service
and product offerings, the monetization of our non-core assets, the
continuation of our stock repurchase program, the estimated liabilities
under exchangeable debentures and the ability of invested cash flows to
meet obligations under the debentures and other matters that are not
historical facts. These forward-looking statements involve many
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by such statements,
including, without limitation, possible changes in market acceptance of
new products or services, competitive issues, regulatory matters
affecting our businesses, continued access to capital on terms
acceptable to Liberty Interactive, changes in law and government
regulations that may impact the derivative instruments that hedge
certain of our financial risks, our ability to satisfy the conditions to
the proposed recapitalization and spin-off and market conditions
conducive to stock repurchases. These forward-looking statements
speak only as of the date of this presentation, and Liberty Interactive
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 Interactive'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 Interactive, including the most recent Forms 10-K
and 10-Q, for additional information about Liberty Interactive and about
the risks and uncertainties related to Liberty Interactive's business
which may affect the statements made in this presentation.
SUPPLEMENTAL INFORMATION
As a supplement to Liberty's 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 September 30, 2013, 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)
|
|
|
3Q12
|
|
|
4Q12
|
|
|
1Q13
|
|
|
2Q13
|
|
|
3Q13
|
|
Liberty Interactive Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QVC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue - US
|
|
|
$
|
1,237
|
|
|
|
$
|
1,828
|
|
|
|
$
|
1,297
|
|
|
|
$
|
1,312
|
|
|
|
$
|
1,303
|
|
|
Revenue - International
|
|
|
681
|
|
|
|
864
|
|
|
|
677
|
|
|
|
649
|
|
|
|
644
|
|
|
Revenue - Total
|
|
|
$
|
1,918
|
|
|
|
$
|
2,692
|
|
|
|
$
|
1,974
|
|
|
|
$
|
1,961
|
|
|
|
$
|
1,947
|
|
|
Adjusted OIBDA - US
|
|
|
278
|
|
|
|
429
|
|
|
|
291
|
|
|
|
320
|
|
|
|
304
|
|
|
Adjusted OIBDA - International
|
|
|
119
|
|
|
|
174
|
|
|
|
113
|
|
|
|
114
|
|
|
|
104
|
|
|
Adjusted OIBDA - Total
|
|
|
$
|
397
|
|
|
|
$
|
603
|
|
|
|
$
|
404
|
|
|
|
$
|
434
|
|
|
|
$
|
408
|
|
|
Operating income - US
|
|
|
173
|
|
|
|
312
|
|
|
|
180
|
|
|
|
207
|
|
|
|
191
|
|
|
Operating income - International
|
|
|
87
|
|
|
|
137
|
|
|
|
80
|
|
|
|
78
|
|
|
|
68
|
|
|
Operating income - Total
|
|
|
$
|
260
|
|
|
|
$
|
449
|
|
|
|
$
|
260
|
|
|
|
$
|
285
|
|
|
|
$
|
259
|
|
|
Gross margin - US
|
|
|
36.1
|
%
|
|
|
34.7
|
%
|
|
|
36.1
|
%
|
|
|
37.3
|
%
|
|
|
37.1
|
%
|
|
Gross margin - International
|
|
|
37.4
|
%
|
|
|
37.1
|
%
|
|
|
37.5
|
%
|
|
|
37.8
|
%
|
|
|
37.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Liberty Interactive
Group's adjusted OIBDA to its operating income calculated in accordance
with GAAP for the three months ended September 30, 2012, December 31,
2012, March 31, 2013, June 30, 2013 and September 31, 2013, respectively.
|
QUARTERLY SUMMARY
|
|
|
|
(amounts in millions)
|
|
|
3Q12
|
|
|
4Q12
|
|
|
1Q13
|
|
|
2Q13
|
|
|
3Q13
|
|
Liberty Interactive Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBDA
|
|
|
$
|
397
|
|
|
|
$
|
626
|
|
|
|
$
|
437
|
|
|
|
$
|
455
|
|
|
|
396
|
|
|
Depreciation and amortization
|
|
|
(147
|
)
|
|
|
(159
|
)
|
|
|
(153
|
)
|
|
|
(158
|
)
|
|
|
(156
|
)
|
|
Stock compensation expense
|
|
|
(18
|
)
|
|
|
(32
|
)
|
|
|
(24
|
)
|
|
|
(29
|
)
|
|
|
(22
|
)
|
|
Impairment of intangible assets
|
|
|
(39
|
)
|
|
|
(53
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(19
|
)
|
|
Operating Income
|
|
|
$
|
193
|
|
|
|
$
|
382
|
|
|
|
$
|
260
|
|
|
|
$
|
268
|
|
|
|
$
|
199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30, 2012,
December 31, 2012, March 31, 2013, June 30, 2013 and September 31, 2013,
respectively.
|
QUARTERLY SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in millions)
|
|
|
3Q12
|
|
|
4Q12
|
|
|
1Q13
|
|
|
2Q13
|
|
|
3Q13
|
|
Liberty Interactive Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QVC Adjusted OIBDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QVC US
|
|
|
$
|
278
|
|
|
|
$
|
429
|
|
|
|
$
|
291
|
|
|
|
$
|
320
|
|
|
|
$
|
304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QVC Japan
|
|
|
67
|
|
|
|
79
|
|
|
|
54
|
|
|
|
57
|
|
|
|
46
|
|
|
QVC Germany
|
|
|
36
|
|
|
|
58
|
|
|
|
43
|
|
|
|
35
|
|
|
|
37
|
|
|
QVC UK
|
|
|
21
|
|
|
|
42
|
|
|
|
19
|
|
|
|
26
|
|
|
|
26
|
|
|
QVC Italy
|
|
|
(5
|
)
|
|
|
(5
|
)
|
|
|
(3
|
)
|
|
|
(4
|
)
|
|
|
(5
|
)
|
|
QVC International adjusted OIBDA
|
|
|
$
|
119
|
|
|
|
$
|
174
|
|
|
|
$
|
113
|
|
|
|
$
|
114
|
|
|
|
$
|
104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated QVC adjusted OIBDA
|
|
|
397
|
|
|
|
603
|
|
|
|
404
|
|
|
|
434
|
|
|
|
408
|
|
|
Depreciation and amortization
|
|
|
(129
|
)
|
|
|
(141
|
)
|
|
|
(134
|
)
|
|
|
(140
|
)
|
|
|
(139
|
)
|
|
Stock compensation
|
|
|
(8
|
)
|
|
|
(13
|
)
|
|
|
(10
|
)
|
|
|
(9
|
)
|
|
|
(10
|
)
|
|
Operating Income
|
|
|
$
|
260
|
|
|
|
$
|
449
|
|
|
|
$
|
260
|
|
|
|
$
|
285
|
|
|
|
$
|
259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
eCommerce Businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OIBDA
|
|
|
4
|
|
|
|
35
|
|
|
|
39
|
|
|
|
26
|
|
|
|
(5
|
)
|
|
Depreciation and amortization
|
|
|
(18
|
)
|
|
|
(19
|
)
|
|
|
(18
|
)
|
|
|
(18
|
)
|
|
|
(19
|
)
|
|
Stock compensation
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
(10
|
)
|
|
|
(3
|
)
|
|
Impairment of intangible assets
|
|
|
(39
|
)
|
|
|
(53
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(19
|
)
|
|
Operating Income (Loss)
|
|
|
$
|
(56
|
)
|
|
|
$
|
(39
|
)
|
|
|
$
|
19
|
|
|
|
$
|
(2
|
)
|
|
|
$
|
(46
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBERTY INTERACTIVE CORPORATION
|
|
BALANCE SHEET INFORMATION
|
|
September 30, 2013 - (unaudited)
|
|
|
|
|
|
|
Attributed
|
|
|
|
|
|
|
|
|
|
|
Interactive
Group
|
|
|
Ventures
Group
|
|
|
Inter-group
Eliminations
|
|
|
Consolidated
Liberty
|
|
|
|
|
amounts in millions
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
455
|
|
|
|
526
|
|
|
|
—
|
|
|
|
981
|
|
Trade and other receivables, net
|
|
|
764
|
|
|
|
190
|
|
|
|
—
|
|
|
|
954
|
|
Inventory, net
|
|
|
1,328
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,328
|
|
Short-term marketable securities
|
|
|
—
|
|
|
|
552
|
|
|
|
—
|
|
|
|
552
|
|
Other current assets
|
|
|
288
|
|
|
|
19
|
|
|
|
(155
|
)
|
|
|
152
|
|
Total current assets
|
|
|
2,835
|
|
|
|
1,287
|
|
|
|
(155
|
)
|
|
|
3,967
|
|
Investments in available-for-sale securities and other cost
investments
|
|
|
4
|
|
|
|
1,339
|
|
|
|
—
|
|
|
|
1,343
|
|
Investments in affiliates, accounted for using the equity method
|
|
|
335
|
|
|
|
890
|
|
|
|
—
|
|
|
|
1,225
|
|
Property and equipment, net
|
|
|
1,181
|
|
|
|
25
|
|
|
|
—
|
|
|
|
1,206
|
|
Intangible assets not subject to amortization
|
|
|
8,388
|
|
|
|
5,515
|
|
|
|
—
|
|
|
|
13,903
|
|
Intangible assets subject to amortization, net
|
|
|
1,656
|
|
|
|
968
|
|
|
|
—
|
|
|
|
2,624
|
|
Other assets, at cost, net of accumulated amortization
|
|
|
85
|
|
|
|
17
|
|
|
|
—
|
|
|
|
102
|
|
Total assets
|
|
|
$
|
14,484
|
|
|
|
10,041
|
|
|
|
(155
|
)
|
|
|
24,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intergroup Payable (receivable)
|
|
|
$
|
78
|
|
|
|
(78
|
)
|
|
|
—
|
|
|
|
—
|
|
Accounts payable
|
|
|
641
|
|
|
|
41
|
|
|
|
—
|
|
|
|
682
|
|
Accrued liabilities
|
|
|
681
|
|
|
|
113
|
|
|
|
—
|
|
|
|
794
|
|
Current portion of debt
|
|
|
439
|
|
|
|
927
|
|
|
|
—
|
|
|
|
1,366
|
|
Current deferred tax liabilities
|
|
|
—
|
|
|
|
1,097
|
|
|
|
(155
|
)
|
|
|
942
|
|
Other current liabilities
|
|
|
163
|
|
|
|
47
|
|
|
|
—
|
|
|
|
210
|
|
Total current liabilities
|
|
|
2,002
|
|
|
|
2,147
|
|
|
|
(155
|
)
|
|
|
3,994
|
|
Long-term debt
|
|
|
4,396
|
|
|
|
1,272
|
|
|
|
—
|
|
|
|
5,668
|
|
Deferred income tax liabilities
|
|
|
1,158
|
|
|
|
1,736
|
|
|
|
—
|
|
|
|
2,894
|
|
Other liabilities
|
|
|
212
|
|
|
|
43
|
|
|
|
—
|
|
|
|
255
|
|
Total liabilities
|
|
|
7,768
|
|
|
|
5,198
|
|
|
|
(155
|
)
|
|
|
12,811
|
|
Equity/Attributed net assets (liabilities)
|
|
|
6,575
|
|
|
|
478
|
|
|
|
—
|
|
|
|
7,053
|
|
Noncontrolling interests in equity of subsidiaries
|
|
|
141
|
|
|
|
4,365
|
|
|
|
—
|
|
|
|
4,506
|
|
Total liabilities and equity
|
|
|
$
|
14,484
|
|
|
|
10,041
|
|
|
|
(155
|
)
|
|
|
24,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBERTY INTERACTIVE CORPORATION
|
|
STATEMENT OF OPERATIONS INFORMATION
|
|
Three months ended September 30, 2013 - (unaudited)
|
|
|
|
|
|
|
Attributed
|
|
|
|
|
|
|
|
Interactive
Group
|
|
|
Ventures
Group
|
|
|
Consolidated
Liberty
|
|
|
|
|
amounts in millions
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Net retail sales
|
|
|
$
|
2,245
|
|
|
|
—
|
|
|
|
2,245
|
|
|
Other revenue
|
|
|
—
|
|
|
|
255
|
|
|
|
255
|
|
|
Total revenue
|
|
|
2,245
|
|
|
|
255
|
|
|
|
2,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
1,437
|
|
|
|
—
|
|
|
|
1,437
|
|
|
Operating, including stock-based compensation
|
|
|
206
|
|
|
|
40
|
|
|
|
246
|
|
|
Selling, general and administrative, including stock-based
compensation
|
|
|
228
|
|
|
|
130
|
|
|
|
358
|
|
|
Impairment of intangible assets
|
|
|
19
|
|
|
|
—
|
|
|
|
19
|
|
|
Depreciation and amortization
|
|
|
156
|
|
|
|
79
|
|
|
|
235
|
|
|
|
|
|
2,046
|
|
|
|
249
|
|
|
|
2,295
|
|
|
Operating income
|
|
|
199
|
|
|
|
6
|
|
|
|
205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(70
|
)
|
|
|
(17
|
)
|
|
|
(87
|
)
|
|
Share of earnings (losses) of affiliates, net
|
|
|
13
|
|
|
|
16
|
|
|
|
29
|
|
|
Realized and unrealized gains (losses) on financial instruments, net
|
|
|
(18
|
)
|
|
|
33
|
|
|
|
15
|
|
|
Other, net
|
|
|
(1
|
)
|
|
|
4
|
|
|
|
3
|
|
|
|
|
|
(76
|
)
|
|
|
36
|
|
|
|
(40
|
)
|
|
Earnings (loss) before income taxes
|
|
|
123
|
|
|
|
42
|
|
|
|
165
|
|
|
Income tax benefit (expense)
|
|
|
(38
|
)
|
|
|
4
|
|
|
|
(34
|
)
|
|
Net earnings (loss)
|
|
|
85
|
|
|
|
46
|
|
|
|
131
|
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
|
|
8
|
|
|
|
10
|
|
|
|
18
|
|
|
Net earnings (loss) attributable to Liberty stockholders
|
|
|
$
|
77
|
|
|
|
36
|
|
|
|
113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LINT Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
Outstanding A and B shares as of October 31, 2013 (in millions)
|
|
|
508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LINTA and LINTB Basic and Diluted Shares
(in millions)
|
|
|
Quarter ended
9/30/2013
|
|
|
|
|
|
|
|
Basic Weighted Average Shares Outstanding (“WASO”)
|
|
|
513
|
|
|
|
|
|
|
|
|
Potentially dilutive shares
|
|
|
10
|
|
|
|
|
|
|
|
|
Diluted WASO
|
|
|
523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBERTY INTERACTIVE CORPORATION
|
|
STATEMENT OF OPERATIONS INFORMATION
|
|
Three months ended September 30, 2012 - (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributed
|
|
|
|
|
|
|
|
Interactive
Group
|
|
|
Ventures
Group
|
|
|
Consolidated
Liberty
|
|
|
|
|
amounts in millions
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Net retail sales
|
|
|
$
|
2,196
|
|
|
|
—
|
|
|
|
2,196
|
|
|
Other revenue
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total revenue
|
|
|
2,196
|
|
|
|
—
|
|
|
|
2,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
1,407
|
|
|
|
—
|
|
|
|
1,407
|
|
|
Operating, including stock-based compensation
|
|
|
201
|
|
|
|
—
|
|
|
|
201
|
|
|
Selling, general and administrative, including stock-based
compensation
|
|
|
209
|
|
|
|
4
|
|
|
|
213
|
|
|
Impairment of intangible assets
|
|
|
39
|
|
|
|
—
|
|
|
|
39
|
|
|
Depreciation and amortization
|
|
|
147
|
|
|
|
—
|
|
|
|
147
|
|
|
|
|
|
2,003
|
|
|
|
4
|
|
|
|
2,007
|
|
|
Operating income
|
|
|
193
|
|
|
|
(4
|
)
|
|
|
189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(84
|
)
|
|
|
(27
|
)
|
|
|
(111
|
)
|
|
Share of earnings (losses) of affiliates, net
|
|
|
6
|
|
|
|
37
|
|
|
|
43
|
|
|
Realized and unrealized gains (losses) on financial instruments, net
|
|
|
14
|
|
|
|
(174
|
)
|
|
|
(160
|
)
|
|
Other, net
|
|
|
—
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
|
|
(64
|
)
|
|
|
(166
|
)
|
|
|
(230
|
)
|
|
Earnings (loss) before income taxes
|
|
|
129
|
|
|
|
(170
|
)
|
|
|
(41
|
)
|
|
Income tax benefit (expense)
|
|
|
(65
|
)
|
|
|
80
|
|
|
|
15
|
|
|
Net earnings (loss)
|
|
|
64
|
|
|
|
(90
|
)
|
|
|
(26
|
)
|
|
Less net earnings (loss) attributable to noncontrolling interests
|
|
|
15
|
|
|
|
—
|
|
|
|
15
|
|
|
Net earnings (loss) attributable to Liberty stockholders
|
|
|
$
|
49
|
|
|
|
(90
|
)
|
|
|
(41
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
LINT Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
Outstanding A and B shares as of October 31, 2012 (in millions)
|
|
|
544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LINTA and LINTB Basic and Diluted Shares
(in millions)
|
|
|
Quarter ended
9/30/2012
|
|
|
|
|
|
|
|
Basic Weighted Average Shares Outstanding (“WASO”)
|
|
|
542
|
|
|
|
|
|
|
|
|
Potentially dilutive shares
|
|
|
10
|
|
|
|
|
|
|
|
|
Diluted WASO
|
|
|
552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBERTY INTERACTIVE CORPORATION
|
|
STATEMENT OF CASH FLOWS INFORMATION
|
|
Nine months ended September 30, 2013 - (unaudited)
|
|
|
|
|
|
|
Attributed
|
|
|
|
|
|
|
|
Interactive
Group
|
|
|
Ventures
Group
|
|
|
Consolidated
Liberty
|
|
|
|
|
amounts in millions
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
|
$
|
314
|
|
|
|
20
|
|
|
|
334
|
|
|
Adjustments to reconcile net earnings to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
467
|
|
|
|
235
|
|
|
|
702
|
|
|
Stock-based compensation
|
|
|
75
|
|
|
|
49
|
|
|
|
124
|
|
|
Cash payments for stock based compensation
|
|
|
(6
|
)
|
|
|
(2
|
)
|
|
|
(8
|
)
|
|
Share of (earnings) losses of affiliates, net
|
|
|
(33
|
)
|
|
|
8
|
|
|
|
(25
|
)
|
|
Cash receipts from return on equity investments
|
|
|
11
|
|
|
|
14
|
|
|
|
25
|
|
|
Realized and unrealized gains (losses) on financial instruments, net
|
|
|
1
|
|
|
|
48
|
|
|
|
49
|
|
|
Gains (losses) on disposition of assets, net
|
|
|
1
|
|
|
|
1
|
|
|
|
2
|
|
|
Impairment of intangible assets
|
|
|
19
|
|
|
|
—
|
|
|
|
19
|
|
|
Deferred income tax (benefit) expense
|
|
|
(143
|
)
|
|
|
(128
|
)
|
|
|
(271
|
)
|
|
Other, net
|
|
|
67
|
|
|
|
5
|
|
|
|
72
|
|
|
Intergroup tax allocation
|
|
|
49
|
|
|
|
(49
|
)
|
|
|
—
|
|
|
Intergroup tax payments
|
|
|
30
|
|
|
|
(30
|
)
|
|
|
—
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
Current and other assets
|
|
|
98
|
|
|
|
(83
|
)
|
|
|
15
|
|
|
Payables and other current liabilities
|
|
|
(408
|
)
|
|
|
121
|
|
|
|
(287
|
)
|
|
Net cash provided (used) by operating activities
|
|
|
542
|
|
|
|
209
|
|
|
|
751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Cash proceeds from dispositions
|
|
|
—
|
|
|
|
1,136
|
|
|
|
1,136
|
|
|
Investments in and loans to cost and equity investees
|
|
|
(4
|
)
|
|
|
(367
|
)
|
|
|
(371
|
)
|
|
Capital expended for property and equipment
|
|
|
(178
|
)
|
|
|
(39
|
)
|
|
|
(217
|
)
|
|
Purchases of short term and other marketable securities
|
|
|
—
|
|
|
|
(1,388
|
)
|
|
|
(1,388
|
)
|
|
Sales of short term and other marketable securities
|
|
|
—
|
|
|
|
725
|
|
|
|
725
|
|
|
Other investing activities, net
|
|
|
(19
|
)
|
|
|
(34
|
)
|
|
|
(53
|
)
|
|
Net cash provided (used) by investing activities
|
|
|
(201
|
)
|
|
|
33
|
|
|
|
(168
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Borrowings of debt
|
|
|
2,867
|
|
|
|
851
|
|
|
|
3,718
|
|
|
Repayments of debt
|
|
|
(2,645
|
)
|
|
|
(2,407
|
)
|
|
|
(5,052
|
)
|
|
Intergroup receipts (payments), net
|
|
|
2
|
|
|
|
(2
|
)
|
|
|
—
|
|
|
Shares repurchased by subsidiary
|
|
|
—
|
|
|
|
(142
|
)
|
|
|
(142
|
)
|
|
Shares issued by subsidiary
|
|
|
—
|
|
|
|
24
|
|
|
|
24
|
|
|
Repurchases of Liberty common stock
|
|
|
(750
|
)
|
|
|
—
|
|
|
|
(750
|
)
|
|
Other financing activities, net
|
|
|
(38
|
)
|
|
|
(1
|
)
|
|
|
(39
|
)
|
|
Net cash provided (used) by financing activities
|
|
|
(564
|
)
|
|
|
(1,677
|
)
|
|
|
(2,241
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency rates on cash
|
|
|
(21
|
)
|
|
|
—
|
|
|
|
(21
|
)
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(244
|
)
|
|
|
(1,435
|
)
|
|
|
(1,679
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
699
|
|
|
|
1,961
|
|
|
|
2,660
|
|
|
Cash and cash equivalents at end period
|
|
|
$
|
455
|
|
|
|
526
|
|
|
|
981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIBERTY INTERACTIVE CORPORATION
|
|
STATEMENT OF CASH FLOWS INFORMATION
|
|
Nine months ended September 30, 2012 - (unaudited)
|
|
|
|
|
|
|
Attributed
|
|
|
|
|
|
|
|
Interactive
Group
|
|
|
Ventures
Group
|
|
|
Consolidated
Liberty
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
amounts in millions
|
|
Net earnings (loss)
|
|
|
$
|
336
|
|
|
|
(8
|
)
|
|
|
328
|
|
|
Adjustments to reconcile net earnings to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
437
|
|
|
|
—
|
|
|
|
437
|
|
|
Stock-based compensation
|
|
|
52
|
|
|
|
1
|
|
|
|
53
|
|
|
Cash payments for stock based compensation
|
|
|
(9
|
)
|
|
|
—
|
|
|
|
(9
|
)
|
|
Share of losses (earnings) of affiliates, net
|
|
|
(26
|
)
|
|
|
(63
|
)
|
|
|
(89
|
)
|
|
Cash receipts from return on equity investments
|
|
|
8
|
|
|
|
13
|
|
|
|
21
|
|
|
Realized and unrealized gains (losses) on financial instruments, net
|
|
|
(39
|
)
|
|
|
377
|
|
|
|
338
|
|
|
Gains (losses) on disposition of assets, net
|
|
|
—
|
|
|
|
(288
|
)
|
|
|
(288
|
)
|
|
Impairment of intangible assets
|
|
|
39
|
|
|
|
—
|
|
|
|
39
|
|
|
Deferred income tax (benefit) expense
|
|
|
(119
|
)
|
|
|
85
|
|
|
|
(34
|
)
|
|
Other, net
|
|
|
11
|
|
|
|
(33
|
)
|
|
|
(22
|
)
|
|
Intergroup tax allocation
|
|
|
156
|
|
|
|
(156
|
)
|
|
|
—
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
Current and other assets
|
|
|
162
|
|
|
|
—
|
|
|
|
162
|
|
|
Payables and other current liabilities
|
|
|
27
|
|
|
|
(19
|
)
|
|
|
8
|
|
|
Net cash provided (used) by operating activities
|
|
|
1,035
|
|
|
|
(91
|
)
|
|
|
944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Cash proceeds from dispositions
|
|
|
—
|
|
|
|
348
|
|
|
|
348
|
|
|
Investments in and loans to cost and equity investees
|
|
|
(60
|
)
|
|
|
(132
|
)
|
|
|
(192
|
)
|
|
Capital expended for property and equipment
|
|
|
(237
|
)
|
|
|
—
|
|
|
|
(237
|
)
|
|
Sales (purchases) of short term and other marketable securities
|
|
|
46
|
|
|
|
—
|
|
|
|
46
|
|
|
Other investing activities, net
|
|
|
(41
|
)
|
|
|
1
|
|
|
|
(40
|
)
|
|
Net cash provided (used) by investing activities
|
|
|
(292
|
)
|
|
|
217
|
|
|
|
(75
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Borrowings of debt
|
|
|
2,043
|
|
|
|
—
|
|
|
|
2,043
|
|
|
Repayments of debt
|
|
|
(1,123
|
)
|
|
|
(115
|
)
|
|
|
(1,238
|
)
|
|
Reattribution of cash between groups
|
|
|
(1,346
|
)
|
|
|
1,346
|
|
|
|
—
|
|
|
Intergroup receipts (payments), net
|
|
|
122
|
|
|
|
(122
|
)
|
|
|
—
|
|
|
Repurchases of Liberty common stock
|
|
|
(690
|
)
|
|
|
—
|
|
|
|
(690
|
)
|
|
Other financing activities, net
|
|
|
(30
|
)
|
|
|
—
|
|
|
|
(30
|
)
|
|
Net cash provided (used) by financing activities
|
|
|
(1,024
|
)
|
|
|
1,109
|
|
|
|
85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign currency rates on cash
|
|
|
(8
|
)
|
|
|
—
|
|
|
|
(8
|
)
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(289
|
)
|
|
|
1,235
|
|
|
|
946
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
847
|
|
|
|
—
|
|
|
|
847
|
|
|
Cash and cash equivalents at end period
|
|
|
$
|
558
|
|
|
|
1,235
|
|
|
|
1,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copyright Business Wire 2013