On Command Reports Results for the Third Quarter of 2003

On Command Reports Results for the Third Quarter of 2003
- On Command's third quarter conference call will take place at 4:00 pm ET on
November 19, 2003. To participate, please dial [phone] in the U.S. or
[phone] internationally at least ten minutes prior to the call. The
conference ID is 4046585.


DENVER, Colo., Nov. 19  /PRNewswire-FirstCall/ -- On Command Corporation 
(BULLETIN BOARD: ONCO) , a leading provider of in-room interactive services,
business information and guest services for the lodging industry, today
announced its financial results for the quarter and nine months ended September
30, 2003.

Total net revenue for the third quarter of 2003 was $61.0 million compared to
$60.8 million in the third quarter of 2002.  Room revenue increased by 2.5% to
$59.5 million in the third quarter of 2003 compared to $58.0 million in the
third quarter of 2002.

Adjusted EBITDA (defined by On Command as revenue less direct costs of revenue
and other cash operating expenses, excluding depreciation and amortization and
asset impairments and other charges) for the third quarter of 2003 was $15.5
million, a decrease of $2 million compared to Adjusted EBITDA in the third
quarter of 2002 of $17.5 million.  For the nine months ended September 30, 2003,
Adjusted EBITDA was $45.3 million compared to $49.6 million in the comparable
period in 2002.   (Please see schedule 1 attached for a reconciliation of 2003
and 2002 Adjusted EBITDA to loss from operations.)

Loss from operations for the third quarter ended September 30, 2003 was $4.3
million compared to $2.5 million for the corresponding period of 2002.

The Company reported a net loss attributed to common stockholders of $11.1
million ($0.36 per share) for the quarter, compared to a $8.3 million ($0.27 per
share) net loss for the corresponding period in 2002.

Revenue per room for the third quarter was $23.49 compared to $22.86 for the
same period in 2002, the increase due primarily to an increase in revenue
generated from short subjects, digital music and television-based Internet
products.

   Highlights for the third quarter include:

   -- installed the digital platform in 10,000 rooms, bringing the total
      number of digital rooms to 343,000 or 39.0% of the total owned room
      base of 879,000;

   -- installed the digital music product in more than 43,600 rooms and the
      TV Internet service to more than 6,600 rooms, bringing total digital
      music rooms to 293,000 and TV Internet capability to 285,000 rooms;

   -- reduced capital spending for the nine months ended September 30, 2003
      to $35.4 million, compared to $41.4 million in the first nine months
      of 2002.

  About On Command


On Command Corporation ( http://www.oncommand.com/ ) is a leading provider of
in-room entertainment technology to the lodging and cruise ship industries. On
Command is a majority-owned subsidiary of Liberty Satellite & Technology, Inc.

On Command entertainment services include:  on-demand movies; television
Internet services using high-speed broadband connectivity; television email;
short form television features covering drama, comedy, news and sports;
PlayStation video games; and music-on-demand services through Instant Media
Network, a majority-owned subsidiary of On Command Corporation and the leading
provider of digital on-demand music services to the hotel industry.  All On
Command products are connected to guest rooms and managed by leading edge
video-on-demand navigational controls and a state-of-the art guest user
interface system.  The guest menu system can be customized by hotel properties
to create a robust platform that services the needs of On Command hotel partners
and the traveling public.  On Command and its distribution network services more
than 1,000,000 guest rooms, which touch more than 300 million guests annually.

On Command's direct served hotel properties are located in the United States,
Canada, Mexico, and Spain.  On Command distributors serve cruise ships operating
under the Royal Caribbean, Costa and Carnival flags.  On Command hotel
properties include more than 100 of the most prestigious hotel chains and
operators in the lodging industry:  Accor, Adam's Mark Hotels & Resorts,
Fairmont, Four Seasons, Hilton Hotels Corporation, Hyatt, Loews, Marriott
(Courtyard, Renaissance, Fairfield Inn and Residence Inn), Radisson, Ramada, Six
Continents Hotels (Inter-Continental, Crowne Plaza and Holiday Inn), Starwood
Hotels & Resorts (Westin, Sheraton, W Hotels and Four Points), and Wyndham
Hotels & Resorts.

                            ON COMMAND CORPORATION
      (An Indirect Consolidated Subsidiary of Liberty Media Corporation)
                    Condensed Consolidated Balance Sheets
                                 (unaudited)

                                          September 30,       December 31,
                                             2003                2002
                                              (amounts in thousands)
  Assets
  Current assets:
    Cash and cash equivalents               $1,642              $4,501
    Accounts receivable, net                29,675              33,525
    Other current assets                     3,305               3,461
         Total current assets               34,622              41,487

  Property and equipment:
    Video systems
      In service                           680,719             668,697
      Construction in progress              28,924              37,511
                                           709,643             706,208
    Support equipment, vehicles and
     leasehold improvements                 26,774              26,245
                                           736,417             732,453
    Accumulated depreciation              (483,159)           (457,482)
                                           253,258             274,971
  Goodwill                                  65,642              65,580

  Other assets, net                         14,798              14,444

         Total assets                     $368,320            $396,482



                            ON COMMAND CORPORATION
      (An Indirect Consolidated Subsidiary of Liberty Media Corporation)
                    Condensed Consolidated Balance Sheets
                                 (unaudited)

                                         September 30,       December 31,
                                             2003                2002
                                              (amounts in thousands)
  Liabilities and Stockholders' Deficit
  Current liabilities:
    Accounts payable                       $18,807             $28,689
    Accounts payable to parent               1,724               1,906
    Accrued compensation                     5,523               6,433
    Sales, use and property tax
     liabilities                             5,125               4,585
    Other accrued liabilities                8,142               7,987
    Common stock subject to repurchase
     obligation                              1,876               2,333
    Current portion of debt                  9,704                 833
      Total current liabilities             50,901              52,766

  Long-term debt:
    Third party                            218,890             261,946
    Due to parent                           40,000                  --
                                           258,890             261,946

  Other long-term liabilities                   --                 496

         Total liabilities                 309,791             315,208

  Minority interest in consolidated
   subsidiary                                   --                 259

  Mandatorily redeemable preferred stock   104,612              97,848

  Stockholders' deficit:
  Preferred stock, $.01 par value; shares
   authorized - 10,000,000; shares issued
   and outstanding - 98,500 at
   September 30, 2003 and December 31, 2002     --                  --
  Common stock, $.01 par value;
   shares authorized - 150,000,000;
   shares issued - 30,977,840 at
   September 30, 2003 and 30,973,989
   at December 31, 2002                        310                 310
  Additional paid-in-capital               294,500             299,398
  Accumulated other comprehensive loss      (1,704)             (4,533)
  Accumulated deficit                     (311,092)           (285,777)
                                           (17,986)              9,398
  Common stock held in treasury, at
   cost (155,500 at September 30, 2003
   and 119,500 at December 31, 2002)        (1,884)             (1,344)

  Note receivable from stockholder         (26,213)            (24,887)
         Total stockholders' deficit       (46,083)            (16,833)

  Commitments and contingencies

         Total liabilities and
          stockholders' deficit           $368,320            $396,482



                            ON COMMAND CORPORATION
      (An Indirect Consolidated Subsidiary of Liberty Media Corporation)
               Condensed Consolidated Statements of Operations
                                 (unaudited)


                                Three Months Ended     Nine Months Ended
                                   September 30,         September 30,
                                  2003       2002       2003      2002
                           (amounts in thousands, except per share amounts)
  Net Revenue:
    Net room revenue            $59,462    $58,009    $171,687   $171,393
    System and equipment sales
     and other                    1,504      2,781       5,551      7,779
                                 60,966     60,790     177,238    179,172

  Direct costs of net revenue:
    Content fees, commissions
     and other in-room services  31,358     28,901      90,310     85,874
    System, equipment and other
     costs                          812      1,333       2,797      3,964
      Total costs of net
       revenue                   32,170     30,234      93,107     89,838

      Direct margin (exclusive
       of other operating
       expenses shown
       separately below)         28,796     30,556      84,131     89,334

  Other operating expenses:
    Operations support            5,729      6,073      17,473     19,714
    Research and development      1,071      1,143       3,071      3,178
    Selling, general and
     administrative               6,487      5,847      18,319     16,816
    Depreciation and
     amortization                18,297     19,276      56,724     59,277
    Asset impairments and other
     charges                      1,502        751       2,758      8,401
      Total other operating
       expenses                  33,086     33,090      98,345    107,386

      Loss from operations       (4,290)    (2,534)    (14,214)   (18,052)

  Interest expense               (4,518)    (3,535)    (11,182)   (10,569)
  Other income (expense), net       (68)       (69)        251        653

      Loss before income taxes   (8,876)    (6,138)    (25,145)   (27,968)

  Income tax benefit (expense)      (39)        14        (170)      (366)

      Net loss                   (8,915)    (6,124)    (25,315)   (28,334)

  Dividends on mandatorily
   redeemable preferred stock    (2,158)    (2,200)     (6,764)    (6,384)

      Net loss attributable
       to common stockholders  $(11,073)   $(8,324)   $(32,079)  $(34,718)

  Basic and diluted net loss
   per common share              $(0.36)    $(0.27)     $(1.04)    $(1.12)

  Basic and diluted weighted
   average number of
   common shares outstanding     30,853     30,925      30,856     30,908



                            ON COMMAND CORPORATION
      (An Indirect Consolidated Subsidiary of Liberty Media Corporation)
               Condensed Consolidated Statements of Cash Flows
                                 (unaudited)

                                                     Nine Months Ended
                                                        September 30,
                                                     2003          2002
                                                   (amounts in thousands)

  Cash flows from operating activities:
    Net loss                                      $(25,315)      $(28,334)
    Adjustments to reconcile net loss
     to net cash provided by operating
     activities:
        Depreciation and amortization               56,724         59,277
        Payments of restructuring costs             (1,060)          (829)
        Asset impairments and other changes          2,758          8,401
        Other non-cash items                         1,790          1,080
     Changes in assets and liabilities:
        Accounts receivable                          4,276          1,739
        Other assets                                   695           (701)
        Accounts payable                           (10,295)         3,062
        Accrued liabilities                           (558)         3,755

          Net cash provided by operating
           activities                               29,015         47,450

  Cash flows from investing activities:
    Capital expenditures                           (35,396)       (41,444)
    Acquisition of minority interest                  (300)            --
    Cash proceeds from dispositions,
     net of cash transferred                            --          1,135
    Cost investments                                    --         (2,599)

          Net cash used in investing
           activities                              (35,696)       (42,908)

  Cash flows from financing activities:
    Borrowings of debt                              49,000          7,000
    Repayments of debt                             (43,185)       (12,666)
    Payment of deferred financing costs             (2,160)            --
    Proceeds from issuance of common
     and preferred stock                                --             85

          Net cash provided (used) by
           financing activities                      3,655         (5,581)

  Effect of exchange rate changes on cash              167            (17)

  Net increase (decrease) in cash and
   cash equivalents                                 (2,859)        (1,056)

  Cash and cash equivalents, beginning of period     4,501          2,869

  Cash and cash equivalents, end of period          $1,642         $1,813



                                  Schedule 1
          Reconciliation of Adjusted EBITDA to Loss From Operations:

                    Three Months Ended             Nine Months Ended
                      September 30,                 September 30,
                   2003          2002           2003            2002
           (in thousands) (in thousands)  (in thousands)  (in thousands)

  Adjusted
   EBITDA (1)    15,509         17,493         45,268           49,626
  Depreciation
   and
   amortization (18,297)       (19,276)       (56,724)         (59,277)
  Asset
   impairments
   and other
   charges       (1,502)          (751)        (2,758)          (8,401)

  Loss from
   Operations   $(4,290)       $(2,534)      $(14,214)        $(18,052)


  (1) Adjusted EBITDA is defined by the Company as revenue less direct costs
      of revenue and other cash operating expenses, excluding depreciation
      and amortization and asset impairments and other charges.

  A Note on Adjusted EBITDA

  The most significant difference between "Adjusted EBITDA," as defined by
  the Company, and loss from operations, as determined in accordance with
  generally accepted accounting principles, is that depreciation and
  amortization expense are not included in the calculation of Adjusted
  EBITDA.  "GAAP" requires depreciation and amortization to be shown as an
  expense in calculating loss from operations because capital spending is
  not fully expensed in the period incurred.  Rather, the cost of a capital
  expenditure is spread out over the assumed useful life of the property
  acquired, under the heading depreciation and amortization, so that the
  expense can be matched to the revenue anticipated to be generated by that
  expense.  Thus, excluding depreciation and amortization from a measurement
  of operating performance will fail to reflect the true cost of operations
  over time.  Similarly, asset impairment charges reflect non-temporary
  declines in the value of investments, the original cost of which was not
  expensed in the period incurred.

  However, because depreciation, amortization and impairments and other
  charges reflect primarily the effects of past capital expenditures, On
  Command's management believes that Adjusted EBITDA when considered
  together with measures prepared in accordance with generally accepted
  accounting principles can be very useful to investors and analysts as a
  measurement of the Company's current operating performance, particularly
  when assessed in conjunction with information regarding current capital
  spending and other investing activities and trends, as reported above.  On
  Command's management regularly uses Adjusted EBITDA as a measurement to
  assess the performance of operating units and individuals and to assist in
  strategic planning and the allocation of resources.

  Because Adjusted EBITDA does not reflect changes in working capital or
  other cash requirements of the Company, it is not intended to represent
  cash flows for the period, or to reflect funds available for interest,
  dividends, reinvestment or other discretionary uses.  Adjusted EBITDA has
  not been presented as an alternative to loss from operations, and should
  not be considered in isolation or as a substitute for measures of
  performance prepared in accordance with generally accepted accounting
  principles in the United States of America.  The Company's definition of
  Adjusted EBITDA may differ from similar measurements provided by other
  public companies.



                         Q3 2003   Q2 2003   Q1 2003   Q4 2002   Q3 2002
  Room Base Statistics

  Total Hotels             3,352     3,364     3,356     3,380     3,383
  Total Guest Pay Rooms  879,000   885,000   884,000   891,000   900,000

  On-demand Rooms        867,000   873,000   869,000   874,000   880,000
    % of total rooms       98.6%     98.6%     98.3%     98.1%     97.8%
  Scheduled Rooms
   (all SpectraVision)    12,000    12,000    15,000    17,000    20,000
    % of total rooms        1.4%      1.4%      1.7%      1.9%      2.2%

  Domestic Rooms         779,000   786,000   785,000   792,000   801,000
    % of total rooms       88.6%     88.8%     88.8%     88.9%     89.0%
  International Rooms    100,000    99,000    99,000    99,000    99,000
    % of total rooms       11.4%     11.2%     11.2%     11.1%     11.0%

  Total Digital Rooms    343,000   333,000   312,000   291,000   275,000

  Total Guest
   Programming Rooms     508,000   515,000   519,000   517,000   519,000

  Operating Results
   & Statistics
   (in thousands)

  Net Room Revenue       $59,462   $57,471   $54,754   $55,228  $58,009
  Other Revenue           $1,504    $2,081    $1,966    $3,997   $2,781
  Total Revenue          $60,966   $59,552   $56,720   $59,225  $60,790
  Direct Costs of
   Revenue               $32,170   $32,689   $28,248   $31,222  $30,234
  Direct Margin          $28,796   $26,863   $28,472   $28,003  $30,556
  Operations Support
   Expense                $5,729    $5,682    $6,062    $6,370   $6,073
  Research &
   Development Expense    $1,071      $917    $1,083      $886   $1,143
  SG&A Expense            $6,487    $6,256    $5,576    $4,736   $5,847
  Total Operating
   Expenses              $13,287   $12,855   $12,721   $11,992  $13,063
  Adjusted EBITDA        $15,509   $14,008   $15,751   $16,011  $17,493
  Loss from Operations   $(4,290)  $(6,387)  $(3,537)  $(4,612) $(2,534)


  As a % of Total Revenue:
    Direct Margin          47.2%     45.1%     50.2%     47.3%     50.3%
    Operations              9.4%      9.5%     10.7%     10.8%     10.0%
    Research & Development  1.8%      1.5%      1.9%      1.5%      1.9%
    SG&A                   10.6%     10.5%      9.8%      8.0%      9.2%
    Adjusted EBITDA        25.4%     23.5%     27.8%     27.0%     29.2%
    Loss from Operations   -7.0%    -10.7%     -6.2%     -7.8%     -3.8%

  Per Room per Month:
    Total Room Revenue    $23.49    $22.77    $21.89    $21.97   $22.86
    Total Movie Revenue   $19.19    $18.75    $18.18    $18.38   $19.21
    Direct Profit         $10.87    $10.12    $10.70    $10.44   $11.26
    Operations Expense     $2.16     $2.14    $ 2.28    $ 2.38   $ 2.24
    Adjusted EBITDA        $5.86     $5.28    $ 5.92    $ 5.97   $ 6.54
    Loss from Operations  $(1.62)   $(2.41)   $(1.33)   $(1.72)  $(0.85)


DATASOURCE: On Command Corporation



CONTACT:  Tad Walden, Corporate Communications, [phone],

, or Bernard G. Dvorak, SVP and CFO, [phone],

, both of On Command Corporation



Web site:  http://www.oncommand.com/ 

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