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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Liberty Broadband Corporation | NASDAQ:LBRDK | NASDAQ | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.94 | -1.10% | 84.38 | 83.92 | 86.67 | 86.20 | 84.24 | 86.00 | 1,194,455 | 01:00:00 |
From Nov 2023 to Nov 2024
Liberty Broadband Corporation (“Liberty Broadband”) (Nasdaq: LBRDA, LBRDK, LBRDP) today reported first quarter 2024 results.
Headlines include(1):
Share Repurchases
From February 1, 2024 through April 30, 2024, Liberty Broadband repurchased 103 thousand shares of Series C Liberty Broadband common stock (Nasdaq: LBRDK) at an average cost per share of $79.88 for total cash consideration of $8.2 million. The total remaining repurchase authorization for Liberty Broadband as of April 30, 2024 is approximately $1.7 billion.
Charter Ownership
Under the terms of Liberty Broadband and Charter’s stockholder agreement, Liberty Broadband has sold and will continue to sell to Charter a number of shares of Charter Class A common stock as is necessary to maintain Liberty Broadband’s percentage equity interest at 26%(2) on a fully diluted basis. Such sales are executed by Liberty Broadband monthly based on Charter’s repurchase activity in the month prior.
From February 1, 2024 through April 30, 2024, Liberty Broadband did not sell Charter shares to Charter as its fully diluted equity interest in Charter remained below 26%(2).
Balance Sheet
The following presentation is provided to separately identify cash and liquid investments, debt and public holdings of Liberty Broadband as of December 31, 2023 and March 31, 2024.
(amounts in millions)
12/31/2023
3/31/2024
Cash and Cash Equivalents:
GCI Holdings
$
79
$
70
Corporate and Other
79
38
Total Liberty Broadband Consolidated Cash
$
158
$
108
Fair Value of Public Holdings in Charter(a)
$
17,984
$
13,385
Debt:
Senior Notes(b)
$
600
$
600
Senior Credit Facility
394
334
Tower Obligations and Other(c)
91
90
Total GCI Holdings Debt
$
1,085
$
1,024
GCI Leverage(d)
2.9x
2.8x
Charter Margin Loan
$
1,460
$
1,480
3.125% Exchangeable Senior Debentures due 2053(e)
1,265
1,265
Total Corporate Level Debt
$
2,725
$
2,745
Total Liberty Broadband Debt
$
3,810
$
3,769
Fair market value adjustment and deferred loan costs
12
(45
)
Tower obligations and finance leases (excluded from GAAP Debt)
(86
)
(85
)
Total Liberty Broadband Debt (GAAP)
$
3,736
$
3,639
Other Financial Obligations:
Preferred Stock(f)
180
180
_________________________
a)
Represents fair value of the investment in Charter as of December 31, 2023 and March 31, 2024.
b)
Principal amount of Senior Notes.
c)
Includes the Wells Fargo Note Payable and current and long-term obligations under tower obligations and finance leases.
d)
As defined in GCI's credit agreement.
e)
Principal amount of Exchangeable Senior Debentures exclusive of fair market value adjustments.
f)
Liquidation value of preferred stock. Preferred stock has a 7% coupon, $25 per share liquidation preference plus accrued and unpaid dividends and 1/3 vote per share. The redemption date is the first business day following March 8, 2039. The preferred stock is considered a liability for GAAP purposes.
Liberty Broadband cash decreased $50 million in the first quarter primarily due to proceeds from Charter share sales and borrowing under the Charter margin loan being more than offset by share repurchases and other investing activities. GCI cash decreased $9 million in the first quarter as cash from operations was more than offset by debt repayment and capital expenditures (net of grant proceeds) during the period.
Liberty Broadband debt decreased $41 million in the first quarter as GCI repaid $60 million under its senior credit facility, partially offset by additional borrowing under the Charter margin loan. There is $820 million of available capacity under the Charter margin loan. GCI’s credit facility has undrawn capacity of $457 million (net of letters of credit), and GCI’s leverage as defined in its credit agreement is 2.8x.
GCI Operating and Financial Results
1Q23
1Q24
% Change
(amounts in millions, except operating metrics)
GCI Consolidated Financial Metrics
Revenue
Consumer
$
118
$
117
(1)
%
Business
128
128
—
%
Total revenue
$
246
$
245
—
%
Operating income
$
29
$
37
28
%
Operating income margin (%)
11.8%
15.1%
330
bps
Adjusted OIBDA(a)
$
90
$
90
—
%
Adjusted OIBDA margin(a) (%)
36.6%
36.7%
10
bps
GCI Consumer
Financial Metrics
Revenue
Data
$
59
$
60
2
%
Wireless
47
47
—
%
Other
12
10
(17)
%
Total revenue
$
118
$
117
(1)
%
Operating Metrics
Data:
Cable modem subscribers(b)
159,100
159,800
—
%
Wireless:
Lines in service(c)
193,700
199,000
3
%
GCI Business
Financial Metrics
Revenue
Data
$
106
$
108
2
%
Wireless
13
12
(8)
%
Other
9
8
(11)
%
Total revenue
$
128
$
128
—
%
__________________________a)
See reconciling schedule 1.
b)
A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. Data cable modem subscribers as of March 31, 2024, include 900 subscribers that were reclassified from GCI Business to GCI Consumer subscribers in the first quarter of 2024 and are not new additions.
c)
A wireless line in service is defined as a wireless device with a monthly fee for services. Wireless lines in service as of March 31, 2024, include 1,800 lines that were reclassified from GCI Business to GCI Consumer lines in the first quarter of 2024 and are not new additions.
Unless otherwise noted, the following discussion compares financial information for the three months ended March 31, 2024 to the same period in 2023.
GCI revenue was flat in the first quarter. Consumer revenue was down 1% driven by declines in video revenue, partially offset by demand for consumer data. Business revenue was flat as growth in data was offset by declines in wireless and other revenues.
Operating income increased by $8 million in the first quarter driven by lower depreciation expense as certain assets became fully depreciated during 2023. Adjusted OIBDA was flat in line with revenue.
In the first quarter, GCI spent $46 million, net, on capital expenditures. Capital expenditure spending was related primarily to improvements to the wireless and data networks in rural Alaska. GCI's net capital expenditures for the full year 2024 are expected to be approximately $200 million related to additional high-returning investments in middle and last mile connectivity, with continued network expansion in GCI’s most important markets in rural Alaska including the Bethel and AU-Aleutians fiber projects.
FOOTNOTES
1)
Liberty Broadband will discuss these highlights and other matters on Liberty Broadband's earnings conference call that will begin at 11:15 a.m. (E.T.) on May 8, 2024. For information regarding how to access the call, please see “Important Notice” later in this document.
2)
Calculated pursuant to the stockholder agreement between Liberty Broadband and Charter Communications, Inc. ("Charter").
3)
Liberty Broadband’s principal operating asset is GCI Holdings, LLC (“GCI” or “GCI Holdings”), Alaska's largest communications provider. Liberty Broadband also holds an interest in Charter.
4)
For a definition of Adjusted OIBDA and Adjusted OIBDA margin and applicable reconciliations, see the accompanying schedules.
NOTES
LIBERTY BROADBAND FINANCIAL METRICS
(amounts in millions)
1Q23
1Q24
Revenue
GCI Holdings
$
246
$
245
Corporate and other
—
—
Total Liberty Broadband Revenue
$
246
$
245
Operating Income
GCI Holdings
$
29
$
37
Corporate and other
(13
)
(9
)
Total Liberty Broadband Operating Income
$
16
$
28
Adjusted OIBDA
GCI Holdings
$
90
$
90
Corporate and other
(8
)
(5
)
Total Liberty Broadband Adjusted OIBDA
$
82
$
85
Important Notice: Liberty Broadband (Nasdaq: LBRDA, LBRDK, LBRDP) will discuss Liberty Broadband’s earnings release on a conference call which will begin at 11:15 a.m. (E.T.) on May 8, 2024. The call can be accessed by dialing (877) 407-3944 or (412) 902-0038, passcode 13742820, at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to https://www.libertybroadband.com/investors/news-events/ir-calendar. Links to this press release and replays of the call will also be available on Liberty Broadband’s website.
This press release includes certain forward-looking statements under the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, future financial prospects, capital expenditures, matters relating to Liberty Broadband’s equity interest in Charter and Charter’s buyback of common stock, Liberty Broadband’s participation in Charter’s buyback of common stock, the continuation of our stock repurchase program 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 Broadband, changes in law and government regulations, the availability of investment opportunities, general market conditions (including as a result of inflationary pressures) and market conditions conducive to stock repurchases. These forward-looking statements speak only as of the date of this press release, and Liberty Broadband 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 Broadband'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 Broadband, including the most recent Forms 10-K and 10-Q, for additional information about Liberty Broadband and about the risks and uncertainties related to Liberty Broadband which may affect the statements made in this press release.
NON-GAAP FINANCIAL MEASURES
To provide investors with additional information regarding our financial results, this press release includes a presentation of Adjusted OIBDA, which is a non-GAAP financial measure, for Liberty Broadband (and certain of its subsidiaries) and GCI Holdings together with a reconciliation to that entity or such businesses’ operating income, as determined under GAAP. Liberty Broadband defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, transaction costs, separately reported litigation settlements, restructuring and impairment charges. Further, this press release includes Adjusted OIBDA margin which is also a non-GAAP financial measure. Liberty Broadband defines Adjusted OIBDA margin as Adjusted OIBDA divided by revenue.
Liberty Broadband believes Adjusted OIBDA is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business' performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. Because Adjusted OIBDA is used as a measure of operating performance, Liberty Broadband 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 Broadband’s management considers in assessing the results of operations and performance of its assets. Please see the tables below for applicable reconciliations.
SCHEDULE 1
The following table provides a reconciliation of GCI’s operating income to its Adjusted OIBDA for the three months ended March 31, 2023 and March 31, 2024.
GCI HOLDINGS ADJUSTED OIBDA RECONCILIATION
(amounts in millions)
1Q23
1Q24
GCI Holdings Operating Income
$
29
$
37
Depreciation and amortization
58
50
Stock-based compensation
3
3
GCI Holdings Adjusted OIBDA
$
90
$
90
SCHEDULE 2
The following table provides a reconciliation of operating income (loss) calculated in accordance with GAAP to Adjusted OIBDA for Liberty Broadband for the three months ended March 31, 2023 and March 31, 2024.
LIBERTY BROADBAND ADJUSTED OIBDA RECONCILIATION
(amounts in millions)
1Q23
1Q24
Liberty Broadband Operating Income
$
16
$
28
Depreciation and amortization
58
50
Stock-based compensation
8
7
Liberty Broadband Adjusted OIBDA
$
82
$
85
GCI Holdings
$
90
$
90
Corporate and other
(8
)
(5
)
LIBERTY BROADBAND CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
(unaudited)
March 31,
December 31,
2024
2023
amounts in millions,
except share amounts
Assets
Current assets:
Cash and cash equivalents
$
108
158
Trade and other receivables, net of allowance for credit losses of $5 and $5, respectively
186
178
Prepaid and other current assets
56
94
Total current assets
350
430
Investment in Charter, accounted for using the equity method
12,281
12,116
Property and equipment, net
1,078
1,053
Intangible assets not subject to amortization
Goodwill
755
755
Cable certificates
550
550
Other
40
40
Intangible assets subject to amortization, net
449
461
Other assets, net
237
236
Total assets
$
15,740
15,641
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities
$
94
86
Deferred revenue
29
30
Current portion of debt
3
3
Other current liabilities
67
59
Total current liabilities
193
178
Long-term debt, net, including $1,200 and $1,255 measured at fair value, respectively
3,636
3,733
Obligations under tower obligations and finance leases, excluding current portion
81
83
Long-term deferred revenue
77
65
Deferred income tax liabilities
2,255
2,216
Preferred stock
201
202
Other liabilities
139
141
Total liabilities
6,582
6,618
Equity
Series A common stock, $.01 par value. Authorized 500,000,000 shares; issued and outstanding 18,235,286 and 18,233,573 at March 31, 2024 and December 31, 2023, respectively
—
—
Series B common stock, $.01 par value. Authorized 18,750,000 shares; issued and outstanding 2,023,432 and 2,025,232 at March 31, 2024 and December 31, 2023, respectively
—
—
Series C common stock, $.01 par value. Authorized 500,000,000 shares; issued and outstanding 122,589,251 and 123,704,814 at March 31, 2024 and December 31, 2023, respectively
1
1
Additional paid-in capital
3,018
3,107
Accumulated other comprehensive earnings (loss), net of taxes
35
52
Retained earnings
6,084
5,843
Total stockholders' equity
9,138
9,003
Non-controlling interests
20
20
Total equity
9,158
9,023
Commitments and contingencies
Total liabilities and equity
$
15,740
15,641
LIBERTY BROADBAND CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION
(unaudited)
Three months ended
March 31,
2024
2023
amounts in millions,
except per share amounts
Revenue
$
245
246
Operating costs and expenses:
Operating expense (exclusive of depreciation and amortization shown separately below)
62
62
Selling, general and administrative, including stock-based compensation
105
110
Depreciation and amortization
50
58
217
230
Operating income (loss)
28
16
Other income (expense):
Interest expense (including amortization of deferred loan fees)
(51
)
(45
)
Share of earnings (losses) of affiliate
280
248
Gain (loss) on dilution of investment in affiliate
(28
)
(27
)
Realized and unrealized gains (losses) on financial instruments, net
76
(114
)
Other, net
4
14
Earnings (loss) before income taxes
309
92
Income tax benefit (expense)
(68
)
(23
)
Net earnings (loss)
241
69
Less net earnings (loss) attributable to the non-controlling interests
—
—
Net earnings (loss) attributable to Liberty Broadband shareholders
$
241
69
Basic net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share
$
1.69
0.47
Diluted net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share
$
1.69
0.47
LIBERTY BROADBAND CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION
(unaudited)
Three months ended
March 31,
2024
2023
amounts in millions
Cash flows from operating activities:
Net earnings (loss)
$
241
69
Adjustments to reconcile net earnings (loss) to net cash from operating activities:
Depreciation and amortization
50
58
Stock-based compensation
7
8
Share of (earnings) losses of affiliate, net
(280
)
(248
)
(Gain) loss on dilution of investment in affiliate
28
27
Realized and unrealized (gains) losses on financial instruments, net
(76
)
114
Deferred income tax expense (benefit)
44
22
Other, net
(1
)
(1
)
Change in operating assets and liabilities:
Current and other assets
39
(6
)
Payables and other liabilities
—
(2
)
Net cash provided by (used in) operating activities
52
41
Cash flows from investing activities:
Capital expenditures
(61
)
(54
)
Grant proceeds received for capital expenditures
15
—
Cash received for Charter shares repurchased by Charter
81
42
Other investing activities, net
(17
)
—
Net cash provided by (used in) investing activities
18
(12
)
Cash flows from financing activities:
Borrowings of debt
20
1,248
Repayments of debt, tower obligations and finance leases
(62
)
(1,416
)
Repurchases of Liberty Broadband common stock
(89
)
(40
)
Indemnification payment to Qurate Retail
—
(24
)
Other financing activities, net
(1
)
(3
)
Net cash provided by (used in) financing activities
(132
)
(235
)
Net increase (decrease) in cash, cash equivalents and restricted cash
(62
)
(206
)
Cash, cash equivalents and restricted cash, beginning of period
176
400
Cash, cash equivalents and restricted cash, end of period
$
114
194
View source version on businesswire.com: https://www.businesswire.com/news/home/20240507783975/en/
Liberty Broadband Corporation Shane Kleinstein, 720-875-5432
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