Liberty Live Holdings (LLYVK) Q4 2001 earnings summary

Executive summary

• FY 2001 revenue was $2.059B; net loss was $6.203B, reflecting heavy affiliate losses, investment write-downs and other charges.

• Portfolio strategy prioritizes long-term returns on invested equity over a rolling 5–7 years, through operating growth, transactions and capital-structure management.

Financial highlights

• Revenue rose from $1.526B in 2000 to $2.059B in 2001; operating loss was $1.127B versus operating income of $436M in 2000.

• Net loss was $6.203B, including $4.906B of affiliate losses and $4.101B of nontemporary declines in investment values; net disposition losses were $310M.

• Interest expense increased to $525M from $399M; operating cash flow was $26M versus $199M in 2000.

• SFAS 133 adoption added $545M to net earnings after tax, or $0.21/share; reported loss before the accounting change was $6.748B.

Outlook and guidance

• Planned 2002 investments and advances to affiliates were $1.0–$1.5B; $1.143B of debt was due for repayment or refinancing.

• 2002 expected dividend and interest income was $180M and interest payments approximately $400M, based on then-current debt and rates.

• Starz Encore expected improved 2002 operating income after goodwill amortization ended; Court TV expected >20% revenue growth and positive operating cash flow.

• Liberty Livewire lowered 2002 expectations after weaker 2001 results; On Command expected cost controls to improve margins, without assurance.