Liberty Live Holdings (LLYVK) Q4 2002 earnings summary

Executive summary

• 2002 operating businesses generally met or exceeded expectations despite a difficult economy; private assets generated organic growth and increasingly funded themselves.

• Strategy focused on adding cash-generating operating businesses, reducing exposure to public-stock volatility, and improving liquidity and capital flexibility.

Financial highlights

• Revenue was $2.084B in 2002 vs. $2.059B in 2001; operating loss was $184M vs. $1.127B, and net loss was $5.330B vs. $6.203B.

• 2002 results included $6.053B of nontemporary investment declines, $453M of affiliate losses, a $1.869B after-tax Statement 142 transition impairment, and $2.122B of derivative gains.

• Excluding amortization changes, Statement 142-adjusted net loss for 2001 was $5.111B vs. reported $6.203B; adjusted 2000 net earnings were $2.715B vs. reported $1.485B.

• Cash from operations was $199M in 2002; cash and cash equivalents were $2.170B at year-end, essentially unchanged from 2001.

Outlook and guidance

• 2003 investment and advances to existing affiliates were expected to total ~$470M, including ~$400M in Q1; private-asset funding was expected to remain below $500M.

• Expected 2003 dividend and interest income was ~$170M; interest payments were expected to be ~$400M, including ~$325M on parent debt.

• Expected 2003 debt repayments or refinancing needs were $325M of corporate debt and $330M of subsidiary debt; funding sources included cash, securities monetization, asset sales, and financing.

• Organic revenue and operating cash flow growth were expected across businesses, alongside continued pursuit of strategic acquisitions and dependable cash-flow assets.