Liberty Broadband Reports Second Quarter 2021 Financial Results


ENGLEWOOD, Colo.–(BUSINESS WIRE)–Liberty Broadband Corporation (“Liberty Broadband”) (Nasdaq: LBRDA, LBRDK, LBRDP) today reported second quarter 2021 results. Headlines include(1):

  • Fair value of Charter investment was $41 billion as of June 30th
  • From May 1st through July 31st, Liberty Broadband received $1.1 billion of proceeds from sale of 1.6 million Charter shares to Charter
    • Maintained fully diluted equity interest in Charter of 26%(2)
  • From May 1st through July 31st, Liberty Broadband repurchased 7.5 million LBRDK shares at an average price per share of $167.17 and total cash consideration of $1.3 billion
  • Liberty Broadband’s Board of Directors increased remaining repurchase authorization to approximately $2.5 billion
  • In the second quarter, GCI(3) grew revenue 7% to $238 million, generated operating income of $18 million and increased adjusted OIBDA(4) 14% to $89 million

“We continued to use the proceeds from participating in Charter’s buyback to repurchase Liberty Broadband shares at a meaningful discount to net asset value,” said Greg Maffei, Liberty Broadband President and CEO. “Additionally we opportunistically amended our Charter margin loan, decreasing the pricing and extending the maturity. Charter continues to demonstrate the power of broadband with significant net adds and produced strong results for the quarter. GCI posted impressive top and bottom line growth driven by robust demand for data, as well as strong subscriber growth on the wireless side with our customers enjoying the benefits of our 5G network buildout in Anchorage.”

Share Repurchases

From May 1, 2021 through July 31, 2021, Liberty Broadband repurchased approximately 7.5 million shares of Series C Liberty Broadband common stock (Nasdaq: LBRDK) at an average cost per share of $167.17 for total cash consideration of $1.3 billion. In August 2021, Liberty Broadband’s Board of Directors increased the remaining repurchase authorization to approximately $2.5 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 Class A common stock as is necessary to maintain Liberty Broadband’s percentage equity interest at 26% on a fully diluted basis. Such sales are executed by Liberty Broadband monthly based on Charter’s repurchase activity in the month prior.

From May 1, 2021 through July 31, 2021, Liberty Broadband sold 1.6 million shares of Charter Class A common stock to Charter for total proceeds of approximately $1.1 billion.

Balance Sheet

The following presentation is provided to separately identify cash and liquid investments, debt and public holdings of Liberty Broadband as of March 31, 2021 and June 30, 2021.

 

 

 

 

 

 

 

(amounts in millions)

 

3/31/2021

 

6/30/2021

Cash and Cash Equivalents:

 

 

 

 

 

 

GCI Holdings

 

$

51

 

 

$

41

 

Corporate and Other

 

 

1,126

 

 

 

178

 

Total Liberty Broadband Consolidated Cash

 

$

1,177

 

 

$

219

 

 

 

 

 

 

 

 

Fair Value of Public Holdings in Charter(a)

 

$

36,177

 

 

$

40,909

 

 

 

 

 

 

 

 

Debt:

 

 

 

 

 

 

Senior Notes(b)

 

$

600

 

 

$

600

 

Senior Credit Facility

 

 

523

 

 

 

492

 

Finance Leases and Other(c)

 

 

103

 

 

 

99

 

Total GCI Holdings Debt

 

$

1,226

 

 

$

1,191

 

GCI Leverage(d)

 

 

3.4x

 

 

3.3x

 

 

 

 

 

 

 

Charter Margin Loan

 

$

2,000

 

 

$

1,150

 

1.25% Exchangeable Senior Debentures due 2050(e)

 

 

825

 

 

 

825

 

1.75% Exchangeable Senior Debentures due 2046(e)

 

 

15

 

 

 

15

 

2.75% Exchangeable Senior Debentures due 2050(e)

 

 

575

 

 

 

575

 

Total Corporate Level Debt

 

$

3,415

 

 

$

2,565

 

 

 

 

 

 

 

 

Total Liberty Broadband Debt

 

$

4,641

 

 

$

3,756

 

Fair market value adjustment and deferred loan costs

 

 

43

 

 

 

79

 

Finance leases and tower obligations (excluded from GAAP Debt)

 

 

(97

)

 

 

(93

)

Total Liberty Broadband Debt (GAAP)

 

$

4,587

 

 

$

3,742

 

 

 

 

 

 

 

 

Other Financial Obligations:

 

 

 

 

 

 

Indemnification Obligation(f)

 

$

293

 

 

$

385

 

Preferred Stock(g)

 

 

178

 

 

 

178

 

 

a)

 

Represents fair value of the investment in Charter as of March 31, 2021 and June 30, 2021. A portion of the Charter equity securities are considered covered shares and subject to certain contractual restrictions in accordance with the indemnification obligation, as described below.

b)

 

Principal amount of Senior Notes.

c)

 

Includes the Wells Fargo Note Payable and current and long-term obligations under finance leases and tower obligations.

d)

 

As defined in GCI’s credit agreement.

e)

 

Principal amount of Senior Exchangeable Debentures, exclusive of fair market value adjustments.

f)

 

Indemnity to Qurate Retail, pursuant to an indemnification agreement (the “indemnification agreement”), with respect to the Liberty Interactive LLC (“LI LLC”) 1.75% exchangeable debentures due 2046 (the “LI LLC Charter exchangeable debentures”), as described below.

g)

 

Liquidation value of preferred stock. Preferred stock has a 7% coupon, $25/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 $958 million in the second quarter as share repurchases at Liberty Broadband and debt repayment more than offset proceeds from Charter share sales in the period. GCI cash decreased due to debt repayment and capital expenditures, partially offset by cash from operations.

Liberty Broadband debt decreased $885 million in the second quarter. On May 12, 2021, Liberty Broadband amended its $2.3 billion Charter margin loan, reducing pricing from 1.85% to 1.50% and extending the maturity to May 2024. In connection with the amendment, Liberty Broadband repaid $850 million under the Charter margin loan. Undrawn capacity under the Charter margin loan is $1.15 billion as of June 30, 2021. Also during the second quarter, GCI repaid approximately $30 million under its revolving credit facility funded with cash from operations. Total capacity under GCI’s revolving credit facility is $550 million, of which undrawn capacity is $452 million (net of letters of credit), and GCI’s leverage as defined in its credit agreement is 3.3x.

Liberty Broadband has an indemnification agreement with Qurate Retail with respect to Qurate Retail’s Charter exchangeable debentures. Pursuant to the indemnification agreement, Liberty Broadband will compensate Qurate Retail for any payments made in excess of the adjusted principal amount of the LI LLC Charter exchangeable debentures to any holder that exercises its exchange right on or before the put/call date of October 5, 2023. This indemnity is supported by a negative pledge in favor of Qurate Retail on the reference shares of Class A common stock of Charter held at Liberty Broadband that underlie the LI LLC Charter exchangeable debentures. The indemnification obligation on Liberty Broadband’s balance sheet is valued based on the estimated exchange feature in the LI LLC Charter exchangeable debentures. As of June 30, 2021, a holder of the LI LLC Charter exchangeable debentures has the ability to exchange, and accordingly, the indemnification obligation is classified as a current liability.

GCI Results

Unless otherwise noted, the following discussion compares financial information for the three months ended June 30, 2021 to the same period in 2020.

In the second quarter, GCI revenue grew 7% due to robust demand for data across both consumer and business customers. The consumer data growth was driven by an 8% increase in revenue-generating subscribers and an increase in data ARPU. The business growth was driven by service upgrades for both school and medical customers. Additionally, consumer wireless growth was strong driven by GCI’s 5G network buildout in Anchorage. Operating income improved and adjusted OIBDA grew 14% in the second quarter primarily due to the revenue growth.

In the second quarter, GCI spent $26 million on capital expenditures, excluding capitalized interest. Capital expenditure spending was related primarily to improvements to the wireless and hybrid fiber coax networks.

Rural Healthcare Update

On January 19, 2021, the Wireline Competition Bureau of the FCC issued an order which provides rate certainty to Alaska providers for funding years ending June 30, 2022 and June 30, 2023 by requiring them to use previously approved rates from the FCC, which we expect will provide increased certainty for the RHC business in the aforementioned funding years. On May 25, 2021, the FCC approved the cost studies submitted by GCI Holdings for the funding year that ended June 30, 2021.

FOOTNOTES

1)

 

Liberty Broadband’s President and CEO, Greg Maffei, will discuss these highlights and other matters on Liberty Broadband’s earnings conference call that will begin at 11:15 a.m. (E.D.T.) on August 6, 2021. For information regarding how to access the call, please see “Important Notice” later in this document.

2)

 

Calculated pursuant to Liberty Broadband and Charter’s stockholder agreement.

3)

 

Liberty Broadband’s principal operating asset is GCI Holdings, LLC (“GCI” or “GCI Holdings”), Alaska’s largest communications provider. Other assets include its interests in Charter Communications, Inc. (“Charter”).

4)

 

For a definition of adjusted OIBDA and adjusted OIBDA margin and applicable reconciliations, see the accompanying schedules.

NOTES

LIBERTY BROADBAND GAAP FINANCIAL METRICS

 

 

 

 

 

 

 

(amounts in thousands)

 

2Q20

 

2Q21

Revenue

 

 

 

 

 

 

GCI Holdings

 

$

NA

 

$

237,856

 

Corporate and other

 

 

4,114

 

 

 

4,428

 

Total Liberty Broadband Revenue

 

$

4,114

 

 

$

242,284

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

 

 

GCI Holdings

 

$

NA

 

$

17,574

 

Corporate and other(a)

 

 

(9,832

)

 

 

(19,666

)

Total Liberty Broadband Operating Income (Loss)

 

$

(9,832

)

 

$

(2,092

)

 

 

 

 

 

 

 

Adjusted OIBDA (Loss)

 

 

 

 

 

 

GCI Holdings

 

$

NA

 

$

88,656

 

Corporate and other

 

 

(7,407

)

 

 

(13,309

)

Total Liberty Broadband Adjusted OIBDA (Loss)

 

$

(7,407

)

 

$

75,347

 

HISTORICAL GCI OPERATING METRICS AND FINANCIAL RESULTS

GCI’s results are only included in Liberty Broadband’s results following the merger of Liberty Broadband and GCI Liberty on December 18, 2020. However, we believe a discussion of GCI’s results for a comparative two-year period promotes a better understanding of GCI’s operations. For comparison and discussion purposes, the following information presents actual historical results of GCI for the quarter ended June 30, 2020, exclusive of the effects of acquisition accounting, and the actual historical results of GCI as included in Liberty Broadband’s results for the quarter ended June 30, 2021. The most significant effect of acquisition accounting is an increase to depreciation and amortization as compared to prior periods as a result of an increase in fair values of depreciable or amortizable assets. This historical financial information of GCI can be found in historical filings of GCI Liberty, Inc. The financial information below is presented voluntarily and does not purport to represent what the results of operations of GCI would have been if it were a wholly owned subsidiary of Liberty Broadband for the periods presented or to project the results of operations of GCI for any future periods.

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q20

 

 

2Q21

 

% Change

 

(amounts in thousands, except operating metrics)

 

 

 

 

 

 

 

 

 

GCI Consolidated Financial Metrics

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

Consumer

 

$

112,047

 

 

$

119,937

 

 

7

 

%

Business

 

 

110,534

 

 

 

117,919

 

 

7

 

%

Total revenue

 

$

222,581

 

 

$

237,856

 

 

7

 

%

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

$

14,806

 

 

$

17,574

 

 

19

 

%

Operating income margin (%)

 

 

6.7

%

7.4

%

70

 

bps

 

 

 

 

 

 

 

 

 

 

Adjusted OIBDA(a)

 

$

78,045

 

 

$

88,656

 

 

14

 

%

Adjusted OIBDA margin(a) (%)

 

 

35.1

%

37.3

%

220

 

bps

 

 

 

 

 

 

 

 

 

 

GCI Consumer

 

 

 

 

 

 

 

 

 

Financial Metrics

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

Wireless

 

$

42,327

 

 

$

44,756

 

 

6

 

%

Data

 

 

45,416

 

 

 

52,661

 

 

16

 

%

Video

 

 

20,461

 

 

 

18,709

 

 

(9

)

%

Voice

 

 

3,843

 

 

 

3,811

 

 

(1

)

%

Total revenue

 

$

112,047

 

 

$

119,937

 

 

7

 

%

Operating Metrics

 

 

 

 

 

 

 

 

 

Wireless:

 

 

 

 

 

 

 

 

 

Revenue generating lines in service(b)

 

 

179,400

 

 

 

189,100

 

 

5

 

%

Data:

 

 

 

 

 

 

 

 

 

Revenue generating cable modem subscribers(c)

 

 

134,900

 

 

 

145,400

 

 

8

 

%

Video:

 

 

 

 

 

 

 

 

 

Basic subscribers

 

 

77,700

 

 

 

64,600

 

 

(17

)

%

Voice – Total access lines in service(d)

 

 

38,200

 

 

 

36,300

 

 

(5

)

%

 

 

 

 

 

 

 

 

 

 

GCI Business

 

 

 

 

 

 

 

 

 

Financial Metrics

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

Wireless

 

$

21,035

 

 

$

19,876

 

 

(6

)

%

Data

 

 

73,756

 

 

 

86,583

 

 

17

 

%

Video

 

 

4,427

 

 

 

880

 

 

(80

)

%

Voice

 

 

11,316

 

 

 

10,580

 

 

(7

)

%

Total revenue

 

$

110,534

 

 

$

117,919

 

 

7

 

%

Operating Metrics

 

 

 

 

 

 

 

 

 

Wireless – Revenue generating lines in service(b)

 

 

25,000

 

 

 

21,700

 

 

(13

)

%

Data – Revenue generating cable modem subscribers(c)

 

 

8,700

 

 

 

13,400

 

 

54

 

%

Voice – Total access lines in service(d)

 

 

33,500

 

 

 

29,500

 

 

(12

)

%

 

a)

 

See reconciling schedule 1.

b)

 

A revenue generating wireless line in service is defined as a wireless device with a monthly fee for services.

c)

 

A revenue generating 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.

d)

 

A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.

Important Notice: Liberty Broadband (Nasdaq: LBRDA, LBRDK, LBRDP) President and CEO, Greg Maffei, will discuss Liberty Broadband’s earnings release on a conference call which will begin at 11:15 a.m. (E.D.T.) on August 6, 2021. The call can be accessed by dialing (800) 289-0571 or (323) 794-2093, passcode 3865735, 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 www.libertybroadband.com/events. 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, 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, indemnification by Liberty Broadband, 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 COVID-19) 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, acquisition and other related costs 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 June 30, 2020 and June 30, 2021, respectively.

GCI HOLDINGS ADJUSTED OIBDA RECONCILIATION

 

 

 

 

 

 

 

(amounts in thousands)

 

2Q20

 

2Q21

GCI Holdings Operating Income

 

$

14,806

 

$

17,574

Depreciation and amortization

 

 

60,543

 

 

66,825

Stock-based compensation

 

 

2,696

 

 

4,257

GCI Holdings Adjusted OIBDA

 

$

78,045

 

$

88,656

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 June 30, 2020 and June 30, 2021, respectively.

LIBERTY BROADBAND ADJUSTED OIBDA RECONCILIATION

 

 

 

 

 

 

 

 

(amounts in thousands)

 

2Q20

 

2Q21

Liberty Broadband Operating Loss

 

$

(9,832

)

 

$

(2,092

)

Depreciation and amortization

 

 

492

 

 

 

66,874

 

Stock-based compensation

 

 

1,933

 

 

 

10,565

 

Liberty Broadband Adjusted OIBDA (Loss)

 

$

(7,407

)

 

$

75,347

 

GCI Holdings

 

$

NA

 

 

 

88,656

 

Corporate and other

 

 

(7,407

)

 

 

(13,309

)

 

LIBERTY BROADBAND CORPORATION AND SUBSIDIARIES

BALANCE SHEET INFORMATION

(unaudited)

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

2021

 

2020

 

 

amounts in thousands,

except share amounts

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

219,241

 

1,417,802

Trade and other receivables, net of allowance for doubtful accounts of $1,741 and $10, respectively

 

 

233,571

 

349,256

Other current assets

 

 

66,237

 

79,453

Total current assets

 

 

519,049

 

1,846,511

Investment in Charter, accounted for using the equity method

 

 

14,947,277

 

16,178,939

Property and equipment, net

 

 

1,046,634

 

1,098,512

Intangible assets not subject to amortization

 

 

 

 

 

Goodwill

 

 

764,686

 

745,577

Cable certificates

 

 

550,000

 

560,000

Other

 

 

36,500

 

21,500

Intangible assets subject to amortization, net

 

 

606,656

 

674,049

Tax sharing receivable

 

 

108,602

 

94,549

Other assets, net

 

 

195,653

 

151,487

Total assets

 

$

18,775,057

 

21,371,124

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

216,508

 

97,933

Deferred revenue

 

 

30,488

 

24,926

Current portion of debt, including $27,250 and $26,350 measured at fair value, respectively

 

 

31,939

 

31,026

Indemnification obligation

 

 

385,212

 

344,643

Other current liabilities

 

 

64,726

 

113,234

Total current liabilities

 

 

728,873

 

611,762

Long-term debt, net, including $1,434,549 and $1,445,775 measured at fair value, respectively

 

 

3,710,090

 

4,785,207

Obligations under finance leases and tower obligations, excluding current portion

 

 

90,630

 

92,840

Long-term deferred revenue

 

 

37,236

 

39,649

Deferred income tax liabilities

 

 

1,991,624

 

1,977,643

Preferred stock

 

 

202,615

 

202,917

Other liabilities

 

 

183,937

 

146,687

Total liabilities

 

 

6,945,005

 

7,856,705

Equity

 

 

 

 

 

Series A common stock, $.01 par value. Authorized 500,000,000 shares; issued and outstanding 26,498,671 and 26,495,249 at June 30, 2021 and December 31, 2020, respectively

 

 

265

 

265

Series B common stock, $.01 par value. Authorized 18,750,000 shares; issued and outstanding 2,546,048 and 2,549,470 at June 30, 2021 and December 31, 2020, respectively

 

 

25

 

25

Series C common stock, $.01 par value. Authorized 500,000,000 shares; issued and outstanding 155,067,969 and 167,480,926 at June 30, 2021 and December 31, 2020, respectively

 

 

1,551

 

1,675

Additional paid-in capital

 

 

8,530,684

 

10,319,754

Accumulated other comprehensive earnings (loss), net of taxes

 

 

11,870

 

15,436

Retained earnings

 

 

3,273,980

 

3,165,504

Total stockholders’ equity

 

 

11,818,375

 

13,502,659

Non-controlling interests

 

 

11,677

 

11,760

Total equity

 

 

11,830,052

 

13,514,419

Commitments and contingencies

 

 

 

 

 

Total liabilities and equity

 

$

18,775,057

 

21,371,124

 

LIBERTY BROADBAND CORPORATION AND SUBSIDIARIES

STATEMENT OF OPERATIONS INFORMATION

(unaudited)

 

 

 

 

 

 

 

 

Three months ended

 

 

June 30,

 

 

2021

 

2020

 

 

amounts in thousands,

except per share amounts

Revenue

 

$

242,284

 

 

4,114

 

Operating costs and expenses:

 

 

 

 

 

Operating, including stock-based compensation

 

 

67,104

 

 

2,524

 

Selling, general and administrative, including stock-based compensation and transaction costs

 

 

110,398

 

 

10,930

 

Depreciation and amortization expense

 

 

66,874

 

 

492

 

 

 

 

244,376

 

 

13,946

 

Operating income (loss)

 

 

(2,092

)

 

(9,832

)

Other income (expense):

 

 

 

 

 

Interest expense (including amortization of deferred loan fees)

 

 

(28,734

)

 

(5,131

)

Share of earnings (losses) of affiliates

 

 

248,848

 

 

158,128

 

Gain (loss) on dilution of investment in affiliate

 

 

(14,538

)

 

(46,001

)

Realized and unrealized gains (losses) on financial instruments, net

 

 

(125,064

)

 

 

Other, net

 

 

22,720

 

 

28

 

Earnings (loss) before income taxes

 

 

101,140

 

 

97,192

 

Income tax (expense) benefit

 

 

(44,926

)

 

(24,978

)

Net earnings (loss)

 

 

56,214

 

 

72,214

 

Less net earnings (loss) attributable to the non-controlling interests

 

 

(42

)

 

 

Net earnings (loss) attributable to Liberty Broadband shareholders

 

$

56,256

 

 

72,214

 

Basic net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share

 

$

0.30

 

 

0.40

 

Diluted net earnings (loss) attributable to Series A, Series B and Series C Liberty Broadband shareholders per common share

 

$

0.30

 

 

0.39

 

 

LIBERTY BROADBAND CORPORATION AND SUBSIDIARIES

STATEMENT OF CASH FLOWS INFORMATION

(unaudited)

 

 

 

 

 

 

 

 

Six months ended

 

 

June 30,

 

 

2021

2020

 

 

amounts in thousands

Cash flows from operating activities:

 

 

 

 

 

Net earnings (loss)

 

$

108,393

 

 

64,372

 

Adjustments to reconcile net earnings (loss) to net cash from operating activities:

 

 

 

 

 

Depreciation and amortization

 

 

130,636

 

 

985

 

Stock-based compensation

 

 

20,435

 

 

3,734

 

Litigation settlement

 

 

110,000

 

 

 

Share of (earnings) losses of affiliates, net

 

 

(437,827

)

 

(219,810

)

(Gain) loss on dilution of investment in affiliate

 

 

96,753

 

 

105,326

 

Realized and unrealized (gains) losses on financial instruments, net

 

 

25,716

 

 

 

Deferred income tax expense (benefit)

 

 

(17,968

)

 

22,204

 

Other, net

 

 

(1,682

)

 

625

 

Change in operating assets and liabilities:

 

 

 

 

 

Current and other assets

 

 

137,407

 

 

(72

)

Payables and other liabilities

 

 

(60,406

)

 

6,938

 

Net cash provided by (used in) operating activities

 

 

111,457

 

 

(15,698

)

Cash flows from investing activities:

 

 

 

 

 

Capital expended for property and equipment

 

 

(50,099

)

 

(35

)

Exercise of preemptive right to purchase Charter shares

 

 

 

 

(14,910

)

Cash received for Charter shares repurchased by Charter

 

 

1,762,555

 

 

 

Other investing activities, net

 

 

1,762

 

 

 

Net cash provided by (used in) investing activities

 

 

1,714,218

 

 

(14,945

)

Cash flows from financing activities:

 

 

 

 

 

Borrowings of debt

 

 

716,684

 

 

 

Repayment of debt, finance leases and tower obligations

 

 

(1,781,459

)

 

 

Repurchases of Liberty Broadband common stock

 

 

(1,957,030

)

 

 

Other financing activities, net

 

 

(1,942

)

 

(1,919

)

Net cash provided by (used in) financing activities

 

 

(3,023,747

)

 

(1,919

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

(1,198,072

)

 

(32,562

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

1,433,292

 

 

49,724

 

Cash, cash equivalents and restricted cash, end of period

 

$

235,220

 

 

17,162

 

 

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