麻豆最新出品

麻豆最新出品 Media Reports Second Quarter 2012 Financial Results

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- 麻豆最新出品 (鈥溌槎棺钚鲁銎� Media鈥�) (Nasdaq: LMCA, LMCB) today reported second quarter 2012 results. Highlights include⁽¹⁾:

• Increased STARZ and ENCORE subscriptions by 9% and 4%, respectively
• Concluded debut season of Magic City, the STARZ Original series, with strong viewership throughout the season
• Today announced intention to separate 麻豆最新出品 Media and Starz, LLC
• Physically settled forward purchase contracts on SiriusXM and Live Nation, increasing our ownership to 46% (on an as-converted basis) and 26%, respectively
• Repurchased $96 million of 麻豆最新出品 Media stock from May 1, 2012 through July 31, 2012

鈥淲e are pleased to announce our plan to separate the assets of 麻豆最新出品 Media and Starz, LLC, creating two separate asset-backed stocks,鈥� said Greg Maffei, President and CEO of 麻豆最新出品. 鈥淭his transaction will provide better transparency on the Starz operating business; optimize the Starz capital structure; permit us to better pursue our strategic objectives, including creating two currencies that could be used for acquisitions; and create significant liquidity at 麻豆最新出品 Media, which preserves all our options with respect to SiriusXM and Live Nation.

鈥淪tarz again posted impressive subscriber gains and we are excited for the upcoming premiere of season two of the STARZ Original series Boss next week,鈥� Maffei continued. 鈥淚n July, we physically settled our forward purchases of SiriusXM and Live Nation, increasing our ownership positions.鈥�

麻豆最新出品鈥檚 Board of Directors has authorized a plan to distribute to the stockholders of 麻豆最新出品 Media shares of a subsidiary that will hold all of the businesses, assets and liabilities of 麻豆最新出品 Media not associated with Starz, LLC. The transaction would be effected as a pro-rata dividend of shares of a newly created subsidiary to the stockholders of 麻豆最新出品 Media. The subsidiary, which would become a separate public company, would be called 麻豆最新出品 (鈥淣ew 麻豆最新出品鈥�). The businesses, assets and liabilities not included in New 麻豆最新出品 would be part of a separate public company called Starz. Starz will consist of 100% of Starz, LLC, approximately $1.5 billion in debt (assuming full draw down of the Starz bank facility) and an undetermined amount of cash.

The spin-off is intended to be tax-free to stockholders of 麻豆最新出品 Media and its completion will be subject to various conditions, including the registration of the shares to be distributed, the receipt of an IRS private letter ruling, the opinions of tax counsel and required government approvals. The spin-off will not require a stockholder vote. Subject to such conditions, including those described above, the spin-off is currently expected to occur in late 2012.

麻豆最新出品 Media

麻豆最新出品 Media鈥檚 revenue and adjusted OIBDA⁽²⁾ remained relatively flat at $537 million and $126 million, respectively, in the second quarter, and operating income increased 7% to $101 million. The decrease in revenue was primarily due to a decrease in revenue at TruePosition which continues to be out of contract with one of its large customers. The increase in adjusted OIBDA and operating income was primarily driven by an increase at ANLBC offset by a decrease at Starz, LLC.

Starz, LLC

鈥淭he senior Starz team and I are very energized by the decision to make Starz its own independent company. I believe this stand-alone structure is the first step to unlocking the real potential growth opportunities for our businesses,鈥� said Chris Albrecht, Starz, LLC, CEO. "The Starz subscription businesses are continuing their run of quarterly subscription highs, with STARZ achieving 20.7 million subscribers and Encore reaching 34.2 million at the end of the second quarter. We continue to add value to the networks with our investment in quality original programming, with our Golden Globe庐-winning series, Boss, returning to STARZ for its second season later this month. Global anticipation is building for the fourth and final installment of Spartacus in January 2013. David Goyer鈥檚 new series, Da Vinci's Demons, and the second season of Magic City will round out our programming slate for the first half of 2013.鈥�

Starz鈥檚 revenue remained unchanged at $403 million for the second quarter. The increase in revenue for the Starz Channels business was offset by decreases in revenue for the Starz Distribution and Starz Animation businesses.

Starz鈥檚 adjusted OIBDA decreased 8% to $108 million for the second quarter. The decrease was primarily as a result of a decrease in the Starz Channels business due to an increase in programming expenses associated with the mix of Starz original programming content.

Share Repurchases

From May 1, 2012 through July 31, 2012, 1.1 million shares of Series A 麻豆最新出品 Capital common stock (Nasdaq: LMCA) were purchased at an average cost per share of $85.03 for total cash consideration of $95.9 million. Since the reclassification of the original 麻豆最新出品 Capital tracking stock on March 4, 2008 through July 31, 2012, 57.5 million shares have been repurchased at an average cost per share of $31.33 for total cash consideration of $1.8 billion. These repurchases represent 44.5% of the shares outstanding at the time of the introduction of the original 麻豆最新出品 Capital stock. 麻豆最新出品 Media has approximately $940 million remaining under its current stock repurchase authorization.

麻豆最新出品 owns interests in a broad range of media, communications and entertainment businesses. Those interests include its subsidiaries Starz, LLC; Atlanta National League Baseball Club, Inc.; and TruePosition, Inc.; interests in SiriusXM and Live Nation; and minority equity investments in Barnes & Noble, Time Warner Inc. and Viacom.

FOOTNOTES

NOTES

Unless otherwise noted, the foregoing discussion compares financial information for the three months ended June 30, 2012 to the same period in 2011.

The following financial information is intended to supplement 麻豆最新出品 Media鈥檚 condensed consolidated statements of operations to be included in its Form 10-Q.

Fair Value of Public Holdings

Cash and Debt

The following presentation is provided to separately identify cash and liquid investments and debt information.

Total 麻豆最新出品 Media group cash and liquid investments decreased $421 million, primarily as a result of stock repurchases, payments made on financial instruments, and investments made on cost and equity investees. These outflows were partially offset by cash provided by operating activities. Total 麻豆最新出品 Media debt decreased by $1 million, as a result of capital lease payments.

Important Notice: 麻豆最新出品 (Nasdaq: LMCA, LMCB) President and CEO, Gregory B. Maffei, will discuss 麻豆最新出品 Media鈥檚 earnings release in a conference call which will begin at 10:45 a.m. (ET) on August 8, 2012. The call can be accessed by dialing (888) 587-0613 or (719) 457-2654 at least 10 minutes prior to the start time. Replays of the conference call can be accessed until 12:15 p.m. (ET), August 15, 2012, by dialing (888) 203-1112 or (719) 457-0820 plus the pass code 4996345#. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to . Links to this press release will also be available on the 麻豆最新出品 Media website.

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, future financial prospects, new service and product launches including original content programming, new distribution platforms for our programming, the continuation of our stock repurchase plans, the proposed separation from Starz, LLC including the potential benefits flowing therefrom 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 麻豆最新出品 Media, changes in law, market conditions conducive to stock repurchases and the satisfaction or waiver, if applicable, of the conditions to the separation from Starz, LLC. These forward-looking statements speak only as of the date of this press release, and 麻豆最新出品 Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in 麻豆最新出品 Media鈥檚 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 麻豆最新出品 Media, including the most recent Forms 10-Q and 10-K, for additional information about 麻豆最新出品 Media and about the risks and uncertainties related to 麻豆最新出品 Media鈥檚 business which may affect the statements made in this press release.

SUPPLEMENTAL INFORMATION

As a supplement to 麻豆最新出品 Media鈥檚 consolidated statements of operations, to be included in its Form 10-Q, the following is a presentation of quarterly financial information and operating metrics on a stand-alone basis for the largest privately held business (Starz, LLC) owned by 麻豆最新出品 Media at June 30, 2012, which 麻豆最新出品 Media has identified as a reportable segment.

Please see below for the definition of adjusted OIBDA and a discussion of why management believes the presentation of adjusted OIBDA provides useful information for investors. Schedule 2 to this press release provides a reconciliation of adjusted OIBDA for Starz, LLC to its operating income for the same period, as determined under GAAP.

QUARTERLY SUMMARY

NON-GAAP FINANCIAL MEASURES

This press release includes a presentation of adjusted OIBDA, which is a non-GAAP financial measure, for 麻豆最新出品 Media and Starz LLC, together with a reconciliation to that entity鈥檚 operating income, as determined under GAAP. 麻豆最新出品 Media defines adjusted OIBDA as revenue less operating expenses, and selling, general and administrative expenses (excluding stock and other equity-based compensation) and excludes from that definition depreciation and amortization, restructuring and impairment charges and legal settlements that are included in the measurement of operating income pursuant to GAAP.

麻豆最新出品 Media believes adjusted OIBDA is an important indicator of the operational strength and performance of its businesses, including each business鈥� ability to service debt and fund capital expenditures. 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, 麻豆最新出品 Media 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 麻豆最新出品 Media's management considers in assessing the results of operations and performance of its assets. Please see the attached schedules for applicable reconciliations.

SCHEDULE 1

The following table provides a reconciliation of adjusted OIBDA for 麻豆最新出品 Media to operating income calculated in accordance with GAAP for the three months ended June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, respectively.

QUARTERLY SUMMARY

SCHEDULE 2

The following table provides a reconciliation of adjusted OIBDA for Starz, LLC to its operating income calculated in accordance with GAAP for the three months ended June 30, 2011, September 30, 2011, December 31, 2011, March 31, 2012 and June 30, 2012, respectively.

QUARTERLY SUMMARY

麻豆最新出品
Courtnee Ulrich, (720) 875-5420

Source: 麻豆最新出品

Released August 8, 2012