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TheStreet Open House

Liberty Interactive Reports Second Quarter 2012 Financial Results

Stock quotes in this article: LINTA, LINTB

The following table provides a reconciliation of adjusted OIBDA for QVC (and certain of its subsidiaries) and the eCommerce businesses to that reportable segment’s operating income (loss) 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

                     
(amounts in millions)   2Q11   3Q11   4Q11   1Q12   2Q12

Liberty Interactive

       
QVC Adjusted OIBDA
QVC US $ 305 259 401 270 315
 
QVC Japan 59 61 78 63 70
QVC Germany 41 40 69 46 39
QVC UK 26 24 40 20 21
QVC Italy   (13 )   (11 )   (9 )   (9 )   (7 )
QVC International adjusted OIBDA $ 113     114     178     120     123  
 
Consolidated QVC adjusted OIBDA $ 418 373 579 390 438
Depreciation and amortization (131 ) (133 ) (176 ) (127 ) (129 )
Stock compensation   (6 )   (6 )   (6 )   (5 )   (8 )
Operating Income $ 281     234     397     258     301  
 
eCommerce Businesses
Adjusted OIBDA $ 36 9 49 34 23
Depreciation and amortization (16 ) (17 ) (17 ) (17 ) (16 )
Stock compensation   (1 )   6     (2 )   (2 )   (8 )
Operating Income (Loss) $ 19     (2 )   30     15     (1 )
                                 
 

LIBERTY INTERACTIVE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (unaudited)

 
 

6/30/2012

12/31/2011

amounts in millions
ASSETS  
Current assets:
Cash and cash equivalents $ 790 847
Trade and other receivables, net 664 1,054
Inventory, net 1,096 1,071
Other current assets   87     148  
Total current assets   2,637     3,120  
 
Investments in available-for-sale securities and other cost investments 1,384 1,168
Investments in affiliates, accounted for using the equity method 1,213 1,135
 

Property and equipment, at cost

2,093 2,002
Accumulated depreciation   (925 )   (869 )
  1,168     1,133  
Intangible assets not subject to amortization:
Goodwill 5,985 5,978
Trademarks   2,525     2,518  
  8,510     8,496  
Intangible assets subject to amortization, net 2,045 2,209
Other assets, at cost, net of accumulated amortization   74     78  
Total assets $ 17,031     17,339  
 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable

$

482

599
Accrued liabilities 682 801
Current portion of debt 1,485 1,189
Deferred income tax liabilities 836 851
Other current liabilities   372     128  
Total current liabilities   3,857     3,568  
 
Long-term debt, including $2,548 million and $2,443 million measured at fair value 4,564 4,850
Deferred income tax liabilities 2,083 2,046
Other liabilities   218     248  
Total liabilities   10,722     10,712  
 
Equity:
Total stockholders' equity 6,177 6,493
Noncontrolling interests in equity of subsidiaries   132     134  
Total equity   6,309     6,627  
Commitments and contingencies          
Total liabilities and equity $ 17,031     17,339  
               
 

LIBERTY INTERACTIVE CORPORATION CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)

       
Three months ended Six months ended

6/30/2012

6/30/2011

6/30/2012

6/30/2011

amounts in millions
REVENUE AND GROSS PROFIT:
Net retail sales $ 2,365 2,245 4,679 4,404
Cost of sales (exclusive of depreciation shown separately below)   1,488     1,398     2,954     2,775  
Gross Profit   877     847     1,725     1,629  
 
OPERATING COSTS AND EXPENSES:
Operating 199 209 407 412
Selling, general and administrative, including stock-based compensation 241 202 480 419
Depreciation and amortization   147     148     290     297  
  587     559     1,177     1,128  
Operating income 290 288 548 501
 
OTHER INCOME (EXPENSE):
Interest expense (107 ) (107 ) (213 ) (221 )
Share of earnings (losses) of affiliates, net 35 37 46 57
Realized and unrealized gains (losses) on financial instruments, net (160 ) 89 (178 ) 30
Gains (losses) on dispositions, net 288 --- 288 --
Other, net   30     3     33     21  
  86     22     (24 )   (113 )
Earnings (loss) from continuing operations before income taxes 376 310 524 388
Income tax (expense) benefit   (127 )   (115 )   (170 )   (130 )
Earnings (loss) from continuing operations 249 195 354 258
Earnings (loss) from discontinued operations, net of taxes   ---     74     ---     410  
Net earnings (loss) 249 269 354 668
Less net earnings (loss) attributable to the noncontrolling interests   15     12     29     22  
Net earnings (loss) attributable to Liberty Interactive Corporation shareholders $ 234     257     325     646  
Net earnings (loss) attributable to Liberty Interactive Corporation shareholders:
Liberty Capital common stock NA 8 NA 301
Liberty Starz common stock NA 67 NA 119
Liberty Interactive common stock $ 234     182     325     226  
$ 234     257     325     646  
                 
 

LIBERTY INTERACTIVE CORPORATION CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)

 
Six months ended

6/30/2012

 

6/30/2011

amounts in millions
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 354 668
Adjustments to reconcile net earnings to net cash provided by operating activities:
(Earnings) loss from discontinued operations --- (410 )
Depreciation and amortization 290 297
Stock-based compensation 35 30
Share of (earnings) losses of affiliates, net (46 ) (57 )
Realized and unrealized (gains) losses on financial instruments, net 178 (30 )
(Gains) losses on disposition of assets, net (288 ) --
Deferred income tax expense (benefit) 26 (44 )
Other, net (14 ) (50 )
Changes in operating assets and liabilities
Current and other assets 357 230
Payables and other liabilities   (162 )   (302 )
Net cash provided (used) by operating activities   730     332  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash proceeds from dispositions 348 --
Investment in and loans to cost and equity investees (108 ) (7 )
Capital expended for property and equipment (151 ) (103 )
Net sales (purchases) of short term investments 46 (48 )
Other investing activities, net   (40 )   1  
Net cash provided (used) by investing activities   95     (157 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of debt 666 192
Repayments of debt (873 ) (393 )
Repurchases of Liberty Interactive common stock (637 ) ---
Other financing activities, net   (26 )   (42 )
Net cash provided (used) by financing activities   (870 )   (243 )
Effect of foreign currency exchange rates on cash (12 ) 11
Net cash provided (used) by discontinued operations:
Cash provided (used) by operating activities --- 294
Cash provided (used) by investing activities --- 144
Cash provided (used) by financing activities --- (146 )
Change in available cash held by discontinued operations   ---     (276 )
Net cash provided (used) by discontinued operations   ---     16  
 
Net increase (decrease) in cash and cash equivalents (57 ) (41 )
Cash and cash equivalents at beginning of period   847     1,353  
Cash and cash equivalents at end of period   $ 790     1,312  
 




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