Liberty Global Reports Preliminary Fiscal 2012 Results

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Updated

Liberty Global Reports Preliminary Fiscal 2012 Results

Record Subscriber Additions for Q4 and Full-Year 2012

Achieved 2012 Guidance Targets


Repurchased Approximately $1 Billion of Equity in 2012

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Liberty Global, Inc. ("Liberty Global," "LGI," or the "Company") (NASDAQ: LBTYA, LBTYB and LBTYK), today announces its preliminary unaudited consolidated financial and operating results for the year and three months ("Q4") ended December 31, 2012. We expect to publish our final consolidated results for 2012 on February 13, 2013 after market close and conduct our 2012 earnings call on February 14, 2013. In addition, Liberty Global announced today that it had signed an agreement to acquire Virgin Media. The details regarding this acquisition are described in a separate press release issued today by Liberty Global and Virgin Media.

Highlights for the full year and Q4 compared to the same period for 2011 (unless noted), include:1

  • Organic RGU2 additions increased 34% to 1.6 million in 2012, including 465,000 in Q4

  • Revenue of $10.31 billion, including $2.73 billion in Q4

    • 2012 rebased3 revenue growth of 5.8%, including 6.5% in Q4

  • Operating Cash Flow ("OCF")4 of $4.87 billion in 2012, including $1.25 billion in Q4

    • 2012 rebased OCF growth of 4.1%, including 5.6% in Q4

    • Excluding VTR Wireless,5 2012 rebased OCF growth was 5.2% and Q4 rebased OCF growth was 6.5%

  • Operating income increased 9% to $1.98 billion for 2012 and 23% to $501 million for Q4

  • Capital expenditures as a percentage of revenue of 16% for Q4 and 18% for 2012, both reflecting significant declines over the corresponding prior year periods

  • 2012 Adjusted Free Cash Flow ("Adjusted FCF")6 of $1.03 billion, including $594 million in Q4

    • Reflects year-over-year growth of 31% for 2012 and 62% for Q4

Key Subscriber Statistics7

Organic Net Adds

Q4 2012

FY 2012

in thousands

Video

(27.8

)

(286.5

)

Internet

249.1

909.1

Telephony

243.8

971.4

Total

465.1

1,594.0

Totals

FY 2011

FY 2012

Total RGUs:

in thousands

Video

18,405.5

18,308.5

Internet

8,159.3

9,244.3

Telephony8

6,225.3

7,281.7

Total

32,790.1

34,834.5

Homes Passed

33,262.1

34,193.5

2-Way Homes Passed

31,023.0

32,190.4

Customer Relationships

19,538.2

19,788.2

Summary of Debt, Capital Lease Obligations and Cash and Cash Equivalents

The following table9 details the U.S. dollar equivalent balances of our third-party consolidated debt, capital lease obligations and cash and cash equivalents at December 31, 2012:

Capital

Debt and

Cash

Lease

Capital Lease

and Cash

Debt10

Obligations

Obligations

Equivalents

in millions

LGI and its non-operating subsidiaries

$

1,243.4

$

13.6

$

1,257.0

$

701.3

UPC Holding (excluding VTR Group)

12,627.5

32.9

12,660.4

41.6

Unitymedia KabelBW

6,841.6

937.1

7,778.7

26.7

Telenet

4,666.2

405.1

5,071.3

1,196.0

Liberty Puerto Rico

663.9

0.6

664.5

2.4

VTR Group11

91.9

0.3

92.2

44.3

Other operating subsidiaries

0.4

—

0.4

26.6

Total LGI

$

26,134.9

$

1,389.6

$

27,524.5

2,038.9

Restricted cash for LGI Telenet Tender released on 2/1/1312

1,069.0

Adjusted Cash Position

3,107.9

Unused Borrowing Capacity13

2,237.5

Total Consolidated Liquidity

$

5,345.4

Summary of Consolidated Liquidity and Leverage Ratios

The following table highlights our consolidated leverage ratios14 at December 31, 2012:

Gross

Net

Consolidated Leverage Ratios

5.5x

4.9x

Adjusted Consolidated Leverage Ratios

5.3x

4.6x

Operating Cash Flow Reconciliation

Three months ended

December 31,

Year ended

December 31,

2012

2011

2012

2011

in millions

Total segment operating cash flow from continuing operations

$

1,254.4

$

1,099.5

$

4,869.6

$

4,482.3

Stock-based compensation expense

(21.9

)

(25.6

)

(112.4

)

(131.3

)

Depreciation and amortization

(681.4

)

(618.7

)

(2,691.1

)

(2,457.0

)

Impairment, restructuring and other operating items, net

(50.4

)

(47.1

)

(83.0

)

(75.6

)

Operating income

$

500.7

$

408.1

$

1,983.1

$

1,818.4

Free Cash Flow and Adjusted Free Cash Flow Reconciliation

Three months ended

December 31,

Year ended

December 31,

2012

2011

2012

2011

in millions

Net cash provided by operating activities of continuing operations

$

1,033.5

$

837.6

$

2,858.5

$

2,562.7

Excess tax benefits from stock-based compensation15

3.5

4.4

7.2

37.7

Cash payments for direct acquisition costs16

14.3

2.6

33.8

19.6

Capital expenditures

(432.9

)

(511.3

)

(1,883.6

)

(1,927.0

)

Principal payments on vendor financing obligations

(44.8

)

(6.6

)

(104.7

)

(10.0

)

Principal payments on certain capital leases

(8.1

)

(3.2

)

(17.5

)

(11.4

)

FCF

$

565.5

$

323.5

$

893.7

$

671.6

FCF

$

565.5

$

323.5

$

893.7

$

671.6

Payments associated with Old Unitymedia's pre-acquisition capital structure17

—

—

—

12.9

FCF deficit of VTR Wireless

28.3

44.1

139.8

106.5

Adjusted FCF

$

593.8

$

367.6

$

1,033.5

$

791.0

Capital Expenditures

The table below highlights the categories of our property and equipment additions for the indicated periods and reconciles those additions to the capital expenditures that we present in our consolidated statements of cash flows:

Three months ended

December 31,

Year ended

December 31,

2012

2011

2012

2011

in millions, except % amounts

Property and equipment additions

$

638.4

$

674.1

$

2,274.1

$

2,131.6

Assets acquired under capital-related vendor financing arrangements

(94.2

)

(42.7

)

(246.5

)

(101.4

)

Assets acquired under capital leases

(17.6

)

(11.5

)

(63.1

)

(38.2

)

Changes in current liabilities related to capital expenditures

(93.7

)

(108.6

)

(80.9

)

(65.0

)

Total capital expenditures18

$

432.9

$

511.3

$

1,883.6

$

1,927.0

Property and equipment additions as % of revenue

23.4

%

28.0

%

22.1

%

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