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Liberty Broadband Reports First Quarter 2021 Financial Results

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Liberty Broadband Corporation (“Liberty Broadband”) (Nasdaq: LBRDA, LBRDK, LBRDP) today reported first quarter 2021 results. Headlines include (1):

  • Fair value of Charter investment was $36 billion as of March 31st
  • From March 1st through April 30th, Liberty Broadband received $978 million of proceeds from sale of 1.6 million Charter shares to Charter
    • Maintained fully diluted equity interest in Charter of 26% (2)
  • From February 1st through April 30th, Liberty Broadband repurchased 6.1 million LBRDK shares at an average price per share of $152.30 and total cash consideration of $923 million
  • In the first quarter, GCI (3) grew revenue 5% to $242 million, generated operating income of $29 million and increased adjusted OIBDA(4) 11% to $96 million
  • GCI received $175 million of Rural Healthcare proceeds and repaid $180 million under its revolving credit facility

“This was our first quarter participating in Charter’s buyback, which provided almost $1 billion in proceeds through April. We used all of these funds to repurchase Liberty Broadband shares at a meaningful net asset discount, generating substantial value for our shareholders,” said Greg Maffei, Liberty Broadband President and CEO. “Despite fears of a pull forward in broadband demand during the pandemic, Charter achieved strong data subscriber growth and turned in a great first quarter.”

Share Repurchases

From February 1, 2021 through April 30, 2021, Liberty Broadband repurchased approximately 6.1 million Series C Liberty Broadband common stock (Nasdaq: LBRDK) at an average cost per share of $152.30 for total cash consideration of $923 million. The total remaining repurchase authorization for Liberty Broadband as of May 1, 2021 is approximately $1.7 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 reduce Liberty Broadband’s percentage equity interest to 26% on a fully diluted basis. Such sales are executed by Liberty Broadband monthly based on Charter’s repurchase activity in the month prior.

In the first quarter, Liberty Broadband sold 834,576 shares of Charter Class A common stock to Charter for total proceeds of approximately $518 million. In April 2021, Liberty Broadband sold 735,209 shares of Charter Class A common stock to Charter for total proceeds of approximately $460 million.

Balance Sheet

The following presentation is provided to separately identify cash and liquid investments, debt and public holdings of Liberty Broadband as of December 31, 2020 and March 31, 2021.

(amounts in millions)

12/31/2020

3/31/2021

Cash and Cash Equivalents:

 

 

 

 

GCI Holdings

$

32

 

$

51

 

Corporate and Other

 

1,386

 

 

1,126

 

Total Liberty Broadband Consolidated Cash

$

1,418

 

$

1,177

 

 

 

 

 

 

Fair Value of Public Holdings in Charter(a)

$

39,340

 

$

36,177

 

 

 

 

 

 

Debt:

 

 

 

 

Senior Notes(b)

$

600

 

$

600

 

Senior Credit Facility

 

704

 

 

523

 

Finance Leases and Other(c)

 

105

 

 

103

 

Total GCI Holdings Debt

$

1,409

 

$

1,226

 

GCI Leverage(d)

 

4.0x

 

3.4x

 

 

 

 

 

Charter Margin Loan

$

2,000

 

$

2,000

 

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

 

$

3,415

 

 

 

 

 

 

Total Liberty Broadband Debt

$

4,824

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About LBRDA

liberty broadband corporation, a cable operator, provides video, internet, and voice services to residential, and small and medium business customers in the united states. the company operates through skyhook and charter segments. the skyhook segment offers precision location solution, a location determination service for mobile device makers, wireless carriers, and asset tracking platforms to understand the precise geographic location and movement of mobile devices, as well as for enhancing the location determination capabilities of a hybrid location system. it also provides geospatial insights, a location intelligence and data insights service for enterprises, research and consulting firms, financial institutions, and advertisers to understand, measure, and optimize the performance of businesses; benchmark performance against competitors; enhance customer experience; advertise to, and target existing and prospective customers; and measure the efficacy of advertising campaigns in driv