[October 30, 2014] |
|
Starz Reports Third Quarter 2014 Financial Results
ENGLEWOOD, Colo. --(Business Wire)--
Starz (NASDAQ: STRZA, STRZB) today reported third quarter 2014 results.
Highlights include (1):
-
Starz Networks reported revenue of $327.2 million, up 2%, Adjusted
OIBDA(2) of $109.9 million, up 3% and operating income of
$99.2 million, up 4%
-
Reported consolidated revenue of $408.2 million, Adjusted OIBDA(2)
of $109.8 million, operating income of $97.3 million and fully diluted
earnings per share of $0.51
-
Increased STARZ subscriptions by 500,000 since September 30, 2013 to a
new high of 22.5 million
-
Repurchased $93.6 million or 3.0 million shares from August 1, 2014 to
October 31, 2014; since trading began on January 14, 2013, Starz has
repurchased 16.7% of its outstanding shares
-
STARZ PLAY SVOD service to be launched in select emerging
international markets
-
STARZ Original series "Outlander" completed first half of book one to
strong and growing viewership
-
STARZ critically-acclaimed Original series "Survivor's Remorse"
renewed for a second season
-
STARZ PLAY launched on Xbox One, remains only U.S. premium pay TV
service on gaming/TV platform; ENCORE PLAY/MOVIEPLEX PLAY expected to
launch on Xbox One by year-end 2014
"Our business continued to perform nicely in the third quarter as Starz
Networks reported solid revenue, earnings growth and we reached a new
high in STARZ subscriptions of 22.5 million," said Starz CEO, Chris
Albrecht. "We are pleased with the traction of our original programs.
'Outlander' had a strong debut, viewership for 'Power' finished up with
great momentum and grew its viewership throughout the first season, and
'Survivor's Remorse' continues to receive significant critical acclaim.
We are very enthusiastic about our 2015 slate of original programming,
which is the deepest to-date and launches with the second season of
'Black Sails' in January. As demand for our content increases worldwide,
we are providing subscribers multiple options. Recently, we confirmed
details of a new partnership to offer STARZ PLAY as a direct-to-consumer
streaming SVOD service in select international markets and featuring
STARZ Original series."
Starz Networks (Q3 2014 as compared
to Q3 2013)
Revenue in Q3 2014 increased 2% to $327.2 million and Adjusted OIBDA(2)
increased 3% to $109.9 million, compared to Q3 2013. Revenue increased
primarily as a result of rate increases from various distributors.
Adjusted OIBDA increased due to the increase in revenue and lower
programming costs partially offset by higher original series related
advertising costs. Operating income increased 4% to $99.2 million. Cash
paid for investment in films and television programs increased $14.4
million to $57.5 million due to a greater number of original series in
production.
Starz Distribution (Q3 2014 as
compared to Q3 2013)
Revenue decreased $44.0 million to $73.5 million in large part as a
result of no significant new releases from The Weinstein Company or of
any STARZ Original series. Adjusted OIBDA(2) decreased $6.7
million to $0.6 million primarily as a result of the lower revenue
partially offset by a corresponding decrease in production and
acquisition costs. Operating income decreased $6.6 million to a loss of
$0.4 million. Cash paid for investment in films and television programs
decreased $35.3 million to $29.4 million due to timing of payments for
previously released Weinstein titles.
Share Repurchases
From August 1, 2014 through October 31, 2014, 3.0 million shares of
Series A common stock (NASDAQ: STRZA) were purchased at an average cost
per share of $31.04 for total cash consideration of $93.6 million. Since
trading began on January 14, 2013, Starz has repurchased 20.3 million
shares at an average cost per share of $27.24 for aggregate cash
consideration of $552.7 million. These repurchases represent 16.7% of
the shares outstanding as of January 14, 2013. Starz currently has
$247.3 million remaining under its share repurchase authorization. Under
the share repurchase program, Starz may acquire its common stock, from
time to time through open market transactions and privately negotiated
transactions.
FOOTNOTES
(1)
|
|
|
Starz CEO, Christopher Albrecht, will discuss these highlights and
other matters during the Starz earnings conference call which will
begin at 1:00 p.m. (ET) on October 30, 2014. For information
regarding how to access the call, please see "Important Notice"
later in this document.
|
(2)
|
|
|
For a definition of Adjusted OIBDA and applicable reconciliations
see Non-GAAP Financial Measures and Schedule 1 below.
|
|
|
|
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NOTES
-
Unless otherwise noted, the foregoing discussion compares financial
information for the three months ended September 30, 2014 to the same
period in 2013.
SUPPLEMENTAL INFORMATION
As a supplement to Starz's condensed consolidated statements of
operations, included in its Form 10-Q, the following is a presentation
of quarterly financial information and operating metrics for the periods
indicated.
Please see the definition of Adjusted OIBDA below and a discussion of
why management believes the presentation of Adjusted OIBDA provides
useful information for investors. Schedule 1 to this press release
provides a reconciliation of Adjusted OIBDA to operating income for the
same periods, as determined under GAAP.
QUARTERLY SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in millions, except per share data)
|
|
3Q13
|
|
4Q13
|
|
1Q14
|
|
2Q14
|
|
3Q14
|
|
Starz Networks
|
|
$ 319.8
|
|
$ 322.0
|
|
$ 324.0
|
|
$ 328.2
|
|
$ 327.2
|
|
Starz Distribution (1)
|
|
117.5
|
|
83.8
|
|
87.3
|
|
75.1
|
|
73.5
|
|
Starz Animation
|
|
8.7
|
|
9.7
|
|
8.9
|
|
7.2
|
|
7.9
|
|
Eliminations
|
|
-
|
|
(0.8)
|
|
(0.2)
|
|
(0.4)
|
|
(0.4)
|
|
Revenue
|
|
$ 446.0
|
|
$ 414.7
|
|
$ 420.0
|
|
$ 410.1
|
|
$ 408.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Starz Networks
|
|
$ 106.5
|
|
$ 118.8
|
|
$ 114.0
|
|
$ 121.8
|
|
$ 109.9
|
|
Starz Distribution
|
|
7.3
|
|
(0.5)
|
|
12.7
|
|
(3.8)
|
|
0.6
|
|
Starz Animation
|
|
(0.5)
|
|
(0.7)
|
|
(0.6)
|
|
(0.8)
|
|
(0.7)
|
|
Eliminations
|
|
0.3
|
|
(0.4)
|
|
0.1
|
|
0.2
|
|
-
|
|
Adjusted OIBDA
|
|
$ 113.6
|
|
$ 117.2
|
|
$ 126.2
|
|
$ 117.4
|
|
$ 109.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$ 100.7
|
|
$ 103.4
|
|
$ 113.5
|
|
$ 104.8
|
|
$ 97.3
|
|
Net income
|
|
$ 53.1
|
|
$ 72.5
|
|
$ 66.8
|
|
$ 69.0
|
|
$ 55.8
|
|
Earnings per share (diluted)
|
|
$ 0.43
|
|
$ 0.62
|
|
$ 0.56
|
|
$ 0.62
|
|
$ 0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Starz Networks
|
|
$ 43.1
|
|
$ 31.0
|
|
$ 55.5
|
|
$ 60.1
|
|
$ 57.5
|
|
Starz Distribution
|
|
64.7
|
|
62.0
|
|
24.0
|
|
40.9
|
|
29.4
|
|
Total IFT (2)
|
|
$ 107.8
|
|
$ 93.0
|
|
$ 79.5
|
|
$ 101.0
|
|
$ 86.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription units - STARZ
|
|
22.0
|
|
22.2
|
|
21.9
|
|
22.0
|
|
22.5
|
|
Subscription units - ENCORE
|
|
35.0
|
|
34.9
|
|
34.4
|
|
33.9
|
|
33.7
|
|
Total subscription units
|
|
57.0
|
|
57.1
|
|
56.3
|
|
55.9
|
|
56.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes the following home video net sales
|
|
$ 65.7
|
|
54.7
|
|
56.7
|
|
38.1
|
|
$ 43.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Cash paid for investment in films and television
programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND DEBT
The following presentation is provided to separately identify cash and
debt information.
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in millions)
|
|
9/30/13
|
|
12/31/13
|
|
3/31/14
|
|
6/30/14
|
|
9/30/14
|
|
Cash
|
|
$ 30.6
|
|
$ 25.7
|
|
$ 17.9
|
|
$ 12.9
|
|
$ 45.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt:
|
|
|
|
|
|
|
|
|
|
|
|
Revolving credit facility
|
|
$ 309.5
|
|
$ 306.5
|
|
$ 326.5
|
|
$ 365.0
|
|
$ 442.0
|
|
5% senior notes
|
|
678.1
|
|
678.0
|
|
677.9
|
|
677.8
|
|
677.6
|
|
Transponder capital lease
|
|
31.7
|
|
30.6
|
|
29.6
|
|
28.5
|
|
27.4
|
|
Building capital lease
|
|
44.5
|
|
44.3
|
|
44.1
|
|
44.0
|
|
43.9
|
|
Total debt
|
|
$ 1,063.8
|
|
$ 1,059.4
|
|
$ 1,078.1
|
|
$ 1,115.3
|
|
$ 1,190.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL MEASURES
This press release includes a presentation of Adjusted OIBDA, which is a
non-GAAP financial measure, together with a reconciliation to operating
income, as determined under GAAP. We define Adjusted OIBDA as revenue
less programming costs, production and acquisition costs, home video
cost of sales, operating expenses, and selling, general and
administrative expenses. Our chief operating decision maker uses this
measure of performance in conjunction with other measures to evaluate
our operating segments' performance and make decisions about allocating
resources among our operating segments. We believe that Adjusted OIBDA
is an important indicator of the operational strength and performance of
our operating segments, including each operating segment's ability to
assist in servicing our debt and to fund investments in films and
television programs. In addition, this measure allows management to view
operating results and perform analytical comparisons and benchmarking
between operating segments and identify strategies to improve
performance. This measure of performance excludes stock compensation and
depreciation and amortization that are included in the measurement of
operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be
considered in addition to, but not as a substitute for, operating
income, income before income taxes, net income, net cash provided by
operating activities and other measures of financial performance
prepared in accordance with GAAP. Please see Schedule 1 below for the
applicable reconciliation.
SCHEDULE 1
The following table provides a reconciliation of Adjusted OIBDA for
Starz Consolidated, Starz Networks and Starz Distribution to operating
income calculated in accordance with GAAP for the three months ended
September 30, 2013, December 31, 2013, March 31, 2014, June 30, 2014 and
September 30, 2014, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
Starz Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in millions)
|
|
3Q13
|
|
4Q13
|
|
1Q14
|
|
2Q14
|
|
3Q14
|
|
Adjusted OIBDA
|
|
$ 113.6
|
|
$ 117.2
|
|
$ 126.2
|
|
$ 117.4
|
|
$ 109.8
|
|
Stock compensation
|
|
(8.8)
|
|
(9.3)
|
|
(7.8)
|
|
(7.5)
|
|
(7.6)
|
|
Depreciation and amortization
|
|
(4.1)
|
|
(4.5)
|
|
(4.9)
|
|
(5.1)
|
|
(4.9)
|
|
Operating income
|
|
$ 100.7
|
|
$ 103.4
|
|
$ 113.5
|
|
$ 104.8
|
|
$ 97.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Starz Networks
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in millions)
|
|
3Q13
|
|
4Q13
|
|
1Q14
|
|
2Q14
|
|
3Q14
|
|
Adjusted OIBDA
|
|
$ 106.5
|
|
$ 118.8
|
|
$ 114.0
|
|
$ 121.8
|
|
$ 109.9
|
|
Stock compensation
|
|
(8.3)
|
|
(8.6)
|
|
(6.8)
|
|
(6.8)
|
|
(6.8)
|
|
Depreciation and amortization
|
|
(3.0)
|
|
(3.4)
|
|
(3.9)
|
|
(3.8)
|
|
(3.9)
|
|
Operating income
|
|
$ 95.2
|
|
$ 106.8
|
|
$ 103.3
|
|
$ 111.2
|
|
$ 99.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Starz Distribution
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in millions)
|
|
3Q13
|
|
4Q13
|
|
1Q14
|
|
2Q14
|
|
3Q14
|
|
Adjusted OIBDA
|
|
$ 7.3
|
|
$ (0.5)
|
|
$ 12.7
|
|
$ (3.8)
|
|
$ 0.6
|
|
Stock compensation
|
|
(0.5)
|
|
(0.5)
|
|
(0.5)
|
|
(0.5)
|
|
(0.5)
|
|
Depreciation and amortization
|
|
(0.7)
|
|
(0.7)
|
|
(0.6)
|
|
(0.9)
|
|
(0.6)
|
|
Operating income
|
|
$ 6.1
|
|
$ (1.7)
|
|
$ 11.6
|
|
$ (5.2)
|
|
$ (0.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Starz Consolidated Balance Sheets (Amounts
in millions, except share and per share amounts) (Unaudited)
|
|
|
|
|
|
|
|
September 30, 2014
|
|
December 31, 2013
|
Assets
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
45.6
|
|
|
$
|
25.7
|
|
Restricted cash
|
|
-
|
|
|
30.1
|
|
Trade accounts receivable, net of allowances of $29.5 and $32.8
|
|
236.7
|
|
|
247.1
|
|
Program rights, net
|
|
316.6
|
|
|
271.8
|
|
Deferred income taxes
|
|
0.5
|
|
|
0.5
|
|
Other current assets
|
|
43.4
|
|
|
63.8
|
|
Total current assets
|
|
642.8
|
|
|
639.0
|
|
Program rights
|
|
322.8
|
|
|
333.2
|
|
Investment in films and television programs, net
|
|
218.8
|
|
|
194.6
|
|
Property and equipment, net of accumulated depreciation of $119.3
and $106.4
|
|
88.6
|
|
|
95.7
|
|
Deferred income taxes
|
|
33.6
|
|
|
18.5
|
|
Goodwill
|
|
131.8
|
|
|
131.8
|
|
Other assets, net
|
|
61.5
|
|
|
37.2
|
|
Total assets
|
|
$
|
1,499.9
|
|
|
$
|
1,450.0
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Current portion of debt
|
|
$
|
5.2
|
|
|
$
|
4.9
|
|
Trade accounts payable
|
|
5.6
|
|
|
7.3
|
|
Accrued liabilities
|
|
244.7
|
|
|
297.8
|
|
Deferred revenue
|
|
4.2
|
|
|
16.6
|
|
Total current liabilities
|
|
259.7
|
|
|
326.6
|
|
Debt
|
|
1,185.7
|
|
|
1,054.5
|
|
Other liabilities
|
|
8.0
|
|
|
14.2
|
|
Total liabilities
|
|
1,453.4
|
|
|
1,395.3
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Preferred stock, $.01 par value. Authorized 50,000,000 shares; no
shares issued
|
|
-
|
|
|
-
|
|
Series A common stock, $.01 par value. Authorized 2,000,000,000
shares; issued and outstanding 94,504,585 and 101,130,964
shares at September 30, 2014 and December 31, 2013,
respectively
|
|
0.9
|
|
|
1.0
|
|
Series B common stock, $.01 par value. Authorized 75,000,000
shares; issued and outstanding 9,872,724 and 9,875,737
shares at September 30, 2014 and December 31, 2013,
respectively
|
|
0.1
|
|
|
0.1
|
|
Additional paid-in capital
|
|
111.0
|
|
|
310.6
|
|
Accumulated other comprehensive loss, net of taxes
|
|
(4.4
|
)
|
|
(4.3
|
)
|
Accumulated deficit
|
|
(54.2
|
)
|
|
(245.5
|
)
|
Total stockholders' equity
|
|
53.4
|
|
|
61.9
|
|
Noncontrolling interests in subsidiaries
|
|
(6.9
|
)
|
|
(7.2
|
)
|
Total equity
|
|
46.5
|
|
|
54.7
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
1,499.9
|
|
|
$
|
1,450.0
|
|
|
|
|
|
|
|
|
|
|
Starz Consolidated Statements of Operations (Amounts
in millions, except per share amounts) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming networks and other services
|
|
$
|
364.8
|
|
|
|
|
$
|
380.3
|
|
|
|
|
$
|
1,100.1
|
|
|
|
|
$
|
1,120.9
|
|
|
Home video net sales
|
|
43.4
|
|
|
|
|
65.7
|
|
|
|
|
138.2
|
|
|
|
|
241.9
|
|
|
Total revenue
|
|
408.2
|
|
|
|
|
446.0
|
|
|
|
|
1,238.3
|
|
|
|
|
1,362.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Programming (including amortization)
|
|
155.5
|
|
|
|
|
166.1
|
|
|
|
|
470.1
|
|
|
|
|
477.4
|
|
|
Production and acquisition (including amortization)
|
|
36.0
|
|
|
|
|
67.9
|
|
|
|
|
126.8
|
|
|
|
|
221.0
|
|
|
Home video cost of sales
|
|
18.9
|
|
|
|
|
21.4
|
|
|
|
|
41.6
|
|
|
|
|
51.6
|
|
|
Operating
|
|
13.6
|
|
|
|
|
13.8
|
|
|
|
|
40.2
|
|
|
|
|
38.9
|
|
|
Selling, general and administrative
|
|
74.4
|
|
|
|
|
63.2
|
|
|
|
|
206.2
|
|
|
|
|
214.2
|
|
|
Stock compensation
|
|
7.6
|
|
|
|
|
8.8
|
|
|
|
|
22.9
|
|
|
|
|
25.1
|
|
|
Depreciation and amortization
|
|
4.9
|
|
|
|
|
4.1
|
|
|
|
|
14.9
|
|
|
|
|
12.9
|
|
|
Total costs and expenses
|
|
310.9
|
|
|
|
|
345.3
|
|
|
|
|
922.7
|
|
|
|
|
1,041.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
97.3
|
|
|
|
|
100.7
|
|
|
|
|
315.6
|
|
|
|
|
321.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net of amounts capitalized
|
|
(11.4
|
)
|
|
|
|
(11.6
|
)
|
|
|
|
(34.7
|
)
|
|
|
|
(33.2
|
)
|
|
Other income (expense), net
|
|
(1.5
|
)
|
|
|
|
0.2
|
|
|
|
|
10.0
|
|
|
|
|
(1.8
|
)
|
|
Income before income taxes
|
|
84.4
|
|
|
|
|
89.3
|
|
|
|
|
290.9
|
|
|
|
|
286.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
(28.6
|
)
|
|
|
|
(36.2
|
)
|
|
|
|
(99.3
|
)
|
|
|
|
(109.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
55.8
|
|
|
|
|
53.1
|
|
|
|
|
191.6
|
|
|
|
|
177.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (income) attributable to noncontrolling interests
|
|
0.5
|
|
|
|
|
(0.9
|
)
|
|
|
|
(0.3
|
)
|
|
|
|
(3.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to stockholders
|
|
$
|
56.3
|
|
|
|
|
$
|
52.2
|
|
|
|
|
$
|
191.3
|
|
|
|
|
$
|
174.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common share
|
|
$
|
0.54
|
|
|
|
|
$
|
0.46
|
|
|
|
|
$
|
1.79
|
|
|
|
|
$
|
1.48
|
|
|
Diluted net income per common share
|
|
$
|
0.51
|
|
|
|
|
$
|
0.43
|
|
|
|
|
$
|
1.69
|
|
|
|
|
$
|
1.42
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
104.7
|
|
|
|
|
114.6
|
|
|
|
|
106.6
|
|
|
|
|
117.6
|
|
|
Diluted
|
|
111.1
|
|
|
|
|
120.5
|
|
|
|
|
113.1
|
|
|
|
|
122.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Starz Consolidated Statements of Cash Flows (Amounts
in millions) (Unaudited)
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2014
|
|
2013
|
Operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
191.6
|
|
|
$
|
177.3
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
14.9
|
|
|
12.9
|
|
Amortization of program rights
|
|
438.4
|
|
|
442.8
|
|
Program rights payments
|
|
(348.0
|
)
|
|
(323.2
|
)
|
Amortization of investment in films and television programs
|
|
94.7
|
|
|
172.9
|
|
Investment in films and television programs
|
|
(267.4
|
)
|
|
(209.4
|
)
|
Stock compensation
|
|
22.9
|
|
|
25.1
|
|
Payments of long term incentive plan
|
|
-
|
|
|
(3.2
|
)
|
Deferred income taxes
|
|
(15.1
|
)
|
|
2.8
|
|
Other non-operating and non-cash items
|
|
(8.0
|
)
|
|
9.7
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Current and other assets
|
|
32.5
|
|
|
(67.4
|
)
|
Due to affiliate
|
|
-
|
|
|
(39.5
|
)
|
Payables and other liabilities
|
|
(49.3
|
)
|
|
(10.8
|
)
|
Net cash provided by operating activities
|
|
107.2
|
|
|
190.0
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
(5.9
|
)
|
|
(6.2
|
)
|
Cash received from equity investee
|
|
10.7
|
|
|
-
|
|
Net cash provided by (used in) investing activities
|
|
4.8
|
|
|
(6.2
|
)
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
Borrowings of debt
|
|
366.5
|
|
|
1,081.0
|
|
Payments of debt
|
|
(234.6
|
)
|
|
(601.5
|
)
|
Debt issuance costs
|
|
-
|
|
|
(2.3
|
)
|
Exercise of stock options
|
|
4.5
|
|
|
-
|
|
Minimum withholding of taxes related to stock compensation
|
|
(10.9
|
)
|
|
(3.0
|
)
|
Excess tax benefit from stock compensation
|
|
9.0
|
|
|
2.1
|
|
Repurchases of common stock
|
|
(226.6
|
)
|
|
(179.2
|
)
|
Distributions to Old LMC
|
|
-
|
|
|
(1,200.0
|
)
|
Net cash used in financing activities
|
|
(92.1
|
)
|
|
(902.9
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
-
|
|
|
(0.1
|
)
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
19.9
|
|
|
(719.2
|
)
|
Cash and cash equivalents:
|
|
|
|
|
|
|
Beginning of period
|
|
25.7
|
|
|
749.8
|
|
End of period
|
|
$
|
45.6
|
|
|
$
|
30.6
|
|
|
|
|
|
|
|
|
|
|
IMPORTANT NOTICE
-
Starz (NASDAQ: STRZA, STRZB) CEO, Chris Albrecht will discuss Starz's
financial performance, and may discuss future opportunities in a
conference call which will begin at 1:00 p.m. (ET) on October 30,
2014. The call can be accessed by dialing (888) 286-2317 or (719)
325-2252 with the passcode 7563559# at least 10 minutes prior to the
start time. Replays of the conference call can be accessed through
4:00 p.m. (ET) on November 7, 2014, by dialing (888) 203-1112 or (719)
457-0820 plus the passcode 7563559#. The call will also be broadcast
live via the Internet and archived on our website. To access the
webcast go to http://ir.starz.com/events.cfm.
Links to this press release will also be available on the Starz
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, international expansion opportunities 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, market acceptance of
new products or services, the timely launch of our original
programming, the cooperation of our distributors in marketing our
services, competitive issues, regulatory matters affecting our
businesses, continued access to capital on terms acceptable to Starz,
changes in law and market conditions conducive to stock repurchases
and the ability to enter into transactions for international
expansion. These forward-looking statements speak only as of the date
of this press release, and Starz expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in
Starz'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 Starz, including the
most recent Forms 10-K and 10-Q, for additional information about
Starz and about the risks and uncertainties related to Starz's
business which may affect the statements made in this press release.
About Starz
Starz (NASDAQ: STRZA, STRZB) is a leading integrated global media and
entertainment company with operating units that provide premium
subscription video programming on domestic U.S. pay television channels
(Starz Networks), global content distribution (Starz Distribution) and
animated television and movie production (Starz Animation), www.starz.com.
Starz Networks is a leading provider of premium subscription video
programming through the flagship STARZ® and ENCORE®
pay TV networks which showcase premium original programming and movies
to U.S. multichannel video distributors, including cable operators,
satellite television providers, and telecommunications companies. As of
September 30, 2014, STARZ and ENCORE serve a combined 56.2 million
subscribers, including 22.5 million at STARZ, and 33.7 million at
ENCORE, making them the largest pair of premium flagship channels in the
U.S. STARZ® and ENCORE®, along with Starz
Networks' third network MOVIEPLEX®, air more than
1,000 movies monthly across 17 linear networks, complemented by On
Demand and authenticated online offerings through STARZ PLAY, ENCORE
PLAY, and MOVIEPLEX PLAY. Starz Distribution develops, produces and
acquires entertainment content, distributing it to consumers globally on
DVD, digital formats and traditional television. Starz Distribution's
home video, digital media and worldwide distribution business units
distribute original programming content produced by Starz, as well as
entertainment content for itself and third parties. Starz Animation
produces animated TV and movie content for studios, networks,
distributors and audiences worldwide.
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