Liberty Broadband (LBRDK) 12 Nov 182018 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the GCI Liberty 2018 Q3 Earnings Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded November 8. I would now like to turn the conference over to Courtnee Chun, Senior Vice President of Investor Relations. ahead. go Please

Thank you.

and of like call market forward-looking forward-looking and herein forward-looking includes or of by and Service statements expectations Litigation access may These will stock Liberty statements to The services, earnings Securities regarding those the Securities Reform would certain which release of include service, These Schedules remind that Act statements expressly This the system obligation repurchases, preliminary we cause new about Litigation everyone Administrative Healthcare statements involve other any matters and only the the statements non-GAAP measures, implied to within and regard to Act any including future in of risks historical differ call or undertaking. to Broadband speak including as forward-looking materially statement. financial forward-looking expressly opportunities, X or updates acceptance the of begin, also from any disseminate call and These availability on that is in conditions, to of market call, involve in Broadband's GCI relating herein is of change of reflect call that speak could made. certain is this available Liberty or statements forward-looking we and Private reflect On Universal any with change on found which not certain the Program, circumstances forward-looking business Liberty the any from issues, and today, circumstances These capital performance, Before statement any To or contained note strategies, to such within Private to through this statements GCI results continued any to of forward-looking implied statement Liberty there could including revisions and materially financial Liberty. updates events, Broadband. to disseminate and expressed or we actual uncertainties of differ such on any disclaims regulatory to Reform many disclaims meaning statement any product potential, in only XXXX, any the as by issues, or date launches, acquisition risks regulatory under conditions, Rural Company products without to Alaskan OIBDA. made. reconciliations, matters required X are recession, events, or with the XXXX expressed uncertainties revisions market actual cause or many and any GCI acceptable conditions, any statements, facts. to that contained obligation adjusted our terms competitive results there in to such such changes a limitation undertaking website. Liberty's in regard today's this the date meaning possible expatiations be which issued can press including definitions change or or change those statement discuss

the turn to CEO call like to GCI I'd Maffei. Greg Now, Liberty President and over

Pounds. the Carleton, and out all and Mark for CFO, CFO, myself, this us. you you Liberty Thank call GCI there speaking Today, you, have thank Courtnee joining afternoon we'll on GCI of Pete besides

Q&A answer questions well the follows, as Liberty able be Broadband GCI Liberty. we to will which about During session as

from of October at at GCI we the stock. So Liberty of share initiated million worth repurchased to and X quarter, GCI XX, starting we August that period over during Liberty, repurchase $XX

assuming at call Liberty, the share through the of look and the in of when the close, price was look is $XXX of discount Charter and to today's as the trading, Charter take on XX% that double-discount advantage it a to is look Charter. discount GCI you through We you Liberty And low where are doing full we Charter, this what Broadband about range.

we at prices. to consider it buying be these So GCI pretty Liberty attractive

GCI on migration strategy hear in this Pounds cost more itself, minute. and They on improving execute while new operating, continue quarter, Pete driving, to a their billing completed the they you'll of at Notably, region. synergies expanding in from their Alaska the system. and coverage Looking the during to

that, their up over a free in we'll to and why time businesses grow is are flow EBITDA and behind and them Liberty things Time the that, the optimistic network drive what intend the and operator. House They of detail. to financials come some likes in integration here. high-speed future Carleton but cash attractive Combine with they it over free cable able with to Longer this with that prices of it. Charter about reviewing of do and to attractive optimistic to success incremental remain quickly The beyond, the shrink, by turn in kicking all did some introduction and hear of discuss at me profiles expect to in we they further the Charter at wireless of we if declining story. for that believe Mark We the ownership itself from video flow to the to the and scale suspect CapEx stabilize in penetration I'd on. With to that above our is it. most cash price can we have Liberty very as that you latest we moves to opportunity CapEx it had. like have behind are Warner, very let continue continue term, few an and can to been quarter, ability thesis In exploit to play be Bright free more years, Charter, significant invest execute meaningfully relevant on Charter the data story, and extensive what we which XXXX equity Broadband our cash share with their growing Looking business. has leverage cost-efficiently is long-term attractive Charter flow story pure you is of an do like only down through the I call, service. start and less elements the commensurately. and levels is is to moving to investment Liberty GCI us conference the The listen

agreement exchangeable GCI at which end, the capital GCI. in notes. defined billion, X.Xx, as noted of of includes billion compared Liberty at $X.X its value close Thank around $XXX GCI cash margin allowable Liberty Liberty and million Charter quarter has equity of shares. Charter, a $X.X aforementioned GCI. had includes total which you, which is loan threshold GCI was in amount our quarter GCI $XXX in a credit of and billion exceeded LendingTree. of The of its the leverage XX-Q, of maximum interest tower including maximum consolidated interest of Greg. to in loan, X.XXx. billion, principal GCI's leverage its end, $X.X billion debt, $X.X million leverage with debentures billion at debt in today's $XX against Liberty margin obligations senior of includes securities At GCI and public the as million, Liberty $X.X Broadband $X a At cash leases Liberty terms had interest Broadband, as in the One outstanding point,

GCI's additional Currently, about at CFO, we business our all GCI's got given sufficient Pete I'll So corporate operations. Pounds, we With that, going fund are however, opportunities talk incurrence. to to restricted have on the resources debt we've Mr. forward. liquidity welcome

Thank you, Mark.

First, I'll start updates. with material three

First of healthcare. all, rural

of or to remedies. received we with no be As in for Wireline If been in funding obligations June year, obligations to Schedule business to our billing for rules XX, pro information, OIBDA would X to revenues, year of shown We in we restated found updated with similar the the prior this in pivot of approximately areas, of new quarter. our of areas all will adjusted programs. October ended Billing million our can decision and maintenance quarters decision rural Competition system are our The We quarter. $X letter investments but noted meeting XX, third funding the our earnings manner and XXXX a million funding quarter we financials our approximately urban income, to upgrade. may forma release future release. the XXXX In ends June adjust where conversion XX, on reliable. any left by XXXX. of impact FCC in our a the operating absence financials be the focus rural $XX the system press in This on have all year Bureau the narrow will available which the to release the completed press and reductions healthcare The continue this XXXX. pursue in we include disagree our this the that figures is per more stands, federal choice, reducing XX% from

encountered few to a issues work expected, through. fixed outstanding As few a there are that have issues we been and still

to in the moved we first and services. system approximately to our new result million economy. in on new not income from us from a certain hit customers Alaska There advance this we The arrears to and However, faster of will OIBDA that allow serve system bill took elected to better. bill bill was double the have efficiencies one-time bill $X adjusted generate in We customers. operating as a and revenue

increased to continue for week's at leading particular of recession. for which $XX Anchorage Governor with to a the development, Alaska this have rejection Slope. hear will see the offer We Proposition who business election exit Unemployment going and per further believe we been the was to current numbers oil of Oil tax or and And economy hampered election the in above would of prices for an that's X, improving. development. stable Dunleavy, North consistently regime barrel, have climate on development signs in are good the

to I I the quarter exit don't or expect in robust a results. recovery, Operating next do the recession us two. expect While

results QX will of QX be unless XXXX otherwise to comparing XXXX All comments my noted. on

system basis gains offset were impact operating declines data with the adjusted in a hit, one-time product. Excluding and OIBDA video forma on of by year-over-year our being flat voice the billing pro and income in

X% on XX%. benefits expect to billing revenues those were data their yet we to of a was upgrade as year-over-year plans. While Data by seen to system, our Consumer: up have quarters. Wireless we economic customers new coming in basis the our continued down begin the see not

customers of revenues gains our double-bill choice in bill a However, due bill to video first and decline Business to in the expenditures. Through by with due basis, from wireless to months year, primarily remain not primarily wireless CapEx: down million on Business: were improvements, were voice nine advertising the new political week's most to for in for and this in system. by $XXX X% to video gains Expenditures and spend XXXX. in data. roaming as we year-over-year capital We advance. the move declines offset was HFC arrears on invested of being in track fiber the and $XXX were billing in approximately million CapEx network the election. we improvements, wireless The

I'll the Greg. to back over Now, call hand

Thank Thank you, Mark. you, Pete.

As York. to New in listening, be holding a meeting we XX our be will annual reminder videos. those There investor will on November

you'd the on open use with and in appreciate floor like And questions. agenda, I'd link If to We like homepage. interest register to our see that, GCI operator, your for the Liberty. the continued please

James We'll Instructions] ahead. Evercore ISI. first go Please Ratcliffe with [Operator go to

I and for if one Hi. the for could. GCI Thanks for GCI Liberty, taking One question.

the reduction, front, that's RHC make GCI a reduction. to I On want understand, out Pete, price price straight the I sure just

essentially talked commentary, you narrowing in in So release your about off the the And line. million comes $X your EBITDA activities.

cost about and regarding up governing And come much improvement essentially, So is well? as further do Thanks. stock you If continue could narrowing if of how activities this there would to that, price EBITDA potential end anything options what's prospects, and given Liberty, Greg, out if you are the do GCI if talk if there that. just to return regime? buyback you capital

I'll first. Pete, go you let

Sure.

XXXX. the year first million that on during June services XX, already the those ended $XX we are So hit, provided

So change structure. the cost reduction in with a revenue anything doesn't

dollar is revenue from a dollar for it So to OIBDA there. dropping

any In our of terms there. focus, on have of any magnitude point of changes the don't we really comments narrowing this at

as apply to does price this year follow-up, the XXXX XXXX Just decrease to well? to

to general relative this some in at understand the Tina Pidgeon. we're counsel. point, work our I'm methodology GCI's best is. future that's the At and FCC's This similar actually effect doing years guess what addition is

Thank Great. you.

in James, I we a Great. little said, $XX as did over the million quarter.

But continue our would the same We capacity we have more capacity healthcare reduced the have next nonetheless, we GCI Obviously, kind I and still expect the have quarters. corporate. see free reduction. in that we rural the generate, of somewhat with flow the with we're flexibility cash and corporate pace at cash to flow have cash by in the will over several available

Thank you. Great.

you. Thank

next with Buckingham Our will from Matthew go come ahead. Research. question Harrigan Please

from of Thanks. a rationale seven clearly look guess, investor echoing any persona feel RSN in morning, operator wayside when persona, how market Charter deal own days? pretty companies there or content your all at all like cable to these these about valuations do since Greg, is much a these I the persona to selective executive your the your you the a Is this executive that for scale particular you Thanks. by days? books, pivoting

Thank you, Matthew.

with. history assets, are RSNs we that complicated long think at I have a Liberty something had

we for set we three RSNs a the ended DirectTV achieved and AT&T. series be with are can underlying substantial potentially I and own teams, content we As that if of with very contract to think, helped We're to you baseball. eventually a But with owned then went involved, familiar the RSNs the interesting you owning quite both that. may teams did a without Fox. what exchange not on and with up We those are they're distributor. look when and what risk, originally local more baseball as up like distribution recall, They sports Fox is the amount the also were primarily they're interesting,

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moving So lot pieces. a there are of

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So ones the in be all interesting would they're underlying while these what them you those very about on, say be for potential that of as be and said, would depended purchasing. the would it you much cautious businesses, I distribution and are that you can rights pay market

Greg. Thanks,

you. Thank

you. Thank

Kerrane Our with next question from will Mike ahead. SunTrust. go come Please

could talk precedent pursue there. RHC if on can there's I what you remedies and us give just can about talk question kind that release, wondering the you program FCC. press wanted color I'm of a if pursuing the you follow-up In on any available you funding. about remedies with all just your more

in This I'll step issue, is decision that front the a at us immediate was the the related Mike. made that most staff we've issued question. of that level, us Tina that's we review appeal our to again, get and have now. address right Pidgeon processes Because commission full to to that's available rates of

also there you kind talk any could timing Is of about?

The days letter the issued. XX appeal due is was after

don’t no And any So is. have. FCC's around would dates There color what further that timing can't really tomorrow. be I are of the give I that.

your for Thanks it. Got help.

you. Thank

a from go today Private Luis Our final question come Investor. Please Hernandez, ahead. will

afternoon. for Yes, the taking question. Thanks Good hello.

sort is year, EBITDA to idea little have GCI's wanted to of next XXXX what for an just of I one, maybe have first a also The visibility.

haven't for we OIBDA. Yes, out-year provided any guidance

forward I End Q&A on the guidance, investors and think not providing own ask in was to of are judgements information generally based given. make we business their but other trends of that

your in question for Liberty. you your thank thank for you So all and GCI interest

to in New Thank said, of we number forward a next look operator. I seeing week. you As York you,

again participation, That conclude disconnect. you you your Thank today's may you. and once will all for conference. Thank not