LBRDA - Earnings call transcript Q1 2019 | Liberty Broadband Corporation

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the GCI Liberty 2019 Q1 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded, May 9. I would like to now turn the conference over to Courtnee Chun, Senior Vice President of Investor Relations. Please go ahead, ma'am.

Courtnee Chun

you. Thank

regard XXXX. we'd statements everyone the contained to comparable within OIBDA Litigation any On schedules Act including along begin, X includes Broadband this adjusted Private in date a to results to reflect change in today, SEC. in statements certain adjusted statement on Reform speak can Liberty definitions events Liberty and forward-looking change conditions forward-looking and only or and certain the note mentioned of those number on with in like of XX-K we materially disclaim the uncertainties, Forms OIBDA measures, that or Liberty or regarding X we forward-looking recent any remind call margins. herein non-GAAP available based. expressly or call, call expectations Securities could release and risks Before website. XX-Q differ events be including GCI due Actual of meaning or our These disseminate the of is obligation GAAP thereto our financial most such statement circumstances filed this reconciliations, and with preliminary which any GCI issued press any discuss with will which today's in required revisions found undertaking the Liberty updates metrics any any as and including to earnings and the is to Broadband's Information of or

and Greg Liberty's President introduce to like CEO, I'd Now Maffei.

Gregory Maffei

Mark also speaking welcome have of CFO, Pete on we Pounds. call, afternoon. Carleton; and Good GCI's all Today Courtnee, you, to and Thank GCI Liberty's CFO, the you.

only Liberty available we related questions Liberty to Q&A, will Broadband. to answer the During GCI but be not

$X our We we We beginning only so the repurchase advantage to will continue with did spending stock under of the do the and able $X were Charter, quarter. very can. from stock this grid. double we - GCI to million or and of price been increased million stock reduced discount of So purchase has when strong as the Liberty, take underlying

now Turning GCI, unit. operating to the

in operating - tough GCI are and setbacks cost have execute growing are in against their We also a taken regulatory challenging revenue, data structure, that, environment. to regulatory continues addressing some they they to obviously response very having team including the cuts job their experienced. that The in a

We are drive that investments focused on value will here. future

Internet a increased we team Looking penetrated relationships product today. adds, integration of briefly the strong their passings posted They benefits at well-executed continued upside Liberty is their are primarily Broadband. the through the leading. customer strong there. PSUs, and - the crossings Business and of Tom XX% that have Charter we deriving quarter. with only that first they rather have that Internet roughly We've

over levered that, cash flow across revenue worth capital area X significantly financials. We falling the of growth for mobile also it XXX,XXX reduced will strong commercial residential, dramatic let stock potential with per with growth. continues that to the the me Charter flow the - the counts. discuss quarter, quarter million to EBITDA We Mark the turn thesis to in in intensity deliver and continue growth increase $XXX led repurchased cash free residential lines, to Carleton investment yielded that a combined share. we and of having make share experienced progress shrink mobile the to cash ahead. expenditures with lines. strong quarters With with in in on flow Combine ended free and

Mark Carleton

billion includes And loan, today's don't to defined GCI. in threshold the the of GCI plenty leases close [incurrence-based] X.Xx securities million, billion which public as which debentures consolidated under value Liberty had interest the compliance equity our margin of confident total includes $XX in quarter at aforementioned its in interest of noted Liberty a business its you, $XXX XX-Q, billion, cash allowable at obligations leverage to billion we and in GCI which as covenants. funding At on outstanding Charter maximum Greg. we're was LendingTree. leverage billion, with the at the $X.X margin GCI's and debt includes tower have in of cash to compared agreement exchangeable But Liberty GCI and in of $X.X debt Thank $X of leverage Liberty including finance Liberty against end, continue The revolver. GCI. credit Broadband X.Xx. of the has exceeded principal maximum million interest we amount $XXX $X terms additional million the Liberty a GCI to billion maintenance of hand notes, our quarter our was GCI Charter, cash $X.X loan we had end, the of access of $X.X therefore, be our have and Broadband and in senior its operate as shares. we At

turn to I'll Pete. with So it that, over

Peter Pounds

Mark. you, Thank

out to Let an update me start with RHC matters.

which our As on XXXX. funding X, we denying denied received release, from notices from USAC one in by customers The of USAC filed an RHC requested customer press described November. was back May appeal, our in

OIBDA the impacted this $XX.X point, appealing the the days for within that revenues Wireline the Bureau Competition the decision XX, reserve denial. to related through FCC quarter. taken X to from million X, we've July of our to account customer be expect a for At We May customer This March from XX in XXXX will adjusted the reserve this XXXX.

decision they resolution. that Going issue FCC by million XXXX one, funding challenging the options updates million, other With to a letter completed from don't appeal XXXX, $XX.X of but certainty us all greater first bid to other we're particular their X, process is the on and reduce to pursue I forward, or starting this per approximately a new momentum. revenues continue towards at In XX, respect surrounding be any point. was have quarter on received see available some areas, we June that there the will of ended that we our for report of of slight whereby year $X a October the the April the growth the the notified collectability. that XXXX, in appealed saw had job November until This is XX recording been showing The month to positive not employment we during change we is preliminary was economy that, we basis, quarter. on anticipating. Anchorage that

us low-margin focus wireless on focusing in will XXXX Accordingly, beyond. and and speeds we network to and increase bringing materials Alaska. have of market the During our the to particularly wireline XXXX, our we're faster size on XX. This our allow time business, in reduced in lower

months, our voice bodes future that and Operating we've been in offset out results. of products, now well in approximately declines product updates the performance. and Revenue increases for quarter revenues. rolled momentum place wireless X% has by system starting Additionally, being X a somewhat for was during are data our to down which see number new billing in for new with

network noted I believe As lead ultimately earlier, focusing Alaska, wireless our are improved we to will on revenues. in in we which XXXX, enhancing

particularly operations in from the Alaska on decline will revenue, time a to materials forward. and low-margin focus going lower lead XX customers that in the Additionally,

materials declines elsewhere. and mentioned XX. that in earlier, our reduce April for reductions $XX.X and steps time OIBDA costs and masked took costs, particularly X% X, million our down business in was our the The adjusted in higher the cost we to approximately lower reserve time progress Excluding revenue significantly On I materials quarter. the

migrated video in were consumer in slightly side, revenues voice, faster declines to On down and as plans. with offset customers increases by revenues service the being mostly wireless data

I our nationwide On after earlier, losses in our X, significant unlimited new which to billing has while system. stemming put As April been now we the restriction in launched implemented we a doing wireless instrumental products providers. from noted we so able wireless new to are prepaid new plan, market

and our modem to have coming next several over product We online refreshes the months. cable TV cable

On wireless revenue. in the driven to business by wireless business revenue down due the slightly side, declines in were declines backhaul CapEx. revenues largely

wireless in hybrid quarter, the approximately network million coax For were and invested fiber improvements. improvements, primarily $XX capital Expenditures for expenditures. we

expect We on in earnings million call. last I XXXX, $XXX from our the CapEx is $XXX million to in down approximately spend estimate which provided

back Now call to I'll Greg. the hand

Gregory Maffei

ready And for up think we're operator, to with questions. open I that,

Operator

[Operator from Silver Zack FBR. B. come will first Instructions] Riley with question Our

Zachary Silver

for and Liberty you're in one Liberty Liberty combine us of NAV would And are many the Broadband. you Clearly, GCI about discount And [at thinking Globe], Greg. been additionally, First the have you baking when to GCI then as potential to thinking combine valuing full think were in the entities, if about how Broadband you that transaction? well? NAV about X the

Gregory Maffei

and questions, Zack. We time combinations. the look from for time portfolio you at Thank our consider appropriate to obviously

GCI try look of decision. Liberty their both said, responsible and recognize announce and are merge market have we kind look are announce. values nothing that of plan or to this values think no that estimate independent Board have intent who come to we the would to shareholders at come we today. and into a Liberty Anytime and the Broadband fair obviously nothing they do and I up with would We time try a and members set that and what they underlying of expect But at at fair combination, and NAVs as to

Zachary Silver

for one Pete. maybe then And

the subscriber and yet a quarter. metrics has of of that in in improvement, think economy some the Alaska I shown soft signs the - were bit the

this just going there's or in not there on, that really Alaskan competitor a that else economy is anything about? we're the is So Or else something lag a improving? of kind thinking potentially

Peter Pounds

transition billing there systems first decent chunk quarter. the of the Yes, probably that a that Zack, the cleanup would been and between in have just some of happened that

it's most improvements between So sub delays would counts systems. the minor maybe the cleanup was of overall not pickup in economy I slight count that of unexpected though. say I and between note to sub really some that would of see

Operator

Ratcliffe come will question next Our from with James Evercore.

James Ratcliffe

for I for Pete one could, And if and Mark. sorry, again, one Greg. Two

back is $XX EBITDA? with [Globe] in it involved of are for process? Or Liberty to secondly, both Greg, that? just the process in cost sort on procedurally, Pete revenue, for and be For million sort boards denied Broadband, the Or of considered? just on you Would quarterly that would - to John hit not role of run appeal is and RHC associated purely sort the would And coming directors that any material the how roughly $X million have who that be Pete, that? a there rate

Peter Pounds

I'll first there. guess one I right. the All take

as there yes. answer far costs, the are material James, So is as

fixed mostly are they However, costs.

But as variable it's a and be of result at significant build, shedding we'll forthcoming. So costs those very this where network not be look opportunity don't costs as this. a an expensive will to of the recovery

Gregory Maffei

of expect would process would that any much because plan directors on that there really their I directors, the influenced. by no as they facts I'm - of they but advisers the non-independent driven James, on But too about non-overlapping intent said or no independent management primarily about the to would they asked financial independent to opinion we sure ensure have or be might their haven't the I I that the any would transaction were X directors unduly the thought counsel own occur have and whether independent and that. expect companies. circumstances, was questions have of own

Operator

Our Matthew Buckingham Harrigan come next question will Group. from Research with

Matthew Harrigan

the could seem rolled what gets or particularly Washington, close you if is in people nixed Liberty if discount GCI, deal recover Broadband to some Charter, everything and think. Clearly, together, the the of which discount was Sprint-T-Mobile

of they're relative solution I because to value value people strategic the know feel could how rights Sprint. position economic you value for and position say, M&A Your command. more position someone that some and is But hunting trying your Charter. Charter maximizing you there Masayoshi that for positioning blocking outside another and get about are you Son around do to do even if your looking - things of reciprocal for and have

Gregory Maffei

Well, Matthew. thank you,

the network products buyer the think strong. but up results to well a its wireless of incremental positioned buyers, relationship network, opportunities the are business not potential the We us strategic its network own book against And network but feel the find any there and were Charter's on as potential offers. on shows the think they both the value we'll the through on own down you're has have. to its If have add our I potential look offer only we on at the at weighed right, has MVNO business and - and the current carriage I including consider might the that who a we'll potential time. on Charter's for potential -

Matthew Harrigan

something on have Charter Is is that on there you deposition? blocking any that sunset Or would can't comment rights moving you the that and on?

Gregory Maffei

I'm you not rights exactly sure sorry, what to. blocking I'm refer

Matthew Harrigan

sell Charter be by stake block XX% is understanding roughly of undesirable an economic to Charter you block in able that thought that that party, In moves be your any my able were there to to would outside just to you'd wanted Charter. sort terms Is if as you of... any

Gregory Maffei

I certain believe be we be if think we in - could to go I might have that we're that is rights there to sell No, think And we have we we other I can XX% we'd our between stock, to the allowed - able but think up XX%. our may sale, - a and think position. somewhere and almost don't do rights any economic I vote I interest blocking than XX% of away

some with So and we're substantial a voice. shareholder hopefully

Operator

from will question with Cross come last TD Our Securities. Bentley

Bentley Cross

time I the been and consolidation But cable just space. thoughts on follows question Greg, to know wondering I it's last your on one, potential wanted you've the that within a time and a question again. asked ask overall with

Gregory Maffei

think it's on operating thing. side, largely a around value. are content adds it's on on side synergies costs. the cost are a of - purchasing It cost but I good only economic costs not synergies the a around side. the There There lot

consumers substantial buy it $X million I video been left economic the as drop at and having with broadband. who X there matter, for - to and - much practical of value streamlines and that X on XX - have and broadband million a Comcast That then and - broadband isn't a adds $X adds and XX XXs people on And XXs there's some think mid-XXs million on shareholders X video, So high right? of said, got to alike. - of XX You've benefit it's low on maybe us subs. and

Taylor, for don't sale the there very consolidation. I family, more Kennedys signs. don't some seen the them but Cox haven't So attractive Alex - a Cox is potential up they I is business, modest for think and putting

Charter would interested in we consolidation that's any happen. obvious I So not that but where think - occur, could be to very it's going

Gregory Maffei

listening conferences not, I Thank if you near with the the or, forward to hope talking much again look believe - any in very audience. quarter. call very you you done. the of Thank Operator, term We we're much. to at next

Operator

Thank your today's you. Thank for conference. you That does conclude participation. all

may You now disconnect.

Liberty Broadband (LBRDK) 12 May 192019 Q1 Earnings call transcript