Liberty Media Corp. ( LMCA ) reported disappointing financial results for the third quarter of 2014. Adjusted earnings per share of 10 cents were significantly lower than the Zacks Consensus Estimate of 26 cents. Quarterly GAAP net income stood at $33 million compared with $76 million in the year-ago quarter.
Quarterly total revenue came in at $1,184 million as against $1,110 million in the prior-year quarter but fell below the Zacks Consensus Estimate of $1,209 million.
In the third quarter of 2014, Liberty Media's adjusted operating income before depreciation and amortization came in at $392 million compared with $379 million in the year-ago quarter. Quarterly operating income was $249 million as against $248 million in the prior-year quarter. Adjusted EBITDA stood at $381.3 million against $295.7 million in the prior-year quarter.
In the first nine months of 2014, Liberty Media generated $801 million of cash from operations compared with $889 million in the prior-year period. Free cash flow in the reported period was $648 million against $757 million in the year-ago quarter.
At the end of the third quarter of 2014, Liberty Media had $1,772 million of cash and marketable securities against $2,427 million at the end of 2013. The total debt, at the end of the reported quarter was $6,074 million compared with $5,555 million at the end of 2013. At third quarter end, the debt-to-capitalization ratio stood at 0.19 compared with 0.25 at the end of 2013.
Liberty Media currently has a Zacks Rank #3 (Hold). The company holds a 57.5% stake of the satellite radio broadcaster SIRIUS XM Radio Inc. ( SIRI ) and has decided to increase its stake in the concert promoter Live Nation Entertainment Inc. ( LYV ) from the existing 27%. Moreover, Liberty Media holds minority equity investment in Viacom Inc. and Time Warner Inc. ( TWX ).
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