Liberty Broadband Corporation

Ladies and gentlemen, thank you for standing by. Welcome to the DCI Liberty 2020 Q3 Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press star 1 on your telephone. As a reminder, this conference is being recorded November 9th. I would like to now turn the conference over to Courtney Chun, Chief Portfolio Officer. Please go ahead.

Thank you. Good morning. Before we begin, we'd like to remind everyone that this fall includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent forms 10-K and 10-Q filed with the FCC. These forward-looking statements speak only of the date of this call and GCI Liberty Broadband and Liberty Trip Advisor expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in GCI Liberty, Liberty Broadband, or Liberty Trip Advisor's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based. On today's call, we will discuss certain non-GAAP financial measures for GCI Liberty, including adjusted OIDA and adjusted OIDA margins. Information regarding the comparable GAAP metrics, along with required definitions and reconciliations, including preliminary note and Schedules 1 and 2, can be found in the earnings press release issued today, which is available on the GCI Liberty website. Please remember to register for our virtual Liberty Investor Meetings. On Thursday, November 19, we will cover Liberty Media and Liberty TripAdvisor. And Friday, November 20, we'll include Curate, GCI Liberty, and Liberty Broadcast from 11 a.m. to 2 p.m. Eastern on both days. After the presentations on both days, John Malone and Greg Muffet, along with presenting CEOs, will host a Q&A session. Please pre-submit questions by Friday, November 13, to InvestorDay at LibertyMedia.com. You can find a link to register and all of these details on our home pages. Now I'd like to turn the call over to Greg Muffet, our President and CEO. Thank you.

Thank you, Courtney, and good morning to all. Today, speaking on the call, we will also have GCI Liberty's Chief Accounting and Principal Officer, Brian Wendling, and GCI CFO, Pete Pounds. Also during Q&A, we will be available to answer questions related to Liberty Broadband and Liberty Trip Advisor. First, I'd like to give a few updates on the proposed combination between GCI Liberty and Liberty Broadband. The HSR waiting period expired on October 9th. The FCC approved the transaction on October 23rd, which will become final on December 2nd if there are any applicable challenges. We are still waiting on regulatory commission of Alaska approval. We filed our application with them on September 16th and are looking to expedite that as quickly as we can. The proxy for the transaction went effective on October 30th, and our special meeting for the shareholder vote is scheduled for December 15th. The proxy does mention two lawsuits which were filed against GCI Liberty. One has been dismissed and the second is proceeding with expedited discovery. We do not expect the proceedings to delay the closing of the transaction. With the date set for the vote and based on regulatory recourse we've already received, we now expect the deal to close no later than the first quarter of Q1 2021. Now on to the third quarter results. starting with GCI Liberty. GCI had another great quarter. Revenue was up 11%. Operating income was up 24 million, and adjusted EBITDA was up 27%. Pete Pounds will discuss those results in a little more detail in a moment. The 5G upgrade in Anchorage is complete, and third-party tests have shown that it's now twice as fast as the network is twice as fast as our competition. The company is in a very solid liquidity position with 105 million of cash and 271 million of undrawn capacity under its senior credit facility as of the end of the third quarter. Turning over to Liberty Broadband briefly, we did repurchase 3.4 million shares of Liberty Broadband stock for $488 million at an average price of $142. We consider these repurchases very attractive. If you look at the look-through price of the underlying charter, it involves a price of $486. This was a 23% discount to yesterday's close at $634, and given how the market is moving, I suspect it's a bigger discount yet. Charter had another fantastic quarter with outstanding financial results. Consolidated dividend grew over 13%. They generated $1.8 billion of free cash flow, up nearly 40%. They added 537,000 residential and small business Internet customers versus 386,000 last year. Over the past 12 months, Charter has added 2.3 million Internet customers. Growth in mobile lines has continued to accelerate as well, and they added 87,000 more in this quarter than the same period last year. Impressively and against Most of the industry, they added another 670,000 video subs. Year-to-date, we are up in video subs. During the quarter, Charter repurchased 6.1 million shares for $3.6 billion at an average price of $592 per share. Charter has shown an amazing ability to operate well under the circumstances, and it's really a testament to the hard work of the team and the investments they've made in various parts of the businesses over the last few years, which will allow them to operate quite effectively remotely. LendingTree hosted their earnings call this morning, and make sure you check out the replay. Lastly, TripAdvisor will host its earnings call tomorrow morning. Please tune into that for an update on their results as well. And with that, I'll turn it over to Brian to discuss the GCI Liberty financials.