May 1, 2012

SiriusXM Reports First Quarter 2012 Results

- Subscribers Grow by 405,000 to a Record 22.3 Million
- Record Quarterly Revenue of $805 Million, Up 11%
- First Quarter 2012 Net Income of $108 Million, Up 38%
- Adjusted EBITDA Reaches $208 Million, Up 15%
- Company Raises Subscriber Guidance

NEW YORK, May 1, 2012 /PRNewswire/ -- Sirius XM Radio (NASDAQ: SIRI) today announced first quarter 2012 financial and operating results, including revenue of $805 million, up 11% over first quarter 2011 revenue of $724 million.  Net income for the first quarters of 2012 and 2011 were $108 million and $78 million, respectively, or $0.02 and $0.01 per diluted share, respectively.

(Logo:  http://photos.prnewswire.com/prnh/20101014/NY82093LOGO )

Adjusted EBITDA for the first quarter of 2012 was $208 million, up 15% from $181 million in the first quarter of 2011.

"SiriusXM is starting the year with tremendous operational momentum.  We grew subscribers faster than any first quarter since our 2008 merger of Sirius and XM, and we improved our self-pay monthly churn rate to 1.9% despite implementing a price increase at the beginning of the year.  Rising auto sales and our strong execution should enable us to exceed our prior 2012 subscriber growth guidance of 1.3 million, which today we are raising to 1.5 million," noted Mel Karmazin, Chief Executive Officer, SiriusXM.

"In 2012, we continue to expect record revenue, adjusted EBITDA, and free cash flow, and our subscriber base will also finish this year at another all-time record high," said Karmazin.  "Our number one focus is on delivering the best possible content to our subscribers — we are rolling out more satellite channels via factory-installed 2.0 radios, and we are improving our online offering by delivering even more live sports coverage, updated apps with enhanced features, and later this year, on-demand content and personalized radio.  There has never been a better time to be a SiriusXM subscriber, and we think our unparalleled audio product will produce strong operating and financial performance for our company in the years to come, which should result in great value to our stockholders."

Additional highlights from the first quarter include:

  • Subscriber growth accelerates.  Self-pay net subscriber additions improved by 148% to 299,348 and the subscriber base rose to an all-time high of 22.3 million subscribers. Strong auto sales helped lift total paid and unpaid trial inventory by more than 200,000 from year end to 5.7 million.
  • Churn improves.  Self-pay monthly churn was 1.9% in the first quarter of 2012, an improvement from 2.0% in the first quarter of 2011.  New vehicle consumer conversion rate was 45% in the first quarter of 2012, in-line with the first quarter of 2011.
  • Free cash flow grows.  Free cash flow was $15 million in the first quarter of 2012, an improvement from the ($17) million recorded in the first quarter of 2011, and represented the first time SiriusXM has shown positive free cash flow in the first quarter of a year. 

"We ended the first quarter with $747 million of cash, after the repurchase of approximately $57 million in aggregate principal amount of our debt during the first quarter.  Our leverage at the end of the first quarter improved to 3.9 times our adjusted EBITDA on a gross basis and 2.9 times our adjusted EBITDA on a net basis," said David Frear, SiriusXM's Executive Vice President and Chief Financial Officer.  "Our growing cash flow is reducing our leverage substantially, and this improving credit profile should benefit stockholders as we refinance or pay down more than $1 billion of high coupon debt over the next 15 months."

2012 GUIDANCE

"With auto sales in the first quarter exceeding expectations and better than expected churn, we now expect to grow our net new subscribers by 1.5 million in 2012," said Karmazin.  The Company reiterates its existing 2012 revenue, adjusted EBITDA and free cash flow guidance:

  • Revenue of approximately $3.3 billion,
  • Adjusted EBITDA of approximately $875 million, and
  • Free cash flow of approximately $700 million.

FIRST QUARTER 2012 RESULTS

 

SIRIUS XM RADIO INC. AND SUBSIDIARIES


UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME








For the Three Months



Ended March 31,


(in thousands, except per share data)

2012


2011







Revenue:





  Subscriber revenue

$               700,242


$                 622,437


  Advertising revenue, net of agency fees

18,670


16,558


  Equipment revenue

16,953


15,867


  Other revenue

68,857


68,977


Total revenue

804,722


723,839


Operating expenses:





  Cost of services:





 Revenue share and royalties

132,111


106,929


 Programming and content

70,095


72,959


 Customer service and billing

66,187


65,836


 Satellite and transmission

18,110


18,560


 Cost of equipment

5,806


6,405


  Subscriber acquisition costs

116,121


105,270


  Sales and marketing

58,361


47,819


  Engineering, design and development

12,690


11,135


  General and administrative

59,886


56,354


  Depreciation and amortization

66,117


68,400


Total operating expenses

605,484


559,667


  Income from operations

199,238


164,172


Other income (expense):





  Interest expense, net of amounts capitalized

(76,971)


(78,218)


  Loss on extinguishment of debt and credit facilities, net

(9,971)


(5,994)


  Interest and investment loss

(1,142)


(1,884)


  Other (loss) income

(578)


1,617


Total other expense

(88,662)


(84,479)


Income before income taxes

110,576


79,693


Income tax expense

(2,802)


(1,572)







Net income  

$               107,774


$                   78,121


  Foreign currency translation adjustment, net of tax

(56)


67


Comprehensive income

$               107,718


$                   78,188







Net income per common share:





  Basic

$                     0.03


$                       0.02


  Diluted

$                     0.02


$                       0.01







Weighted average common shares outstanding:





  Basic

3,767,443


3,735,136


  Diluted

6,537,728


6,481,384









Close window | Back to top

Copyright 2015 SiriusXM Radio