Sirius XM Radio to Announce Second Quarter 2011 Results
Sirius XM Radio today announced that it plans to release second quarter 2011 financial and operating results on Tuesday, August 2, 2011.
SiriusXM will hold a conference call at 8:00 am ET on Tuesday, August 2, 2011 to discuss these results. Investors and the press can listen to the conference call via the company’s website, www.siriusxm.com, and on its satellite radio service by tuning to Sirius channel 94 or XM channel 141. The call will also be available on the Sports Nation 2 channel on SiriusXM Internet Radio and through the SiriusXM Internet Radio App for the Apple iPad, iPhone, iPod touch and several BlackBerry and Android-powered smart phones.
SiriusXM to Join the NASDAQ-100 Index
Sirius XM Radio today announced that it will be added to the NASDAQ-100 Index effective July 15, 2011. SiriusXM’s common shares will also be included in the PowerShares QQQ exchange traded fund.
“We are pleased to be included in the NASDAQ-100 Index,” said Mel Karmazin, Chief Executive Officer, SiriusXM. ”Inclusion in the index highlights the growth of our business and the substantial improvements in revenue, cash flow, and market value we have seen over the past two and a half years,” added Karmazin.
The NASDAQ-100 Index is composed of the 100 largest non-financial stocks listed on The NASDAQ Stock Market® and dates to January 1985. The index acts as a benchmark for financial products such as options, futures, and funds, and reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain securities of financial companies including investment companies.
PowerShares QQQ is an Exchange Traded Fund (ETF) that seeks to replicate the NASDAQ-100 Index. It is used by investment professionals, private investors and financial advisors.
Sirius Canada and XM Canada Complete Merger
- New organization to operate as SiriusXM Canada
- More than 1.8 million subscribers makes SiriusXM Canada one of the largest subscription media companies in Canada
- Expected synergies of $20 million on revenues of more than $200 million
- Leads in-car audio entertainment with partnerships with every major automotive manufacturer
- Leader in mobile and online listening space with internet radio and streaming apps
Canadian Satellite Radio Holdings Inc., the parent company of XM Canada, and Sirius Canada Inc., is pleased to announce that the organizations have completed the merger announced in November 2010. Operating as SiriusXM Canada, the newly merged entity will have more than 1.8 million subscribers and form one of the country’s leading media companies. The combined company’s stock will continue to be traded on the Toronto Stock Exchange under the symbol “XSR”.
“Today’s news brings us to an exciting conclusion of a process we started late last year,” commented Mark Redmond, President and CEO of SiriusXM Canada. “With this combination we have created a powerful Canadian media company with more than 1.8 million subscribers that is among the largest subscription entertainment companies in Canada. Today, SiriusXM Canada is stronger financially and well positioned to succeed in the highly competitive audio entertainment industry. Our increased size will bring a renewed focus to our strategy to lead the in-car entertainment experience as well as mobile and online listening.”
“While both companies have enjoyed much success since the launch of the category in 2005, the growth opportunities for SiriusXM Canada are tremendous,” noted John Bitove, Chairman of SiriusXM Canada. “Our partnerships with all of the major automotive manufacturers will be a key catalyst to our growth.”
Growth & Shareholder Value As a combined organization, SiriusXM Canada will havea total subscriber base ofover1.8 million.On a trailing 12-month basis (ending August 31(st), 2010), the combined company willhave pro forma revenues of approximately $200 million, and pro forma adjusted EBITDAof approximately$3.7 million. Not only is the merger expected to yield synergies of approximately $20 million within 18 months, the company will benefit from accelerated growth and a laser-focus on the subscriber experience.
The merged company will continue to have a strong presence at more than 3,000 retail locations, an expanding online/mobile offering, and its radios will be factory installed in more than 800,000 vehicles sold in Canada this year.
Expanded benefits for consumers Canadian consumers will benefit from this merger in several ways over the coming months. To start, SiriusXM Canada will be launching a new channel dedicated to Aboriginal content by September of this year. “We’re excited about the launch of this new channel which further demonstrates our commitment to the diverse cultural makeup of Canadian content,” said Redmond.
“We also look forward to the introduction of an interoperable receiver later this year, allowing customers to subscribe to either or both of the two services. SiriusXM Canada has the most exciting audio entertainment content available anywhere. We’ll continue to listen to what our subscribers want from us, we’ll deliver the best music and entertainment listening experience anywhere,” said Redmond.
The merger will have no immediate effect on the current service coverage or existing radios, and in the near term, customers can expect to interact with each company as they always have.
“We will work quickly to integrate the two companies, creating a best-in-class management team and employee base,” said Redmond. “The opportunity in front of us is huge; for our shareholders, our employees, our partners, and most of all, our customers.”
The Merger Transaction As consideration for all of the issued and outstanding shares of Sirius, Sirius XM Canada issued from treasury to the former shareholders of Sirius (the “Sirius Shareholders”), the following:
- Canadian Broadcasting Corporation: 53,570,361 Class B Voting Shares (”Class B Shares”) (approximately 19.90% voting interest);
- Slaight Communications Inc.: 53,570,361 Class B Shares (approximately 19.90% voting interest); and
- Sirius XM Radio Inc.: 25,248,444 Class A Subordinated Voting Shares and 30,967,680 Class B Shares (approximately 25.00% voting interest)
The approximate ownership interest in Sirius XM Canada following the closing of the Merger is represented by the ownership interests of the Sirius Shareholders set out above as well as an approximate 30.50% voting interest held by CSRI Inc., the balance being widely held.
Sirius XM Radio Inc. to Use Rand Secure Archive from Rand Worldwide
Rand Worldwide, a global provider of technology solutions to organizations with engineering design and information technology requirements, announced today that it will provide data archiving capabilities via Rand Secure Archive for 3000 users at SiriusXM, America’s satellite radio company. The agreement is to supply, install and support SiriusXM with data archiving capabilities enabling it to better understand, format and govern their electronic data.
“Rand Secure Archive is proud to be playing a key part in helping an innovative leader like SiriusXM execute on their strategy for data archiving,” stated Chris Grossman, Vice President, Enterprise Applications at Rand Worldwide. “We are pleased to provide them with a solution that is robust, reduces their data storage costs, enforces their internal governance policies and enables compliance with FRCP, SOX and other SEC regulations, while providing easy access to archived data,” continued Grossman.
“Our electronic data is of critical importance to our operations. As our organization continues to evolve, managing data is paramount,” commented William Pratt, Senior Vice President and Chief Information Officer of SiriusXM. “The Rand Secure Archive platform offered us a scalable solution that could accommodate future growth and new capabilities that we may require down the road.”
Rand Secure Archive offers data archiving and management solutions based on world-class technology. Companies can simplify the process to store, manage and search data and electronic communications enabling internal compliance with regulatory and corporate governance. Rand Secure Archive is a fully-hosted, on-demand solution that allows for rapid eDiscovery searches, governance, legal hold and data recovery. Data is hosted on secure servers with direct data access available at all times. For more information, visit: www.randsa.com.
More information on Satellite Radio 2.0
Speaking at todays conference call Sirius XM’s CEO Mel Karmazin took a few minutes to discuss Satellite Radio 2.0, the new Satellite Radio system due out by the end of 2011.
“We continue to work hard to have our SiriusXM 2.0 product ready to launch in the retail channel by the end of the year. We are committed to bringing more content and functionality to our subscribers, which will ensure satellite radio remains an outstanding value proposition in an evolving, competitive media landscape.” Karmazin said during the conference. ”With 2.0, we’ll be expanding our audio content lineup with new channels, including a suite of new Spanish-language channels. With 50 million Hispanics in the United States, we see significant upside potential with our expansion here. We’ll also be offering an electronic program guide to better inform listeners about great content on all of our channels, listeners will be able to buy music from their radios, and we’ll be including more DVR-like functionality such as pause, rewind and replay, as well as record and playback capabilities.”
The above confirms a post I made about Satellite Radio 2.0 back in September 2010. Expect more information to become available as we get closer to the Holiday season.
SiriusXM Reports First Quarter 2011 Results
- Subscribers Reach New High of 20.6 Million; 373,000 Net Subscriber Additions in First Quarter
- Revenue of $724 Million, Up 9% Over First Quarter 2010
- Record Adjusted EBITDA of $181 Million, Up 15% Over First Quarter 2010
- Free Cash Flow Improves $110 Million Year-Over-Year
Sirius XM Radio today announced first quarter 2011 results, including revenue of $724 million, up 9% over first quarter 2010 revenue of $664 million, and adjusted EBITDA of $181 million, up 15% from $158 million in the first quarter of 2010.
“SiriusXM’s first quarter results have put us on track to attain our full year goals for subscriber, revenue, and adjusted EBITDA growth. Significantly, we are now in a position to raise our free cash flow estimate for the year,” said Mel Karmazin, Chief Executive Officer, SiriusXM. “Consumers are buying cars again and demand for our product is strong. Were it not for the OEM supply chain uncertainty resulting from the tragedy in Japan, we would be in a position to raise our subscriber guidance today.”
Other highlights from the quarter include:
- Subscriber growth accelerates. Strong auto sales drove net subscriber additions in the first quarter of 2011 to 373,064, up 118% from 171,441 in the first quarter of 2010. Ending subscribers as of March 31, 2011 were 20,564,028, up 9% from the 18,944,199 subscribers reported as of March 31, 2010.
- SAC improves. Subscriber acquisition cost (SAC) per gross subscriber addition was $57 in the first quarter of 2011, a 3% improvement from the $59 reported in the first quarter of 2010.
- Churn stable. Average self-pay monthly customer churn was 2.0% in the first quarter 2011, in-line with the first quarter 2010 monthly average of 2.0%.
“We operate in a highly competitive audio entertainment marketplace, where there are more choices than ever before, yet consumers continue to choose SiriusXM. We continue to invest in content, expand distribution and improve our technology to deliver the most compelling value proposition possible to consumers across the country,” Karmazin added.
Free cash flow in the first quarter of 2011 was ($17) million, a $110 million improvement from the ($127) million recorded in the first quarter 2010. These improvements were driven by declines in satellite capital expenditures and improved adjusted EBITDA. Net income in the first quarters of 2011 and 2010 was $78 million and $42 million, respectively, or $0.01 per diluted share in each period.
“We ended the first quarter with $434 million of cash and cash equivalents after deploying approximately $135 million to repurchase debt. In April, we repurchased approximately $74 million of our 3.25% Convertible Notes due 2011 via a cash tender offer,” said David Frear, SiriusXM’s Executive Vice President and Chief Financial Officer. ”We continue to make progress toward reaching our leverage target. Our net debt to adjusted EBITDA declined to 4.1x at the end of the first quarter of 2011 from 6.6x at the end of the first quarter of 2010.”
The discussion of adjusted EBITDA excludes the effects of stock-based compensation and certain purchase price accounting adjustments. A reconciliation of non-GAAP items to their nearest GAAP equivalent is contained in the financial supplements included with this release.
2011 GUIDANCE
In 2011, we continue to expect full-year revenue of approximately $3 billion. Our adjusted EBITDA projection remains at approximately $715 million. Full year self-pay churn and conversion rates for 2011 should be broadly similar to those seen in 2010, and we continue to expect to grow our net new subscribers by 1.4 million in 2011. Free cash flow in 2011 should approach $350 million as compared to previous guidance for free cash flow approaching $300 million.
Click here to read the rest of the First Quarter 2011 Results.
Sirius XM Radio to Announce First Quarter 2011 Results
Sirius XM Radio today announced that it plans to release first quarter 2011 financial and operating results on Tuesday, May 3, 2011.
SiriusXM will hold a conference call at 8:00 am ET on Tuesday, May 3, 2011 to discuss these results. Investors and the press can listen to the conference call via the company’s website, www.siriusxm.com, and on its satellite radio service by tuning to SIRIUS channel 113 or XM channel 90. The call will also be available on the Sports Nation 2 channel on SiriusXM Internet Radio and through the SiriusXM Internet Radio App for the Apple iPad, iPhone, iPod touch and several BlackBerry and Android-powered smartphones.
SIRIUSXM RADIO STAR JASON ELLIS UNLEASHED ON FUEL TV
“Ellismania” World Television Premiere Wednesday, April 6, 2011
FUEL TV, Fox Sports Media Group’s dynamic entertainment and sports network for young males, announces the world television premiere of the absurd fight comedy series “Ellismania,” with Jason Ellis—Australian “man’s-man,” pro fighter, pro skateboarder and host of an uncensored, no-holds barred daily show on Faction, SiriusXM’s action sports and music channel. The four-part series launches on Wednesday, April 6 at 10:00PM ET/PT, in FUEL TV’s Fearless Wednesdays line up.
In “Ellismania,” Jason prepares for and hosts Ellismania 6, a self-branded evening of “fighting at its dumbest,” peppered with hilarious twists of comedy for the amusement of friends and fans lucky enough to witness the absurdity. The series also looks back at the craziness of the previous five Manias, where star-studded match-ups meet goofball antics, including shock collars and blindfolds, in the most original fighting event on the planet.
“Ellismania is a let’s-get-together-and-punch-each-other-in-the-face party,” says Jason. “I put it on to give my fans the times of their lives. I’m really excited to bring it to a much larger television audience with FUEL TV.”
”I have never produced, or even seen, a show like this before,” says FUEL TV’s VP of Production and Development Scott Paridon. ”It’s truly a lesson of painful humility for anyone who steps into the ring to be a part of Ellismania. We’re excited to have filmed this amazing and totally entertaining event and bring it to television for the first time ever.”
The series highlights the hilarious and unthinkable exhibitions as sport and pop culture’s best collide in the ring, including UFC Champions Jason “Mayhem” Miller, MMA fighter Kit Cope, Animal Planet’s “Wild Recon” host Donald Schultz and motocross pro Ronnie Faisst. Ellismania 6 culminates with a main event that features a match between Angel Jones from E! Entertainment Television’s “Holly’s World” and Ellis radio show contributor Josh “Rawdog” Richmond.
Watch for a who’s who of celebrities such as UFC Champion Tim Silvia, former heavyweight boxer and trainer Justin Fortune, comedian Nick Swardson, two-time Supercross Champion Chad Reed, and musician Everlast to join the fun on the sidelines. The series was shot at the legendary Hollywood Palladium.
You can see a short video for Ellismania here.
Howard Stern Sues Sirius XM Radio
According to Reuters.com Howard Stern and his agent are suing Sirius XM Radio for refusing to provide performance based stock options as promised.
Stern’s lawyers say Sirius XM Radio offered Stern a series of escalating stock awards in 2004 that hinged beating subscriber estimates by 2 million or more in any year of Stern’s contract. According to the filing Stern helped the company surpass the target by more than 2 million subscribers in 2006 and 2007. After the merger with XM in 2008, Sirius XM again beat its targets, as well as in 2009 and 2010.
“Now that Sirius has conquered its chief competitor and acquired more than 20 million subscribers, it has reneged on its commitment to Stern, unilaterally deciding that it has paid him enough,” the complaint said.
In response, Sirius XM said it had “met all of our obligations under the terms of our 2004 agreement with Howard, his agent and production company.” It added it was “surprised and disappointed” by the legal action.
Stern’s production company, One Twelve, was paid stock awards in the first year of Stern’s contract. Sirius XM was also supposed to pay Stern’s agent, Don Buchwald, a consulting fee of 10 percent, the court documents showed.
Updated: You can read the 23 page summons here: http://www.scribd.com/doc/51320553/Stern-v-SiriusComplaint
(Via: Reuters.com)
Mel Karmazin to be Featured Speaker at the Lazard Capital Markets Technology and Media Conference
Sirius XM Radio today announced that Mel Karmazin, its Chief Executive Officer, is expected to be a featured speaker at the Lazard Capital Markets Technology and Media Conference in Boston, MA, on Tuesday, March 15, 2011 at approximately noon ET.
An audio webcast of the presentation will be available via the Investor Relations section of the company’s website, www.siriusxm.com
