SiriusXM Fourth-Quarter Revenue Rises 14%
February 5, 2013 at 4:46 AM (PT)
SIRIUSXM RADIO fourth quarter 2012 revenue rose 14% to $892 million, with net income doubling from $71 million to $156 million (1 to 2 cents/diluted share) and adjusted EBITDA up 38% to $230 million. Free cash flow grew 40% to $269 million. Self-pay net subscriber additions increased 41% to about 529,000, with self-pay monthly churn at 1.8%, a slight improvement from 2011's 1.9%. New vehicle consumer conversion rate stayed flat at 44%.
CEO JIM MEYER said, "Thanks to the outstanding team at SIRIUSXM, we capped a great 2012 with a strong fourth quarter, adding more than 500,000 net new subscribers and attaining outstanding revenue, adjusted EBITDA, and free cash flow. SIRIUSXM also returned capital to shareholders for the first time in the history of satellite radio through a $327 million special cash dividend in DECEMBER. We are confident in our guidance for growth in 2013 and continue to be sharply focused on enhancing shareholder value, including through our recently announced common stock repurchase program that we are initiating this year."
"We continue to broaden our Internet capabilities to expand the user experience and strengthen our in-vehicle technologies. We are thrilled to announce that our personalized radio feature, MySXM, is now in public beta testing and will be available to our Internet subscribers in the near future. We are committed to ensuring SIRIUSXM's long-term leadership in audio and data services, particularly in vehicles, and we will do that by continuing to innovate and improve our technology, programming, and customer care," added MEYER.
EVP/CFO DAVID FREAR said, "In 2012, we took significant steps to strengthen SIRIUS XM's balance sheet. We paid down more than $1 billion of short maturity, high-coupon debt and replaced it with $400 million of 10 year, 5.25% debt and a $1.25 billion undrawn revolving credit facility. We ended the year with more than $520 million of cash after paying a special cash dividend in DECEMBER that totaled $327 million. With debt to adjusted EBITDA falling from 4.1x at DECEMBER 2011 to under 2.7x at DECEMBER 2012, we are below our leverage target and have ample liquidity to pursue strategic opportunities and return capital to stockholders through our $2 billion stock buyback program."