SiriusXM Revenue Up 12 Percent For Fourth Quarter 2014
February 4, 2014 at 4:29 AM (PT)
SIRIUSXM fourth quarter 2013 revenue rose 12% to $1 billion, with net income down from $156 million to $65 million (flat per common share at 1 cent). Adjusted EBITDA jumped 41% to a record $326 million.
The company also reported a decline in subscriber acquisition costs to $124 million in the quarter (12% of adjusted revenue, the lowest percentage in the company's history), driven by lower per-vehicle subsidy rates. In addition, self-pay subscriber net additions were 411,484, pushing the company to an all-time high self-pay subscriber base of 21.1 million at the end of the year, an 8% increase.
CEO JIM MEYER said, "The fourth quarter of 2013 capped a year of records and milestones for SIRIUSXM. We delivered our first ever billion dollar revenue quarter, and our first ever quarter with adjusted EBITDA and free cash flow each over $300 million. Our adjusted EBITDA margin of 32.5% in the fourth quarter was the highest in the history of the Company. We remain excited about continuing our track record of delivering profitable growth in 2014, with the goal of enhancing free cash flow while making investments in key long-term initiatives."
CFO DAVID FREAR said, "During the fourth quarter, we completed the first $160 million of the $500 million of share repurchases from LIBERTY MEDIA, bringing our total 2013 share repurchases to 520 million shares for $1.76 billion, leaving over $2.2 billion remaining under our current authorization. Our debt to adjusted EBITDA was just 3.1 times at the end of 2013, including $500 million of deep in-the-money convertible notes. With our recently raised leverage target of 4.0 times and our free cash flow guidance, SIRIUSXM has $3.5 billion of capacity to pursue capital returns and acquisitions."
The company reiterated its existing 2014 guidance of revenue of over $4 billion, net subscriber additions of approximately 1.25 million, adjusted EBITDA of about $1.38 billion, and free cash flow near $1.1 billion.