Sirius Announces Post-Merger Financial Guidance
June 30, 2008 at 7:49 AM (PT)
SIRIUS SATELLITE RADIO has announced financial guidance for 2009 assuming the completion of the merger of SIRIUS and XM SATELLITE RADIO. Based upon the company's preliminary analysis, it announced that:
-- Total synergies, net of the costs to achieve such synergies, for the combined company are expected to be approximately $400 million in 2009;
-- Adjusted EBITDA for the combined company is expected to be approximately $300 million in 2009. Adjusted EBITDA is net income/(loss) before interest and investment income, interest expense (net of amounts capitalized), depreciation expense, and non-cash stock compensation expense; and
-- The combined company is expected to achieve positive free cash flow, before satellite capital expenditures, for the full year 2009.
To date, neither SIRIUS nor XM has reported positive adjusted EBITDA or achieved free cash flow for a full year.
"The upside potential from this merger is significant. In addition, the synergies, adjusted EBITDA and free cash flow are expected to continue to grow in subsequent years, and we look forward to providing more detail of this growth in coming months," said SIRIUS CEO MEL KARMAZIN.