Sirius XM Outlines Strategy At Shareholder Meeting
May 27, 2009 at 2:52 PM (PT)
SIRIUS XM'S annual shareholder meeting, held earlier TODAY in New York, offered few surprises, as the company reiterated its prediction of pro forma adjusted EBITDA of $350 million or above in 2009. The meeting also elected 12 directors (JOAN L. AMBLE, LEON D. BLACK, LAWRENCE F. GILBERTI, EDDY W. HARTENSTEIN, JAMES P. HOLDEN, CHESTER A. HUBER, JR., MEL KARMAZIN, JOHN W. MENDEL, JAMES F. MOONEY, GARY M. PARSONS, JACK SHAw and JEFFREY D. ZIENTS), along with LIBERTY MEDIA CORP. appointments DAVID J.A. FLOWERS, GREGORY B, MAFFEI and JOHN C. MALONE.
The shareholders approved an increase in the number of authorized shares of common stock from 8 billion to 9 billion shares; an amendment that would permit the Board of Directors to effect a reverse stock split of the Company's common stock and reduce the number of authorized shares of its common stock; a new Long-Term Stock Incentive Plan; and the appointment of KPMG LLP as the Company's independent registered public accountants. Voted down was a proposal to give stockholders an advisory vote on executives' pay packages at SIRIUS XM.
The meeting also featured the slide presentation that was included in its SEC filing. According to THESTREET.COM, SIRIUS XM's main priority in 2009 is to cut costs. Beyond this year, the company's management will focus on cash flow. The company has increased of its Internet stream $6.99 to $8.99 a month. CEO MEL KARMAZIN touted the forthcoming application for APPLE's iPHONE and iPOD Touch as well as similar applications for other smart phones. SIRIUS XM plans to employ social media sites such as YOUTUNE, MYSPACE, FACEBOOK and TWITTER to drive subscriber growth and interaction.
Predictably, executives expressed concern over the slumping auto sales market, increasing churn and debt.