SiriusXM Q3 Revenues Up 14%

Revenues Rise

SIRIUSXM RADIO third-quarter revenue rose 14% in to $867 million, with net income down from $104 million to $75 million, although 2012's figure includes a one-time debt extinguishment charge of $107 million.  The service's subscriber count rose by 446,000 to 23.4 million.  Adjusted EBITDA grew 24% to $245 million, and free cash flow increased 159% to $195 million.  Subscriber self-pay monthly churn stayed flat at 2%.

"SIRIUSXM delivered a very strong third quarter for our shareholders, with 446,000 net subscriber additions, double-digit growth, and record levels of revenue, adjusted EBITDA, and free cash flow.  The Company has produced more free cash flow in the first nine months of this year than in any full year in its history, and we've used this cash to reduce our debt to its lowest level since the merger of SIRIUS and XM," said outgoing CEO MEL KARMAZIN.

"We're excited about the increase in subscriber guidance to 1.8 million net additions that we reported earlier this month, as we believe growth in the fourth quarter will continue.  We continue to make investments across our business, particularly in R&D, customer care, infrastructure, and programming.  We are also investing in new businesses, such as the telematics service we announced in the third quarter with NISSAN, and we believe these investments will reward our shareholders in the years to come," added KARMAZIN.

"Following the repurchase of approximately $868 million of our debt in the third quarter of 2012, SIRIUSXM ended the quarter with $556 million of cash.  The company's leverage has improved dramatically in the past year, ending the third quarter at just 2.8x our adjusted EBITDA, down from 4.3x at the end of the third quarter of 2011," said EVP/CFO DAVID FREAR.  "By eliminating our two most expensive debt instruments in the third quarter, we will reduce our interest costs significantly, and with no debt maturing in the next two years we now have more flexibility to pursue strategic initiatives."

"Our increased subscriber guidance of approximately 1.8 million net additions shows we remain confident about growth in the fourth quarter," added KARMAZIN.  "We were pleased to raise our subscriber guidance for the third time this year."  The company also confirmed its 2012 revenue (close to $3.4 billion), adjusted EBITDA ($900 million), and free cash flow ($700 million) guidance.

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