Record Revenues For SiriusXM In Third Quarter 2014

Strong Q3

SIRIUSXM reported third-quarter 2014 revenue jumping 10% to a record $1.057 billion, with net income up 117% to $136 million (2 cents/diluted share).  Adjusted EBITDA rose 29% to a record $381 million.  In addition, the service added a net of 432,817 subscribers for the quarter, increasing the total by almost 5% to 26.7 million, with self-pay subscriber numbers rising almost 7% to 22 million; subscriber acquisition costs fell 22% to $35, and free cash flow increased per diluted share from 3.9 cents to 4.5 cents.

CEO JIM MEYER said, "We are very pleased with the performance of SIRIUSXM in the third quarter, and we are entering the fourth quarter with tremendous momentum. So far this year we have added nearly 1.2 million subscribers, grown our Adjusted EBITDA margin by more than five percentage points, and increased free cash flow by 32%."

CFO DAVID FREAR added, "Share repurchases in 2014 total almost $2.1 billion, 2.5 times the $825 million of free cash flow we generated in the first nine months of the year.  With the company's leverage at 3.4 times before the anticipated conversion of our 7% Exchangeable Notes in early DECEMBER and over $1 billion of undrawn capacity under our revolving credit facility, we retain substantial balance sheet flexibility to continue our capital returns and to capitalize on strategic opportunities that may arise."

The company raised its 2014 revenue, free cash flow and total net subscriber additions guidance and reaffirmed its other financial and subscriber guidance.  The service is looking to add net self-pay subscribers of approximately 1.25 million, add total net subscribers of approximately 1.5 million, reach revenue of approximately $4.150 billion, hit adjusted EBITDA of approximately $1.425 billion, and make free cash flow of approximately $1.120 billion.

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