Revenue Hits Record High, Income Off For Fourth Quarter At SiriusXM

Reports Results

SIRIUSXM fourth-quarter revenue jumped 10% to a record $1.2 billion, with net income down from $143 million to $135 million (flat at 3 cents/diluted common share). Adjusted EBITDA rose 4% to $396 million.

CEO JIM MEYER said, "We produced our best subscriber growth in eight years, taking our subscriber base to approximately 29.6 million. The company also set records in 2015 for revenue, adjusted EBITDA, and free cash flow. We are investing in new marketing capabilities, our connected vehicle business, new satellites, a next generation wideband chipset and, most importantly, our world-class and exclusive content. We expect that these investments, together with our long-standing focus on execution, will help us continue our long history of strong, profitable growth.

"SIRIUSXM's strong, resilient business model and ability to deploy capital to benefit our stockholders present a compelling investment opportunity. Our content bundle of commercial-free music channels, live sports events, expanded comedy and entertainment programming remains a unique value in audio entertainment. And the development and deployment of our next-generation SXM17 entertainment platform and telematics services in connected vehicles position us well to continue our enviable place in the dashboard."

CFO DAVID FREAR noted, "During the fourth quarter, we spent $369 million to repurchase 92 million of our shares. In January, as our stock fell alongside the worldwide market declines, we accelerated our repurchases to nearly $200 million, repurchasing an additional 52 million shares. Our stock repurchase plan has now delivered $6.5 billion into the hands of our stockholders in just three years. We continue to maintain modest leverage of just 3.3 times adjusted EBITDA, and with no near-term maturities and growing free cash flow, we have ample options on how we deploy our capital going forward."

The company reiterated its full-year 2016 guidance of about $4.9 billion in revenue, net subscriber additions of approximately 1.4 million, Adjusted EBITDA of about $1.78 billion, and free cash flow of approximately $1.4 billion.

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