StockSelector.com
  Research, Select, & Monitor Saturday, December 15, 2018 3:24:29 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Sirius XM Holdings Inc.$6.17($.07)(1.12%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 SiriusXM Reports Third Quarter 2017 Results
   Wednesday, October 25, 2017 7:00:00 AM ET

SiriusXM today announced third quarter 2017 operating and financial results, including record revenue of $1.4 billion, up 8% versus the prior year period.

https://mma.prnewswire.com/media/589890/SIRIUS_XM_RADIO_LOGO.jpg

Net income totaled $276 million in the third quarter 2017, up 42% from $194 million in the third quarter 2016. Net income per diluted common share grew 49% to $0.06 in the third quarter 2017, compared to $0.04 in the third quarter 2016. Adjusted EBITDA grew 12% in the third quarter 2017 to a record $551 million, compared to $492 million in the third quarter of 2016. Operating cash flow in the third quarter 2017 increased 24% to $521 million, compared to $422 million in the third quarter 2016. Free cash flow in the third quarter 2017 grew 22% to $434 million, compared to $357 million in the third quarter 2016.

"SiriusXM delivered a very strong third quarter despite headwinds from slowing auto sales and the impact of severe weather in many parts of the United States. We recorded our best-ever quarter for adjusted EBITDA and its corresponding margin -- which reached 39.9%. SiriusXM is pleased to once again raise our full-year guidance for revenue, adjusted EBITDA and free cash flow. In September, we also completed our $480 million strategic investment in Pandora and recently announced a 10% hike in our quarterly dividend," said Jim Meyer, Chief Executive Officer, SiriusXM.

"We continue to create and broadcast the best audio entertainment available today, whether it’s in music, comedy, talk or sports. We love to take care of our subscribers and will do it again this weekend in Nashville with a special and exclusive event with the Eagles at The Grand Ole Opry House, where the group has never played before," said Jim Meyer. "It follows a great summer and fall of live concerts with a series of established and emerging stars, such as Chicago, Lorde, Dwight Yoakam, and The Killers, to name a few. And we continue to add new music channels and draw world class talent to our comedy, sports and talk programming," added Meyer.

THIRD QUARTER 2017 HIGHLIGHTS

-- Self-Pay Subscribers Reach Approximately 27 Million. The company added 311,000 net new self-pay subscribers in the third quarter 2017 to end the period with approximately 27 million self-pay subscribers. Total net additions in the quarter were 119,000, after giving effect to the decline of approximately 191,000 paid promotional subscribers. The decline in paid promotional net additions was due to paid promotional subscription ends out-pacing paid promotional subscription starts as a result of lower shipments from automakers offering paid promotional subscriptions. The company ended the quarter with approximately 32.2 million total subscribers and a total funnel of trial subscribers of approximately 8.9 million.

-- Strong Quarterly Revenue and ARPU. Third quarter revenue climbed 8% compared to the year ago period to a record $1.4 billion. The growth was driven by a 4% increase in subscribers and a 3% increase in average revenue per user (ARPU) to $13.41, a record high.

-- Record Adjusted EBITDA and Margin. Adjusted EBITDA in the third quarter of 2017 reached a record $551 million, up 12% from $492 million in the third quarter of 2016. Adjusted EBITDA margin was an all-time high of 39.9% in the third quarter of 2017, a 150 basis point increase from 38.4% in the third quarter 2016.

-- Free Cash Flow Reaches Record $434 Million. Free cash flow for the third quarter 2017 totaled $434 million, up 22% from $357 million in the third quarter 2016. Operating cash flow for the third quarter 2017 totaled $521 million, up 24% from the third quarter 2016.

"So far this year, we have deployed approximately $2 billion to return capital to our stockholders and to make strategic investments. In the third quarter, we spent $211 million to repurchase nearly 39 million shares of our common stock. We also returned $46 million in cash to our stockholders in the form of dividends in the quarter, bringing total capital returned to stockholders to $257 million in the third quarter. During the third quarter, we spent approximately $308 million to complete our investment in Pandora, and our Board of Directors approved a 10% increase in our quarterly dividend. At the end of the quarter, our debt to adjusted EBITDA was just 3.3 times, and we had cash on hand of approximately $74 million and undrawn revolver capacity of nearly $1.5 billion," noted David Frear, Chief Financial Officer, SiriusXM.

2017 GUIDANCE

The company increased its 2017 guidance for revenue, adjusted EBITDA and free cash flow. SiriusXM’s guidance for 2017 self-pay net subscriber additions remains unchanged. The company’s complete full-year 2017 guidance is as follows:

-- Self-pay net subscriber additions of approximately 1.4 million,

-- Revenue of approximately $5.4 billion,

-- Adjusted EBITDA approaching $2.1 billion, and

-- Free cash flow of approximately $1.54 billion.

CAPITAL RETURN PROGRAM

Shares of common stock may be purchased from time to time on the open market, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act of 1934, as amended, in privately negotiated transactions, including in accelerated stock repurchase transactions and transactions with Liberty Media and its affiliates, or otherwise. The company expects to fund the repurchases through a combination of cash on hand, cash generated by operations and future borrowings. The size and timing of these purchases will be based on a number of factors, including price and business and market conditions.

Our dividend policy may change at any time without notice to our stockholders. The declaration and payment of dividends is at the discretion of our Board of Directors in accordance with applicable law after taking into account various factors, including our financial condition, operating results, current and anticipated cash needs, limitations imposed by our indebtedness, legal requirements and other factors that our Board of Directors deems relevant.

THIRD QUARTER 2017 RESULTS

SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
                                                    For the Three Months Ended        For the Nine Months Ended
                                                    September 30,                     September 30,
(in thousands, except per share data)               2017             2016             2017             2016
Revenue:
Subscriber revenue                                  $    1,136,027   $    1,069,746   $    3,325,295   $    3,112,712
Advertising revenue                                 41,462           34,268           117,656          99,330
Equipment revenue                                   32,337           31,306           91,669           86,285
Other revenue                                       169,770          142,326          486,611          415,895
Total revenue                                       1,379,596        1,277,646        4,021,231        3,714,222
Operating expenses:
Cost of services:
Revenue share and royalties                         296,498          272,823          866,691          788,952
Programming and content                             98,239           89,015           290,038          257,760
Customer service and billing                        94,655           94,923           286,754          285,502
Satellite and transmission                          21,378           22,224           61,557           80,609
Cost of equipment                                   8,254            9,674            24,537           29,181
Subscriber acquisition costs                        119,555          120,111          372,197          381,516
Sales and marketing                                 114,519          99,194           318,135          279,278
Engineering, design and development                 29,433           19,254           81,033           57,588
General and administrative                          83,187           90,369           245,995          249,052
Depreciation and amortization                       79,913           67,880           230,136          202,215
Total operating expenses                            945,631          885,467          2,777,073        2,611,653
Income from operations                              433,965          392,179          1,244,158        1,102,569
Other income (expense):
Interest expense                                    (92,634)         (89,092)         (257,085)        (250,888)
Loss on extinguishment of debt                      (43,679)         --               (43,679)         --
Other income                                        86,971           2,370            83,897           15,733
Total other expense                                 (49,342)         (86,722)         (216,867)        (235,155)
Income before income taxes                          384,623          305,457          1,027,291        867,414
Income tax expense                                  (108,901)        (111,556)        (342,387)        (326,108)
Net income                                          $    275,722     $    193,901     $    684,904     $    541,306
Foreign currency translation adjustment, net of tax 3,680            (14)             6,426            420
Total comprehensive income                          $    279,402     $    193,887     $    691,330     $    541,726
Net income per common share:
Basic                                               $    0.06        $    0.04        $    0.15        $    0.11
Diluted                                             $    0.06        $    0.04        $    0.14        $    0.11
Weighted average common shares outstanding:
Basic                                               4,618,368        4,870,281        4,660,041        4,957,820
Diluted                                             4,704,571        4,919,829        4,734,841        5,005,133
Dividends declared per common share                 $    0.010       $    --          $    0.030       $    --
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)                                            September 30, 2017 December 31, 2016
ASSETS                                                                           (unaudited)
Current assets:
Cash and cash equivalents                                                        $      73,553      $     213,939
Receivables, net                                                                 225,001            223,029
Inventory, net                                                                   22,469             20,363
Related party current assets                                                     12,375             6,170
Prepaid expenses and other current assets                                        163,164            179,148
Total current assets                                                             496,562            642,649
Property and equipment, net                                                      1,427,614          1,398,693
Intangible assets, net                                                           2,528,709          2,544,801
Goodwill                                                                         2,286,559          2,205,107
Related party long-term assets                                                   1,017,350          8,918
Deferred tax assets                                                              777,002            1,084,330
Other long-term assets                                                           118,620            119,097
Total assets                                                                     $      8,652,416   $     8,003,595
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Accounts payable and accrued expenses                                            $      736,782     $     713,034
Accrued interest                                                                 92,539             114,633
Current portion of deferred revenue                                              1,846,285          1,832,609
Current maturities of long-term debt                                             4,220              5,485
Related party current liabilities                                                3,018              2,840
Total current liabilities                                                        2,682,844          2,668,601
Deferred revenue                                                                 178,180            176,319
Long-term debt                                                                   6,728,349          5,842,764
Related party long-term liabilities                                              6,778              7,955
Deferred tax liabilities                                                         6,418              6,418
Other long-term liabilities                                                      99,948             93,553
Total liabilities                                                                9,702,517          8,795,610
Stockholders’ (deficit) equity:
Common stock, par value $0.001; 9,000,000 shares authorized; 4,604,441 and       4,604              4,745
4,746,047 shares issued; 4,601,941 and 4,740,947 outstanding at September 30,
2017 and December 31, 2016, respectively
Accumulated other comprehensive income (loss), net of tax                        6,287              (139)
Additional paid-in capital                                                       2,159,239          3,117,666
Treasury stock, at cost; 2,500 and 5,100 shares of common stock at September 30, (13,754)           (22,906)
2017 and December 31, 2016, respectively
Accumulated deficit                                                              (3,206,477)        (3,891,381)
Total stockholders’ (deficit) equity                                             (1,050,101)        (792,015)
Total liabilities and stockholders’ (deficit) equity                             $      8,652,416   $     8,003,595
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
                                                                                  For the Nine Months Ended September 30,
(in thousands)                                                                    2017            2016
Cash flows from operating activities:
Net income                                                                        $     684,904   $     541,306
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization                                                     230,136         202,215
Non-cash interest expense, net of amortization of premium                         6,731           6,571
Provision for doubtful accounts                                                   42,329          39,629
Amortization of deferred income related to equity method investment               (2,082)         (2,082)
Loss on extinguishment of debt                                                    43,679          --
Gain on unconsolidated entity investments, net                                    (7,541)         (9,725)
Dividend received from unconsolidated entity investment                           3,606           7,160
Loss on disposal of assets                                                        --              12,912
Share-based payment expense                                                       94,588          77,890
Deferred income taxes                                                             318,190         308,613
Changes in operating assets and liabilities:
Receivables                                                                       (43,665)        (38,266)
Inventory                                                                         (396)           (5,735)
Related party, net                                                                (77,179)        (2,373)
Prepaid expenses and other current assets                                         16,698          (15,985)
Other long-term assets                                                            7,559           26,668
Accounts payable and accrued expenses                                             1,951           (1,841)
Accrued interest                                                                  (22,094)        16,715
Deferred revenue                                                                  9,955           52,421
Other long-term liabilities                                                       6,395           11
Net cash provided by operating activities                                         1,313,764       1,216,104
Cash flows from investing activities:
Additions to property and equipment                                               (206,717)       (132,246)
Purchases of restricted and other investments                                     (7,595)         (4,168)
Acquisition of business, net of cash acquired                                     (107,736)       --
Investment in convertible preferred stock of related party                        (480,000)       --
Loan to related party                                                             (130,794)       --
Payments to acquire additional ownership in related party                         (132,205)       --
Net cash used in investing activities                                             (1,065,047)     (136,414)
Cash flows from financing activities:
Proceeds from exercise of stock options                                           774             348
Taxes paid in lieu of shares issued for stock-based compensation                  (84,291)        (32,603)
Net repayments related to revolving credit facility                               (100,000)       (340,000)
Proceeds from long-term borrowings, net of costs                                  2,473,506       987,257
Principal payments of long-term borrowings                                        (1,509,910)     (8,864)
Payment of premiums on redemption of debt                                         (33,065)        --
Common stock repurchased and retired                                              (996,263)       (1,225,284)
Dividends paid                                                                    (139,854)       --
Net cash used in financing activities                                             (389,103)       (619,146)
Net (decrease) increase in cash and cash equivalents                              (140,386)       460,544
Cash and cash equivalents at beginning of period                                  213,939         111,838
Cash and cash equivalents at end of period                                        $     73,553    $     572,382

Key Financial and Operating Performance Metrics

Subscribers and subscription related revenues and expenses associated with our connected vehicle services and Sirius XM Canada are not included in our subscriber count or subscriber-based operating metrics.

Set forth below are our subscriber balances as of September 30, 2017 compared to September 30, 2016:

                             As of September 30,    2017 vs 2016 Change
(in thousands)               2017    2016           Amount  %
Self-pay subscribers         26,986  25,528         1,458   6%
Paid promotional subscribers 5,181   5,463          (282)   (5)%
Ending subscribers           32,167  30,991         1,176   4%

The following table contains our Non-GAAP financial and operating performance measures which are based on our adjusted results of operations for the three and nine months ended September 30, 2017 and 2016:

                                                                                                        2017 vs 2016 Change
(in thousands, except per       For the Three Months              For the Nine Months                   Three Months              Nine Months
subscriber and per installation Ended September 30,               Ended September 30,
amounts)
                                2017             2016             2017               2016               Amount          %         Amount           %
Self-pay subscribers            311              385              1,035              1,240              (74)            (19)  %   (205)            (17)  %
Paid promotional                (191)            (39)             (214)              157                (152)           (390) %   (371)            (236) %
subscribers
Net additions (a)               119              345              821                1,397              (226)           (66)  %   (576)            (41)  %
Daily weighted average          32,029           30,776           31,717             30,290             1,253           4     %   1,427            5     %
number of subscribers
Average self-pay monthly        1.9          %   1.9          %   1.8            %   1.8            %   0           %   0     %   0            %   0     %
churn
New vehicle consumer            40           %   40           %   40             %   39             %   0           %   0     %   1            %   3     %
conversion rate
ARPU                            $    13.41       $    13.04       $    13.19         $    12.83         $    0.37       3     %   $    0.36        3     %
SAC, per installation           $    30          $    28          $    30            $    31            $    2          7     %   $    (1)         (3)   %
Customer service and billing    $    0.92        $    0.97        $    0.94          $    0.98          $    (0.05)     (5)   %   $    (0.04)      (4)   %
expenses, per average
subscriber
Adjusted EBITDA                 $    550,582     $    491,892     $    1,574,320     $    1,401,024     $    58,690     12    %   $    173,296     12    %
Free cash flow                  $    433,788     $    356,527     $    1,099,452     $    1,079,690     $    77,261     22    %   $    19,762      2     %
Diluted weighted average        4,704,571        4,919,829        4,734,841          5,005,133          (215,258)       (4)   %   (270,292)        (5)   %
common shares outstanding
(GAAP)
(a)          Amounts may not sum as a result of rounding.

Glossary

Adjusted EBITDA - EBITDA is defined as net income before interest expense, income tax expense and depreciation and amortization. We adjust EBITDA to exclude the impact of other income as well as certain other charges discussed below. Adjusted EBITDA is one of the primary Non-GAAP financial measures we use to (i) evaluate the performance of our on-going core operating results period over period, (ii) base our internal budgets and (iii) compensate management. Adjusted EBITDA is a Non-GAAP financial measure that excludes (if applicable): (i) certain adjustments as a result of the purchase price accounting for the merger of Sirius and XM, (ii) share-based payment expense and (iii) other significant operating expense (income) that do not relate to the on-going performance of our business. We believe adjusted EBITDA is a useful measure of the underlying trend of our operating performance, which provides useful information about our business apart from the costs associated with our capital structure and purchase price accounting. We believe investors find this Non-GAAP financial measure useful when analyzing our past operating performance with our current performance and comparing our operating performance to the performance of other communications, entertainment and media companies. We believe investors use adjusted EBITDA to estimate our current enterprise value and to make investment decisions. Because of large capital investments in our satellite radio system our results of operations reflect significant charges for depreciation expense. We believe the exclusion of share-based payment expense is useful as it is not directly related to the operational conditions of our business. We also believe the exclusion of the legal settlements and reserves related to the historical use of sound recordings, loss on extinguishment of debt and loss on disposal of assets, to the extent they occur during the period, is useful as they are significant expenses not incurred as part of our normal operations for the period.

Adjusted EBITDA has certain limitations in that it does not take into account the impact to our statements of comprehensive income of certain expenses, including share-based payment expense and certain purchase price accounting for the merger of Sirius and XM. We endeavor to compensate for the limitations of the Non-GAAP measure presented by also providing the comparable GAAP measure with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the Non-GAAP measure. Investors that wish to compare and evaluate our operating results after giving effect for these costs, should refer to net income as disclosed in our unaudited consolidated statements of comprehensive income. Since adjusted EBITDA is a Non-GAAP financial performance measure, our calculation of adjusted EBITDA may be susceptible to varying calculations; may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. The reconciliation of net income to the adjusted EBITDA is calculated as follows:

                                              For the Three Months Ended   For the Nine Months Ended
                                              September 30,                September 30,
(in thousands)                                2017           2016          2017             2016
Net income:                                   $    275,722   $   193,901   $    684,904     $    541,306
Add back items excluded from Adjusted EBITDA:
Purchase price accounting adjustments:
Revenues                                      1,813          1,813         5,438            5,438
Loss on disposal of assets                    --             --            --               12,912
Share-based payment expense (1)               34,891         30,020        94,588           77,890
Depreciation and amortization                 79,913         67,880        230,136          202,215
Interest expense                              92,634         89,092        257,085          250,888
Loss on extinguishment of debt                43,679         --            43,679           --
Other income                                  (86,971)       (2,370)       (83,897)         (15,733)
Income tax expense                            108,901        111,556       342,387          326,108
Adjusted EBITDA                               $    550,582   $   491,892   $    1,574,320   $    1,401,024
(1) Allocation of share-based payment expense
                                              For the Three Months Ended   For the Nine Months Ended
                                              September 30,                September 30,
(in thousands)                                2017           2016          2017             2016
Programming and content                       $    7,407     $   5,580     $    20,971      $    14,131
Customer service and billing                  1,171          1,069         3,211            2,694
Satellite and transmission                    1,269          1,298         3,540            3,373
Sales and marketing                           8,481          6,050         19,963           15,609
Engineering, design and development           4,221          3,837         11,461           9,393
General and administrative                    12,342         12,186        35,442           32,690
Total share-based payment expense             $    34,891    $   30,020    $    94,588      $    77,890

ARPU - is derived from total earned subscriber revenue, advertising revenue and other subscription-related revenue, excluding revenue associated with our connected vehicle services, divided by the number of months in the period, divided by the daily weighted average number of subscribers for the period. Other subscription-related revenue includes the U.S. Music Royalty Fee. ARPU is calculated as follows:

                                                For the Three Months Ended      For the Nine Months Ended
                                                September 30,                   September 30,
(in thousands, except per subscriber amounts)   2017            2016            2017            2016
Subscriber revenue, excluding connected vehicle $   1,115,383   $   1,048,033   $   3,263,793   $   3,044,438
services
Add: advertising revenue                        41,462          34,268          117,656         99,330
Add: other subscription-related revenue         131,831         122,013         384,478         353,606
                                                $   1,288,676   $   1,204,314   $   3,765,927   $   3,497,374
Daily weighted average number of subscribers    32,029          30,776          31,717          30,290
ARPU                                            $   13.41       $   13.04       $   13.19       $   12.83

Average self-pay monthly churn - is defined as the monthly average of self-pay deactivations for the period divided by the average number of self-pay subscribers for the period.

Customer service and billing expenses, per average subscriber - is derived from total customer service and billing expenses, excluding connected vehicle customer service and billing expenses and share-based payment expense, divided by the number of months in the period, divided by the daily weighted average number of subscribers for the period. We believe the exclusion of share-based payment expense in our calculation of customer service and billing expenses, per average subscriber, is useful as share-based payment expense is not directly related to the operational conditions that give rise to variations in the components of our customer service and billing expenses. Customer service and billing expenses, per average subscriber, is calculated as follows:

                                                   For the Three Months Ended  For the Nine Months Ended
                                                   September 30,               September 30,
(in thousands, except per subscriber amounts)      2017         2016           2017          2016
Customer service and billing expenses, excluding   $   89,463   $   90,582     $   271,971   $   270,964
connected vehicle services
Less: share-based payment expense                  (1,171)      (1,069)        (3,211)       (2,694)
                                                   $   88,292   $   89,513     $   268,760   $   268,270
Daily weighted average number of subscribers       32,029       30,776         31,717        30,290
Customer service and billing expenses, per average $   0.92     $   0.97       $   0.94      $   0.98
subscriber

Free cash flow - is derived from cash flow provided by operating activities, net of additions to property and equipment, restricted and other investment activity and the return of capital from investment in unconsolidated entity. Free cash flow is a metric that our management and board of directors use to evaluate the cash generated by our operations, net of capital expenditures and other investment activity. In a capital intensive business, with significant investments in satellites, we look at our operating cash flow, net of these investing cash outflows, to determine cash available for future subscriber acquisition and capital expenditures, to repurchase or retire debt, to acquire other companies and to evaluate our ability to return capital to stockholders. We exclude from free cash flow certain items that do not relate to the on-going performance of our business such as cash outflows for acquisitions, strategic investments and loans to related parties. We believe free cash flow is an indicator of the long-term financial stability of our business. Free cash flow, which is reconciled to "Net cash provided by operating activities," is a Non-GAAP financial measure. This measure can be calculated by deducting amounts under the captions "Additions to property and equipment" and deducting or adding Restricted and other investment activity from "Net cash provided by operating activities" from the consolidated statements of cash flows, adjusted for any significant legal settlements. Free cash flow should be used in conjunction with other GAAP financial performance measures and may not be comparable to free cash flow measures presented by other companies. Free cash flow should be viewed as a supplemental measure rather than an alternative measure of cash flows from operating activities, as determined in accordance with GAAP. Free cash flow is limited and does not represent remaining cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt maturities. We believe free cash flow provides useful supplemental information to investors regarding our current cash flow, along with other GAAP measures (such as cash flows from operating and investing activities), to determine our financial condition, and to compare our operating performance to other communications, entertainment and media companies. Free cash flow is calculated as follows:

                                              For the Three Months Ended        For the Nine Months Ended
                                              September 30,                     September 30,
(in thousands)                                2017             2016             2017               2016
Cash Flow information
Net cash provided by operating activities     $    521,228     $    421,816     $    1,313,764     $    1,216,104
Net cash used in investing activities         $    (397,367)   $    (65,289)    $    (1,065,047)   $    (136,414)
Net cash used in financing activities         $    (93,046)    $    (260,598)   $    (389,103)     $    (619,146)
Free Cash Flow
Net cash provided by operating activities     $    521,228     $    421,816     $    1,313,764     $    1,216,104
Additions to property and equipment           (87,200)         (65,074)         (206,717)          (132,246)
Purchases of restricted and other investments (240)            (215)            (7,595)            (4,168)
Free cash flow                                $    433,788     $    356,527     $    1,099,452     $    1,079,690

New vehicle consumer conversion rate - is defined as the percentage of owners and lessees of new vehicles that receive our satellite radio service and convert to become self-paying subscribers after the initial promotion period. At the time satellite radio enabled vehicles are sold or leased, the owners or lessees generally receive trial subscriptions ranging from three to twelve months. We measure conversion rate three months after the period in which the trial service ends. The metric excludes rental and fleet vehicles.

Subscriber acquisition cost, per installation - or SAC, per installation, is derived from subscriber acquisition costs and margins from the sale of radios and accessories (excluding connected vehicle services), divided by the number of satellite radio installations in new vehicles and shipments of aftermarket radios for the period. SAC, per installation, is calculated as follows:

                                                   For the Three Months Ended    For the Nine Months Ended
                                                   September 30,                 September 30,
(in thousands, except per installation amounts)    2017           2016           2017           2016
Subscriber acquisition costs, excluding connected  $    119,544   $    120,111   $    372,186   $    381,516
vehicle services
Less: margin from sales of radios and accessories, (23,862)       (21,632)       (66,893)       (57,104)
excluding connected vehicle services
                                                   $    95,682    $    98,479    $    305,293   $    324,412
Installations                                      3,221          3,498          10,167         10,404
SAC, per installation                              $    30        $    28        $    30        $    31

About SiriusXM

Sirius XM Holdings Inc. (SIRI ) is the world’s largest radio company measured by revenue and has approximately 32.2 million subscribers. SiriusXM creates and offers commercial-free music; premier sports talk and live events; comedy; news; exclusive talk and entertainment, and a wide-range of Latin music, sports and talk programming. SiriusXM is available in vehicles from every major car company and on smartphones and other connected devices as well as online at siriusxm.com. SiriusXM radios and accessories are available from retailers nationwide and online at SiriusXM. SiriusXM also provides premium traffic, weather, data and information services for subscribers through SiriusXM Traffic(TM), SiriusXM Travel Link, NavTraffic?, NavWeather(TM). SiriusXM delivers weather, data and information services to aircraft and boats through SiriusXM Aviation(TM) and SiriusXM Marine(TM). In addition, SiriusXM Music for Business provides commercial-free music to a variety of businesses. SiriusXM holds a minority interest in SiriusXM Canada which has approximately 2.8 million subscribers. SiriusXM is also a leading provider of connected vehicles services, giving customers access to a suite of safety, security, and convenience services including automatic crash notification, stolen vehicle recovery assistance, enhanced roadside assistance and turn-by-turn navigation.

To download SiriusXM logos and artwork, visit http://www.siriusxm.com/LogosAndPhotos .

This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "believe," "intend," "plan," "projection," "outlook" or words of similar meaning. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements. SiriusXM does not provide a non-GAAP reconciliation for Adjusted EBITDA guidance to Net income or Free cash flow guidance to Net cash provided by operating activities because it does not provide guidance for the reconciling items between adjusted EBITDA to Net income, which includes the provision for income taxes, interest expense and other income, nor does the Company provide guidance for the reconciling items between Free cash flow to Net cash provided by operating activities, which includes additions to property and equipment. As items that impact Net income and Net cash provided by operating activities are out of the Company’s control and/or cannot be reasonably predicted, the Company is unable to provide such guidance as the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. Accordingly, a reconciliation to Net income and Net cash provided by operating activities is not available without unreasonable effort.

The following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: our substantial competition, which is likely to increase over time; our ability to attract and retain subscribers, which is uncertain; interference to our service from wireless operations; consumer protection laws and their enforcement; unfavorable outcomes of pending or future litigation; the market for music rights, which is changing and subject to uncertainties; our dependence upon the auto industry; general economic conditions; the security of the personal information about our customers; existing or future government laws and regulations could harm our business; failure of our satellites would significantly damage our business; the interruption or failure of our information technology and communications systems; our failure to realize benefits of acquisitions or other strategic initiatives; rapid technological and industry changes; failure of third parties to perform; our failure to comply with FCC requirements; modifications to our business plan; our indebtedness; our principal stockholder has significant influence over our affairs and over actions requiring stockholder approval and its interests may differ from interests of other holders of our common stock; impairment of our business by third-party intellectual property rights; and changes to our dividend policies which could occur at any time. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our Annual Report on Form 10-K for the year ended December 31, 2016, which is filed with the Securities and Exchange Commission (the "SEC") and available at the SEC’s Internet site (http://www.sec.gov) . The information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication.

Source: SiriusXM

Contact for SiriusXM:

Hooper Stevens212-901-6718Hooper.stevens@siriusxm.com

Patrick Reilly212-901-6646patrick.reilly@siriusxm.com

View original content with multimedia:http://www.prnewswire.com/news-releases/siriusxm-reports-third-quarter-2017-results-300542714.html

SOURCE Sirius XM Holdings Inc.

https://rt.prnewswire.com/rt.gif?NewsItemId=NY24798&Transmission_Id=201710250700PR_NEWS_USPR_____NY24798&DateId=20171025



Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2018 StockSelector.com. All rights reserved.