SIRIUS XM Radio Inc.
) declared mixed financial results for the first quarter of 2013.
Quarterly GAAP net income was $123.4 million or 2 cents per share
compared with a net income of $107.7 million or 2 cents per share
in the prior-year quarter. First-quarter earnings per share of 2
cents were exactly in line with the Zacks Consensus Estimate.
Quarterly total revenue of $897.4 million, exhibits an annualized
growth of 11.5%, but fell short of the Zacks Consensus Estimate
of $904 million.
Quarterly total operating expenses were $650.5 million
compared with $605.5 million in the year-ago quarter. Operating
income, in the reported quarter, was around $246.9 million
compared with $199.2 million in the year-ago quarter. SIRIUS XM
posted a record-high first-quarter adjusted EBITDA of $261.9
million compared with $208.2 million in the prior-year
During the first quarter of 2013, SIRIUS XM generated $168.9
million of cash from operations compared with $40 million in the
prior-year quarter. Free cash flow was a first-quarter
record-high of $142.5 million compared with a mere $14.8 million
in the year-ago quarter.
At the end of the first quarter of 2013, SIRIUS XM had nearly
$206.7 million of cash and cash equivalents and $2,179.2 million
of outstanding debt compared with $521 million of cash and cash
equivalents and $2,226.3 million of outstanding debt at the end
of 2012. At the end of the reported quarter, the
debt-to-capitalization ratio was 0.37 compared with 0.36 at the
end of 2012.
Segment Wise Results
Quarterly Subscriber revenues were $783.3 million, up 11.9%
year over year. Advertising revenues were $20.2 million, up 8.3%
year over year. Equipment revenues were $18.2 million, up 7.1%
year over year. Other revenues were $75.7 million, up 9.9% year
During the first quarter of 2013, SIRIUS XM added 452,890 (up
11.9% year over year) net subscribers, which raised the company's
total subscriber base to 24,353,226 at the end of Mar 31, 2013,
up 9.2% year over year. Payment category wise, Self-Pay
subscribers were 19,874,660 (up 9.2% year over year) while Paid
Promotional subscribers were 4,478,566 (up 9.5% year over
Important Operating Metrics
In the first quarter of 2013, ARPU came in at $12.05 compared
with $11.77 in the year-ago quarter. Average self-pay monthly
churn rate was 2% compared with 1.9% in the prior-year quarter.
Customer Conversion rate came in at 44% compared with 45% in the
prior-year quarter. Subscriber acquisition cost stood at $51
compared with $60 in the year-ago quarter.
Management projects full-year 2013 revenues of SIRIUS XM to be
approximately $3.7 billion. Free cash flow for 2013 will be $915
million. Self-pay net subscriber additions will be approximately
1.6 million. The company estimated that it will add 1.4 million
net new subscribers in 2013. Adjusted EBITDA, in 2013, will be
more than $1.1 billion.
Other Stocks to Consider
SIRIUS XM, the largest broadcast radio service provider in the
U.S., currently has a Zacks Rank #3 (Hold). Other major
entertainment broadcasters include
Sinclair Broadcast Group Inc.
Phoenix New Media Ltd.
CTC Media Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
CTC MEDIA INC (CTCM): Free Stock Analysis
PHOENIX NEW MED (FENG): Free Stock Analysis
SINCLAIR BROADC (SBGI): Free Stock Analysis
SIRIUS XM RADIO (SIRI): Free Stock Analysis
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