Sirius XM Holdings Inc.
) reported record EBITDA in its financial results for the fourth
quarter of 2013 despite witnessing significant subscriber loss.
Quarterly GAAP net income came in at $65.2 million or 1 cent per
share compared with $156.2 million or 2 cent per share in the
prior-year quarter. Fourth-quarter earnings per share of a penny
fell below the Zacks Consensus Estimate of 2 cents. Quarterly
total revenue of $1,000 million exhibits annualized growth of
12.1% and also outpaced the Zacks Consensus Estimate of $979
Quarterly total operating expenses were $754.7 million compared
with $679.3 million in the year-ago quarter. Operating income, in
the reported quarter, was around $245.4 million compared with
$213.1 million in the prior-year quarter.
SIRIUS XM posted record fourth-quarter adjusted EBITDA growth
of 41%, bringing the figure to $326 million. During the fourth
quarter of 2013, the company repurchased common stock worth $160
At the end of 2013, SIRIUS XM generated $1,102.8 million of cash
from operations compared with $806.8 million at the end of 2012.
Quarterly free cash flow was $929.2 million against $709.5
million in the year-ago quarter.
At quarter end, SIRIUS XM had nearly $134.8 million of cash and
cash equivalents and $3,093.8 million of outstanding debt
compared with $520.9 million and $2,222.1 million, respectively,
at the end of 2012. At the end of the reported quarter, the
debt-to-capitalization ratio was 0.53 against 0.35 at the end of
Segment Wise Results
Quarterly Subscriber revenues were $852.5 million, up 10.1% year
over year. Advertising revenues stood at $25.4 million, up 13.4%
year over year. Equipment revenues were $26 million, up 16.6%
year over year. Other revenues were $96.1 million, up 31.3% year
During the fourth quarter of 2013, SIRIUS XM lost 22,756 (down
104.3% year over year) net subscribers, which reached the
company's total subscriber base to 25,559,310 at the end of 2013,
up 7.1% year over year. Payment category wise, Self-Pay
subscribers were 21,081,817 (up 7.6% year over year) while Paid
Promotional subscribers were 4,477,493 (up 4.7% year over year).
Important Operating Metrics
In the fourth quarter of 2013, average revenue per user came in
at $12.46 compared with $12.12 in the year-ago quarter. Average
self-pay monthly churn rate was 1.9% against 1.8% in the
prior-year quarter. New Vehicle Customer Conversion rate came in
at 42% versus 44% in the year-earlier quarter. Subscriber
acquisition cost stood at $44 compared with $54 in the year-ago
Management expects full-year 2014 revenues to cross the $4
billion mark. Free cash flow will likely be $1.1 billion. The
company estimated that it will add 1.25 million net new
subscribers in 2014. Adjusted EBITDA is projected to be around
Other Stocks to Consider
SIRIUS XM, the leading broadcast radio service provider in the
U.S., currently has a Zacks Rank #3 (Hold). Other TV/Radio
broadcasters that also warrant a look include
Phoenix New Media Ltd.
LIN Media LLC.
Cumulus Media Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
CUMULUS MEDIA (CMLS): Free Stock Analysis
PHOENIX NEW MED (FENG): Free Stock Analysis
LIN MEDIA LLC (LIN): Free Stock Analysis
SIRIUS XM HLDGS (SIRI): Free Stock Analysis
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