SIRIUS XM Radio Inc.
) declared mixed financial results for the fourth quarter of
2012. Quarterly GAAP net income was $156.3 million or 2 cents per
share compared with a net income of $71 million or 1 cent per
share in the prior-year quarter.
Fourth-quarter earnings per share of 2 cents were exactly in
line with the Zacks Consensus Estimate. Quarterly total revenue
of $867.4 million, exhibits an annualized growth of 14%, but fell
short of the Zacks Consensus Estimate of $900 million.
Quarterly total operating expenses were $679.3 million
compared with $629.3 million in the year-ago quarter. Operating
income, in the reported quarter, was around $213.1 million
compared with $154.5 million in the year-ago quarter. SIRIUS XM
posted quarterly adjusted EBITDA of $230.5 million compared with
$167.3 million in the prior-year quarter.
During fiscal 2012, SIRIUS XM generated $806.8 million of cash
from operations compared with $543.6 million of cash from
operations in the prior-year period. Free cash flow in fiscal
2012 was $709.5 million compared with $406.2 million in fiscal
At the end of fiscal 2012, SIRIUS XM had nearly $521 million
of cash and cash equivalents and $2,226.3 million of outstanding
debt compared with $774 million of cash and cash equivalents and
$2,685.2 million of outstanding debt at the end of 2011. At the
end of 2012, debt-to-capitalization ratio was 0.36 compared with
0.79 at the end of 2011.
Segment Wise Results
Quarterly Subscriber revenue was $774.5 million, up 15.2% year
over year. Advertising revenue was $22.4 million, up 8.6% year
over year. Equipment revenue was $22.3 million, down 1.7% year
over year. Other revenue was $73.2 million, up 6.9% year over
During the fourth quarter of 2012, SIRIUS XM added 534,953
(down 1.5% year over year) net subscribers, which raised the
company's total subscriber base to 23,900,336 at the end of Dec
31, 2012, up 9.2% year over year. Payment category wise, Self-Pay
subscriber was 19,570,274 (up 9.3% year over year) while Paid
Promotional subscriber was 4,330,062 (up 8.7% year over
Important Operating Metrics
In the fourth quarter of 2012, ARPU came in at $12.12 compared
with $11.61 in the year-ago quarter. Average self-pay monthly
churn rate was 1.8% compared with 1.9% in the prior-year quarter.
Customer Conversion rate came in at 44%, remaining same year over
year. Subscriber acquisition cost stood at $54 compared with $55
in the year-ago quarter.
Management projects full-year 2013 revenue of SIRIUS XM to be
approximately $3.7 billion. Free cash flow for 2013 will be $900
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, is likely
to reach $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
) with a Zacks Rank #1 (Strong Buy),
LIN TV Corp.
) with a Zacks Rank #2 (Buy) and
Discovery Communications Inc.
) with a Zacks Rank #2 (Buy).
DISCOVERY COM-A (DISCA): Free Stock Analysis
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SIRIUS XM RADIO (SIRI): Free Stock Analysis
LIN TV CORP -A (TVL): Free Stock Analysis
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