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Sirius XM lower as major auto sales decline
http://www.seekingalpha.com/news/3283929
I do believe we will see $6. The question I have is when? By end of August I'd suspect. Will it hold? To be determined.
I am optimistic. Go SIRI
I agree, look forward for what's to come
Amended Complaint Shows Government Lied To Public About GSEs $FNMA
http://www.seekingalpha.com/article/4092545
I agree, we have definitely broke the ground level. Look forward to what the future holds. Pandora in our sights
SiriusXM Reports Second Quarter 2017 Results
Source: PR Newswire (US)
NEW YORK, July 27, 2017 /PRNewswire/ -- SiriusXM today announced second quarter 2017 operating and financial results, including record revenue of $1.3 billion, up 9% versus the prior year period.
SIRIUS XM logo. (PRNewsFoto/SIRIUS XM Radio)
Net income totaled $202 million in the second quarter 2017, up 16% from $175 million in the second quarter 2016. Net income per diluted common share grew 22% to $0.043 in the second quarter 2017, compared to $0.035 in the second quarter 2016. Adjusted EBITDA grew 12% in the second quarter 2017 to a record $522 million, compared to $468 million in the second quarter of 2016. Operating cash flow in the second quarter 2017 increased 12% to $483 million, compared to $432 million in the second quarter 2016. Free cash flow in the second quarter 2017 grew 6% to $417 million, compared to $395 million in the second quarter 2016.
"In the second quarter, SiriusXM continued its strong track record of execution, and demand for our premium content bundle pushed our listener base to an all-time high of more than 32 million paying subscribers. We are pleased to raise our full-year guidance for net self-pay subscriber additions, revenue, and adjusted EBITDA. We also made tremendous progress on strategic initiatives in the second quarter with the closing of our recapitalization of SiriusXM Canada, our acquisition of Automatic Labs, and our agreement to acquire a minority stake in Pandora Media," said Jim Meyer, Chief Executive Officer, SiriusXM.
"Our mission and passion is to deliver to millions of subscribers nationwide the best content anywhere in an easy, accessible way. We were thrilled to launch The Beatles Channel, the first official full-time radio channel featuring the band and its individual members, and listeners love it. You can now listen to The Beatles and our channels by simply asking your Amazon Alexa device to play SiriusXM. And we continue to award lucky subscribers with exclusive, SiriusXM-only live shows such as last week's critically acclaimed Guns N' Roses performance at the Apollo Theater," added Meyer.
SECOND QUARTER 2017 HIGHLIGHTS
SiriusXM Reaches 32 Million Subscribers. The company added 466,000 net new self-pay subscribers in the second quarter 2017 to end with nearly 26.7 million self-pay subscribers. Total net additions in the quarter were 445,000, after giving effect to the decline of approximately 20,000 paid promotional subscribers. The company ended the quarter with approximately 32.0 million total subscribers.
Strong Quarterly Revenue and ARPU. Second quarter revenue climbed 9% to a record $1.3 billion. The growth was driven by a 5% increase in subscribers and a 3% increase in average revenue per user (ARPU) to $13.22, a record high.
Record Adjusted EBITDA. Adjusted EBITDA in the second quarter of 2017 reached a record $522 million, up 12% from $468 million in the second quarter of 2016. Adjusted EBITDA margin was 38.7% in the second quarter of 2017, a 90 basis point increase from 37.8% in the second quarter 2016.
Free Cash Flow of $417 Million. Free cash flow for the second quarter 2017 totaled $417 million, up 6% from $395 million in the second quarter 2016. Operating cash flow for the second quarter 2017 totaled $483 million, up 12% from the second quarter 2016.
"In the second quarter, we deployed nearly $1.25 billion of capital in stockholder returns and strategic investments. We spent $477 million to repurchase 94 million shares of our common stock. We also returned $47 million in cash to our stockholders in the form of dividends in the quarter, bringing total capital returned to stockholders to $524 million in the second quarter. During the second quarter, we invested $280 million to complete the acquisition of Automatic Labs and phase one of our Pandora investment. Additionally, we invested $440 million in debt and equity securities of SiriusXM Canada in connection with the recapitalization of that company," noted David Frear, Chief Financial Officer, SiriusXM.
"In July, we closed on $2 billion of debt issuances at very attractive rates and used the proceeds to call existing notes and pay down our revolving credit line. Pro forma for these transactions, our debt to adjusted EBITDA was just 3.2 times at June 30, 2017, and we had cash and undrawn revolver capacity exceeding $1.6 billion," added Frear.
2017 GUIDANCE
The company increased its 2017 year-end guidance for self-pay net subscriber additions, revenue, and adjusted EBITDA. SiriusXM's guidance for 2017 free cash flow 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 $5.375 billion,
Adjusted EBITDA of approximately $2.05 billion, and
Free cash flow of approximately $1.5 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 additional 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.
SECOND QUARTER 2017 RESULTS
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
(in thousands, except per share data)
2017
2016
2017
2016
Revenue:
Subscriber revenue
$
1,111,011
$
1,033,284
$
2,189,268
$
2,042,966
Advertising revenue
40,178
33,521
76,194
65,062
Equipment revenue
29,674
27,858
59,332
54,979
Other revenue
166,706
140,903
316,841
273,569
Total revenue
1,347,569
1,235,566
2,641,635
2,436,576
Operating expenses:
Cost of services:
Revenue share and royalties
292,893
264,385
570,193
516,129
Programming and content
96,255
83,645
191,799
168,745
Customer service and billing
95,324
93,712
192,099
190,579
Satellite and transmission
19,603
34,847
40,179
58,385
Cost of equipment
9,371
9,728
16,283
19,507
Subscriber acquisition costs
125,154
128,956
252,642
261,405
Sales and marketing
106,707
91,358
203,616
180,084
Engineering, design and development
27,783
18,893
51,600
38,334
General and administrative
84,607
81,178
162,808
158,683
Depreciation and amortization
73,519
66,708
150,223
134,335
Total operating expenses
931,216
873,410
1,831,442
1,726,186
Income from operations
416,353
362,156
810,193
710,390
Other income (expense):
Interest expense
(82,794)
(83,396)
(164,451)
(161,796)
Other (expense) income
(11,937)
2,515
(3,074)
13,363
Total other expense
(94,731)
(80,881)
(167,525)
(148,433)
Income before income taxes
321,622
281,275
642,668
561,957
Income tax expense
(119,513)
(106,310)
(233,486)
(214,552)
Net income
$
202,109
$
174,965
$
409,182
$
347,405
Foreign currency translation adjustment, net of tax
2,763
(15)
2,746
434
Total comprehensive income
$
204,872
$
174,950
$
411,928
$
347,839
Net income per common share:
Basic
$
0.04
$
0.04
$
0.09
$
0.07
Diluted
$
0.04
$
0.04
$
0.09
$
0.07
Weighted average common shares outstanding:
Basic
4,652,426
4,938,820
4,681,223
5,002,070
Diluted
4,735,592
4,988,247
4,759,741
5,049,571
Dividends declared per common share
$
0.01
$
—
$
0.02
$
—
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
June 30, 2017
December 31, 2016
ASSETS
(unaudited)
Current assets:
Cash and cash equivalents
$
42,738
$
213,939
Receivables, net
234,352
223,029
Inventory, net
19,581
20,363
Related party current assets
12,085
6,170
Prepaid expenses and other current assets
186,481
179,148
Total current assets
495,237
642,649
Property and equipment, net
1,410,265
1,398,693
Intangible assets, net
2,536,675
2,544,801
Goodwill
2,290,240
2,205,107
Related party long-term assets
449,417
8,918
Long-term investment
173,104
—
Deferred tax assets
873,024
1,084,330
Other long-term assets
119,742
119,097
Total assets
$
8,347,704
$
8,003,595
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
663,892
$
713,034
Accrued interest
107,591
114,633
Current portion of deferred revenue
1,864,643
1,832,609
Current maturities of long-term debt
5,160
5,485
Related party current liabilities
2,840
2,840
Total current liabilities
2,644,126
2,668,601
Deferred revenue
180,647
176,319
Long-term debt
6,453,757
5,842,764
Related party long-term liabilities
6,535
7,955
Deferred tax liabilities
6,418
6,418
Other long-term liabilities
97,911
93,553
Total liabilities
9,389,394
8,795,610
Stockholders' (deficit) equity:
Common stock, par value $0.001; 9,000,000 shares authorized; 4,628,821 and 4,746,047 shares issued; 4,626,078 and 4,740,947 outstanding at June 30, 2017 and December 31, 2016, respectively
4,628
4,745
Accumulated other comprehensive income (loss), net of tax
2,607
(139)
Additional paid-in capital
2,448,057
3,117,666
Treasury stock, at cost; 2,743 and 5,100 shares of common stock at June 30, 2017 and December 31, 2016, respectively
(14,783)
(22,906)
Accumulated deficit
(3,482,199)
(3,891,381)
Total stockholders' (deficit) equity
(1,041,690)
(792,015)
Total liabilities and stockholders' (deficit) equity
$
8,347,704
$
8,003,595
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Six Months Ended June 30,
(in thousands)
2017
2016
Cash flows from operating activities:
Net income
$
409,182
$
347,405
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
150,223
134,335
Non-cash interest expense, net of amortization of premium
4,231
4,230
Provision for doubtful accounts
27,377
25,707
Amortization of deferred income related to equity method investment
(1,388)
(1,388)
Loss (gain) on unconsolidated entity investments, net
2,183
(8,451)
Dividend received from unconsolidated entity investment
3,606
7,160
Loss on disposal of assets
—
12,912
Share-based payment expense
59,697
47,870
Deferred income taxes
220,415
202,170
Changes in operating assets and liabilities:
Receivables
(38,063)
(16,305)
Inventory
2,492
(3,981)
Related party, net
(5,756)
(2,191)
Prepaid expenses and other current assets
(6,617)
(14,052)
Other long-term assets
5,937
15,081
Accounts payable and accrued expenses
(69,078)
(12,869)
Accrued interest
(7,042)
5,448
Deferred revenue
30,779
49,288
Other long-term liabilities
4,358
1,919
Net cash provided by operating activities
792,536
794,288
Cash flows from investing activities:
Additions to property and equipment
(119,517)
(67,172)
Purchases of restricted and other investments
(7,355)
(3,953)
Acquisition of business, net of cash acquired
(107,488)
—
Investment in convertible preferred stock
(172,500)
—
Loans to related parties
(130,794)
—
Payments to acquire additional ownership in related parties
(130,026)
—
Net cash used in investing activities
(667,680)
(71,125)
Cash flows from financing activities:
Taxes paid in lieu of shares issued for stock-based compensation
(22,595)
(5,379)
Net proceeds (repayments) related to revolving credit facility
610,000
(340,000)
Proceeds from long-term borrowings, net of costs
—
987,294
Principal payments of long-term borrowings
(6,000)
(4,831)
Common stock repurchased and retired
(783,824)
(995,632)
Dividends paid
(93,638)
—
Net cash used in financing activities
(296,057)
(358,548)
Net (decrease) increase in cash and cash equivalents
(171,201)
364,615
Cash and cash equivalents at beginning of period
213,939
111,838
Cash and cash equivalents at end of period
$
42,738
$
476,453
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 June 30, 2017 compared to June 30, 2016:
As of June 30
2017 vs 2016 Change
(in thousands)
2017
2016
Amount
%
Self-pay subscribers
26,675
25,143
1,532
6
%
Paid promotional subscribers
5,372
5,503
(131)
(2)
%
Ending subscribers (a)
32,048
30,646
1,402
5
%
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 six months ended June 30, 2017 and 2016:
2017 vs 2016 Change
(in thousands, except per
subscriber and per installation
amounts)
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
Three Months
Six Months
2017
2016
2017
2016
Amount
%
Amount
%
Self-pay subscribers
466
507
725
855
(41)
(8)
%
(130)
(15)
%
Paid promotional subscribers
(20)
80
(23)
197
(100)
(125)
%
(220)
(112)
%
Net additions (a)
445
587
702
1,052
(142)
(24)
%
(350)
(33)
%
Daily weighted average number of subscribers
31,746
30,329
31,559
30,044
1,417
5
%
1,515
5
%
Average self-pay monthly churn
1.7
%
1.8
%
1.8
%
1.8
%
(0.1)
%
(6)
%
0
%
0
%
New vehicle consumer conversion rate
40
%
40
%
40
%
39
%
0
%
0
%
1
%
3
%
ARPU
$
13.22
$
12.78
$
13.08
$
12.72
$
0.44
3
%
$
0.36
3
%
SAC, per installation
$
31
$
32
$
30
$
33
$
(1)
(3)
%
$
(3)
(9)
%
Customer service and billing expenses, per average subscriber
$
0.94
$
0.97
$
0.95
$
0.99
$
(0.03)
(3)
%
$
(0.04)
(4)
%
Adjusted EBITDA
$
521,936
$
467,766
$
1,023,739
$
909,133
$
54,170
12
%
$
114,606
13
%
Free cash flow
$
416,725
$
394,946
$
665,664
$
723,163
$
21,779
6
%
$
(57,499)
(8)
%
Diluted weighted average common shares outstanding (GAAP)
4,735,592
4,988,247
4,759,741
5,049,571
(252,655)
(5)
%
(289,830)
(6)
%
(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 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 June 30,
For the Six Months Ended June 30,
(in thousands)
2017
2016
2017
2016
Net income:
$
202,109
$
174,965
$
409,182
$
347,405
Add back items excluded from Adjusted EBITDA:
Purchase price accounting adjustments:
Revenues
1,813
1,813
3,626
3,626
Loss on disposal of assets
—
12,912
—
12,912
Share-based payment expense (1)
30,251
24,177
59,697
47,870
Depreciation and amortization
73,519
66,708
150,223
134,335
Interest expense
82,794
83,396
164,451
161,796
Other expense (income)
11,937
(2,515)
3,074
(13,363)
Income tax expense
119,513
106,310
233,486
214,552
Adjusted EBITDA
$
521,936
$
467,766
$
1,023,739
$
909,133
(1) Allocation of share-based payment expense
For the Three Months Ended June 30,
For the Six Months Ended June 30,
(in thousands)
2017
2016
2017
2016
Programming and content
$
7,063
$
4,057
$
13,564
$
8,551
Customer service and billing
1,029
819
2,040
1,625
Satellite and transmission
1,084
1,059
2,271
2,075
Sales and marketing
5,802
4,747
11,482
9,559
Engineering, design and development
3,686
2,688
7,240
5,556
General and administrative
11,587
10,807
23,100
20,504
Total share-based payment expense
$
30,251
$
24,177
$
59,697
$
47,870
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 June 30,
For the Six Months Ended June 30,
(in thousands, except per subscriber amounts)
2017
2016
2017
2016
Subscriber revenue, excluding connected vehicle services
$
1,090,356
$
1,011,422
$
2,148,410
$
1,996,406
Add: advertising revenue
40,178
33,521
76,194
65,062
Add: other subscription-related revenue
128,179
117,522
252,647
231,593
$
1,258,713
$
1,162,465
$
2,477,251
$
2,293,061
Daily weighted average number of subscribers
31,746
30,329
31,559
30,044
ARPU
$
13.22
$
12.78
$
13.08
$
12.72
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 June 30,
For the Six Months Ended June 30,
(in thousands, except per subscriber amounts)
2017
2016
2017
2016
Customer service and billing expenses, excluding connected vehicle services
$
90,388
$
89,210
$
182,508
$
180,381
Less: share-based payment expense
(1,029)
(819)
(2,040)
(1,625)
$
89,359
$
88,391
$
180,468
$
178,756
Daily weighted average number of subscribers
31,746
30,329
31,559
30,044
Customer service and billing expenses, per average subscriber
$
0.94
$
0.97
$
0.95
$
0.99
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 June 30,
For the Six Months Ended June 30,
(in thousands)
2017
2016
2017
2016
Cash Flow information
Net cash provided by operating activities
$
483,211
$
432,102
$
792,536
$
794,288
Net cash used in investing activities
$
(607,294)
$
(37,156)
$
(667,680)
$
(71,125)
Net cash used in financing activities
$
(63,667)
$
(20,445)
$
(296,057)
$
(358,548)
Free Cash Flow
Net cash provided by operating activities
$
483,211
$
432,102
$
792,536
$
794,288
Additions to property and equipment
(66,152)
(37,001)
(119,517)
(67,172)
Purchases of restricted and other investments
(334)
(155)
(7,355)
(3,953)
Free cash flow
$
416,725
$
394,946
$
665,664
$
723,163
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 June 30,
For the Six Months Ended June 30,
(in thousands, except per installation amounts)
2017
2016
2017
2016
Subscriber acquisition costs
$
125,154
$
128,956
$
252,642
$
261,405
Less: margin from sales of radios and accessories, excluding connected vehicle
(20,285)
(18,130)
(43,031)
(35,472)
$
104,869
$
110,826
$
209,611
$
225,933
Installations
3,362
3,476
6,946
6,906
SAC, per installation
$
31
$
32
$
30
$
33
About SiriusXM
Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world's largest radio company measured by revenue and has approximately 32.0 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™, SiriusXM Travel Link, NavTraffic®, NavWeather™. SiriusXM delivers weather, data and information services to aircraft and boats through SiriusXM Aviation™ and SiriusXM Marine™. 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 Stevens
212-901-6718
Hooper.stevens@siriusxm.com
Patrick Reilly
212-901-6646
patrick.reilly@siriusxm.com
View original content with multimedia:http://www.prnewswire.com/news-releases/siriusxm-reports-second-quarter-2017-results-300494919.html
SOURCE Sirius XM Holdings Inc.
Copyright 2017 PR Newswire
SiriusXM Reports Second Quarter 2017 Results
Source: PR Newswire (US)
NEW YORK, July 27, 2017 /PRNewswire/ -- SiriusXM today announced second quarter 2017 operating and financial results, including record revenue of $1.3 billion, up 9% versus the prior year period.
SIRIUS XM logo. (PRNewsFoto/SIRIUS XM Radio)
Net income totaled $202 million in the second quarter 2017, up 16% from $175 million in the second quarter 2016. Net income per diluted common share grew 22% to $0.043 in the second quarter 2017, compared to $0.035 in the second quarter 2016. Adjusted EBITDA grew 12% in the second quarter 2017 to a record $522 million, compared to $468 million in the second quarter of 2016. Operating cash flow in the second quarter 2017 increased 12% to $483 million, compared to $432 million in the second quarter 2016. Free cash flow in the second quarter 2017 grew 6% to $417 million, compared to $395 million in the second quarter 2016.
"In the second quarter, SiriusXM continued its strong track record of execution, and demand for our premium content bundle pushed our listener base to an all-time high of more than 32 million paying subscribers. We are pleased to raise our full-year guidance for net self-pay subscriber additions, revenue, and adjusted EBITDA. We also made tremendous progress on strategic initiatives in the second quarter with the closing of our recapitalization of SiriusXM Canada, our acquisition of Automatic Labs, and our agreement to acquire a minority stake in Pandora Media," said Jim Meyer, Chief Executive Officer, SiriusXM.
"Our mission and passion is to deliver to millions of subscribers nationwide the best content anywhere in an easy, accessible way. We were thrilled to launch The Beatles Channel, the first official full-time radio channel featuring the band and its individual members, and listeners love it. You can now listen to The Beatles and our channels by simply asking your Amazon Alexa device to play SiriusXM. And we continue to award lucky subscribers with exclusive, SiriusXM-only live shows such as last week's critically acclaimed Guns N' Roses performance at the Apollo Theater," added Meyer.
SECOND QUARTER 2017 HIGHLIGHTS
SiriusXM Reaches 32 Million Subscribers. The company added 466,000 net new self-pay subscribers in the second quarter 2017 to end with nearly 26.7 million self-pay subscribers. Total net additions in the quarter were 445,000, after giving effect to the decline of approximately 20,000 paid promotional subscribers. The company ended the quarter with approximately 32.0 million total subscribers.
Strong Quarterly Revenue and ARPU. Second quarter revenue climbed 9% to a record $1.3 billion. The growth was driven by a 5% increase in subscribers and a 3% increase in average revenue per user (ARPU) to $13.22, a record high.
Record Adjusted EBITDA. Adjusted EBITDA in the second quarter of 2017 reached a record $522 million, up 12% from $468 million in the second quarter of 2016. Adjusted EBITDA margin was 38.7% in the second quarter of 2017, a 90 basis point increase from 37.8% in the second quarter 2016.
Free Cash Flow of $417 Million. Free cash flow for the second quarter 2017 totaled $417 million, up 6% from $395 million in the second quarter 2016. Operating cash flow for the second quarter 2017 totaled $483 million, up 12% from the second quarter 2016.
"In the second quarter, we deployed nearly $1.25 billion of capital in stockholder returns and strategic investments. We spent $477 million to repurchase 94 million shares of our common stock. We also returned $47 million in cash to our stockholders in the form of dividends in the quarter, bringing total capital returned to stockholders to $524 million in the second quarter. During the second quarter, we invested $280 million to complete the acquisition of Automatic Labs and phase one of our Pandora investment. Additionally, we invested $440 million in debt and equity securities of SiriusXM Canada in connection with the recapitalization of that company," noted David Frear, Chief Financial Officer, SiriusXM.
"In July, we closed on $2 billion of debt issuances at very attractive rates and used the proceeds to call existing notes and pay down our revolving credit line. Pro forma for these transactions, our debt to adjusted EBITDA was just 3.2 times at June 30, 2017, and we had cash and undrawn revolver capacity exceeding $1.6 billion," added Frear.
2017 GUIDANCE
The company increased its 2017 year-end guidance for self-pay net subscriber additions, revenue, and adjusted EBITDA. SiriusXM's guidance for 2017 free cash flow 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 $5.375 billion,
Adjusted EBITDA of approximately $2.05 billion, and
Free cash flow of approximately $1.5 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 additional 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.
SECOND QUARTER 2017 RESULTS
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
(in thousands, except per share data)
2017
2016
2017
2016
Revenue:
Subscriber revenue
$
1,111,011
$
1,033,284
$
2,189,268
$
2,042,966
Advertising revenue
40,178
33,521
76,194
65,062
Equipment revenue
29,674
27,858
59,332
54,979
Other revenue
166,706
140,903
316,841
273,569
Total revenue
1,347,569
1,235,566
2,641,635
2,436,576
Operating expenses:
Cost of services:
Revenue share and royalties
292,893
264,385
570,193
516,129
Programming and content
96,255
83,645
191,799
168,745
Customer service and billing
95,324
93,712
192,099
190,579
Satellite and transmission
19,603
34,847
40,179
58,385
Cost of equipment
9,371
9,728
16,283
19,507
Subscriber acquisition costs
125,154
128,956
252,642
261,405
Sales and marketing
106,707
91,358
203,616
180,084
Engineering, design and development
27,783
18,893
51,600
38,334
General and administrative
84,607
81,178
162,808
158,683
Depreciation and amortization
73,519
66,708
150,223
134,335
Total operating expenses
931,216
873,410
1,831,442
1,726,186
Income from operations
416,353
362,156
810,193
710,390
Other income (expense):
Interest expense
(82,794)
(83,396)
(164,451)
(161,796)
Other (expense) income
(11,937)
2,515
(3,074)
13,363
Total other expense
(94,731)
(80,881)
(167,525)
(148,433)
Income before income taxes
321,622
281,275
642,668
561,957
Income tax expense
(119,513)
(106,310)
(233,486)
(214,552)
Net income
$
202,109
$
174,965
$
409,182
$
347,405
Foreign currency translation adjustment, net of tax
2,763
(15)
2,746
434
Total comprehensive income
$
204,872
$
174,950
$
411,928
$
347,839
Net income per common share:
Basic
$
0.04
$
0.04
$
0.09
$
0.07
Diluted
$
0.04
$
0.04
$
0.09
$
0.07
Weighted average common shares outstanding:
Basic
4,652,426
4,938,820
4,681,223
5,002,070
Diluted
4,735,592
4,988,247
4,759,741
5,049,571
Dividends declared per common share
$
0.01
$
—
$
0.02
$
—
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
June 30, 2017
December 31, 2016
ASSETS
(unaudited)
Current assets:
Cash and cash equivalents
$
42,738
$
213,939
Receivables, net
234,352
223,029
Inventory, net
19,581
20,363
Related party current assets
12,085
6,170
Prepaid expenses and other current assets
186,481
179,148
Total current assets
495,237
642,649
Property and equipment, net
1,410,265
1,398,693
Intangible assets, net
2,536,675
2,544,801
Goodwill
2,290,240
2,205,107
Related party long-term assets
449,417
8,918
Long-term investment
173,104
—
Deferred tax assets
873,024
1,084,330
Other long-term assets
119,742
119,097
Total assets
$
8,347,704
$
8,003,595
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
663,892
$
713,034
Accrued interest
107,591
114,633
Current portion of deferred revenue
1,864,643
1,832,609
Current maturities of long-term debt
5,160
5,485
Related party current liabilities
2,840
2,840
Total current liabilities
2,644,126
2,668,601
Deferred revenue
180,647
176,319
Long-term debt
6,453,757
5,842,764
Related party long-term liabilities
6,535
7,955
Deferred tax liabilities
6,418
6,418
Other long-term liabilities
97,911
93,553
Total liabilities
9,389,394
8,795,610
Stockholders' (deficit) equity:
Common stock, par value $0.001; 9,000,000 shares authorized; 4,628,821 and 4,746,047 shares issued; 4,626,078 and 4,740,947 outstanding at June 30, 2017 and December 31, 2016, respectively
4,628
4,745
Accumulated other comprehensive income (loss), net of tax
2,607
(139)
Additional paid-in capital
2,448,057
3,117,666
Treasury stock, at cost; 2,743 and 5,100 shares of common stock at June 30, 2017 and December 31, 2016, respectively
(14,783)
(22,906)
Accumulated deficit
(3,482,199)
(3,891,381)
Total stockholders' (deficit) equity
(1,041,690)
(792,015)
Total liabilities and stockholders' (deficit) equity
$
8,347,704
$
8,003,595
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Six Months Ended June 30,
(in thousands)
2017
2016
Cash flows from operating activities:
Net income
$
409,182
$
347,405
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
150,223
134,335
Non-cash interest expense, net of amortization of premium
4,231
4,230
Provision for doubtful accounts
27,377
25,707
Amortization of deferred income related to equity method investment
(1,388)
(1,388)
Loss (gain) on unconsolidated entity investments, net
2,183
(8,451)
Dividend received from unconsolidated entity investment
3,606
7,160
Loss on disposal of assets
—
12,912
Share-based payment expense
59,697
47,870
Deferred income taxes
220,415
202,170
Changes in operating assets and liabilities:
Receivables
(38,063)
(16,305)
Inventory
2,492
(3,981)
Related party, net
(5,756)
(2,191)
Prepaid expenses and other current assets
(6,617)
(14,052)
Other long-term assets
5,937
15,081
Accounts payable and accrued expenses
(69,078)
(12,869)
Accrued interest
(7,042)
5,448
Deferred revenue
30,779
49,288
Other long-term liabilities
4,358
1,919
Net cash provided by operating activities
792,536
794,288
Cash flows from investing activities:
Additions to property and equipment
(119,517)
(67,172)
Purchases of restricted and other investments
(7,355)
(3,953)
Acquisition of business, net of cash acquired
(107,488)
—
Investment in convertible preferred stock
(172,500)
—
Loans to related parties
(130,794)
—
Payments to acquire additional ownership in related parties
(130,026)
—
Net cash used in investing activities
(667,680)
(71,125)
Cash flows from financing activities:
Taxes paid in lieu of shares issued for stock-based compensation
(22,595)
(5,379)
Net proceeds (repayments) related to revolving credit facility
610,000
(340,000)
Proceeds from long-term borrowings, net of costs
—
987,294
Principal payments of long-term borrowings
(6,000)
(4,831)
Common stock repurchased and retired
(783,824)
(995,632)
Dividends paid
(93,638)
—
Net cash used in financing activities
(296,057)
(358,548)
Net (decrease) increase in cash and cash equivalents
(171,201)
364,615
Cash and cash equivalents at beginning of period
213,939
111,838
Cash and cash equivalents at end of period
$
42,738
$
476,453
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 June 30, 2017 compared to June 30, 2016:
As of June 30
2017 vs 2016 Change
(in thousands)
2017
2016
Amount
%
Self-pay subscribers
26,675
25,143
1,532
6
%
Paid promotional subscribers
5,372
5,503
(131)
(2)
%
Ending subscribers (a)
32,048
30,646
1,402
5
%
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 six months ended June 30, 2017 and 2016:
2017 vs 2016 Change
(in thousands, except per
subscriber and per installation
amounts)
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
Three Months
Six Months
2017
2016
2017
2016
Amount
%
Amount
%
Self-pay subscribers
466
507
725
855
(41)
(8)
%
(130)
(15)
%
Paid promotional subscribers
(20)
80
(23)
197
(100)
(125)
%
(220)
(112)
%
Net additions (a)
445
587
702
1,052
(142)
(24)
%
(350)
(33)
%
Daily weighted average number of subscribers
31,746
30,329
31,559
30,044
1,417
5
%
1,515
5
%
Average self-pay monthly churn
1.7
%
1.8
%
1.8
%
1.8
%
(0.1)
%
(6)
%
0
%
0
%
New vehicle consumer conversion rate
40
%
40
%
40
%
39
%
0
%
0
%
1
%
3
%
ARPU
$
13.22
$
12.78
$
13.08
$
12.72
$
0.44
3
%
$
0.36
3
%
SAC, per installation
$
31
$
32
$
30
$
33
$
(1)
(3)
%
$
(3)
(9)
%
Customer service and billing expenses, per average subscriber
$
0.94
$
0.97
$
0.95
$
0.99
$
(0.03)
(3)
%
$
(0.04)
(4)
%
Adjusted EBITDA
$
521,936
$
467,766
$
1,023,739
$
909,133
$
54,170
12
%
$
114,606
13
%
Free cash flow
$
416,725
$
394,946
$
665,664
$
723,163
$
21,779
6
%
$
(57,499)
(8)
%
Diluted weighted average common shares outstanding (GAAP)
4,735,592
4,988,247
4,759,741
5,049,571
(252,655)
(5)
%
(289,830)
(6)
%
(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 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 June 30,
For the Six Months Ended June 30,
(in thousands)
2017
2016
2017
2016
Net income:
$
202,109
$
174,965
$
409,182
$
347,405
Add back items excluded from Adjusted EBITDA:
Purchase price accounting adjustments:
Revenues
1,813
1,813
3,626
3,626
Loss on disposal of assets
—
12,912
—
12,912
Share-based payment expense (1)
30,251
24,177
59,697
47,870
Depreciation and amortization
73,519
66,708
150,223
134,335
Interest expense
82,794
83,396
164,451
161,796
Other expense (income)
11,937
(2,515)
3,074
(13,363)
Income tax expense
119,513
106,310
233,486
214,552
Adjusted EBITDA
$
521,936
$
467,766
$
1,023,739
$
909,133
(1) Allocation of share-based payment expense
For the Three Months Ended June 30,
For the Six Months Ended June 30,
(in thousands)
2017
2016
2017
2016
Programming and content
$
7,063
$
4,057
$
13,564
$
8,551
Customer service and billing
1,029
819
2,040
1,625
Satellite and transmission
1,084
1,059
2,271
2,075
Sales and marketing
5,802
4,747
11,482
9,559
Engineering, design and development
3,686
2,688
7,240
5,556
General and administrative
11,587
10,807
23,100
20,504
Total share-based payment expense
$
30,251
$
24,177
$
59,697
$
47,870
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 June 30,
For the Six Months Ended June 30,
(in thousands, except per subscriber amounts)
2017
2016
2017
2016
Subscriber revenue, excluding connected vehicle services
$
1,090,356
$
1,011,422
$
2,148,410
$
1,996,406
Add: advertising revenue
40,178
33,521
76,194
65,062
Add: other subscription-related revenue
128,179
117,522
252,647
231,593
$
1,258,713
$
1,162,465
$
2,477,251
$
2,293,061
Daily weighted average number of subscribers
31,746
30,329
31,559
30,044
ARPU
$
13.22
$
12.78
$
13.08
$
12.72
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 June 30,
For the Six Months Ended June 30,
(in thousands, except per subscriber amounts)
2017
2016
2017
2016
Customer service and billing expenses, excluding connected vehicle services
$
90,388
$
89,210
$
182,508
$
180,381
Less: share-based payment expense
(1,029)
(819)
(2,040)
(1,625)
$
89,359
$
88,391
$
180,468
$
178,756
Daily weighted average number of subscribers
31,746
30,329
31,559
30,044
Customer service and billing expenses, per average subscriber
$
0.94
$
0.97
$
0.95
$
0.99
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 June 30,
For the Six Months Ended June 30,
(in thousands)
2017
2016
2017
2016
Cash Flow information
Net cash provided by operating activities
$
483,211
$
432,102
$
792,536
$
794,288
Net cash used in investing activities
$
(607,294)
$
(37,156)
$
(667,680)
$
(71,125)
Net cash used in financing activities
$
(63,667)
$
(20,445)
$
(296,057)
$
(358,548)
Free Cash Flow
Net cash provided by operating activities
$
483,211
$
432,102
$
792,536
$
794,288
Additions to property and equipment
(66,152)
(37,001)
(119,517)
(67,172)
Purchases of restricted and other investments
(334)
(155)
(7,355)
(3,953)
Free cash flow
$
416,725
$
394,946
$
665,664
$
723,163
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 June 30,
For the Six Months Ended June 30,
(in thousands, except per installation amounts)
2017
2016
2017
2016
Subscriber acquisition costs
$
125,154
$
128,956
$
252,642
$
261,405
Less: margin from sales of radios and accessories, excluding connected vehicle
(20,285)
(18,130)
(43,031)
(35,472)
$
104,869
$
110,826
$
209,611
$
225,933
Installations
3,362
3,476
6,946
6,906
SAC, per installation
$
31
$
32
$
30
$
33
About SiriusXM
Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world's largest radio company measured by revenue and has approximately 32.0 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™, SiriusXM Travel Link, NavTraffic®, NavWeather™. SiriusXM delivers weather, data and information services to aircraft and boats through SiriusXM Aviation™ and SiriusXM Marine™. 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 Stevens
212-901-6718
Hooper.stevens@siriusxm.com
Patrick Reilly
212-901-6646
patrick.reilly@siriusxm.com
View original content with multimedia:http://www.prnewswire.com/news-releases/siriusxm-reports-second-quarter-2017-results-300494919.html
SOURCE Sirius XM Holdings Inc.
Copyright 2017 PR Newswire
Sirius XM EPS in-line, beats on revenue
http://www.seekingalpha.com/news/3282069
AT&T's Results Top Wall Street Views
Source: Dow Jones News
By Maria Armental
AT&T Inc., the telecom giant that is reinventing itself as a media conglomerate, on Tuesday reported its third-straight quarterly revenue decline as it struggles to add -- and retain -- subscribers.
Still, results beat Wall Street expectations, sending shares up 0.2% to $36.29 in extended trading.
AT&T, having lost ground to companies like T-Mobile US Inc. and Sprint Corp. that lured customers away with unlimited offers, is hoping to move away from the lagging phone business by building out its media and entertainment business.
Already the biggest pay-television operator in the U.S. with its acquisition of satellite company DirecTV, AT&T is looking to add Time Warner to its fold, a pricey deal that would give the Dallas company such properties as CNN, HBO and the Warner Bros. film and TV studio.
Video subscribers, however, declined 199,000 in the most recent quarter, although company officials said that streaming service DirecTV Now, continues to pick up subscribers helping to stem the losses. In the latest period, AT&T said DirecTV Now added 152,000 subscribers.
Meanwhile, the Dallas-based company on Tuesday reported the lowest churn -- or monthly cancellation rate -- for mainstream phone customers, the most profitable and reliable.
The results followed last week's quarterly report from T-Mobile US, which showed that the No. 3 domestic carrier had added 1.3 million subscribers in the latest period, including 786,000 postpaid phone subscribers.
Over all, second-quarter profit rose 15% to $3.92 billion, or 63 cents a share. Excluding merger and integration costs and other items, profit rose to 79 cents a share, from 72 cents a year earlier.
Revenue fell to $39.84 billion from $40.52 billion a year earlier.
Analysts surveyed by Thomson Reuters had projected 73 cents a share in adjusted profit and $39.79 billion in revenue.
As of June 30, AT&T had more than $25 billion in cash and more than $130 million in debt.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
July 25, 2017 17:02 ET (21:02 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
What To Look For From Sirius Next Week $SIRI
http://www.seekingalpha.com/article/4088798
Perry Reissue Legal Win For Fannie and Freddie Plaintiffs $FNMA
http://www.seekingalpha.com/article/4088384
AT&T Declares Quarterly Dividend
Source: Business Wire
The board of directors of AT&T Inc.* (NYSE: T) today declared a quarterly dividend of $0.49 a share on the company’s common shares. The dividend is payable on Aug. 1, 2017, to stockholders of record at the close of business on July 10, 2017.
*About AT&T
AT&T Inc. (NYSE: T) helps millions around the globe connect with leading entertainment, business, mobile and high speed internet services. We offer the nation’s best data network** and the best global coverage of any U.S. wireless provider. We’re one of the world’s largest providers of pay TV. We have TV customers in the U.S. and 11 Latin American countries. Nearly 3.5 million companies, from small to large businesses around the globe, turn to AT&T for our highly secure smart solutions.
AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Additional information about AT&T products and services is available at about.att.com. Follow our news on Twitter at @ATT, on Facebook at facebook.com/att and on YouTube at youtube.com/att.
© 2017 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
**Claim based on the Nielsen Certified Data Network Score. Score includes data reported by wireless consumers in the Nielsen Mobile Insights survey, network measurements from Nielsen Mobile Performance and Nielsen Drive Test Benchmarks for Q4 2016 + Q1 2017 across 121 markets.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170630005507/en/
AT&T Inc.
Corporate Communications:
Eric Ryan, 212-803-2644
eric.ryan.1@att.com
AT&T declares $0.49 dividend
http://www.seekingalpha.com/news/3276556
Sirius XM Radio Inc. Prices Offering of $750 Million of 3.875% Senior Notes due 2022 and $1.25 Billion of 5.0% Senior Notes d...
Source: PR Newswire (US)
NEW YORK, June 26, 2017 /PRNewswire/ -- SiriusXM announced today that its subsidiary, Sirius XM Radio Inc., priced an offering of $750 million of 3.875% Senior Notes due 2022 and $1.25 billion of 5.0% Senior Notes due 2027.
The notes are to be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States in compliance with Regulation S of the Securities Act. The Senior Notes due 2022 will bear interest at an annual rate of 3.875% and the Senior Notes due 2027 will bear interest at an annual rate of 5.0%. The price to investors will be 100% of the principal amount of the notes. The company will receive gross proceeds of $2.0 billion from the sale of the notes before deducting the initial purchasers' commissions and estimated offering fees and expenses.
The company intends to use the net proceeds from this offering, together with cash on hand, to redeem all of its outstanding 4.25% Senior Notes due 2020 (the "4.25% Notes") and 5.75% Senior Notes due 2021 (the "5.75% Notes") and to repay a portion of the $1 billion of net borrowings currently outstanding under its revolving credit facility. Pending application of these amounts, the company currently expects to maintain any excess amount as cash on hand.
As of March 31, 2017, the company had $500 million in aggregate principal amount of 4.25% Notes outstanding and $600 million in aggregate principal amount of 5.75% Notes outstanding. The 4.25% Notes are currently redeemable at 101.063% of the principal amount thereof and the 5.75% Notes are redeemable on and after August 1, 2017 at 102.875% of the principal amount thereof, in each case plus accrued and unpaid interest.
The securities have not been and will not be registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration, except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.
This announcement is neither an offer to sell nor a solicitation to buy any of these securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful.
About SiriusXM
Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world's largest radio company measured by revenue and has more than 30 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 in the U.S. 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™, SiriusXM Travel Link, NavTraffic®, NavWeather™. SiriusXM delivers weather, data and information services to aircraft and boats through SiriusXM Aviation, SiriusXM Marine™, Sirius Marine Weather, XMWX Aviation™, XMWX Weather, and XMWX Marine™. 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 2.7 million subscribers. SiriusXM is also a leading provider of connected vehicles services to major automakers, 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.
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.
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; consumer protection laws and their enforcement; the unfavorable outcome 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; harmful interference to our service from new and existing wireless operations; 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; and impairment of our business by third-party intellectual property rights. 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, 2015, 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 Stevens
212-901-6718
hooper.stevens@siriusxm.com
Patrick Reilly
212-901-6646
patrick.reilly@siriusxm.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sirius-xm-radio-inc-prices-offering-of-750-million-of-3875-senior-notes-due-2022-and-125-billion-of-50-senior-notes-due-2027-300479902.html
SOURCE Sirius XM Holdings Inc.
Copyright 2017 PR Newswire
Latest congressional plan would break Frannie into pieces
http://www.seekingalpha.com/news/3275680
Is A GSE Bonanza Imminent? $FNMA
http://www.seekingalpha.com/article/4081434
Woohoo!!
T
I'm with you on that. Go T!
CNBC: Sirius/Pandora investment comes after $8/share offer rejected
http://www.seekingalpha.com/news/3272637
SiriusXM to Make $480 Million Strategic Investment in Pandora
Source: PR Newswire (US)
NEW YORK and OAKLAND, Calif., June 9, 2017 /PRNewswire/ -- SiriusXM (NASDAQ: SIRI) and Pandora (NYSE: P) today announced an agreement under which SiriusXM will make a $480 million strategic cash investment in Pandora.
Under the terms of the agreement, a subsidiary of SiriusXM will purchase an aggregate of $480 million in newly issued Series A convertible preferred stock of Pandora. SiriusXM purchased $172.5 million of Series A preferred stock upon execution of the agreement and has agreed to purchase the balance of the Series A preferred stock at a second closing. The Series A preferred stock will represent a stake of 19% of Pandora's currently outstanding common stock and a 16% stake on an as-converted basis.
The Series A preferred stock is convertible into common stock at a purchase price of $10.50 per share. The conversion price of the Series A preferred stock is approximately a 14.2% premium to Pandora's volume weighted average price for the 20-day period preceding June 9, 2017. The Series A preferred stock will bear a 6% cumulative dividend, payable in cash, accretion of the Series A preferred stock or a combination thereof.
Through this agreement, SiriusXM is making a strategic investment in the leading U.S. provider of ad-supported digital radio. With a loyal quarterly audience of nearly 100 million listeners in the U.S., Pandora is by far the leading player in the burgeoning digital audio advertising market. The capital provided through the SiriusXM investment will allow Pandora to make targeted investments and capitalize on opportunities to build on its position in the streaming radio business.
Jim Meyer, Chief Executive Officer of SiriusXM, said, "This strategic investment in Pandora represents a unique opportunity for SiriusXM to create value for its stockholders by investing in the leader in the ad-supported digital radio business, a space where SiriusXM does not play today. Pandora's large user base and its ability to provide listeners with a personalized music experience are tremendous assets. With its strong technology and new product offerings, we believe there are exciting opportunities for Pandora to accelerate its growth and increase value for Pandora and SiriusXM stockholders."
"Liberty Media has long recognized the strength of the Pandora brand and the opportunities in the ad-supported digital radio market," said Greg Maffei, Chairman of the SiriusXM Board of Directors and Chief Executive Officer of Liberty Media Corporation. "We are very supportive of SiriusXM's strategic investment."
When the transaction closes, three individuals designated by SiriusXM will be named to the Pandora Board of Directors. One of those individuals will serve as Chairman and SiriusXM designated directors will serve as select Board committee representatives. With these appointments, the Pandora Board will be expanded to consist of nine directors.
"Pandora's Board and management team are committed to driving stockholder value and have carefully evaluated alternative strategies as part of the process disclosed on May 8," said Tim Leiweke, member of Pandora's Board of Directors. "We are pleased that the conclusion of that process resulted in a major investment by SiriusXM. With this investment, we have the backing of one of the media industry's most successful investors and significant capital to accelerate growth. Pandora is now poised to advance to the next stage of the company's lifecycle. Lastly, this transaction ensures that Pandora stockholders get the benefit of additional capital from an important strategic investor who can help enhance stockholder value."
"The investment from SiriusXM infuses resources to help Pandora continue to grow and innovate," said Pandora CEO and founder Tim Westergren. "With the strategic review behind us, and a strong balance sheet, we look forward to focusing on business execution and the optimization of our strategy."
In connection with the transaction, Pandora agreed with an affiliate of Kohlberg Kravis & Roberts to terminate their Investment Agreement announced on May 8, 2017, and pay KKR a termination fee of $22.5 million.
Pandora is required to redeem the Series A preferred stock on the fifth anniversary of the closing for an amount equal to its liquidation preference plus all accrued and unpaid dividends. Pandora can also redeem the Series A preferred stock at any time after the third anniversary of the closing if the daily volume weighted average price of Pandora's common stock is greater than or equal to 175% of the then applicable conversion price for a period of at least 20 days during a 30 day trading window prior to the notice of redemption.
SiriusXM will be subject to certain standstill restrictions, including, among other things, that it will be restricted from acquiring additional securities of Pandora for 18 months. After that period and for so long as a director designated by it is serving on the Board of Directors, SiriusXM has agreed not to acquire more than 31.5% of Pandora's equity securities without the approval of Pandora's Board of Directors.
The second closing contemplated by the agreement is subject to customary closing conditions, including antitrust approval, and is expected to close by the fourth quarter. The agreement may be terminated by either party if closing has not occurred by February 1, 2018.
Additional information relating to the SiriusXM investment may be found in the Form 8-K that will be filed by Pandora with the U.S. Securities and Exchange Commission.
Allen & Company LLC and BofA Merrill Lynch are serving as financial advisors to SiriusXM and Jones Day and Simpson Thacher & Bartlett LLP are serving as its legal counsel. Centerview Partners LLC and Morgan Stanley & Co. LLC are serving as financial advisors to Pandora and Sidley Austin LLP and Wachtell, Lipton, Rosen & Katz are acting as legal counsel.
About SiriusXM
Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world's largest radio company measured by revenue and has approximately 31.6 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™, SiriusXM Travel Link, NavTraffic®, NavWeather™. SiriusXM delivers weather, data and information services to aircraft and boats through SiriusXM Aviation™ and SiriusXM Marine™. 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.
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.
About Pandora
Pandora is the world's most powerful music discovery platform - a place where artists find their fans and listeners find music they love. We are driven by a single purpose: unleashing the infinite power of music by connecting artists and fans, whether through earbuds, car speakers, live on stage or anywhere fans want to experience it. Our team of highly trained musicologists analyze hundreds of attributes for each recording which powers our proprietary Music Genome Project®, delivering billions of hours of personalized music tailored to the tastes of each music listener, full of discovery, making artist/fan connections at unprecedented scale. Founded by musicians, Pandora empowers artists with valuable data and tools to help grow their careers and connect with their fans.
This press release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding expected revenue and adjusted EBITDA. These forward-looking statements are based on Pandora's current assumptions, expectations and beliefs and involve substantial risks and uncertainties that may cause results, performance or achievement to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: our operation in an emerging market and our relatively new and evolving business model; our ability to estimate revenue reserves; our ability to increase our listener base and listener hours; our ability to attract and retain advertisers; our ability to generate additional revenue on a cost-effective basis; competitive factors; our ability to continue operating under existing laws and licensing regimes; our ability to enter into and maintain commercially viable direct licenses with record labels for the right to reproduce and publicly perform sound recordings on our service; our ability to establish and maintain relationships with makers of mobile devices, consumer electronic products and automobiles; our ability to manage our growth and geographic expansion; our ability to continue to innovate and keep pace with changes in technology and our competitors; our ability to expand our operations to delivery of non-music content; our ability to protect our intellectual property; risks related to service interruptions or security breaches; and general economic conditions worldwide. Further information on these factors and other risks that may affect the business are included in filings with the Securities and Exchange Commission (SEC) from time to time, including under the heading "Risk Factors" in our Annual Report on Form 10-K for the current period.
The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's most recent reports on Form 10-K and Form 10-Q, each as they may be amended from time to time. The Company's results of operations for the current period are not necessarily indicative of the Company's operating results for any future periods.
These documents are available online from the SEC or on the SEC Filings section of the Investor Relations section of our website at investor.pandora.com. Information on our website is not part of this release. All forward-looking statements in this press release are based on information currently available to the Company, which assumes no obligation to update these forward-looking statements in light of new information or future events.
Contacts:
For SiriusXM:
Media:
Patrick Reilly
212-901-6646
patrick.reilly@siriusxm.com
Investors:
Hooper Stevens
212-901-6718
hooper.stevens@siriusxm.com
For Pandora:
Dominic Paschel, 510-842-6960
Corporate Finance & Investor Relations
investor@pandora.com
or
Hani Durzy, 415-385-4264
PR & Corporate Communications
hdurzy@pandora.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/siriusxm-to-make-480-million-strategic-investment-in-pandora-300471595.html
SOURCE SiriusXM
Copyright 2017 PR Newswire
SiriusXM to make $480M strategic investment in Pandora
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AT&T to Acquire Vyatta Software Technology from Brocade
Source: PR Newswire (US)
DALLAS, June 2, 2017 /PRNewswire/ -- AT&T* has agreed to buy the Vyatta® network operating system and associated assets of Brocade Communications Systems. This platform includes the vRouter product line. AT&T also intends to hire certain Brocade employees associated with that business. The deal is expected to close in early summer, subject to closing conditions and prior to the closing of the previously announced proposed acquisition of Brocade by Broadcom Limited. Financial terms were not disclosed.
The Vyatta platform will help AT&T continue to drive its network transformation. We expect to virtualize and software-control 75% of our network by 2020. Our plan is to hit 55% by the end of 2017.
"Our network transformation effort lets us add new features quicker than ever before at a much lower cost," said Andre Fuetsch, chief technology officer and president of AT&T Labs. "Being able to design and build the tools we need to enable that transformation is a win for us and for our customers."
After the deal closes, AT&T will own the Vyatta network operating system, including its virtual network functions (VNFs) and distributed services platform, software under development as part of its unreleased roadmap, existing software licenses, and related patents and patent applications. The Brocade employees expected to join AT&T are mostly located in California and the United Kingdom.
This acquisition will bolster our ability to deliver cloud or premises-based VNFs, starting with our previously announced SD-WAN cloud service with VeloCloud.
The Vyatta acquisition will also expand AT&T's white box platform capabilities. In late March, we completed a trial with a handful of companies and industry groups to design and build our own white box switches to manage data traffic more efficiently across our network.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
About AT&T
AT&T Inc. (NYSE:T) helps millions around the globe connect with leading entertainment, business, mobile and high speed internet services. We offer the nation's best data network* and the best global coverage of any U.S. wireless provider.** We're one of the world's largest providers of pay TV. We have TV customers in the U.S. and 11 Latin American countries. Nearly 3.5 million companies, from small to large businesses around the globe, turn to AT&T for our highly secure smart solutions.
Additional information about AT&T products and services is available at about.att.com. Follow our news on Twitter at @ATT, on Facebook at facebook.com/att and YouTube at youtube.com/att.
© 2017 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies.
Brocade and Vyatta are registered trademarks of Brocade Communications Systems, Inc. All other marks contained herein are the property of their respective owners.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise
*Claim based on the Nielsen Certified Data Network Score. Score includes data reported by wireless consumers in the Nielsen Mobile Insights survey, network measurements from Nielsen Mobile Performance and Nielsen Drive Test Benchmarks for Q3+Q4 2016 across 121 markets.
**Global coverage claim based on offering discounted voice and data roaming; LTE roaming; and voice roaming in more countries than any other U.S. based carrier. International service required. Coverage not available in all areas. Coverage may vary per country and be limited/restricted in some countries.
AT&T Inc. (PRNewsFoto/AT&T Inc.)
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/att-to-acquire-vyatta-software-technology-from-brocade-300467842.html
SOURCE AT&T Inc.
Copyright 2017 PR Newswire
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