SiriusXM Reports Record 4Q Revenue

SiriusXM today announced fourth quarter and full-year 2013 financial and operating results, including record revenue of $1.0 billion and $3.8 billion in the fourth quarter and full-year, respectively, each up 12%.  Net income for the fourth quarter and full-year were $65 million and $377 million, respectively, or $0.01 and $0.06 per diluted common share, respectively.

Income from operations was $245 million and $1.0 billion in the fourth quarter and full-year 2013, respectively.  Adjusted EBITDA increased 41% in the fourth quarter to a record $326 million.  Full-year 2013 adjusted EBITDA was $1.17 billion, an increase of 27% from $920 million in 2012.

"The fourth quarter of 2013 capped a year of records and milestones for SiriusXM.  We delivered our first ever billion dollar revenue quarter, and our first ever quarter with adjusted EBITDA and free cash flow each over $300 million.  Our adjusted EBITDA margin of 32.5% in the fourth quarter was the highest in the history of the Company.  We remain excited about continuing our track record of delivering profitable growth in 2014, with the goal of enhancing free cash flow while making investments in key long-term initiatives," noted Jim Meyer, Chief Executive Officer, SiriusXM.

FOURTH QUARTER 2013 HIGHLIGHTS:

Dramatic expansion in adjusted EBITDA.   Adjusted EBITDA climbed by 41% year-over-year in the fourth quarter to a single quarter high of $326 million.  Adjusted EBITDA margin reached a record high of 32.5% in the quarter.

Subscriber acquisition costs decline.   Total subscriber acquisition costs were $124 million in the fourth quarter, or just 12% of adjusted revenue, the lowest percentage in the Company's history.  The improvement in SAC was driven by lower subsidy rates per vehicle.  SAC per gross addition was $44, a record low, a decline of 19% versus the fourth quarter of 2012.

All-time high self-pay subscribers.   Self-pay subscriber net additions were 411,484 in the fourth quarter, resulting in an all-time high self-pay subscriber base of 21.1 million at year end, up 8% year-over-year.  Paid promotional subscribers declined from the third quarter by 434,240 as a major OEM shifted to unpaid trials during the period, resulting in the one-time decline.

FULL-YEAR 2013 HIGHLIGHTS:

"During the fourth quarter, we completed the first $160 million of the $500 million of share repurchases from Liberty Media, bringing our total 2013 share repurchases to 520 million shares for $1.76 billion, leaving over $2.2 billion remaining under our current authorization," said David Frear, Chief Financial Officer, SiriusXM.

"Our debt to adjusted EBITDA was just 3.1 times at the end of 2013, including $500 million of deep in-the-money convertible notes.  With our recently raised leverage target of 4.0 times and our free cash flow guidance, SiriusXM has $3.5 billion of capacity to pursue capital returns and acquisitions," added Frear.