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SiriusXM Reports 2011 Results


– Subscribers Grow to Record 21.9 Million
– Record Revenue of $3.01 Billion, Up 7% Over 2010
– Adjusted EBITDA Reaches Record $731 Million, Up 17% Over 2010
– Record Free Cash Flow of $416 Million, Up 98% Over 2010
– 2012 Adjusted EBITDA Guidance Raised to $875 Million
– Company Projects 1.3 Million Net Subscriber Additions in 2012

Sirius XM Radio today announced full year 2011 financial and operating results, including revenue of $3.01 billion, up 7% over 2010 revenue of $2.82 billion, and adjusted EBITDA of $731 million, up 17% from $626 million in 2010.

“We are proud to announce that SiriusXM delivered another record-setting year in 2011, meeting or exceeding all of our guidance.  Our strong content and subscriber focus helped set a post-merger record of 1.7 million net subscriber additions, and we achieved record levels of revenue, adjusted EBITDA and free cash flow.  We expanded our adjusted EBITDA margins to 24% by tightly controlling costs and growing our revenue.  Our improved profitability, coupled with lower capital expenditures, contributed to a substantial increase in our free cash flow,” noted Mel Karmazin, Chief Executive Officer, SiriusXM.

“In 2012, we expect to accelerate our revenue and adjusted EBITDA growth, and we project our free cash flow will jump by approximately 70% to$700 million.  Our subscriber base will once again end this year at another all-time record high,” said Karmazin.  “We continue to invest in improving the subscriber experience, all with the goal of keeping our subscribers engaged and entertained.  All of us here at SiriusXM look forward to another fantastic year of subscriber growth and improved financial performance.”

Additional highlights from 2011 include:

  • Subscriber growth continues. Gross additions climbed 12% to an all-time high of 8.7 million, net subscriber additions improved by 20% to 1.7 million from 1.4 million in 2010, and the subscriber base rose to an all-time high of 21.9 million subscribers at year-end.  Self-pay net additions were 1.2 million in 2011, up 24% from 1.0 million in 2010.
  • Stable churn. Self-pay churn was 1.9% in 2011, in-line with 2010’s results.  New vehicle consumer conversion rate was 45% in 2011 compared to 46% in 2010.
  • Strong cost controls. Total cash operating expenses rose 3.7%, while fixed expenses declined by 1.9%.
  • SAC per gross addition declined. Subscriber acquisition costs (SAC) per gross addition improved by 7% to $55 in 2011 from $59 in 2010.
  • Free cash flow grew. Free cash flow climbed to $416 million, up 98% from the $210 million generated in 2010 due to higher operating cash flow and lower capital expenditures.

GAAP net income for 2011 and 2010 was $427 million and $43 million, respectively, or $0.07 and $0.01 per diluted share, respectively.

“We ended the year with $774 million of cash, even after reducing our long-term debt by over $200 million in 2011.  Our leverage at year-end improved to 4.1x our adjusted EBITDA on a gross basis and 3.1x on a net basis,” said David Frear, SiriusXM’s Executive Vice President and Chief Financial Officer.  “With no debt maturities due this year and our growing free cash flow, we expect to end 2012 with nearly $1.5 billion of cash.”


Fourth quarter 2011 revenue of $784 million was up 7% from the $736 million in the fourth quarter of 2010, while adjusted EBITDA was $167 millionin the fourth quarter of 2011, up 16% from the $144 million in the fourth quarter of 2010.

Highlights from the fourth quarter include:

  • Net subscriber additions climb. Net subscriber additions were 542,966, up 65% compared to the fourth quarter of 2010.  Net self-pay subscriber additions were 374,432, an increase of 7% versus the fourth quarter of 2010.
  • SAC per gross addition improves. Subscriber acquisition cost (SAC) per gross subscriber addition was $55 in the fourth quarter of 2011, a 5% improvement from the $58 reported in the fourth quarter of 2010.
  • Churn remained stable. Average self-pay monthly customer churn was 1.9% in the fourth quarter of 2011, in-line with the 1.9% reported in the fourth quarter of 2010.  New vehicle consumer conversion rate was 44% in the fourth quarter of 2011 compared to 45% in the fourth quarter of 2010.
  • Free cash flow rises. Free cash flow in the fourth quarter of 2011 was $192 million, an increase of 15% compared to $167 million in the fourth quarter of 2010.

GAAP net income (loss) for the fourth quarter of 2011 and 2010 was $71 million and ($81) million, respectively, or $0.01 and ($0.02) per diluted share, respectively.

The discussion of adjusted EBITDA excludes the effects of stock-based compensation and certain purchase price accounting adjustments. A reconciliation of non-GAAP items to their nearest GAAP equivalent is contained in the financial supplements included with this release.


The Company expects its subscriber base to grow by approximately 1.3 million net subscribers and end the year at approximately 23.2 million.  The company now expects adjusted EBITDA in 2012 of approximately $875 million, an increase from prior guidance of $860 million.  The Company reiterates its existing 2012 revenue and free cash flow guidance:

  • Revenue of approximately $3.3 billion, and
  • Free cash flow of approximately $700 million.

“With auto sales expected to rise in 2012, and what appears to be only a modest increase in churn associated with our January price increase, we expect to grow our net new subscribers by roughly 1.3 million in 2012, continuing our strong multi-year track record of subscriber growth,” said Karmazin.

The Full 2011 reports can be viewed here.