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SiriusXM Releases Q3 Financials

Some things up and some down

Satellite radio broadcaster SiriusXM has released its third quarter 2013 financial and operating numbers.

Top of its list was a year over year increase in revenue, $962 million in 2013 compared to $867 million for 2012 — an 11% gain. The $962 million was a record for the company.

Net income, however, was down, $63 million compared to $75 million in 2012. Earnings per fully diluted share were $0.01 for each quarter.

Another quarterly record for the company was EBITDA at $296 million versus $245 in 2012, a 21% increase. Income before income taxes was up 128% over 3Q 2012 at $124 million.

Jim Meyer, SiriusXM CEO said: “SiriusXM had a great quarter, with the 513,000 net subscriber additions and the 373,000 self-pay net additions setting post-merger records for the third quarter. We also saw double-digit growth in revenue for the seventh consecutive quarter, a new quarterly record for adjusted EBITDA and adjusted EBITDA margin, and significant growth in free cash flow.”

He explained, “With continued growth in new automobile sales and an increasing number of existing self-pay subscribers selling their cars and rotating back into our trial funnel, we are increasing our guidance for net subscriber additions and reducing our guidance for self-pay subscriber additions by equal amounts.”

Meyer said the company issued new guidance for an increase in revenue for 2013 and continued growth in 2014 in both revenue and adjusted EBITDA.

Other highlights — total paid subscriber base at 25.6 million was a record, up 9% over 2012 same period. Same could be said for self-pay subscribers at 20.7 million, also up 9% year-over-year. The company also reported that free cash flow at $245 million, an increase of 26% over the $195 million of same period 2012.

SiriusXM Executive Vice President and Chief Financial Officer David Frear commented on an improved SiriusXM balance sheet: “We have taken significant steps over the past year to improve our balance sheet, lowering our average cost of debt from 9.2% last summer to just 5.5% following the redemption of the 7.625% Senior Notes due 2018. The new debt we have issued gives our company greater flexibility to pursue capital returns and other strategic opportunities.”

He also spoke on share repurchases, including those from Liberty Media: “During the third quarter, we repurchased approximately 124 million shares of our common stock for $459 million, bringing our year-to-date purchases to approximately 477 million shares for approximately $1.6 billion. We have approximately $2.4 billion remaining under our recently increased share repurchase authorization, and we anticipate using $500 million of this authorization to repurchase shares directly from Liberty Media in three installments beginning next month.”

The official release can be found here.