Orbitcast

Every NCAA Basketball Championship game will air on both Sirius and XM, for the first time

2010-03-12T12:06:51Z

For the first time, every game of the 2010 NCAA Division I Men's Basketball Championship will be available to both Sirius and XM listeners.

Every game will air in its entirety, with no blackouts, offering listeners uninterrupted access to the play-by-play action from the opening round game on March 16th through the Final Four and National Championship game in Indianapolis on April 3rd-5th.

Tournament games will air on Sirius channels 122, 125, 126, 90 and 91 and XM channels 143, 241, 242, 243 and 244. Second round games on March 20th and 21st will also air on Mad Dog Radio (Sirius channel 123 and XM channel 144). Sirius XM's Steve Torre will anchor the coverage on these channels, providing up-to-the-minute scores and highlights during game breaks and directing listeners to other games around the dial.

On Selection Sunday, March 14th, Mad Dog Radio will air a special Mad Dog Radio Tournament Selection Show live from 6pm to 9pm ET. You'll hear host Gary Williams give live updates as tournament teams and match-ups are announced, and conduct interviews with special guests, including team coaches and selection committee chairman Dan Guerrero.

Duke University coach Mike Krzyzewski will continue to host his weekly talk show, Basketball and Beyond with Coach K, throughout the tournament. You can hear the show Wednesday evenings (8pm ET/5pm PT) on Mad Dog Radio.

Coach K will also join Chris 'Mad Dog' Russo on Russo's show, Mad Dog Unleashed (airing weekdays, 2pm-7pm ET), at various times during the tournament for updates.

And then there's Rivals Radio, the college sports talk show hosted by Bill King and Chris Childers, which airs weekday mornings (7am-11am ET) on Sirius XM Sports Nation (Sirius channel 122 and XM channel 143).

Sirius XM will also broadcast games from the NCAA Division I Women's Basketball Championship, with full coverage coast-to-coast of every regional final, the Final Four and the Women's championship game.

Howard Stern Tiger Mistress Beauty Pageant (PHOTOS)

2010-03-11T23:31:58Z

Howard Stern held his Tiger Woods' Mistress Beauty Pageant Wednesday, and Jaime Jungers took home the dubious honors and a whopping $75,000 cash prize.

The win for Jaime Jungers came after she answered some of the most provocative questions Howard threw her way, including ones about Tiger Woods' anatomical features and turn-ons.

Also competing in the contest were Loredana Jolie (pictured, right) and Jaimee Grubbs (pictured, left) who pocketed $15,000 for her 2nd finish.

(Photo Credit: Jason Kaplan, The Howard Stern Show)

Pandora taps Sirius XM exec to build out auto initiative

2010-03-04T17:02:54Z

Pandora has hired a Sirius XM Radio Inc. executive George Lynch to help grow its in-vehicle internet radio initiative.

This news comes on the heels of recent deals between Pandora and Ford, as well as with radio manufacturers.

George Lynch comes from Sirius XM after 11 years at the company where he held the positions of Director, OEM Accounts and, since 2004, Vice President, Automotive Partnerships.

Lynch previously held positions at Panasonic Automotive Electronics Company, Aisin World Corporation of America and United Technologies Automotive Group.

"George is bringing to Pandora his 20 years of experience pioneering new radio technology into vehicles, where fifty percent of all radio listening occurs," said Pandora SVP Jessica Steel. "Delivering Pandora's personalized internet radio to our 48 million listeners in their vehicles is a key focus of our company this year and we think we have got the best person on board to help Pandora cement our presence in the automotive arena."

"I have been fortunate in my career to have the opportunity to evangelize new radio technologies in the automotive industry and forge the partnerships with automakers that make them a reality for consumers," Lynch added. "Pandora is radio at its most innovative: wholly personalized and ever-present. I'm excited to introduce Pandora into connected vehicles."

But... Internet radio isn't a threat, right?

Barbara Walters gets interviewed by Howard Stern this Thursday

2010-03-02T22:51:09Z

She's interviewed presidents, prime ministers, heads of state and celebrities all over the world.

Now the tables will be turned and Barbara Walters will be in Howard Stern's guest chair on Thursday, March 4 for a live in-studio interview.

Stern and Walters do their radio shows down the hall from each other at Sirius XM's NYC headquarters. She's called into the Stern show in the past but this marks the first time she will be in studio with the King of All Media.

No doubt they'll discuss Barbara's upcoming Oscar night special - which she has said will be her last - which will air Sunday, March 7th on ABC at 7pm ET, and immediately following the Academy Awards ceremony on the west coast.

Barbara Walters' Sirius XM show, Here's Barbara, airs Mondays on Sirius XM Stars (Sirius channel 102, XM channel 155). On the show she and co-host Bill Geddie interview newsmakers and celebrities and discuss pop culture topics.

Gayle King is no longer exclusive to Satellite Radio

2010-03-02T13:04:22Z

Oprah's BFF Gayle King, and trusted medical guru Dr. Mehmet Oz, are no longer exclusive to the satellite radio airwaves thanks to a deal inked with terrestrial radio broadcaster Westwood One.

"Today marks an exciting new day for Harpo Radio," said former-XMer Erik Logan, now President of Harpo Productions, Inc.

Last week news came out that The Gayle King Show was to be extended on Sirius XM, but it appears the extension didn't stop there.

Gayle's daily two-hour talk show - plus a new, five-hour weeknight entertainment program called Gayle King Evening - will air across Westwood One's 5,000 affiliate radio stations.

Westwood One will also distribute a short-form daily feature from Dr. Mehmet Oz plus a long-form three-hour weekend program, with content from Gayle King, Dr. Oz and other Harpo Radio programs. These programs will also be streamed on Westwood One's affiliates' websites.

Eric (Erik?) Logan left as the EVP of Programming of XM back in July 2008 where he joined up with Harpo Productions under a newly created role. Logan was at XM for nearly four years where he directed a staff of 400 at XM.

Logan added, "We are delighted to be joining forces with one of the nation's largest and most esteemed radio providers and look forward to a longstanding relationship."

Analysts warm up to Sirius XM, up price targets on SIRI stock

2010-02-26T19:04:05Z

After Sirius XM Radio Inc. showed some significant improvements in their 2009 earnings, investment analysts expressed seeing a positive future for the company and its stock.

As Barton Crockett of Lazard Capital puts in, "what to do? ...stick with the BUY, and raise the price target to $1.35."

Crockett adds that the Used Car market "may be becoming a bigger growth driver than we'd thought."

Used cars are a market that we've seen a significant push on recently, with certified pre-owned deals now being offered on Ford, Chrysler, Acura, GM, Volkswagen, BMW, Mercedes, Audi, and Volvo.

Barrington Research too has upped its price target on SIRI, and maintains their "outperform" rating on the stock.

"The stock has already achieved the $1.10 target price we established at the start of the year," writes Barrington in a report issued following the earnings announcement. "We are raising our target price moderately to $1.25 based on our view that the improving fundamental metrics warrant a less extreme multiple-to-growth disparity than we had been assigning."

Obviously nothing is without its risks, as Lazard Capital notes in their report issued today, pointing to competition from Internet Radio and the "loss of key content, such as Howard Stern."

What do you think? Is the positive sentiment warranted, or short lived?

Sirius XM Radio revenue rises; provides 2010 guidance

2010-02-25T14:22:42Z

Sirius XM Radio Inc. today announced their full year 2009 and fourth quarter results, results that were so positive that the company says it has the momentum to now provide guidance for the 2010 year.

"We demonstrated considerable operating momentum in the fourth quarter - the addition of over 250,000 subscribers, ARPU growth, revenue growth, improved SAC, and continued operating cost reductions," said CEO Mel Karmazin in a statement.

"These gains position us to deliver on our 2010 guidance."

Guidance:
Sirius XM Radio Inc. expects full-year revenue of over $2.7 billion for 2010 and for free cash flow to remain positive for the year .

"We expect to add over 500,000 net subscribers this year, exceeding the company's previous subscriber high of 19 million at the end of 2008. We also expect this year's adjusted income from operations to be up approximately 20% to $550 million," said Karmazin.

Results:
Full year 2009 pro forma revenue came in at $2.53 billion, up 4% from $2.44 billion in 2008, and pro forma adjusted income from operations was $463 million, versus ($136) million in 2008.

In the fourth quarter 2009, Sirius XM's pro forma ARPU grew to $10.92 from $10.65 in the same period last year. Churn was up though - 2.0% in the fourth quarter of 2009 - as compared with 1.8% in the fourth quarter of 2008.

Q409 pro forma revenue was $684 million, up 6% from $644 million in Q408. SAC was at $64 in the Q409, an improvement of 9% over the $70 in SAC in Q408.

Also in the fourth quarter of '09, Sirius XM reached a pro forma adjusted income from operations of $115 million as compared with $32 million in the fourth quarter of 2008. Free cash flow in Q409 was $150 million compared to $26 million. The pro forma Q409 net loss was ($25) million as compared with ($248) million in the Q408. On a GAAP basis, Q409 net income was $14 million compared to a loss of ($246) million in Q408.

Remember, Sirius XM added 257,028 subscribers during the quarter, that's 3-times the rate from the prior year, and puts total satellite radio subscribers at just about 18.8 million.

Fourth Quarter key stats:

Satellite and transmission costs increased 10%
Programming and content costs decreased 12%
Revenue share and royalties increased 1%
Customer service and billing costs decreased 12%
Cost of equipment decreased 33%
Sales and marketing costs decreased 2%
Subscriber acquisition costs decreased 4%
General and administrative costs decreased 24%
Engineering, design and development costs decreased 23%
Restructuring, impairments and related costs decreased 11%
Other expenses decreased 65%

Year-over-Year key stats:

Satellite and transmission costs decreased 17%
Programming and content costs decreased 17%
Revenue share and royalties increased 2%
Customer service and billing costs decreased 5%
Cost of equipment decreased 39%
Sales and marketing costs decreased 32%
Subscriber acquisition costs decreased 30%
General and administrative costs decreased 32%
Engineering, design and development costs decreased 31%
Restructuring, impairments and related costs increased $22 million
Other expenses increased 53%

Full financials:


                                              Unaudited                    
                                              ---------                    
                            For the Three Months    For the Twelve Months  
                             Ended December 31,       Ended December 31,   
                             ------------------       ------------------   
                              2009        2008        2009         2008 
                              ----        ----        ----         ---- 
                            (Actual)    (Actual)    (Actual)   (Pro Forma) 
                                                                           
  Beginning subscribers    18,515,730  18,920,911  19,003,856   17,348,622 
  Gross subscriber                                                         
   additions                1,882,950   1,713,210   6,208,482    7,710,306 
  Deactivated subscribers  (1,625,922) (1,630,265) (6,439,580)  (6,055,072)
                           ----------  ----------  ----------   ---------- 
  Net additions               257,028      82,945    (231,098)   1,655,234 
                           ----------  ----------  ----------   ---------- 
  Ending subscribers       18,772,758  19,003,856  18,772,758   19,003,856 
                           ==========  ==========  ==========   ========== 
                                                                           
      Retail                7,725,750   8,905,087   7,725,750    8,905,087 
      OEM                  10,930,952   9,995,953  10,930,952    9,995,953 
      Rental                  116,056     102,816     116,056      102,816 
                           ----------  ----------  ----------   ---------- 
  Ending subscribers       18,772,758  19,003,856  18,772,758   19,003,856 
                           ==========  ==========  ==========   ========== 
                                                                           
      Retail                 (200,154)   (131,333) (1,179,452)    (333,628)
      OEM                     442,422     218,249     935,114    1,962,685 
      Rental                   14,760      (3,971)     13,240       26,177 
                           ----------  ----------  ----------   ---------- 
  Net additions               257,028      82,945    (231,098)   1,655,234 
                           ==========  ==========  ==========   ========== 
                                                                           
      Self-pay             15,703,932  15,549,657  15,703,932   15,549,657 
      Paid promotional      3,068,826   3,454,199   3,068,826    3,454,199 
                           ----------  ----------  ----------   ---------- 
  Ending subscribers       18,772,758  19,003,856  18,772,758   19,003,856 
                           ==========  ==========  ==========   ========== 
                                                                           
      Self-pay                247,182     359,069     154,275    1,676,311 
      Paid promotional          9,846    (276,124)   (385,373)     (21,077)
                           ----------  ----------  ----------   ---------- 
  Net additions               257,028      82,945    (231,098)   1,655,234 
                           ==========  ==========  ==========   ========== 
                                                                           
  Daily weighted average                                                   
   number of subscribers   18,576,151  18,910,689  18,529,696   18,373,274 
                           ==========  ==========  ==========   ========== 



                                                                       
                                       Unaudited Pro Forma             
                                       -------------------             
                            For the Three Months For the Twelve Months    
                             Ended December 31,    Ended December 31,   
                             ------------------    ------------------   
  (in thousands, except                                                
   for per subscriber                                                  
   amounts)                   2009        2008       2009         2008
                              ----        ----       ----         ----
                                                                      
  Average self-pay                                                     
   monthly churn (1)(7)           2.0%       1.8%        2.0%        1.8%
  Conversion rate (2)(7)         46.4%      44.2%       45.4%       47.5%
  ARPU (3)(7)                  $10.92     $10.65      $10.73      $10.56 
  SAC, as adjusted, per                                                
   gross subscriber                                                    
   addition (4)(7)                $64        $70         $63         $74 
  Customer service and 
   billing expenses, as 
   adjusted, per average                                                    
   subscriber (5)(7)            $1.06      $1.18       $1.05       $1.11 
  Total revenue              $683,779   $644,108  $2,526,703  $2,436,740 
  Free cash flow (6)(7)      $149,547    $25,877    $185,319   $(551,771)
  Adjusted income (loss)                                               
   from operations (8)       $115,339    $31,797    $462,539   $(136,298)
  Net loss                   $(25,243) $(248,468)  $(441,333)  $(902,335)



                     SIRIUS XM RADIO INC. AND SUBSIDIARIES                  
               UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS              
                                                                            
                                                 Pro Forma                  
                                                 ---------                  
                                For the Three Months  For the Twelve Months 
                                 Ended December 31,     Ended December 31,  
                                 ------------------     ------------------  
  (in thousands)                  2009       2008        2009        2008 
                                  ----       ----        ----        ---- 
                                                                            
  Revenue:                                                                  
      Subscriber revenue,                                                   
       including effects of                                                 
       rebates                  $593,841   $588,622  $2,334,317  $2,258,322 
      Advertising revenue, net                                              
       of agency fees             14,467     15,776      51,754      69,933 
      Equipment revenue           19,008     30,712      50,352      69,398 
      Other revenue               56,463      8,998      90,280      39,087 
                                --------  ---------   ---------   --------- 
  Total revenue                  683,779    644,108   2,526,703   2,436,740 
                                                                            
  Operating expenses:                                                       
      Satellite and                                                         
       transmission               25,094     22,851      82,170      99,185 
      Programming and content     92,857    105,215     370,470     446,638 
      Revenue share and                                                     
       royalties                 124,527    122,711     486,990     477,962 
      Customer service and                                                  
       billing                    58,887     67,036     232,405     244,195 
      Cost of equipment           12,200     18,084      40,188      66,104 
      Sales and marketing         80,161     81,712     232,199     342,296 
      Subscriber acquisition                                                
       costs                     127,588    132,731     401,670     577,126 
      General and                                                           
       administrative             39,108     51,591     181,920     267,032 
      Engineering, design and                                               
       development                 8,018     10,380      36,152      52,500 
      Depreciation and                                                      
       amortization               57,549     49,519     203,145     245,571 
      Restructuring, impairments 
       and related costs           2,640      2,977      32,807      10,434 
      Share-based payment                                                   
       expense                     7,480     24,945      78,782     124,619 
                                --------  ---------   ---------   --------- 
  Total operating expenses       636,109    689,752   2,378,898   2,953,662 
                                --------  ---------   ---------   --------- 
  Income (loss) from operations   47,670    (45,644)    147,805    (516,922)
      Other expense              (70,276)  (202,649)   (583,157)   (381,425)
                                --------  ---------   ---------   --------- 
  Loss before income taxes       (22,606)  (248,293)   (435,352)   (898,347)
      Income tax expense          (2,637)      (175)     (5,981)     (3,988)
                                                                            
                                --------  ---------   ---------   --------- 
  Net loss                      $(25,243) $(248,468)  $(441,333)  $(902,335)
                                ========  =========   =========   ========= 



                    SIRIUS XM RADIO INC. AND SUBSIDIARIES                  
                    CONSOLIDATED STATEMENTS OF OPERATIONS                  
                                                                           
                                              Actual                       
                                              ------                       
                          For the Three Months      For the Twelve Months  
                           Ended December 31,        Ended December 31,    
                           ------------------        ------------------    
  (in thousands, except 
   per share data)           2009         2008         2009         2008 
                             ----         ----         ----         ---- 
                          (Unaudited)  (Unaudited)  (Unaudited)            
                                                                           
  Revenue:                                                                 
      Subscriber revenue,                                                  
       including effects 
       of rebates          $588,048     $568,523   $2,287,503   $1,548,919 
      Advertising revenue, 
       net of agency fees    14,467       15,776       51,754       47,190 
      Equipment revenue      19,008       30,712       50,352       56,001 
      Other revenue          54,650        7,172       83,029       11,882 
                          ---------    ---------    ---------   ---------- 
  Total revenue             676,173      622,183    2,472,638    1,663,992 
  Operating expenses 
   (depreciation and 
   amortization shown 
   separately below) (1):                                         
      Cost of services:                                                    
          Satellite and                                                    
           transmission      24,597       24,481       84,033       59,279 
          Programming                                                      
           and content       77,297       89,214      308,121      312,189 
          Revenue share and                                                
           royalties        100,355      103,217      397,210      280,852 
          Customer service 
           and billing       58,887       67,818      234,456      165,036 
          Cost of equipment  12,200       18,084       40,188       46,091 
      Sales and marketing    76,308       80,699      228,956      231,937 
      Subscriber 
       acquisition costs    109,733      113,512      340,506      371,343 
      General and                                                          
       administrative        44,601       64,586      227,554      213,142 
      Engineering, design 
       and development        8,056       12,404       41,031       40,496 
      Impairment of goodwill      -       15,331            -    4,766,190 
      Depreciation and                                                     
       amortization          77,826       82,958      309,450      203,752 
      Restructuring,                                                       
       impairments and                                                     
       related costs          2,640        2,977       32,807       10,434 
                          ---------    ---------    ---------   ---------- 
  Total operating                                                          
   expenses                 592,500      675,281    2,244,312    6,700,741 
                          ---------    ---------    ---------   ---------- 
      Income (loss)                                                        
       from operations       83,673      (53,098)     228,326   (5,036,749)
  Other income (expense):                                                  
      Interest and                                                         
       investment income      1,043          (90)       3,645        9,079 
      Interest expense, net 
       of amounts                                                          
       capitalized          (66,358)     (61,196)    (306,420)    (144,833)
      Loss on extinguishment                                               
       of debt and credit                                                  
       facilities, net       (3,879)     (98,203)    (267,646)     (98,203)
      Gain (loss) on                                                       
       investments            1,474      (27,418)       1,931      (30,507)
      Other income (expense)    851       (5,664)       3,355       (9,599)
                          ---------    ---------    ---------   ---------- 
  Total other expense       (66,869)    (192,571)    (565,135)    (274,063)
                          ---------    ---------    ---------   ---------- 
      Income (loss) before 
       income taxes          16,804     (245,669)    (336,809)  (5,310,812)
      Income tax expense     (2,637)        (175)      (5,981)      (2,476)
                          ---------    ---------    ---------   ----------
          Net income (loss)  14,167     (245,844)    (342,790)  (5,313,288)
      Preferred stock                                                      
       beneficial conversion                                               
       feature                    -            -     (186,188)           - 
                          ---------    ---------    ---------   ---------- 
          Net income (loss)                                                
           attributable                                                    
           to common                                                      
           stockholders                                                    
                            $14,167    $(245,844)   $(528,978) $(5,313,288)
                          =========    =========    =========    ========= 
  Net loss per common                                                      
   share (basic and                                                        
   diluted)                      $-       $(0.08)      $(0.15)      $(2.45)
                          =========    =========    =========    ========= 
  Weighted average common 
   shares outstanding                               
    (basic and diluted)   3,642,459    3,160,223    3,585,864    2,169,489 
                          =========    =========    =========    ========= 
                                                                           
                                                                           
  (1) Amounts related to share-based payment expense included in operating 
      expenses were as follows: 
                                                                           
  Satellite and transmission  $(276)      $1,349       $2,745       $4,236 
  Programming and content     1,646        4,672        9,064       12,148 
  Customer service and                                                     
   billing                        -          783        2,051        1,920 
  Sales and marketing          (474)       2,165        9,608       13,541 
  Subscriber acquisition 
   costs                          -            -            -           14 
  General and                                                              
   administrative             5,493       12,995       45,634       49,354 
  Engineering, design                                                      
   and development               38        2,023        4,879        6,192 
                                                                           
                             ------      -------      -------      ------- 
  Total share-based                                                        
   payment expense           $6,427      $23,987      $73,981      $87,405 
                             ======      =======      =======      ======= 



                     SIRIUS XM RADIO INC. AND SUBSIDIARIES                 
                          CONSOLIDATED BALANCE SHEETS                      
                                                                           
                                                      As of December 31,   
                                                      ------------------   
  (in thousands, except share and per share data)     2009          2008 
                                                      ----          ---- 
                       ASSETS                      (Unaudited)             
  Current assets:                                                          
    Cash and cash equivalents                        $383,489      $380,446
    Accounts receivable, net                          113,580       102,024
    Receivables from distributors                      48,738        45,950 
    Inventory, net                                     16,193        24,462 
    Prepaid expenses                                  100,273        67,203 
    Related party current assets                      106,247       110,427 
    Deferred tax asset                                 72,640        31,270 
    Other current assets                               18,620        27,474 
                                                   ----------    ---------- 
        Total current assets                          859,780       789,256 
  Property and equipment, net                       1,711,003     1,703,476 
  FCC licenses                                      2,083,654     2,083,654 
  Restricted investments                                3,400       141,250 
  Deferred financing fees, net                          8,902         9,197 
  Intangible assets, net                              611,461       688,671 
  Goodwill                                          1,834,856     1,834,856 
  Related party long-term assets                      110,594       128,357 
  Other long-term assets                               39,878        81,019 
                                                   ----------    ---------- 
          Total assets                             $7,263,528    $7,459,736 
                                                   ==========    ========== 
        LIABILITIES AND STOCKHOLDERS' EQUITY                                
  Current liabilities:                                                      
    Accounts payable and accrued expenses            $543,686      $625,264 
    Accrued interest                                   74,566        76,463 
    Current portion of deferred revenue             1,086,205     1,002,736 
    Current portion of deferred credit on                                   
     executory contracts                              252,831       234,774 
    Current maturities of long-term debt               13,882       399,726 
    Related party current liabilities                 105,471        68,373 
                                                   ----------    ---------- 
          Total current liabilities                 2,076,641     2,407,336 
  Deferred revenue                                    283,942       247,889 
  Deferred credit on executory contracts              784,078     1,037,190 
  Long-term debt                                    2,799,127     2,820,781 
  Long-term related party debt                        263,566             - 
  Deferred tax liability                              940,182       894,453 
  Related party long-term liabilities                  17,508             - 
  Other long-term liabilities                          61,052        43,550 
                                                   ----------    ---------- 
          Total liabilities                         7,226,096     7,451,199 
                                                   ----------    ---------- 
                                                                            
  Commitments and contingencies                                             
  Stockholders' equity:                                                     
    Preferred stock, par value $0.001; 50,000,000 
     authorized at December 31, 2009 and 2008:                              
       Series A convertible preferred stock 
        (liquidation preference of $51,370 at 
        December 31, 2009 and 2008); 24,808,959 
        shares issued and outstanding at December 31, 
        2009 and 2008                                      25            25 
       Convertible perpetual preferred stock, 
        series B (liquidation preference of $13 and 
        $0 at December 31, 2009 and 2008, respectively);
        12,500,000 and zero shares issued and                               
        outstanding at December 31, 2009 and 2008, 
        respectively                                       13             - 
      Convertible preferred stock, series C junior; no 
       shares issued and outstanding at December 31, 
       2009 and 2008                                        -             - 
    Common stock, par value $0.001; 9,000,000,000 and 
     8,000,000,000 shares authorized at December 31, 
     2009 and 2008, respectively; 3,882,659,087 and           
     3,651,765,837 shares issued and outstanding at 
     December 31, 2009 and 2008, respectively           3,882         3,652 
    Accumulated other comprehensive loss, net of tax   (6,581)       (7,871)
    Additional paid-in capital                     10,281,331     9,724,991 
    Accumulated deficit                           (10,241,238)   (9,712,260)
                                                  -----------    ---------- 
          Total stockholders' equity                   37,432         8,537 
                                                  -----------    ---------- 
          Total liabilities and stockholders'                               
           equity                                  $7,263,528    $7,459,736 
                                                  ===========    ========== 



                    SIRIUS XM RADIO INC. AND SUBSIDIARIES                  
                    CONSOLIDATED STATEMENTS OF CASH FLOWS                  
                                                                           
                                                     For the Years Ended   
                                                         December 31,      
                                                     -------------------   
  (in thousands)                                      2009         2008 
                                                      ----         ---- 
                                                  (Unaudited)              
  Cash flows from operating activities:                                    
      Net loss                                      $(342,790) $(5,313,288)
      Adjustments to reconcile net loss to net 
       cash provided by (used in) operating 
       activities:                                               
          Depreciation and amortization               309,450      203,752 
          Impairment of goodwill                            -    4,766,190 
          Non-cash interest expense, net of                                
           amortization of premium                     33,818       (6,311)
          Provision for doubtful accounts              30,602       21,589 
          Amortization of deferred income                                  
           related to equity method investment         (2,776)      (1,156)
          Loss on extinguishment of debt and                               
           credit facilities, net                     267,646       98,203 
          Restructuring, impairments and related                           
           costs                                       26,964            - 
          Loss (gain) on disposal of assets                 -        4,879 
          Loss on investments                          13,664       28,999 
          Share-based payment expense                  73,981       87,405 
          Deferred income taxes                         5,981        2,476 
          Other non-cash purchase price                                    
           adjustments                               (202,054)     (68,330)
          Other                                             -        1,643 
          Changes in operating assets and liabilities:                     
              Accounts receivable                     (42,158)     (32,121)
              Inventory                                 8,269        8,291 
              Receivables from distributors            (2,788)      14,401 
              Related party assets                     15,305      (22,249)
              Prepaid expenses and other current                           
               assets                                  10,027      (19,953)
              Other long-term assets                   86,674       (5,490)
              Accounts payable and accrued                                 
               expenses                               (46,645)     (83,037)
              Accrued interest                          2,429       23,081 
              Deferred revenue                         89,144       73,334 
              Related party liabilities                54,606       34,646 
              Other long-term liabilities              44,481       30,249 
                                                     --------     -------- 
                      Net cash provided by (used                           
                       in) operating activities       433,830     (152,797)
                                                     --------     -------- 
                                                                           
                                                                           
  Cash flows from investing activities:                                    
      Additions to property and equipment            (248,511)    (130,551)
      Sales of property and equipment                       -          105 
      Purchases of restricted and other investments         -       (3,000)
      Acquisition of acquired entity cash                   -      819,521 
      Merger related costs                                  -      (23,519)
      Sale of restricted and other investments              -       65,869 
                                                     --------     -------- 
                      Net cash (used in) provided 
                       by investing activities       (248,511)     728,425 
                                                     --------     -------- 
                                                                           
                                                                           
  Cash flows from financing activities:                                    
      Proceeds from exercise of warrants and                               
       stock options                                        -          471 
      Preferred stock issuance costs, net of costs     (3,712)           - 
      Long-term borrowings, net of costs              582,612      531,743 
      Related party long-term borrowings, net of                           
       costs                                          362,593            - 
      Payment of premiums on redemption of debt       (17,075)     (18,693)
      Payments to noncontrolling interest                   -      (61,880)
      Repayment of long-term borrowings              (755,447)  (1,085,643)
      Repayment of related party long-term                                 
       borrowings                                    (351,247)           - 
                                                     --------     -------- 
                      Net cash (used in) provided 
                       by financing activities       (182,276)    (634,002)
                                                     --------     -------- 
  Net increase (decrease) in cash and cash                                 
   equivalents                                          3,043      (58,374)
  Cash and cash equivalents at beginning of                                
   period                                             380,446      438,820 
                                                     --------     -------- 
  Cash and cash equivalents at end of period         $383,489     $380,446 
                                                     ========     ======== 



  FOOTNOTES TO PRESS RELEASE AND TABLES FOR NON-GAAP FINANCIAL MEASURES

  (1)  Average self-pay monthly churn represents the monthly average of 
       self-pay deactivations by the quarter divided by the average self-pay 
       subscriber balance for the quarter. 
  (2)  We measure the percentage of vehicle owners and lessees that receive 
       our service and convert to self-paying after the initial promotion 
       period. We refer to this as the "conversion rate." At the time of 
       sale, vehicle owners and lessees generally receive between three and 
       twelve month trial subscriptions. Promotional periods generally 
       include the period of trial service plus 30 days to handle the 
       receipt and processing of payments. We measure conversion rate three 
       months after the period in which the trial service ends. Based on our
       experience it may take up to 90 days after the trial service ends for
       vehicle owners and lessees to respond to our marketing communications
       and become self-paying subscribers. 
  (3)  ARPU is derived from total earned subscriber revenue and net 
       advertising revenue, divided by the number of months in the period, 
       divided by the daily weighted average number of subscribers for the 
       period. ARPU is calculated as follows (in thousands, except for 
       subscriber and per subscriber amounts): 



                                           Unaudited Pro Forma            
                                           -------------------            
                                For the Three Months  For the Twelve Months
                                 Ended December 31,     Ended December 31, 
                                 ------------------     ------------------ 
                                   2009       2008       2009       2008
                                   ----       ----       ----       ----
                                                                          
  Subscriber revenue             $593,841   $588,622 $2,334,317 $2,258,322
  Net advertising revenue          14,467     15,776     51,754     69,933
                                 --------   -------- ---------- ----------
      Total subscriber and                                                
       net advertising revenue                                            
                                 $608,308   $604,398 $2,386,071 $2,328,255
                                 ========   ======== ========== ==========
  Daily weighted average                                                  
   number of subscribers       18,576,151 18,910,689 18,529,696 18,373,274
  ARPU                             $10.92     $10.65     $10.73     $10.56



  (4)  SAC, as adjusted, per gross subscriber addition is derived from 
       subscriber acquisition costs and margins from the direct sale of 
       radios and accessories, excluding share-based payment expense divided 
       by the number of gross subscriber additions for the period. SAC, as 
       adjusted, per gross subscriber addition is calculated as follows (in 
       thousands, except for subscriber and per subscriber amounts): 



                                            Unaudited Pro Forma            
                                            -------------------            
                                  For the Three Months For the Twelve Months
                                   Ended December 31,    Ended December 31,
                                   ------------------    ------------------
                                     2009       2008       2009       2008 
                                     ----       ----       ----       ---- 
                                                                           
  Subscriber acquisition cost    $127,588   $132,731   $401,670   $577,140 
  Less: share-based payment 
   expense granted to third 
   parties and employees                -          -          -        (14)
  Less: margin from direct sales 
   of radios  and accessories      (6,808)   (12,628)   (10,164)    (3,294)
                                ---------   --------   --------   -------- 
  SAC, as adjusted               $120,780   $120,103   $391,506   $573,832 
                                 ========   ========   ========   ======== 
                                                                           
  Gross subscriber additions    1,882,950  1,713,210  6,208,482  7,710,306 
  SAC, as adjusted, per gross                                              
   subscriber addition                $64        $70        $63        $74 




  (5)  Customer service and billing expenses, as adjusted, per average 
       subscriber is derived from total customer service and billing 
       expenses, excluding 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. Customer service and billing 
       expenses, as adjusted, per average subscriber is calculated as 
       follows (in thousands, except for subscriber and per subscriber 
       amounts): 



                                           Unaudited Pro Forma              
                                           -------------------              
                              For the Three Months   For the Twelve Months  
                               Ended December 31,      Ended December 31,   
                               ------------------      ------------------   
                                2009        2008        2009        2008 
                                ----        ----        ----        ---- 
                                                                            
  Customer service and                                                      
   billing expenses             $58,981     $67,906    $234,909    $248,176 
  Less: share-based payment                                                 
   expense                          (94)       (870)     (2,504)     (3,981)
                             ----------  ----------  ----------  ---------- 
  Customer service and                                                      
   billing expenses, as                                                     
   adjusted                     $58,887     $67,036    $232,405    $244,195 
                             ==========  ==========  ==========  ========== 
  Daily weighted average                                                    
   number of subscribers     18,576,151  18,910,689  18,529,696  18,373,274 
  Customer service and 
   billing expenses, as 
   adjusted, per average 
   subscriber                     $1.06       $1.18       $1.05       $1.11 



  (6)  Free cash flow is calculated as follows: 



                                              Unaudited Pro Forma          
                                              -------------------          
                                  For the Three Months For the Twelve Months
                                   Ended December 31,    Ended December 31, 
                                    ------------------   ------------------ 
  (in thousands)                      2009     2008       2009       2008 
                                      ----     ----       ----       ---- 
                                                                           
  Net cash provided by (used in)                                           
   operating activities             $180,723  $64,195  $433,830  $(403,883)
  Additions to property and                                                
   equipment                         (31,176) (27,846) (248,511)  (161,394)
  Merger related costs                     -  (10,472)        -    (23,519)
  Restricted and other investment                                          
   activity                                -        -         -     37,025 
                                    --------  -------  --------  --------- 
  Free cash flow                    $149,547  $25,877  $185,319  $(551,771)
                                    ========  =======  ========  ========= 



  (7)  Average self-pay monthly churn; conversion rate; ARPU; SAC, as 
       adjusted, per gross subscriber addition; customer service and billing
       expenses, as adjusted, per average subscriber; and free cash flow are
       not measures of financial performance under U.S. generally accepted 
       accounting principles ("GAAP"). We believe these non-GAAP financial 
       measures provide meaningful supplemental information regarding our 
       operating performance and are used by us for budgetary and planning 
       purposes; when publicly providing our business outlook; as a means to
       evaluate period-to-period comparisons; and to compare our performance
       to that of our competitors. We also believe that investors also use 
       our current and projected metrics to monitor the performance of our 
       business and to make investment decisions. 

       We believe the exclusion of share-based payment expense in our 
       calculations of SAC, as adjusted, per gross subscriber addition and 
       customer service and billing expenses, as adjusted, per average 
       subscriber is useful given the significant variation in expense that 
       can result from changes in the fair market value of our common stock,
       the effect of which is unrelated to the operational conditions that 
       give rise to variations in the components of our subscriber 
       acquisition costs and customer service and billing expenses. 
       Specifically, the exclusion of share-based payment expense in our 
       calculation of SAC, as adjusted, per gross subscriber addition is 
       critical in being able to understand the economic impact of the 
       direct costs incurred to acquire a subscriber and the effect over 
       time as economies of scale are reached. 

       These non-GAAP financial measures are used in addition to and in 
       conjunction with results presented in accordance with GAAP. These 
       non-GAAP financial measures 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. 

  (8)  We refer to net income (loss) before interest and investment income; 
       interest expense, net of amounts capitalized; income tax expense; 
       loss on extinguishment of debt and credit facilities, net; (gain) 
       loss on investments; other expense (income); restructuring, 
       impairments and related costs; depreciation and amortization; and 
       share-based payment expense as adjusted income (loss) from 
       operations.  Adjusted income (loss) from operations is not a measure 
       of financial performance under U.S. GAAP. We believe adjusted income 
       (loss) from operations is a useful measure of our operating 
       performance. We use adjusted income (loss) from operations for 
       budgetary and planning purposes; to assess the relative profitability
       and on-going performance of our consolidated operations; to compare 
       our performance from period-to-period; and to compare our performance
       to that of our competitors. We also believe adjusted income (loss) 
       from operations is useful to investors to compare our operating 
       performance to the performance of other communications, entertainment
       and media companies. We believe that investors use current and 
       projected adjusted income (loss) from operations to estimate our 
       current or prospective enterprise value and to make investment 
       decisions. 

       Because we fund and build-out our satellite radio system through the 
       periodic raising and expenditure of large amounts of capital, our 
       results of operations reflect significant charges for interest and 
       depreciation expense. We believe adjusted income (loss) from 
       operations provides useful information about the operating 
       performance of our business apart from the costs associated with our 
       capital structure and physical plant. The exclusion of interest and 
       depreciation and amortization expense is useful given fluctuations in
       interest rates and significant variation in depreciation and 
       amortization expense that can result from the amount and timing of 
       capital expenditures and potential variations in estimated useful 
       lives, all of which can vary widely across different industries or 
       among companies within the same industry. We believe the exclusion of
       taxes is appropriate for comparability purposes as the tax positions 
       of companies can vary because of their differing abilities to take 
       advantage of tax benefits and because of the tax policies of the 
       various jurisdictions in which they operate. We believe the exclusion
       of restructuring, impairments and related costs is useful given the 
       non-recurring nature of these expenses. We also believe the exclusion
       of share-based payment expense is useful given the significant 
       variation in expense that can result from changes in the fair market 
       value of our common stock. To compensate for the exclusion of taxes, 
       other expense (income), depreciation and amortization and share-based
       payment expense, we separately measure and budget for these items.  

       There are material limitations associated with the use of adjusted 
       income (loss) from operations in evaluating our company compared with
       net loss, which reflects overall financial performance, including the
       effects of taxes, other (income) expense, depreciation and 
       amortization, restructuring, impairments and related costs and share-
       based payment expense. We use adjusted income (loss) from operations 
       to supplement GAAP results to provide a more complete understanding 
       of the factors and trends affecting the business than GAAP results 
       alone. Investors that wish to compare and evaluate our operating 
       results after giving effect for these costs, should refer to net loss
       as disclosed in our consolidated statements of operations. Since 
       adjusted income (loss) from operations is a non-GAAP financial 
       measure, our calculation of adjusted income (loss) from operations 
       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 the pro forma unadjusted net income (loss) to 
       the pro forma adjusted income (loss) from operations is calculated as
       follows (see footnotes for reconciliation of the pro forma amounts to      their respective GAAP amounts): 



                                            Unaudited Pro Forma            
                                            -------------------            
                                 For the Three Months For the Twelve Months
                                  Ended December 31,    Ended December 31,  
                                  ------------------    ------------------  
  (in thousands)                   2009       2008        2009       2008 
                                   ----       ----        ----       ---- 
                                                                           
  Reconciliation of Net loss to 
   Adjusted income (loss) from 
   operations:    
    Net loss                     $(25,243) $(248,468) $(441,333) $(902,335)
  Add back Net loss items 
   excluded from Adjusted 
   income (loss) from operations:                                          
    Interest and investment                                                
     income                        (1,043)        90     (3,645)   (12,092)
    Interest expense, net of                                               
     amounts capitalized           69,765     71,274    324,442    235,655 
    Income tax expense              2,637        175      5,981      3,988 
    Loss on extinguishment of                                              
     debt and facilities, net       3,879     98,203    267,646     98,203 
    (Gain) loss on investments     (1,474)    27,418     (1,931)    43,517 
    Other (income) expense           (851)     5,664     (3,355)    16,142 
                                 --------    -------   --------  --------- 
      Income (loss) from                                                   
       operations                  47,670    (45,644)   147,805   (516,922)
    Restructuring, impairments                                             
     and related costs              2,640      2,977     32,807     10,434 
    Depreciation and amortization  57,549     49,519    203,145    245,571 
    Share-based payment expense     7,480     24,945     78,782    124,619 
                                                                           
                                 --------    -------   --------  --------- 
  Adjusted income (loss) from                                              
   operations                    $115,339    $31,797   $462,539  $(136,298)
                                 ========    =======   ========  ========= 




       There are material limitations associated with the use of a pro forma
       unadjusted results of operations in evaluating our company compared 
       with our GAAP results of operations, which reflects overall financial
       performance. We use pro forma unadjusted results of operations to 
       supplement GAAP results to provide a more complete understanding of 
       the factors and trends affecting the business than GAAP results 
       alone. Investors that wish to compare and evaluate our operating 
       results after giving effect for these costs, should refer to results 
       of operations as disclosed in our consolidated statements of 
       operations. Since pro forma unadjusted results of operations is a 
       non-GAAP financial measure, our 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.

  (9)  The following tables reconcile our GAAP results of operations to our 
       non-GAAP pro forma unadjusted results of operations (in thousands):



                      Unaudited For the Three Months Ended December 31, 2009
                      ------------------------------------------------------
                                                      Allocation            
                                          Purchase     of Share-            
                                            Price        based              
                                  As     Accounting     Payment      Pro    
                               Reported  Adjustments    Expense      Forma  
                               --------  -----------  -----------    -----  
                                                                            
  Revenue:                                                                  
      Subscriber revenue,                                                   
       including effects of                                                 
       rebates                 $588,048       $5,793           $-  $593,841 
      Advertising revenue,                                                  
       net of agency fees        14,467            -            -    14,467 
      Equipment revenue          19,008            -            -    19,008 
      Other revenue              54,650        1,813            -    56,463 
                                -------     --------       ------  -------- 
  Total revenue                 676,173        7,606            -   683,779 
  Operating expenses 
   (depreciation and 
   amortization shown 
   separately below) (1)                                           
      Cost of services:                                                     
          Satellite and                                                     
           transmission          24,597          327          170    25,094 
          Programming and                                                   
           content               77,297       17,361       (1,801)   92,857 
          Revenue share and                                                 
           royalties            100,355       24,172            -   124,527 
          Customer service                                                  
           and billing           58,887           94          (94)   58,887 
          Cost of equipment      12,200            -            -    12,200 
      Sales and marketing        76,308        3,522          331    80,161 
      Subscriber acquisition                                                
       costs                    109,733       17,855            -   127,588 
      General and                                                           
       administrative            44,601          350       (5,843)   39,108 
      Engineering, design and                                               
       development                8,056          205         (243)    8,018 
      Depreciation and                                                      
       amortization              77,826      (20,277)           -    57,549 
      Restructuring,                                                        
       impairments and related                                              
       costs                      2,640            -            -     2,640 
      Share-based payment                                                   
       expense                        -            -        7,480     7,480 
                                -------     --------       ------  -------- 
  Total operating expenses      592,500       43,609            -   636,109 
                                -------     --------       ------  -------- 
      Income (loss) from                                                    
       operations                83,673      (36,003)           -    47,670 
  Other income (expense)                                                    
      Interest and investment                                               
       income                     1,043            -            -     1,043 
      Interest expense, net                                                 
       of amounts capitalized   (66,358)      (3,407)           -   (69,765)
      Loss on extinguishment                                                
       of debt and credit                                                   
       facilities, net           (3,879)           -            -    (3,879)
      Gain on investments         1,474            -            -     1,474 
      Other income                  851            -            -       851 
                                -------     --------       ------  -------- 
  Total other expense           (66,869)      (3,407)           -   (70,276)
                                -------     --------       ------  -------- 
      Income (loss) before                                                  
       income taxes              16,804      (39,410)           -   (22,606)
      Income tax expense         (2,637)           -            -    (2,637)
                                -------     --------       ------  -------- 
          Net income (loss)     $14,167     $(39,410)          $-  $(25,243)
                                =======     ========       ======  ======== 
                                                                            
  (1) Amounts related to share-based payment expense included in operating  
      expenses were as follows:                                             
                                                                            
  Satellite and transmission      $(276)        $106           $-     $(170)
  Programming and content         1,646          155            -     1,801 
  Customer service and billing        -           94            -        94 
  Sales and marketing              (474)         143            -      (331)
  Subscriber acquisition costs        -            -            -         - 
  General and administrative      5,493          350            -     5,843 
  Engineering, design and                                                   
   development                       38          205            -       243 
                                                                            
                                 ------       ------           --    ------ 
  Total share-based payment                                                 
   expense                       $6,427       $1,053           $-    $7,480 
                                 ======       ======           ==    ====== 



                      Unaudited For the Three Months Ended December 31, 2008
                      ------------------------------------------------------
                                         Purchase    Allocation             
                                          Price       of Share-             
                                        Accounting      based               
                               As      Adjustments     Payment       Pro    
                             Reported       (a)        Expense      Forma   
                             --------  ------------  -----------    -----   
                                                                            
  Revenue:                                                                  
      Subscriber revenue,                                                   
       including effects of                                                 
       rebates               $568,523       $20,099           $-   $588,622 
      Advertising revenue,                                                  
       net of agency fees      15,776             -            -     15,776 
      Equipment revenue        30,712             -            -     30,712 
      Other revenue             7,172         1,826            -      8,998 
                            ---------       -------       ------  --------- 
  Total revenue               622,183        21,925            -    644,108 
  Operating expenses 
   (depreciation and 
   amortization shown 
   separately below) (1)                                           
      Cost of services:                                                     
          Satellite and                                                     
           transmission        24,481          (214)      (1,416)    22,851 
          Programming and                                                   
           content             89,214        20,755       (4,754)   105,215 
          Revenue share                                                     
           and royalties      103,217        19,494            -    122,711 
          Customer service                                                  
           and billing         67,818            88         (870)    67,036 
          Cost of equipment    18,084             -            -     18,084 
      Sales and marketing      80,699         3,312       (2,299)    81,712 
      Subscriber                                                            
       acquisition costs      113,512        19,219            -    132,731 
      General and                                                           
       administrative          64,586           306      (13,301)    51,591 
      Engineering, design                                                   
       and development         12,404           281       (2,305)    10,380 
      Impairment of                                                         
       goodwill                15,331       (15,331)           -          - 
      Depreciation and                                                      
       amortization            82,958       (33,439)           -     49,519 
      Restructuring,                                                        
       impairments and                                                      
       related costs            2,977             -            -      2,977 
      Share-based payment                                                   
       expense                      -             -       24,945     24,945 
                            ---------       -------       ------  --------- 
  Total operating expenses    675,281        14,471            -    689,752 
                            ---------       -------       ------  --------- 
      (Loss) income from                                                    
       operations             (53,098)        7,454            -    (45,644)
  Other income (expense)                                                    
      Interest and                                                          
       investment income          (90)            -            -        (90)
      Interest expense,                                                     
       net of amounts                                                       
       capitalized            (61,196)      (10,078)           -    (71,274)
      Loss on                                                               
       extinguishment of                                                    
       debt and credit                                                      
       facilities, net        (98,203)            -            -    (98,203)
      Loss on investments     (27,418)            -            -    (27,418)
      Other expense            (5,664)            -            -     (5,664)
                               ------             -            -     ------ 
  Total other expense        (192,571)      (10,078)           -   (202,649)
                            ---------       -------       ------  --------- 
      Loss before income                                                    
       taxes                 (245,669)       (2,624)           -   (248,293)
      Income tax expense         (175)            -            -       (175)
                            ---------       -------       ------  --------- 
          Net loss          $(245,844)      $(2,624)          $-  $(248,468)
                            =========       =======       ======  ========= 
                                                                            
  (1) Amounts related to share-based payment expense included in operating  
      expenses were as follows:                                             
                                                                            
  Satellite and transmission   $1,349           $67           $-     $1,416 
  Programming and content       4,672            82

Live Blogging the SIRI Q4/2009 earnings call

2010-02-25T10:42:29Z

Orbitcast has been live blogging satellite radio earnings calls as far back as Fall 2006, and today is no different. The Q409 and Full Year 2009 earnings call will be captured and posted up as fast as my little fingers can type, starting today at 8am ET.

If you can't listen to the webcast, or tune in on Sirius channel 126 and XM channel 90, then follow along with other readers. We'll see you at 8am!

(OF COURSE! We just had some connectivity issues - starting now - sorry for the delay)

Mel Karmazin: "we expect to grow subscribers and add over 500,000 net subscribers this year"
Sirius will be a strong cashflow generatator in the coming year
New cars have become the vast majority of our new subscribers
We expect to further grow subscibers with Used Cars
The management team is focusing greater on used cars now
"As we make our service offering better, we will not only increase ARPU, but enhave the 'stickiness'"
Since the merger - Sirius XM have over 1 million subscribers using the "Best of" services
We have no debt this year (and managing amounts in two years)
Bottom line: "We are positioning Sirius Xm to have the agility and flexibilty we need to
It is possible we will qualify for NASDAQ listing with the stock over $1
If that were to happen - we would NOT seek a reverse stock-split
Even if we drop below $1, we will challenge any delisting and ask for a 6-month delay
"We have no plans to execute a reverse split"
On to David Frear...
OEM Penetration for FY - 55%; 60% for the Q4
Self-pay churn under 2%
Well positioned for a continuing recovery in the automotive sector
January auto sales remained level with Q4's seasonally adjusted rate
On track to and expect 19 million subs by year end
Multi-radio subs and internet radio streaming help improve ARPU
Cost savings improved across the board
SAC dropped 9%
Fixed operating costs dropped 6%
(damn, Frear talks too fast - can he take lessons from Mel?)
For 2009 - SXM saw a $463 million in improvement in operations
Free cash improved by a swing of $737 million in a single year
Subscriber acquisition costs will improve in 2010
Many - but not all - of the merger synergies have been realized
2009 adjusted income from operations was significantly higher than we expected
We continue to expect postive cash flow in the coming year
Growing cashflow presents continuing opportunities for the coming year
Q&A now
Q: (David Bank from RBC)
Can you talk a little about what drove the reduction in rev share on the automotive share? Also, what percentage of subs were paying the royalty pass-through? Is that fully baked into the subscriber base?

I know it's kinda tough for you to talk about - but can you give any color for the status on Howard Stern?

In 2010, expenses are going to ramp faster than rev growth - why are revshare royalties growing faster?

A:
(Frear) In terms of revshare: We did adjust one of our agreements to reduce revshare. We are running into "mixed" issues. 2/3 of the self-pay base have had the "music recovery fee" - some subs will never be assessed the fee, such as long-term subs (i.e., Lifetime subs)

In terms of faster growth in some expenses: When we have rapid growth, we incure SAC on the day we get the sub - but the revenue is realized later. You will end up a decent in OEM growth in the end of the year - but you'll realize the revenue in 2011 as a result. When you add it all up - we're showing you very strong contribution margins.

(Mel) On the subject of Howard Stern. I wasnt here at the time that the decision was made to bring on Howard - "bringing Howard to Sirius was great call." I believe that Howard has done his best work in the last 4 years. For the first time, Howard is operating in a very "minimal commercial advertising mode". He has been a "great partner" and "we would like doing business together" - but there's nothing in his contract in terms of a timeframe in terms when we need to do a deal. My suggestion is to "tune to Howard 100" - he talks about his life regularly, and you'll hear it there.
Q: Is outlook for subscriber growth in the automotive sector? Is it safe to assume that the retail sector hasnt recovered?

A: I think that's safe to assume.

Look at it in these terms: The "aftermarket" as we look at it is going to migrate towards the used car market. As people continue to access "radio" it will be in the car.
Follow up Q: How much was the contribution of the used car market in 2009? How does that look like for 2010?

A: It's definitely going to be increasing. We havent broken out those numbers, and I dont think we'll do those today. There's obviously a growing pool - an opportunity - for those to continue to grow. We're going to see the second owner market increase. As volume grows, we'll expect to see those grow.
Q: How does the issues with Toyota impact Sirius XM?

A: In terms of Q4, the impact is ZERO. We don't know how its going to work with their marketshare, but we dont see it impacting us. Mel adds that one of the benefits of the merger is the combining of our OEM partnerships.
Q: With Liberty - is there any scenario where Siruis XM will spin off similar to how DirecTV spun off from Liberty?

A: Hypotheticals of what could exist in the future is something we dont want to comment on. Questions that pertain to Liberty probably should be directed to Malone.
Q: In terms of cost-saves - what do you still have to do?

A: We said this many times - each contract that comes up, we take the opportunity to negotiate because of the bigger buying-power that we have. Everybody knows that Howard's contract is coming up. We are entering our last season with the NFL contract, so that's coming up. NASCAR is coming. In 2011, we are expecting some IT opportunities. We beat the expenses up every month.

You shouldnt expect to see the dramatic improvements that youve seen in the past 18 months, but you should expect to see more.
Q: I'd love to get your thoughts into pricing philosophy? Could you provide any thoughts?

A: Obviously we have a lot of competition. We compete with "free" obviously. Churn has been kept in check despite the MRF. We continue to try to offer our subscriebrs value and look for ways to offer more value. We havent announced anything and I have no comment on wghat we may be doing in the future
Q: The looming 2013 still seems to popup with investors - is there anything you can try to address ahead of time?

A: You should expect us to be smart and opportunistic. Those debts are a "long way out" and the company is improving rapidly and dramatically. If there's an opportunity to go into the markets to get attractive and long term papers, you can expect that we would do so. As we build the cash over the next couple years, we might take advantage of that.
Q: The share of autos with built-in satrad was supposed to be 58%? is that accurate?

A: 60% in Q4. you should expect penetration to be around 60-62%

And that's a wrap!

Opie is going to be a dad... (congrats Opie!)

2010-02-25T00:27:22Z

Gregg "Opie" Hughes (pictured right, next to... Ron "Opie" Howard) revealed to listeners today on The Opie & Anthony Show that he is going to be a father in two-months.
Opie, and wife Lindsay, have kept the news out of the public until today when he revealed it as the "holy shit" moment of the day.

Gregg "Opie" Hughes: Oh yeah, there is the big news, by the way...I'm going to be a father in two months...there's your "holy shit" moment of the day.

Anthony Cumia: That pretty is much the "holy shit" moment of the day.

Opie also thanked his fans for the warm reception on his Twitter:

Opie and Lindsay are expecting their first child, a bouncing baby boy, in April.

I'm sure I share the sentiment of many when I say... Congrats Opie!

Thanks Cory!

The Gayle King Show expands on Sirius XM

2010-02-24T18:39:39Z

Gayle King's live, daily morning call-in show - appropriately named The Gayle King Show - has been expanded to two hours on Oprah Radio, Oprah Winfrey's channel on Sirius XM.

King tackles a blend of news, current events, entertainment and political headlines, human interest stories and social issues on her show every day. She also conducts in-depth interviews with celebrities, notable public figures and newsmakers.

Recent guests to Gayle King's show include Lady GaGa, Beyonce, Jay-Z, Maria Shriver, Mariah Carey, Hugh Jackman, Chris Rock, Forest Whitaker, Diane Keaton, Queen Latifah, and Venus Williams.

The Gayle King Show airs live Monday through Friday, from 9am - 11am ET on Oprah Radio (XM channel 156 and Sirius channel 195). Replays air weekdays at 2pm and 9pm ET, and Saturdays from 6am and 3pm ET.

FCC postpones Sirius XM's channel lease requirement, again

2010-02-24T12:56:19Z

The FCC requirement that Sirius XM Radio Inc. lease out 4 percent of its bandwidth to 3rd parties has once again been extended.

Only, it's not Sirius XM's fault the deadline was extended, but rather the reason for the deadline extension is the FCC's own doing.

The FCC Media Bureau says it's still trying to put together guidelines for implementation of the program.

That's not to say it's not going to happen, of course - the FCC said it feels the decision on the matter will happen "in the near future," and as a result "a brief extension is appropriate."

The deadline has now been extended to May 25, 2010.

Commenters on the merger had expressed their concern for the 3rd party lease program to the FCC. In early 2009, the Commission opened the issue up for public comment - the results of which raised even more concerns.

Sirius and XM had voluntarily agreed to lease a portion of their bandwidth to "eligible" 3rd parties as part of the merger agreement. The merger was made official back in July, 2008 (has it really been nearly two years?).

Talkers Heavy Hundred 2010: Bubba rockets past O&A; Stern remains steady

2010-02-19T13:19:42Z

It's that time of year again, when Talker's Magazine releases their subjective list of top talk radio talent based on "input from industry leaders." This year, we see Bubba the Love Sponge jump up in rankings, Opie & Anthony drop down significantly, and Howard Stern holds steady at the same position as last year. In 2009's Talker's Heavy Hundred list, we saw Howard Stern ranked at #32 - the same position he holds this year for Talker's 2010 list. The magazine writes that Howard Stern "hosts satellite radio's most-listened-to show for 5th year in a row" adding that Stern is a "huge, iconic media figure."

Bubba the Love Sponge on the other hand made a huge leap upward in Talker's Top 100 list. In '09 he was ranked at #52, just behind Opie & Anthony. This year though, and likely due to his re-introduction to terrestrial radio, Bubba has moved up to #45 in the list. Talker's writes that Bubba's "return to AM drive brings big numbers in Tampa and other southern markets."

Opie and Anthony didn't fair as well. Last year they had just edged out Bubba, and ranked at the #51 spot in Talker's Heavy Hundred. This year, they dropped down to the #65 spot. Talker's doesn't have a very positive tone about O&A either, writing that the "legion of rabid fans keeps this hot talk duo going on satellite radio."

None of these numbers are what they used to be, and it definitely seems that Talker's has a significant bias against satellite radio (unsurprising considering the "industry leaders" who make the selections).

In 2006's Heavy Hundred, Howard Stern ranked at the top as #1. In 2007's Talker's list, Stern dropped to #12 while O&A made their debut at #6 on the list. Then 2008's list came out, and Howard fell one spot to #13 while Opie & Anthony came in at #17. The bias truly began to show.

Oh, and just in case you were wondering, Mancow (who was recently pink slipped from Chicago, again) somehow beats out Stern, Bubba and O&A - coming in at #14 on the 2010 Talker's list.

Bias? Nahh

[2010 Talker's Heavy Hundred]

Tiger Woods' expected apology to air on Sirius XM

2010-02-19T02:05:47Z

Tiger Woods will gather a private group together at the TPC Sawgrass clubhouse, shortly before noon tomorrow, and is expected to end his 70-day silence with a public apology over the scandal that has rocked his personal life and career.

The press will be relegated far away from the site, with no cameras allowed (just a single camera satellite feed). Sirius XM - along with countless TV outlets and online as well - will air Woods' comments live from the stately clubhouse in Ponte Vedra Beach, Florida, the site of the PGA Tour's headquarters.

Tiger is also expected to announce his return to golf, ending his self-imposed exile from the sport.

Sirius XM Radio will provide live coverage of Tiger Woods' public statement tomorrow, at 11am ET on Mad Dog Radio (Sirius channel 123, XM channel 144) and The PGA Tour Network (XM channel 146, Sirius channel 209).

Regularly scheduled talk programming on Mad Dog Radio and The PGA Tour Network will air as scheduled before and after Woods' statement.

Sirius XM hosts will provide their thoughts, commentary and analysis of the day's news and invite listeners to call-in with their reaction and opinions throughout the day.

Sirius XM's 2009 results coming on Feb 25th

2010-02-18T23:37:36Z

Mark your calendar, because on Thursday, February 25th at 8am ET, Sirius XM Radio Inc. will release their full-year 2009 and fourth-quarter results.

You'll be able to listen to the result via webcast, or on Sirius channel 126 and XM channel 90. If you're not near a radio, have no fear, because Orbitcast will be live-blogging the earnings call so you can read along and stay up to date.

See you there!

SIRI rallys above $1!

2010-02-17T18:42:10Z

After 17 months, Sirius XM Radio Inc. stock has jumped up to over $1, breaking a critical barrier for the satellite radio company.

The stock vaulted up 8.5 percent this morning to break the $1 barrier - .

Remaining above $1 removes the threat of delisting by Nasdaq, which was a dangling issue since September 2008.

There's another sweet spot that beating $1 has - it makes the stock more appetizing to mutual funds that normally shy away from stock in the sub-$1 range.

So this is a joyous moment! Share your feelings in the comments below.

[Reuters]