SiriusXM Canada Reports Record Total Subscribers and Revenue for Fiscal 2015 Year-End and Fourth Quarter

- Net self-pay subscriber growth for the year fuels total subscriber all-time high, top-line improvements and increased profitability -

TORONTO, Oct. 29, 2015 /CNW/ - Sirius XM Canada Holdings Inc. ("SiriusXM Canada" or the "Company") (TSX: XSR), parent of Sirius XM Canada Inc., today released financial results for its fiscal year 2015 ("FY2015") and fourth quarter ("Q4 FY2015") ended August 31, 2015 prepared in accordance with International Financial Reporting Standards (IFRS). A summary of IFRS financial results for Q4 FY2015 and FY2015 is attached.  All results are reported in Canadian dollars unless otherwise stated.

Q4 and Year-End FY2015 Financial and Operating Metrics

The figures below include certain non-GAAP measures and industry metrics. These figures are subject to the qualification and assumptions set out in the Company's notes to such results. For easier comparability, the table and financial review below exclude the impact of income tax expense and withholding tax expense due to Canada Revenue Agency reassessments in FY2015 and the impact of the Company's debt refinancing in FY2014. Please see the Company's reconciliation table below or the Company's MD&A for more detail.

Financial1     Q4 FY2015   Q4 FY2014   % Change   FY2015   FY2014   % Change
      Aug 31, 2015   Aug 31, 2014       Aug 31, 2015   Aug 31, 2014    
Revenue     83,709   77,121   8.5%   325,874   303,500   7.4%
Adjusted EBITDA2     12,792   12,202   4.8%   79,214   79,025   0.2%
Normalized net income3     2,406   1,200   100.5%   28,227   19,708   43.2%
Normalized free cash flow4     15,817   10,501   50.6%   55,157   45,944   20.1%
Self-Paying Subscribers     1,925   1,852   4.0%   1,925   1,852   4.0%
Total Subscribers     2,726   2,612   4.4%   2,726   2,612   4.4%
Self-Pay ARPU5     $12.69   $12.25   3.6%   $12.61   $12.15   3.8%
Subscriber Acquisition Cost (SAC)     $40   $38   5.3%   $39   $38   2.6%
Cost Per Gross Addition (CPGA)     $71   $66   7.6%   $66   $64   3.1%
1All figures in the table above are in thousands except, ARPU, SAC and CPGA.
2Adjusted EBITDA is a non-GAAP measure. A reconciliation of income (loss) before taxes to both EBITDA and Adjusted EBITDA,
including a one-time $15.9 million withholding tax in FY2015 is provided below.
3Adjusted for a one-time after-tax $12.2 million debt refinancing charge in FY2014 as well as a $15.9 million withholding tax
expense and a $19.1 million, non-cash income tax expense for FY2015. Please refer to the reconciliation tables below and
the Company's MD&A for more detail.
4FY2014 adjusted for $10.4 million call premium related to the Company's debt refinancing.
5Self-Pay ARPU is derived from the total of earned subscription revenue from Self-Pay subscribers and the music royalty and
regulatory fee and activation fees, divided by the monthly weighted average number of Self-Paying subscribers. Please see
the Company's MD&A for a more detailed description.

"Fiscal 2015 ended on a high note, with us delivering growth across all of our key metrics," said Mark Redmond, President and CEO, SiriusXM Canada. "Total subscribers reached at an all-time high, and we delivered record quarterly and annual revenue. Supported by substantial net self-pay subscriber additions in Q4, we achieved our stated goal of mid-single digit growth for the year. We also generated year-over-year improvements in Adjusted EBITDA and normalized free cash flow. This was despite a much larger cost base due to higher copyright fees and increasing foreign exchange headwinds as we moved through the year. As expected, we saw churn continue to improve in Q2, Q3 and Q4, with it coming in particularly strong at 1.76 per cent for the quarter."

Mr. Redmond continued: "With the superior overall audio entertainment experience we provide and our growing addressable market, our long-term opportunities are significant. Our content is a major competitive advantage. It is unrivaled. As we continue to demonstrate with the launch of new shows and channels, we are committed to further enhancing our programming line-up to attract even more listeners. We remain confident in our ability to continue to deliver top-line growth, strong Adjusted EBITDA and free cash flow."

Key Factors Affecting FY2015 and FY2014 Reported Results
For FY2014 and FY2015 periods, there were one-time events that affected the Company's results. In Q3 FY2014, the Company redeemed $130.8 million outstanding 9.75% senior notes that were due 2018.  This resulted in a total pre-tax debt refinancing charge of $16.6 million (after-tax - $12.2 million) including $10.4 million call premium for early redemption of debt. For FY2015, the company recognized a one-time, non-cash $19.1 million income tax expense and a $15.9 million withholding tax expense in Q2 2015 related to Canada Revenue Agency reassessments that the Company is currently disputing. For the discussion below, the Company has compared normalized results as it believes this approach provides a more accurate depiction of its year-over-year performance. Please refer to the reconciliation tables below and the Company's MD&A for more detail.

Q4 and Year-End FY2015 Results Financial Review
For Q4 FY2015, revenue was $83.7 million, up $6.6 million, or 8.5%, from $77.1 million in Q4 FY2014. The year-over-year improvement reflects growth in the Company's self-paying subscriber base and an increase in Self-Pay ARPU. Q4 FY2015 Self-Pay ARPU was $12.69, up 3.6% from $12.25 in Q4 FY2014 driven by the Company's implementation of its increased Music Royalty and Regulatory Fee (MRF) on renewing subscribers. For FY2015, revenue was $325.9 million, up $22.4 million, or 7.4%, from $303.5 million for FY2014. Self-Pay ARPU for FY2015 was $12.61, up 3.8% compared to $12.15 for FY2014.

Adjusted EBITDA for Q4 FY2015, increased $0.6 million, or 4.8%, to $12.8 million from $12.2 million in Q4 FY2014. The year-over-year increase was a result of revenue growth partially offset by an increase in the Company's copyright fees and higher overall marketing costs due to increased volumes and penetration rates, investments in the pre-owned vehicle market and product development costs. For FY2015, Adjusted EBITDA, which excludes a one-time adjustment related to the withholding tax provision the Company took, was $79.2 million, an increase of $0.2 million, or 0.2%, from $79.0 million for the same period in FY2014.

The Company recorded net income of $2.4 million in Q4 FY2015, up $1.2 million, or 100.5%, compared to net income of $1.2 million in Q4 FY2014. For FY2015, net income was $28.2 million, excluding a one-time income tax expense and withholding tax expense. This was up $8.5 million, or 43.2%, from net income of $19.7 million for FY2014, after normalizing for the after-tax debt refinancing charge the Company incurred in FY2014.

SAC for Q4 FY2015 was $40, up from $38 in Q4 FY2014 as a result of higher subsidy costs and an unfavorable impact of a weakened Canadian dollar versus the US dollar. SAC increased marginally to $39 in FY2015 from $38 in FY2014.

CPGA was $71 in Q4 FY2015, up from $66 in Q4 FY2014, reflecting higher subsidy and marketing costs, offset, in part, by higher gross additions from the pre-owned vehicle channel. CPGA increased to $66 in FY2015 from $64 in FY2014.

In Q4 FY2015, the Company generated $18.3 million in cash from operating activities, up $4.1 million, or 29.0%, from $14.2 million in cash from operating activities in Q4 FY2014. As a result of year-over-year changes in working capital and lower interest payments in FY2015, the Company generated $71.0 million in cash from operating activities, up $11.0 million, or 18.3%, from $60.0 million in cash from operating activities in FY2014, after adjusting for the call premium of $10.4 million related to the Company's debt refinancing.

The Company generated free cash flow of $15.8 million in Q4 FY2015, up $5.3 million, or 50.6%, from $10.5 million in Q4 FY2014 reflecting a $4.1 million increase in cash from operations coupled with a $1.2 million decrease in capital spending, as the Company completed the implementation of its unified Subscriber Management System, in Q3 FY2015. For FY2015, the Company generated $55.2 million of free cash flow, up $9.2 million, or 20.1%, compared to $45.9 million in FY2014, after adjusting for call premium for repayment of debt. The year-over-year increase reflects higher cash from operations offset by higher capital expenditures in FY2015.

As at August 31, 2015, the Company had total cash and cash equivalents of $26.1 million compared to $23.8 million as at May 31, 2015. The increase is primarily due to cash flow from operating activities of $18.3 million in Q4 FY2015 offset by dividend payments of $13.5 million and capital expenditures of $2.5 million.

Conference Call and Webcast Details
SiriusXM Canada will hold a conference call to discuss the Company's Q4 and year-end FY2015 results on Friday, October 30, 2015 at 8:30 a.m. ET.  All interested parties can join the call by dialing 647-427-7450, or 1-888-231-8191.  Please dial in 15 minutes prior to the call to secure a line.  The conference will be archived for replay until Friday, November 6, 2015 at midnight. To access the archived conference call, please dial 416-849-0833 or 1-855-859-2056 and enter reservation code: 56558816.  A live audio webcast of the conference call will be available here: . Please connect at least 15 minutes prior to the conference call top ensure adequate time for any software downloads that may be required. An archived replay will be available for 90 days.

The following is a reconciliation of EBITDA and Adjusted EBITDA to Income (loss) before income taxes.

Adjusted EBITDA: Reconciliation           Three months ended August 31,       Fiscal year ended August 31,
In ($ 000's)           2015   2014       2015   2014
              Q4 2015   Q4 2014       FY 2015   FY 2014
  Income (loss) before income taxes           3,564   2,029       24,416   11,373
  Interest expense & income           3,071   2,888       12,213   14,407
  Loss on debt repayment                     16,636
  Foreign exchange loss           280   13       331   265
  Amortization           5,514   6,837       22,936   33,727
EBITDA           12,429   11,767       59,896   76,408
  Withholding tax expense                   15,887  
  Stock-based compensation           363   431       3,427   2,550
  Fair value adjustments *             4       4   67
Adjusted EBITDA           12,792   12,202       79,214   79,025
* Fair value adjustment relates to reduction in revenue due to valuation of deferred revenue as per purchase price accounting

For easier comparability, the table below shows the normalized results for fiscal FY2015 and FY2014 after adjusting for income tax expense and withholding tax expense in FY2015 and early redemption of debt in FY2014.

    FY 2015   FY 2014   Change
in ($000's)   As
  CRA Tax
  FY 2015
  Loss on
  FY 2014
  $   %
Revenue   325,874     325,874   303,500     303,500   22,374   7.4%
Operating costs   250,091     250,091   227,093     227,093   22,998   10.1%
Depreciation and amortization   22,936     22,936   33,727     33,727   (10,791)   (32.0)%
Operating income   52,847     52,847   42,680     42,680   10,167   23.8%
Withholding tax expense   (15,887)   15,887             —%
Finance costs, net   (12,544)     (12,544)   (31,307)   16,636   (14,671)   2,127   (14.5)%
Income tax expense (recovery)   (31,164)   19,088   (12,076)   (3,892)   (4,409)   (8,301)   (3,775)   45.5%
Net income (loss)   (6,748)   34,975   28,227   7,481   12,227   19,708   8,519   43.2%
Add back:                                
Finance costs, net   (12,544)     (12,544)   (31,307)   16,636   (14,671)   2,127   (14.5)%
Income tax expense (recovery)   (31,164)   19,088   (12,076)   (3,892)   (4,409)   (8,301)   (3,775)   45.5%
Depreciation and amortization   22,936     22,936   33,727     33,727   (10,791)   (32.0)%
EBITDA   59,896   15,887   75,783   76,408     76,408   (625)   (0.8)%
Withholding tax expense   (15,887)   (15,887)             —%
Stock based compensation   3,427     3,427   2,550     2,550   877   34.4%
Fair value adjustments   4     4   67     67   (63)   (94.0)%
Adjusted EBITDA   79,214     79,214   79,025     79,025   189   0.2%

For complete definition of non-GAAP measures and for more details on the Company's Q4 and FY2015 results, please see the Company's Annual Management Discussion & Analysis filed October 29, 2015 which is incorporated herein by reference. The non-GAAP measures used in this press release should be used in addition to, but not as a substitute for, the analysis provided in the condensed consolidated financial statements for FY 2015.

Forward-Looking Statements
Certain statements included above may be forward-looking in nature. Such statements can be identified by the use of forward-looking terminology such as "expects," "may," "will," "should," "intend," "plan," or "anticipates" or the negative thereof or comparable terminology, or by discussions of strategy. Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance, or other statements that are not statements of fact, including with respect to the payment of dividends in the future and future performance. Although SiriusXM Canada believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct, including with respect to the ability of the Company to pay dividends in the future, the redemption of Sirius XM Canada's 5.625% Senior Unsecured Notes, and the terms, timing and conditions of any refinancing of such notes. SiriusXM Canada's forward-looking statements are expressly qualified in their entirety by this cautionary statement. SiriusXM Canada makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made, except as required by applicable law. Additional information identifying risks and uncertainties is contained in Sirius XM Canada Holdings Inc.'s filings with the Canadian securities regulators, available at

About SiriusXM Canada
Sirius XM Canada Holdings Inc. (TSX: XSR) operates as SiriusXM Canada. SiriusXM Canada, with more than 2.7 million subscribers, is the country's leading audio entertainment company and broadcasts more than 120 satellite radio channels featuring premier sports, news, talk, entertainment and commercial-free music. SiriusXM Canada offers an array of content from the most recognized news, entertainment and major sports brands including the NHL, NFL, NBA, NASCAR, CNN, CBC, FOX, BBC, Howard Stern, Disney, Comedy Central and more.

SiriusXM programming is available on a variety of devices including pre-installed and after-market radios in cars, trucks and boats, smartphones and mobile devices, and consumer electronics products for homes and offices. SiriusXM programming is also available online at and on Apple and Android-powered mobile devices.

SiriusXM Canada has partnerships with every major automaker and its radio products are available at more than 2,500 retail locations nationwide. To find out more about SiriusXM Canada, visit our website at

SiriusXM Canada has been designated one of Canada's 50 Best Managed Companies six years in a row and 2013, 2014 and 2015 rankings in PROFIT 500's list of Canada's Fastest Growing Companies.

Join SiriusXM Canada on Facebook at, on Twitter at and on Youtube at

At                       August 31,       August 31,
(in thousands of Canadian dollars)                       2015       2014
Current assets                                
Cash and cash equivalents                       26,128       23,868
Accounts receivable                       9,436       13,455
Prepaid expenses                       5,337       4,251
Inventory                       35       559
Total current assets                       40,936       42,133
Long-term prepaid expenses                       305       456
Property and equipment                       4,285       4,508
Intangible assets                       131,410       134,971
Deferred tax assets                       19,428       50,592
Goodwill                       96,733       96,733
Total assets                       293,097       329,393
LIABILITIES AND SHAREHOLDERS' DEFICIENCY                                
Current liabilities                                
Trade and other payables                       52,545       44,121
Due to related parties                       15,950       9,146
Interest payable                       3,966       3,966
Deferred revenue                       153,076       146,111
Provisions                       983       506
Total current liabilities                       226,520       203,850
Deferred revenue                       12,033       15,076
Other long-term liabilities                       651       533
Due to related parties                       1,208       1,324
Long-term debt                       196,036       195,464
Provisions                       95       374
Total liabilities                       436,543       416,621
Shareholders' deficiency                                
Share capital                       178,479       176,862
Contributed surplus                       8,817       6,067
Accumulated deficit                       (330,742)       (270,157)
Total shareholders' deficiency                       (143,446)       (87,228)
Total liabilities and shareholders' deficiency                       293,097       329,393

Approved by the Board of Directors

      (signed) Christine Magee         (signed) Anthony Viner
      Christine Magee, Director         Anthony Viner, Director

For the year ended August 31,                 Share     Contributed     Accumulated   Shareholders'
(in thousands of Canadian dollars)                 Capital     Surplus     Deficit   Equity (Deficiency)
Balance, September 1 , 2013                 151,795     6,161     (149,713)   8,243
Net income for the period                         7,481   7,481
Stock-based compensation                     2,550       2,550
Dividends                         (127,925)   (127,925)
Stock options exercised                 3,528     (1,105)       2,423
Conversion of convertible notes                 21,539     (1,539)       20,000
Balance at August 31, 2014                 176,862     6,067     (270,157)   (87,228)
Balance, September 1 , 2014                 176,862     6,067     (270,157)   (87,228)
Net loss for the period                         (6,748   (6,748)
Stock-based compensation                     3,427       3,427
Dividends                         (53,837)   (53,837)
Stock options exercised                 1,617     (677)       940
Balance at August 31, 2015                 178,479     8,817     (330,742)   (143,446)

For the year ended August 31,                          
(in thousands of Canadian dollars, except per share amounts)                 2015       2014
Revenue                 325,874       303,500
Operating expenses                          
  Operating costs                 250,091       227,093
  Depreciation and amortization                 22,936       33,727
Operating income                 52,847       42,680
Withholding tax recovery (expense)                 (15,887)      
Finance costs, net                          
  Interest income                 288       843
  Interest expense                 (12,501)       (15,249)
  Loss on debt repayment                       (13,196)
  Change in fair value of embedded derivative                       (3,440)
  Foreign exchange loss                 (331)       (265)
Finance costs, net                 (12,544)       (31,307)
Net income before income tax                 24,416       11,373
Income tax expense                 (31,164)       (3,892)
Net income (loss) and comprehensive income (loss)                 (6,748)       7,481
Earnings (loss) per share - basic and diluted                 (0.05)       0.06

For the year ended August 31,                    
(in thousands of Canadian dollars)           2015       2014
Cash provided by (used in)                    
OPERATING ACTIVITIES                    
Net income (loss) for the period           (6,748)       7,481
Add (deduct) items not involving cash                    
  Amortization of intangible assets           21,013       30,861
  Depreciation of property and equipment           1,923       2,866
  Income tax expense           31,164       3,892
  Stock-based compensation           3,427       2,550
  Accrued interest                 1,261
  Interest accretion           572       3,821
  Change in fair value of embedded derivative                 3,440
  Foreign exchange loss           583       171
Net change in non-cash working capital and deferred revenue related to operations           19,021       (6,778)
Cash provided by operating activities           70,955       49,565
INVESTING ACTIVITIES                    
Purchase of property and equipment           (1,845)       (1,148)
Purchase of intangible assets           (13,098)       (12,884)
Prepayment for property and equipment           (855)      
Maturity of short-term investments                 5,063
Interest received on short-term investments                 199
Cash used in investing activities           (15,798)       (8,770)
FINANCING ACTIVITIES                    
Payment of dividends           (53,837)       (127,925)
Proceeds from issuance of debt                 200,000
Debt financing fees                 (4,733)
Repayment of debt                 (130,771)
Proceeds from exercise of stock options           940       2,424
Cash used in financing activities           (52,897)       (61,005)
Net increase (decrease) in cash and cash equivalents during the year           2,260       (20,210)
Cash and cash equivalents, beginning of year           23,868       44,078
Cash and cash equivalents, end of year           26,128       23,868


SOURCE Sirius XM Canada Holdings Inc.

For further information:

Robbie Sra
SiriusXM Canada
Tel: 416-513-7407

Kristen Dickson

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