- Total Subscribers of 2.2 million; year-over-year net additions of 183,800
- Revenue grew 10.8% to a record $70.7 million
- Adjusted EBITDA** increased 60.6% to a record $19.1 million
- Net income of $4.1 million, up $6.8 million year-over-year
- Free cash flow increased 10.0% to $13.0 million
TORONTO, April 11, 2013 /CNW/ - Sirius XM Canada Holdings Inc. ("SiriusXM Canada" or the "Company") (TSX: XSR), parent of Sirius XM Canada Inc., today released unaudited financial results for the quarter and year-to-date period ended February 28, 2013 ("Q2 FY2013" and "YTD FY2013" respectively) prepared in accordance with International Financial Reporting Standards (IFRS)1. A summary of IFRS financial results for Q2 and YTD FY2013 is attached. All results are reported in Canadian dollars unless otherwise stated.
Q2 FY2013 Highlights
- Self-Paying Subscribers increased 12.8% to 1,640,800 from 1,454,500 at February 29, 2012
- Revenue grew 10.8% to $70.7 million from $63.8 million for Q2 FY2012
- Adjusted EBITDA increased 60.6% to $19.1 million from $11.9 million in Q2 FY2012
- Net income increased to $4.1 million from a loss of $2.7 million in Q2 FY2012
- Free cash flow increased 10.0% to $13.0 million from $11.8 million in Q2 FY2012
- Cash, cash equivalents and short term investments of $51.8 million at February 28, 2012
- Launched new sales program targeted at the pre-owned vehicle market
Year-to-date FY2013 Highlights
- Revenue grew 10.0% to $139.6 million from $126.9 million for the same period in FY2012
- Adjusted EBITDA increased 49.6% to $37.1 million from $24.8 million for the same period in FY2012
- Net income increased to $7.3 million from a loss of $6.1 million for the same period in FY2012
- Free cash flow increased 28.0% to $26.7 million from $20.8 million for the same period in FY2012
"Our year-over-year top-line improvements highlight our success in executing on our diversified revenue growth strategy," said Mark Redmond, President and CEO, SiriusXM Canada. "We added self-paying subscribers through our new car program and win back initiatives, and we benefited from our price increase. ARPU was up compared to Q2 last year. Reflecting our continued focus on cost efficiencies and profitable growth, we generated record Adjusted EBITDA and strong free cash flow. During the quarter, we also launched our in-dealership pre-owned vehicle program. We expect the pre-owned vehicle market to be an important growth driver over the long-term, as the number of satellite-equipped pre-owned vehicles on the road increases. Looking to the remainder of fiscal 2013, we believe we are well-positioned for continued year-over-year improvements in all of our key financial metrics as we continue to capitalize on our new service offerings, the pre-owned vehicle market and our overall enhanced customer experience."
Financial and Operational Summary
Below, the Company has provided certain non-GAAP measures and industry metrics. These figures are subject to the qualification and assumptions set out in the notes to such results.
1 For a complete set of financial results including the accompanying notes please refer to the Company's filings on www.sedar.com
|Financial *||Q2 FY2013||Q2 FY2012||YTD FY2013||YTD FY2012|
|(ended February 28, 2013)||(ended February 29, 2012)||(ended February 28, 2013)||(ended February 29, 2012)|
|Net Income (Loss)||$4,079||($2,695)||$7,337||($6,107)|
|Subscriber Acquisition Cost (SAC)||$44||$46||$45||$50|
|Cost Per Gross Addition (CPGA)||$72||$74||$72||$78|
| * All figures in the table above are in thousands except, SAC and CPGA
** Adjusted EBITDA is a non-GAAP measure. A reconciliation of operating income to both EBITDA and Adjusted EBITDA is provided below.
"Through our stable recurring revenue stream, now at $70 million a quarter, and ability to drive growth while managing our operating expenses and capital investments, we continue to generate strong free cash flow," said Michael Washinushi, CFO SiriusXM Canada. "Even when factoring in approximately $26 million in dividend payments by quarter end, we exited Q2 with a solid balance of $51.8 million in cash, cash equivalents and short-term investments. We have also further strengthened our overall financial profile, lowering our leverage ratio, net debt to Adjusted EBITDA, to 1.6 in Q2 2013 compared to 2.6 in Q2 last year."
Q2 and YTD FY2013 Financial Review
For Q2 FY2013, revenue was $70.7 million, up $6.9 million, or 10.8%, from $63.8 million in Q2 FY2012. The year-over-year improvement was a result of the continued growth in the Company's revenue-generating subscriber base, as well as an increase in Average Revenue Per User (ARPU). Q2 FY2013 ARPU was $11.60, up from $11.57 in Q2 FY2012. For YTD FY2013, revenue was $139.6 million, up $12.7 million, or 10.0%, from $126.9 million for the same period in FY2012. ARPU for YTD FY2013 was $11.48 compared to $11.58 for the same period in FY2012.
SAC was $44 in Q2 FY2013, down from $46 in Q2 FY2012. The year-over-year improvement was due to lower subsidy costs and higher gross additions. SAC for YTD FY2013 was $45, down from $50 for the same period in FY2012.
CPGA was $72 in Q2 FY2013, down from $74 in Q2 FY2012. The year-over-year improvement reflects lower subsidy and marketing costs as well as higher gross subscriber additions. CPGA for YTD FY2013 was $72, down from $78 for the same period in FY2012.
Q2 FY2013 Adjusted EBITDA was $19.1 million, representing a 60.6%, or $7.2 million, increase from Adjusted EBITDA of $11.9 million in Q2 FY2012. The year-over-year improvement was a result of the combination of the Company's top-line growth and a $0.5 million decrease in total operating expenses. YTD FY2013 Adjusted EBITDA was $37.1 million, an increase of 49.6%, or $12.3 million, from $24.8 million for the same period in FY2012.
In Q2 FY2013, SiriusXM Canada generated $13.0 million in free cash flow. The Company generated $16.7 million in cash from operations, used cash of $9.0 million in investing activities and used $26.0 million of cash in financing activities. Comparatively, in Q2 FY2012, SiriusXM Canada generated $11.8 million in free cash flow. The Company generated $12.0 million in cash from operations, used cash of $0.2 million in investing activities and used $10.9 million of cash in financing activities. For YTD FY2013, SiriusXM Canada generated $26.7 million in free cash flow. The Company generated $31.8 million in cash from operations, used cash of $10.4 million in investing activities and used $25.8 million of cash in financing activities. Comparatively, for the same period in FY2012, SiriusXM Canada generated $20.8 million in free cash flow. The Company generated $22.0 million in cash from operations, used cash of $1.1 million in investing activities and used $10.8 million of cash in financing activities.
As at February 28, 2013, SiriusXM Canada had total cash, cash equivalents and short-term investments of $51.8 million, down from $64.9 million as at November 30, 2012. The decrease reflects the Company's efforts to strategically deploy its cash, paying $26.4 million in dividends as per its dividend policy.
Conference Call and Webcast Details
SiriusXM Canada will hold a conference call to discuss the Company's Q2 FY2013 results on Thursday, April 11, 2013 at 8:30 a.m. ET. All interested parties can join the call by dialling 647-427-7450, or 1-888-231-8191. Please dial-in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until Thursday, April 18, 2013 at midnight. To access the archived conference call, please dial 416-849-0833, or 1-855-859-2056 and enter the reservation code 25972990. A live audio webcast of the conference call will be available at www.newswire.ca. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 365 days at www.newswire.ca.
The following is a reconciliation of unaudited EBITDA and unaudited Adjusted EBITDA to Operating Income.
|(In $000's)||Q2 FY2013||Q2 FY2012||YTD FY2013||YTD FY2012|
|Depreciation & Amortization||8,703||10,044||17,137||20,984|
|Stock based compensation||538||433||1,332||827|
|Integration, severance and merger costs||-||359||-||1,277|
|Fair value adjustments*||44||317||144||663|
|* Fair value adjustment relates to the reduction in revenue due to the valuation of deferred revenue as per purchase price accounting|
Please see the Company's Management Discussion & Analysis filed April 11, 2013 for more details on the Company's Q2 and YTD FY2013 results. 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 unaudited consolidated statement of operations and comprehensive income. Please see the Company's Management Discussion & Analysis filed April 11, 2013 for complete definition of non-GAAP measures.
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. 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 Canadian Satellite Radio Holdings Inc.'s filings with the Canadian securities regulators, available at www.sedar.com.
About SiriusXM Canada
Sirius XM Canada Holdings Inc. (TSX: XSR) operates as SiriusXM Canada. SiriusXM Canada, with over 2.2 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 and entertainment brands as well as every major sport including the NHL, NFL, MLB and CFL.
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 www.siriusxm.ca and on Apple, BlackBerry and Android-powered mobile devices.
SiriusXM Canada has partnerships with every major automaker and its radio products are available at more than 3,000 retail locations nationwide. To find out more about SiriusXM Canada (TSX: XSR), visit our website at www.siriusxm.ca.
|CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE|
|(Canadian dollars)||Three Months ended||Six Months ended|
|February 28,||February 29,||February 28,||February 29,|
|Severance and merger costs||—||358,939||—||1,276,962|
|Depreciation and amortization||8,702,594||10,044,378||17,136,596||20,984,463|
|Finance costs, net|
|Foreign exchange gain (loss)||(315,846)||345,474||(464,510)||(156,575)|
|Loss (gain) on revaluation of|
|Net income (loss) before income tax||5,760,246||(3,174,629)||10,484,297||(7,723,639)|
|Income tax (expense) recovery||(1,681,297)||479,759||(3,147,384)||1,617,012|
|Net income (loss) and comprehensive|
|Basic and fully diluted (loss) earnings|
|CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS'|
|For the six months ended||Capital||Surplus||deficit||Equity|
|Balance, September 1, 2011||147,169,430||4,324,032||(104,017,424)||47,476,038|
|Total comprehensive (loss) for the year||—||—||(6,106,627)||(6,106,627)|
|Stock options exercised||1,034,639||(640,731)||—||393,908|
|Balance, February 29, 2012||148,204,069||4,510,428||(110,124,051)||42,590,446|
|Balance, September 1, 2012||148,393,493||5,057,501||(108,196,240)||45,254,754|
|Total comprehensive income for the year||—||—||7,336,913||7,336,913|
|Stock options exercised||1,166,684||(586,038)||—||580,646|
|Balance, February 28, 2013||149,560,177||5,803,543||(131,360,695)||24,003,025|
|CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS|
|(Canadian dollars)||Three months ended||Six months ended|
|February 28,||February||February 28,||February|
|2013||29, 2012||2013||29, 2012|
|Cash provided by (used in)|
|Net income (loss) for the period||4,078,949||(2,694,870)||7,336,913||(6,106,627)|
|Add(deduct) items not involving cash|
|Amortization of intangible assets||8,193, 125||9,376,466||15,983,134||19,527,649|
|Depreciation of property and|
|Deferred tax expense (recovery)||1,681,297||(479,759)||3,147,384||(1,617,012)|
|Revaluation of derivative||—||(10,714)||(51,378)||17,793|
|Unrealized foreign exchange losses|
|Net change in non-cash working capital|
|and deferred revenue related to|
|Cash provided by operating activities||16,702,180||11,979,457||31,834,623||21,983,998|
|Purchase of property and equipment||(800)||(83,751)||(31,402)||(595,052)|
|Purchase of intangible assets||(3,736,944)||(111,926)||(5,129,230)||(550,683)|
|Purchase of bonds||(5,306,295)||—||(5,306,295)||—|
|Interest on bonds||51,574||—||51,574||—|
|Cash used by investing activities||(8,992,465)||(195,677)||(10,415,353)||(1,145,735)|
|Payment of dividends||(26,434,670)||—||(26,434,670)||—|
|Payment of related party promissory|
|Proceeds from exercise of stock options||409,269||281,796||580,646||393,908|
|Cash used by financing activities||(26,025,401)||(10,891,494)||(25,854,024)||(10,779,382)|
|Net increase in cash and cash|
|equivalents during the period||(18,315,686)||892,286||(4,434,754)||10,058,881|
|Cash and cash equivalents, beginning of|
|Cash and cash equivalents, end of period||46,599,995||36,074,320||46,599,995||36,074,320|
SOURCE: Sirius XM Canada Holdings Inc.
For further information:
Sirius XM Canada
416-815-0700 ext 273