SiriusXM Canada Reports Record Revenue in Q1 Fiscal 2014
- Record Revenue of $76.4 million, up 11.0% year-over-year
- Adjusted EBITDA** of $19.6 million, up 9.4% year-over-year
- Net Income of $3.5 million, up 7.3% million year-over-year
- Cash from operations of $15.6 million, up 3.2% year-over-year
- Total Subscribers of 2.4 million; year-over-year net additions of 203,200
TORONTO, Jan. 14, 2014 /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 ended November 30, 2014 (Q1 FY2014) prepared in accordance with International Financial Reporting Standards (IFRS). A summary of IFRS financial results for Q1 FY2014 is attached1. All results are reported in Canadian dollars unless otherwise stated.
Q1 FY2014 Financial Highlights
- Revenue grew 11.0% to $76.4 million from $68.9 million in Q1 2013
- Adjusted EBITDA increased 9.4% to $19.6 million from $18.0 million in Q1 2013
- Net Income increased 7.3% to $3.5 million from a net income of $3.3 in Q1 2013
- Cash from operations increased 3.2% to $15.6 million, from $15.1 million in Q1 2013
- Self-Paying Subscribers increased 8.5% to 1.8 million from 1.6 million at November 30, 2013
- Declared a cash dividend of $0.1050 per Class A Subordinate Voting Share and $0.0350 per Class B Voting Share
"The momentum we built in 2013 has continued into 2014, resulting in a strong start to the new fiscal year," said Mark Redmond, President and CEO, SiriusXM Canada. "It's been eight years since the satellite radio category launched in Canada and we are still generating double revenue digit growth; a true sign of strength of our business. Further, with 2.4 million subscribers, in that eight-year period, we have also established ourselves as Canada's largest subscription-based media business. The momentum in our business and the achievement of these milestones are a testament to the effectiveness of our strategy and the hard work of our team.
Looking ahead to the remainder of the fiscal year and beyond, we see good opportunities to maintain our growth momentum by capitalizing on strong sales in the new vehicle segment, increasing our penetration rate with OEM partners, expanding our pre-owned vehicle program and providing an enhanced overall customer experience with new technologies. Fiscal 2014 promises to be an exciting time for SiriusXM Canada"
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.
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1 For a complete set of financial results including the accompanying notes please refer to the Company's filings on www.sedar.com
| Financial * | Q1 FY2014 | Q1 FY2013 | ||
| (ended Nov 30, 2013) | (ended Nov 30, 2012) | |||
| (Unaudited) | (Unaudited) | |||
| Total Revenue | $76,436 | $68,891 | ||
| Adjusted EBITDA** | $19,638 | $17,957 | ||
| Net Income | $3,494 | $3,258 | ||
| Operating* | ||||
| Self-Paying Subscribers | 1,756 | 1,618 | ||
| Total Subscribers | 2,424 | 2,221 | ||
| ARPU | $11.53 | $11.37 | ||
| Subscriber Acquisition Cost (SAC) | $43 | $45 | ||
| Cost Per Gross Addition (CPGA) | $69 | $71 |
| * All figures in the table above are in thousands except, ARPU, SAC and CPGA |
| ** Adjusted EBITDA is a non-GAAP measure. A reconciliation of operating income to both EBITDA and Adjusted EBITDA is provided below. |
"In the first quarter, we posted another quarter of double digit revenue growth and continued to deliver a solid increase in our profitability. At over $63 million, our cash position is strong, providing ample liquidity and flexibility to support our exciting growth initiatives as well as for us to continue returning capital to shareholders going forward," said Michael Washinushi, CFO, SiriusXM Canada.
Q1 FY2014 Results Financial Review
For Q1 FY2014 revenue was $76.4 million, up $7.5 million, or 11.0%, from $68.9 million for the same period in 2013.
Q1 FY2014 Adjusted EBITDA improved to $19.6 million, representing a 9.4% increase, or $1.6 million improvement, from Adjusted EBITDA of $18.0 million in Q1 2013. The year-over-year increase was a result of the Company's top-line growth partly offset by increases in cost of revenue and marketing expenses.
SAC was $43 in Q1 FY2014 down from $45 in Q1 2013. The decrease for the quarter was due primarily to a one-time gain of approximately $0.4 million due to the revision of an estimate for the inventory provision for radios sold through the retail channel.
CPGA was $69 in Q1 FY2014 down from $71 in Q1 2013 due to lower SAC and lower marketing costs per gross addition.
In Q1 FY2014, the Company generated $15.6 million in cash from operations, used $2.8 million of cash in investing activities, and generated $1.0 million of cash in financing activities. The Company generated $12.8 million in free cash flow in Q1 FY2014.
As at November 30, 2013, SiriusXM Canada had total cash and cash equivalents and short term investments of $63.0 million, up from $49.2 million as at August 31, 2013.
Conference Call and Webcast Details
SiriusXM Canada will hold a conference call to discuss the Company's FY2014 Q1 results on Wednesday, January 15, 2014 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 call will be archived for replay until Wednesday, January 22, 2014 at midnight. To access the archived conference call, please dial 416-849-0833, or 1-855-859-2056 and enter the reservation code 30346151. A live audio webcast of the conference call will be available at http://www.siriusxm.ca and 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.
Reconciliations
The following is a reconciliation of EBITDA and Adjusted EBITDA to Operating Income.
| (In $000's) | Q1 FY2014 | Q1 FY2013 | |
| (Unaudited) | (Unaudited) | ||
| Operating income | 8,837 | 8,629 | |
| Depreciation & Amortization | 9,908 | 8,434 | |
| EBITDA | 18,745 | 17,063 | |
| Stock based compensation | 862 | 794 | |
| Fair value adjustments* | 31 | 101 | |
| Adjusted EBITDA | 19,638 | 17,975 |
| * Fair value adjustment relates to reduction in revenue due to valuation of deferred revenue as per purchase price accounting |
Please see the Company's Management Discussion & Analysis filed January 14, 2014 for more details on the Company's Q1 FY2014 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 audited consolidated statement of operations and comprehensive income. Please see the Company's Management Discussion & Analysis filed January 14, 2014 for complete definition of non-GAAP measures.
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. 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 www.sedar.com.
About SiriusXM Canada
Sirius XM Canada Holdings Inc. (TSX: XSR) operates as SiriusXM Canada. SiriusXM Canada, with over 2.4 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 and MLB.
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 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.
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| CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) |
|||||||
| For the three months ended (Canadian dollars) |
November 30, 2013 |
November 30, 2012 |
|||||
| Revenue | 76,435,692 | 68,891,443 | |||||
| Operating expenses | |||||||
| Operating costs | 57,690,811 | 51,828,746 | |||||
| Depreciation and amortization | 9,907,716 | 8,434,002 | |||||
| Operating income | 8,837,165 | 8,628,695 | |||||
| Finance costs, net | |||||||
| Interest income | 179,425 | 166,351 | |||||
| Interest expense | (3,890,486) | (3,973,709) | |||||
| Foreign exchange loss | (52,858) | (148,664) | |||||
| Gain on revaluation of derivative | — | 51,378 | |||||
| Finance costs, net | (3,763,919) | (3,904,644) | |||||
| Net income before income tax | 5,073,246 | 4,724,051 | |||||
| Income tax expense | (1,578,839) | (1,466,087) | |||||
| Net income and comprehensive income | 3,494,407 | 3,257,964 | |||||
| Basic and diluted earnings per share | 0.03 | 0.03 | |||||
| |
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| CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) |
|||||
| Total | |||||
| For the three months ended | Share | Contributed | Accumulated | Shareholders' | |
| (Canadian dollars) | Capital | Surplus | deficit | Equity | |
| Balance, September 1, 2012 | 148,393,493 | 5,057,501 | (108,196,240) | 45,254,754 | |
| Net income for the period | — | — | 3,257,964 | 3,257,964 | |
| Stock-based compensation | — | 793,649 | — | 793,649 | |
| Dividends | — | — | (20,333,586) | (20,333,586) | |
| Stock options exercised | 311,162 | (139,785) | — | 171,377 | |
| Balance, November 30, 2012 | 148,704,655 | 5,711,365 | (125,271,862) | 29,144,158 | |
| Balance, September 1, 2013 | 151,794,596 | 6,161,440 | (149,712,623) | 8,243,413 | |
| Net income for the period | — | — | 3,494,407 | 3,494,407 | |
| Stock-based compensation | — | 862,430 | — | 862,430 | |
| Dividends | — | — | (13,046,999) | (13,046,999) | |
| Stock options exercised | 1,591,452 | (566,463) | — | 1,024,989 | |
| Balance, November 30, 2013 | 153,386,048 | 6,457,407 | (159,265,215) | 578,240 | |
| |
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| CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited) |
||||
| For the three months ended (Canadian dollars) |
November 30, 2013 |
November 30, 2012 |
||
| Cash provided by (used in) | ||||
| OPERATING ACTIVITIES | ||||
| Net income for the period | 3,494,407 | 3,257,964 | ||
| Add (deduct) items not involving cash | ||||
| Amortization of intangible assets | 8,650,080 | 7,790,009 | ||
| Depreciation of property and equipment | 1,257,636 | 643,993 | ||
| Income tax expense | 1,578,839 | 1,466,087 | ||
| Stock-based compensation | 862,430 | 793,649 | ||
| Accrued interest | 3,587,543 | 3,587,543 | ||
| Interest accretion | 246,190 | 233,675 | ||
| Revaluation of derivatives | — | (51,378) | ||
| Foreign exchange loss | 61,981 | 106,907 | ||
| Net change in non-cash working capital and deferred revenue related to operations |
(4,126,385) | (2,696,006) | ||
| Cash provided by operating activities | 15,612,721 | 15,132,443 | ||
| INVESTING ACTIVITIES | ||||
| Purchase of property and equipment | (561,968) | (30,602) | ||
| Purchase of intangible assets | (2,231,638) | (1,392,286) | ||
| Cash used in investing activities | (2,793,606) | (1,422,888) | ||
| FINANCING ACTIVITIES | ||||
| Proceeds from exercise of stock options | 1,024,989 | 171,377 | ||
| Cash provided by financing activities | 1,024,989 | 171,377 | ||
| Net increase in cash and cash equivalents during the period | 13,844,104 | 13,880,932 | ||
| Cash and cash equivalents, beginning of period | 44,078,584 | 51,034,749 | ||
| Cash and cash equivalents, end of period | 57,922,688 | 64,915,681 | ||
SOURCE: Sirius XM Canada Holdings Inc.
Morlan Reddock
Sirius XM Canada
416-513-7418
[email protected]
Aaron Kabucis
TMX Equicom
416-815-0700 ext 230
[email protected]
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