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Old 10-29-2003, 10:11 AM   #1
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Default SIRIUS Announces Third Quarter 2003 Financial Results

Subscribers totaled 149,612 at quarter end; an increase of 42% from total subscribers at last quarter end

SIRIUS, known for delivering the very best in commercial-free music and premium audio entertainment to cars and homes across the country, today announced third quarter 2003 financial and operating results.

As of September 30, 2003, SIRIUS reported 149,612 subscribers. This represents a net subscriber addition of 44,426 for the third quarter of 2003, a 42% increase from the company's total subscribers at the end of the second quarter of 2003 and over twelve times the number of ending subscribers reported for the third quarter of 2002.

"With three brands of transportable Plug-&-Play products now available and more on the way, we believe SIRIUS is well positioned to take advantage of the upcoming holiday selling season," said Joseph P. Clayton, President and CEO of SIRIUS. "During a seasonally slow third quarter at retail, SIRIUS showed strong signs of consumer acceptance this summer. Based on data from NPD Group, our retail unit share increased by 48% over the previous quarter, which reflects both better products, more brands, and increased consumer awareness."

SIRIUS maintains a strong cash position, ending the quarter with $479 million in cash, cash equivalents, and marketable securities.

"With a solid cash position and very little debt, our balance sheet remains the strongest in satellite radio. We have the working capital necessary to continue to execute our business plan and grow our subscriber base," said David Frear, Chief Financial Officer of SIRIUS.

During the third quarter, SIRIUS significantly enhanced its product portfolio and premium programming offerings. In addition to completing the rollout of transportable Plug-&-Play products from Kenwood and Audiovox, SIRIUS also partnered with The Brix Group to introduce an attractive, rugged portable unit for the trucking market, called the Streamer.

The company expects to further expand its product assortment this year with a dedicated in-home receiver and a portable boombox.

Adding to its strong sports line-up, SIRIUS recently announced a marketing and sponsorship agreement with the National Hockey League. SIRIUS will carry up to 40 NHL games per week. In September, Ford and SIRIUS announced that SIRIUS is now available as an option on 10 Ford vehicles. Ford, Mercedes-Benz, DaimlerChrysler, BMW, Nissan, Infiniti, and Audi are all now offering Sirius as a factory or dealer option on select 2004 models.

THIRD QUARTER 2003

For the third quarter of 2003, SIRIUS recognized total revenue of $4.3 million, compared to $17 thousand for the third quarter of 2002 and $2.1 million for the second quarter of 2003. SIRIUS reported a loss from operations of $(103.5) million for the third quarter of 2003, compared to a loss from operations of $(81.7) million for the third quarter of 2002.

SIRIUS reported a net loss applicable to common stockholders of $(106.7) million, or $(0.11) per share, for the third quarter of 2003, compared with a net loss applicable to common stockholders of $(119.7) million, or $(1.56) per share, for the third quarter of 2002.

SIRIUS' adjusted EBITDA loss for the third quarter of 2003 was $(79.8) million, compared with $(58.7) million for the third quarter of 2002. SIRIUS' adjusted EBITDA loss for the third quarter of 2002 excludes $1.9 million of costs associated with the company's restructuring.

For the third quarter of 2003, average monthly revenue per subscriber, or ARPU, was $11.20. Excluding the effects of mail-in rebate programs, ARPU for the third quarter of 2003 was $10.31.

YEAR TO DATE 2003

For the year to date period ended September 30, 2003, SIRIUS recognized total revenue of $7.9 million, compared to $120 thousand for the year to date period ended September 30, 2002. SIRIUS reported a loss from operations of $(312.4) million for the 2003 period, compared to a loss from operations of $(222.3) million for the 2002 period.

SIRIUS reported a net loss applicable to common stockholders of $(166.6) million, or $(0.22) per share, for the 2003 period, compared with a net loss applicable to common stockholders of $(334.4) million, or $(4.41) per share, for the 2002 period. Included in net loss applicable to common stockholders for the 2003 period was a $256.5 million gain in connection with the completion of the company's restructuring in March 2003, and a deemed dividend of $79.5 million associated with the elimination of its convertible preferred stock in March 2003.

SIRIUS' adjusted EBITDA loss for the 2003 period was $(241.2) million, compared with $(162.7) million for the 2002 period. SIRIUS' adjusted EBITDA loss for the 2003 period excludes a $256.5 million gain in connection with the completion of the company's restructuring in March 2003, and includes a $14.5 million non-cash charge associated with the disposal of SIRIUS' previous subscriber management system. SIRIUS' adjusted EBITDA loss for the 2002 period excludes $1.9 million of costs associated with the company's restructuring.

For the 2003 period, ARPU was $10.01. Excluding the effects of mail-in rebate programs, ARPU for the 2003 period was $10.56.

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Old 10-29-2003, 10:21 AM   #2
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Old 10-29-2003, 10:23 AM   #3
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Old 10-29-2003, 12:03 PM   #4
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I'm disappinted with the Subscriber additions, no two ways about it. I sold 1/2 of my stock, expecting to buy it back cheaper.

Some bright spots:

1) Dodge Durango factory install
2) ARPU went up significantly this quarter to 11.20
3) 47 Models with factory installed options, some standard. 60 total
4) 340 BMW dealers playing Sirius in the showrooms
5) They expect 50% of the prewired models that can take either Service
6) They have 60% of the HU install market!
7) Streamer in 1000 trucking stores by mid Nov.
8) Currently have 24% brand awareness, will increase with Pam
9) Hertz will lower rental price to $3/day in Dec.
10) Boombox will be for the NEW AudioVox PNP2, Lmtd. QTY for Christmas
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Old 10-29-2003, 12:10 PM   #5
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Those are some good highlights.

The sub disappointment is a direct result of hardware selection and shortages and lackluster marketing initiatives.

The 47 factory install models are promising as it elimates headaches of an install after the sale, but they must devise a way to get dealers to order cars with Sirius included.

Whether they use consumer demand or spiffs to the dealer, this is key to a successful OEM program.

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Old 10-29-2003, 12:33 PM   #6
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Quote:
Originally Posted by manco_lives
I'm disappinted with the Subscriber additions, no two ways about it. I sold 1/2 of my stock, expecting to buy it back cheaper.

Some bright spots:

1) Dodge Durango factory install
2) ARPU went up significantly this quarter to 11.20
3) 47 Models with factory installed options, some standard. 60 total
4) 340 BMW dealers playing Sirius in the showrooms
5) They expect 50% of the prewired models that can take either Service
6) They have 60% of the HU install market!
7) Streamer in 1000 trucking stores by mid Nov.
8) Currently have 24% brand awareness, will increase with Pam
9) Hertz will lower rental price to $3/day in Dec.
10) Boombox will be for the NEW AudioVox PNP2, Lmtd. QTY for Christmas
That's all nice and good and all, but they have a saying where I am from which may apply here...

"A Day Late and a Dollar Short"

I love my Sirius Radio and all... but in reality it does seem like the half planned hardware, has hurt, as well as taking so long to come out. In my opinion XM has become the "Jello" or the "Band Aid" of the satellite radio world.

No offense to Siri, but I am just calling it like it seems right now.

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Old 10-29-2003, 01:33 PM   #7
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Yeah, but did you read, "SIRIUS, known for delivering the very best in commercial-free music and premium audio entertainment to cars and homes across the country,"
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Old 10-29-2003, 02:29 PM   #8
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That quote is just a Sirius company quote. The report is generated by Sirius and not an independant party, and therefore no one is comparing Sirius to XM with that quote. I am feverishly trying to get people to join Sirius (stockholder) and to me the newest subscriber total is a disappointment.

Give people some decent hardware (read.....SkyFi and Roady for Sirius) and let the streams differentiate the services and people will come to Sirius.

Just my $0.02
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Old 10-29-2003, 02:36 PM   #9
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Welcome coulumbic to Sirius Backstage

I think we are making major inroads in the retails stores and have some decent hardware, but where we are getting hurt the worst is in the OEM market. Sirius reported today that they have won 60% of the Head Unit tuner installs this past quarter. They also expect to get to 50% in retail. So get us some OEM installs, and the numbers climb like XM's.
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Old 10-29-2003, 09:04 PM   #10
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Default Wait til Christmas

Sirius has a lot of really cool stuff coming. Christmas will be the telling tale. People need to be pumping up the content, everything that Sirius is missing in hardware (for now), they quickly overcome with content.
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Old 10-29-2003, 09:19 PM   #11
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Default Re: Wait til Christmas

Quote:
Originally Posted by engtech_99
People need to be pumping up the content, everything that Sirius is missing in hardware (for now), they quickly overcome with content.
You don't have to convince us. Content is king.

It's just that very cool hardware would make our job so much easier.

Jeff
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Old 10-30-2003, 10:39 PM   #12
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I'm anxious to see what happens with the holidays. As they said in the conference call "This is our first true Christmas season."

I just hope they get it together in time.
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Old 10-30-2003, 11:36 PM   #13
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Lets just hope the shelves are full of equipment for them to have a good Christmas season. I wish Audiovox had made this PNP2 available much more soon, to get enough supply out there. Audiovox concerns me in the way they handle their ramp up. I hope they are working 24/7 to make it happen. We really need the PNP2 and Boombox out there ASAP.
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Old 11-20-2003, 11:39 PM   #14
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Default Another Share Offering

With the latest share offering from Sirius, what conclusion does one arrive at?? Did they not have enough money to reach cash flow breakeven like they originally said they would, or is this money strictly going to be used for something extremely useful, and help get us to the cash flow breakeven point sooner?? I hope this money is used wisely in order to ramp up subscriber numbers quickly. Whether it be for hardware, marketing, incentives, or whatever, they need to do something to ramp up sub numbers. I need to see 220K for 4Q 2003 and pushing close or over 300K for Q1 2004. When will more factory installs become more widespread?? We need to hear more news from Ford and Chrysler SOON!!!! What will the price of SIRI be on the close of business on 12/31/03?? Any guesses?? Here is my guess for the record...$2.55
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Old 11-20-2003, 11:59 PM   #15
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Default Trump Card??

For the record, let me state a few things first. I hold shares in both companies, XM and Sirius, with an extremely larger stake in Sirius. Also, I am a Sirius subscriber, going on 6 months now, and I love the service. It would be completely fair to say that I am a die hard Sirius fanatic. There are numerous things that I love about Sirius, and satellite radio in general. With all of those things to choose from, my favorite thing would be the 100% commercial free radio. Sirius offers this, and XM does not. However, here is my question that I want to bring up for discussion to everyone? Does XM hold the trump card in this case? It is well understood by everyone, and I think that there would be no disputing this fact, that XM makes more money on subs than they do in advertising revenue. If XM were to slowly decrease the number of channels they had that carried commercials, and then eventually went to commercial free, without raising their price, or raising it to the point that is still cheaper than Sirius, would it eat into Sirius?? In my opinion, the one thing that separates XM and Sirius is the commercial free music. Is this something Sirius needs to be worried about??? One could make the argument that the programming will have a lot to do with who people choose, and I will not dispute that fact. But, if this were to happen, Sirius would lose one VERY IMPORTANT competitive advantage that they currently have....Any comments on this???
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