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Old 01-28-2004, 09:44 AM   #1
Trezdustrial
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Default 4Q and year end results

SIRIUS SATELLITE RADIO ANNOUNCES FOURTH QUARTER AND YEAR-END 2003
FINANCIAL AND OPERATING RESULTS

- Subscribers Increased More Than 8-Fold Over Year-End 2002 and 74%
Over Previous Quarter

- Retail Growth Accelerated with Strong Holiday Sales

- New Product, Programming and Distribution Initiatives Solidify
Company's Position as Premium Satellite Radio Provider

NEW YORK - January 28, 2004 - SIRIUS (NASDAQ: SIRI), known for
delivering the very best in commercial-free music and premium sports
programming to cars and homes across the country, today announced fourth quarter
and year-end 2003 financial and operating results.

As of December 31, 2003, SIRIUS had 261,061 subscribers. This
represents a net subscriber addition of 111,449 during the fourth quarter of
2003, a 74% increase from the company's total subscribers at the end of
the third quarter of 2003, and over eight times the number of ending
subscribers reported by the company at December 31, 2002.

During the fourth quarter of 2003, SIRIUS experienced significant gains
in the retail aftermarket channel, fueled by strong sales during the
holiday selling season. SIRIUS added more than 86,000 subscribers from
the retail aftermarket channel, 162% more than were activated in the
third quarter of the year. During the busy shopping season, national
consumer electronics retailers showcased SIRIUS as a featured product, and
SIRIUS was named a best-bet in gift guides from top consumer
publications, such as Good Housekeeping, Business Week, Rolling Stone, Newsweek and
New York Magazine.

"Consumers flocked to our extensive product line-up, including four
feature-laden transportable Plug-&-Play receivers - one of them packaged
in an easy to purchase 'Jam Pack'. The appeal of these new products,
combined with our premium, differentiated content, made SIRIUS a very
popular holiday gift item," said Joseph P. Clayton, President and CEO,
SIRIUS. "We had a great quarter, increasing our share of satellite radio
retail sales to approximately 32% at the end of November, according to
the NPD Group, up from approximately 11% at the end of 2002."

During the fourth quarter of 2003, SIRIUS added over 24,000 subscribers
through its automotive, boating and trucking partnerships. By the end
of 2003, DaimlerChrysler, Ford, BMW, Nissan, Infiniti and Audi offered
SIRIUS Satellite Radio in more than 50 different vehicle models. In
2004, the company's automotive partners are expected to offer SIRIUS in
nearly 80 vehicle models, with 50 of those offered as a factory option.

SIRIUS maintains a strong cash position, ending the year with $550
million in cash, cash equivalents, and marketable securities. During the
fourth quarter of 2003, SIRIUS raised $150 million through a common stock
offering. SIRIUS also reduced its debt during the fourth quarter
through the exchange of common stock for $65 million of the company's
outstanding convertible notes.

Recent Developments:

SIRIUS recently signed several important agreements in the programming,
product and distribution areas, which the company believes will enhance
its consumer offering and competitive position.

Yesterday, SIRIUS announced agreements with Penske Automotive Group,
Inc., United Auto Group, Inc., Penske Truck Leasing Co. L.P. and Penske
Corporation. Penske Automotive Group and United Auto Group together own
and operate approximately 144 auto dealerships in the United States.
Penske Truck Leasing, the largest truck renting and leasing company in
the United States, leases heavy trucks on a long-term basis to
individual and fleet operators and rents trucks on a short-term basis to
individuals. Penske Corporation and its affiliates are active participants in
motorsports, with racing teams that participate in NASCAR, IRL and
other events.

United Auto Group and Penske Automotive Group each have agreed to order
SIRIUS radios, where available, with all of the vehicles they purchase
from automakers, and to use best efforts to include a bundled
subscription to the company's service in the sale or lease of these vehicles.
Penske Truck Leasing has agreed to order SIRIUS radios, where available,
with all new trucks it purchases. Penske Truck Leasing will also
install SIRIUS radios in a select number of trucks it leases to consumers.
Each of these companies plans to launch an extensive joint marketing
effort with SIRIUS, including mailings to customers, prominent signage in
dealerships, use of the SIRIUS satellite radio service in their
dealerships and exposure in Penske racing efforts.

In December 2003, SIRIUS announced a long-term arrangement with the
National Football League. SIRIUS will offer its subscribers access to NFL
games starting with the 2004-2005 season. This arrangement, along with
SIRIUS' existing relationships with the NHL and the NBA, solidify
SIRIUS' position as the satellite radio sports leader.

At the 2004 Consumer Electronics Show earlier this month, SIRIUS
announced several new initiatives. Building on a multi-brand product
strategy, SIRIUS announced further additions to its already impressive line-up
of consumer electronics partners. In 2003, Audiovox, JVC, Brix and
Antex joined Kenwood, Clarion, Panasonic and Jensen as SIRIUS
manufacturers. In 2004, SIRIUS expects to add Eclipse, Blaupunkt, Sanyo and Alpine
and premium custom home installation partners Niles and Crestron. Other
new partners for 2004 are expected to include: U.S. Electronics,
Magnadyne, PS Engineering and Tivoli.

Also at CES, SIRIUS unveiled new data services, which are expected to
begin with the transmission of sports scores and stock quotes. Existing
SIRIUS radios are backwards-compatible with this new service, which
will be offered at no extra cost to subscribers.

At last year's CES, SIRIUS was the first satellite radio provider to
demonstrate proof-of-concept for video transmission. This year, SIRIUS
and Delphi demonstrated a product capable of receiving and displaying
video, and allowed CES attendees to sample this new service by
test-driving a Ford Explorer. SIRIUS' video offering is expected to start with 3
to 4 channels of children's programming in mid-2005.

SIRIUS has also announced a full suite of new traffic services, which
is expected to start in the third quarter of 2004 with a simple traffic
solution that is backwards-compatible with all existing SIRIUS radios.

In partnership with Dolby Labs, SIRIUS is now broadcasting in Dolby Pro
Logic II surround sound. Currently, this applies to any song recorded
in multi-channel sound, but will soon expand to include SIRIUS
Sessions, live performances which will now be recorded and broadcast in Dolby
Pro Logic II. SIRIUS will also begin to upgrade its music library by
including multi-channel Super Audio CD (SACD) and DVD-Audio selections.

Lastly, Soundgate(R) and SIRIUS have announced a translator that can be
connected to any satellite-radio-ready car stereo. Customers who own a
vehicle equipped with a competing satellite radio service will be able
to subscribe to SIRIUS' premium programming by simply adding a standard
SIRIUS tuner and a small translator module.

Conference Call Information:

SIRIUS will hold a conference call today at 10:00 AM EST to discuss
operating and financial results. The access numbers for the call are
973.582.2745 (toll) or 877.691.0878 (toll free). The call will also be
accessible via a live web-cast on www.sirius.com, and a replay will be
available on the company's website for 30 days.

FOURTH QUARTER 2003

For the fourth quarter of 2003, SIRIUS recognized total revenue of $5.0
million, compared to $685 thousand for the fourth quarter of 2002.
SIRIUS reported a loss from operations of $(125.1) million for the fourth
quarter of 2003, compared to a loss from operations of $(90.8) million
for the fourth quarter of 2002.

SIRIUS reported a net loss applicable to common stockholders of
$(147.8) million, or $(0.14) per share, for the fourth quarter of 2003,
compared with a net loss applicable to common stockholders of $(134.1)
million, or $(1.74) per share, for the fourth quarter of 2002.

SIRIUS' adjusted EBITDA loss for the fourth quarter of 2003 was $(92.3)
million, compared with $(67.5) million for the fourth quarter of 2002.

For the fourth quarter of 2003, average monthly revenue per subscriber,
or ARPU, was $8.59. Excluding the effects of mail-in rebate programs,
ARPU for the fourth quarter of 2003 was $10.80.

YEAR ENDED DECEMBER 31, 2003

For the year ended December 31, 2003, SIRIUS recognized total revenue
of $12.9 million, compared to $805 thousand for the year ended December
31, 2002. SIRIUS reported a loss from operations of $(437.5) million
for 2003, compared to a loss from operations of $(313.1) million for
2002.

SIRIUS reported a net loss applicable to common stockholders of
$(314.4) million, or $(0.38) per share, for the 2003 period, compared with a
net loss applicable to common stockholders of $(468.5) million, or
$(6.13) per share, for the 2002 period. Included in net loss applicable to
common stockholders for 2003 was a $256.5 million gain associated 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 2003 was $(330.7) million, compared
with $(238.2) million for 2002. SIRIUS' adjusted EBITDA loss for the
2003 period includes a $14.5 million non-cash charge associated with the
disposal of SIRIUS' previous subscriber management system.

For 2003, ARPU was $9.39. Excluding the effects of mail-in rebate
programs, ARPU for 2003 was $10.64.

(Selected financial information follows).


SIRIUS defines adjusted EBITDA loss as net loss before interest and
investment income, interest expense, net of amounts capitalized,
depreciation expense, non-cash stock compensation expense and debt
restructuring. This definition of adjusted EBITDA may not be comparable to
similarly titled measures of other companies. Adjusted EBITDA is not a measure
of financial performance under accounting principles generally accepted
in the United States. We have raised and invested large amounts of
capital to fund the completion of our system; as a result, our results of
operations include significant charges for depreciation. In addition,
we have recognized a gain associated with the restructuring of our
debt. Adjusted EBITDA, which excludes these items, provides a basis to
measure our operating performance, apart from the expenses associated with
our physical plant or capital structure. Adjusted EBITDA should not be
considered in isolation or as a substitute for operating loss, cash
flow from operating activities or other measures of performance defined by
accounting principles generally accepted in the United States. A
reconciliation of adjusted EBITDA loss is presented on the attachment.

SIRIUS defines average monthly revenue per subscriber, or ARPU, as the
total earned subscription revenue and activation revenue during the
period, over the daily weighted average number of subscribers for the
period. ARPU is not a measure of financial performance under accounting
principles generally accepted in the United States and should not be
considered in isolation or as a substitute for measures of performance
prepared in accordance with accounting principles generally accepted in the
United States.

SIRIUS defines subscriber acquisition costs, or SAC, as costs of
incentives for the purchase, installation, and activation of SIRIUS radios,
as well as subsidies paid to radio and chipset manufacturers, automakers
and retailers and negative margin on equipment. SAC is not a measure of
financial performance under accounting principles generally accepted in
the United States and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
accounting principles generally accepted in the United States.

*Please see the attached document for the full release including
financial tables.
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Old 01-28-2004, 10:12 AM   #2
Trezdustrial
Rocket Scientist
 
Join Date: Aug 07, 2003
Posts: 526
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Default

Most important paragraph out of this thing !?

Quote:
During the fourth quarter of 2003, SIRIUS added over 24,000 subscribers
through its automotive, boating and trucking partnerships. By the end
of 2003, DaimlerChrysler, Ford, BMW, Nissan, Infiniti and Audi offered
SIRIUS Satellite Radio in more than 50 different vehicle models. In
2004, the company's automotive partners are expected to offer SIRIUS in
nearly 80 vehicle models, with 50 of those offered as a factory option.
I like this one to:

Quote:
SIRIUS' video offering is expected to start with 3
to 4 channels of children's programming in mid-2005.
None of this seems to be helping though, as the stock is down .07 currently at $2.90.
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Old 01-28-2004, 10:58 AM   #3
Joshua Clinard
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Default

Did we learn anything new, other than the addition of children's programming? I am excited about what it could be though.
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Old 01-28-2004, 04:14 PM   #4
Satradioman
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Default

I see 2004 as a VERY important year for both XM and Sirius. Both companies better be very close to their break even point by the end of this year or both will have to go begging for money again. And since this ain't the 90's anymore they may have problems finding takers.
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