NEW YORK, Sept. 9 /PRNewswire-FirstCall/ -- SIRIUS XM Radio (Nasdaq: SIRI)
today provided an update on the company's guidance, a detailed breakdown of
expected 2009 synergies, and an outline of the company's new "Best of Both"
programming options.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080819/NYTU044LOGO )
The guidance and information was outlined today at the 2008 Merrill Lynch
Media Fall Preview Conference in Marina del Rey, CA. An audiocast of today's
presentation by SIRIUS XM at the conference is available at the investor
relations section of the company's website, www.sirius.com. The audiocast will
continue to be available until 5:00 pm, ET, on Tuesday, September 16, 2008.
The company provided the following new guidance for 2008 and 2009:
Subscribers
-- The company expects to end 2008 with approximately 19.5 million
subscribers and to end 2009 with approximately 21.5 million subscribers.
Revenue
-- SIRIUS XM expects to post pro forma revenue of approximately $2.4
billion in 2008 and to post revenue of approximately $2.7 billion in 2009.
Adjusted EBITDA
-- SIRIUS XM expects a pro forma adjusted EBITDA loss of approximately
$350 million in 2008 and reiterated its previously stated financial guidance
of approximately $300 million in positive adjusted EBITDA for 2009. Adjusted
EBITDA is net income / (loss) before interest and investment income, interest
expense (net of amounts capitalized), depreciation expense, and non-cash stock
compensation expense.
Synergies
-- SIRIUS XM announced it is increasing its estimate of net synergies to
$425 million in 2009.
-- The Company also provided a line item breakdown of how the expected
2009 synergies will be achieved, which will be available as an exhibit to the
Current Report on Form 8-K that the company is filing today.
"We have made great strides over the last six weeks and continue to make
progress integrating the company and delivering on our promises to customers
and stockholders," said Mel Karmazin, CEO of SIRIUS XM Radio. "We are finding
significant cost savings on every line item of the P&L and are beginning to
realize these synergies already. SIRIUS XM also continues to be one of the
strongest growth stories in media, with pro forma revenue growth of
approximately 17% in 2008."
Today, the company also announced the content line-up for SIRIUS XM's new
"Best of Both" programming options. As part of "Best of Both" programming,
most current XM customers will continue to receive their existing XM service,
and be able to obtain select SIRIUS programming. Likewise, most current
SIRIUS customers will continue to receive their existing SIRIUS service and be
able to obtain select XM programming. In addition to their existing service,
SIRIUS and XM subscribers will be able to purchase the following channels:
* Sports offerings will also include channels for play-by-play of NBA,
NHL, NFL, and College Sports games.
Included on the "Best of" XM on SIRIUS will be such shows as Basketball
and Beyond, hosted by Duke and Olympic basketball coach Mike Krzyzewski;
Andretti Green, with driver Danica Patrick; 60/20, a sports magazine show by
Luke Russert and James Carville; Indy Racing League car races; and games from
the top college conferences, including the PAC 10, SEC, Big 10, Big 12, Big
East and ACC.
Karmazin stated, "We have been working closely with our content providers
since the day the merger closed and have made significant progress in those
discussions. The resulting "Best of Both" options we are outlining today
represent another step towards fulfilling our promise of more choices and
lower prices for our subscribers. We are very excited to begin offering
existing and prospective listeners access to even more compelling programming
and new packages."
"Best of Both" programming will be available to satellite radio consumers
beginning October 6, 2008 on most existing satellite radios at a monthly cost
of $16.99. Also, the company's full slate of new packages will be available to
consumers on Oct. 6, including the opportunity to choose programming on an a
la carte basis for the first time ever in subscription media.
About SIRIUS XM Radio
SIRIUS XM Radio is America's satellite radio company delivering the "The
Best Radio on Radio" to more than 18 million subscribers, including 100%
commercial free music, and premier sports, news, talk, entertainment, traffic
and weather.
SIRIUS XM Radio has exclusive content relationships with an array of
personalities and artists, including Howard Stern, Oprah, Martha Stewart,
Jimmy Buffett, Elvis, Jamie Foxx, Barbara Walters, Frank Sinatra, Opie &
Anthony, The Grateful Dead, Willie Nelson, Bob Dylan, Dale Earnhardt Jr., Tom
Petty, and Bob Edwards. SIRIUS XM Radio is the leader in sports programming as
the Official Satellite Radio Partner of the NFL, Major League Baseball,
NASCAR, NHL, and PGA Tour, and broadcasts major college sports.
SIRIUS XM Radio has exclusive arrangements with every major automaker.
SIRIUS XM Radio products are available at shop.sirius.com and
shop.xmradio.com, and at retail locations nationwide, including Best Buy,
Circuit City, RadioShack, Target, Sam's Club, and Wal-Mart.
SIRIUS XM Radio also offers SIRIUS Backseat TV, the first ever live in-
vehicle rear seat entertainment featuring Nickelodeon, Disney Channel and
Cartoon Network; XM NavTraffic service for GPS navigation systems delivers
real-time traffic information, including accidents and road construction, for
more than 80 North American markets.
The guidance contained herein are based upon a number of assumptions and
estimates that, while considered reasonable by us when taken as a whole, are
inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond our control. In
addition, the guidance is based upon specific assumptions with respect to
future business conditions, some or all of which will change. The guidance,
like any forecast, is necessarily speculative in nature and it can be expected
that the assumptions upon which the guidance is based will not prove to be
valid or will vary from actual results. Actual results will vary from the
guidance and the variations may be material. Consequently, the guidance
should not be regarded as a representation by us or any other person that the
subscribers, synergies, revenue, and adjusted EBITDA will actually be
achieved. You are cautioned not to place undue reliance on this information.
This communication contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements include, but are not limited to, statements about the benefits of
the business combination transaction involving SIRIUS and XM, including
potential synergies and cost savings and the timing thereof, future financial
and operating results, the combined company's plans, objectives, expectations
and intentions with respect to future operations, products and services; and
other statements identified by words such as "anticipate," "believe," "plan,"
"estimate," "expect," "intend," "will," "should," "may," or words of similar
meaning. Such forward-looking statements are based upon the current beliefs
and expectations of SIRIUS' and XM's management and are inherently subject to
significant business, economic and competitive uncertainties and
contingencies, many of which are difficult to predict and generally beyond the
control of SIRIUS and XM. Actual results may differ materially from the
results anticipated in these forward-looking statements.
The following factors, among others, could cause actual results to differ
materially from the anticipated results or other expectations expressed in the
forward-looking statement: general business and economic conditions; the
performance of financial markets and interest rates; the ability to obtain
governmental approvals of the transaction on a timely basis; the failure to
realize synergies and cost-savings from the transaction or delay in
realization thereof; the businesses of SIRIUS and XM may not be combined
successfully, or such combination may take longer, be more difficult, time-
consuming or costly to accomplish than expected; and operating costs and
business disruption following the merger, including adverse effects on
employee retention and on our business relationships with third parties,
including manufacturers of radios, retailers, automakers and programming
providers. Additional factors that could cause SIRIUS' and XM's results to
differ materially from those described in the forward-looking statements can
be found in SIRIUS' and XM's Annual Reports on Form 10-K for the year ended
December 31, 2007 and their respective Quarterly Reports on Form 10-Q for the
quarter ended June 30, 2008, which are filed with the Securities and Exchange
Commission (the "SEC") and available at the SEC's Internet site
(http://www.sec.gov). The information set forth herein speaks only as of the
date hereof, and SIRIUS and XM disclaim any intention or obligation to update
any forward looking statements as a result of developments occurring after the
date of this communication.
