SiriusXM Reports Third Quarter 2016 Results

Oct 27, 2016

- Revenue Climbs 9% in the Third Quarter to $1.3 Billion, a Quarterly Record
- Third Quarter Net Income Rises 16% to $194 Million and Adjusted EBITDA Grows 10% to $492 Million
- Increases 2016 Revenue and Adjusted EBITDA Guidance
- Initiates Regular Quarterly Dividend of $0.01 per Share
- Share Buyback Authorization Increases by $2 Billion

NEW YORK, Oct. 27, 2016 /PRNewswire/ -- SiriusXM today announced third quarter 2016 operating and financial results, including record quarterly revenue of $1.3 billion, up 9% from the third quarter of 2015.

SIRIUS XM logo

Net income totaled $194 million in the third quarter of 2016, up 16% from $167 million in the third quarter of 2015. Net income per diluted common share was $0.04 in the third quarter of 2016 compared to $0.03 in the third quarter of 2015. Adjusted EBITDA grew 10% in the third quarter of 2016 to $492 million, while operating cash flow and free cash flow totaled $422 million and $357 million, respectively.

SiriusXM also announced today that its Board of Directors declared its first quarterly dividend in the amount of $0.01 per share of common stock payable on November 30, 2016 to stockholders of record as of the close of business on November 9, 2016. The company also announced that the Board of Directors intends to institute a quarterly dividend on its common stock in an aggregate annual amount of $0.04 per share.

The Board also approved an additional $2 billion of share repurchases, bringing SiriusXM's total repurchase authorization to $10 billion. SiriusXM has already repurchased an aggregate of $7.6 billion of common stock under its stock repurchase program.

"SiriusXM's performance in the third quarter was exemplary. We grew self-pay subscribers by 385,000 and turned in record quarterly high levels of revenue and adjusted EBITDA. Additionally, we attained our highest-ever ARPU and adjusted EBITDA margin and lowest-ever SAC per installation and customer service cost per subscriber. In short, our business is operating more efficiently than ever before, and we are pleased to increase our revenue and adjusted EBITDA guidance for the second time this year," said Jim Meyer, Chief Executive Officer, SiriusXM.

"We remain dedicated to bringing the best audio entertainment in an easy to use bundle of programming to a nation of listeners. In recent months, we've strengthened areas where we are leaders, such as country music, added new talent in talk programming, and held special, one-of-a kind live music events for subscribers and listeners nationwide, all content you can only find at SiriusXM," added Meyer.

THIRD QUARTER 2016 HIGHLIGHTS

  • SiriusXM Subscribers Approach 31 Million. The company added 345,000 net new subscribers during the most recent three month period to end the third quarter of 2016 with approximately 31 million subscribers. Self-pay net additions were 385,000 during the third quarter, resulting in self-pay subscribers of 25.5 million at September 30, 2016.
  • Strong Revenue Growth and Record ARPU. Revenue climbed 9% to a quarterly record of $1.3 billion. The growth was driven by a 7% increase in subscribers and a 3% increase in average revenue per user (ARPU) to $13.04.
  • Record Adjusted EBITDA. Adjusted EBITDA in the third quarter of 2016 was $492 million, a record quarterly high, and up 10% from $447 million in the third quarter of 2015. Adjusted EBITDA margin was a record high 38.4% in the third quarter of 2016, up from 38.2% in the third quarter of 2015.

"Since the start of the third quarter, we spent roughly $300 million to repurchase 72 million shares of our common stock. SiriusXM's average share count declined by 8% in the third quarter 2016 from a year earlier as a result of our share repurchases. We are also pleased to announce a regular dividend as an element of our capital return program, beginning at $0.01 per share per quarter. Our debt to adjusted EBITDA remained just 3.4 times, and we ended the third quarter 2016 with a cash balance of $572 million in anticipation of the October 1 redemption of our 5.875% Senior Notes due 2020. We expect to continue strong capital returns to stockholders while making strategic investments in technology, content, and new satellite infrastructure," noted David Frear, Chief Financial Officer, SiriusXM.

INCREASED 2016 GUIDANCE

The company now expects full-year 2016 revenues to be approximately $5 billion and adjusted EBITDA to reach approximately $1.85 billion. SiriusXM's 2016 guidance for continued growth in total subscribers, self-pay subscribers, and free cash flow remains unchanged. The company's full-year 2016 guidance is as follows:

  • Net self-pay subscriber additions of approximately 1.6 million,
  • Total net subscriber additions of approximately 1.7 million,
  • Revenue of approximately $5 billion,
  • Adjusted EBITDA of approximately $1.85 billion, and
  • Free cash flow approaching $1.5 billion.

CAPITAL RETURN PROGRAM

Shares of common stock may be purchased from time to time on the open market, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act of 1934, as amended, in privately negotiated transactions, including in accelerated stock repurchase transactions and transactions with Liberty Media and its affiliates, or otherwise. The company expects to fund the additional repurchases through a combination of cash on hand, cash generated by operations and future borrowings. The size and timing of these purchases will be based on a number of factors, including price and business and market conditions.

Our dividend policy may change at any time without notice to our stockholders.  The declaration and payment of dividends is at the discretion of our Board of Directors in accordance with applicable law after taking into account various factors, including our financial condition, operating results, current and anticipated cash needs, limitations imposed by our indebtedness, legal requirements and other factors that our Board of Directors deems relevant.

THIRD QUARTER 2016 RESULTS

SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)






For the Three Months Ended
September 30,


For the Nine Months Ended
September 30,

(in thousands, except per share data)

2016


2015


2016


2015

Revenue:








Subscriber revenue

$

1,069,746



$

974,471



$

3,112,712



$

2,826,018


Advertising revenue

34,268



33,131



99,330



88,843


Equipment revenue

31,306



25,875



86,285



79,979


Other revenue

142,326



136,235



415,895



379,072


Total revenue

1,277,646



1,169,712



3,714,222



3,373,912


Operating expenses:








Cost of services:








Revenue share and royalties

272,823



238,620



788,952



783,115


Programming and content

89,015



75,707



257,760



216,223


Customer service and billing

94,923



94,492



285,502



278,521


Satellite and transmission

22,224



22,743



80,609



65,761


Cost of equipment

9,674



9,246



29,181



29,021


Subscriber acquisition costs

120,111



133,009



381,516



391,773


Sales and marketing

99,194



90,541



279,278



255,778


Engineering, design and development

19,254



16,132



57,588



47,180


General and administrative

90,369



67,234



249,052



219,194


Depreciation and amortization

67,880



70,404



202,215



202,527


Total operating expenses

885,467



818,128



2,611,653



2,489,093


Income from operations

392,179



351,584



1,102,569



884,819


Other income (expense):








Interest expense

(89,092)



(76,624)



(250,888)



(221,912)


Other income

2,370



4,133



15,733



9,077


Total other expense

(86,722)



(72,491)



(235,155)



(212,835)


Income before income taxes

305,457



279,093



867,414



671,984


Income tax expense

(111,556)



(112,543)



(326,108)



(296,893)


Net income

$

193,901



$

166,550



$

541,306



$

375,091


Foreign currency translation adjustment, net of tax

(14)



(91)



420



(100)


Total comprehensive income

$

193,887



$

166,459



$

541,726



$

374,991


Net income per common share:








Basic

$

0.04



$

0.03



$

0.11



$

0.07


Diluted

$

0.04



$

0.03



$

0.11



$

0.07


Weighted average common shares outstanding:








Basic

4,870,281



5,297,797



4,957,820



5,436,378


Diluted

4,919,829



5,346,438



5,005,133



5,487,116


 

 

SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS





(in thousands, except per share data)

September 30, 2016


December 31, 2015

ASSETS

(unaudited)



Current assets:




Cash and cash equivalents

$

572,382



$

111,838


Receivables, net

233,419



234,782


Inventory, net

28,030



22,295


Related party current assets

5,249



5,941


Prepaid expenses and other current assets

202,289



187,033


Total current assets

1,041,369



561,889


Property and equipment, net

1,381,114



1,415,401


Intangible assets, net

2,556,568



2,593,346


Goodwill

2,205,107



2,205,107


Related party long-term assets

6,163




Deferred tax assets

1,101,014



1,115,731


Other long-term assets

131,492



155,188


Total assets

$

8,422,827



$

8,046,662


LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY




Current liabilities:




Accounts payable and accrued expenses

$

620,599



$

625,313


Accrued interest

108,370



91,655


Current portion of deferred revenue

1,811,283



1,771,915


Current maturities of long-term debt

358,701



4,764


Related party current liabilities

3,015



2,840


Total current liabilities

2,901,968



2,496,487


Deferred revenue

170,662



157,609


Long-term debt

5,743,389



5,443,614


Related party long-term liabilities

8,665



10,795


Deferred tax liabilities

6,681



6,681


Other long-term liabilities

97,976



97,967


Total liabilities

8,929,341



8,213,153


Stockholders' (deficit) equity:




Common stock, par value $0.001; 9,000,000 shares authorized; 4,846,154 and
    5,153,451 shares issued; 4,843,154 and 5,147,647 outstanding at September 30,
    2016 and December 31, 2015, respectively

4,846



5,153


Accumulated other comprehensive loss, net of tax

(82)



(502)


Additional paid-in capital

3,597,256



4,783,795


Treasury stock, at cost; 3,000 and 5,804 shares of common stock at September 30, 2016
    and December 31, 2015, respectively

(12,526)



(23,727)


Accumulated deficit

(4,096,008)



(4,931,210)


Total stockholders' (deficit) equity

(506,514)



(166,491)


Total liabilities and stockholders' (deficit) equity

$

8,422,827



$

8,046,662


 

 

SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)




For the Nine Months Ended September 30,

(in thousands)

2016


2015

Cash flows from operating activities:




Net income

$

541,306



$

375,091


Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

202,215



202,527


Non-cash interest expense, net of amortization of premium

6,571



5,851


Provision for doubtful accounts

39,629



34,031


Amortization of deferred income related to equity method investment

(2,082)



(2,082)


Gain on unconsolidated entity investments, net

(9,725)




Dividend received from unconsolidated entity investment

7,160



11,260


Loss on disposal of assets

12,912




Share-based payment expense

77,890



62,334


Deferred income taxes

308,613



285,478


Other non-cash purchase price adjustments



(1,394)


Changes in operating assets and liabilities:




Receivables

(38,266)



(50,651)


Inventory

(5,735)



(7,346)


Related party, net

(2,373)



(14,020)


Prepaid expenses and other current assets

(15,985)



(70,758)


Other long-term assets

26,668



(51,842)


Accounts payable and accrued expenses

(1,841)



26,584


Accrued interest

16,715



14,923


Deferred revenue

52,421



81,626


Other long-term liabilities

11



(658)


Net cash provided by operating activities

1,216,104



900,954


Cash flows from investing activities:




Additions to property and equipment

(132,246)



(90,943)


Purchases of restricted and other investments

(4,168)



(3,966)


Net cash used in investing activities

(136,414)



(94,909)


Cash flows from financing activities:




Proceeds from exercise of stock options

348



259


Taxes paid in lieu of shares issued for stock-based compensation

(32,603)



(39,622)


Proceeds from long-term borrowings and revolving credit facility, net of costs

1,387,257



1,579,323


Repayment of long-term borrowings and revolving credit facility

(748,864)



(693,456)


Common stock repurchased and retired

(1,225,284)



(1,647,728)


Net cash used in financing activities

(619,146)



(801,224)


Net increase in cash and cash equivalents

460,544



4,821


Cash and cash equivalents at beginning of period

111,838



147,724


Cash and cash equivalents at end of period

$

572,382



$

152,545


Key Financial and Operating Performance Metrics

Subscribers and subscription related revenues and expenses associated with our connected vehicle services are not included in our subscriber count or subscriber-based operating metrics.

Set forth below are our subscriber balances as of September 30, 2016 compared to September 30, 2015:


As of September 30,


2016 vs 2015 Change

(in thousands)

2016


2015


Amount


%

Self-pay subscribers

25,528



23,816



1,712



7

%

Paid promotional subscribers

5,463



5,143



320



6

%

Ending subscribers (a)

30,991



28,960



2,031



7

%



(a) 

Amounts may not sum as a result of rounding.

The following table contains our Non-GAAP financial and operating performance measures which are based on our adjusted results of operations for the three and nine months ended September 30, 2016 and 2015: 






2016 vs 2015 Change


For the Three Months
Ended September 30,


For the Nine Months
Ended September 30,


Three Months


Nine Months

(in thousands, except per subscriber and per installation amounts)

2016


2015


2016


2015


Amount


%


Amount


%

Self-pay subscribers

385



381



1,240



1,293



4



1

%


(53)



(4)

%

Paid promotional
subscribers

(39)



145



157



355



(184)



(127)

%


(198)



(56)

%

Net additions (a)

345



525



1,397



1,649



(180)



(34)

%


(252)



(15)

%

Daily weighted average
number of subscribers

30,776



28,649



30,290



28,033



2,127



7

%


2,257



8

%

Average self-pay monthly
churn

1.9

%


1.9

%


1.8

%


1.8

%


0

%


0

%


0

%


0

%

New vehicle consumer
conversion rate

40

%


41

%


39

%


41

%


(1)

%


(2)

%


(2)

%


(5)

%

















ARPU

$

13.04



$

12.67



$

12.83



$

12.45



$

0.37



3

%


$

0.38



3

%

SAC, per installation

$

28



$

34



$

31



$

33



$

(6)



(18)

%


$

(2)



(6)

%

Customer service and billing
expenses, per average
subscriber

$

0.97



$

1.00



$

0.98



$

1.00



$

(0.03)



(3)

%


$

(0.02)



(2)

%

Adjusted EBITDA

$

491,892



$

447,194



$

1,401,024



$

1,261,382



$

44,698



10

%


$

139,642



11

%

Free cash flow

$

356,527



$

368,899



$

1,079,690



$

1,016,045



$

(12,372)



(3)

%


$

63,645



6

%

Diluted weighted average
common shares outstanding
(GAAP)

4,919,829



5,346,438



5,005,133



5,487,116



(426,609)



(8)

%


(481,983)



(9)

%



(a)

Amounts may not sum as a result of rounding.

Glossary

Adjusted EBITDA - EBITDA is defined as net income before interest expense, income tax expense and depreciation and amortization. We adjust EBITDA to exclude the impact of other income as well as certain other charges discussed below. Adjusted EBITDA is one of the primary Non-GAAP financial measures we use to (i) evaluate the performance of our on-going core operating results period over period, (ii) base our internal budgets and (iii) compensate management. Adjusted EBITDA is a Non-GAAP financial measure that excludes (if applicable):  (i) certain adjustments as a result of the purchase price accounting for the merger of Sirius and XM, (ii) share-based payment expense and (iii) other significant operating expense (income) that do not relate to the on-going performance of our business.  We believe adjusted EBITDA is a useful measure of the underlying trend of our operating performance, which provides useful information about our business apart from the costs associated with our capital structure and purchase price accounting. We believe investors find this Non-GAAP financial measure useful when analyzing our results and comparing our operating performance to the performance of other communications, entertainment and media companies. We believe investors use adjusted EBITDA to estimate our current enterprise value and to make investment decisions. Because of large capital investments in our satellite radio system our results of operations reflect significant charges for depreciation expense. We believe the exclusion of share-based payment expense is useful as it is not directly related to the operational conditions of our business.  We also believe the exclusion of settlements related to the historical use of pre-1972 sound recordings and loss on disposal of assets is useful as it does not represent an expense incurred as part of our normal operations for the period.

Adjusted EBITDA has certain limitations in that it does not take into account the impact to our statements of comprehensive income of certain expenses, including share-based payment expense and certain purchase price accounting for the merger of Sirius and XM. We endeavor to compensate for the limitations of the Non-GAAP measure presented by also providing the comparable GAAP measure with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the Non-GAAP measure.  Investors that wish to compare and evaluate our operating results after giving effect for these costs, should refer to net income as disclosed in our unaudited consolidated statements of comprehensive income. Since adjusted EBITDA is a Non-GAAP financial performance measure, our calculation of adjusted EBITDA may be susceptible to varying calculations; may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. The reconciliation of net income to the adjusted EBITDA is calculated as follows: 


For the Three Months Ended
September 30,


For the Nine Months Ended
September 30,

(in thousands)

2016


2015


2016


2015

Net income:

$

193,901



$

166,550



$

541,306



$

375,091


Add back items excluded from Adjusted EBITDA:








Purchase price accounting adjustments:








Revenues

1,813



1,813



5,438



5,438


Operating expenses







(1,394)


Pre-1972 sounds recordings legal settlements







107,658


Loss on disposal of assets





12,912




Share-based payment expense (1)

30,020



23,393



77,890



62,334


Depreciation and amortization

67,880



70,404



202,215



202,527


Interest expense

89,092



76,624



250,888



221,912


Other income

(2,370)



(4,133)



(15,733)



(9,077)


Income tax expense

111,556



112,543



326,108



296,893


Adjusted EBITDA

$

491,892



$

447,194



$

1,401,024



$

1,261,382




(1)

Allocation of share-based payment expense

 


For the Three Months Ended
September 30,


For the Nine Months Ended
September 30,

(in thousands)

2016


2015


2016


2015

Programming and content

$

5,580



$

2,899



$

14,131



$

7,245


Customer service and billing

1,069



793



2,694



2,164


Satellite and transmission

1,298



1,244



3,373



3,156


Sales and marketing

6,050



5,288



15,609



13,056


Engineering, design and development

3,837



2,801



9,393



7,063


General and administrative

12,186



10,368



32,690



29,650


Total share-based payment expense

$

30,020



$

23,393



$

77,890



$

62,334


ARPU - is derived from total earned subscriber revenue, advertising revenue and other subscription-related revenue, excluding revenue associated with our connected vehicle services, divided by the number of months in the period, divided by the daily weighted average number of subscribers for the period. Other subscription-related revenue includes the U.S. Music Royalty Fee.  ARPU is calculated as follows:


For the Three Months Ended
September 30,


For the Nine Months Ended
September 30,

(in thousands, except per subscriber amounts)

2016


2015


2016


2015

Subscriber revenue, excluding connected vehicle

$

1,048,033



$

949,301



$

3,044,438



$

2,752,993


Add: advertising revenue

34,268



33,131



99,330



88,843


Add: other subscription-related revenue

122,013



106,483



353,606



299,437



$

1,204,314



$

1,088,915



$

3,497,374



$

3,141,273


Daily weighted average number of subscribers

30,776



28,649



30,290



28,033


ARPU

$

13.04



$

12.67



$

12.83



$

12.45


Average self-pay monthly churn - is defined as the monthly average of self-pay deactivations for the period divided by the average number of self-pay subscribers for the period.

Customer service and billing expenses, per average subscriber - is derived from total customer service and billing expenses, excluding connected vehicle customer service and billing expenses and share-based payment expense, divided by the number of months in the period, divided by the daily weighted average number of subscribers for the period. We believe the exclusion of share-based payment expense in our calculation of customer service and billing expenses, per average subscriber, is useful as share-based payment expense is not directly related to the operational conditions that give rise to variations in the components of our customer service and billing expenses. Customer service and billing expenses, per average subscriber, is calculated as follows:


For the Three Months Ended
September 30,


For the Nine Months Ended
September 30,

(in thousands, except per subscriber amounts)

2016


2015


2016


2015

Customer service and billing expenses, excluding
connected vehicle

$

90,582



$

86,840



$

270,964



$

255,105


Less: share-based payment expense

(1,069)



(793)



(2,694)



(2,164)



$

89,513



$

86,047



$

268,270



$

252,941


Daily weighted average number of subscribers

30,776



28,649



30,290



28,033


Customer service and billing expenses, per average
subscriber

$

0.97



$

1.00



$

0.98



$

1.00


Free cash flow -  is derived from cash flow provided by operating activities, net of additions to property and equipment, restricted and other investment activity and the return of capital from investment in unconsolidated entity.   Free cash flow is a metric that our management and board of directors use to evaluate the cash generated by our operations, net of capital expenditures and other investment activity and significant items that do not relate to the on-going performance of our business.  In a capital intensive business, with significant investments in satellites, we look at our operating cash flow, net of these investing cash outflows, to determine cash available for future subscriber acquisition and capital expenditures, to repurchase or retire debt, to acquire other companies and to evaluate our ability to return capital to stockholders. We believe free cash flow is an indicator of the long-term financial stability of our business.  Free cash flow, which is reconciled to "Net cash provided by operating activities," is a Non-GAAP financial measure.  This measure can be calculated by deducting amounts under the captions "Additions to property and equipment" and deducting or adding Restricted and other investment activity from "Net cash provided by operating activities" from the unaudited consolidated statements of cash flows, adjusted for any significant legal settlements.  We have excluded the $210 million payment related to the pre-1972 sound recordings legal settlement from our free cash flow calculation in the three and nine months ended September 30, 2015.  Free cash flow should be used in conjunction with other GAAP financial performance measures and may not be comparable to free cash flow measures presented by other companies.  Free cash flow should be viewed as a supplemental measure rather than an alternative measure of cash flows from operating activities, as determined in accordance with GAAP.  Free cash flow is limited and does not represent remaining cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt maturities. We believe free cash flow provides useful supplemental information to investors regarding our current cash flow, along with other GAAP measures (such as cash flows from operating and investing activities), to determine our financial condition, and to compare our operating performance to other communications, entertainment and media companies.  Free cash flow is calculated as follows:


For the Three Months Ended
September 30,


For the Nine Months Ended
September 30,

(in thousands)

2016


2015


2016


2015

Cash Flow information








Net cash provided by operating activities

$

421,816



$

188,613



$

1,216,104



$

900,954


Net cash used in investing activities

$

(65,289)



$

(29,714)



$

(136,414)



$

(94,909)


Net cash used in financing activities

$

(260,598)



$

(300,407)



$

(619,146)



$

(801,224)


Free Cash Flow








Net cash provided by operating activities

$

421,816



$

188,613



$

1,216,104



$

900,954


Additions to property and equipment

(65,074)



(29,714)



(132,246)



(90,943)


Purchases of restricted and other investments

(215)





(4,168)



(3,966)


Pre-1972 sound recordings legal settlement



210,000





210,000


Free cash flow

$

356,527



$

368,899



$

1,079,690



$

1,016,045


New vehicle consumer conversion rate - is defined as the percentage of owners and lessees of new vehicles that receive our satellite radio service and convert to become self-paying subscribers after the initial promotion period. At the time satellite radio enabled vehicles are sold or leased, the owners or lessees generally receive trial subscriptions ranging from three to twelve months. We measure conversion rate three months after the period in which the trial service ends. The metric excludes rental and fleet vehicles.

Subscriber acquisition cost, per installation - or SAC, per installation, is derived from subscriber acquisition costs and margins from the sale of radios and accessories, divided by the number of satellite radio installations in new vehicles and shipments of aftermarket radios for the period.  SAC, per installation, is calculated as follows:


For the Three Months Ended
September 30,


For the Nine Months Ended
September 30,

(in thousands, except per installation amounts)

2016


2015


2016


2015

Subscriber acquisition costs

$

120,111



$

133,009



$

381,516



$

391,773


Less: margin from sales of radios and accessories

(21,632)



(16,629)



(57,104)



(50,958)



$

98,479



$

116,380



$

324,412



$

340,815


Installations

3,498



3,429



10,404



10,305


SAC, per installation

$

28



$

34



$

31



$

33


About SiriusXM

Sirius XM Holdings Inc. (NASDAQ: SIRI) is the world's largest radio company measured by revenue and has approximately 31 million subscribers. SiriusXM creates and offers commercial-free music; premier sports talk and live events; comedy; news; exclusive talk and entertainment, and a wide-range of Latin music, sports and talk programming. SiriusXM is available in vehicles from every major car company in the U.S. and on smartphones and other connected devices as well as online at siriusxm.com. SiriusXM radios and accessories are available from retailers nationwide and online at SiriusXM. SiriusXM also provides premium traffic, weather, data and information services for subscribers through SiriusXM Traffic™, SiriusXM Travel Link, NavTraffic®, NavWeather™. SiriusXM delivers weather, data and information services to aircraft and boats through SiriusXM Aviation, SiriusXM Marine™, Sirius Marine Weather, XMWX Aviation™, XMWX Weather, and XMWX Marine™. In addition, SiriusXM Music for Business provides commercial-free music to a variety of businesses. SiriusXM holds a minority interest in SiriusXM Canada which has approximately 2.8 million subscribers. SiriusXM is also a leading provider of connected vehicles services to major automakers, giving customers access to a suite of safety, security, and convenience services including automatic crash notification, stolen vehicle recovery assistance, enhanced roadside assistance and turn-by-turn navigation.

To download SiriusXM logos and artwork, visit http://www.siriusxm.com/LogosAndPhotos.

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 future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and other statements identified by words such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "believe," "intend," "plan," "projection," "outlook" or words of similar meaning. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results anticipated in these forward-looking statements. SiriusXM does not provide a non-GAAP reconciliation for Adjusted EBITDA guidance to Net income or Free cash flow guidance to Net cash provided by operating activities because it does not provide guidance for the reconciling items between adjusted EBITDA to Net income, which includes the provision for income taxes, interest expense and other income, nor does the Company provide guidance for the reconciling items between Free cash flow to Net cash provided by operating activities, which includes additions to property and equipment.  As items that impact Net income and Net cash provided by operating activities are out of the Company's control and/or cannot be reasonably predicted, the Company is unable to provide such guidance as the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.  Accordingly, a reconciliation to Net income and Net cash provided by operating activities is not available without unreasonable effort.

The following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: our substantial competition, which is likely to increase over time; our ability to attract and retain subscribers, which is uncertain; consumer protection laws and their enforcement; the unfavorable outcome of pending or future litigation; the market for music rights, which is changing and subject to uncertainties; our dependence upon the auto industry; general economic conditions; the security of the personal information about our customers; existing or future government laws and regulations could harm our business; failure of our satellites would significantly damage our business; the interruption or failure of our information technology and communications systems; our failure to realize benefits of acquisitions or other strategic initiatives; rapid technological and industry changes; failure of third parties to perform; harmful interference to our service from new and existing wireless operations; our failure to comply with FCC requirements; modifications to our business plan; our indebtedness; our principal stockholder has significant influence over our affairs and over actions requiring stockholder approval and its interests may differ from interests of other holders of our common stock; and impairment of our business by third-party intellectual property rights. Additional factors that could cause our results to differ materially from those described in the forward-looking statements can be found in our Annual Report on Form 10-K for the year ended December 31, 2015, which is 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 we disclaim any intention or obligation to update any forward looking statements as a result of developments occurring after the date of this communication.

Source: SiriusXM

Contact for SiriusXM:

Hooper Stevens
212-901-6718
Hooper.stevens@siriusxm.com

Patrick Reilly
212-901-6646
patrick.reilly@siriusxm.com

Logo - http://photos.prnewswire.com/prnh/20101014/NY82093LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/siriusxm-reports-third-quarter-2016-results-300352115.html

SOURCE Sirius XM Holdings Inc.