Exhibit 99.1
100 STREAMS OF SATELLITE RADIO [SIRIUS LOGO]
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SIRIUS SATELLITE RADIO ANNOUNCES FIRST QUARTER 2004
FINANCIAL AND OPERATING RESULTS
o Subscriber Base Increased 35% During Quarter to 351,663
o Share of Retail Sales Increased to 41% in February; Doubling Since
Debut in the Plug-&-Play Category
o Revenue Improved 88% from Previous Quarter While Fixed Costs Remained
Flat
o Balance Sheet Remains Strongest in Industry, With Over $700 Million in
Cash
NEW YORK - April 21, 2004 - SIRIUS Satellite Radio (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 first quarter 2004
financial and operating results.
As of March 31, 2004, SIRIUS had 351,663 subscribers. This represents a net
subscriber addition of 90,602 during the quarter, a 138% increase over the net
subscriber additions reported by the company at March 31, 2003.
During the first quarter of 2004, SIRIUS announced several new distribution and
programming agreements, which are expected to make SIRIUS available through over
20,000 locations and solidify the company's position as the leader in
commercial-free music and sports offerings. SIRIUS continued to experience
significant gains in the retail aftermarket channel, fueled by strong
post-holiday activations, increased product availability, and strengthening
consumer awareness. During the quarter, SIRIUS added more than 65,500
subscribers from the retail aftermarket channel, 154% more than were activated
in the first quarter of 2003. SIRIUS products, including five different
Plug-&-Play receivers and two transportable boom-boxes, are currently available
nationwide.
"On the heels of an excellent holiday selling season, we had a very strong first
quarter at retail, increasing our share of satellite radio retail aftermarket
sales to approximately 41% at the end of February, according to market
information company The NPD Group. That's a doubling of our retail share since
we introduced our first Plug-&-Play products last June," said Joseph P. Clayton,
President and CEO, SIRIUS. "With 94% reporting strong satisfaction, our
customers are telling us that SIRIUS is a service they can't live without. These
high satisfaction ratings coupled with our increased awareness and availability
bode very well for SIRIUS' future."
During the first quarter of 2004, SIRIUS added over 24,000 subscribers through
its automotive, boating and trucking relationships. Recently, exclusive
automotive partner DaimlerChrysler announced an extensive factory installation
program for SIRIUS beginning with eleven Model Year 2005 vehicle lines. SIRIUS
expects to achieve over 500,000 subscribers from these factory programs by mid
2006. SIRIUS is already offered today as a factory or dealer installed option on
50 different vehicle models from DaimlerChrysler, Ford, BMW, Nissan, Infiniti
and Audi. In 2004, SIRIUS expects to be available on over 80 vehicle models from
these partners, with 50 of these being factory installation programs.
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 on our service by tuning to SIRIUS Stream 131.
FIRST QUARTER 2004 VERSUS FIRST QUARTER 2003
For the first quarter of 2004, SIRIUS recognized total revenue of $9.3 million,
compared to $1.6 million for the first quarter of 2003. SIRIUS reported a loss
from operations of $(119.5) million for the first quarter of 2004, compared to a
loss from operations of $(99.1) million for the first quarter of 2003. Adjusted
loss from operations for the quarter was $(78.0) million compared to adjusted
loss from operations of $(74.5) million for the first quarter of 2003 (refer to
reconciliation table of loss from operations to adjusted loss from operations).
SIRIUS reported a net loss applicable to common stockholders of $(146.4)
million, or $(0.12) per share, for the first quarter of 2004, compared with net
income applicable to common stockholders of $51.9 million, or $0.16 per share,
for the first quarter of 2003. Included in net income applicable to common
stockholders for the first quarter of 2003 was a $256.5 million gain in
connection with the elimination of approximately 91% of the company's then
outstanding debt and a deemed dividend of $79.5 million associated with the
elimination of 100% of its convertible preferred stock.
For the first quarter of 2004, average monthly revenue per subscriber, or ARPU,
was $9.92. Excluding the effects of mail-in rebate programs, ARPU for the first
quarter of 2004 was $11.06.
SIRIUS maintains a strong cash position, ending the first quarter with $707
million in cash, cash equivalents, and marketable securities. During the first
quarter of 2004, SIRIUS raised $300 million of gross proceeds through an
offering of 2 1/2% Convertible Notes. Further, during the quarter, holders of
the company's 3 1/2% Convertible Notes converted to 56.4 million shares of
common stock, eliminating $69 million of SIRIUS' long-term debt.
Cash flow from operating activities for the quarter was $(71.9) million compared
to cash flow from operating activities of $(71.1) million for the first quarter
of 2003.
(Selected financial information follows).
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SIRIUS defines adjusted loss from operations as loss from operations before
depreciation expense, non-cash stock compensation expense, and expense for
equity securities granted to third parties. Adjusted loss from operations is not
a measure of financial performance under accounting principles generally
accepted in the United States. SIRIUS believes adjusted loss from operations is
useful to investors because it represents operating expenses of the company
excluding the effects of non-cash items. Because adjusted loss from operations
is not a measurement determined in accordance with accounting principles
generally accepted in the United States and is thus susceptible to varying
calculations, adjusted loss from operations as presented may not be comparable
to other similarly titled measures of other companies.
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
the negative margin on equipment sales. 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.
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Sirius Satellite Radio Inc.
Financial Highlights
(In thousands, except per share data)
(Unaudited)
For the Three Months Ended
March 31,
--------------------------
2004 2003
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Statements of Operations:
Subscriber revenue, including effects of mail-in
rebates $ 9,202 $ 1,554
Advertising revenue, net of agency fees 20 17
Equipment revenue 50 --
Other revenue 19 20
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Total revenue 9,291 1,591
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Operating expenses:
Cost of services:
Satellite and transmission 9,022 7,867
Programming and content 9,178 6,574
Customer service and billing 3,860 2,202
Cost of equipment 64 --
Sales and marketing 34,953 31,486
Subscriber acquisition costs 26,981 11,864
General and administrative 7,869 9,094
Research and development 5,119 6,973
Depreciation expense 23,688 24,100
Non-cash stock compensation expense 8,065 559
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Total operating expenses 128,799 100,719
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Loss from operations (119,508) (99,128)
Other (expense) income:
Debt restructuring -- 256,538
Interest and investment income 1,669 1,343
Interest expense (26,003) (18,665)
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Total other (expense) income (24,334) 239,216
(Loss) income before income tax expense (143,842) 140,088
Income tax expense (2,521) --
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Net (loss) income (146,363) 140,088
Preferred stock dividends -- (8,574)
Preferred stock deemed dividends -- (79,634)
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Net (loss) income applicable to common stockholders $ (146,363) $ 51,880
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Net (loss) income per share applicable to common
stockholders:
Basic $ (0.12) $ 0.16
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Diluted $ (0.12) $ 0.16
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Weighted average common shares outstanding:
Basic 1,217,608 327,785
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Diluted 1,217,608 327,872
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Sirius Satellite Radio Inc.
Financial Highlights
(In thousands)
(Unaudited)
As of As of
March 31, 2004 December 31, 2003
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Selected Balance Sheet Data:
Cash, cash equivalents and marketable
securities $ 706,664 $ 549,883
Restricted investments 92,116 8,747
Working capital 652,749 497,661
Total assets 1,887,019 1,617,317
Long-term debt 425,920 194,803
Total liabilities 538,402 292,123
Accumulated deficit (1,300,057) (1,153,694)
Stockholders' equity 1,348,617 1,325,194
The following table reconciles GAAP loss from operations to adjusted loss from
operations:
For the Three Months Ended
March 31,
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2004 2003
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GAAP loss from operations, as reported $(119,508) $(99,128)
Depreciation expense 23,688 24,100
Non-cash stock compensation expense 8,065 559
Expense for equity securities granted to third
parties included in programming and content 488 --
Expense for equity securities granted to third
parties included in sales and marketing 9,271 1
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Adjusted loss from operations $ (77,996) $(74,468)
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Sirius Satellite Radio Inc.
Financial Highlights
(In thousands)
(Unaudited)
For the Three Months Ended
March 31,
--------------------------
2004 2003
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Statements of Cash Flows:
Cash flows from operating activities:
Net (loss) income $(146,363) $ 140,088
Adjustments to reconcile net (loss) income
to net cash used in operating activities:
Depreciation expense 23,688 24,100
Non-cash interest expense 22,326 1,767
Non-cash stock compensation expense 8,065 559
Gain on disposal of assets 19 --
Non-cash gain associated with debt -- (261,275)
restructuring
Costs associated with debt restructuring -- 4,737
Expense for equity securities granted to third
parties 9,759 1
Increase (decrease) in cash and cash equivalents
resulting from changes in assets and liabilities:
Marketable securities (92) (979)
Prepaid expenses and other current assets (4,695) 1,377
Other long-term assets (968) 24
Accounts payable and accrued expenses 2,621 3,020
Accrued interest 3,744 14,436
Deferred revenue 8,495 --
Other long-term liabilities 1,530 1,005
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Net cash used in operating activities (71,871) (71,140)
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Cash flows from investing activities:
Additions to property and equipment (2,950) (5,405)
Sale of property and equipment 28 --
Purchases of restricted investments (85,000) --
Maturities of available-for-sale securities 25,000 120,000
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Net cash (used in) provided by investing
activities (62,922) 114,595
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Cash flows from financing activities:
Proceeds from issuance of common stock, net -- 197,112
Proceeds from issuance of long-term debt, net 293,600 --
Proceeds from exercise of options 1,453 --
Proceeds from exercise of warrants 19,850 --
Costs associated with debt restructuring -- (4,737)
Other (33) (25)
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Net cash provided by financing activities 314,870 192,350
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Net increase in cash and cash equivalents 180,077 235,805
Cash and cash equivalents at the beginning 520,979 18,375
of the period
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Cash and cash equivalents at the end
of the period $ 701,056 $ 254,180
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Sirius Satellite Radio Inc.
Quarterly Data:
(Unaudited)
Q1 2004 Q4 2003 Q3 2003 Q2 2003 Q1 2003
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Subscribers:
Beginning subscribers 261,061 149,612 105,186 68,059 29,947
Net additions 90,602 111,449 44,426 37,127 38,112
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Ending subscribers 351,663 261,061 149,612 105,186 68,059
Retail 263,164 197,650 110,821 77,713 51,969
OEM and Special Markets 63,493 39,400 15,358 7,630 4,252
Hertz 25,006 24,011 23,433 19,843 11,838
Q1 2004 Q4 2003 Q3 2003
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Monthly ARPU:
Average monthly revenue per subscriber $11.68 $11.99 $12.09
Effect of Hertz subscribers (0.62) (1.19) (1.78)
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ARPU before effects of mail-in rebates $11.06 $10.80 $10.31
Effect of mail-in rebates (1.14) (2.21) 0.89
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Reported ARPU $ 9.92 $ 8.59 $11.20
Average monthly revenue per Hertz
subscriber $ 5.17 $ 2.65 $ 2.12
SAC:
Total SAC per gross add $ 248 $ 222 $ 522
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About SIRIUS
SIRIUS provides listeners with over 110 channels of the best commercial-free
music, sports, information and entertainment, with digital quality sound
coast-to-coast, broadcast daily from New York City, Los Angeles, Nashville, New
Orleans, Houston and Daytona. SIRIUS offers over 60, 100% commercial-free, music
channels featuring multiple categories of Pop, Rock, Country, Hip-Hop, R&B,
Dance, Jazz, Classical and Latin music, along with more than 50 channels of
world-class sports, news, talk entertainment, traffic and weather for a monthly
subscription fee of only $12.95, with greater savings for upfront payments of
multiple months or a year or more. SIRIUS also broadcasts live play-by-play
games of the NHL, NBA and NFL, and is the official satellite radio partner of
the NFL.
SIRIUS Satellite Radio products for the car, truck, home, RV and boat are
manufactured by Alpine, Audiovox, Blaupunkt, Clarion, Eclipse, Jensen, JVC,
Kenwood and Panasonic, and can be purchased at major retailers including Best
Buy, Car Toys, Circuit City, Crutchfield, Good Guys, Sears, Tweeter and Ultimate
Electronics, along with RadioShack and DISH Network outlets in mid-2004.
SIRIUS' exclusive automotive partners DaimlerChrysler, Ford and BMW represent
over 40% of new cars and light trucks sold annually in the United States.
Automotive brands currently offering SIRIUS radios in select new car models
include BMW, MINI, Chrysler, Dodge, Jeep'r', Nissan, Infiniti, Mazda, Audi,
Ford, Lincoln-Mercury, Mercedes-Benz and Volkswagen. Automotive brands that have
announced plans to offer SIRIUS radios in select models include Jaguar, Volvo,
Land Rover and Aston Martin. In 2004, SIRIUS radios are expected to be available
in nearly 80 different car models, with over 50 of them factory programs. Also,
Hertz currently offers SIRIUS in 29 vehicle models at 53 major locations around
the country. In addition, Penske Companies -- Penske Auto Group, United Auto
Group and Penske Trucking -- are offering SIRIUS radios as a factory installed
option, where available, in their cars and trucks through their dealerships.
Genmar Holdings, the world's largest manufacturer of recreational boats, Formula
Boats and Winnebago, the leading supplier of recreational vehicles and motor
homes, also offer SIRIUS.
Click on www.SIRIUS.com to listen to SIRIUS live, or to find a SIRIUS retailer
or car dealer in your area.
Any statements that express, or involve discussions as to, expectations,
beliefs, plans, objectives, assumptions, future events or performance with
respect to SIRIUS Satellite Radio Inc. are not historical facts and may be
forward-looking and, accordingly, such statements involve estimates, assumptions
and uncertainties which could cause actual results to differ materially from
those expressed in any forward-looking statements. Accordingly, any such
statements are qualified in their entirety by reference to the factors discussed
in our Annual Report on Form 10-K for the year ended December 31, 203 filed with
the Securities and Exchange Commission. Among the key factors that have a direct
bearing on our results of operations are: our dependence upon third parties to
manufacture, distribute, market and sell SIRIUS radios and components for those
radios; the unproven market for our service; our competitive position and any
events which affect the useful life of our satellites.
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Contacts:
Jim Collins
SIRIUS
Media Relations
212.901.6422
jcollins@SIRIUSradio.com
Cheryl Cramer
SIRIUS
Investor Relations
212.901.6466
ccramer@SIRIUSradio.com
Thomas Meyer
PR21 for SIRIUS
Media Relations
310.566.2285
Thomas.Meyer@pr21.com
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