SiriusXM Reports First Quarter 2012 Results

SiriusXM Reports First Quarter 2012 Results

- Subscribers Grow by 405,000 to a Record 22.3 Million

- Record Quarterly Revenue of $805 Million, Up 11%

- First Quarter 2012 Net Income of $108 Million, Up 38%

- Adjusted EBITDA Reaches $208 Million, Up 15%

- Company Raises Subscriber Guidance

NEW YORK, May 1, 2012 /PRNewswire/ -- Sirius XM Radio (NASDAQ: SIRI) today announced first quarter 2012 financial and operating results, including revenue of $805 million, up 11% over first quarter 2011 revenue of $724 million. Net income for the first quarters of 2012 and 2011 were $108 million and $78 million, respectively, or $0.02 and $0.01 per diluted share, respectively.

(Logo: http://photos.prnewswire.com/prnh/20101014/NY82093LOGO )

Adjusted EBITDA for the first quarter of 2012 was $208 million, up 15% from $181 million in the first quarter of 2011.

"SiriusXM is starting the year with tremendous operational momentum. We grew subscribers faster than any first quarter since our 2008 merger of Sirius and XM, and we improved our self-pay monthly churn rate to 1.9% despite implementing a price increase at the beginning of the year. Rising auto sales and our strong execution should enable us to exceed our prior 2012 subscriber growth guidance of 1.3 million, which today we are raising to 1.5 million," noted Mel Karmazin, Chief Executive Officer, SiriusXM.

"In 2012, we continue to expect record revenue, adjusted EBITDA, and free cash flow, and our subscriber base will also finish this year at another all-time record high," said Karmazin. "Our number one focus is on delivering the best possible content to our subscribers - we are rolling out more satellite channels via factory-installed 2.0 radios, and we are improving our online offering by delivering even more live sports coverage, updated apps with enhanced features, and later this year, on-demand content and personalized radio. There has never been a better time to be a SiriusXM subscriber, and we think our unparalleled audio product will produce strong operating and financial performance for our company in the years to come, which should result in great value to our stockholders."

Additional highlights from the first quarter include:


-- Subscriber growth accelerates. Self-pay net subscriber additions
improved by 148% to 299,348 and the subscriber base rose to an all-time
high of 22.3 million subscribers. Strong auto sales helped lift total
paid and unpaid trial inventory by more than 200,000 from year end to
5.7 million.
-- Churn improves. Self-pay monthly churn was 1.9% in the first quarter of
2012, an improvement from 2.0% in the first quarter of 2011. New
vehicle consumer conversion rate was 45% in the first quarter of 2012,
in-line with the first quarter of 2011.
-- Free cash flow grows. Free cash flow was $15 million in the first
quarter of 2012, an improvement from the ($17) million recorded in the
first quarter of 2011, and represented the first time SiriusXM has shown
positive free cash flow in the first quarter of a year.
"We ended the first quarter with $747 million of cash, after the repurchase of approximately $57 million in aggregate principal amount of our debt during the first quarter. Our leverage at the end of the first quarter improved to 3.9 times our adjusted EBITDA on a gross basis and 2.9 times our adjusted EBITDA on a net basis," said David Frear, SiriusXM's Executive Vice President and Chief Financial Officer. "Our growing cash flow is reducing our leverage substantially, and this improving credit profile should benefit stockholders as we refinance or pay down more than $1 billion of high coupon debt over the next 15 months."

2012 GUIDANCE

"With auto sales in the first quarter exceeding expectations and better than expected churn, we now expect to grow our net new subscribers by 1.5 million in 2012," said Karmazin. The Company reiterates its existing 2012 revenue, adjusted EBITDA and free cash flow guidance:


-- Revenue of approximately $3.3 billion,
-- Adjusted EBITDA of approximately $875 million, and
-- Free cash flow of approximately $700 million.
FIRST QUARTER 2012 RESULTS






SIRIUS XM RADIO INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three Months
Ended March 31,
---------------
(in
thousands,
except
per share
data) 2012 2011
---- ----

Revenue:
Subscriber
revenue $700,242 $622,437
Advertising
revenue,
net of
agency
fees 18,670 16,558
Equipment
revenue 16,953 15,867
Other
revenue 68,857 68,977
------ ------
Total
revenue 804,722 723,839
Operating
expenses:
Cost of
services:
Revenue
share and
royalties 132,111 106,929
Programming
and
content 70,095 72,959
Customer
service
and
billing 66,187 65,836
Satellite
and
transmission 18,110 18,560
Cost of
equipment 5,806 6,405
Subscriber
acquisition
costs 116,121 105,270
Sales and
marketing 58,361 47,819
Engineering,
design
and
development 12,690 11,135
General
and
administrative 59,886 56,354
Depreciation
and
amortization 66,117 68,400
Total
operating
expenses 605,484 559,667
------- -------
Income
from
operations 199,238 164,172
Other
income
(expense):
Interest
expense,
net of
amounts
capitalized (76,971) (78,218)
Loss on
extinguishment
of debt
and
credit
facilities,
net (9,971) (5,994)
Interest
and
investment
loss (1,142) (1,884)
Other
(loss)
income (578) 1,617
Total
other
expense (88,662) (84,479)
------- -------
Income
before
income
taxes 110,576 79,693
Income tax
expense (2,802) (1,572)

Net income $107,774 $78,121
======== =======
Foreign
currency
translation
adjustment,
net of
tax (56) 67
Comprehensive
income $107,718 $78,188
======== =======

Net income
per
common
share:
Basic $0.03 $0.02
===== =====
Diluted $0.02 $0.01
===== =====

Weighted
average
common
shares
outstanding:
Basic 3,767,443 3,735,136
========= =========
Diluted 6,537,728 6,481,384
========= =========





SIRIUS XM RADIO INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

March 31, 2012 December 31, 2011
-------------- -----------------
(unaudited)
(in
thousands,
except
share
and per
share
data)

ASSETS
Current
assets:
Cash and
cash
equivalents $746,576 $773,990
Accounts
receivable,
net 108,335 101,705
Receivables
from
distributors 96,037 84,817
Inventory,
net 36,791 36,711
Prepaid
expenses 177,515 125,967
Related
party
current
assets 6,503 14,702
Deferred
tax
asset 144,798 132,727
Other
current
assets 20,539 6,335
------ -----
Total
current
assets 1,337,094 1,276,954
Property
and
equipment,
net 1,645,610 1,673,919
Long-
term
restricted
investments 3,973 3,973
Deferred
financing
fees,
net 38,848 42,046
Intangible
assets,
net 2,559,712 2,573,638
Goodwill 1,834,856 1,834,856
Related
party
long-
term
assets 54,229 54,953
Other
long-
term
assets 27,402 35,657
------ ------
Total
assets $7,501,724 $7,495,996
========== ==========
LIABILITIES
AND
STOCKHOLDERS'
EQUITY
Current
liabilities:
Accounts
payable
and
accrued
expenses $454,748 $543,193
Accrued
interest 77,562 70,405
Current
portion
of
deferred
revenue 1,404,919 1,333,965
Current
portion
of
deferred
credit
on
executory
contracts 281,270 284,108
Current
maturities
of
long-
term
debt 1,540 1,623
Related
party
current
liabilities 16,541 14,302
------ ------
Total
current
liabilities 2,236,580 2,247,596
Deferred
revenue 183,430 198,135
Deferred
credit
on
executory
contracts 147,012 218,199
Long-
term
debt 2,625,533 2,683,563
Long-
term
related
party
debt 329,576 328,788
Deferred
tax
liability 1,024,734 1,011,084
Related
party
long-
term
liabilities 21,048 21,741
Other
long-
term
liabilities 84,232 82,745
------ ------
Total
liabilities 6,652,145 6,791,851
--------- ---------

Commitments
and
contingencies
Stockholders'
equity:
Preferred
stock, and
par December
value 31,
$0.001; 2011:
50,000,000
authorized
at
March
31,
2012
Series A
convertible 31,
preferred 2012
stock;
no
shares
issued
and
outstanding
at
March
and
December
31,
2011 - -
Convertible
perpetual March
preferred 31,
stock, 2012
series
B-1
(liquidation
preference
of
$0.001
at
and
December 31,
31, 2012
2011); and
12,500,000
shares
issued
and
outstanding
at
March
December
31, 2011 13 13
Common
stock, 2012
par and
value
$0.001;
9,000,000,000
shares
authorized
at
March
31,
December
31,
2011;
3,788,755,725
and
3,753,201,929
shares
issued
and
outstanding
at
March
31,
2012
and
December
31,
2011 3,789 3,753
Accumulated
other
comprehensive
income,
net of
tax 15 71
Additional
paid-
in
capital 10,522,080 10,484,400
Accumulated
deficit (9,676,318) (9,784,092)
---------- ----------
Total
stockholders'
equity 849,579 704,145
------- -------
Total
liabilities
and
stockholders'
equity $7,501,724 $7,495,996
========== ==========





SIRIUS XM RADIO INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months
Ended March 31,
---------------------
(in thousands) 2012 2011
---- ----

Cash flows from operating
activities:
Net income $107,774 $78,121
Adjustments to reconcile net
income to net cash provided by
(used in) operating activities:
Depreciation and amortization 66,117 68,400
Non-cash interest expense, net
of amortization of premium 10,647 9,573
Provision for doubtful accounts 6,208 9,623
Amortization of deferred income
related to equity method
investment (694) (694)
Loss on extinguishment of debt
and credit facilities, net 9,971 5,994
Loss on unconsolidated entity
investments, net 422 2,350
Loss on disposal of assets - 266
Share-based payment expense 14,951 12,856
Deferred income taxes 1,572 1,111
Other non-cash purchase price
adjustments (73,956) (66,743)
Changes in operating assets and
liabilities:
Accounts receivable (12,838) 11,291
Receivables from distributors (11,220) (8,982)
Inventory (80) (7,330)
Related party assets 8,347 (3,686)
Prepaid expenses and other
current assets (65,753) (39,232)
Other long-term assets 8,256 7,617
Accounts payable and accrued
expenses (96,859) (110,400)
Accrued interest 7,157 8,124
Deferred revenue 56,182 39,225
Related party liabilities 2,239 738
Other long-term liabilities 1,505 (113)
----- ----
Net cash provided by operating
activities 39,948 18,109
------ ------

Cash flows from investing
activities:
Additions to property and
equipment (25,187) (34,983)
Net cash used in investing
activities (25,187) (34,983)
------- -------

Cash flows from financing
activities:
Proceeds from exercise of stock
options 22,765 1,072
Payment of premiums on
redemption of debt (6,602) (4,094)
Repayment of long-term
borrowings (58,338) (133,100)
Net cash used in financing
activities (42,175) (136,122)
------- --------
Net decrease in cash and cash
equivalents (27,414) (152,996)
Cash and cash equivalents at
beginning of period 773,990 586,691
Cash and cash equivalents at end
of period $746,576 $433,695
======== ========




Subscriber Data and Operating Metrics

The following table contains subscriber data and key operating metrics for the three months ended March 31, 2012 and 2011, respectively:


Unaudited
---------
For the Three Months Ended
March 31,
---------------------------
2012 2011
---- ----

Beginning subscribers 21,892,824 20,190,964
Gross subscriber additions 2,161,693 2,052,367
Deactivated subscribers (1,757,097) (1,679,303)
Net additions 404,596 373,064
------- -------
Ending subscribers 22,297,420 20,564,028
========== ==========

Self-pay 18,208,090 16,807,643
Paid promotional 4,089,330 3,756,385
Ending subscribers 22,297,420 20,564,028
========== ==========

Self-pay 299,348 120,844
Paid promotional 105,248 252,220
Net additions 404,596 373,064
======= =======

Daily weighted average number of
subscribers 21,990,863 20,233,144
========== ==========

Average self-pay monthly churn 1.9% 2.0%
=== ===

New Vehicle Consumer Conversion
rate 45% 45%
=== ===

ARPU $11.77 $11.52
SAC, per gross subscriber
addition $60 $57


Subscribers. The improvement was due to the 5% increase in gross subscriber additions, primarily resulting from higher new vehicle shipments and light vehicle sales, as well as an increase in conversions from unpaid promotional trials and returning subscriber activations inclusive of previously owned vehicles. This increase in gross additions was partially offset by the 5% increase in deactivations. The increase in deactivations was primarily due to an increase in paid promotional trial deactivations stemming from the increase in volume of paid trials, along with growth in our subscriber base, partially offset by a decline in the self-pay churn rate.

Average Self-pay Monthly Churn for the three months ended March 31, 2012 and 2011 was 1.9% and 2.0%, respectively. The decrease in the churn rate was driven by a reduction in the non-pay cancellation rate, as well as a favorable shift in the subscriber mix towards automotive vehicles, which churn at lower rates in comparison to aftermarket products.

New Vehicle Consumer Conversion Rate for the three months ended March 31, 2012 and 2011 was 45%.

ARPU increased primarily due to the increase in certain of our subscription rates beginning in January 2012, an increase in sales of premium services, including Premier packages, data services and streaming, partially offset by an increase in subscriber retention programs and in the number of subscribers on promotional plans and a decrease in the revenue from the U.S. Music Royalty Fee due to the December 2010 reduction in the rate from 15.3% to 10.8%.

SAC, Per Gross Subscriber Addition, increased in the three months ended March 31, 2012 primarily due to higher subsidies related to increased OEM installations occurring in advance of acquiring the subscriber, partially offset by improved OEM subsidy rates per vehicle compared to the three months ended March 31, 2011.

Glossary

Adjusted EBITDA - EBITDA is defined as net income before interest and investment loss; interest expense, net of amounts capitalized; income tax expense and depreciation and amortization. We adjust EBITDA to remove the impact of other income and expense, loss on extinguishment of debt as well as certain other charges discussed below. This measure is one of the primary Non-GAAP financial measures on which we (i) evaluate the performance of our businesses, (ii) base our internal budgets and (iii) compensate management. Adjusted EBITDA is a Non-GAAP financial performance measure that excludes (if applicable): (i) certain adjustments as a result of the purchase price accounting for the Merger, (ii) goodwill impairment, (iii) restructuring, impairments, and related costs, (iv) depreciation and amortization and (v) share-based payment expense. The purchase price accounting adjustments include: (i) the elimination of deferred revenue associated with the investment in XM Canada, (ii) recognition of deferred subscriber revenues not recognized in purchase price accounting, and (iii) elimination of the benefit of deferred credits on executory contracts, which are primarily attributable to third party arrangements with an OEM and certain programming providers. 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 physical plant, 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 current and projected adjusted EBITDA to estimate our current and prospective enterprise value and to make investment decisions. Because we fund and build-out our satellite radio system through the periodic raising and expenditure of large amounts of capital, our results of operations reflect significant charges for depreciation expense. The exclusion of depreciation and amortization expense is useful given significant variation in depreciation and amortization expense that can result from the potential variations in estimated useful lives, all of which can vary widely across different industries or among companies within the same industry. We believe the exclusion of restructuring, impairments and related costs is useful given the nature of these expenses. We also believe the exclusion of share-based payment expense is useful given the significant variation in expense that can result from changes in the fair value as determined using the Black-Scholes-Merton model which varies based on assumptions used for the expected life, expected stock price volatility and risk-free interest rates.

Adjusted EBITDA has certain limitations in that it does not take into account the impact to our statement of comprehensive income of certain expenses, as discussed above. 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 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 (in thousands):




Unaudited
---------
For the Three Months
Ended March 31,
---------------------
2012 2011
---- ----

Net income (GAAP): $107,774 $78,121
Add back items excluded from
Adjusted EBITDA:
Purchase price accounting
adjustments:
Revenues 1,880 3,722
Operating expenses (74,024) (67,972)
Share-based payment expense, net
of purchase price
accounting adjustments 14,951 13,037
Depreciation and amortization
(GAAP) 66,117 68,400
Interest expense, net of amounts
capitalized (GAAP) 76,971 78,218
Loss on extinguishment of debt and
credit facilities, net (GAAP) 9,971 5,994
Interest and investment loss (GAAP) 1,142 1,884
Other (income) loss (GAAP) 578 (1,617)
Income tax expense (GAAP) 2,802 1,572

Adjusted EBITDA $208,162 $181,359
======== ========


Adjusted Operating Expenses - We define this Non-GAAP financial measure as our actual operating expenses adjusted to exclude the impact of certain purchase price accounting adjustments and share-based payment expense. We use this Non-GAAP financial measure to manage our business, set operational goals and as a basis for determining performance-based compensation for our employees. The following tables reconcile our actual operating expenses to our adjusted operating expenses for the three months ended March 31, 2012 and 2011:




Unaudited For the Three Months Ended March 31, 2012
---------------------------------------------------
(in thousands) As Reported Purchase Price Allocation of Adjusted
Accounting Share-based
Adjustments Payment Expense
---

Operating expenses
Cost of services:
Revenue share and royalties 132,111 34,846 - 166,957
Programming and content 70,095 11,702 (1,374) 80,423
Customer service and
billing 66,187 - (427) 65,760
Satellite and transmission 18,110 - (785) 17,325
Cost of equipment 5,806 - - 5,806
Subscriber acquisition
costs 116,121 24,085 - 140,206
Sales and marketing 58,361 3,391 (2,360) 59,392
Engineering, design and
development 12,690 - (1,432) 11,258
General and administrative 59,886 - (8,573) 51,313
Depreciation and
amortization (a) 66,117 - - 66,117
Share-based payment expense - - 14,951 14,951
--- --- ------ ------
Total operating expenses $605,484 $74,024 $- $679,508
======== ======= === ========

(a) Purchase price accounting adjustments included above exclude the incremental depreciation and amortization associated with the $785,000 stepped up basis in
property, equipment and intangible assets as a result of the Merger. The increased depreciation and amortization for the three months ended March 31, 2012 was
$14,000.





Unaudited For the Three Months Ended March 31, 2011
---------------------------------------------------
(in thousands) As Reported Purchase Price Allocation of Adjusted
Accounting Share-based
Adjustments Payment Expense
---

Operating expenses
Cost of services:
Revenue share and royalties 106,929 29,933 - 136,862
Programming and content 72,959 12,824 (2,510) 83,273
Customer service and
billing 65,836 18 (367) 65,487
Satellite and transmission 18,560 239 (567) 18,232
Cost of equipment 6,405 - - 6,405
Subscriber acquisition
costs 105,270 21,656 - 126,926
Sales and marketing 47,819 3,212 (1,875) 49,156
Engineering, design and
development 11,135 31 (1,142) 10,024
General and administrative 56,354 59 (6,576) 49,837
Depreciation and
amortization (a) 68,400 - - 68,400
Share-based payment
expense (b) - - 13,037 13,037
Total operating expenses $559,667 $67,972 $- $627,639
======== ======= === ========

(a) Purchase price accounting adjustments included above exclude the incremental depreciation and amortization associated with the $785,000 stepped up basis in
property, equipment and intangible assets as a result of the Merger. The increased depreciation and amortization for the three months ended March 31, 2011 was
$15,000.

(b) Amounts related to share-based payment expense included in operating expenses were as follows:

Programming and content $2,483 $27 $- $2,510
Customer service and
billing 349 18 - 367
Satellite and transmission 548 19 - 567
Sales and marketing 1,848 27 - 1,875
Engineering, design and
development 1,111 31 - 1,142
General and administrative 6,517 59 - 6,576

Total share-based payment
expense $12,856 $181 $- $13,037
======= ==== === =======






ARPU - is derived from total earned subscriber revenue, net advertising revenue and other subscription-related revenue, net of purchase price accounting adjustments, 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. Purchase price accounting adjustments include the recognition of deferred subscriber revenues not recognized in purchase price accounting associated with the Merger. ARPU is calculated as follows (in thousands, except for subscriber and per subscriber amounts):




Unaudited
---------
For the Three Months
Ended March 31,
---------------------
2012 2011
---- ----

Subscriber revenue (GAAP) $700,242 $622,437
Add: net advertising revenue
(GAAP) 18,670 16,558
Add: other subscription-
related revenue (GAAP) 57,721 58,531
Add: purchase price accounting
adjustments 67 1,909
--- -----
$776,700 $699,435
======== ========

Daily weighted average number
of subscribers 21,990,863 20,233,144
========== ==========

ARPU $11.77 $11.52
====== ======




Free cash flow - is derived from cash flow provided by operating activities, capital expenditures and restricted and other investment activity. Free cash flow is calculated as follows (in thousands):




Unaudited
---------
For the Three Months
Ended March 31,
---------------------
2012 2011
---- ----

Cash Flow information
Net cash provided by operating
activities $39,948 $18,109
Net cash used in investing
activities (25,187) (34,983)
Net cash used in financing
activities (42,175) (136,122)
Free Cash Flow
Net cash provided by operating
activities $39,948 $18,109
Additions to property and
equipment (25,187) (34,983)
Free cash flow $14,761 $(16,874)
======= ========






Subscriber acquisition cost, per gross subscriber addition - or SAC, per gross subscriber addition, is derived from subscriber acquisition costs and margins from the sale of radios and accessories, excluding share-based payment expense and purchase price accounting adjustments, divided by the number of gross subscriber additions for the period. Purchase price accounting adjustments associated with the Merger include the elimination of the benefit of amortization of deferred credits on executory contracts recognized at the Merger date attributable to an OEM. SAC, per gross subscriber addition, is calculated as follows (in thousands, except for subscriber and per subscriber amounts):




Unaudited
---------
For the Three Months
Ended March 31,
---------------------
2012 2011
---- ----

Subscriber acquisition costs
(GAAP) $116,121 $105,270
Less: margin from direct sales
of radios and accessories
(GAAP) (11,147) (9,462)
Add: purchase price accounting
adjustments 24,085 21,656
------ ------
$129,059 $117,464
======== ========

Gross subscriber additions 2,161,693 2,052,367
========= =========

SAC, per gross subscriber
addition $60 $57
=== ===




About Sirius XM Radio



Sirius XM Radio is America's satellite radio company. SiriusXM broadcasts more than 135 satellite radio channels of commercial-free music, and premier sports, news, talk, entertainment, traffic, weather, and data services to over 22 million subscribers. SiriusXM offers an array of content from many of the biggest names in entertainment, as well as from professional sports leagues, major colleges, and national news and talk providers.

SiriusXM programming is available on more than 800 devices, including pre-installed and after-market radios in cars, trucks, boats and aircraft, smartphones and mobile devices, and consumer electronics products for homes and offices. SiriusXM programming is also available at siriusxm.com, and on Apple, BlackBerry and Android-powered mobile devices.

SiriusXM has arrangements with every major automaker and its radio products are available for sale at shop.siriusxm.com as well as retail locations nationwide.



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 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 statements: our competitive position versus other forms of audio entertainment; our dependence upon automakers; general economic conditions; failure of our satellites, which, in most cases, are not insured; our ability to attract and retain subscribers at a profitable level; royalties we pay for music rights; the unfavorable outcome of pending or future litigation; failure of third parties to perform; and our substantial indebtedness. 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, 2011, 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.



Follow SiriusXM on Twitter or like the SiriusXM page on Facebook.



E - SIRI

Contact Information for Investors and Financial Media:

Investors:

Hooper Stevens

212 901 6718
hooper.stevens@siriusxm.com

Media:

Patrick Reilly

212 901 6646
patrick.reilly@siriusxm.com

SOURCE Sirius XM Radio

Photo:http://photos.prnewswire.com/prnh/20101014/NY82093LOGO
http://photoarchive.ap.org/
Sirius XM Radio

Web Site: http://www.siriusxm.com


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