Sirius XM Delivers More Records With Earnings

Sirius XM Holdings Inc. (NASDAQ: SIRI) has reported its first-quarter earnings results. Revenues rose by 11% to $998 million. Net income was $94 million, if you adjust for a Liberty Media Corp. (NASDAQ: LMCA) stock repurchase agreement, but its adjusted net income was up 46% to $121 million, versus $83 million a year ago. Earnings per share came in at $0.02 for the first quarter.

Thomson Reuters was calling for earnings to be $0.02 per share and for revenue to be $994.6 million.

Sirius XM’s adjusted EBITDA rose by 28% to a record $335 million. Subscribers reached a record 25.8 million, after 266,799 net adds. Another record was that its free cash flow rose by 56% to a first-quarter record of $223 million.

The big buyback news is that on Friday the company is scheduled to repurchase 93 million shares from Liberty Media for $340 million. This will bring the total share repurchases for the year to 158 million shares, for a total of $550 million, and will leave Sirius XM with some $1.7 billion remaining under its existing share buyback authorization.

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Sirius is also reiterating its 2014 guidance of net subscriber additions of revenue of more than $4.0 billion, roughly 1.25 million net subscriber additions, adjusted EBITDA of approximately $1.38 billion and free cash flow approaching $1.1 billion.

Chief Executive Officer Jim Meyer said:

SiriusXM performed ahead of our expectations in the first quarter, with 266,799 net subscriber additions including 173,480 self-pay net additions. For the ninth consecutive quarter we grew revenue at a double digit pace, and once again we set a new quarterly record for adjusted EBITDA and adjusted EBITDA margin. Free cash flow grew 56% compared to the prior year to a new first quarter record, and we resumed our stock repurchase program, helping to drive free cash flow per share up 64%.

Sirius XM shares closed at $3.17 on Wednesday, against a 52-week range of $3.00 to $4.18, and its stock is indicated only marginally higher after the report.

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