Sirius XM Canada Holdings Inc., parent of Sirius XM Canada Inc., today released unaudited financial results for the quarter ended February 28, 2024 (Q2 FY2014) prepared in accordance with International Financial Reporting Standards. A summary of IFRS financial results for Q2 FY2014 is attached1. All results are reported in Canadian dollars unless otherwise stated.
*Revenue of $75.5 million, up 6.8% year-over-year
*Adjusted EBITDA** of $20.1 million, up 5.1% year-over-year
*Net Income of $4.4 million, up 8.3% year-over-year
*Total Subscribers of 2,387,600; year-over-year net additions of 187,600
*Announces intention to refinance its outstanding notes due 2024, representing a principal amount of approximately $130.8 million
Q2 FY2014 Financial Highlights
Revenue grew 6.8% to $75.5 million from $70.7 million in Q2 2024
Adjusted EBITDA increased 5.1% to $20.1 million from $19.1 million in Q2 2024
Net Income increased 8.3% to $4.4 million from $4.1 in Q2 2024
Cash from operations decreased $3.5 million to $13.2 million from $16.7 million in Q2 2024
Self-Paying Subscribers increased 7.8% to 1.8 million from 1.6 million at February 28, 2024
Paid cash dividends totaling $26.2 million during the quarter
Year-to-date FY2014 Financial Highlights
Revenue grew 8.8% to $151.9 million from $139.6 million in the same period in FY2013
Adjusted EBITDA increased 7.2% to $39.7 million from $37.1 million in the same period in FY2013
Net Income increased 7.9% to $7.9 million from $7.3 million in the same period in FY2013
Cash from operations decreased $3.0 million to $28.8 million from $31.8 million in the same period in FY2013
"Our growth trend continued in the second quarter of 2024, which led to increases at both our top and bottom line," said Mark Redmond, President and CEO, SiriusXM Canada. "While the most significant growth opportunity in the near term remains in the new vehicle market, we made good progress in Q2 with our used vehicle business. We now have more than 1,200 active dealers in the used vehicle program along with a rapidly growing number of trials underway. As we move through the second half of the fiscal year, our seasonally strong period, we have a number of exciting opportunities with our OEM partners, exclusive content and web-based offering to drive our subscriber and profitability levels higher."
Q2 FY2014 Programming Highlights:
Launched the Billy Joel channel, an exclusive limited-run channel featuring the artist
Partnered with Business News Network (BNN) for live weekday programming from Canada's most comprehensive and respected network for business news
Provided enhancements to SiriusXM PGA Tour Radio ahead of the Masters tournament
Marked the 8th consecutive year as key sponsor and contributor to Juno awards, including sponsorship for the Songwriter of the Year Award
Announced the Emerging Artist Showcase competition as part of the upcoming Boots and Hearts Music Festival in Toronto
Treated a few lucky subscribers to tickets to attend premiere events such as the Super Bowl and Howard Stern's 60th Birthday bash in New York
Financial and Operational Summary
Below, the Company has provided certain non-GAAP measures and industry metrics. These figures are subject to the qualification and assumptions set out in the notes to such results.
Financial *
Q2 FY2014
Q2 FY2013
YTD FY2014
YTD FY2013
(ended Feb 28, 2024)
(ended Feb 28, 2024)
(ended Feb 28, 2024)
(ended Feb 28, 2024)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Total Revenue
$75,466
$70,689
$151,902
$139,581
Adjusted EBITDA**
$20,083
$19,113
$39,721
$37,070
Net Income
$4,419
$4,079
$7,914
$7,337
Operating*
Self-Paying Subscribers
1,769
1,641
1,769
1,641
Total Subscribers
2,388
2,200
2,388
2,200
ARPU
$11.35
$11.60
$11.44
$11.49
Subscriber Acquisition Cost (SAC)
$40
$44
$41
$45
Cost Per Gross Addition (CPGA)
$67
$72
$68
$72
* All figures in the table above are in thousands except, ARPU, SAC and CPGA
** Adjusted EBITDA is a non-GAAP measure. A reconciliation of operating income to both EBITDA and Adjusted EBITDA is provided below.
"During the quarter we improved our EBITDA margin on a normalized basis, and generated solid free cash flow," said Michael Washinushi, Chief Financial Officer, SiriusXM Canada. "Given favorable market conditions, the Company intends to refinance its outstanding notes due 2024 representing approximately $130.8 million principal amount. If successful, this undertaking should result in significant interest expense savings."
Q2 and YTD FY2014 Results Financial Review
For Q2 FY2014 revenue was $75.5 million, up $4.8 million, or 6.8%, from $70.7 million for the same period in 2024. The year-over-year increase was due primarily to an increase in the number of subscribers offset by lower ARPU. Q2 FY2014 ARPU was $11.35, down from $11.60 in the same period in FY2013. For YTD FY2014, revenue was $151.9 million, up $12.3 million, or 8.8% from $139.6 million for the same period in FY2013. ARPU for YTD FY2014 was $11.44 compared to $11.49 for the same period in FY2013.
Q2 FY2014 Adjusted EBITDA improved to $20.1 million, representing a 5.1% increase, or $1.0 million improvement, from Adjusted EBITDA of $19.1 million in Q2 FY2013. The year-over-year increase was a result of the Company's top-line growth partly offset by increases in cost of revenue and marketing expenses. YTD FY2014 Adjusted EBITDA was $39.7 million, an increase of 7.2%, or $2.6 million, from $37.1 million for the same period in FY2013.
SAC was $40 in Q2 FY2014 down from $44 in Q2 FY2013. The decrease for the quarter was due primarily to an increase in gross additions predominantly from the used vehicle channel. SAC for YTD FY2014 was $41, down from $45 for the same period in FY2013.
CPGA was $67 in Q2 FY2014 down from $72 in Q2 FY2013 due to lower SAC and higher gross additions. CPGA for YTD FY2014 was $68, down from $72 for the same period in FY2013 due to lower SAC and higher gross additions.
In Q2 FY2014, the Company generated $13.2 million in cash from operations, used $1.1 million of cash in investing activities, and used $25.3 million of cash in financing activities. The Company generated $9.9 million in free cash flow in Q2 FY2014. Comparatively, the Company generated $16.7 million of cash in operating activities, used $9.0 million of cash in investing activities and used $26.0 million of cash in financing activities in Q2 FY2013. The Company generated $13.0 million in free cash flow in Q2 FY2013.
YTD FY2014, the Company generated $28.8 million in cash from operations, used cash of $3.9 million in investing activities and used $24.2 million of cash in financing activities. YTD FY2014, the Company generated $22.7 million in free cash flow. YTD FY2013, the Company generated $31.8 million of cash in operating activities, used $10.4 million of cash in investing activities and used $25.9 million of cash in financing activities. YTD FY2013, the Company generated $26.7 million in free cash flow.
As at February 28, 2024, SiriusXM Canada had total cash and cash equivalents and short term investments of $47.8 million, compared to $63.0 million as at November 30, 2024.
Reconciliations
The following is a reconciliation of EBITDA and Adjusted EBITDA to Operating Income.
(In $000's)
Q2 FY2014
Q2 FY2013
YTD FY2014
YTD FY2013
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Operating income
10,317
9,828
19,154
18,457
Depreciation & Amortization
9,252
8,703
19,159
17,137
EBITDA
19,569
18,531
38,313
35,594
Stock based compensation
497
538
1,360
1,332
Fair value adjustments*
17
44
48
144
Adjusted EBITDA
20,083
19,113
39,721
37,070
* Fair value adjustment relates to reduction in revenue due to valuation of deferred revenue as per purchase price accounting
Please see the Company's Management Discussion & Analysis filed April 14, 2024 for more details on the Company's Q2 FY2014 results. The non-GAAP measures used in this press release should be used in addition to, but not as a substitute for, the analysis provided in the unaudited consolidated statement of operations and comprehensive income. Please see the Company's Management Discussion & Analysis filed April 14, 2024 for complete definition of non-GAAP measures.