Sirius Xm (SIRI) has reported 20.08 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $207.07 million, or $0.04 a share in the quarter, compared with $172.44 million, or $0.03 a share for the same period last year. Revenue during the quarter grew 7.75 percent to $1,294.07 million from $1,201.01 million in the previous year period. Gross margin for the quarter expanded 143 basis points over the previous year period to 49.89 percent. Total expenses were 69.57 percent of quarterly revenues, down from 71 percent for the same period last year. This has led to an improvement of 144 basis points in operating margin to 30.43 percent.
Operating income for the quarter was $393.84 million, compared with $348.23 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $501.80 million compared with $441.37 million in the prior year period. At the same time, adjusted EBITDA margin improved 203 basis points in the quarter to 38.78 percent from 36.75 percent in the last year period.
"The year is off to a very solid start for our business, and we are on track to achieve our guidance for 2017. I'm particularly proud of the record adjusted EBITDA of more than half a billion dollars and record adjusted EBITDA margin of 38.7% we recorded in the first quarter,” said Jim Meyer, chief executive officer, SiriusXM. "We are also pleased to announce this morning the acquisition of Automatic Labs Inc., an exciting company focused on innovative products that broaden our array of connected vehicle services," added Meyer.
Sirius Xm projects revenue to be $5,300 million for financial year 2017.
Operating cash flow declinesSirius Xm has generated cash of $309.32 million from operating activities during the quarter, down 14.59 percent or $ 52.86 million, when compared with the last year period. The company has spent $60.39 million cash to meet investing activities during the quarter as against cash outgo of $33.97 million in the last year period.
The company has spent $232.39 million cash to carry out financing activities during the quarter as against cash outgo of $338.10 million in the last year period.
Cash and cash equivalents stood at $230.49 million as on Mar. 31, 2017, up 126.08 percent or $128.54 million from $101.95 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Sirius Xm was negative $1,900.95 million on Mar. 31, 2017 compared with negative $1,942.30 million on Mar. 31, 2016. Current ratio was at 0.26 as on Mar. 31, 2017, up from 0.22 on Mar. 31, 2016.
Days sales outstanding went down to 17 days for the quarter compared with 18 days for the same period last year.
Days inventory outstanding has decreased to 1 days for the quarter compared with 3 days for the previous year period.
Debt moves up marginally
Sirius Xm has witnessed an increase in total debt over the last one year. It stood at $5,987.85 million as on Mar. 31, 2017, up 4.78 percent or $273.03 million from $5,714.82 million on Mar. 31, 2016. Total debt was 75.49 percent of total assets as on Mar. 31, 2017, compared with 72.08 percent on Mar. 31, 2016. Interest coverage ratio improved to 4.82 for the quarter from 4.44 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
