SiriusXM (SIRI) has reported a 16.42 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $193.90 million, or $0.04 a share in the quarter, compared with $166.55 million, or $0.03 a share for the same period last year. Revenue during the quarter grew 9.23 percent to $1,277.65 million from $1,169.71 million in the previous year period. Gross margin for the quarter expanded 128 basis points over the previous year period to 50.85 percent. Total expenses were 69.30 percent of quarterly revenues, down from 69.94 percent for the same period last year. This has led to an improvement of 64 basis points in operating margin to 30.70 percent.
Operating income for the quarter was $392.18 million, compared with $351.58 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $491.89 million compared with $447.19 million in the prior year period. At the same time, adjusted EBITDA margin improved 27 basis points in the quarter to 38.50 percent from 38.23 percent in the last year period.
"SiriusXM’s performance in the third quarter was exemplary. We grew self-pay subscribers by 385,000 and turned in record quarterly high levels of revenue and adjusted EBITDA. Additionally, we attained our highest-ever ARPU and adjusted EBITDA margin and lowest-ever SAC per installation and customer service cost per subscriber. In short, our business is operating more efficiently than ever before, and we are pleased to increase our revenue and adjusted EBITDA guidance for the second time this year," said Jim Meyer, chief executive officer, SiriusXM.
For fiscal year 2016, Sirius Xm Radio expects revenue to be $5 million.
Operating cash flow improves significantly
SiriusXM has generated cash of $1,216.10 million from operating activities during the nine month period, up 34.98 percent or $315.15 million, when compared with the last year period. The company has spent $136.41 million cash to meet investing activities during the nine month period as against cash outgo of $94.91 million in the last year period.
The company has spent $619.15 million cash to carry out financing activities during the nine month period as against cash outgo of $801.22 million in the last year period.
Cash and cash equivalents stood at $572.38 million as on Sep. 30, 2016, up 275.22 percent or $419.84 million from $152.54 million on Sep. 30, 2015.
Working capital remains negative
Working capital of SiriusXM Radio was negative $1,860.60 million on Sep. 30, 2016 compared with negative $1,005.73 million on Sep. 30, 2015. Current ratio was at 0.36 as on Sep. 30, 2016, down from 0.58 on Sep. 30, 2015.
Days sales outstanding went down to 17 days for the quarter compared with 19 days for the same period last year.
Days inventory outstanding has decreased to 2 days for the quarter compared with 4 days for the previous year period.
Debt moves up
SiriusXM Radio has witnessed an increase in total debt over the last one year. It stood at $6,102.09 million as on Sep. 30, 2016, up 12.88 percent or $696.12 million from $5,405.97 million on Sep. 30, 2015. Total debt was 72.45 percent of total assets as on Sep. 30, 2016, compared with 66.41 percent on Sep. 30, 2015. Interest coverage ratio deteriorated to 4.40 for the quarter from 4.59 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: editor@irisindia.net
