SiriusXM Reports First Quarter 2017 Results

NEW YORK, April 27, 2017

Net income totaled $207 million in the first quarter 2017, up 20% from $172 million in the first quarter 2016. Net income per diluted common share grew 28% to $0.04 in the first quarter 2017, compared to $0.03 in the first quarter 2016. Adjusted EBITDA grew 14% in the first quarter 2017 to a quarterly record $502 million, compared to $441 million in the first quarter 2016.

"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.

"We remain focused on delivering a bundle of compelling, timely and entertaining programming for subscribers who have come to expect the best in audio from SiriusXM," said Meyer. "We continue to air new voices from unique personalities, such as special series from Brooke Shields, comedic TV star Jim Parsons, André Leon Talley of Vogue fame, and a new daily show from Craig Ferguson. In the first quarter, we again hosted a series of special subscriber-only events, including a great live performance from Ed Sheeran in New York City and our special Music Lounge in South Beach Miami leading up to the Ultra Music Festival," added Meyer.

FIRST QUARTER 2017 HIGHLIGHTS

• SiriusXM Reaches 31.6 Million Subscribers. The company added 259,000 net new self-pay subscribers in the first quarter 2017 to end with over 26.2 million self-pay subscribers. Total net additions were 257,000 to end the quarter with approximately 31.6 million subscribers.
• Strong Quarterly Revenue and ARPU. First quarter revenue climbed 8% to a record $1.3 Billion. The growth was driven by a 5% increase in subscribers and a 2.3% increase in average revenue per user (ARPU) to $12.95.
• Record Adjusted EBITDA. Adjusted EBITDA in the first quarter of 2017 totaled $502 Million, a record high, and up 14% from $441 Million in the first quarter of 2016. Adjusted EBITDA margin was a record 38.7% in the first quarter of 2017, a 200 basis point increase from 36.7% in the first quarter 2016.
• Free Cash Flow of $249 Million. Free cash flow for the first quarter 2017 totaled $249 million, down 24% from $328 million in the first quarter 2016. The decline in free cash flow was due to payments for satellites, the effect of the legal settlement associated with pre-1972 sound recordings and a shift in timing of OEM payments and interest payments compared to the same period in 2016. Operating cash flow for the first quarter 2017 totaled $309 million, down 15% from the first quarter 2016. The decrease was primarily due to the shift in timing of OEM payments and interest payments and the settlement payment related to pre-1972 sound recordings.

"During the first quarter, we spent approximately $300 million to repurchase 62 million shares of our common stock. SiriusXM's average share count in the quarter declined by 6% from the first quarter of 2016 as a result of our share repurchase program. Additionally, we returned approximately $47 million in cash to our stockholders in the form of dividends in the quarter, bringing total capital returned to stockholders to approximately $350 million in the first quarter. Our debt to adjusted EBITDA was just 3.1 times, and we ended the first quarter with a cash balance of $230 million and undrawn revolver capacity of $1.2 billion," noted David Frear, Chief Financial Officer, SiriusXM.