Sirius XM CEO Speaks at Media and Money Conference 28 comments
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Sirius XM Radio (SIRI) CEO Mel Karmazin spoke at the Media and Money Conference Tuesday, and while there was no “big” news, he did express confidence in the company going forward. With everyone focused on the negative aspects of the markets, Karmazin addressed the biggest perceived weights on Sirius XM Radio and pointed out that the company still has a very viable revenue stream going forward:
DEBT
Karmazin expressed confidence that Sirius XM Radio will be able to refinance the $1 billion in debt that comes due next year. The CEO has remained steadfast in this stance, even throughout the financial crisis that has had the credit markets in turmoil. Karmazin said the company has been working closely with all debt holders.
OEM CHANNEL
Karmazin stated that he anticipates hundreds of millions in revenue from the OEM channel despite weak auto sales. Using a “low-ball” figure of car sales at 12,000,000, he noted that this would still represent 6,000,000 installations that will help generate subscriber growth.
REVENUE
Karmazin is looking for $300 to $400 million in OEM channel revenue next year. In addition, the company derives revenue from the existing subscriber base through their service. Karmazin did not place figures on how the BEST OF programming or A-La-Carte would help the bottom line.
Overall, the CEO remains steadfast and confident in the company as they approach 2009. Investors, who have been beaten up in virtually any sector, may not yet express the same confidence until they see the Q3 and Q4 financials. Getting through 2008 with a good foundation will be important not only to the Street, but to the company as well.
Position - Long SIRI
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This article has 28 comments:
How was that mydogniles????? Need More????
I liked Mels comments today. He played it exactly as he should. We all know they've been in talks. I mean, that's a given!! They've got a deadline coming up. I assume no one here would assume Mel would just now be starting to strategize that detail. So he said what he needed to say today. Once those details are final, we'll get the news. Like cos1000 says, you have to let management do their thing. People would like more communication, but that's not prudent for any company to do--to discuss internal company business in the media. Be patient and it will come. This management team is not stupid. They know what they have, what they need to do and how to get it done. I haven't heard/seen this before but the last two days during Power Lunch on CNBC, they specifically addressed their Satrad listeners while on the air. There are all kinds of little things like that I see every day.
To build on cos1000...
As I've said, they will be a 10 y/o company next year with a proven solid track record, showing solid proof of growth and viability. Debt issues aside, their FY net sales and revenues for the previous 5 years are:
FY2007 FY2006 FY2005 FY2004 FY2003
922.07 M 637.24 M 242.24 M 66.85 M 12.87 M
From the the Q2 10Q six months ended was:
June 30, 2007 Ended June 30, 2008 $430,464 M $553,367 M / Cash of 220,133 M...
SIRI is just a growing company and has proven it for 10 years--period--while NEVER DEFAULTING and making all payments. They also have a good record on meeting or beating eps estimates and a great record of growing their core competency of relevant and intriguing content. Now with the new sub base, synergies, new growth potential of the new entity, solid OEM partners that virtually guarantees their revenue, etc... they have to be considered attractive to potential lenders. From what I've heard they're Fitch rated TrippleC due to their high debt. But when all things are considered, they don't look too bad and seem a great risk. Their rate will be higher no matter what, but just as long as it's as low as possible to make fiscal sense.
IMO, I agree with cos1000 that they should announce this new financing sometime in November either with earnings or on the call--which most likely will be a few weeks later, if at all possible. Be proactive with it, be ahead of the naysayer demise curve. That kind of news also gets them out of the media stockade and gets them much better press, which can only help branding, image and future sales while inviting new investor money and raising that market cap back up. Plus, our jobs will be easier not having to do so many beatdowns on idiots like Rick, Doug or all the rest!! (lol). Why the company is continually dogged by so many idiots amazes me. But it's our job to insert shoe up arse. As said before, for once I would invite one disbleliever to show me and this community one legitimate scrap of fact or evidence that supports their uneducated theories of bankruptcy, reverse splitting, defaulting, stock going to zero or any of the other spewed tripe. Thank you!
June 30, 2007
$430,464 M
June 30, 2008
$553,367 M / Cash of 220,133 M...
Sirius XM (SIRI) has laid off about 80 former XM employees based in the former XM headquarters in Washington, D.C., according to the Washington Post.
The Post says that the cuts included “many of the on-air voices and program directors of the service’s most popular music channels,” including the staff of its Decades channels - hits of the 40s, 50s, 60s, etc. - and its black music channels.
Sirius XM (SIRI) has laid off about 80 former XM employees based in the former XM headquarters in Washington, D.C., according to the Washington Post.
The Post says that the cuts included “many of the on-air voices and program directors of the service’s most popular music channels,” including the staff of its Decades channels - hits of the 40s, 50s, 60s, etc. - and its black music channels.
I feel like a "Short" with this strategy and it has me feeling unsettled.... The Dog won't look me in the eye right now.... and I understand..... we all gotta do what we gotta do ...... It just doesn't feel good.... The extra biscuit I through didn't do any good....
www.sec.gov/news/press...
The Commission's actions will apply to the securities of all public companies, including all companies in the financial sector. The actions are effective at 12:01 a.m. ET on Thursday, Sept. 18, 2008.
"These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling," said SEC Chairman Christopher Cox. "The Enforcement Division, the Office of Compliance Inspections and Examinations, and the Division of Trading and Markets will now have these weapons in their arsenal in their continuing battle to stop unlawful manipulation."
There is more in the article and additional rules that were adopted. The complete set of rule changes are located at the link above.
Thanks for the post. Hey, someone actually took my challenge. For that you get respect. However, your facts are not entirely valid. SIRI said this year they expect to go positive EBITDA by the end of '09. So you have to take them at their word. Sadly this merger and newly acquired debt has dogged them into this hole. Explain to me their stock price the last 5 years with no positive earnings. See? There's your proof that the P&L so often is not the main thing when it concerns public companies. Sure, it helps and is preferrable to be cash/debt positive--no one will deny that but many public companies are not and still maintain a respectable stock price due to belief in the company and their future. The fact is, that's what investing is all about. People invest mainly because of what MAY or what they EXPECT to happen sometime in the future--which ususally amounts to years. Hence growth and spec--which represent a whole lotta stocks.
However, all that is now changed regardless. The company has announced some things today that are very unhealthy. They appear to be throwing shareholders under the bus--which is not cool and something I never would have fathomed from Mel. I'm disappointed and will show the company that. Maybe in the midst of a global financial meltdown, there was no choice and which no one could have thought would get so severe. But now the call has been made. I still maintain that in the absence of this current economic climate, this debt of theirs would already be out of the way and the stock back on it's prior course somewhat. Didn't happen that way though--it's been a perfect storm not in our favor.