This excerpt taken from the SIRI 8-K filed May 2, 2006.
SIRIUS SATELLITE RADIO REPORTS STRONG
NEW YORK May 2, 2006 - SIRIUS Satellite Radio (NASDAQ: SIRI) today announced strong first quarter 2006 results including record market share of satellite radio net subscriber additions.
SIRIUS ended the first quarter with 4,077,747 subscribers, reflecting net subscriber additions of 761,187, a 149% increase in net additions from the year-ago quarter. For the second consecutive quarter, SIRIUS led the satellite radio industry in net subscriber additions.
First quarter 2006 revenue grew to $126.7 million, up 193% from $43.2 million in the year-ago quarter. Advertising revenue increased to a record $7.3 million, representing 53% of total satellite radio industry advertising revenue in the first quarter. Average monthly churn was 1.8%, in line with guidance. Subscriber acquisition costs (SAC) per gross addition were $113 for the first quarter, a 41% improvement over the year-ago quarter.
SIRIUS led the industry in the first quarter with the majority of satellite radio net additions, while achieving 64% share at retail and strong growth in our OEM channel. Based upon our growth we are pleased to be raising our subscriber guidance for 2006 to over 6.2 million and we continue to believe we could be free cash flow positive as early as the fourth quarter of 2006 and for the full year 2007, said Mel Karmazin, CEO of SIRIUS. We are also very excited about the launch of our first live wearable radio this summer and our plans to stream The Howard Stern Show via the Internet to SIRIUS subscribers by Fathers Day.
During the first quarter, SIRIUS added 534,958 net subscribers from the companys retail channel, a 169% increase from 198,558 net retail subscriber additions in the year-ago quarter. The company also added 225,343 net subscribers from its automotive OEM channel, 109% more than the 107,855 net automotive OEM subscriber additions in the year-ago quarter.
SIRIUS reported a net loss of ($458.5) million, or ($0.33) per share, for the first quarter of 2006, including a ($0.20) per share impact from equity charges, compared to a net
loss of ($193.6) million, or ($0.15) per share, in the year-ago quarter, including a ($0.03) per share impact from equity charges. The adjusted net loss per share, or net loss per share excluding equity charges, was ($0.13) in the first quarter 2006 as compared to an adjusted net loss per share of ($0.12) in the first quarter of 2005. (Refer to the reconciliation table of GAAP net loss per share to the adjusted net loss per share).
This was a great quarter on every front for SIRIUS, added Mel Karmazin. Non-cash equity charges were the primary reasons for our widening loss over last year and do not impact our free cash flow guidance or our very bright short and long term prospects.