-
Record Total Subscribers of 2,529,800
-
Revenue of $74.5 million
-
Adjusted EBITDA** of $22.7 million, up 50.6% year-over-year
-
Refinanced existing 9.75% Senior Notes with new 5.625% Senior Notes.
-
Declared $88.3 million in ongoing and special dividends.
TORONTO, July 14, 2014 /CNW/ - Sirius XM Canada Holdings Inc. ("SiriusXM
Canada" or the "Company") (TSX: XSR), parent of Sirius XM Canada Inc.,
today released unaudited financial results for the quarter ended May
31, 2014 (Q3 FY2014) prepared in accordance with International
Financial Reporting Standards (IFRS). A summary of IFRS financial results for Q3 FY2014 is attached1. All results are reported in Canadian dollars unless otherwise stated.
Q3 FY2014 Highlights
-
Surpassed 2.5 million total subscribers. Total subscriber growth was
142,200, compared to 121,900 in Q3 FY2013
-
Adjusted EBITDA increased 50.6% to $22.7 million from $15.1 million in
Q3 FY2013. This includes the impact of OEM contract renewals described
below
-
Net loss was $4.9 million, which included the impact of the one-time
after-tax debt refinancing charge and the OEM contract renewals
described below. Excluding those special items, Q3 FY2014 net income
was $4.0 million compared to $0.8 million in Q3 FY2013
-
Refinanced long term debt at a substantially lower interest rate,
resulting in significant interest expense savings
-
Declared a special cash dividend of $75 million ($0.585 per class A
share) and a quarterly dividend of $13.4 million ($0.105 per class A
share), totaling $88.3 million in shareholder dividends
-
Renewed long-term OEM agreements with Ford and Honda
-
Expanded the number of franchise dealers in our pre-owned vehicle
program to 1,400, and established partnerships with AMVOQ and CarProof
to drive awareness and adoption of our pre-owned vehicle offering
Year-to-date FY2014 Financial Highlights
-
Revenue grew 6.2% to $226.4 million from $213.2 million in the same
period in FY2013. This includes the impact of OEM contract renewals
described below
-
Adjusted EBITDA increased 19.7% to $62.4 million from $52.1 million in
the same period in FY2013. This includes the impact of OEM contract
renewals described below
-
Net Income was $3.1 million, which included the impact of the one-time
after-tax debt refinancing charge and the OEM contract renewals
described below. Excluding those special items, year-to-date FY2014 net
income was $15.3 million compared to $8.1 million in the same period in
FY2013
-
Generated $53.9 million in cash before investing activities, compared to
$56.2 million in the same period in FY2013. This excludes the impact of
the debt refinancing charge
"The third quarter was an exceptionally busy and exciting time for
SiriusXM Canada. In Q3, we reached a milestone of 2.5 million
subscribers. We renewed several OEM agreements on beneficial terms,
declared dividends totaling $88.3 million, including a $75 million
special dividend, refinanced our long-term debt obligation at a
substantially lower rate, obtained a $35 million credit facility to
bolster the Company's liquidity reserves and signed several partnership
agreements in the used vehicle segment of our business," said Mark
Redmond, President and CEO, SiriusXM Canada. "Increasing our subscriber
base, holding the line on costs and growing cash flow, remain our top
priorities, and during the quarter we were successful in these areas.
We remain well positioned for future growth and view the OEM renewals
during the quarter as clear evidence of the strong value they ascribe
to our service."
Financial and Operational Summary
Below, the Company has provided certain non-GAAP measures and industry
metrics. These figures are subject to the qualification and assumptions
set out in the notes to such results.
|
|
|
|
|
|
|
|
|
|
|
|
Financial *
|
|
Q3 FY2014
|
|
|
Q3 FY2013
|
|
|
YTD FY2014
|
|
|
YTD FY2013
|
|
|
(ended May 31, 2014)
|
|
|
(ended May 31, 2013)
|
|
|
(ended May 31, 2014)
|
|
|
(ended May 31, 2013)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
Total Revenue
|
|
$74,477
|
|
|
$73,582
|
|
|
$226,379
|
|
|
$213,162
|
Adjusted EBITDA**
|
|
$22,711
|
|
|
$15,083
|
|
|
$62,432
|
|
|
$52,152
|
Net Income (loss)
|
|
($4,860)
|
|
|
$776
|
|
|
$3,054
|
|
|
$8,113
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating*
|
|
|
|
|
|
|
|
|
|
|
|
Self-Paying Subscribers
|
|
1,797
|
|
|
1,664
|
|
|
1,797
|
|
|
1,664
|
Total Subscribers
|
|
2,530
|
|
|
2,322
|
|
|
2,530
|
|
|
2,322
|
ARPU
|
|
$11.14
|
|
|
$11.88
|
|
|
$11.34
|
|
|
$11.62
|
Subscriber Acquisition Cost (SAC)
|
|
$33
|
|
|
$47
|
|
|
$38
|
|
|
$46
|
Cost Per Gross Addition (CPGA)
|
|
$56
|
|
|
$72
|
|
|
$63
|
|
|
$72
|
* All figures in the table above are in thousands except, ARPU, SAC and
CPGA and include the effects of contractual changes in Q3 and YTD
FY2014.
|
** Adjusted EBITDA is a non-GAAP measure. A reconciliation of operating
income to both EBITDA and Adjusted EBITDA is provided below.
|
"During the quarter we redeemed our 2018 Senior Notes and issued 2021
Senior Notes with a reduction in borrowing cost that will save the
Company millions of dollars over the term of the agreement with an
improved covenant package that provides the Company with a lot more
flexibility going forward," said Michael Washinushi, Chief Financial
Officer, SiriusXM Canada. "In the quarter, we also announced a special
dividend of approximately $75 million. This special dividend in
conjunction with the Company's ongoing quarterly dividend speaks to the
strong free cash flow generation of our subscription based business
model."
DEVELOPMENTS DURING THE QUARTER
Debt refinancing charge: The Company redeemed its 2018 Senior Notes and incurred, in aggregate,
$16.6 million pre-tax debt refinancing charge. SiriusXM Canada
subsequently issued 2021 Senior Notes at far more favorable interest
rates and much improved covenant package.
OEM contract renewals: The Company renewed agreements with several OEM partners on terms which
it believes were beneficial. Changes to revenues, subsidy and revenue
share rates with certain agreements, were applied retroactively to the
beginning of SiriusXM Canada's current fiscal year and are fully
reflected in Q3 FY2014's results. As a result, certain line items in
the Company's Q3 FY2014 financial statements and its reported financial
metrics will not be directly comparable to the same line items and
metrics in Q3 FY2013. The table below illustrates the impact of these
adjustments due to OEM contract renewals to the Q3 FY2014 financial
results relative to the prior year periods.
Table: Impact of Adjustments due to OEM Contract Renewals and Debt
Refinancing Charge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in ($000's)
|
|
|
As
Reported
|
|
|
OEM
Contract
Adjustments
|
|
Refinancing
Charge
|
|
Q3 2014
Normalized
|
|
|
|
Q3
2013
|
|
|
Change
|
|
|
%
|
Revenue
|
|
|
74,477
|
|
|
1,502
|
|
-
|
|
75,979
|
|
|
|
73,582
|
|
|
2,397
|
|
|
3.3%
|
Operating Costs
|
|
|
52,540
|
|
|
6,126
|
|
-
|
|
58,666
|
|
|
|
59,061
|
|
|
395
|
|
|
0.7%
|
EBITDA
|
|
|
21,937
|
|
|
(4,624)
|
|
-
|
|
17,313
|
|
|
|
14,521
|
|
|
2,792
|
|
|
19.2%
|
Adjusted EBITDA
|
|
|
22,711
|
|
|
(4,624)
|
|
|
|
18,088
|
|
|
|
15,083
|
|
|
3,005
|
|
|
19.9%
|
Depreciation and amortization
|
|
|
7,731
|
|
|
-
|
|
-
|
|
7,731
|
|
|
|
9,374
|
|
|
1,643
|
|
|
21.3%
|
Finance costs, net
|
|
|
20,536
|
|
|
-
|
|
(16,636)
|
|
3,900
|
|
|
|
3,893
|
|
|
(7)
|
|
|
-0.2%
|
Income tax expense (recovery)
|
|
|
(1,471)
|
|
|
(1,225)
|
|
4,409
|
|
1,712
|
|
|
|
477
|
|
|
(1,235)
|
|
|
-72.1%
|
Net Income (loss)
|
|
|
(4,860)
|
|
|
(3,398)
|
|
12,227
|
|
3,970
|
|
|
|
776
|
|
|
3,194
|
|
|
411.5%
|
Q3 and YTD FY2014 Results Financial Review
For Q3 FY2014 revenue would have been $76.0 million (increase of 3.3%)
prior to the change in OEM contract accounting. In light of these
changes revenue was $74.5 million, up $0.9 million, or 1.2%, from $73.6
million for the same period in 2013. The year-over-year increase was
due primarily to an increase in the number of subscribers offset by
effect on revenue due to change in OEM contacts and lower ARPU. YTD
FY2014, revenue was $226.4 million, up $13.2 million, or 6.2% from
$213.2 million for the same period in FY2013. Q3 FY2014 ARPU was
$11.14, down from $11.88 in the same period in FY2013. Excluding the
adjustments due to OEM contracts of $1.5 million to revenue, ARPU was
$11.37 in the quarter representing a decrease of 4.2%. ARPU for YTD
FY2014 was $11.34 compared to $11.62 for the same period in FY2013.
Q3 FY2014 Adjusted EBITDA improved to $22.7 million, representing a
50.6% increase, or $7.6 million improvement, from Adjusted EBITDA of
$15.1 million in Q3 FY2013. The year-over-year increase was a result of
the Company's top-line growth along with change in OEM contracts.
Excluding adjustments due to OEM contracts to revenue and expenses of
$4.6 million, Adjusted EBITDA increased by $3.0 million or 19.9% to
$18.1 million in the quarter. YTD FY2014 Adjusted EBITDA was $62.4
million, an increase of 19.7%, or $10.3 million, from $52.2 million for
the same period in FY2013.
SAC was $33 in Q3 FY2014 down from $47 in Q3 FY2013. The decrease for
the quarter was due primarily to decrease in subsidy costs as a result
of changes in contractual terms with OEM partners and due to an
increase in gross additions predominantly from the used vehicle
channel. Excluding the adjustments due to OEM contracts to subsidy
costs of $2.1 million SAC decreased to $40 from $47 in the same period
prior year. SAC for YTD FY2014 was $38, down from $46 for the same
period in FY2013.
CPGA was $56 in Q3 FY2014 down from $72 in Q3 FY2013 due to lower SAC
and higher gross additions. Excluding the adjustments due to OEM
contracts to subsidy costs of $2.1 million, CPGA decreased to $63 from
$72 in the same period prior year. CPGA for YTD FY2014 was $63, down
from $72 for the same period in FY2013 due to lower SAC and higher
gross additions.
In Q3 FY2014, the Company generated $21.2 million in cash before paying
$10.4 million in call premium for early repayment of debt and using
$4.2 million of cash in investing activities, and generated $51.4
million of cash in financing activities as a result of refinancing its
existing debt. After these adjustments, the Company generated $6.6
million in cash for the quarter. The Company generated $12.7 million in
cash in Q3 FY2014 before paying $10.4 million in call premium,
resulting in a free cash flow of $2.3 million. Comparatively, the
Company generated $13.9 million of cash before using $0.3 million of
cash in investing activities and used $13.5 million of cash in
financing activities in Q3 FY2013. The Company generated $13.3 million
in free cash flow in Q3 FY2013.
YTD FY2014, the Company generated $53.9 million in cash before paying
$10.4 million in call premium for early repayment of debt and using
$8.1 million of cash in investing activities resulting in cash increase
of $35.4 million before gaining $27.2 million of cash in financing
activities. YTD FY2014, the Company generated $35.4 million in cash
before paying $10.4 million in call premium, resulting in a free cash
flow of $25.0 million. YTD FY2013, the Company generated $56.2 million
of cash before using $10.8 million of cash in investing activities and
used $39.4 million of cash in financing activities. YTD FY2013, the
Company generated $39.9 million in free cash flow.
As at May 31, 2014, SiriusXM Canada had total cash and cash equivalents
and short term investments of $101.5 million, compared to $47.8 million
as at February 28, 2014.
Conference Call and Webcast Details
SiriusXM Canada will hold a conference call to discuss the Company's Q3
FY2014 results on Monday, July 14, 2014 at 5.00 p.m. ET. All interested
parties can join the call by dialing 647-427-7450, or 1-888-231-8191.
Please dial-in 15 minutes prior to the call to secure a line. The
conference call will be archived for replay until Monday, July 21, 2014
at midnight. To access the archived conference call, please dial
416-849-0833, or 1-855-859-2056 and enter the reservation code
63080482. A live audio webcast of the conference call will be available
at http://www.siriusxm.ca and www.newswire.ca. Please connect at least 15 minutes prior to the conference call to
ensure adequate time for any software download that may be required to
join the webcast. An archived replay of the webcast will be available
for 365 days at www.newswire.ca.
Reconciliations
The following is a reconciliation of EBITDA and Adjusted EBITDA to
Operating Income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In $000's)
|
|
|
|
|
|
Q3 FY2014
|
|
|
Q3 FY2013
|
|
|
YTD FY2014
|
|
|
YTD FY2013
|
|
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
|
14,206
|
|
|
5,147
|
|
|
33,360
|
|
|
23,603
|
Depreciation & Amortization
|
|
|
|
|
|
7,731
|
|
|
9,374
|
|
|
26,890
|
|
|
26,511
|
EBITDA
|
|
|
|
|
|
21,937
|
|
|
14,521
|
|
|
60,250
|
|
|
50,114
|
Stock based compensation
|
|
|
|
|
|
759
|
|
|
526
|
|
|
2,119
|
|
|
1,858
|
Fair value adjustments*
|
|
|
|
|
|
16
|
|
|
35
|
|
|
63
|
|
|
180
|
Adjusted EBITDA
|
|
|
|
|
|
22,711
|
|
|
15,083
|
|
|
62,432
|
|
|
52,152
|
* Fair value adjustment relates to reduction in revenue due to valuation
of deferred revenue as per purchase price accounting
|
Please see the Company's Management Discussion & Analysis filed July 14,
2014 for more details on the Company's Q3 FY2014 results. The non-GAAP
measures used in this press release should be used in addition to, but
not as a substitute for, the analysis provided in the unaudited
consolidated statement of operations and comprehensive income. Please
see the Company's Management Discussion & Analysis filed July 14, 2014
for complete definition of non-GAAP measures.
Forward-Looking Statements
Certain statements included above may be forward-looking in nature. Such
statements can be identified by the use of forward-looking terminology
such as "expects," "may," "will," "should," "intend," "plan," or
"anticipates" or the negative thereof or comparable terminology, or by
discussions of strategy. Forward-looking statements include estimates,
plans, expectations, opinions, forecasts, projections, targets,
guidance, or other statements that are not statements of fact,
including with respect to the payment of dividends in the future and
future performance. Although SiriusXM Canada believes that the
expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove
to have been correct, including with respect to the ability of the
Company to pay dividends in the future, the redemption of Sirius XM
Canada's 5.625% Senior Unsecured Notes, and the terms, timing and
conditions of any refinancing of such notes. SiriusXM Canada's
forward-looking statements are expressly qualified in their entirety by
this cautionary statement. SiriusXM Canada makes no commitment to
revise or update any forward-looking statements in order to reflect
events or circumstances after the date any such statement is made,
except as required by applicable law. Additional information
identifying risks and uncertainties is contained in Sirius XM Canada
Holdings Inc.'s filings with the Canadian securities regulators,
available at www.sedar.com.
About SiriusXM Canada
Sirius XM Canada Holdings Inc. (TSX: XSR) operates as SiriusXM Canada.
SiriusXM Canada, with approximately 2.5 million subscribers, is one of
the country's leading audio entertainment company and broadcasts more
than 120 satellite radio channels featuring premier sports, news, talk,
entertainment and commercial-free music. SiriusXM Canada offers an
array of content from the most recognized news and entertainment brands
as well as every major sport including the NHL, NFL and MLB.
SiriusXM programming is available on a variety of devices including
pre-installed and after-market radios in cars, trucks and boats,
smartphones and mobile devices, and consumer electronics products for
homes and offices. SiriusXM programming is also available online at www.siriusxm.ca and on Apple and Android-powered mobile devices.
SiriusXM Canada has partnerships with every major automaker and its
radio products are available at more than 2,500 retail locations
nationwide. To find out more about SiriusXM Canada (TSX: XSR), visit
our website at www.siriusxm.ca.
CONSOLIDATED INTERIM BALANCE SHEETS
(Unaudited)
|
At
|
|
|
|
|
|
|
|
|
|
(Canadian dollars)
|
|
|
|
|
|
May 31, 2014
|
|
|
August 31, 2013
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
98,455,400
|
|
|
44,078,584
|
Short-term investments
|
|
|
|
|
|
3,000,468
|
|
|
5,157,798
|
Accounts receivable
|
|
|
|
|
|
8,938,294
|
|
|
13,359,446
|
Prepaid expenses and other
|
|
|
|
|
|
6,223,462
|
|
|
6,778,736
|
Inventory
|
|
|
|
|
|
583,928
|
|
|
234,349
|
Total current assets
|
|
|
|
|
|
117,201,552
|
|
|
69,608,913
|
Long-term prepaid expenses
|
|
|
|
|
|
272,419
|
|
|
100,157
|
Property and equipment
|
|
|
|
|
|
4,605,429
|
|
|
5,979,911
|
Intangible assets
|
|
|
|
|
|
137,801,032
|
|
|
152,217,165
|
Deferred tax assets
|
|
|
|
|
|
52,584,598
|
|
|
54,483,616
|
Goodwill
|
|
|
|
|
|
96,732,525
|
|
|
96,732,525
|
Total assets
|
|
|
|
|
|
409,197,555
|
|
|
379,122,287
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
|
|
|
|
49,041,937
|
|
|
47,145,257
|
Due to related parties
|
|
|
|
|
|
7,048,771
|
|
|
9,620,750
|
Interest payable
|
|
|
|
|
|
1,153,253
|
|
|
2,704,449
|
Current portion of deferred revenue
|
|
|
|
|
|
141,616,830
|
|
|
144,885,091
|
Dividends Payable
|
|
|
|
|
|
74,879,943
|
|
|
—
|
Provisions
|
|
|
|
|
|
443,373
|
|
|
1,327,974
|
Total current liabilities
|
|
|
|
|
|
274,184,107
|
|
|
205,683,521
|
Deferred revenue
|
|
|
|
|
|
15,269,282
|
|
|
17,105,210
|
Other long-term liabilities
|
|
|
|
|
|
1,443,907
|
|
|
1,669,229
|
Due to related parties
|
|
|
|
|
|
1,410,298
|
|
|
2,390,608
|
Long-term debt
|
|
|
|
|
|
195,326,202
|
|
|
143,707,194
|
Provisions
|
|
|
|
|
|
367,206
|
|
|
323,112
|
Total liabilities
|
|
|
|
|
|
488,001,002
|
|
|
370,878,874
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity (deficiency)
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
|
|
|
176,646,017
|
|
|
151,794,596
|
Contributed surplus
|
|
|
|
|
|
5,693,941
|
|
|
6,161,440
|
Accumulated deficit
|
|
|
|
|
|
(261,143,405)
|
|
|
(149,712,623)
|
Total shareholders' equity (deficiency)
|
|
|
|
|
|
(78,803,447)
|
|
|
8,243,413
|
Total liabilities and shareholders' equity (deficiency)
|
|
|
|
|
|
409,197,555
|
|
|
379,122,287
|
|
|
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
(Unaudited)
|
(Canadian dollars)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
|
May 31, 2014
|
|
|
May 31, 2013
|
|
May 31, 2014
|
|
|
May 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
74,477,058
|
|
|
73,581,631
|
|
226,379,214
|
|
|
213,162,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
|
|
|
|
52,540,334
|
|
|
59,060,543
|
|
166,129,072
|
|
|
163,047,823
|
|
Depreciation and amortization
|
|
|
|
7,731,012
|
|
|
9,374,461
|
|
26,890,314
|
|
|
26,511,057
|
Operating income
|
|
|
|
14,205,712
|
|
|
5,146,627
|
|
33,359,828
|
|
|
23,603,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
344,160
|
|
|
170,248
|
|
689,203
|
|
|
511,302
|
|
Interest expense
|
|
|
|
(4,288,516)
|
|
|
(3,997,601)
|
|
(12,208,655)
|
|
|
(11,897,897)
|
|
Loss on debt repayment
|
|
|
|
(13,195,918)
|
|
|
—
|
|
(13,195,918)
|
|
|
—
|
|
Foreign exchange gain (loss)
|
|
|
|
44,043
|
|
|
(65,986)
|
|
(251,416)
|
|
|
(530,496)
|
|
Change in fair value of embedded derivative
|
|
|
|
(3,440,000)
|
|
|
—
|
|
(3,440,000)
|
|
|
51,378
|
Finance costs, net
|
|
|
|
(20,536,231)
|
|
|
(3,893,339)
|
|
(28,406,786)
|
|
|
(11,865,713)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) before income tax
|
|
|
|
(6,330,519)
|
|
|
1,253,288
|
|
4,953,042
|
|
|
11,737,585
|
Income tax recovery (expense)
|
|
|
|
1,470,975
|
|
|
(477,169)
|
|
(1,899,018)
|
|
|
(3,624,553)
|
Net income (loss) and comprehensive income (loss)
|
|
|
|
(4,859,544)
|
|
|
776,119
|
|
3,054,024
|
|
|
8,113,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and fully diluted earnings (loss) per share
|
|
|
|
(0.04)
|
|
|
0.01
|
|
0.02
|
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(DEFICIENCY)
(Unaudited)
|
For the nine months ended
(Canadian dollars)
|
|
|
|
Share
Capital
|
|
|
Contributed
Surplus
|
|
|
Accumulated
deficit
|
|
|
Total
Shareholders'
Equity
(Deficiency)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 1, 2012
|
|
|
|
148,393,493
|
|
|
5,057,501
|
|
|
(108,196,240)
|
|
|
45,254,754
|
Net income for the period
|
|
|
|
—
|
|
|
—
|
|
|
8,113,032
|
|
|
8,113,032
|
Stock-based compensation
|
|
|
|
—
|
|
|
1,858,258
|
|
|
—
|
|
|
1,858,258
|
Dividends
|
|
|
|
—
|
|
|
—
|
|
|
(40,698,956)
|
|
|
(40,698,956)
|
Stock options exercised
|
|
|
|
2,046,569
|
|
|
(750,584)
|
|
|
—
|
|
|
1,295,985
|
Balance, May 31, 2013
|
|
|
|
150,440,062
|
|
|
6,165,175
|
|
|
(140,782,164)
|
|
|
15,823,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 1, 2013
|
|
|
|
151,794,596
|
|
|
6,161,440
|
|
|
(149,712,623)
|
|
|
8,243,413
|
Net income for the period
|
|
|
|
—
|
|
|
—
|
|
|
3,054,024
|
|
|
3,054,024
|
Stock-based compensation
|
|
|
|
—
|
|
|
2,118,645
|
|
|
—
|
|
|
2,118,645
|
Dividends
|
|
|
|
—
|
|
|
—
|
|
|
(114,484,806)
|
|
|
(114,484,806)
|
Stock options exercised
|
|
|
|
3,312,225
|
|
|
(1,046,948)
|
|
|
—
|
|
|
2,265,277
|
Conversion of convertible notes
|
|
|
|
21,539,196
|
|
|
(1,539,196)
|
|
|
—
|
|
|
20,000,000
|
Balance, May 31, 2014
|
|
|
|
176,646,017
|
|
|
5,693,941
|
|
|
(261,143,405)
|
|
|
(78,803,447)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
|
(Canadian dollars)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
|
May 31, 2014
|
|
|
May 31, 2013
|
|
May 31, 2014
|
|
|
May 31, 2013
|
Cash provided by (used in)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) for the period
|
|
|
|
(4,859,544)
|
|
|
776,119
|
|
3,054,024
|
|
|
8,113,032
|
Add (deduct) items not involving cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
|
7,283,501
|
|
|
8,871,200
|
|
24,471,997
|
|
|
24,854,334
|
|
Depreciation of property and equipment
|
|
|
|
447,511
|
|
|
503,261
|
|
2,418,317
|
|
|
1,656,723
|
|
Income tax (recovery) expense
|
|
|
|
(1,470,975)
|
|
|
477,169
|
|
1,899,018
|
|
|
3,624,553
|
|
Stock-based compensation
|
|
|
|
758,948
|
|
|
526,178
|
|
2,118,645
|
|
|
1,858,258
|
|
Accrued interest
|
|
|
|
(1,267,064)
|
|
|
3,587,543
|
|
(1,551,196)
|
|
|
3,570,077
|
|
Interest accretion
|
|
|
|
2,932,742
|
|
|
241,076
|
|
3,683,032
|
|
|
710,130
|
|
Change in fair value of embedded derivative
|
|
|
|
3,440,000
|
|
|
—
|
|
3,440,000
|
|
|
(51,378)
|
|
Foreign exchange (gain) loss
|
|
|
|
(70,858)
|
|
|
85,134
|
|
166,059
|
|
|
598,586
|
Net change in non-cash working capital and
deferred revenue related to operations
|
|
|
|
(628,775)
|
|
|
(1,476,316)
|
|
(4,349,898)
|
|
|
491,672
|
Cash provided by operating activities
|
|
|
|
6,565,486
|
|
|
13,591,364
|
|
35,349,998
|
|
|
45,425,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
|
(373,202)
|
|
|
(26,853)
|
|
(1,069,264)
|
|
|
(58,255)
|
Purchase of intangible assets
|
|
|
|
(3,854,743)
|
|
|
(309,794)
|
|
(9,248,383)
|
|
|
(5,439,024)
|
Purchase of short-term investments
|
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(5,306,295)
|
Maturity of short-term investments
|
|
|
|
—
|
|
|
—
|
|
2,063,000
|
|
|
—
|
Interest received on short-term investments
|
|
|
|
—
|
|
|
—
|
|
125,075
|
|
|
51,574
|
Cash used in investing activities
|
|
|
|
(4,227,945)
|
|
|
(336,647)
|
|
(8,129,572)
|
|
|
(10,752,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment of dividends
|
|
|
|
(13,429,490)
|
|
|
(14,264,286)
|
|
(39,604,863)
|
|
|
(40,698,956)
|
Proceeds from issuance of debt
|
|
|
|
200,000,000
|
|
|
—
|
|
200,000,000
|
|
|
—
|
Debt financing fees
|
|
|
|
(4,733,024)
|
|
|
—
|
|
(4,733,024)
|
|
|
—
|
Repayment of debt
|
|
|
|
(130,771,000)
|
|
|
—
|
|
(130,771,000)
|
|
|
—
|
Proceeds from exercise of stock options
|
|
|
|
319,972
|
|
|
715,339
|
|
2,265,277
|
|
|
1,295,985
|
Cash provided from (used in) financing
activities
|
|
|
|
51,386,458
|
|
|
(13,548,947)
|
|
27,156,390
|
|
|
(39,402,971)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents during the period
|
|
|
|
53,723,999
|
|
|
(294,230)
|
|
54,376,816
|
|
|
(4,728,984)
|
Cash and cash equivalents, beginning of period
|
|
|
|
44,731,401
|
|
|
46,599,995
|
|
44,078,584
|
|
|
51,034,749
|
Cash and cash equivalents, end of period
|
|
|
|
98,455,400
|
|
|
46,305,765
|
|
98,455,400
|
|
|
46,305,765
|
_________________________________
1 For a complete set of financial results including the accompanying
notes please refer to the Company's filings on www.sedar.com
SOURCE Sirius XM Canada Holdings Inc.