- Company delivers record revenue and double-digit year-over-year growth in Adjusted EBITDA and free cash flow -
TORONTO, July 13, 2015 /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 its fiscal 2015 third quarter and year-to-date ("YTD") period ended May 31, 2015 prepared in accordance with International Financial Reporting Standards (IFRS). A summary of IFRS financial results for Q3 and YTD FY2015 is attached. All results are reported in Canadian dollars unless otherwise stated.
Q3 and YTD FY2015 Financial and Operating Metrics
The figures below include certain non-GAAP measures and industry metrics. These figures are subject to the qualification and assumptions set out in the Company's notes to such results.
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Financial1
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Q3 2015
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Q3 2014
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% Change
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YTD 2015
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YTD 2014
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% Change
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(May 31, 2015)
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(May 31, 2014)
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(May 31, 2015)
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(May 31, 2014)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Restated and
Normalized)
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(Restated and
Normalized)
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Revenue2
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83,095
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75,979
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9.4%
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242,166
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226,379
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7.0%
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Adjusted EBITDA3
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20,185
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18,257
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10.6%
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66,423
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66,823
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(0.6)%
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Net Income (loss)
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7,962
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(4,735)
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268.2%
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(9,153)
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6,281
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(245.7)%
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Normalized net Income4
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7,962
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4,094
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94.5%
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25,822
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18,508
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39.5%
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Free cash flow
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14,366
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12,749
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12.7%
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39,340
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35,444
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11.0%
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Operating1
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Self-Paying Subscribers
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1,869
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1,797
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4.0%
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1,869
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1,797
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4.0%
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Total Subscribers
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2,658
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2,530
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5.1%
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2,658
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2,530
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5.1%
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Self-Pay ARPU5
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$12.87
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$12.33
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4.4%
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$12.58
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$12.11
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3.9%
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Subscriber Acquisition Cost (SAC)
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$41
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$40
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2.5%
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$39
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$38
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2.6%
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Cost Per Gross Addition (CPGA)
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$67
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$63
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6.3%
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$65
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$63
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3.2%
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1All figures in the table above are in thousands except, ARPU, SAC and CPGA.
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2Includes a normalization adjustment to Q3 2014 related the renewal of certain OEM contracts. Please refer to the reconciliation tables below and the Company's MD&A for more detail.
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3Adjusted EBITDA is a non-GAAP measure. A reconciliation of income (loss) before taxes to both EBITDA and Adjusted EBITDA, including one-time impact of certain OEM contract renewals in Q3 2014 and a $15.9 million withholding tax in YTD 2015, is provided below.
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4Includes one-time adjustments for the impact of certain OEM contract renewals in Q3 2014 and a debt refinancing charge in Q3 2014 and YTD 2014 as well as a $15.9 million withholding tax expense and a $19.1 million, non-cash income tax expense for YTD 2015. Please refer to the reconciliation tables below and the Company's MD&A for more detail.
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5Self-Pay ARPU is derived from the total of earned subscription revenue from Self-Pay subscribers and the music royalty and regulatory fee and activation fees, divided by the monthly weighted average number of Self-Paying subscribers. Please see the Company's MD&A for a more detailed description.
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"We set a new revenue record in the quarter, fueled by further expansion of our subscriber base and improvements in self-pay ARPU," said Mark Redmond, CEO, SiriusXM Canada. "Our top-line growth more than offset our higher copyright fees, translating into double-digit year-over-year increases in Adjusted EBITDA and free cash flow. We achieved an important milestone in the quarter. We completed the unification of our Subscriber Management System, with related business rule alignments resulting in one-time deactivations of approximately 9,000. However, we are now positioned to provide improved levels of customer service, while also driving more effective and efficient subscriber acquisition, conversion and retention. Excluding these changes, net subscriber additions would have been 16,000."
Mr. Redmond added: "We saw strong subscriber net additions in June, keeping us confident that we are on-track to achieve 2015 net self-pay subscriber growth in the mid-single digits. Our competitive positioning in the Canadian audio entertainment market is unmatched. We have in-car and streaming offerings, vehicle OEM penetration rates in the high 60s and unrivaled content. We go beyond simple commercial-free music with our exclusive, talk, news, comedy and sports content. We firmly believe in our ability to deliver continued growth as well as a supportable dividend."
Key Factors Affecting Reported Results
For the Q3 2014 and YTD 2015 periods, there were one-time events that affected the Company's results. In Q3 2014, the Company redeemed $130.8 million outstanding 9.75% senior notes that were due 2018. This resulted in a total pre-tax debt refinancing charge of $16.6 million (after-tax - $12.2 million). In addition, in Q3 2014 the Company renewed agreements with two OEM partners. The changes to these contracts were applied retroactively from the beginning of fiscal 2014 and were fully reflected in the Q3 2014 financial results. As a result, $1.5 million in revenue, $4.1 million in revenue share and royalties and $2.1 million in subsidy costs from previous periods were reversed in Q3 2014.
For the YTD 2015 period, the company recognized a one-time, non-cash $19.1 million income tax expense and a $15.9 million withholding tax expense in Q2 2015 related to Canada Revenue Agency reassessments that the Company is currently disputing.
For the discussion below, the Company has compared normalized results as it believes this approach provides a more accurate depiction of its year-over-year performance. Please refer to the reconciliation tables below and the Company's MD&A for more detail.
Q3 and YTD FY2015 Results Financial Review
Revenue for Q3 2015 was $83.1 million, up 9.4%, or $7.1 million, from normalized revenue of $76.0 million in Q3 2014. The year-over-year improvement reflects growth in the Company's self-paying subscriber base and an increase in Self-Pay ARPU. Q3 FY2015 Self-Pay ARPU was $12.87, up 4.4% from $12.33 in Q3 FY2014. The year-over-year improvement in quarterly Self-Pay ARPU was driven by the Company's implementation of its increased Music Royalty and Regulatory Fee (MRF) on renewing subscribers. For YTD FY2015, revenue was $242.2 million, up $15.8 million, or 7.0% from $226.4 million for the same period in YTD FY2014. Self-Pay ARPU for YTD FY2015 was $12.58 compared to $12.11 for the same period in YTD FY2014.
Adjusted EBITDA, increased to $20.2 million in Q3 FY2015 from $18.3 million, excluding the impact of certain OEM contract renewals, in Q3 FY2014. This was a $1.9 million, or 10.6%, improvement compared to Q3 FY2014. The year-over-year increase was a result of revenue growth and marketing related cost savings, which were offset, in part, primarily by a higher cost of revenue due to an increase in the Company's copyright royalties. For YTD FY2015, Adjusted EBITDA, which excludes the one-time adjustment related to the withholding tax provision the Company took, was $66.4 million, a decrease of $0.4 million, or 0.6%, from $66.8 million for the same period in YTD FY2014.
The Company recorded net income of $8.0 million in Q3 FY2015, up $3.9 million, or 94.5%, compared to net income of $4.1 million in Q3 FY2014, after normalizing for the one-time after-tax debt refinancing charge and after-tax adjustments due to certain OEM contracts renewals. Excluding the one-time income tax expense and provision for withholding tax recorded in Q2 FY2015, the Company recorded a net income of $25.8 million in YTD FY2015. Net income was up $7.3 million, or 39.5%, compared to net income of $6.3 million in the same period of YTD FY2014, after normalizing the net income in YTD FY2014 for after-tax debt refinancing charge and after-tax adjustments due to certain OEM contracts renewals.
SAC was $41 in Q3 FY2015, up from $40 in Q3 FY2014, excluding the impact of OEM contract renewals. For YTD FY2015, SAC increased marginally to $39 in YTD FY2015 from $38 for the same period in YTD FY2014.
CPGA was $67 in Q3 FY2015, up from $63 in Q3 FY2014, excluding the impact of OEM contract renewals, reflecting higher SAC and marketing costs. For YTD FY2015, CPGA increased to $65 from $63 for the same period in YTD FY2014.
In Q3 FY2015, the Company generated $18.0 million in cash from operating activities, up $1.0 million, or 5.8%, from $17.0 million in cash from operating activities in Q3 FY2014, after excluding an early redemption premium of $10.4 million on debt refinancing in 2014. For YTD FY2015, the Company generated $52.6 million in cash from operating activities, up $6.9 million, or 15.0%, from $45.8 million in cash from operating activities for the same period in YTD FY2014.
The Company generated free cash flow of $14.4 million in Q3 FY2015, up $1.6 million, or 12.7%, from $12.7 million in Q3 FY2014 due to higher cash from operations and a $0.6 million decrease in capital spending as the Company completed the unification of its Subscriber Management System in April 2015. For YTD FY2015, the Company generated $39.3 million of free cash flow, up $3.9 million, or 11%, compared to $35.4 million in same period of YTD FY2014.
As at May 31, 2015, the Company had total cash and cash equivalents of $23.8 million compared to $22.5 million as at February 28, 2015. The increase is primarily due to cash flow from operating activities of $18.0 million offset by dividend payments of $13.5 million and capital expenditures of $3.6 million.
Conference Call and Webcast Details
SiriusXM Canada will hold a conference call to discuss the Company's Q3 FY2015 results on Tuesday, July 14, 2015 at 8:30 a.m. ET. All interested parties can join the call by dialing 647-427-7450, or 1-888-231-8191. Please dial-in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until Tuesday, July 21, 2015 at midnight. To access the archived conference call, please dial 416-849-0833, or 1-855-859-2056 and enter the reservation code 69174700. A live audio webcast of the conference call will be available at www.newswire.ca. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 365 days at www.newswire.ca.
Reconciliations
The following is a reconciliation of EBITDA and Adjusted EBITDA to Income (loss) before income taxes.
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Adjusted EBITDA: Reconciliation
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Three months ended May 31,
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Nine months ended May 31,
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In ($ 000's)
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2015
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2014
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2015
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2014
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Q3 2015
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Q3 2014
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YTD 2015
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YTD 2014
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(Restated)
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(Restated)
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Income (loss) before income taxes
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11,240
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(6,161)
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20,853
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9,344
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Interest expense & income
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3,085
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3,944
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9,141
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11,519
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Loss on debt repayment
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—
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16,636
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—
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16,636
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Foreign exchange loss
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(138)
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(44)
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51
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251
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Amortization
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5,290
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7,731
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17,422
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26,890
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EBITDA
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19,477
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22,106
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47,468
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64,641
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Withholding tax expense
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(113)
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—
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15,887
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—
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Stock-based compensation
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|
820
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759
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3,064
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2,119
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Fair value adjustments
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—
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16
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4
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63
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Adjusted EBITDA
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20,185
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22,881
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66,423
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66,823
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* Fair value adjustment relates to reduction in revenue due to valuation of deferred revenue as per purchase price accounting
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For complete definition of non-GAAP measures and for more details on the Company's Q2 FY2015 results, please see the Company's Management Discussion & Analysis filed July 13, 2015 which is incorporated herein by reference. 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 condensed consolidated interim financial statements for Q3 FY2015.
The tables below show the normalized quarterly financial results for the third quarter of 2014 and normalized year-to-date financial results for 2015 in comparison to 2014.
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Q3 2015
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Q3 2014
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Change
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in ($000's)
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As
Reported
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As
Reported
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OEM
Contracts
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Loss on
Debt
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Q3 2014
Normalized
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$
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%
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Revenue
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83,095
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|
74,477
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|
1,502
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—
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75,979
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|
7,116
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9.4%
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Operating costs
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63,730
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52,371
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6,126
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—
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58,497
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|
5,233
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8.9%
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Depreciation and amortization
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|
5,290
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7,731
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—
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—
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7,731
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(2,441)
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(31.6)%
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Operating income
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14,075
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|
14,375
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|
(4,624)
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—
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|
9,751
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|
4,323
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44.3%
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Withholding tax expense
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|
(113)
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—
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—
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—
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(113)
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—%
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Finance costs, net
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2,948
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|
20,536
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—
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(16,636)
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3,900
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(953)
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(24.4)%
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Income tax expense (recovery)
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|
3,277
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|
(1,426)
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|
(1,225)
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|
4,409
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|
1,757
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|
1,520
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86.5%
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Net income (loss)
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7,962
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|
(4,735)
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|
(3,398)
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|
12,227
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|
4,094
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|
3,869
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|
94.5%
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Add back:
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Finance costs, net
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2,948
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|
20,536
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|
—
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|
(16,636)
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|
3,900
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|
(953)
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(24.4)%
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Income tax expense (recovery)
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|
3,277
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|
(1,426)
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|
(1,225)
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|
4,409
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|
1,757
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|
1,520
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86.5%
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Depreciation and amortization
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|
5,290
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|
7,731
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—
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—
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7,731
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(2,441)
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(31.6)%
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EBITDA
|
|
19,477
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|
22,106
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(4,624)
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—
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17,482
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|
1,995
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|
11.4%
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Withholding tax expense
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|
(113)
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|
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|
|
—
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|
(113)
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—%
|
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Stock based compensation
|
|
820
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|
759
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|
—
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|
—
|
|
759
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|
61
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|
8.1%
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|
Fair value adjustments
|
|
—
|
|
16
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|
—
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|
—
|
|
16
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|
(16)
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|
9.9%
|
|
Adjusted EBITDA
|
|
20,185
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|
22,881
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|
(4,624)
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|
—
|
|
18,257
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|
1,928
|
|
10.6%
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|
|
|
|
|
|
|
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|
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Cash from operations
|
|
17,957
|
|
6,565
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|
—
|
|
10,411
|
|
16,977
|
|
980
|
|
5.8%
|
|
Free cash flow
|
|
14,366
|
|
2,338
|
|
—
|
|
10,411
|
|
12,749
|
|
1,617
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|
12.7%
|
|
|
|
|
|
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|
|
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|
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|
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|
|
YTD 2015
|
|
YTD 2014
|
|
Change
|
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in ($000's)
|
As Reported
|
CRA Tax
Reassessment
|
YTD 2015
Normalized
|
|
As
Reported
|
|
Loss on
Debt
|
|
YTD 2014
Normalized
|
|
$
|
|
%
|
|
Revenue
|
242,166
|
—
|
242,166
|
|
226,379
|
|
—
|
|
226,379
|
|
15,786
|
|
7.0%
|
|
Operating costs
|
178,810
|
—
|
178,810
|
|
161,739
|
|
—
|
|
161,739
|
|
17,072
|
|
10.6%
|
|
Depreciation and amortization
|
17,423
|
|
17,423
|
|
26,890
|
|
|
|
26,890
|
|
(9,468)
|
|
(35.2)%
|
|
Operating income
|
45,933
|
—
|
45,933
|
|
37,750
|
|
—
|
|
37,750
|
|
8,182
|
|
21.7%
|
|
Withholding tax expense
|
15,887
|
(15,887)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—%
|
|
Finance costs, net
|
9,192
|
—
|
9,192
|
|
28,407
|
|
(16,636)
|
|
11,771
|
|
(2,579)
|
|
(21.9)%
|
|
Income tax expense (recovery)
|
30,006
|
(19,088)
|
10,919
|
|
3,062
|
|
4,409
|
|
7,471
|
|
3,448
|
|
46.1%
|
|
Net income (loss)
|
(9,153)
|
34,975
|
25,822
|
|
6,281
|
|
12,227
|
|
18,508
|
|
7,313
|
|
39.5%
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs, net
|
9,192
|
—
|
9,192
|
|
28,407
|
|
(16,636)
|
|
11,771
|
|
(2,579)
|
|
(21.9)%
|
|
Income tax expense (recovery)
|
30,006
|
(19,088)
|
10,919
|
|
3,062
|
|
4,409
|
|
7,471
|
|
3,448
|
|
46.1%
|
|
Depreciation and amortization
|
17,422
|
—
|
17,422
|
|
26,890
|
|
—
|
|
26,890
|
|
(9,468)
|
|
(35.2)%
|
|
EBITDA
|
47,468
|
15,887
|
63,355
|
|
64,641
|
|
—
|
|
64,641
|
|
(1,285)
|
|
(2.0)%
|
|
Withholding tax expense
|
15,887
|
(15,887)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—%
|
|
Stock based compensation
|
3,064
|
—
|
3,064
|
|
2,119
|
|
—
|
|
2,119
|
|
945
|
|
44.6%
|
|
Fair value adjustments
|
4
|
—
|
4
|
|
63
|
|
—
|
|
63
|
|
(60)
|
|
(94.0)%
|
|
Adjusted EBITDA
|
66,423
|
—
|
66,423
|
|
66,823
|
|
—
|
|
66,823
|
|
(400)
|
|
(0.6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from operations
|
52,613
|
—
|
52,613
|
|
35,350
|
|
10,411
|
|
45,761
|
|
6,851
|
|
15.0%
|
|
Free cash flow
|
39,340
|
—
|
39,340
|
|
25,032
|
|
10,411
|
|
35,444
|
|
3,897
|
|
11.0%
|
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 more than 2.6 million subscribers, is 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, entertainment and major sports brands including the NHL, NFL, NBA, NASCAR, CNN, CBC, FOX, BBC, Howard Stern, Disney, Comedy Central and more.
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.
SiriusXM Canada has been designated one of Canada's 50 Best Managed Companies six years in a row and 2013 and 2014 rankings in PROFIT 500's list of Canada's Fastest Growing Companies.
Join SiriusXM Canada on Facebook at facebook.com/siriusxmcanada, on Twitter at twitter.com/siriusxmcanada and on Youtube at youtube.com/siriusxmcanada.
|
CONSOLIDATED INTERIM BALANCE SHEETS
|
|
(Unaudited)
|
|
At
|
|
|
|
May 31,
|
|
|
August 31,
|
|
(Canadian dollars)
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
23,754,313
|
|
|
23,868,423
|
|
Accounts receivable
|
|
|
|
12,151,746
|
|
|
13,454,489
|
|
Prepaid expenses and other
|
|
|
|
6,054,930
|
|
|
4,251,306
|
|
Inventory
|
|
|
|
34,652
|
|
|
559,081
|
|
Total current assets
|
|
|
|
41,995,641
|
|
|
42,133,299
|
|
Long-term prepaid expenses
|
|
|
|
372,087
|
|
|
456,039
|
|
Property and equipment
|
|
|
|
4,200,405
|
|
|
4,508,188
|
|
Intangible assets
|
|
|
|
133,176,854
|
|
|
134,971,363
|
|
Deferred tax assets
|
|
|
|
20,585,720
|
|
|
50,592,132
|
|
Goodwill
|
|
|
|
96,732,525
|
|
|
96,732,525
|
|
Total assets
|
|
|
|
297,063,232
|
|
|
329,393,546
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
|
|
56,450,541
|
|
|
44,121,466
|
|
Due to related parties
|
|
|
|
13,373,229
|
|
|
9,146,135
|
|
Interest payable
|
|
|
|
1,153,254
|
|
|
3,965,753
|
|
Deferred revenue
|
|
|
|
147,981,723
|
|
|
146,110,758
|
|
Provisions
|
|
|
|
947,408
|
|
|
505,783
|
|
Total current liabilities
|
|
|
|
219,906,155
|
|
|
203,849,895
|
|
Deferred revenue
|
|
|
|
12,083,119
|
|
|
15,075,749
|
|
Other long-term liabilities
|
|
|
|
653,581
|
|
|
533,049
|
|
Due to related parties
|
|
|
|
1,208,332
|
|
|
1,323,965
|
|
Long-term debt
|
|
|
|
195,889,976
|
|
|
195,463,860
|
|
Provisions
|
|
|
|
92,987
|
|
|
374,240
|
|
Total liabilities
|
|
|
|
429,834,150
|
|
|
416,620,758
|
|
|
|
|
|
|
|
|
|
Shareholders' deficiency
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
|
178,432,309
|
|
|
176,862,133
|
|
Contributed surplus
|
|
|
|
8,469,128
|
|
|
6,067,419
|
|
Accumulated deficit
|
|
|
|
(319,672,355)
|
|
|
(270,156,764)
|
|
Total shareholders' deficiency
|
|
|
|
(132,770,918)
|
|
|
(87,227,212)
|
|
Total liabilities and shareholders' deficiency
|
|
|
|
297,063,232
|
|
|
329,393,546
|
|
See accompanying notes
|
|
|
|
|
|
|
|
|
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
|
|
May 31,
|
|
May 31, 2014
|
|
May 31,
|
|
May 31, 2014
|
|
(Canadian dollars)
|
|
|
|
2015
|
|
(Restated)
|
|
2015
|
|
(Restated)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
83,095,034
|
|
74,477,058
|
|
242,165,542
|
|
226,379,214
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
|
|
|
|
63,730,101
|
|
52,370,965
|
|
178,810,301
|
|
161,738,581
|
|
Depreciation and amortization
|
|
|
|
5,290,203
|
|
7,731,012
|
|
17,422,498
|
|
26,890,314
|
|
Operating income
|
|
|
|
14,074,730
|
|
14,375,081
|
|
45,932,743
|
|
37,750,319
|
|
|
|
|
|
|
|
|
|
|
|
|
Withholding tax recovery (expense)
|
|
|
|
112,507
|
|
—
|
|
(15,887,493)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs, net
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
56,182
|
|
344,160
|
|
229,208
|
|
689,203
|
|
Interest expense
|
|
|
|
(3,141,466)
|
|
(4,288,516)
|
|
(9,370,449)
|
|
(12,208,655)
|
|
Loss on debt repayment
|
|
|
|
—
|
|
(13,195,918)
|
|
—
|
|
(13,195,918)
|
|
Change in fair value of embedded derivative
|
|
|
|
—
|
|
(3,440,000)
|
|
—
|
|
(3,440,000)
|
|
Foreign exchange gain (loss)
|
|
|
|
137,724
|
|
44,043
|
|
(50,924)
|
|
(251,416)
|
|
Finance costs, net
|
|
|
|
(2,947,560)
|
|
(20,536,231)
|
|
(9,192,165)
|
|
(28,406,786)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) before income tax
|
|
|
|
11,239,677
|
|
(6,161,150)
|
|
20,853,085
|
|
9,343,533
|
|
Income tax recovery (expense)
|
|
|
|
(3,277,239)
|
|
1,426,091
|
|
(30,006,412)
|
|
(3,062,499)
|
|
Net income (loss) and comprehensive income (loss)
|
|
|
|
7,962,438
|
|
(4,735,059)
|
|
(9,153,327)
|
|
6,281,034
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share - basic and diluted
|
|
|
|
0.06
|
|
(0.04)
|
|
(0.07)
|
|
0.05
|
|
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
For the nine months ended,
|
|
|
Share
|
|
Contributed
|
|
Accumulated
|
|
Shareholders'
|
|
(Canadian dollars)
|
|
|
Capital
|
|
Surplus
|
|
Deficit
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 1 , 2013
|
|
|
151,794,596
|
|
6,161,440
|
|
(149,712,623)
|
|
8,243,413
|
|
Net income for the period
|
|
|
—
|
|
—
|
|
6,281,034
|
|
6,281,034
|
|
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
|
|
(257,916,395)
|
|
(75,576,437)
|
|
|
|
|
|
|
|
|
|
|
|
Balance, September 1 , 2014
|
|
|
176,862,133
|
|
6,067,419
|
|
(270,156,764)
|
|
(87,227,212)
|
|
Net loss for the period
|
|
|
—
|
|
—
|
|
(9,153,327)
|
|
(9,153,327)
|
|
Stock-based compensation
|
|
|
—
|
|
3,064,081
|
|
—
|
|
3,064,081
|
|
Dividends
|
|
|
—
|
|
—
|
|
(40,362,264)
|
|
(40,362,264)
|
|
Stock options exercised
|
|
|
1,570,176
|
|
(662,372)
|
|
—
|
|
907,804
|
|
Balance, May 31 , 2015
|
|
|
178,432,309
|
|
8,469,128
|
|
(319,672,355)
|
|
(132,770,918)
|
|
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
May 31,
|
|
May 31, 2014
|
|
May 31,
|
|
May 31, 2014
|
|
(Canadian dollars)
|
|
2015
|
|
(Restated)
|
|
2015
|
|
(Restated)
|
|
Cash provided by (used in)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Net income (loss) for the period
|
|
7,962,438
|
|
(4,735,059)
|
|
(9,153,327)
|
|
6,281,034
|
|
Add(deduct) items not involving cash
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
4,775,768
|
|
7,283,501
|
|
16,017,701
|
|
24,471,997
|
|
Depreciation of property and equipment
|
|
514,435
|
|
447,511
|
|
1,404,797
|
|
2,418,317
|
|
Income tax expense
|
|
3,277,239
|
|
(1,426,091)
|
|
30,006,412
|
|
3,062,499
|
|
Stock-based compensation
|
|
820,314
|
|
758,948
|
|
3,064,081
|
|
2,118,645
|
|
Accrued interest
|
|
(2,812,500)
|
|
(1,267,064)
|
|
(2,812,500)
|
|
(1,551,196)
|
|
Interest accretion
|
|
144,183
|
|
2,932,742
|
|
426,116
|
|
3,683,032
|
|
Change in fair value of embedded derivative
|
|
—
|
|
3,440,000
|
|
—
|
|
3,440,000
|
|
Foreign exchange loss (gain)
|
|
19,668
|
|
(70,859)
|
|
275,328
|
|
166,059
|
|
Net change in non-cash working capital and deferred
revenue related to operations
|
|
3,255,119
|
|
(798,143)
|
|
13,384,241
|
|
(8,740,389)
|
|
Cash provided by operating activities
|
|
17,956,664
|
|
6,565,486
|
|
52,612,849
|
|
35,349,998
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
(558,528)
|
|
(373,202)
|
|
(1,377,080)
|
|
(1,069,264)
|
|
Purchase of intangible assets
|
|
(3,067,366)
|
|
(3,854,743)
|
|
(11,116,069)
|
|
(9,248,383)
|
|
Prepayment for property and equipment
|
|
35,250
|
|
—
|
|
(779,350)
|
|
—
|
|
Maturity of short-term investments
|
|
—
|
|
—
|
|
—
|
|
2,063,000
|
|
Interest received on short-term investments
|
|
—
|
|
—
|
|
—
|
|
125,075
|
|
Cash used in investing activities
|
|
(3,590,644)
|
|
(4,227,945)
|
|
(13,272,499)
|
|
(8,129,572)
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Payment of dividends
|
|
(13,461,970)
|
|
(13,429,490)
|
|
(40,362,264)
|
|
(39,604,863)
|
|
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
|
|
385,175
|
|
319,972
|
|
907,804
|
|
2,265,277
|
|
Cash provided by (used) in financing activities
|
|
(13,076,795)
|
|
51,386,458
|
|
(39,454,460)
|
|
27,156,390
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents during the period
|
|
1,289,225
|
|
53,723,999
|
|
(114,110)
|
|
54,376,816
|
|
Cash and cash equivalents, beginning of period
|
22,465,088
|
|
44,731,401
|
|
23,868,423
|
|
44,078,584
|
|
Cash and cash equivalents, end of period
|
|
23,754,313
|
|
98,455,400
|
|
23,754,313
|
|
98,455,400
|
SOURCE Sirius XM Canada Holdings Inc.
Robbie Sra, SiriusXM Canada, Tel: 416-513-7407, Robbie.Sra@siriusxm.ca; Kristen Dickson, TMX Equicom, 416-815-0700 ext 273, kdickson@tmxequicom.comCopyright CNW Group 2015