SiriusXM Canada Reports First Quarter Fiscal 2017 Results

TORONTO, Jan. 11, 2017 /CNW/ - Sirius XM Canada Holdings Inc. ("SiriusXM Canada" or the "Company") (TSX: XSR), parent of Sirius XM Canada Inc., today released the unaudited financial results for its fiscal 2017 first quarter ("Q1 FY2017") ended November 30, 2016 prepared in accordance with International Financial Reporting Standards (IFRS). A summary of IFRS financial results for Q1 FY2017 is attached. All results are reported in thousands of Canadian dollars, except for subscribers and per share amounts, unless otherwise stated.

Q1 FY2017 Financial and Operating Metrics

The figures below include certain non-GAAP measures and industry metrics. These figures are subject to the qualifications and assumptions set out in the Company's notes to such results.

"In the quarter we continued to grow revenue and Adjusted EBITDA along with increasing our subscriber base, including strong growth from the pre-owned vehicle market", said Mark Redmond, President and CEO SiriusXM Canada. "In addition, we continued to deliver an unmatched listening experience, including the launch of VOLUME, the first 24/7 talk radio channel devoted to music, and full coverage of the NBA and NHL seasons. We are in the final stage of our Recapitalization go-private transaction and are awaiting the decision of the CRTC following its recent public consultation which concluded on January 9, 2017."

Q1 FY2017 Financial Results Review

For Q1 FY2017, revenue was $87,216, up $3,699, or 4.4%, from $83,517 in Q1 FY2016. The year-over-year improvement reflects growth in the Company's Self-Pay subscriber base. Q1 FY2017 Self-Pay ARPU was $12.54, down 0.2% from $12.57 in Q1 FY2016 due to increased promotional activity.

Adjusted EBITDA for Q1 FY2017 increased $726, or 3.1%, to $24,244 from $23,518 in Q1 FY2016. The improvement was due to higher revenue and lower subsidies and distribution costs, partly offset by higher marketing and revenue share and royalty costs.

The Company recorded net income and comprehensive income of $9,808 in Q1 FY2017, a decrease of $267, or 2.7%, compared to net income and comprehensive income of $10,075 in Q1 FY2016, which was mainly due to higher operating costs combined with depreciation and amortization, partly offset by increased revenues.

SAC for Q1 FY2017 was $33 down $7 from $40 in Q1 FY2016, which was mainly due to OEM partner mix and lower contractual OEM subsidy costs compared to the same period in FY2016.

In Q1 FY2017, the Company generated $15,468 in cash from operating activities compared to $17,206 in Q1 FY2016 primarily due to lower operating working capital combined with a decrease in operating income (inclusive of third party advisory costs as a result of the Recapitalization go-private transaction).

The Company generated free cash flow of $13,146 in Q1 FY2017, an improvement of $2,917 or 28.5%, from $10,229 in Q1 FY2016 primarily due to lower capital expenditures related to fewer additions to the dual-band terrestrial repeater network and XM activation fees, partly offset by a decrease in cash flow generated by operating activities.

At November 30, 2016, the Company had total cash of $53,525 compared to $40,379 at August 31, 2016.

Annual General Meeting

As the Company is in the process of finalizing its Recapitalization go-private transaction, it has obtained TSX approval to defer its Annual General Meeting. Additional details regarding the Annual General Meeting such as the meeting date, record date, time and location of the meeting, if required, will be communicated in a subsequent press release.

Conference Call and Webcast Details

SiriusXM Canada will hold a conference call to discuss the Company's Q1 FY2017 results on Thursday, January 12, 2017 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 will be archived for replay until Thursday, January 19, 2017 at midnight. To access the archived conference call, please dial 416-849-0833 or 1-855-859-2056 and enter reservation code: 40121558. A live audio webcast of the conference call will be available here: http://bit.ly/2hshZj4. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software downloads that may be required. An archived replay will be available for 90 days.

Reconciliations

For a complete definition of non-GAAP measures, and for additional details on the Company's Q1 FY2017 results, please see the Company's MD&A filed January 11, 2017 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 interim condensed consolidated financial statements for Q1 FY2017.

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 Company's Recapitalization go-private transaction, and the timing thereof, 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, and as a consequence, actual events, performance or results may not be consistent with such forward-looking statements. 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 2.8 million subscribers, is the country's leading audio entertainment company and broadcasts more than 130 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, MLB, 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 seven years in a row and is currently a Platinum Club Member, in addition to 2013, 2014 and 2015 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.

SOURCE Sirius XM Canada Holdings Inc.