• Record  total Subscribers of 2.02 million; year-over-year net additions of 192,600


• Record Self-Paying Subscribers of 1.45 million; year-over-year net additions of 161,900


• Record revenue of $63.8 million


• Adjusted EBITDA** of $11.9 Million, up 152.4% year-over-year


• Cash from operating activities of $12.0 million


• Fixed cash operating expense¹ reduced by 11.2% year-over-year

TORONTO, April 12, 2012 /CNW/ - Canadian Satellite Radio Holdings Inc. ("SiriusXM Canada" or the "Company") (TSX: XSR), parent of Sirius XM Canada Inc., today released unaudited financial results for the three- and six-month periods ended February 29, 2012 (Q2 and year-to-date FY2012, respectively) prepared in accordance with International Financial Reporting Standards (IFRS). A summary of IFRS financial results for Q2 and year-to-date FY2012 is attached². To provide a basis of comparison of the performance of the newly combined entity formed through the merger of Sirius Canada and XM Canada, the Company has also provided unaudited combined financial information (referred to as "Combined Information") for the comparative three- and six-month periods ended February 28, 2011. All results are reported in Canadian dollars unless otherwise stated.

Q2 FY2012 Highlights Compared to Combined Information for the Comparative Quarter in 2011

• Adjusted EBITDA increased 152.4% to $11.9 million from $4.7 million in 2011


• Generated $12.0 million in cash from operations in the quarter


• Self-Paying Subscribers increased 12.5% to 1.45 million from 1.29 million at February 28, 2011


• Revenue grew 9.4% to $63.8 million from $58.3 million in 2011


• Fixed cash operating expense decreased 11.2% to $16.9 million from $19.1 million in 2011


• Repaid $11.2 million promissory note to former shareholders of Sirius Canada


• Reported cash and cash equivalents of $36.1 million at February 29, 2012


• Subsequent to quarter end, completed a secondary offering on a bought deal basis for an aggregate of 8,000,000 Class A Subordinate Voting Shares of the Company

Year-to-date FY2012 Highlights Compared to Combined Information for the Comparative Period in 2011

• Adjusted EBITDA increased 152.2% to $24.8 million from $9.8 million for same period in 2011


• Generated $22.0 million in cash from operations during the six-months ended February 29, 2012


• Revenue grew 8.0% to $126.9 million from $117.5 million for same period in 2011


• Fixed cash operating expense decreased 15.3% to $32.2 million from $38.0 million for same period in 2011

"With another quarter of strong results, we continue to be one of the fastest growing media companies in Canada," said Mark Redmond, President and CEO, SiriusXM Canada. "In Q2, we expanded our subscriber base, delivered record revenue and realized further merger-related cost synergies. As a result, we more than doubled Adjusted EBITDA and generated significant cash from operations. In addition, we completed a secondary offering subsequent to quarter-end, substantially increasing the size and liquidity of the Company's publicly traded float. Looking ahead, we expect to continue to report strong Adjusted EBITDA, which in combination with our low capital expenditure requirements, positions us to consistently deliver free cash flow."

____________________________
¹ Please see the Company's MD&A for a definition of Fixed cash operating expense
² For a complete set of financial results including the accompanying notes please refer to the Company's filings on www.sedar.com

Financial and Operational Summary

Combined Information for Q2 2011 assumes the combination of XM Canada and Sirius Canada Inc. occurred as of September 1, 2010. 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 review of Q2 and year-to-date fiscal 2012 IFRS results compared to Combined Information for the comparative three and six-month periods in 2011

For Q2 FY2012, revenue was $63.8 million, up $5.5 million, or 9.4% from $58.3 million for the comparative quarter in 2011, primarily as a result of the growth in the Company's revenue-generating subscriber base. Year-to-date FY2012 revenue was $126.9 million, up $9.4 million, or 8.0% from $117.5 million for the same period in 2011.

SAC was $46 in Q2 FY2012 down from $55 for the comparative quarter in 2011. The decrease was mainly attributable to lower subsidies and distribution costs in the aftermarket channel, as well as a reduction in promotional spending due to cost synergies. SAC for year-to-date FY2012 was $50, down from $59 for the same period in 2011.

CPGA was $74 in Q2 FY2012, a decrease from $92 for the comparative quarter in 2011. This decline over the comparable quarter in 2011 was a result of lower subsidies and distribution costs along with a decrease in marketing costs, achieved through increased operating efficiencies and post-merger cost synergies. CPGA for year-to-date FY2012 was $78, down from $95 for the same period in 2011.

Q2 FY2012 Adjusted EBITDA improved to $11.9 million, representing a 152.4% increase, or $7.2 million improvement, from Adjusted EBITDA of $4.7 million for the comparative quarter in 2011. This increase over the comparable quarter in 2011 was primarily a result of the Company's top-line growth combined with a decrease in operating expenses driven by increased efficiencies and post-merger cost synergies in areas such as general and administrative, and marketing. Adjusted EBITDA for year-to-date FY2012 was $24.8 million, up 152.2%, or $15.0 million, from $9.8 million for the same period in 2011.

During the quarter, the Company generated $12.0 million in cash from operations and used cash of $0.2 million in investing activities and $10.9 million in financing activities. In the quarter, the Company used $11.2 million for repayment of a promissory note to shareholders of Sirius Canada, which was offset by $0.3 million in proceeds from the exercise of stock options. For year-to-date FY2012, the Company generated $22.0 million in cash from operations and used $1.1 million in investing activities and $10.8 million in financing activities. As at February 29, 2012, SiriusXM Canada had total cash and cash equivalents of $36.1 million, up from $26.0 million as at August 31, 2011.

Conference Call and Webcast Details

SiriusXM Canada will hold a conference call to discuss the Company's Q2 FY2012 results on Thursday, April 12, 2012 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 Thursday, April 19, 2012 at midnight. To access the archived conference call, please dial 416-849-0833, or 1-855-859-2056 and enter the reservation code 66040799. A live audio webcast of the conference call in addition to a slide presentation 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 unaudited EBITDA and unaudited Adjusted EBITDA to Operating Income (loss).

Please see the Company's Management Discussion & Analysis filed April 11, 2012 for a more detailed explanation of the differences between IFRS actual financial results and the combined information described in this press release. 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 consolidated statement of operations and comprehensive income. Please see the Company's Management Discussion & Analysis filed April 11, 2012 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 future operating performance and merger benefits and costs synergies. 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. 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 Canadian Satellite Radio Holdings Inc.'s filings with the Canadian securities regulators, available at www.sedar.com.

About SiriusXM Canada

Canadian Satellite Radio Holdings Inc. (TSX: XSR) operates as SiriusXM Canada. SiriusXM Canada 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 and entertainment brands as well as from professional sports leagues including the NHL, NFL, MLB and CFL.

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.sirius.ca and www.xmradio.ca and on Apple, BlackBerry and Android-powered mobile devices.

SiriusXM Canada has partnerships with every major automaker and its radio products are available at more than 3,000 retail locations nationwide. To find out more about SiriusXM Canada (TSX: XSR), visit our website at www.siriusxm.ca.

CONSOLIDATED INTERIM BALANCE SHEET
(Unaudited)

CONSOLIDATED INTERIM STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)

CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(DEFICIENCY)
(Unaudited)

CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
(Unaudited)

For further information:

 

Investors 

Morlan Reddock 

416-408-6899 

investor.relations@xmradio.ca

Kristen Dickson

TMX Equicom

416-815-0700 ext 273

kdickson@equicomgroup.com