T.XSR - News Releases

Total Subscribers of 2.1 million; year-over-year net additions of 214,300
Record revenue of $64.6 million
Adjusted EBITDA** of $9.6 Million, up 69.7% year-over-year
Free cash flow of $7.3 million, up 35% year-over-year

TORONTO, July 11, 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 nine-month periods ended May 31, 2012 (Q3 and year-to-date FY2012, respectively) prepared in accordance with International Financial Reporting Standards (IFRS). A summary of IFRS financial results for Q3 and year-to-date FY2012 is attached¹. To provide a basis of comparison of the performance of the 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 nine-month periods ended May 31, 2011. All results are reported in Canadian dollars unless otherwise stated.

Q3 FY2012 Highlights Compared to Combined Information for the Comparative Quarter in 2011

•     Adjusted EBITDA increased 69.7% to $9.6 million from $5.6 million in Q3 FY2011
•     Self-Paying Subscribers increased 13.4% to 1.5 million from 1.3 million at May 31, 2011
•     Revenue increased 8.1% to $64.6 million from $59.7 million in Q3 FY2011
•     Free cash flow up 35% to $7.3 million from $5.4 million in Q3 FY2011
•     Reported cash and cash equivalents of $42.5 million at May 31, 2012
•     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 122.1% to $34.3 million from $15.5 million for the same period in FY2011
•     Revenue grew 8.0% to $191.5 million from $177.3 million for the same period in FY2011
•     Free cash flow up 445% to $28.1 million, from $5.2 million for the same period in FY2011

"We continue to drive significant year-over-year growth in Adjusted EBITDA and free cash flow through subscriber additions and cost synergies," said Mark Redmond, President and CEO, SiriusXM Canada. "Our results to-date are a strong testament to the benefits of the merger. We are being integrated into more new vehicles and are poised to increasingly benefit from the expected rise in auto sales to pre-recession levels in Canada. We remain committed to managing costs and optimizing operating efficiencies, which, in combination with our success in executing on our strategic priorities, should result in continued improvement in our financial performance."

¹ 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 Q3 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 *	IFRS Q3 FY2012	Combined Q3 2011	IFRS Year-to-date FY2012	Combined Year-to-date FY2011
	(ended May 31, 2012)	(ended May 31, 2011)	(ended May 31, 2012)	(ended May 31, 2011)
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)

Total Revenue	$64,615	$59,750	$191,500	$177,277

Adjusted EBITDA**	$9,560	$5,634	$34,342	$15,460

Net Loss	($4,189)	($9,156)	($10,296)	($20,836)

Operating*

Self-Paying Subscribers	1,507	1,328	1,507	1,328

Total Subscribers	2,117	1,902	2,117	1,902

Subscriber Acquisition Cost (SAC)	$49	$50	$50	$55

Cost Per Gross Addition (CPGA)	$68	$76	$74	$88

* All figures in the table above are in thousands except, SAC and CPGA
** Adjusted EBITDA is a non-GAAP measure. A reconciliation of operating income to both EBITDA and Adjusted EBITDA is provided below.

"In the quarter, we continued to demonstrate the strong operating leverage our business model provides," said Michael Washinushi, CFO, SiriusXM Canada. "Most of our $4.9 million increase in revenue flowed straight through to Adjusted EBITDA, which was up $4.0 million year-over-year despite $0.7 million in one-time expenses related to our secondary offering and the CRTC hearing."

Financial review of Q3 and year-to-date FY2012 IFRS results compared to Combined Information for the comparative three and nine-month periods in 2011

For Q3 FY2012, revenue was $64.6 million, up $4.9 million, or 8.1% from $59.7 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 $191.5 million, up $14.2 million, or 8.0% from $177.3 million for the same period in 2011.

SAC was $49 in Q3 FY2012 relatively in line with $50 for the comparative quarter in 2011 as subsidies and distribution costs increased proportionally with gross additions. SAC for year-to-date FY2012 was $50, down from $55 for the same period in 2011 due to lower subsidies and distribution costs and higher gross additions.

CPGA was $68 in Q3 FY2012, a decrease from $76 for the comparative quarter in 2011. The decline was a result of a decrease in marketing costs achieved through increased operating efficiencies and post-merger cost synergies coupled with higher gross subscriber additions. CPGA for year-to-date FY2012 was $74, down from $88 for the same period in 2011 due to a decrease in marketing costs as well as lower subsidy and distribution costs.

Q3 FY2012 Adjusted EBITDA improved to $9.6 million, representing a 69.7% increase, or $4.0 million improvement, from Adjusted EBITDA of $5.6 million for the comparative quarter in 2011. This increase over the comparable quarter in 2011 was a result of the Company's top-line growth combined with a decrease in marketing expenses, which was offset by a higher cost of revenue and an increase in administrative and information technology costs. Adjusted EBITDA for year-to-date FY2012 was $34.3 million, up 122.1%, or $18.9 million, from $15.5 million for the same period in 2011.

During the quarter, SiriusXM Canada generated $8.7 million in cash from operations, used cash of $1.4 million in investing activities related to the purchase of property equipment and intangible assets and used $0.9 million in financing activities to repay the outstanding portion of a US dollar Senior Note. The Company generated $7.3 million in free cash flow in Q3 FY2012. For year-to-date FY2012, the Company generated $30.6 million in cash from operations, used $2.5 million in investing activities and used $11.7 million in financing activities. The Company generated $28.0 million in free cash flow for the FY2012 year-to-date period. As at May 31, 2012, SiriusXM Canada had total cash and cash equivalents of $42.5 million, up from $36.1 million as at February 29, 2012.

Conference Call and Webcast Details

SiriusXM Canada will hold a conference call to discuss the Company's Q3 FY2012 results on Wednesday, July 11, 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 Wednesday, July 18, 2012 at midnight. To access the archived conference call, please dial 416-849-0833, or 1-855-859-2056 and enter the reservation code 93170441. 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).

*(In $000's)*	*IFRS* *Q3 2012*	*Combined* *Q3 2011*	*IFRS* *Year-to-date* FY2012	*Combined* *Year-to-* *date* *FY2011*
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)

Operating loss	(1,199)	(3,787)	(169)	(13,242)

Amortization	10,005	6,422	30,990	20,139

EBITDA	8,806	2,635	30,821	6,897

Stock based compensation	333	27	1,160	90

Severance and merger costs	104	2,972	1,381	8,474

Fair value adjustments*	317		980

Adjusted EBITDA	9,560	5,634	34,342	15,460

* 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 10, 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 July 10, 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)

As at	May 31,	August 31,
(Canadian dollars)	2012	2011

ASSETS
Current assets
Cash and cash equivalents	42,489,061	26,015,439
Accounts receivable	11,312,986	10,718,676
Prepaid expenses	3,301,821	2,587,736
Inventory	455,380	2,265,438
Total current assets	57,559,248	41,587,289
Long-term prepaid expenses	68,603	901,563
Property and equipment	8,179,284	9,680,308
Intangible assets	180,420,238	206,113,620
Deferred tax assets	54,455,906	51,545,684
Goodwill	96,732,525	96,732,525
Total assets	397,415,804	406,560,989

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade and other payables	34,512,258	32,870,628
Due to related parties	6,298,374	17,203,492
Interest payable	6,274,522	2,709,537
Current portion of deferred revenue	133,681,948	126,995,705
Provisions	1,804,281	2,123,557
Total current liabilities	182,571,383	181,902,919
Deferred revenue	20,367,418	20,084,379
Other long-term liabilities	8,067,864	9,248,840
Due to related parties	1,208,332	1,208,332
Long-term debt	145,960,769	146,143,284
Provisions	465,036	497,197
Total liabilities	358,640,802	359,084,951

Shareholders' equity
Share capital	148,314,171	147,169,430
Contributed surplus	4,773,856	4,324,032
Accumulated deficit	(114,313,025)	(104,017,424)
Total shareholders' equity	38,775,002	47,476,038
Total liabilities and shareholders' equity	397,415,804	406,560,989

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

		Three Months ended		Nine months ended
		May 31,	August 31,	May 31,	August 31,
(Canadian dollars)		2012	2011	2012	2011

Revenue		64,615,173	55,465,638	191,500,550	140,917,994

Operating expenses
	Operating costs	55,705,162	44,711,382	159,298,266	117,318,777
	Severance and merger costs	104,428	6,261,928	1,381,390	7,737,246
	Depreciation and amortization	10,005,268	6,283,402	30,989,731	8,031,023
Operating income		(1,199,685)	(1,791,074)	(168,837)	7,830,948

Finance costs, net
	Interest income	103,118	80,737	228,147	329,145
	Interest expense	(4,010,560)	(3,427,853)	(12,715,708)	(3,427,853)
	Foreign exchange gain / (loss)	(389,460)	(143,904)	(546,035)	(315,095)
	Gain / (loss) on debt payment	—	(1,908,263)	—	(1,908,263)
	Gain / (loss) on revaluation of derivative	14,403	—	(3,390)	—

Finance costs		(4,282,499)	(5,399,283)	(13,036,986)	(5,322,066)

Net income (loss) before income tax		(5,482,184)	(7,190,357)	(13,205,823)	2,508,882
Income tax recovery		1,293,210	15,344,226	2,910,222	15,344,226
Net income (loss) and comprehensive income (loss)		(4,188,974)	8,153,869	(10,295,601)	17,853,108

Basic and fully diluted (loss) earnings per share		(0.03)	0.07	(0.08)	0.19

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

				Total
				Shareholders'
	Share	Contributed	Accumulated	Equity
(Canadian dollars)	Capital	Surplus	deficit	(deficiency)

Balance, December 1, 2010	36,000,100	—	(115,460,055)	(79,459,955)
Return of Capital	(36,000,000)	—	—	(36,000,000)
CSRH shares outstanding at time of merger	154,596,684	—	—	154,596,684
CSRH cash deficiency notes	(7,517,868)	—	—	(7,517,868)
Shares for interest - convertible note	67,999	—	—	67,999
Stock options exercised	22,515	(14,361)	—	8,154
Equity component of convertible debt acquired	—	1,539,196	—	1,539,196
Vested stock options at acquisition	—	2,614,513	—	2,614,513
Stock compensation expense	—	184,684	—	184,684
Total comprehensive income for the period	—	—	17,853,108	17,853,108
Dividends on Class C preferred shares	—	—	(1,601,753)	(1,601,753)
Dividends on Class C shares	—	—	(5,942,481)	(5,942,481)
Part VI.1 tax reversal	—	—	1,133,757	1,133,757
Balance, August 31, 2011	147,169,430	4,324,032	(104,017,424)	47,476,038

Balance, September 1, 2011	147,169,430	4,324,032	(104,017,424)	47,476,038
Total comprehensive (loss) for the period	—	—	(10,295,601)	(10,295,601)
Stock-based compensation	—	1,160,263	—	1,160,263
Stock options exercised	1,144,741	(710,439)	—	434,302
Balance, May 31, 2012	148,314,171	4,773,856	(114,313,025)	38,775,002

CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
(Unaudited)

		Three Months ended		Nine months ended
		May 31,	August 31,	May 31,	August 31,
(Canadian dollars)		2012	2011	2012	2011
Cash provided by (used in)

OPERATING ACTIVITIES
Net income (loss) for the period		(4,188,974)	8,153,869	(10,295,601)	17,853,108
Add(deduct) items not involving cash
	Amortization of intangible assets	9,338,902	5,605,363	28,866,551	6,861,192
	Depreciation of property and equipment	666,366	678,039	2,123,180	1,169,831
	Future income tax recovery	(1,293,210)	(15,344,226)	(2,910,222)	(15,344,226)
	Write down of intangible asset	—	4,235,953	—	4,235,953
	Stock-based compensation	333,136	184,684	1,160,263	184,684
	Accrued interest	3,583,180	2,709,537	3,564,985	2,709,537
	Interest accretion	229,193	129,234	718,533	129,234
	Loss on repayment of debt	—	1,908,263	—	1,908,263
	Share issued for interest settlement	—	67,999	—	67,999
	Revaluation of derivative	(14,403)	—	3,390	—
	Unrealized foreign exchange losses	448,082	7,879	293,658	7,879
	Net change in non-cash working capital and deferred revenue related to operations	(438,238)	(10,009,687)	7,123,295	(12,046,186)
Cash provided by (used in) operating activities		8,664,034	(1,673,093)	30,648,032	7,737,268

INVESTING ACTIVITIES
Cash acquired on acquisition		—	2,223,112	—	2,223,112
Proceeds on sale of property and equipment		—	1,757	—	1,757
Purchase of property and equipment		(30,840)	(65,132)	(625,892)	(180,198)
Purchase of intangible assets		(1,341,147)	(482,203)	(1,891,830)	(1,931,242)
Cash provided by (used in) investing activities		(1,371,987)	1,677,534	(2,517,722)	113,429

FINANCING ACTIVITIES
Distributions to shareholders		—	(44,723,690)	—	(44,723,690)
Proceeds from exercise of stock options		40,394	8,154	434,302	8,154
Proceeds from debt		—	62,000,000	—	62,000,000
Debt financing fees		—	(4,118,803)	—	(4,118,803)
Repayments of debt		(917,700)	(42,611,373)	(917,700)	(42,611,373)
Payment of related party promissory notes		—	—	(11,173,290)	—
Cash provided by financing activities		(877,306)	(29,445,712)	(11,656,688)	(29,445,712)

Net increase (decrease) in cash and cash equivalents during the period		6,414,741	(29,441,271)	16,473,622	(21,595,015)
Cash and cash equivalents, beginning of period		36,074,320	55,456,710	26,015,439	47,610,454
Cash and cash equivalents, end of period		42,489,061	26,015,439	42,489,061	26,015,439

Investors
Morlan Reddock
416-513-7418
morlan.reddock@siriusxm.ca

Kristen Dickson
TMX Equicom
416-815-0700 ext 273
kdickson@equicomgroup.com