By Relmor Demitrius

Sirius XM Radio may have spilled the beans again in their quarterly filings.  As is often the case with companies, a careful read of their annual report can provide many clues and hints to future plans.  Sirius XM’s annual report filed on February 25th appears to be no exception.  There are some changes from their third quarter report that are definately noteworthy.

Looking over expected cash contractual obligations from this filing, we will see there has been some changes from the November  filed third quarter report.  Here is what Sirius XM defined as their cash contractual obligations for the coming years on this current annual report.  These would be cash expenses that have been well planned for, consistent, and very much a part of their operating structure.  These assessments have proven in the past to be accurate and helpful in projecting their results.  So these figures are definitely to be respected.

From the 2009 Annual Report From February of 2010: (more…)

By Relmor Demitrius

Sirius XM Radio (Nasdaq:SIRI) reported its fourth quarter results on February 25th.  In that report they finally gave some details to their global expansion plans, hinted at in their filings since 2009 and earlier.  According to Sirius XM, they have begun discussions with a Mexican Telecommunications Company, ACIR DARS, to begin selling their subscription based service in Mexico.

Already serving Canada, the desire to add other markets is hardly new news, as their existing satellite array already covers this area and others nearby.  With plans to add coverage in Puerto Rico already in play, a clear plan to cover most geographical markets on this side of the hemisphere are being more defined as time progresses.  On the other side of the ocean, with Liberty Media, through Liberty Capital (Nasdaq:LCAPA), already announcing intentions to offer the satellite radio service to other international markets, more than likely through Liberty’s recent control of Worldspace assets (OTC:WRSPQ), a clear global growth story is in play.

If your satellite coverage can reach other markets already, it makes sense to use their existing cost basis to add more subscribers through local national companies that can better market and distribute the product.  ACIR DARS will probably be in charge of billing and national service issues, while simply paying a royalty to Sirius XM for the content and delivery.  Sirius XM will also have the ability to be a part owner of this project, as they did with Sirius Canada and XM Canada, if the venture proves profitable on their level.  This could also mean a nice boost in retail radio revenues as well, as the drive to add subscribers at first in Mexico will more than likely come exclusively through the retail market.  ACIR DARS is a company that is deeply entrenched in the Mexican market already, and would make a perfect partner for Sirius XM going forward.

Long SIRI

By Relmor Demitrius -

Sirius XM Radio (NASDAQ:SIRI) filed its 10-K Annual Report on Thursday, February 25th.  It was another strong quarter for the company, improving further on their operating income and free cash flow year to year.  Also reporting this week was Liberty Media, which owns 40% of Sirius XM, within Liberty Capital (Nasdaq:LCAPA).  They also mentioned all the positives about the company, and that they may seek to add more shares in it as well.  Not many I’m assuming, as they cannot add more than 4.9% more right now, according to their own agreement with Sirius XM.  They could add more than that after 1 more year, but more likely 2 years would be the target time frame for anything to happen in this area.

Highlights include:

• Positive Free Cash Flow for the entire 2009 year.
• Have had two consecutive quarters of positive subscriber growth.
• Reported that almost 100 percent of the royalty rate charges had hit subscribers, of ones that could possible be charged.
• Positive Operating Income
• Beat EBITDA estimates and guidance for 2009.
• Reported Break Even Earnings, beating the street consensus by 200%.

Despite paying down outstanding bonds, huge interest payments on their debt, and it being one of the worst economic years in decades, Sirius XM left 2009 with around the same amount of cash on had they started the year with, and even added 3 million to their totals in Q4 from Q3 of this year. (more…)

By Relmor Demitrius

Join Kingofalltrades.com for live coverage of Sirius XM Radio’s (Nasdaq:SIRI) fourth quarter conference call results, at 8 am eastern standard time.  Sirius XM will announce guidance for 2010 and their quarterly results as well. 

Join our forum and live chat for instant analysis and opinions as news is released.

Visit www.kingofalltrades.com/forum.

Liberty Media will also report their earnings later in the day.

Liberty Capital (Nasdaq:LCAPA), which owns 40% of Sirius XM Radio may also add flavor or new information about the company as well.