JohnnyIrishXM, This is directly from the CC:
"You will also see in our 10-Q that we anticipate filing tomorrow that we believe we will have sufficient cash availability under our existing credit facility and from operations to cover not only our 2009 maturities but also our 2010 maturities. We have done a good job in resolving our merger related liquidity issues."
And then this:
Murray Arenson - Janco Partners
"Thank you. Good morning. I wondered if you’d talk about -- you mentioned that you believe you are sufficient in terms of cash resources to take you through not only 2009 but 2010. I wonder if you could just provide a little bit more color on the path to get there in terms of where you are sitting right now, what you think expenditures are going to look like, whether they are related to capital or satellite launches, things like that, and kind of how you get there?"
"Murray, we’re not -- we are providing guidance on EBITDA but not on other measures going forward at this point and so I don’t think there’s a lot more we can say today than we’ve already put out there. I think that, just to remind you of some of the things, I think you do know that there is a launch of the Sirius 5 satellite scheduled for the end of the second quarter of this year. It was reported in some of the industry press or in the satellite industry that C-Launch has encountered some conflicts from both government launches as well as supply issues of engines and that could push the XM5 launch, which was scheduled for the December/January timeframe out to the -- potentially the third or fourth quarter of 2010, and then we remain on schedule for fourth quarter 2011 launch of the Sirius 6 satellite, which is then hopefully all three launches are successful. That will represent really an end of satellite replacement spending for probably four or so years after that. We wouldn’t expect to pick it back up again until the 2015 timeframe"
Now you will notice Mel said in reguards to "expenditures" that they have the Sirius 5 satellite launch coming up at the end of the second quarter. Mel then gos on to mention the other two satellites and is clear that, THAT WILL END THE **SPENDING** ON SATELLITES UNTIL 2015. So while you are saying one thing it is clear Mel is saying another.
Now I cant help but think if they had all this already paid for, Mel would not have said this as clear as possible. At the vary least said the remaining expense was very small (as a matter of fact he brings it up as in, this is going to be a cost). So from this and the fact I have not seen it being paid for or expensed out for, in any of the 10-Qs, that there is still more to be paid out. I also fill safe in saying it is not some small amount. Mel would not have brought this issue (satellites) up in the discussion as it was pertaining to the cash on hand and having enough to cover expenses for the next 2 years.
Last edited by john; 05-20-2009 at 07:48 AM.
John,here is cash commitments going forward from annual report,Page F-41.
Notice that with long term debt obligations being spread out and paid for the Sat Capex is 125 mil in 09 and 145mil in 2010 when no debt is on books,notice 2010 cash commitment are 1.1 bil less than 2009..we can handle Capex no problem if i'm reading it right...
Let me know how you read this?
Here is link,it reads better there..
(16) Commitments and Contingencies
The following table summarizes our expected contractual cash commitments as of December 31, 2008:
2009 2010 2011 2012 2013 Thereafter Total
obligations . . . . . . . . . . . $ 986,791 $ 13,129 $235,143 $239,402 $1,278,500 $555,463 $3,308,428
Cash interest payments . . . . 264,029 210,179 209,147 196,281 147,244 35,505 1,062,385
Satellite and transmission. . . 125,372 145,486 80,159 7,672 7,926 33,112 399,727
Programming and content . . 308,545 279,798 133,279 123,237 32,483 14,350 891,692
Marketing and distribution . . 66,882 36,578 24,285 14,533 3,000 4,500 149,778
incentive payments . . . . . 4,096 4,384 4,695 5,030 5,392 42,831 66,428
obligations . . . . . . . . . . . 41,513 37,055 22,352 18,341 14,878 15,373 149,512
Other . . . . . . . . . . . . . . . . . 16,269 4,906 1,514 — — — 22,689
Total . . . . . . . . . . . . . . . . $1,813,497 $731,515 $710,574 $604,496 $1,489,423 $701,134 $6,050,639
Long-term debt obligations. Long-term debt obligations include principal payments on outstanding debt.
Subsequent to December 31, 2008, we have entered into agreements that have had a significant impact on our debt
and capital structure as more fully described in Note 19, of the 2009 commitments $18,000 has been exchanged to
common stock, the maturity of $175,000 has been extended to 2010 and the maturity of $247,485 has been extended
Cash interest payments. Cash interest payments include interest due on outstanding debt through maturity.
Satellite and Transmission. We have entered into agreements with third parties to operate and maintain the
off-site satellite telemetry, tracking and control facilities and certain components of our terrestrial repeater
networks. We have also entered into various agreements to design and construct satellites for use in our systems
and to launch those satellites. SIRIUS has entered into an agreement with Space Systems/Loral to design and
construct a fifth and sixth satellite. SIRIUS plans to launch one satellite on a Proton rocket under an existing
contract with International Launch Services. In January 2008, SIRIUS entered into an agreement with International
Launch Services to secure two additional satellite launches on Proton rockets. This agreement provides SIRIUS
with the flexibility to defer the second launch date if it chooses, and the ability to cancel either of these launches
upon payment of a cancellation fee.
XM Holdings has also entered into an agreement with Space Systems/Loral to construct its fifth satellite,
XM-5. In August 2007, XM’s agreement with Space Systems/Loral was amended to defer payments on the
remaining construction costs until the earlier of post-launch or January 2010.
Boeing Satellite Systems International, Inc., the manufacturer of XM’s four in-orbit satellites, may be entitled
to future in-orbit performance payments with respect to two of XM’s four satellites. As of December 31, 2008, we
have accrued $28,365 related to contingent in-orbit performance payments for XM-3 and XM-4 based on expected
SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
operating performance over their fifteen year design life. Boeing may also be entitled to an additional $10,000 if
XM-4 continues to operate above baseline specifications during the five years beyond the satellite’s fifteen year
Programming and Content. We have entered into various programming agreements. Under the terms of these
Well it looks like they will have just over 27 million in satellite cost in 2009 and 47 million in 2010, not alot when compared. So I will say I can believe you now, but will keep one eye open just incase. Thanks JohnnyIrishXM
good work johnny irish if u have convinced john you have convinced me :O
Just a minute, I dont remember you ever convincing me of that.
I guess when it comes to good things for SIRIXM I have gotten a little skeptical. I have gotten to a place where I dont get my hopes up on this company anymore. I have learned you just get depressed with this company when you do. That is why I can still crack a joke about this crap and actually laugh at some of the shit that has happened to it. I have said before if I did not know any better I would think god himself has a hand in trying to get this company to go down. I have never heard the saying "A perfect storm" so much in my life as it is used with this company.