SIRI Tue 7/21/09 Daily Thread

[JohnnyIrishXM]

this shows xm paid for this already,xm-5 that is..in 2008

Satellite system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $449,129 $155,736
Terrestrial repeater network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,070 11,885
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 347
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,517 6,597
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $474,716 $174,565
Depreciation and amortization expense on property and equipment was $167,963, $106,780 and $105,749 for
the years ended December 31, 2008, 2007 and 2006.
Satellites
Our orbiting SIRIUS satellites were successfully launched in 2000. Our spare SIRIUS satellite was delivered to
ground storage in 2002. Our three-satellite constellation and terrestrial repeater network were placed into service in
2002.
We entered into an agreement with Space Systems/Loral for the design and construction of our fifth and sixth
SIRIUS satellites. In January 2008, we entered into an agreement with International Launch Services to secure two
additional satellite launches on Proton rockets. This agreement provides us the flexibility to defer the second of
these launch dates and to cancel either launch upon payment of a cancellation fee.
XM owns four orbiting satellites; two of which, XM-3 and XM-4, currently transmit the XMsignal and two of
which, XM-1 and XM-2, serve as in-orbit spares. The XM satellites were launched in March 2001, May 2001,
February 2005 and October 2006.
XM also expects to replace the XM satellite constellation to meet its business needs. Space Systems/Loral is
constructing a fifth satellite, XM-5, for use in the XM system. XM has also entered into an agreement with Sea
Launch to secure a launch for XM-5.
F-24

here is link,if you want to look for yourself
http://files.shareholder.com/downloa...nualReport.pdf

[JohnnyIrishXM]

XM-5 is done and paid for and sitting in storage awaiting launch if needed,now it isn't needed until a problem occurs with xm-3 or xm-4,we already have 2 spares in orbit for xm to cover us until xm-5 can be launched.

[Sirius Roadkill]

XM-5 is done and paid for and sitting in storage awaiting launch if needed,now it isn't needed until a problem occurs with xm-3 or xm-4,we already have 2 spares in orbit for xm to cover us until xm-5 can be launched.

Hey Irish . . thanks for putting all the time in on this!!

I guess this quote from Mel is what leaves me feeling like there is another show to drop:

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?

Mel Karmazin

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.


but to sum up Irish . . your take is that only $25mm will come out for the launch

[JohnnyIrishXM]

this is the reason it was pushed back,fm-6 that is,but it has changed since then,april 9th 2009 and how it is paid for...

In July 2007, SIRIUS amended and restated its existing Credit Agreement with Space Systems/Loral (the
“Loral Credit Agreement”). Under the Loral Credit Agreement, Space Systems/Loral agreed to make loans to
SIRIUS in an aggregate principal amount of up to $100,000 to finance the purchase of its fifth and sixth satellites.
After April 6, 2009, Loral’s commitment will be limited to 80% of amounts due with respect to the construction of
our sixth satellite. Loans made under the Loral Credit Agreement are secured by SIRIUS’ rights under the Satellite
Purchase Agreement with Space Systems/Loral, including its rights to these satellites. The loans are also entitled to
the benefits of a subsidiary guarantee from Satellite CD Radio, Inc., the subsidiary that holds SIRIUS’ FCC license,
and any future material subsidiary that may be formed by SIRIUS. The maturity date of the loans is the earliest to
occur of (i) June 10, 2010, (ii) 90 days after the sixth satellite becomes available for shipment and (iii) 30 days prior
to the scheduled launch of the sixth satellite. The Loral Credit Agreement contains certain drawing conditions,
including the requirement that SIRIUS have a market capitalization of at least $1 billion. As a result of these
borrowing conditions, we currently cannot borrow under this facility and in the future we may be limited in our
ability to borrow under this facility. Any loans made under the Loral Credit Agreement generally will bear interest
at a variable rate equal to 3-month LIBOR plus 4.75%. The daily unused balance bears interest at a rate per annum
equal to 0.50%, payable quarterly on the last day of each March, June, September and December. The Loral Credit
Agreement permits SIRIUS to prepay all or a portion of the loans outstanding without penalty. SIRIUS has not
borrowed under the Loral Credit Agreement.
XM


Our plan to maintain sufficient liquidity includes the potential for deferring the planned launch of satellites,
deferring planned 2008 employee bonus payments or satisfying planned 2008 employee bonuses with non-cash
awards, and deferring planned capital projects or other discretionary expenses. We believe that our cash and cash
F-9
equivalents on hand, marketable securities, available borrowings from Liberty Media, and expected cash flows from
operations in 2009 will be sufficient to satisfy our financial obligations through January 2010. Our financial
projections are based on assumptions, which we believe are reasonable, but contain uncertainties as noted abov

[JohnnyIrishXM]

Hey Irish . . thanks for putting all the time in on this!!

I guess this quote from Mel is what leaves me feeling like there is another show to drop:

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?

Mel Karmazin

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.


but to sum up Irish . . your take is that only $25mm will come out for the launch

That is the quote,FM-5 just went up and paid for,25mil was in 1Q,then XM-5 is paid for,just showed you the accounting,but launch hasn't been paid yet,but not due until late next year,and FM-6 is pushed back..

[Sirius Roadkill]

ok, thanks Irish . . catch ya tomorrow . .

[JohnnyIrishXM]

ok,thanks,hope this clears it up,but i'm not 100% sure we won't see a surprise Capex of 30to 50 mil,as i'm having a hard time finding a clear definitive answer in the report that says it is all paid for on Sirius side of accounting..Just going by good bussiness sense,which is that it must be paid for in advance for launch date..

[bassmaster]

irish, wasnt it tim wallick that said it was paid for and there was an arbitration hearing over $12MM? is there still no definitative answer until the CC?

[JohnnyIrishXM]

irish, wasnt it tim wallick that said it was paid for and there was an arbitration hearing over $12MM? is there still no definitative answer until the CC?

Yes it was tim,and tyler confirmed it,also homer said this one was,but next one he wasn't sure..

[Hopeful]

Howard is now available on the free trial of the internet radio!!! He was not a few weeks ago!!!

Iphone app coming???

Are you doing a show thursday night tyler?