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Thread: Dick Tracy calling JohnnyIrish. Come in Irish

  1. #11
    JohnnyIrishXM is offline
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    Quote Originally Posted by Sirius Roadkill View Post
    Irish, I know I might be parsing words here, or even mixing-up the quotes, but please indulge me and take one more look at "this" quote from Mel . .

    Faber: -- BUT LET'S TALK ABOUT THE FUTURE HERE.

    Karmazin: AND I THINK THAT IS THE FUTURE, OKAY? I THINK THE FACT THAT WE HAVE IDENTIFIED IMMEDIATELY $400 MILLION OF SYNERGY ON VIRTUALLY EVERY LINE ITEM OF THE P&L, SYNERGIES THAT WE ARE VERY, VERY CONFIDENT TO BE ABLE TO DELIVER NET OF THE COST BEFORE 2009. SO WHEN YOU TAKE THAT SYNERGY AND YOU ADD IT TO THE COMBINED COMPANY, YOU GET, FOR THE FIRST TIME, POSITIVE EBITDA. NOW, IN MY OPINION, POSITIVE EBITDA ISN'T THE SAME THING AS MAKING MONEY.SO, WE'LL HAVE $300 MILLION OF EBITDA IN 2009, AND BUT FOR A PAYMENT CONNECTED WITH THE SATELLITE, SIRIUS IS PUTTING UP A NEW SATELLITE IN '09, AND WE HAVE ONE PAYMENT -- BEFORE THAT SATELLITE, WE WILL BE FREE CASH FLOW POSITIVE.

    this is the part that draws my attention . . . and consternation:

    "AND BUT FOR A PAYMENT CONNECTED WITH THE SATELLITE, SIRIUS IS PUTTING UP A NEW SATELLITE IN '09, AND WE HAVE ONE PAYMENT"

    so this is why I believe that there is "one payment" that has not yet been processed in 2009 related to the "Sirius" satellite just recently launched on June 30, 2009/July 1, 2009 (depending which time zone, LOL - thanks Homer). How much that "one payment" amounts to is anyone's guess but I would "think" it could be sizeable if it is the difference between being FCF positive and not being FCF positive for the whole year?

    whadda ya think Irish?

    Tyler . . . care to weigh in?
    S-kill,if going by this quote i have put in bold below,can we agree that if there is no Capex or over 20mil in capex for 2Q that it is accounted for going forward for FM-5?The quote says payment before Sat launch,which is 2Q..

    AND BUT FOR A PAYMENT CONNECTED WITH THE SATELLITE, SIRIUS IS PUTTING UP A NEW SATELLITE IN '09, AND WE HAVE ONE PAYMENT -- BEFORE THAT SATELLITE, WE WILL BE FREE CASH FLOW POSITIVE.

    Remember mel made this statement before all the new rev sources we have now and with 300 mil EBITDA for year we wouldn't be FCF +,as you can see with 108 mil EBITDA in 1Q was only neg 4mil FCF...
    Last edited by JohnnyIrishXM; 07-30-2009 at 12:12 AM.

  2. #12
    john is offline
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    Quote Originally Posted by Sirius Roadkill View Post
    I love the top part (also love pop tarts) . . same stuff goes on here with local zoning/planning boards yanking-around applicants . .

    what you do here, however, is you ask around and find out who the "in-attorney" is for local planning issues . . he is usually the treasurer or VP of the local republican or democrat club . . then, depending on which party is in power at the time of your site plan application . . . hire the attorney with the corresponding party . .

    this attorney will never lose; the planning/zoning board members are appointed by mayor and council . . use the right attorney and the approvals will sail through . . even where the lot is undersized for the zone or requires a use variance . . it will sail through

    these are the dirty little secrets of local govt that most people never come into contact with


    Sirius Roadkill, we first tried that, the in town attorneys wanted nothing to do with it they had other projects of their own going and said basically good luck dealing with those people. To be fare it was not the Major and City Councel and three members (two of which where also on the city councel) it was with the 4 other members on the site plan board. There own city attorney told them they could not do this (on a item, on the record in the meeting) and they still did. After the meeting, I told my attorney what frick is this, their own attorney said they could not do this, lets just take them to court. He told me believe me the last thing you want to do is take the city to court, until it is the last thing possible, it will cost you alot more time and money. He then said, we should just wait and give them enough rope to hang themselves.


    P.S. I have delt with the citys attorney before in another city site plan (the firm must handel other cities). There, I was asking for a variance for the lot area (I was about 1200 sq. ft. short), and I got it. This was not the first time dealing with a city, so believe me I know how to kiss ass.

  3. #13
    Sirius Roadkill is offline
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    Quote Originally Posted by JohnnyIrishXM View Post
    S-kill,if going by this quote i have put in bold below,can we agree that if there is no Capex or over 20mil in capex for 2Q that it is accounted for going forward for FM-5?The quote says payment before Sat launch,which is 2Q..

    AND BUT FOR A PAYMENT CONNECTED WITH THE SATELLITE, SIRIUS IS PUTTING UP A NEW SATELLITE IN '09, AND WE HAVE ONE PAYMENT -- BEFORE THAT SATELLITE, WE WILL BE FREE CASH FLOW POSITIVE.

    Remember mel made this statement before all the new rev sources we have now and with 300 mil EBITDA for year we wouldn't be FCF +,as you can see with 108 mil EBITDA in 1Q was only neg 4mil FCF...

    hmmm . . . hmmmm . . . hmmm . . . still a tough call here . . . suppose Homer's scenario of a 7/1 expensing date applies? Also, I am a bit reluctant to interpret the quote as implying "before launch"

    Now I could see how you come to the conclusion that "putting up a new satellite" potentially means the launch payment only and not the capital cost of the sat itself . . . and I dig your assessment of the "business sense" argument for how the payments would be structured . . . but, hypothetically speaking, what if the bird you just put-up but have not yet taken control of does not perform to spec and you never actually take control

    Is there no portion of the capital cost that Loral makes good on? (I suppose there could be an escrow reserve for a final payment that might not get released)

    I don't know Irish . . . I just don't know; I do feel strongly that we will be cutting a check for more than just launch . . . but when and how much I do not know . .

    How come Tyler won't weigh-in on this??

  4. #14
    JohnnyIrishXM is offline
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    This should end Capex for Sats for good,found this in the 2Q report,SXM must have floated a bond for construction of the fm-5 and XM-5 and XM-6 sats because they are expensing it in interest and cap interest in reports,posting it here..

    http://www.sec.gov/Archives/edgar/da...67355/d10q.htm

    page 10-12 of 10-Q report


    --------------------------------------------------------------------------------

    SIRIUS XM RADIO INC. AND SUBSIDIARIES

    NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - Continued

    (Dollar amounts in thousands, unless otherwise stated)



    (8) Property and Equipment

    Property and equipment, net, consists of the following:




    June 30,
    2009 December 31,
    2008
    Satellite system
    $ 1,423,591 $ 1,414,625
    Terrestrial repeater network
    108,823 109,228
    Leasehold improvements
    43,016 42,878
    Broadcast studio equipment
    49,565 49,186
    Capitalized software and hardware
    134,800 132,555
    Satellite telemetry, tracking and control facilities
    56,441 56,217
    Furniture, fixtures, equipment and other
    58,940 57,995
    Land
    38,411 38,411
    Building
    56,302 56,392
    Construction in progress
    567,637 474,716

    Total property and equipment
    2,537,526 2,432,203
    Accumulated depreciation and amortization
    (846,662 ) (728,727 )

    Property and equipment, net
    $ 1,690,864 $ 1,703,476


    Construction in progress consists of the following:




    June 30,
    2009 December 31,
    2008
    Satellite system
    $ 543,103 $ 449,129
    Terrestrial repeater network
    18,747 19,070
    Leasehold improvements
    4 —
    Other
    5,783 6,517

    Construction in progress
    $ 567,637 $ 474,716


    Depreciation and amortization expense on property and equipment was $57,477 and $27,113 for the three months ended June 30, 2009 and 2008, respectively, and $119,413 and $54,019 for the six months ended June 30, 2009 and 2008, respectively.

    Satellites

    SIRIUS’ initial three orbiting satellites were successfully launched in 2000. Our spare SIRIUS satellite was delivered to ground storage in 2002. SIRIUS’ three-satellite constellation and terrestrial repeater network were placed into service in 2002. On June 30, 2009, SIRIUS launched a satellite into a geostationary orbit. This satellite will be put into service with SIRIUS’ other three orbiting satellites.

    SIRIUS has an agreement with Space Systems/Loral for the design and construction of a sixth SIRIUS satellite. In January 2008, SIRIUS entered into an agreement with International Launch Services to secure a satellite launch on a Proton rocket. This agreement provides us the flexibility to defer this launch date or to cancel that launch upon payment of a cancellation fee.

    XM owns four orbiting satellites; two of which, XM-3 and XM-4, currently transmit the XM signal 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.

    Space Systems/Loral has constructed a fifth satellite, XM-5, for use in the XM system. XM has entered into an agreement with Sea Launch to secure a launch for XM-5. In June 2009, Sea Launch filed for bankruptcy protection under Title 11 of the United States Code and as a result, XM recorded a charge of $24,196 to Restructuring, impairments and related costs in our unaudited consolidated statements of operations for amounts previously paid, including capitalized interest.



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  5. #15
    Sirius Roadkill is offline
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    Excellent find Irish!!!

    That puts it to bed . .

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