Sirius XM Delays Annual Report
Sirius XM Radio announced today that they will be delaying their annual report which would have normally been due today. The company will now report operational results on March 17, 2009 in a conference call. The SEC filings of the report will be issued no later than March 17th.
SIRIUS XM noted that senior management had been focused on the recent refinancing transactions and therefore needs additional time to complete its Form 10-K. While the refinancing was great news, delays in annual report could frustrate investors, and by extension hold the stock price in a more narrow range than initially hoped for.
Position – Long Sirius XM Radio
If it were good news they would have released it Feb27th that daye then moved to March 5th now March 17th.The same would be true for bad news regarding Q4 earnings.
A hunch is that there will be an announcement of some sort on that day-What is it I leave to all the smart people.
Based on the current economic conditions, I’m guessing subscriber grow with be below expections, however, the financials will be better than expected. lifetime subs and internet subs (soon), will compensate for lower sub rates. I predict they will stich with their 2009 guidance. Cross marketing with DirecTV will be huge.
I wonder if this make sense? What delay bad news? what would be the point?
Everything rides on the audit of the Q4 and annual report – I believe that the company is working with KPMG(auditor) and the holders of the May debt to try and make sure the “going concern” verbage does NOT have to be included. The entire refinance hinges upon that and it may well be the reason for the delay.
Amazing, just amazing… Melvin, you definately have a top-notch organization there. Only time things run “on-time” is in issuing Bonuses to Stern and Melvin. Those were never delayed.
How ’bout just reporting the facts, and if you must, revise them at a future date?
Part of me thinks that half of N.Y. City will be drunk on the 17th, thus a perfect timeframe for Melvin to hold a CC.
I believe it is to give as much time as possible to any re-negotiations of the existing high priced contracts. Once they report, any bargaining leverage they had, i.e., threat of bankruptcy, would be gone. I believe the earning report and iPhone app news, etc., will be good and once that info is released, the leverage is gone.
This delay is all about avoiding a ‘going concern’ opinion from KPMG. To do that they need to extend the 5/09 debt with JPM and UBS. For the banks it is hard to extend debt with the going concern opinion hanging out there, so someone has to blink. My bet is the banks blink, but only after a hefty double digit rate increase, and some warrants maybe. These are secured creditors so they are crucial.
The delay also gives management time to get the consolidated statements in order. When they report on the 17th it will be late enough in the Q1 to get a good picture on their cash position, and how their new tiered rate structure is working.
The Saint Patrick’s day release my prove timely for many SIRI investors.