SiriusBuzz and SatelliteRadioPlayground Announce Live Coverage of Sirius XM Q1, 2010 Conference Call
SiriusBuzz and SatelliteRadioPlayground are pleased to announce live coverage of Sirius XM’s Q1 2010 conference call. The coverage begins at 7:00 AM EST, an hour before Sirius XM’s call. The team will be using CoverItLive to deliver streaming content as it happens. Whether you view from SiriusBuzz, or SatelliteRadioPlayground you will be treated to the exact same content. The collaborative effort will give satellite radio enthusiasts an important aspect that has been missing in this sector. Varied perspective in one place. This special event allows you to garner instant reactions while listening to the call. Get news, opinions and insight from Spencer Osborne, Demian Russian, Charles LaRocca, Newman, and Dennis “Cos” Costa.
Join SiriusBuzz and Satellite Radio playground for the most in depth analysis and discussion on Sirius XM’s Q1 results. From the moment Sirius XM releases the numbers to the last analysts question, we will have it covered. Be sure to check back for further details.
Position – Long Sirius XM Radio
I just received my 2009 annual report from Sirius which contained a nice letter from Mel. The company’s performance over the last year was impressive as he noted. Still, Mel wasn’t ready to talk profitability, and now I see why.
He said they launched a new satellite in 2009, with another one going up in 2010, and yet another one in 2011. With a price tag of $260 million each, these new birds will weigh heavy on the balance sheet. But after that, spending on infrastructure and content should plateau and that glaring red EPS number should finally turn green. I though we would be there by now, but we’ll just have to wait. In the mean time I continue to listen Howard, Robin, and their band of misfits.
EPS means absolutely nothing in media. It’s all about EBITDA.
EBITDA is the primary measure to watch. In particular,
a company’s creditors, are most interested in this since it is essentially the income that a company has free for interest payments. Therefore a healthy growth in EBITDA can lead to further credit upgrades…something a company that is carrying a large debt load is of particular importance. I am looking for a very healthy growth in EBITDA to be announced at the CC and credit upgrades to follow shortly thereafter as SXM debt load continues to approach investment grade.
I think you both are nuts EBITDA is a terrible figure to use at this time specifically because of their debt and the interest they are paying on it. Now that does not mean you cant gleem some information from it because once you take out the interest then you can then gather what the FCF, and EPS will be but then again those numbers will be there in the CC anyway. You two better get a grip on reality and the interest and CAPEX cost that this company has. Until those cost are brought down by a huge amount EBITDA is ALMOST useless at this time.
EBITDA is the standard valuation method in media for over 2 decades now. There is not one electronic media company valued on EPS by Wall Street. Not one in 2 DECADES!
It is absolutely unbelievable to still read about EPS on the net after 2 DECADES but it still shows up.
Every single analyst report coming out on Sirius has an EV/EBITDA multiple target. Every single one. And there are plenty of media analysts covering Sirius now.
Question to Spencer – Now that Sirius is Nasdaq compliant WHERE IS JESSICA’S COVERAGE FROM MERRILL LYNCH?
MUSCLE, even you can agree that SIRIXM and other nedia companies are way different. The cost structures are nothing alike. Also I suggest you check your history because until the company changed from FCF to EBITDA the anayst were all using FCF as a way to estimate were the company was. As a matter of fact until just recently even the company barely mentioned EBITDA, it was always FCF.
P.S. Why dont you ask Tyler about this, I am sure he remembers the arguements we all had with FrontMed on using FCF and not GAAP, when they were using FCF as the main metric.
Mel always preaches Free Cash flow for every company. But you war 100% wrong in what the analysts were using for a valuation metric before Sirius had EBITDA. They were using discounted cash flow which is future EBITDA ( since Sirius didn’t have any EBITDA at the time.
You really need to get you analyst valuations down – Cash Flow is EBITDA, not Free Cash Flow. Discounted cash flow is future EBITDA discounted for time. It is not Free Cash Flow.
Not only is Sirius a media compnay it is probably the purest play media company out there with 95%+ of revenue coming from consumer subs to audio entertainment.
Every single analyst has a EV/EBITDA valuation. And all you guys think you know better than Wall St and have your own EPS valuation methods. I think you guys are nuts not to follow Wall Street. You see a Reuters headline saying EPS and you all jump. 20 Freakin Years of EBITDA in media and I still read EPS. It’s unbelievable.
EXACTLY, Also that 260 million EACH is not the total cost to the satellites. They actually cost almost a billion a piece (EST. 870 million), when you consider the cost of, build, launch, and insurance.