By Demian Russian
SiriusXM CEO Mel Karmazin
Sirius XM Radio (NASDAQ:SIRI) released its Q1 2012 financial and operating results this morning and discussed those results during a conference call held at 8:00AM ET. The satellite radio service provider reported some record breaking numbers, including 405,000 net new subscribers for the quarter — the highest reported subscriber growth for the company in any Q1 since the 2008 merger of Sirius and XM.
The company also posted $805 Million in Quarterly Revenue, up 11% year-over-year and also a new record. Other highlights included Net Income of $108 Million ($0.02 per diluted share), which is up 38% year-over-year, Adjusted EBITDA of $208 Million, up 15% year-over-year, and Free Cash Flow of $15 Million, up from (-$17) million in the first quarter of 2011, the first time the company has ever reported a positive Free Cash Flow number in a first quarter.
All of this was possible while also reporting a decrease in self-pay monthly churn year-over-year, from 2.0% to 1.9%, which is also notable because this is the first quarter that subscribers were impacted by the price increase Sirius XM instituted on January 1st, 2012. The new vehicle consumer conversion rate remained stable at 45%. In light of a strengthening auto sales channel, Sirius XM management also raised their 2012 subscriber growth guidance from 1.3 Million to 1.5 million. Read More
By John Gerard Lewis
Are you a “Home Gamer”?
Jim Cramer says you are. That’s how the ubiquitous CNBC Pied Piper refers to his viewers. And it’s not an altogether faulty label – Cramer is indeed urging them to play a game.
Many of the Home Gamers probably don’t recognize it as playtime, because they think they’re getting astute investment advice. They’re spellbound by this whirling dervish who rattles off sophisticated jargon so fast that they can’t decipher what he’s saying even if they do understand the jargon (which many of the Home Gamers surely don’t). But that actually makes him even more impressive, because for that talent alone he is clearly a financial genius – never mind the articulatory blur.
Since so many people at home don’t know what to do with their money, and this captivating maestro is right there on TV every night, then of course it makes sense to just kick back in the recliner after dinner and do what he says. A free, daily financial adviser, all from the comfort of home!
Jim Cramer and CNBC have turned the time-honored concept of prudent investment advice on its head. Cramer, as he is simply known (like Cher or Madonna – and you might as well get your advice from them), expresses almost no regard for the tried and true tenets of personal investing. He’s a former hedge fund manager, and he spews “advice” as if the Home Gamers are too. Read More