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SIRIUS
SATELLITE RADIO, INC. (NasdaqNM: SIRI) |
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Dear Reader,
What does the NFL know that you don’t?
That’s right, the NFL, National Football League to be precise,
which is kicking off its much awaited season in a few days.
The league, more popular today than ever, has signed an agreement
with the No. 2 satellite radio provider Sirius Satellite
Radio Inc. (NasdaqNM: SIRI) to offer exclusive and extensive
NFL content to Sirius’s burgeoning subscription audience.
The deal, as reported by Sirius, will provide its football-loving
subscribers with ‘round the clock football news, access to audio
of either the home or away broadcasts as well as specialized content
for fan favorites like fantasy football.
But the question is, “Why Sirius, Mr. NFL? Why not big boy XM Satellite
Radio (NasdaqNM: XMSR) and its vastly larger audience and more established
business model?
The answer, besides a whole lot of cash from Sirius, is we don’t
know - but the fact that we are asking the question beckons us to
research more, to dig deeper and see if we can see what the NFL
must have seen. Meanwhile, I’m going to Best Buy today to
pick up a Sirius radio package because I don’t want to miss a St.
Louis Rams game and I’m out of their market. I can’t do that
with XM and this is the deciding factor for me as to which satellite
radio company to choose. Sirius has the NFL locked up for
seven years.
XM and Sirius both conjure the lurid dreams of the “Next Internet”
investors who see these plays as new frontiers for whom enormous
returns will emerge. And they may be right… albeit not as
instantly as they might hope.
But something dynamic is happening with satellite radio and it’s
had our attention for some time. We’re going to keep an eye
on this market for you, our dear reader, and we’re going to kick
if off with the NFL’s pick of the two pup litter, Sirius.
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About
Sirius Satellite Radio, Inc. |
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Sirius Satellite Radio Inc.
is a provider of satellite radio service, offering over 100 Streams
to subscribers throughout the continental United States, including
61 streams of commercial-free music and over 40 streams of news,
sports, talk, entertainment, traffic, weather and children's programming.
The Company's 61 original streams of commercial-free music are produced
at its national broadcast studio in New York City, and cover most
genres of music. Its non-music streams include programming
from CNN, ESPN, NPR, FOX News, The Weather Channel and traffic for
America's top 20 markets from Westwood One, a provider of traffic
reports. Sirius is also a satellite radio provider of live sports
programming, featuring up to 40 National Hockey League and National
Basketball Association games each week, and has agreed to broadcast
all National Football League (NFL) games and become the Official
Satellite Radio Partner of NFL.
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Recent News from SIRI |
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News Release
Source: SIRIUS
Monday August 2,
11:00 am ET
SIRIUS NFL
Radio Goes Live August 2, Marking Launch of First 24/7 Radio Channel
Dedicated to the NFL
Programming
Lineup Includes In-Studio Talk Shows Hosted by Chris Carter, Dan
Reeves, John Riggins,
Shannon Sharpe
and others
NEW YORK, Aug. 2 /PRNewswire-FirstCall/
-- SIRIUS (Nasdaq: SIRI - News), the premium satellite radio
provider known for delivering the very best in commercial-free music
and sports programming to homes and cars across the country, today
announced that SIRIUS NFL Radio, the first 24/7 year-round radio
channel devoted entirely to the National Football League, will go
live on Monday, August 2. SIRIUS also announced the programming
lineup for its inaugural season.
SIRIUS NFL Radio will provide
the most comprehensive, in-depth radio coverage of the NFL, including
daily live shows hosted by legendary NFL figures, including Cris
Carter, Dan Reeves, John Riggins and Shannon Sharpe. Each show will
feature team-by-team reports, expert analysis, exclusive conversations
with team personnel and sports insiders - and best of all, phone
calls from football fans from around the country. The channel will
also cater to fantasy football fans with a show dedicated to fantasy
leagues every Friday.
SIRIUS NFL Radio complements SIRIUS
NFL Sunday Drive, the new programming package that lets subscribers
choose from a full slate of live radio game broadcasts from all
around the NFL each Sunday.
"Football fans -- real football
fans -- will get the best coverage of the NFL, every day of the
year on SIRIUS NFL Radio," remarked Steve Cohen, SIRIUS Director
of NFL Programming. "We have spared no effort in assembling the
wisest, smartest names in pro football for our on-air lineup. SIRIUS
subscribers will be the best-informed football fans around!"
"SIRIUS NFL Sunday Drive will
enhance football fans' fall Sunday rituals, because wherever they
are -- at the beach, in the car or on the patio -- they can now
follow every play of their favorite teams and players with SIRIUS,"
said Scott Greenstein, President of Entertainment and Sports, SIRIUS.
"We've got something for every fan, including the opportunity to
choose from either the home or away broadcast of the same game.
SIRIUS NFL Sunday Drive and SIRIUS NFL Radio are two great ways
to enjoy the NFL season this fall."
This is an excerpt - to read the entiry news release with disclaimers:
Click
Here
Press Release
Source: SIRIUS Satellite
Radio
Monday August 2,
8:30 am ET
Two-Time Super
Bowl MVP Tom Brady and Emmy-Winning Broadcaster John Madden 'Call
the Plays' for SIRIUS Satellite Radio NFL Ad Campaign
Campaign Breaks
August 2 to Promote NFL Sunday Drive, SIRIUS' Comprehensive Play-by-Play
Package
NEW YORK, Aug. 2 /PRNewswire-FirstCall/
-- Super Bowl MVP quarterback Tom Brady of the New England Patriots
is teaming up with 14-time EMMY Award- winning football analyst
John Madden in a new ad campaign for SIRIUS Satellite Radio (Nasdaq:
SIRI - News), the Official Satellite Radio Partner of the NFL. The
campaign will officially debut on August 2.
The SIRIUS NFL Sunday Drive campaign,
including television, radio and print ads will run on a variety
of NFL and sports media all the way through the post-season. The
humorous television spot, titled "Breaking News," features Brady
in his car showing off his SIRIUS receiver to Madden. Brady's real-life
wide receivers, Deion Branch, Troy Brown and David Givens appear
in the spot, bewildered at Madden's "breaking news" that a SIRIUS
Satellite Radio is Brady's "new favorite receiver."
The ad campaign promotes SIRIUS
NFL Sunday Drive, the new programming package that lets subscribers
choose from a full slate of live radio game broadcasts from around
the NFL each Sunday. SIRIUS NFL Sunday Drive complements SIRIUS
NFL Radio -- the only 24/7/365 channel dedicated exclusively to
pro football -- launching on August 2.
"This campaign will highlight
SIRIUS' unique ability to broadcast the entire NFL every week through
SIRIUS NFL Sunday Drive, as well as show the ease and flexibility
of satellite radio." said Mary Pat Ryan, Executive Vice President
of Marketing, SIRIUS. "And, what better way to communicate those
messages than by using two of the most well-known and respected
guys in the NFL, with Tom Brady and John Madden."
This is an excerpt - to read the entiry news release with disclaimers:
Click
Here
For all the latest news from SIRI: Click
Here
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The
Sirius Business Model |
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Sirius Satellite Radio Inc., from its orbiting
satellites, directly broadcasts various channels of digital-quality
audio. The Company provides its services throughout the continental
United States for a monthly subscription fee. The Company
delivers various streams of commercial-free music in every genre,
as well as streams of news, sports, weather, talk, comedy, and public
radio.
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Sirius Management Team and Directors |
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aa
Joseph
P. Clayton, president/CEO/ Director - Mr. Clayton, age 54,
has served as President, CEO and a director since November 2001. Mr.
Clayton served as President of Global Crossing North America, a global
internet and long distance services provider, from September 1999
until November 2001. Mr. Clayton also served as a member of the board
of directors of Global Crossing Ltd. from September 1999 until May
2002. On January 28, 2002, Global Crossing Ltd. and certain of its
affiliates filed petitions for relief under Chapter 11 of the United
States Bankruptcy Code in the United States Bankruptcy Court for the
Southern District of New York. From August 1997 to September 1999,
Mr. Clayton was President and Chief Executive Officer of Frontier
Corporation, a Rochester, New York-based national provider of local
telephone, long distance, data, conferencing and wireless communications
services, which was acquired by Global Crossing in September 1999.
Prior to joining Frontier, Mr. Clayton was Executive Vice President,
Marketing and Sales-Americas and Asia, of Thomson S.A., a leading
consumer electronics company. Mr. Clayton is a member of the board
of directors of Transcend Services Inc., a trustee of Bellarmine University
and The Rochester Institute of Technology and a member of the advisory
board of Indiana University School of Business.
Leon
D. Black, Director - Mr. Black, age 52, has been a director
since June 2001. Mr. Black is one of the founding principals of
Apollo Advisors, L.P., which manages investment capital on behalf
of institutions. He is also the founder of Apollo Real Estate Advisors,
L.P. From 1977 to 1990, Mr. Black worked at Drexel Burnham Lambert
Incorporated, where he served as Managing Director, head of the
Mergers & Acquisitions Group and co-head of the Corporate Department.
Mr. Black is a director of United Rentals, Inc., Allied Waste Industries,
Inc., AMC Entertainment Inc. and Wyndham International, Inc. Mr.
Black is a trustee of The Museum of Modern Art, Mt. Sinai Hospital,
The Metropolitan Museum of Art, Lincoln Center for The Performing
Arts, Prep for Prep, The Jewish Museum, The Asia Society, Dartmouth
College and Vail Valley Foundation.
David
J. Frear, Exec. VP and CFO - Mr. Frear has served as Executive
Vice President and Chief Financial Officer since June 2003. From
July 1999 through February 2003, Mr. Frear was Executive Vice President
and Chief Financial Officer of Savvis Communications Corporation,
a global managed service provider, delivering internet protocol
applications for business customers. >From October 1999 through
February 2003, Mr. Frear also served as a director of Savvis. Mr.
Frear was an independent consultant in the telecommunications industry
from August 1998 until June 1999. From October 1993 to July 1998,
Mr. Frear was Senior Vice President and Chief Financial Officer
of Orion Network Systems Inc., an international satellite communications
company that was acquired by Loral Space & Communications Ltd.
in March 1998. >From 1990 to 1993, Mr. Frear was Chief Financial
Officer of Millicom Incorporated, a cellular paging and cable television
company. Prior to joining Millicom, he was an investment banker
at Bear, Stearns & Co., Inc. and Credit Suisse.
Patrick
L. Donnelly, Exec. VP, General Counsel - Mr. Donnelly has served
as Executive Vice President, General Counsel and Secretary
since May 1998. >From June 1997 to May 1998, he was Vice President
and deputy general counsel of ITT Corporation, a hotel, gaming and
entertainment company that was acquired by Starwood Hotels &
Resorts Worldwide, Inc. in February 1998. >From October 1995 to
June 1997, he was assistant general counsel of ITT Corporation.
Prior to October 1995, Mr. Donnelly was an associate at the law
firm of Simpson Thacher & Bartlett LLP.
Scott
Greenstein, President of Entertainment and Sports - Mr./ Greenstein
was named Chairman of USA Films, a motion picture production, marketing
and distribution company, in 1999 where he oversaw all aspects of
the company's film activities and supervised its home entertainment
business through USA Home Entertainment, which handled home video/DVD
distribution for the NFL, NHL, NBA, and MLB. USA Films was a division
of USA Networks, Inc., now known as InterActive Corp. Under
Greenstein, USA Films' first in-house supervised production to be
released was Steven Soderbergh's "Traffic," which earned many accolades
and multiple nominations, including Best Picture nominations for
the Golden Globe Awards and the Academy Awards. Traffic won four
Academy Awards, including Best Director and Best Supporting Actor,
and two Golden Globe Awards.
James
P. Holden, Director - Mr. Holden, age 52, has been a director
since August 2001. From October 1999 until November 2000, Mr. Holden
was the President and Chief Executive Officer of DaimlerChrysler
Corporation, a subsidiary of DaimlerChrysler AG, one of the worlds
largest automakers. Prior to being appointed President in 1999,
Mr. Holden held numerous senior positions within Chrysler Corporation
during his 19-year career at the company.
For a complete
listing and bios on Officers & Directors -
Click
Here
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Financial Highlights From Reuters |
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| Exchange |
NasdaqNM |
| Sector |
Services |
| Industry |
Broadcasting & Cable TV |
| Employees |
(last reported count): 375 |
SIRI is engaged in the development of a subscription- based satellite
radio system for the nationwide broadcast channels of commercial-free,
digital-quality music programming and nearly seamless signal coverage
across the U.S. For the 6 months ended 6/04, revenues totaled
$22.5M, up from $3.7M. Net loss applic. to Common totaled $280.9M,
up from $60M. Results reflect subscription base growth, offset by
the absence of debt restructuring income.
Financial Statistics
| Revenue (ttm) |
31.73M |
| Revenue Per Share (ttm) |
0.028 |
| Revenue Growth (lfy)³ |
1499.00% |
| Gross Profit (ttm)² |
-73.90M |
| EBITDA (ttm) |
-386.04M |
| Net Income Avl to Common (ttm) |
-535.32M |
| Diluted EPS (ttm) |
-0.477 |
| BALANCE SHEET |
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| Total Cash (mrq) |
639.96M |
| Total Cash Per Share (mrq) |
0.52 |
| Total Debt (mrq)² |
426.04M |
| Total Debt/Equity (mrq) |
0.347 |
| Current Ratio (mrq) |
5.274 |
| Book Value Per Share (mrq) |
0.993 |
Common Stock $.001 Par, 8/04, 2.5B auth., 1,236,800,145 issd.
Insiders own 2% (incl. 7.4M options). IPO 9/94, 675K Units
(2 Com. + 1 War.) @ $10 by First Marathon Securities. PO 11/97,
2.8M shares @ $18 by Merrill Lynch. PO 9/99, 3M shs @ $24.75 by
Merrill Lynch. PO 2/01, 10M shs @ $21 by Lehman Bros. PO 1/02, 16M
shs @ $9.85 by Lehman Bros.
Equity Statistics
| 52-Week High (5-Jan-04) |
4.20 |
| 52-Week Low (11-Sep-03) |
1.55 |
| 50-Day Moving Average |
2.59 |
| 200-Day Moving Average |
2.86 |
| Average Volume (3 month) |
32,468,590 |
| Average Volume (10 day) |
26,406,000 |
| Shares Outstanding |
1.24B |
| Float |
1.22B |
| % Held by Insiders: |
1.40% |
| % Held by Institutions |
28.73% |
| Shares Short (as of 9-Aug-04) |
80.55M |
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To view the latest 10Q from SIRI on the SEC Web site,
Click
Here
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CONTACT |
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Headquarters
Sirius Satellite Radio Inc
1221 Avenue of the Americas, 36th Floor
New York, NY 10020
Phone: (212) 584-5100
Fax: (212) 899-5050
Email: investor_relations@sirius-radio.com
Web Site: http://www.siriusradio.com/
***
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completeness or correctness. Past performance is no guarantee
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information purposes only and should not be used as the basis for
any investment decision. MP has not
been paid by Sirius Satellite Radio Inc. or any other person or
entity in any form for preparation and distribution of this report
and its owners, affiliates, employees do not currently own shares
in SIRI. However, at some point in the future MP, its owners,
affiliates, and/or employees may buy shares and may also sell shares
of SIRI without further notice. Therefore, MP makes no warranty
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in securities mentioned. Information contained herein may
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consent of Market Pathways Financial Relations Incorporated.
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