XM Radio 2009 Annual Report Download - page 124

Unaudited Actual Results of Operations. Set forth below are our actual results of operations for the three
months ended December 31, 2009, 2008 and 2007. See footnote 20 (pages 45) for a reconciliation of net income
(loss) to adjusted income (loss) from operations for the three months ended December 31, 2009, 2008 and 2007. See
footnote 25 (page 46) for a reconciliation of net income (loss) to adjusted income (loss) from operations for the three
years ended December 31, 2009, 2008 and 2007.
2009 2008 2007
For the Three Months Ended December 31,
Unaudited
(In thousands)
Revenue:
Subscriber revenue, including effects of rebates.......... $588,048 $ 568,523 $ 227,658
Advertising revenue, net of agency fees ............... 14,467 15,776 9,770
Equipment revenue............................... 19,008 30,712 12,065
Other revenue .................................. 54,650 7,172 323
Total revenue ..................................... 676,173 622,183 249,816
Operating expenses(1):
Satellite and transmission .......................... 24,597 24,481 5,175
Programming and content .......................... 77,297 89,214 62,735
Revenue share and royalties ........................ 100,355 103,217 56,762
Customer service and billing ....................... 58,887 67,818 29,288
Cost of equipment ............................... 12,200 18,084 15,886
Sales and marketing .............................. 76,308 80,699 56,866
Subscriber acquisition costs ........................ 109,733 113,512 100,062
General and administrative ......................... 44,601 64,586 37,212
Engineering, design and development ................. 8,056 12,404 7,946
Impairment of goodwill ........................... — 15,331 —
Depreciation and amortization ...................... 77,826 82,958 27,638
Restructuring, impairments and related costs ............ 2,640 2,977 —
Total operating expenses ............................ 592,500 675,281 399,570
Income (loss) from operations ........................ 83,673 (53,098) (149,754)
Other income (expense):
Interest and investment income ...................... 1,043 (90) 4,171
Interest expense, net of amounts capitalized ............ (66,358) (61,196) (19,887)
Loss on extinguishment of debt and credit facilities, net . . . (3,879) (98,203) —
Gain (loss) on investments ........................ 1,474 (27,418) —
Other income (expense) ........................... 851 (5,664) 17
Total other income (expense) ..................... (66,869) (192,571) (15,699)
Income (loss) before income taxes ..................... 16,804 (245,669) (165,453)
Income tax expense .............................. (2,637) (175) (770)
Net income (loss) ................................. $ 14,167 $(245,844) $(166,223)
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