XM Radio 2009 Annual Report Download - page 4
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stockholders. However, I firmly believe that we have
the initiatives in place to achieve the success that our
stockholders deserve. As the economy improves and
we continue to execute our business plan, we believe it
will be reflected in an improved stock price.
With the merger behind us, we have integrated the two
companies and continue to realize the benefits of that
transaction every day. Last year’s investment by
Liberty Media and other opportunistic refinancings
improved our liquidity and our debt maturity profile.
We successfully launched a SIRIUS satellite last year
and are slated to launch a new higher powered satellite
later this year and another in 2011. These new satel-
lites will improve the resiliency of our services and our
subscriber listening experience. Significantly, after
2011, our satellite expenditures will fall off sharply,
which will have a positive impact on our free cash
flow.
Most importantly, we are well positioned to benefit as
the auto industry rebounds and the broader economy
regains its footing. We plan to add over 500,000 net
subscribers this year, exceeding our previous high of
19 million subscribers at the end of 2008. We have also
announced that we expect full-year revenue of over
$2.7 billion for 2010. In addition, free cash flow is
expected to remain positive in 2010 and we expect
2010 adjusted income from operations to increase by
approximately 20% to $550 million.
As we continue to focus on growing cash flow and
improving our other key metrics, we will be aggressive
in attacking our balance sheet and selectively refi-
nancing our long-term debt in opportunistic transac-
tions. As we reduce indebtedness, we are also reducing
risk. This adds to our strong cash flow generation and
creates stockholder value. As we increase our financial
flexibility, we increase our operational flexibility,
which will allow us to grow our top line.
We are pleased to see things moving in the right
direction, which I believe is in large part due to the
commitment and dedication of everyone who works
here. From on-air talent to operations staff, we don’t
just have the best radio on radio, we have the best
group of professionals working in radio. I’m honored
to serve with every one of them.
I am equally grateful for the support of my fellow
stockholders. We come to work every day wanting to
deliver for you. I believe we have the team, tools and
talent to achieve great things for our owners and
listeners. We are looking forward to the year ahead
and hope that you are as well.
Sincerely,
MEL KARMAZIN
Chief Executive Officer
SIRIUS XM Radio