XM Radio 2010 Annual Report Download - page 5

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SiriusXM continues to offer a compelling investor
rationale.
We have improving EBITDA, declining satellite cap-
ital expenditures, reduced interest payments, and,
thanks to our legacy net operating losses, the prospect
of no meaningful income taxes for years to come, all of
which will contribute to our free cash flow growth. We
believe we have the assets, financial flexibility, and the
business savvy to achieve our growth expectations and
we expect to continue to be a leader in the audio
entertainment industry in the years ahead.
As we look for the best ways to put our increasing cash
position to work, it is important to note that we are
closing in on our target leverage ratio of three times
adjusted EBITDA. We are always looking for oppor-
tunities that may provide a long-term strategic advan-
tage for our stockholders, but have yet to see a new
technology or a company that we believe offers this.
The Board will be continuing to review opportunities
to put any excess cash to work, and I would expect that
we may return capital to stockholders over time.
At December 31, 2010, SiriusXM had an equity cap-
italization of over $10 billion. Our equity capitaliza-
tion at December 31, 2010 was greater than
approximately 95% of the companies listed on The
NASDAQ Global Select Market. Our common stock is
one of the most liquid securities on NASDAQ in terms
of average daily volume and total volume, and the
stock is owned by substantial institutional investors. In
2010, our common stock was also added to the NAS-
DAQ Q-50 Index, an index designed to track the
performance of the fifty securities that are next in line
to replace the securities currently included in the
NASDAQ-100 Index.
We have an outstanding team of employees who are
focused on increasing revenue, managing costs, deliv-
ering profits and innovating. Everyone recognizes that
our success starts by improving the subscriber expe-
rience — whether through new programming,
expanded access or improved customer service. The
media industry is rife with competition, but we are
confident in our services. We will continue to push
ourselves to offer listeners the best radio on radio
everywhere and anywhere they want to listen.
It is an honor to serve the Company and a thrill to think
about what we can accomplish moving forward.
Thank you for your confidence and support.
Sincerely,
MEL KARMAZIN
Chief Executive Officer
SiriusXM