XM Radio 2014 Annual Report Download - page 109

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SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share data) 2014 2013 2012
For the Years Ended December 31,
Revenue:
Subscriber revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,554,302 $3,284,660 $2,962,665
Advertising revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,982 89,288 82,320
Equipment revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,661 80,573 73,456
Other revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421,150 344,574 283,599
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,181,095 3,799,095 3,402,040
Operating expenses:
Cost of services:
Revenue share and royalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . 810,028 677,642 551,012
Programming and content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297,313 290,323 278,997
Customer service and billing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370,585 320,755 294,980
Satellite and transmission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,013 79,292 72,615
Cost of equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,397 26,478 31,766
Subscriber acquisition costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493,464 495,610 474,697
Sales and marketing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336,480 291,024 248,905
Engineering, design and development . . . . . . . . . . . . . . . . . . . . . 62,784 57,969 48,843
General and administrative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293,938 262,135 261,905
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266,423 253,314 266,295
Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,061,425 2,754,542 2,530,015
Income from operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,119,670 1,044,553 872,025
Other income (expense):
Interest expense, net of amounts capitalized. . . . . . . . . . . . . (269,010) (204,671) (265,321)
Loss on extinguishment of debt and credit facilities, net . . — (190,577) (132,726)
Interest and investment income . . . . . . . . . . . . . . . . . . . . . . . . . 15,498 6,976 716
Loss on change in value of derivatives . . . . . . . . . . . . . . . . . . (34,485) (20,393) —
Other (loss) income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (887) 1,204 (226)
Total other expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (288,884) (407,461) (397,557)
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830,786 637,092 474,468
Income tax (expense) benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (337,545) (259,877) 2,998,234
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 493,241 $ 377,215 $3,472,702
Foreign currency translation adjustment, net of tax . . . . . . . (94) (428) 49
Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 493,147 $ 376,787 $3,472,751
Net income per common share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.09 $ 0.06 $ 0.55
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.08 $ 0.06 $ 0.51
Weighted average common shares outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,788,944 6,227,646 4,209,073
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,862,020 6,384,791 6,873,786
See accompanying notes to the consolidated financial statements.
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