No Surprises at Sirius XM Holder Meeting

Sirius XM (SIRI) held its annual shareholder meeting Wednesday in New York, although nothing out of the satellite radio company surprised investors.

The New York-based company, formed by the July 2008 merger between Sirius and XM Satellite Radio, once again told stockholders it expects pro forma adjusted earnings before interest, tax, depreciation and amortization, or EBITDA, of $350 million or above in 2009.

When Sirius XM reported first-quarter earnings earlier this month, the company increased its guidance for adjusted EBITDA to above $350 million from its previous guidance of more than $300 million.

According to slides from the presentation included in a filing with the Securities and Exchange Commission, Sirius XM's main priority in 2009 is to cut costs. Beyond this year, the company's management will focus on cash flow.

Looking ahead, the company said the concentration on free cash flow and EBITDA will impact subscriber growth. Sirius XM noted that its Internet streaming service is no longer free for satellite radio subscribers, while the family plan has been upped in price to $8.99 a month from $6.99 a month.

Near-term concerns include the rapid drop in U.S. auto sales, an increasing churn rate and debt, the company said. Sirius XM said that in addition to cost cutting and cash flow growth, management will focus on growing revenue, managing churn and positioning the company for a rebound in auto sales.

Sirius XM also outlined its debt maturities, with $339 million set for this year, $180 million in 2010, $632 million in 2011, $485 million in 2012, $1.27 billion in 2013, and $555 million in 2014.