SiriusXM Canada Reports Q2 Fiscal 2014 Results

• Revenue of $75.5 million, up 6.8% year-over-year
• Adjusted EBITDA** of $20.1 million, up 5.1% year-over-year
• Net Income of $4.4 million, up 8.3% year-over-year
• Total Subscribers of 2,387,600; year-over-year net additions of 187,600
• Announces intention to refinance its outstanding notes due 2018, representing a principal amount of approximately $130.8 million

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TORONTO, April 14, 2014 /CNW/ - Sirius XM Canada Holdings Inc. ("SiriusXM Canada" or the "Company") (TSX: XSR), parent of Sirius XM Canada Inc., today released unaudited financial results for the quarter ended February 28, 2014 (Q2 FY2014) prepared in accordance with International Financial Reporting Standards (IFRS). A summary of IFRS financial results for Q2 FY2014 is attached¹.  All results are reported in Canadian dollars unless otherwise stated.

Q2 FY2014 Financial Highlights

• Revenue grew 6.8% to $75.5 million from $70.7 million in Q2 2013
• Adjusted EBITDA increased 5.1% to $20.1 million from $19.1 million in Q2 2013
• Net Income increased 8.3% to $4.4 million from $4.1 in Q2 2013
• Cash from operations decreased $3.5 million to $13.2 million from $16.7 million in Q2 2013
• Self-Paying Subscribers increased 7.8% to 1.8 million from 1.6 million at February 28, 2014
• Paid cash dividends totaling $26.2 million during the quarter

Year-to-date FY2014 Financial Highlights

• Revenue grew 8.8% to $151.9 million from $139.6 million in the same period in FY2013
• Adjusted EBITDA increased 7.2% to $39.7 million from $37.1 million in the same period in FY2013
• Net Income increased 7.9% to $7.9 million from $7.3 million in the same period in FY2013
• Cash from operations decreased $3.0 million to $28.8 million from $31.8 million in the same period in FY2013

"Our growth trend continued in the second quarter of 2014, which led to increases at both our top and bottom line," said Mark Redmond, President and CEO, SiriusXM Canada. "While the most significant growth opportunity in the near term remains in the new vehicle market, we made good progress in Q2 with our used vehicle business. We now have more than 1,200 active dealers in the used vehicle program along with a rapidly growing number of trials underway. As we move through the second half of the fiscal year, our seasonally strong period, we have a number of exciting opportunities with our OEM partners, exclusive content and web-based offering to drive our subscriber and profitability levels higher."

Q2 FY2014 Programming Highlights:

• Launched the Billy Joel channel, an exclusive limited-run channel featuring the artist
• Partnered with Business News Network (BNN) for live weekday programming from Canada's most comprehensive and respected network for business news
• Provided enhancements to SiriusXM PGA Tour Radio ahead of the Masters tournament
• Marked the 8^th consecutive year as key sponsor and contributor to Juno awards, including sponsorship for the Songwriter of the Year Award
• Announced the Emerging Artist Showcase competition as part of the upcoming Boots and Hearts Music Festival in Toronto
• Treated a few lucky subscribers to tickets to attend premiere events such as the Super Bowl and Howard Stern's 60^th Birthday bash in New York

Financial and Operational Summary
Below, the Company has provided certain non-GAAP measures and industry metrics. These figures are subject to the qualification and assumptions set out in the notes to such results.

Financial *	Q2 FY2014	Q2 FY2013	YTD FY2014	YTD FY2013
	(ended Feb 28, 2014)	(ended Feb 28, 2013)	(ended Feb 28, 2014)	(ended Feb 28, 2013)
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Total Revenue	$75,466	$70,689	$151,902	$139,581
Adjusted EBITDA**	$20,083	$19,113	$39,721	$37,070
Net Income	$4,419	$4,079	$7,914	$7,337
Operating*
Self-Paying Subscribers	1,769	1,641	1,769	1,641
Total Subscribers	2,388	2,200	2,388	2,200
ARPU	$11.35	$11.60	$11.44	$11.49
Subscriber Acquisition Cost (SAC)	$40	$44	$41	$45
Cost Per Gross Addition (CPGA)	$67	$72	$68	$72

* All figures in the table above are in thousands except, ARPU, SAC and CPGA
** Adjusted EBITDA is a non-GAAP measure. A reconciliation of operating income to both EBITDA and Adjusted EBITDA is provided below.

"During the quarter we improved our EBITDA margin on a normalized basis, and generated solid free cash flow," said Michael Washinushi, Chief Financial Officer, SiriusXM Canada. "Given favorable market conditions, the Company intends to refinance its outstanding notes due 2018 representing approximately $130.8 million principal amount. If successful, this undertaking should result in significant interest expense savings."

Q2 and YTD FY2014 Results Financial Review
For Q2 FY2014 revenue was $75.5 million, up $4.8 million, or 6.8%, from $70.7 million for the same period in 2013. The year-over-year increase was due primarily to an increase in the number of subscribers offset by lower ARPU. Q2 FY2014 ARPU was $11.35, down from $11.60 in the same period in FY2013. For YTD FY2014, revenue was $151.9 million, up $12.3 million, or 8.8% from $139.6 million for the same period in FY2013. ARPU for YTD FY2014 was $11.44 compared to $11.49 for the same period in FY2013.

Q2 FY2014 Adjusted EBITDA improved to $20.1 million, representing a 5.1% increase, or $1.0 million improvement, from Adjusted EBITDA of $19.1 million in Q2 FY2013. The year-over-year increase was a result of the Company's top-line growth partly offset by increases in cost of revenue and marketing expenses. YTD FY2014 Adjusted EBITDA was $39.7 million, an increase of 7.2%, or $2.6 million, from $37.1 million for the same period in FY2013.

SAC was $40 in Q2 FY2014 down from $44 in Q2 FY2013. The decrease for the quarter was due primarily to an increase in gross additions predominantly from the used vehicle channel. SAC for YTD FY2014 was $41, down from $45 for the same period in FY2013.

CPGA was $67 in Q2 FY2014 down from $72 in Q2 FY2013 due to lower SAC and higher gross additions. CPGA for YTD FY2014 was $68, down from $72 for the same period in FY2013 due to lower SAC and higher gross additions.

In Q2 FY2014, the Company generated $13.2 million in cash from operations, used $1.1 million of cash in investing activities, and used $25.3 million of cash in financing activities. The Company generated $9.9 million in free cash flow in Q2 FY2014. Comparatively, the Company generated $16.7 million of cash in operating activities, used $9.0 million of cash in investing activities and used $26.0 million of cash in financing activities in Q2 FY2013. The Company generated $13.0 million in free cash flow in Q2 FY2013.

YTD FY2014, the Company generated $28.8 million in cash from operations, used cash of $3.9 million in investing activities and used $24.2 million of cash in financing activities. YTD FY2014, the Company generated $22.7 million in free cash flow. YTD FY2013, the Company generated $31.8 million of cash in operating activities, used $10.4 million of cash in investing activities and used $25.9 million of cash in financing activities. YTD FY2013, the Company generated $26.7 million in free cash flow.

As at February 28, 2014, SiriusXM Canada had total cash and cash equivalents and short term investments of $47.8 million, compared to $63.0 million as at November 30, 2013.

Conference Call and Webcast Details
SiriusXM Canada will hold a conference call to discuss the Company's Q2 FY2014 results on Monday, April 14, 2014 at 5.00 p.m. ET. All interested parties can join the call by dialing 647-427-7450, or 1-888-231-8191. Please dial-in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until Monday, April 21, 2014 at midnight. To access the archived conference call, please dial 416-849-0833, or 1-855-859-2056 and enter the reservation code 17974841. A live audio webcast of the conference call will be available at http://www.siriusxm.ca and www.newswire.ca. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast.  An archived replay of the webcast will be available for 365 days at www.newswire.ca.

Reconciliations
The following is a reconciliation of EBITDA and Adjusted EBITDA to Operating Income.

(In $000's)	Q2 FY2014	Q2 FY2013	YTD FY2014	YTD FY2013
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Operating income	10,317	9,828	19,154	18,457
Depreciation & Amortization	9,252	8,703	19,159	17,137
EBITDA	19,569	18,531	38,313	35,594
Stock based compensation	497	538	1,360	1,332
Fair value adjustments*	17	44	48	144
Adjusted EBITDA	20,083	19,113	39,721	37,070

* Fair value adjustment relates to reduction in revenue due to valuation of deferred revenue as per purchase price accounting

Please see the Company's Management Discussion & Analysis filed April 14, 2014 for more details on the Company's Q2 FY2014 results. The non-GAAP measures used in this press release should be used in addition to, but not as a substitute for, the analysis provided in the unaudited consolidated statement of operations and comprehensive income. Please see the Company's Management Discussion & Analysis filed April 14, 2014 for complete definition of non-GAAP measures.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.

Forward-Looking Statements
Certain statements included above may be forward-looking in nature. Such statements can be identified by the use of forward-looking terminology such as "expects," "may," "will," "should," "intend," "plan," or "anticipates" or the negative thereof or comparable terminology, or by discussions of strategy. Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance, or other statements that are not statements of fact, including with respect to the payment of dividends in the future and future performance. Although SiriusXM Canada believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct, including with respect to the ability of the Company to pay dividends in the future, the redemption of Sirius XM Canada's 9.75% Senior Unsecured Notes, and the terms, timing and conditions of any refinancing of such notes. SiriusXM Canada's forward-looking statements are expressly qualified in their entirety by this cautionary statement. SiriusXM Canada makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made, except as required by applicable law. Additional information identifying risks and uncertainties is contained in Sirius XM Canada Holdings Inc.'s filings with the Canadian securities regulators, available at www.sedar.com.

About SiriusXM Canada
Sirius XM Canada Holdings Inc. (TSX: XSR) operates as SiriusXM Canada. SiriusXM Canada, with approximately 2.4 million subscribers, is one of the country's leading audio entertainment company and broadcasts more than 120 satellite radio channels featuring premier sports, news, talk, entertainment and commercial-free music. SiriusXM Canada offers an array of content from the most recognized news and entertainment brands as well as every major sport including the NHL, NFL and MLB.

SiriusXM programming is available on a variety of devices including pre-installed and after-market radios in cars, trucks and boats, smartphones and mobile devices, and consumer electronics products for homes and offices. SiriusXM programming is also available online at www.siriusxm.ca and on Apple and Android-powered mobile devices.

SiriusXM Canada has partnerships with every major automaker and its radio products are available at more than 3,000 retail locations nationwide. To find out more about SiriusXM Canada (TSX: XSR), visit our website at www.siriusxm.ca.

CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited)
At	February 28,	August 31,
(Canadian dollars)	2014	2013
ASSETS
Current assets
Cash and cash equivalents	44,731,401	44,078,584
Short-term investments	3,022,366	5,157,798
Accounts receivable	9,191,566	13,359,446
Prepaid expenses and other	6,544,091	6,778,736
Inventory	423,384	234,349
Total current assets	63,912,808	69,608,913
Long-term prepaid expenses	100,157	100,157
Property and equipment	4,843,008	5,979,911
Intangible assets	141,319,228	152,217,165
Deferred tax assets	51,113,624	54,483,616
Goodwill	96,732,525	96,732,525
Total assets	358,021,350	379,122,287
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade and other payables	46,098,226	47,145,257
Due to related parties	7,136,100	9,620,750
Interest payable	2,420,317	2,704,449
Current portion of deferred revenue	145,505,093	144,885,091
Provisions	391,463	1,327,974
Total current liabilities	201,551,199	205,683,521
Deferred revenue	15,597,815	17,105,210
Other long-term liabilities	1,270,945	1,669,229
Due to related parties	1,496,993	2,390,608
Long-term debt	124,457,484	143,707,194
Provisions	360,304	323,112
Total liabilities	344,734,740	370,878,874
Shareholders' equity
Share capital	176,200,240	151,794,596
Contributed surplus	5,060,798	6,161,440
Accumulated deficit	(167,974,428)	(149,712,623)
Total shareholders' equity	13,286,610	8,243,413
Total liabilities and shareholders' equity	358,021,350	379,122,287

CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)
(Canadian dollars)		Three Months ended			Six Months ended
		February 28, 2014	February 28, 2013		February 28, 2014	February 28, 2013
Revenue		75,466,464	70,689,104		151,902,156	139,580,547
Operating expenses
Operating costs		55,897,927	52,158,534		113,588,738	103,987,280
Depreciation and amortization		9,251,586	8,702,594		19,159,302	17,136,596
Operating income		10,316,951	9,827,976		19,154,116	18,456,671
Finance costs, net
Interest income		165,618	174,703		345,043	341,054
Interest expense		(4,029,653)	(3,926,587)		(7,920,139)	(7,900,296)
Foreign exchange loss		(242,601)	(315,846)		(295,459)	(464,510)
Gain on revaluation of             derivative		—	—		—	51,378
Finance costs, net		(4,106,636)	(4,067,730)		(7,870,555)	(7,972,374)
Net income before income tax		6,210,315	5,760,246		11,283,561	10,484,297
Income tax expense		(1,791,154)	(1,681,297)		(3,369,993)	(3,147,384)
Net income and comprehensive income		4,419,161	4,078,949		7,913,568	7,336,913
Basic and fully diluted earnings per share		0.03	0.03		0.06	0.06

CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited)
				Total
For the six months ended	Share	Contributed	Accumulated	Shareholders'
(Canadian dollars)	Capital	Surplus	deficit	Equity
Balance, September 1, 2012	148,393,493	5,057,501	(108,196,240)	45,254,754
Net income for the period	—	—	7,336,913	7,336,913
Stock-based compensation	—	1,332,080	—	1,332,080
Dividends	—	—	(30,501,368)	(30,501,368)
Stock options exercised	1,166,684	(586,038)	—	580,646
Balance, February 28, 2013	149,560,177	5,803,543	(131,360,695)	24,003,025
Balance, September 1, 2013	151,794,596	6,161,440	(149,712,623)	8,243,413
Net income for the period	—	—	7,913,568	7,913,568
Stock-based compensation	—	1,359,697	—	1,359,697
Dividends	—	—	(26,175,373)	(26,175,373)
Stock options exercised	2,866,448	(921,143)	—	1,945,305
Conversion of convertible notes	21,539,196	(1,539,196)	—	20,000,000
Balance, February 28, 2014	176,200,240	5,060,798	(167,974,428)	13,286,610

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited)
(Canadian dollars)	Three months ended			Six months ended
	February 28, 2014	February 28, 2013		February 28, 2014	February 28, 2013
Cash provided by (used in)
OPERATING ACTIVITIES
Net income for the period	4,419,161	4,078,949		7,913,568	7,336,913
Add(deduct) items not involving cash
Amortization of intangible assets	8,538,416	8,193,125		17,188,496	15,983,134
Depreciation of property and equipment	713,170	510,762		1,970,806	1,154,755
Income tax expense	1,791,154	1,681,297		3,369,993	3,147,384
Stock-based compensation	497,267	538,431		1,359,697	1,332,080
Accrued interest	(3,871,675)	(3,605,009)		(284,132)	(17,466)
Interest accretion	504,100	235,379		750,290	469,054
Revaluation of derivative	—	—		—	(51,378)
Foreign exchange loss	174,935	406,545		236,917	513,452
Net change in non-cash working capital and deferred revenue related to operations	405,263	4,662,701		(3,721,123)	1,966,695
Cash provided by operating activities	13,171,791	16,702,180		28,784,512	31,834,623
INVESTING ACTIVITIES
Purchase of property and equipment	(134,094)	(800)		(696,062)	(31,402)
Purchase of intangible assets	(3,162,002)	(3,736,944)		(5,393,640)	(5,129,230)
Purchase of short-term investments	—	(5,306,295)		—	(5,306,295)
Maturity of short-term investments	2,063,000	—		2,063,000	—
Interest received on short-term investments	125,075	51,574		125,075	51,574
Cash used in investing activities	(1,108,021)	(8,992,465)		(3,901,627)	(10,415,353)
FINANCING ACTIVITIES
Payment of dividends	(26,175,373)	(26,434,670)		(26,175,373)	(26,434,670)
Proceeds from exercise of stock options	920,316	409,269		1,945,305	580,646
Cash used in financing activities	(25,255,057)	(26,025,401)		(24,230,068)	(25,854,024)
Net increase in cash and cash equivalents during the period	(13,191,287)	(18,315,686)		652,817	(4,434,754)
Cash and cash equivalents, beginning of period	57,922,688	64,915,681		44,078,584	51,034,749
Cash and cash equivalents, end of period	44,731,401	46,599,995		44,731,401	46,599,995

^{__________________________________
1} For a complete set of financial results including the accompanying notes please refer to the Company's filings on www.sedar.com

SOURCE: Sirius XM Canada Holdings Inc.

Morlan Reddock, Sirius XM Canada, 416-513-7418, [email protected]; Dave Mason, TMX Equicom, 416-815-0700 ext 237, [email protected]