Sirius XM Holdings Inc. (SIRI), has reported a 14.26 percent fall in profit for the quarter ended Jun. 30, 2015. The company has earned $102.85 million, or $0.02 a share in the quarter, compared with $119.96 million, or $0.02 a share for the same period last year.
Revenue during the quarter grew 8.49 percent to $1,123.21 million from $1,035.34 million in the previous year period. Gross margin for the quarter contracted 887 basis points over the previous year period to 39.63 percent. Total expenses were 80.46 percent of quarterly revenues, up from 72.51 percent for the same period last year. That has resulted in a contraction of 795 basis points in operating margin to 19.54 percent.
Operating income for the quarter was $219.43 million, compared with $284.58 million in the previous year period.
Operating cash flow improves
Sirius XM Holdings Inc. has generated cash of $712.34 million from operating activities during the first half, up 20.31 percent or $120.27 million, when compared with the last year period.
The company has spent $65.20 million cash to meet investing activities during the first six months as against cash outgo of $33.10 million in the last year period.
The company has spent $500.82 million cash to carry out financing activities during the first six months as against cash outgo of $523.80 million in the last year period. It has made net debt repayment of $598.80 million. It has spent net of $1,084.19 million on repurchase of common stocks.
Cash and cash equivalents stood at $294.05 million as on Jun. 30, 2015, up 72.99 percent or $124.07 million from $169.98 million on Jun. 30, 2014.
Working capital remains negative
Working capital of Sirius XM Holdings Inc. was negative $960.91 million on Jun. 30, 2015 compared with negative $1,398.51 million on Jun. 30, 2014. Current ratio was at 0.63 as on Jun. 30, 2015, up from 0.49 on Jun. 30, 2014.
Days sales outstanding went down to 10 days for the quarter compared with 18 days for the same period last year.
Days inventory outstanding has decreased to 2 days for the quarter compared with 3 days for the previous year period.
Debt moves up
Sirius XM Holdings Inc. has witnessed an increase in total debt over the last one year. It stood at $5,116.41 million as on Jun. 30, 2015, up 10.64 percent or $492.12 million from $4,624.29 million on Jun. 30, 2014. Total debt was 60.85 percent of total assets as on Jun. 30, 2015, compared with 53.62 percent on Jun. 30, 2014. Debt to equity ratio was at 11.44 as on Jun. 30, 2015, up from 3.11 as on Jun. 30, 2014. Interest coverage ratio deteriorated to 2.91 for the quarter from 4.21 for the same period last year.
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