During the earning release of Q3 2017, David Frear, the Chief Financial Officer of Sirius XM Holdings Inc. (NASDAQ:SIRI), expressed that so far in 2017, they have deployed about $2 billion to return capital to their stockholders and to do strategic investments. In the Q3 2017, they had spent $211 million to repurchase approximately 39 million shares of company’s common stock.
Frear added that they have also returned $46 million in cash to company’s stockholders in the way of dividends in the third quarter, bringing total capital returned to investors to $257 million in the reported quarter.
In the Q3 2017, Sirius had spent around $308 million to complete its investment in Pandora, while Board of Directors approved a 10% jump in quarterly dividend. At the close of the third quarter, the debt to adjusted EBITDA was 3.3 times, and cash on hand stood at around $74 million and undrawn revolver capacity of about $1.5 billion.
The firm increased its 2017 projection for revenue, free cash flow and adjusted EBITDA. Guidance for self-pay net subscriber additions for FY2017 remains unchanged. Sirius’ full-year 2017 guidance marks as self-pay net subscriber additions of around 1.4 million; revenue of about $5.4 billion; adjusted EBITDA close to $2.1 billion; and free cash flow of nearly $1.54 billion.
Shares of common stock may be bought as required from the open market, following pre-set trading plans fulfilling the guidelines of Rule 10b5-1 as per the Exchange Act of 1934, as modified, in privately negotiated deals, including in faster stock repurchase transactions and deals with Liberty Media and its associates, or otherwise.
The firm anticipates to support the repurchases via a combination of cash generated by operations, future borrowings and cash on hand. The timing and size of these purchases will be dependent on several factors, including business and market conditions and price.