XM Satellite Radio Holdings Inc. has reported financial and operating results for the third quarter ended Sept. 30, 2002.
XM said it ended the quarter with 201,544 subscribers and continued to show significant quarter-to-quarter subscriber momentum, adding 64,836 subscribers, representing a 47% increase in subscribers during the third quarter.
For the three months ended Sept. 30, 2002, XM reported consolidated revenue of $5.6 million, consolidated EBITDA (earnings before interest, taxes, depreciation, amortization and non-cash stock compensation) loss of $67.1 million, and a consolidated net loss available to common shareholders of $114.7 million, or $1.26 per share.
As an update to XM's fundraising and cost control efforts, XM continues to seek substantial additional funding to close the gap through cash flow breakeven. To facilitate the overall financing package, the company has been in discussions with General Motors regarding non-binding term sheets for the deferral of up to $200 million in payment obligations (with approximately half relating to 2003-2004) and exchanging these payments for certain debt and convertible securities, as well as the introduction of an arrangement that would permit certain payments to be made in either stock or cash. XM's ability to execute any arrangement regarding deferral of payments to GM is contingent upon certain modifications to XM's capital structure and the Company securing at least $200 million in additional financing. XM has not finalized any terms or reached final agreement with GM but management believes that agreement could be reached broadly on the terms currently under discussion or similar terms, should XM be successful in raising the required additional funding. To obtain at least $200 million in other financing, XM and its investment bankers are in discussions with potential outside investors as well as current major shareholders; any resulting transactions will be evaluated by an Independent Committee of the XM Board of Directors.