ENGLEWOOD, Colo., Feb. 24, 2022 /PRNewswire/ -- EchoStar
Corporation (NASDAQ: SATS) today announced its financial results
for the three and twelve months ended December 31, 2021.
Three Months Ended December 31, 2021 Financial
Highlights:
- Consolidated revenue of $498.6
million.
- Net loss of $80.1 million,
consolidated net loss attributable to EchoStar common stock of
$76.3 million, and basic and diluted
loss per share of $0.88.
- Consolidated Adjusted EBITDA of $159.5
million (see discussion and the reconciliation of GAAP to
this non-GAAP measure below).
Twelve Months Ended December 31, 2021 Financial
Highlights:
- Consolidated revenue of $1,985.7
million.
- Net income of $62.7 million,
consolidated net income attributable to EchoStar common stock of
$72.9 million, and basic and diluted
earnings per share of $0.81.
- Consolidated Adjusted EBITDA of $718.9
million (see discussion and the reconciliation of GAAP to
this non-GAAP measure below).
"The EchoStar team delivered another solid performance in 2021
with year over year growth in revenue, net income, and adjusted
EBITDA," commented Michael Dugan,
CEO and President of EchoStar. "We remain focused on meeting
our customers' needs while operating our business in an efficient
manner, innovating new multi-transport technology solutions and
preparing to place our next satellite, EchoStar XXIV/JUPITER 3,
into service."
Three Months Ended December 31, 2021 - Additional
Information:
- Consolidated revenue increased 1.9% or $9.4 million year over year primarily driven by
higher equipment sales of $18.8
million to our domestic and international enterprise
customers partially offset by lower service revenues of
$9.4 million primarily due to lower
broadband consumer customers.
- Adjusted EBITDA decreased 4.3% or $7.2
million year over year.
-
- Hughes segment Adjusted EBITDA decreased $10.2 million year over year. The decrease was
driven primarily by lower gross margin due to a change in revenue
mix as well as higher selling, general and administrative
expenses.
- ESS segment Adjusted EBITDA increased $0.7 million year over year.
- Corporate and Other segment Adjusted EBITDA increased
$2.3 million year over year. The
increase was primarily due to lower corporate legal expenses
partially offset by increased losses of unconsolidated affiliates,
net.
- Net income decreased $77.5 year
over year. The decrease was primarily due to the impairment of our
equity investment in DISH Mexico of $55.3
million, losses on investments, net, of $49.9 million, and unfavorable changes in foreign
currency exchange rates of $11.2
million. These items were partially offset by lower net
interest expense of $19.4 million and
higher operating income of $5.5
million.
- Hughes broadband subscribers totaled approximately 1,462,000,
declining 48,000 from September 30,
2021. The decrease primarily reflects a balancing of
capacity utilization with subscriber levels in areas of high
bandwidth demand in both the US and Latin
America.
- For the three months ended December 31,
2021, approximately 65% of Hughes segment revenue was
attributable to our consumer customers with approximately 35%
attributable to our enterprise customers.
- Cash, cash equivalents and current marketable investment
securities were $1.5 billion as of
December 31, 2021.
- During the three months ended December
31, 2021, we purchased 1,203,821 shares of our Class A
common stock in open market trades.
Set forth below is a table highlighting certain of EchoStar's
segment results for the three and twelve months ended
December 31, 2021 and 2020 (amounts in thousands) (all US GAAP
amounts reference results from operations):
|
|
For the three
months
ended December 31,
|
|
For the twelve
months
ended December 31,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
Hughes
|
|
$
491,154
|
|
$
482,418
|
|
$
1,956,226
|
|
$
1,860,834
|
EchoStar Satellite
Services
|
|
4,871
|
|
4,165
|
|
17,679
|
|
17,398
|
Corporate and
Other
|
|
2,619
|
|
2,690
|
|
11,815
|
|
9,675
|
Total
revenue
|
|
$
498,644
|
|
$
489,273
|
|
$
1,985,720
|
|
$
1,887,907
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Hughes
|
|
$
178,218
|
|
$
188,389
|
|
$
790,469
|
|
$
723,343
|
EchoStar Satellite
Services
|
|
2,704
|
|
2,026
|
|
9,185
|
|
7,873
|
Corporate &
Other:
|
|
|
|
|
|
|
|
|
Corporate overhead,
operating and other
|
|
(20,675)
|
|
(23,920)
|
|
(82,615)
|
|
(87,867)
|
Equity in earnings
(losses) of
unconsolidated affiliates, net
|
|
(723)
|
|
226
|
|
1,892
|
|
(434)
|
Total Corporate &
Other
|
|
(21,398)
|
|
(23,694)
|
|
(80,723)
|
|
(88,301)
|
Total Adjusted
EBITDA
|
|
$
159,524
|
|
$
166,721
|
|
$
718,931
|
|
$
642,915
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(80,083)
|
|
$
(2,597)
|
|
$
62,721
|
|
$
(51,904)
|
Expenditures for
property and equipment
|
|
$
86,427
|
|
$
113,757
|
|
$
438,430
|
|
$
408,798
|
Reconciliation of GAAP to Non-GAAP Measurement (amounts in
thousands):
|
|
For the three
months
ended December 31,
|
|
For the twelve
months
ended December, 31,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(80,083)
|
|
$
(2,597)
|
|
$
62,721
|
|
$
(51,904)
|
Interest income,
net
|
|
(5,887)
|
|
(6,275)
|
|
(22,801)
|
|
(39,982)
|
Interest expense, net
of amounts capitalized
|
|
15,664
|
|
35,469
|
|
95,512
|
|
147,927
|
Income tax provision
(benefit), net
|
|
2,579
|
|
17,760
|
|
65,626
|
|
24,069
|
Depreciation and
amortization
|
|
122,465
|
|
132,934
|
|
491,329
|
|
525,011
|
Net loss (income)
attributable to non-controlling
interests
|
|
3,735
|
|
2,714
|
|
10,154
|
|
11,754
|
EBITDA
|
|
58,473
|
|
180,005
|
|
702,541
|
|
616,875
|
(Gains) losses on
investments, net
|
|
43,450
|
|
(6,458)
|
|
(69,531)
|
|
31,306
|
Impairment of
long-lived assets
|
|
—
|
|
1,685
|
|
245
|
|
1,685
|
Impairment loss on
equity method investment
|
|
55,266
|
|
—
|
|
55,266
|
|
—
|
Litigation
Expense
|
|
—
|
|
—
|
|
16,800
|
|
—
|
License fee dispute -
India, net of non-
controlling interests
|
|
(233)
|
|
107
|
|
(941)
|
|
(936)
|
Loss on Debt
Repurchase
|
|
—
|
|
—
|
|
1,938
|
|
—
|
Foreign currency
transaction (gains)
losses, net
|
|
2,568
|
|
(8,618)
|
|
12,613
|
|
(6,015)
|
Adjusted
EBITDA
|
|
$
159,524
|
|
$
166,721
|
|
$
718,931
|
|
$
642,915
|
Note on Use of Non-GAAP Financial Measures
EBITDA is defined as "Net income (loss)" excluding "Interest
income, net," Interest expense, net of amounts capitalized,"
"Income tax benefit (provision), net," "Depreciation and
amortization," and "Net income (loss) attributable to
non-controlling interests."
Adjusted EBITDA is defined as EBITDA excluding Gains and losses
on investments, net, Foreign currency transaction gains (losses),
net, and other non-recurring or non-operational items. EBITDA
and Adjusted EBITDA are not measures determined in accordance with
US GAAP. EBITDA and Adjusted EBITDA are reconciled to Net income
(loss) in the table above and should not be considered in isolation
or as a substitute for operating income, net income or any other
measure determined in accordance with US GAAP. Our management uses
EBITDA and Adjusted EBITDA as measures of our operating efficiency
and overall financial performance for benchmarking against our
peers and competitors. Management believes that these non-GAAP
measures provide meaningful supplemental information regarding the
underlying operating performance of our business and are
appropriate to enhance an overall understanding of our financial
performance. Management also believes that EBITDA and Adjusted
EBITDA are useful to investors because they are frequently used by
securities analysts, investors, and other interested parties to
evaluate the performance of companies in our industry.
The consolidated financial statements of EchoStar for the
periods ended December 31, 2021 are attached to this press
release. Detailed financial data and other information are
available in EchoStar's Annual Report on Form 10-K for the period
ended December 31, 2021 filed today with the Securities and
Exchange Commission.
EchoStar will host a conference call to discuss its earnings on
Thursday, February 24, 2022 at 3:00
p.m. Eastern Time. The conference call will be broadcast
live in listen-only mode on EchoStar's investor relations website
at ir.echostar.com. To ask a question, the dial in numbers are
(833) 562-0124 (toll-free) and (661) 567-1102 (international),
Conference ID 4197436.
About EchoStar Corporation
EchoStar Corporation (NASDAQ: SATS) is a premier global provider
of satellite communications solutions. Headquartered in
Englewood, Colo., and conducting
business around the globe, EchoStar is a pioneer in secure
communications technologies through its Hughes Network Systems and
EchoStar Satellite Services business segments.
Safe Harbor Statement under the US Private Securities
Litigation Reform Act of 1995
This press release may contain statements that are forward
looking, as that term is defined by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's beliefs, as well as assumptions made by, and
information currently available to, management. When used in
this release, the words "believe," "anticipate," "goal," "seek,"
"estimate," "expect," "intend," "project," "continue," "future,"
"will," "would," "can," "may," "plans," and similar expressions and
the use of future dates are intended to identify forward–looking
statements. Although management believes that the expectations
reflected in these forward–looking statements are reasonable, it
can give no assurance that these expectations will prove to have
been correct. You are cautioned not to place undue reliance on any
forward-looking statements, which speak only as of the date made.
We assume no responsibility for the accuracy of forward-looking
statements or information or for updating forward-looking
information or statements. These statements are subject to certain
risks, uncertainties, and assumptions. See "Risk Factors" in
EchoStar's Annual Report on Form 10-K for the period ended
December 31, 2021 as filed with the
Securities and Exchange Commission and in the other documents
EchoStar files with the Securities and Exchange Commission from
time to time.
ECHOSTAR
CORPORATION
|
Consolidated
Balance Sheets
|
(Amounts in
thousands, except share and per share amounts)
|
|
|
|
As of December
31,
|
|
|
2021
|
|
2020
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
535,894
|
|
$
896,005
|
Marketable investment
securities
|
|
1,010,496
|
|
1,638,271
|
Trade accounts
receivable and contract assets, net
|
|
182,063
|
|
183,989
|
Other current assets,
net
|
|
198,444
|
|
189,821
|
Total current
assets
|
|
1,926,897
|
|
2,908,086
|
Non-current
assets:
|
|
|
|
|
Property and
equipment, net
|
|
2,338,285
|
|
2,390,313
|
Operating lease
right-of-use assets
|
|
149,198
|
|
128,303
|
Goodwill
|
|
511,086
|
|
511,597
|
Regulatory
authorizations, net
|
|
469,766
|
|
478,762
|
Other intangible
assets, net
|
|
13,984
|
|
18,433
|
Other investments,
net
|
|
297,747
|
|
284,937
|
Other non-current
assets, net
|
|
338,241
|
|
352,921
|
Total non-current
assets
|
|
4,118,307
|
|
4,165,266
|
Total
assets
|
|
$
6,045,204
|
|
$
7,073,352
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Trade accounts
payable
|
|
$
109,338
|
|
$
122,366
|
Current portion of
long-term debt, net
|
|
—
|
|
898,237
|
Contract
liabilities
|
|
141,343
|
|
104,569
|
Accrued expenses and
other current liabilities
|
|
209,442
|
|
299,999
|
Total current
liabilities
|
|
460,123
|
|
1,425,171
|
Non-current
liabilities:
|
|
|
|
|
Long-term debt,
net
|
|
1,495,994
|
|
1,495,256
|
Deferred tax
liabilities, net
|
|
403,684
|
|
359,896
|
Operating lease
liabilities
|
|
134,897
|
|
114,886
|
Other non-current
liabilities
|
|
136,426
|
|
70,893
|
Total non-current
liabilities
|
|
2,171,001
|
|
2,040,931
|
Total
liabilities
|
|
2,631,124
|
|
3,466,102
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECHOSTAR
CORPORATION
|
Consolidated
Balance Sheets
|
(Amounts in
thousands, except share and per share amounts)
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock,
$0.001 par value, 20,000,000 shares authorized, none issued
and outstanding at both December 31, 2021 and
December 31, 2020
|
|
—
|
|
—
|
Common stock,
$0.001 par value, 4,000,000,000 shares authorized:
|
|
|
|
|
Class A common
stock, $0.001 par value, 1,600,000,000 shares authorized,
58,059,622 shares issued and 38,726,923 shares outstanding at
December 31, 2021 and 57,254,201 shares issued and 48,863,374
shares
outstanding at December 31, 2020
|
|
58
|
|
57
|
Class B
convertible common stock, $0.001 par value, 800,000,000 shares
authorized, 47,687,039 shares issued and outstanding at both
December 31,
2021 and December 31, 2020
|
|
48
|
|
48
|
Class C
convertible common stock, $0.001 par value, 800,000,000 shares
authorized, none issued and outstanding at both December 31,
2021 and
December 31, 2020
|
|
—
|
|
—
|
Class D common
stock, $0.001 par value, 800,000,000 shares authorized,
none issued and outstanding at both December 31, 2021 and
December 31,
2020
|
|
—
|
|
—
|
Additional paid-in
capital
|
|
3,345,878
|
|
3,321,426
|
Accumulated other
comprehensive income (loss)
|
|
(212,102)
|
|
(187,876)
|
Accumulated earnings
(losses)
|
|
656,466
|
|
583,591
|
Treasury shares, at
cost
|
|
(436,521)
|
|
(174,912)
|
Total EchoStar
Corporation stockholders' equity
|
|
3,353,827
|
|
3,542,334
|
Non-controlling
interests
|
|
60,253
|
|
64,916
|
Total stockholders'
equity
|
|
3,414,080
|
|
3,607,250
|
Total liabilities
and stockholders' equity
|
|
$
6,045,204
|
|
$
7,073,352
|
ECHOSTAR
CORPORATION
|
Consolidated
Statements of Operations
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
For the years
ended December 31,
|
|
|
2021
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
Services and other
revenue
|
|
$
1,715,287
|
|
$
1,682,304
|
|
$
1,619,271
|
Equipment
revenue
|
|
270,433
|
|
205,603
|
|
266,810
|
Total
revenue
|
|
1,985,720
|
|
1,887,907
|
|
1,886,081
|
Costs and
expenses:
|
|
|
|
|
|
|
Cost of sales -
services and other (exclusive of
depreciation and amortization)
|
|
551,679
|
|
577,943
|
|
561,353
|
Cost of sales -
equipment (exclusive of
depreciation and amortization)
|
|
231,975
|
|
166,435
|
|
226,002
|
Selling, general and
administrative expenses
|
|
461,705
|
|
474,912
|
|
509,145
|
Research and
development expenses
|
|
31,777
|
|
29,448
|
|
25,739
|
Depreciation and
amortization
|
|
491,329
|
|
525,011
|
|
490,765
|
Impairment of
long-lived assets
|
|
245
|
|
1,685
|
|
—
|
Total costs and
expenses
|
|
1,768,710
|
|
1,775,434
|
|
1,813,004
|
Operating income
(loss)
|
|
217,010
|
|
112,473
|
|
73,077
|
Other income
(expense):
|
|
|
|
|
|
|
Interest income,
net
|
|
22,801
|
|
39,982
|
|
82,352
|
Interest expense, net
of amounts capitalized
|
|
(95,512)
|
|
(147,927)
|
|
(251,016)
|
Gains (losses) on
investments, net
|
|
69,531
|
|
(31,306)
|
|
28,912
|
Equity in earnings
(losses) of unconsolidated
affiliates, net
|
|
(5,170)
|
|
(7,267)
|
|
(14,734)
|
Foreign currency
transaction gains (losses), net
|
|
(12,613)
|
|
6,015
|
|
(11,590)
|
Other-than-temporary
impairment losses on
equity method investments
|
|
(55,266)
|
|
—
|
|
—
|
Other, net
|
|
(12,434)
|
|
195
|
|
(166)
|
Total other income
(expense), net
|
|
(88,663)
|
|
(140,308)
|
|
(166,242)
|
Income (loss) from
continuing operations before
income taxes
|
|
128,347
|
|
(27,835)
|
|
(93,165)
|
Income tax benefit
(provision), net
|
|
(65,626)
|
|
(24,069)
|
|
(20,488)
|
Net income (loss)
from continuing operations
|
|
62,721
|
|
(51,904)
|
|
(113,653)
|
Net income (loss) from
discontinued operations
|
|
—
|
|
—
|
|
39,401
|
Net income
(loss)
|
|
62,721
|
|
(51,904)
|
|
(74,252)
|
Less: Net loss
(income) attributable to non-
controlling interests
|
|
10,154
|
|
11,754
|
|
11,335
|
Net income (loss)
attributable to EchoStar
Corporation common stock
|
|
$
72,875
|
|
$
(40,150)
|
|
$
(62,917)
|
|
|
|
|
|
|
|
Earnings (losses)
per share - Class A and B common stock:
|
|
|
|
|
|
|
Basic and
diluted earnings (losses) from
continuing operations per share
|
|
$
0.81
|
|
$
(0.41)
|
|
$
(1.06)
|
Total basic and
diluted earnings (losses) per share
|
|
$
0.81
|
|
$
(0.41)
|
|
$
(0.65)
|
ECHOSTAR
CORPORATION
|
Consolidated
Statements of Cash Flows
|
(Amounts in
thousands)
|
|
|
|
For the years
ended December 31,
|
|
|
2021
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
62,721
|
|
$
(51,904)
|
|
$
(74,252)
|
Adjustments to
reconcile net income (loss) to
cash flows provided by (used for) operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
491,329
|
|
525,011
|
|
588,200
|
Impairment of
long-lived assets
|
|
245
|
|
1,685
|
|
—
|
Losses (gains) on
investments, net
|
|
(69,531)
|
|
31,306
|
|
(28,912)
|
Equity in losses
(earnings) of unconsolidated
affiliates, net
|
|
5,170
|
|
7,267
|
|
14,734
|
Foreign currency
transaction losses (gains),
net
|
|
12,613
|
|
(6,015)
|
|
11,590
|
Deferred tax provision
(benefit), net
|
|
37,664
|
|
18,147
|
|
32,542
|
Stock-based
compensation
|
|
7,699
|
|
8,887
|
|
9,353
|
Amortization of debt
issuance costs
|
|
2,381
|
|
4,324
|
|
5,912
|
Dividends received
from unconsolidated
affiliates
|
|
—
|
|
—
|
|
2,716
|
Other-than-temporary
impairment losses on
equity method investments
|
|
55,266
|
|
—
|
|
—
|
Other, net
|
|
19,740
|
|
(12,501)
|
|
6,297
|
Changes in assets
and liabilities, net:
|
|
|
|
|
|
|
Trade accounts
receivable and contract
assets, net
|
|
(2,334)
|
|
2,237
|
|
8,289
|
Other current assets,
net
|
|
(7,303)
|
|
(12,984)
|
|
(39,190)
|
Trade accounts
payable
|
|
(15,599)
|
|
(12,339)
|
|
13,149
|
Contract
liabilities
|
|
36,774
|
|
3,509
|
|
26,376
|
Accrued expenses and
other current
liabilities
|
|
(84,621)
|
|
42,822
|
|
66,352
|
Non-current assets and
non-current
liabilities, net
|
|
80,012
|
|
(15,064)
|
|
13,166
|
Net cash provided
by (used for) operating
activities
|
|
632,226
|
|
534,388
|
|
656,322
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Purchases of
marketable investment securities
|
|
(1,651,608)
|
|
(2,799,838)
|
|
(993,369)
|
Sales and maturities
of marketable investment
securities
|
|
2,321,560
|
|
2,110,336
|
|
2,391,220
|
Expenditures for
property and equipment
|
|
(438,430)
|
|
(408,798)
|
|
(418,584)
|
Expenditures for
externally marketed software
|
|
(33,543)
|
|
(38,655)
|
|
(29,310)
|
Purchase of other
investments
|
|
(50,000)
|
|
(5,500)
|
|
(93,687)
|
Sales of other
investments
|
|
10,951
|
|
—
|
|
—
|
Investments in
unconsolidated affiliates
|
|
—
|
|
—
|
|
(2,149)
|
Purchases of
regulatory authorizations
|
|
—
|
|
—
|
|
(34,447)
|
Dividend received from
unconsolidated affiliate
|
|
—
|
|
—
|
|
2,284
|
Net cash provided
by (used for) investing activities
|
|
158,930
|
|
(1,142,455)
|
|
821,958
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Repurchase and
maturity of the 2019 Senior
Secured Notes
|
|
—
|
|
—
|
|
(920,923)
|
Repurchase and
maturity of the 2021 Senior
Unsecured Notes
|
|
(901,818)
|
|
—
|
|
—
|
Payment of finance
lease obligations
|
|
(670)
|
|
(811)
|
|
(29,347)
|
Payment of in-orbit
incentive obligations
|
|
(2,214)
|
|
(1,554)
|
|
(5,447)
|
Proceeds from
Class A common stock options
exercised
|
|
408
|
|
855
|
|
67,337
|
Proceeds from Class A
common stock issued
under the Employee Stock Purchase Plan
|
|
9,471
|
|
10,109
|
|
9,779
|
Treasury share
repurchase
|
|
(261,436)
|
|
(43,458)
|
|
—
|
Contribution by
non-controlling interest holder
|
|
9,880
|
|
18,241
|
|
—
|
Purchase of
non-controlling interest
|
|
—
|
|
—
|
|
(7,313)
|
Other, net
|
|
(966)
|
|
998
|
|
603
|
Net cash provided
by (used for) financing
activities
|
|
(1,147,345)
|
|
(15,620)
|
|
(885,311)
|
|
|
|
|
|
|
|
Effect of exchange
rates on cash and cash
equivalents
|
|
(3,749)
|
|
(1,390)
|
|
(575)
|
Net increase
(decrease) in cash and cash
equivalents
|
|
(359,938)
|
|
(625,077)
|
|
592,394
|
Cash and cash
equivalents, including restricted
amounts, beginning of period
|
|
896,812
|
|
1,521,889
|
|
929,495
|
Cash and cash
equivalents, including restricted
amounts, end of period
|
|
$
536,874
|
|
$
896,812
|
|
$
1,521,889
|
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SOURCE EchoStar Corporation