SPOT Spotify Technology SA

PanAmSat Reports Second Quarter 2004 Results WILTON, Conn., July 29 /PRNewswire-FirstCall/ -- PanAmSat Corporation (the "Company or "PanAmSat") (NASDAQ:SPOT) today reported financial results for the second quarter and six months ended June 30, 2004. In the second quarter, the Company generated revenues of $206.8 million compared to $203.6 million in the second quarter of 2003. Earnings per share (EPS) for the second quarter of 2004 were $0.07 per share compared to EPS of $0.20 for the second quarter of 2003. The primary reason for the reduction in EPS was an unusual non-cash charge of approximately $29.6 million ($18.8 million after taxes) recorded in the second quarter of 2004. This charge related to the write-off of a customer's receivable balance resulting from PanAmSat's termination of the customer's agreement for non-payment. In addition, the Company recorded a $5.5 million non-cash charge ($3.5 million after taxes) in interest expense for the write-off of debt issuance costs as a result of the early repayment of the Company's Term B-1 facility. Without these non-cash charges, EPS in the second quarter of 2004 would have been $0.22 per share (2) as compared to the reported EPS of $0.07 per share. For the six months ended June 30, 2004, total revenues were $412.3 million compared to $403.3 million for the same period in 2003 and EPS was ($0.14) per share compared to $0.41 per share for the same period in 2003. The $35.1 million of unusual non-cash charges recorded in the second quarter of 2004 related to the customer termination and debt repayment described above plus the unusual non-cash PAS-6 impairment charge of $99.9 million recorded in the first quarter of 2004 resulted in reported EPS for the six months ended June 30, 2004 being reduced from $0.43 to $(0.14)(2). Financial Results for Three Months Ended June 30, 2004 Total revenues for the second quarter of 2004 were $206.8 million, compared to revenues of $203.6 million for the second quarter of 2003. Operating lease revenues were $202.7 million for the second quarter of 2004, compared to $199.4 million for the same period in 2003. The increase in operating lease revenues was primarily attributable to additional government services revenues related to our Government Services (G2) operating segment and an increase in network services revenues related to data services within the Middle East and VSAT applications in North America. These increases were partially offset by lower video services revenues primarily due to customer credit-related issues in international regions, some of which resulted in the second quarter 2004 unusual non-cash charge related to the customer termination described above. Total direct operating costs and selling, general & administrative expenses for the three months ended June 30, 2004 were $90.4 million compared to $53.6 million for the same period in 2003. This increase was primarily attributable to the unusual non-cash charge related to a customer termination recorded during the second quarter of 2004. Also, direct operating costs increased from growth of services to the U.S. government. Further, additional direct operating costs were recorded during the second quarter of 2004 related to Sonic Telecommunications International Ltd, which was acquired during 2003. For the three months ended June 30, 2004, net income was $10.7 million, compared to $30.3 million for the same period in 2003. EPS was $0.07 per share for the second quarter of 2004 compared to $0.20 per share for the second quarter of 2003. The change in net income and earnings per share was primarily due to the unusual non-cash charges in EBITDA(1) and interest expense described above. For the three months ended June 30, 2004, EBITDA was $115.8 million(1), compared to $149.4 million(1) for the same period in 2003. The decrease in EBITDA was primarily attributable to the unusual non-cash charge related to a customer's termination recorded during the second quarter of 2004 and a change in the revenue mix of the Company's services, including the previously mentioned increase in G2 revenue. Excluding the write-off of the customer's receivable balance during the second quarter of 2004, our EBITDA would have been $145.4 million(2). Financial Results for Six Months Ended June 30, 2004 Total revenues for the first six months of 2004 were $412.3 million, compared to revenues of $403.3 million for the same period in 2003. Operating lease revenues were $403.9 million for the first six months of 2004, compared to $394.8 million for the first six months in 2003. The increase in operating lease revenues was primarily attributable to additional government services revenues related to our G2 operating segment and an increase in network services revenues related to network resellers, data services within the Middle East and additional revenues related to VSAT applications in North America. These increases were partially offset by lower video services revenues primarily due to customer credit-related issues in international regions, some of which resulted in the second quarter 2004 unusual non-cash charge described above. Total direct operating costs and selling, general & administrative expenses for the six months ended June 30, 2004 were $147.6 million compared to $104.8 million for the same period in 2003. This increase was primarily attributable to costs related to revenues from our G2 operating segment and the non-cash charge related to a customer termination described above. For the six months ended June 30, 2004, net income (loss) was ($21.3) million, compared to $61.2 million for the same period in 2003. EPS was ($0.14) per share for the first six months of 2004 compared to $0.41 per share for the first six months of 2003. The change in net income and earnings per share was primarily due to the PAS-6 impairment loss recorded in the first quarter of 2004, the write off of the customer receivable balances recorded during the second quarter of 2004, the write off of debt issuance costs for the early repayment of debt, as well as the other changes in EBITDA described below and the related income tax effect. On March 17, 2004 and on April 1, 2004, our PAS-6 satellite suffered anomalies resulting in a loss of power and the deorbiting of the satellite. As a result, we recorded a non-cash impairment charge of $99.9 million within income from operations ($63.3 million charge to net income after taxes) in the first quarter of 2004. PAS-6 had been previously replaced, was used as a backup for another satellite and therefore this event did not affect service to any of our customers or our revenues. Excluding the PAS-6 impairment loss recorded during the first quarter of 2004 and the write-off of the customer's receivable balance and debt issuance costs during the second quarter of 2004, our earnings per share would have been $0.43 per share(2). For the six months ended June 30, 2004, EBITDA(1) was $162.2 million, compared to $297.9 million for the same period in 2003. This decrease was primarily due to the PAS-6 impairment loss and the charges noted above recorded during the second quarter of 2004. Excluding the PAS-6 impairment loss recorded during the first quarter of 2004 and the write-off of the customer's receivable balance during the second quarter of 2004, our EBITDA would have been $291.8 million(2). Segment Information Our operations are comprised of the following two operating segments: Fixed Satellite Services -- Through our Fixed Satellite Services ("FSS") segment, we lease transponder capacity to customers for various applications, including broadcasting, news gathering, Internet access and transmission, private voice and data networks, business television, distance learning and direct-to-home television ("DTH") and provide telemetry, tracking and control services ("TT&C") and network services to customers. Government Services -- Through G2, we provide global satellite and related telecommunications services to the U.S. government, international government entities, and their contractors. FSS Segment: Three Months Six Months Ended June 30, Ended June 30, 2004 2003 2004 2003 Revenue $188,782 $193,582 $378,209 $389,254 Income from operations $40,942 $72,205 $10,269 $146,619 EBITDA (2) $111,912 $147,072 $156,136 $293,743 For the Three Months Ended June 30, 2004 FSS revenues for the three months ended June 30, 2004 decreased $4.8 million compared to the same period in 2003. This decease was primarily due to lower program distribution and DTH video revenues, partially offset by higher network services revenues. Video services revenues of $115.6 million for the three months ended June 30, 2004 decreased $9.2 million from the $124.8 million recorded during the same period in 2003. This decrease was primarily due to customer credit-related issues in international regions, some of which resulted in the second quarter 2004 charge, which is more fully described above. Network services revenues of $55.9 million for the three months ended June 30, 2004 increased $3.1 million from the $52.7 million recorded during the same period in 2003. The increase in network services revenues was primarily related to an increase in revenue from customers with data services in the Middle East and customers with VSAT applications in North America. EBITDA and income from operations for the three months ended June 30, 2004 decreased by $35.2 million and $63.8 million, respectively, compared to the same period in 2003. These decreases were primarily due to the lower revenue as described above and a non-cash write-off of a customer's receivables described above. Excluding this non-cash charge, the EBITDA and income from operations of the FSS segment would have been $141.5 million(2) and $70.5 million(2), respectively. For the Six Months Ended June 30, 2004 FSS revenues for the six months ended June 30, 2004 decreased $11.0 million compared to the same period in 2003. This decease was primarily due to lower program distribution and DTH video revenues partially offset by higher network services revenues. Video services revenues of $231.2 million for the six months ended June 30, 2004 decreased $20.3 million from the $251.5 million recorded during the same period in 2003. This decrease was primarily due to customer credit-related issues in international regions, some of which resulted in the second quarter 2004 charge of $29.6 million, which is more fully described above. Network services revenues of $110.9 million for the six months ended June 30, 2004 increased $7.8 million from the $103.2 million recorded during the same period in 2003. The increase in network services revenues is due to additional revenue from network resellers, customers with data services in the Middle East and additional revenues from customers with VSAT applications in North America. EBITDA and income from operations for the six months ended June 30, 2004 decreased by $137.6 million and $136.4 million, respectively, compared to the same period in 2003. This decrease was primarily the result of the PAS-6 impairment loss and the charges noted above recorded during the second quarter of 2004. Excluding the PAS-6 impairment loss recorded during the first quarter of 2004 and the write-off of the customer's receivable balance during the second quarter of 2004, the EBITDA and income from operations of the FSS segment would have been $285.7 million (2) and $139.8 million(2), respectively. G2 Segment: Three Months Six Months Ended June 30, Ended June 30, 2004 2003 2004 2003 Revenue $22,605 $15,402 $44,421 $25,033 Income from operations $3,575 $2,246 $5,325 $4,107 EBITDA (2) $3,917 $2,288 $6,105 $4,159 For the Three Months Ended June 30, 2004 The increase in G2 segment revenues of $7.2 million was primarily due to an increase of $4.3 million from our long-term construction arrangement with a customer to construct an L-Band navigational payload on our Galaxy 1R replacement satellite (Galaxy 15). The increase in revenue was also due to an increase in equipment-based and non-satellite bandwidth sales as compared to the same period in 2003. The G2 segment EBITDA and income from operations for the three months ended June 30, 2004 increased by $1.6 million and $1.3 million, respectively, as compared to the same period in 2003. These increases were primarily a result of higher revenue as discussed above, partially offset by the related direct operating costs. The G2 segment's gross margins remained relatively flat period over period. For the Six Months Ended June 30, 2004 The increase in G2 segment revenues of $19.4 million in 2004 reflects a full six months of operations in 2004 for the HGS and Esatel acquisitions made during 2003, as well as an increase in equipment-based and non-satellite bandwidth sales, as compared to the same period in 2003. The increase was also due to an increase of $6.7 million in revenues earned from our long-term construction arrangement with a customer to construct an L-band navigational payload on our Galaxy 1R replacement satellite (Galaxy 15). The construction of the L-band navigational payload began in the third quarter of 2003. The G2 segment EBITDA and income from operations for the three months ended June 30, 2004 increased by $1.9 million and $1.2 million, respectively, as compared to the same period in 2003. These increases were primarily a result of higher revenue as discussed above, partially offset by the related direct operating costs. The G2 segment's gross margins remained relatively flat period over period. Repayment of Term B-1 Facility In June 2004, we repaid the $349.1 million outstanding balance under our Term B-1 Facility from available cash on hand. In conjunction with this repayment, we recorded a charge of $5.5 million within interest expense as a result of the write-off of related debt issuance costs and a charge of $0.5 million within interest expense representing the amount accumulated within other comprehensive income related to an interest rate hedge entered into in connection with the Term B-1 Facility. The hedge liability was not impacted by the repayment of the Term B-1 Facility. Satellite Insurance During the second quarter of 2004, adjustments to our satellite insurance coverage were made as part of our normal reevaluation process. As of June 30, 2004, we had in effect launch and in-orbit insurance policies covering seven of our satellites in the aggregate amount of approximately $846.1 million, with such satellites having an aggregate net book value and other insurable costs of $927.2 million. More detailed information with respect to our satellite insurance coverage is found in our Form 10-Q for the quarterly period ended June 30, 2004, which is being filed contemporaneously with this press release. NON-GAAP FINANCIAL RECONCILIATION SCHEDULES The tables below reconcile our non-GAAP financial measures to the most directly comparable GAAP financial measure. Management encourages readers to use GAAP disclosures referred to earlier in this release to evaluate the Company's results of operations. These non-GAAP tables are included to aid the reader in understanding our GAAP financial statements. The following table sets forth a reconciliation of net income (loss) to EBITDA on a consolidated basis and a reconciliation of Income from operations to EBITDA for our FSS Operating Segment and our G2 Operating Segment for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2004 2003 2004 2003 (In thousands) Reconciliation of Net Income (loss) to EBITDA: Consolidated: Net income (loss) $10,666 $30,298 $(21,263) $61,156 Interest expense, net 33,623 33,132 64,709 67,407 Income tax expense (benefit) 228 11,021 (27,852) 22,163 Depreciation and amortization 71,312 74,909 146,647 147,176 EBITDA (1) $115,829 $149,360 $162,241 $297,902 Three Months Ended Six Months Ended June 30, June 30, 2004 2003 2004 2003 (In thousands) Reconciliation of Income from operations to EBITDA: FSS Operating Segment: Income from operations $40,942 $72,205 $10,269 $146,619 Depreciation and amortization 70,970 74,867 145,867 147,124 EBITDA (1) $111,912 $147,072 $156,136 $293,743 G2 Operating Segment: Income from operations $3,575 $2,246 $5,325 $4,107 Depreciation and amortization 342 42 780 52 EBITDA (1) $3,917 $2,288 $6,105 $4,159 (1) EBITDA, a measure used by management to measure operating performance, is defined as net income plus net interest expense, income tax expense (benefit) and depreciation and amortization. EBITDA is not a presentation made in accordance with GAAP, and is not a measure of financial condition or profitability, and should not be considered as an alternative to (1) net income (loss) determined in accordance with GAAP or (2) operating cash flows determined in accordance with GAAP. PanAmSat's management uses EBITDA to evaluate the operating performance of its business, and as a measure of performance for incentive compensation purposes. PanAmSat believes EBITDA is a measure of performance used by some investors, equity analysts and others to make informed investment decisions. PanAmSat's management also uses this metric to measure income generated from operations that could be used to service debt, fund future capital expenditures or pay taxes. In addition, multiples of current or projected EBITDA are used to estimate current or prospective enterprise value. Additionally, EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. Because not all companies use identical calculations, this presentation of EBITDA may not be comparable to other similarly titled measures of other companies. Reconciliation Schedule For Unusual Items The following schedule reconciles certain amounts presented in the attached Summary of Operating Results and Selected Segment Data to amounts reflected within this earnings release which exclude the impact of the PAS-6 impairment loss recorded during the first quarter of 2004, the write-off of a customer's long and short-term receivable balances during the second quarter of 2004 and the write-off of debt issuance costs as a result of the early repayment of the Company's Term B-1 facility during the second quarter of 2004. For the three months ended June 30, 2004 EBITDA (1) Income from Net Income Earnings Operations (loss) (loss) per share Consolidated Reported $115,829 $10,666 $0.07 Customer Write-off 29,601 18,758 0.13 Write-off of debt issuance costs -- 3,456 0.02 Excluding unusual items (2) $145,430 $32,880 $0.22 FSS Reported $111,912 $40,942 N/A N/A Customer Write-off 29,601 29,601 Excluding unusual items (2) $141,513 $70,543 For the six months ended June 30, 2004 EBITDA (1) Income from Net Income Earnings Operations (loss) (loss) per share Consolidated Reported $162,241 $(21,263) $(0.14) PAS-6 Impairment loss 99,946 63,336 0.42 Customer Write-off 29,601 18,758 0.13 Write-off of debt issuance costs -- 3,456 0.02 Excluding unusual items (2) $291,788 $64,287 $0.43 FSS Reported $156,136 $10,269 N/A N/A PAS-6 Impairment loss 99,946 99,946 Customer Write-off 29,601 29,601 Excluding unusual items (2) $285,683 $139,816 (2) Excluding unusual items - Amounts indicated are non-GAAP financial measures as they exclude the impact of the PAS-6 impairment loss recorded during the first quarter of 2004, the write-off of a customer's long and short-term receivable balances during the second quarter of 2004 and the write-off of debt issuance costs as a result of the early repayment of the Company's Term B-1 facility during the second quarter of 2004. These measures should be used in conjunction with GAAP financial measures presented in the attached Summary of Operating Results and Selected Segment Data and should not be considered as an alternative to (1) net income (loss) determined in accordance with GAAP or (2) operating cash flows determined in accordance with GAAP. Since these items are unusual charges, we believe that excluding them is important to an understanding of the Company's ongoing results of operations. We believe these adjusted amounts may be more comparable to our historical and future operating results and therefore should be used in conjunction with our GAAP financial measures when evaluating our operating performance. For more detailed information about our financial guidance and trends, please visit the "Financial Guidance/Recent Presentations" page of the Investor Relations section of our website located at http://www.panamsat.com/. About PanAmSat Through its owned and operated fleet of 24 satellites, PanAmSat (NASDAQ:SPOT) is a leading global provider of video, broadcasting and network distribution and delivery services. In total, the Company's in-orbit fleet is capable of reaching over 98 percent of the world's population through cable television systems, broadcast affiliates, direct-to-home operators, Internet service providers and telecommunications companies. In addition, PanAmSat supports the largest concentration of satellite-based business networks in the U.S., as well as specialized communications services in remote areas throughout the world. PanAmSat is 80.4 percent owned by The DIRECTV Group Inc. For more information, visit the Company's web site at http://www.panamsat.com/. The DIRECTV Group, Inc. The DIRECTV Group, Inc. (NYSE:DTV) formerly Hughes Electronics Corp. (NYSE:HS), is a world-leading provider of digital multichannel television entertainment, broadband satellite networks and services, and global video and data broadcasting. The DIRECTV Group, Inc. is 34 percent owned by Fox Entertainment Group, which is approximately 82 percent owned by News Corporation Ltd. NOTE: The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements so long as such information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information. When used in this press release, the words "estimate," "plan," "project," "anticipate," "expect," "intend," "outlook," "believe," and other similar expressions are intended to identify forward-looking statements and information. Actual results may differ materially from anticipated results due to certain risks and uncertainties, which are more specifically set forth in the "Financial Guidance/Recent Presentations" page of the Investor Relations section of our website and the Company's annual report on Form 10-K for the year ended December 31, 2003 on file with the Securities and Exchange Commission. The risks and uncertainties that could cause our actual results to differ, include but are not limited to (i) risks associated with operating our in-orbit satellites, (ii) risks of launch failures, launch and construction delays and in-orbit failures or reduced performance, (iii) risk that we may not be able to obtain new or renewal satellite insurance policies on commercially reasonable terms or at all, (iv) risks related to possible future losses on satellites that are not adequately covered by insurance, (v) risks related to domestic and international government regulation, (vi) risks related to the Company's contracted backlog for future services, (vii) risks of doing business internationally, (viii) risks of inadequate access to capital for growth, (ix) risks related to competition, (x) risks related to customer defaults, (xi) risks relating to pricing pressure and overcapacity in markets in which we operate, (xii) risks associated with the Company's indebtedness, (xiii) risks related to control by our majority stockholder and (xiv) litigation. PanAmSat cautions that the foregoing list of important factors is not exclusive, and PanAmSat undertakes no obligation to publicly update any forward-looking statement. Further, PanAmSat operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the Company's control. FINANCIAL INFORMATION TO FOLLOW Summary of Operating Results For the Three Months Ended June 30, 2004 and 2003 Amounts in thousands (except share data) PanAmSat PanAmSat 6/30/04 6/30/03 Revenues Operating leases, satellite services and other $202,732 $199,400 Outright sales and sales-type leases 4,093 4,193 Total revenues 206,825 203,593 Costs and expenses Direct operating costs (exclusive of depreciation and amortization) 40,167 32,232 Selling, general & administrative expenses 50,256 21,338 PAS-6 impairment loss -- -- Facilities restructuring and severance costs 573 663 Total 90,996 54,233 EBITDA 115,829 149,360 Depreciation and amortization expense 71,312 74,909 Income from operations 44,517 74,451 Interest expense, net 33,623 33,132 Income before income taxes 10,894 41,319 Income tax expense 228 11,021 Net income $10,666 $30,298 Earnings per share $0.07 $0.20 Weighted average common shares outstanding 150.2 150.1 Summary of Operating Results For the Six Months Ended June 30, 2004 and 2003 Amounts in thousands (except share data) PanAmSat PanAmSat 6/30/04 6/30/03 Revenues Operating leases, satellite services and other $403,897 $394,820 Outright sales and sales-type leases 8,358 8,529 Total revenues 412,255 403,349 Costs and Expenses Direct operating costs (exclusive of depreciation and amortization) 79,835 65,420 Selling, general & administrative expenses 67,805 39,364 PAS-6 impairment loss 99,946 -- Facilities restructuring and severance costs 2,428 663 Total 250,014 105,447 EBITDA 162,241 297,902 Depreciation and amortization expense 146,647 147,176 Income from operations 15,594 150,726 Interest expense, net 64,709 67,407 Income (loss) before income taxes (49,115) 83,319 Income tax expense (benefit) (27,852) 22,163 Net income (loss) ($21,263) $61,156 Earnings (loss) per share $(0.14) $0.41 Weighted average common shares outstanding 150.2 150.0 Summarized Balance Sheets As of June 30, 2004 and December 31, 2003 (Amounts in thousands) 6/30/04 12/31/03 ASSETS CURRENT ASSETS Cash and cash equivalents $627,751 $511,248 Short-term investments 9,957 38,936 Accounts receivable, net 72,206 77,006 Net investment in sales-type leases 24,332 23,068 Prepaid expenses and other 29,911 20,428 Insurance claim receivable -- 260,000 Deferred income taxes 6,933 7,688 Assets held for sale 3,257 -- Total current assets 774,347 938,374 SATELLITES AND OTHER PROPERTY AND EQUIPMENT, Net 2,092,796 2,306,705 NET INVESTMENT IN SALES-TYPE LEASES 100,573 116,653 GOODWILL 2,244,553 2,243,611 DEFERRED CHARGES AND OTHER ASSETS, NET 137,887 129,534 TOTAL ASSETS $5,350,156 $5,734,877 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $63,607 $71,794 Current portion of long-term debt 275,000 3,500 Current portion of satellite incentive obligations 13,413 12,654 Accrued interest payable 45,344 45,462 Deferred revenues 26,788 22,436 Total current liabilities 424,152 155,846 LONG-TERM DEBT 1,075,000 1,696,500 DEFERRED INCOME TAXES 399,755 430,512 DEFERRED CREDITS AND OTHER 287,648 273,261 TOTAL LIABILITIES 2,186,555 2,556,119 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY 3,163,601 3,178,758 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $5,350,156 $5,734,877 Summarized Statements of Cash Flows For the Six Months Ended June 30, 2004 and 2003 (Amounts in thousands) 6/30/04 6/30/03 CASH FLOWS PROVIDED BY OPERATING ACTIVITIES Net Income (loss) $(21,263) $61,156 Depreciation and amortization expense 146,647 147,176 PAS-6 impairment loss 99,946 -- Facilities restructuring and severance costs 2,021 663 Changes in working capital and other accounts (5,093) (30,129) NET CASH PROVIDED BY OPERATING ACTIVITIES 222,259 229,166 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (including capitalized interest) (a) (83,886) (54,744) Insurance proceeds from satellite recoveries 286,915 -- Net sales of short-term investments 28,948 43,704 Acquisitions, net of cash acquired (522) (8,352) NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 231,455 (19,392) CASH FLOWS FROM FINANCING ACTIVITIES Repayments of debt (350,000) (200,000) New incentive obligations 16,250 5,642 Repayment of incentive obligations (6,818) (5,734) Stock issued in connection with employee benefit plans 3,493 1,437 NET CASH USED IN FINANCING ACTIVITIES (337,075) (198,655) EFFECT OF EXCHANGE RATE CHANGES ON CASH (136) 203 NET INCREASE IN CASH AND CASH EQUIVALENTS 116,503 11,322 CASH AND CASH EQUIVALENTS, beginning of period 511,248 783,998 CASH AND CASH EQUIVALENTS, end of period $627,751 $795,320 (a) Includes Capitalized Interest of $2.1 million and $8.5 million for the six months ended June 30, 2004 and 2003, respectively. Selected Segment Data: Three Months Ended Six Months Ended June 30, June 30, (in 000's) (in 000's) 2004 2003 2004 2003 FSS Revenue $188,782 $193,582 $378,209 $389,254 EBITDA (2) 111,912 147,072 156,136 293,743 Depreciation and Amortization Expense 70,970 74,867 145,867 147,124 Income from operations 40,942 72,205 10,269 146,619 Capital Expenditures 62,202 21,663 83,886 54,744 G2 Revenue 22,605 15,402 44,421 25,033 EBITDA (2) 3,917 2,288 6,105 4,159 Depreciation and Amortization Expense 342 42 780 52 Income from operations 3,575 2,246 5,325 4,107 Capital Expenditures -- -- -- -- Eliminations Revenue (4,562) (5,391) (10,375) (10,938) Total Revenue 206,825 203,593 412,255 403,349 EBITDA (2) 115,829 149,360 162,241 297,902 Depreciation and Amortization Expense 71,312 74,909 146,647 147,176 Income from operations 44,517 74,451 15,594 150,726 Capital Expenditures 62,202 21,663 83,886 54,744 DATASOURCE: PanAmSat Corporation CONTACT: Kathryn Lancioni, Media/Investors of PanAmSat Corporation, +1-203-210-8649 Web site: http://www.panamsat.com/

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