ENGLEWOOD, Colo., May 8, 2019 /PRNewswire/ -- EchoStar
Corporation (NASDAQ: SATS) today announced its financial results
for the three months ended March 31,
2019.
Financial Highlights:
- Consolidated revenues of $531
million.
- Consolidated net income of $15
million, consolidated net income attributable to EchoStar
common stock of $14 million, and
diluted earnings per share of $0.15.
- Consolidated Adjusted EBITDA of $206
million (see discussion and the reconciliation of GAAP to
this non-GAAP measure below).
Additional Highlights:
- Approximately 1,388,000 total Hughes broadband subscribers as
of March 31, 2019 including
approximately 150,000 subscribers in Latin America.
- Cash, cash equivalents and current marketable investment
securities of $3.3 billion as of
March 31, 2019.
Set forth below is a table highlighting certain of EchoStar's
segment results for the three months ended March 31, 2019 and 2018:
|
|
For the three
months
ended March 31,
|
|
|
|
2019
|
|
2018
|
|
|
|
(Dollars in
thousands)
|
Revenue
|
|
|
|
|
|
Hughes
|
|
$
|
445,337
|
|
|
$
|
400,818
|
|
|
EchoStar Satellite
Services
|
|
|
81,259
|
|
|
|
96,753
|
|
|
Corporate &
Other
|
|
|
4,486
|
|
|
|
4,221
|
|
|
Total
|
|
$
|
531,082
|
|
|
$
|
501,792
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
Hughes
|
|
$
|
161,864
|
|
|
$
|
137,108
|
|
|
EchoStar Satellite
Services
|
|
|
68,717
|
|
|
|
84,150
|
|
|
Corporate &
Other:
|
|
|
|
|
|
Corporate overhead,
operating and other
|
|
(20,116)
|
|
|
(17,870)
|
|
|
Equity in earnings
(losses) of unconsolidated affiliates, net
|
|
(4,827)
|
|
|
(1,009)
|
|
|
Sub-total
|
|
|
(24,943)
|
|
|
|
(18,879)
|
|
|
Total
|
|
$
|
205,638
|
|
|
$
|
202,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
15,008
|
|
|
$
|
(21,171)
|
|
|
Expenditures for
property and equipment
|
|
$
|
111,962
|
|
|
$
|
50,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Measurement:
|
|
For the three
months
ended March 31,
|
|
|
|
2019
|
|
2018
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
15,008
|
|
|
$
|
(21,171)
|
|
|
Interest income and
expense, net
|
|
35,453
|
|
|
47,116
|
|
|
Income tax provision
(benefit), net
|
|
8,180
|
|
|
(5,403)
|
|
|
Depreciation and
amortization
|
|
154,221
|
|
|
145,554
|
|
|
Net income
attributable to noncontrolling interests
|
|
(806)
|
|
|
(380)
|
|
|
(Gains) loss on
investment, net
|
|
(6,418)
|
|
|
36,663
|
|
|
Adjusted
EBITDA
|
|
$
|
205,638
|
|
|
$
|
202,379
|
|
|
Note on Use of Non-GAAP Financial
Measures
Adjusted EBITDA is defined as "Net income
(loss)" excluding "Interest income and expense, net," "Income tax
provision (benefit), net," "Depreciation and amortization," "Net
income (loss) attributable to noncontrolling interests," and "Gains
and losses on investments, net." Adjusted EBITDA is not a measure
determined in accordance with US GAAP. Adjusted EBITDA is
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 this non-GAAP measure as a measure of our
operating efficiency and overall financial performance for
benchmarking against our peers and competitors. Management believes
that this non-GAAP measure provides meaningful supplemental
information regarding the underlying operating performance of our
business and is appropriate to enhance an overall understanding of
our financial performance. Management also believes that Adjusted
EBITDA is useful to investors because it is 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 March 31, 2019 and 2018
are attached to this press release. Detailed financial data and
other information are available in EchoStar's Quarterly Report on
Form 10-Q for the period ended March 31,
2019 filed today with the Securities and Exchange
Commission.
EchoStar will host its earnings conference call on Wednesday, May 8, 2019 at 11:00 a.m. Eastern Time. The call-in numbers are
(877) 815-1625 (toll-free) and (716) 247-5178 (international),
Conference ID 8058859.
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," "estimate," "expect," "intend," "project,"
"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, 2018 and Quarterly Report on Form
10-Q for the period ended March 31,
2019, 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
(Dollars in
thousands, except per share amounts)
|
|
|
|
As of
|
|
|
March 31,
2019
|
|
December 31,
2018
|
Assets
|
|
(Unaudited)
|
|
(Audited)
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,349,724
|
|
|
$
|
928,306
|
|
Marketable investment
securities, at fair value
|
|
1,925,108
|
|
|
2,282,152
|
|
Trade accounts
receivable and contract assets, net (Note 3)
|
|
216,558
|
|
|
201,096
|
|
Trade accounts
receivable - DISH Network
|
|
19,510
|
|
|
14,200
|
|
Inventory
|
|
76,114
|
|
|
75,379
|
|
Prepaids and
deposits
|
|
66,119
|
|
|
61,177
|
|
Other current
assets
|
|
24,508
|
|
|
18,539
|
|
Total current
assets
|
|
3,677,641
|
|
|
3,580,849
|
|
Noncurrent
assets:
|
|
|
|
|
Property and
equipment, net
|
|
3,363,404
|
|
|
3,414,908
|
|
Operating lease
right-of-use assets
|
|
115,647
|
|
|
—
|
|
Regulatory
authorizations, net
|
|
494,253
|
|
|
495,654
|
|
Goodwill
|
|
504,173
|
|
|
504,173
|
|
Other intangible
assets, net
|
|
40,550
|
|
|
44,231
|
|
Investments in
unconsolidated entities
|
|
227,828
|
|
|
262,473
|
|
Other receivables -
DISH Network
|
|
95,889
|
|
|
95,114
|
|
Other noncurrent
assets, net
|
|
259,506
|
|
|
263,892
|
|
Total noncurrent
assets
|
|
5,101,250
|
|
|
5,080,445
|
|
Total
assets
|
|
$
|
8,778,891
|
|
|
$
|
8,661,294
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Trade accounts
payable
|
|
$
|
115,752
|
|
|
$
|
121,437
|
|
Trade accounts
payable - DISH Network
|
|
2,826
|
|
|
1,698
|
|
Current portion of
long-term debt and finance lease obligations
|
|
953,636
|
|
|
959,577
|
|
Contract
liabilities
|
|
90,180
|
|
|
72,284
|
|
Accrued
interest
|
|
55,552
|
|
|
47,416
|
|
Accrued
compensation
|
|
35,161
|
|
|
54,242
|
|
Accrued
taxes
|
|
17,455
|
|
|
16,013
|
|
Accrued expenses and
other
|
|
75,443
|
|
|
72,470
|
|
Total current
liabilities
|
|
1,346,005
|
|
|
1,345,137
|
|
Noncurrent
liabilities:
|
|
|
|
|
Long-term debt and
finance lease obligations, net
|
|
2,563,429
|
|
|
2,573,204
|
|
Deferred tax
liabilities, net
|
|
475,464
|
|
|
465,933
|
|
Operating lease
liabilities
|
|
95,215
|
|
|
—
|
|
Other noncurrent
liabilities
|
|
119,242
|
|
|
121,546
|
|
Total noncurrent
liabilities
|
|
3,253,350
|
|
|
3,160,683
|
|
Total
liabilities
|
|
4,599,355
|
|
|
4,505,820
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock,
$0.001 par value, 20,000,000 shares authorized, none issued and
outstanding at each of March 31, 2019
and December 31, 2018
|
|
—
|
|
|
—
|
|
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,
54,514,833 shares issued and
48,029,912 shares outstanding at March 31, 2019 and 54,142,566
shares issued and 47,657,645 shares outstanding
at December 31, 2018
|
|
54
|
|
|
54
|
|
Class B
convertible common stock, $0.001 par value, 800,000,000 shares
authorized, 47,687,039 shares issued and
outstanding at each of March 31, 2019 and December 31,
2018
|
|
48
|
|
|
48
|
|
Class C
convertible common stock, $0.001 par value, 800,000,000 shares
authorized, none issued and outstanding at
each of March 31, 2019 and December 31, 2018
|
|
—
|
|
|
—
|
|
Class D common
stock, $0.001 par value, 800,000,000 shares authorized, none issued
and outstanding at each of
March 31, 2019 and December 31, 2018
|
|
—
|
|
|
—
|
|
Additional paid-in
capital
|
|
3,713,777
|
|
|
3,702,522
|
|
Accumulated other
comprehensive loss
|
|
(124,251)
|
|
|
(125,100)
|
|
Accumulated
earnings
|
|
709,928
|
|
|
694,129
|
|
Treasury stock, at
cost
|
|
(131,454)
|
|
|
(131,454)
|
|
Total EchoStar
Corporation stockholders' equity
|
|
4,168,102
|
|
|
4,140,199
|
|
Other noncontrolling
interests
|
|
11,434
|
|
|
15,275
|
|
Total stockholders'
equity
|
|
4,179,536
|
|
|
4,155,474
|
|
Total liabilities and
stockholders' equity
|
|
$
|
8,778,891
|
|
|
$
|
8,661,294
|
|
ECHOSTAR
CORPORATION
Consolidated
Statements of Operations
(Dollars in
thousands, except per share amounts)
|
|
|
|
For the three
months
ended March 31,
|
|
|
2019
|
|
2018
|
Revenue:
|
|
|
|
|
Services and other
revenue - DISH Network
|
|
$
|
85,888
|
|
|
$
|
103,805
|
|
Services and other
revenue - other
|
|
393,480
|
|
|
355,040
|
|
Equipment
revenue
|
|
51,714
|
|
|
42,947
|
|
Total
revenue
|
|
531,082
|
|
|
501,792
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Cost of sales -
services and other (exclusive of depreciation and
amortization)
|
|
153,571
|
|
|
148,745
|
|
Cost of sales -
equipment (exclusive of depreciation and amortization)
|
|
45,007
|
|
|
39,071
|
|
Selling, general and
administrative expenses
|
|
112,134
|
|
|
103,275
|
|
Research and
development expenses
|
|
6,888
|
|
|
7,137
|
|
Depreciation and
amortization
|
|
154,221
|
|
|
145,554
|
|
Total costs and
expenses
|
|
471,821
|
|
|
443,782
|
|
Operating
income
|
|
59,261
|
|
|
58,010
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
Interest
income
|
|
24,429
|
|
|
15,635
|
|
Interest expense, net
of amounts capitalized
|
|
(59,882)
|
|
|
(62,751)
|
|
Gains (losses) on
investments, net
|
|
6,418
|
|
|
(36,663)
|
|
Equity in losses of
unconsolidated affiliates, net
|
|
(6,353)
|
|
|
(1,009)
|
|
Other, net
|
|
(685)
|
|
|
204
|
|
Total other expense,
net
|
|
(36,073)
|
|
|
(84,584)
|
|
Income (loss) before
income taxes
|
|
23,188
|
|
|
(26,574)
|
|
Income tax benefit
(provision), net
|
|
(8,180)
|
|
|
5,403
|
|
Net income
(loss)
|
|
15,008
|
|
|
(21,171)
|
|
Less: Net income
attributable to noncontrolling interests
|
|
806
|
|
|
380
|
|
Net income (loss)
attributable to EchoStar Corporation common stock
|
|
$
|
14,202
|
|
|
$
|
(21,551)
|
|
|
|
|
|
|
Earnings per share
- Class A and B common stock:
|
|
|
|
|
Basic earnings (loss)
per share
|
|
$
|
0.15
|
|
|
$
|
(0.22)
|
|
Diluted earnings
(loss) per share
|
|
$
|
0.15
|
|
|
$
|
(0.22)
|
|
ECHOSTAR
CORPORATION
Consolidated
Statements of Cash Flows
(Dollars in
thousands, except per share amounts)
|
|
|
|
For the three
months ended March 31,
|
|
|
2019
|
|
2018
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
(loss)
|
|
$
|
15,008
|
|
|
$
|
(21,171)
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
154,221
|
|
|
145,554
|
|
Equity in losses of
unconsolidated affiliates, net
|
|
6,353
|
|
|
1,009
|
|
Amortization of debt
issuance costs
|
|
2,010
|
|
|
1,936
|
|
(Gains) losses on
investments, net
|
|
(6,418)
|
|
|
36,673
|
|
Stock-based
compensation
|
|
2,628
|
|
|
2,765
|
|
Deferred tax
(benefit) provision
|
|
6,455
|
|
|
(7,036)
|
|
Changes in current
assets and current liabilities, net:
|
|
|
|
|
Trade accounts
receivable, net
|
|
(19,231)
|
|
|
23,153
|
|
Trade accounts
receivable - DISH Network
|
|
(5,310)
|
|
|
(13,473)
|
|
Inventory
|
|
(1,036)
|
|
|
(2,297)
|
|
Other current
assets
|
|
(4,024)
|
|
|
(10,926)
|
|
Trade accounts
payable
|
|
8,831
|
|
|
(6,471)
|
|
Trade accounts
payable - DISH Network
|
|
1,128
|
|
|
(1,011)
|
|
Accrued expenses and
other
|
|
6,854
|
|
|
(2,288)
|
|
Changes in noncurrent
assets and noncurrent liabilities, net
|
|
5,563
|
|
|
(13,982)
|
|
Other, net
|
|
2,914
|
|
|
2,840
|
|
Net cash flows from
operating activities
|
|
175,946
|
|
|
135,275
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of
marketable investment securities
|
|
(325,557)
|
|
|
(562,611)
|
|
Sales and maturities
of marketable investment securities
|
|
712,666
|
|
|
298,596
|
|
Expenditures for
property and equipment
|
|
(111,962)
|
|
|
(128,506)
|
|
Refunds and other
receipts related to property and equipment
|
|
—
|
|
|
77,524
|
|
Expenditures for
externally marketed software
|
|
(7,600)
|
|
|
(7,148)
|
|
Net cash flows from
investing activities
|
|
267,547
|
|
|
(322,145)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Repayment of debt and
finance lease obligations
|
|
(9,882)
|
|
|
(9,368)
|
|
Repurchase of
debt
|
|
(8,046)
|
|
|
—
|
|
Net proceeds from
Class A common stock options exercised
|
|
2,047
|
|
|
3,481
|
|
Net proceeds from
Class A common stock issued under the Employee Stock Purchase
Plan
|
|
2,749
|
|
|
2,636
|
|
Noncontrolling
interest purchase
|
|
(7,313)
|
|
|
—
|
|
Repayment of in-orbit
incentive obligations
|
|
(1,573)
|
|
|
(1,265)
|
|
Other, net
|
|
(131)
|
|
|
(243)
|
|
Net cash flows from
financing activities
|
|
(22,149)
|
|
|
(4,759)
|
|
Effect of exchange
rates on cash and cash equivalents
|
|
(133)
|
|
|
(242)
|
|
Net increase
(decrease) in cash and cash equivalents, including restricted
amounts
|
|
421,211
|
|
|
(191,871)
|
|
Cash and cash
equivalents, including restricted amounts, beginning of
period
|
|
929,495
|
|
|
2,432,249
|
|
Cash and cash
equivalents, including restricted amounts, end of period
|
|
$
|
1,350,706
|
|
|
$
|
2,240,378
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
Cash paid for
interest, net of amounts capitalized
|
|
$
|
54,572
|
|
|
$
|
51,073
|
|
Cash paid for income
taxes
|
|
$
|
772
|
|
|
$
|
839
|
|
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multimedia:http://www.prnewswire.com/news-releases/echostar-announces-financial-results-for-three-months-ended-march-31-2019-300845871.html
SOURCE EchoStar Corporation