ENGLEWOOD, Colo., Nov. 6, 2023 /PRNewswire/ -- EchoStar Corporation (Nasdaq: SATS) announced its financial results for the three and nine months ended September 30, 2023.
Three Months Ended September 30, 2023 Financial Highlights:
Nine months ended September 30, 2023 Financial Highlights:
"In the third quarter of 2023, the EchoStar team was fully engaged across our business. We received orders from new and existing customers in our enterprise, international, government, and mobility groups," said Hamid Akhavan, CEO and President of EchoStar. "Our consumer team continued to expand adoption of our low-latency HughesNet Fusion plans and the JUPITER 3/EchoStar XXIV satellite is fully functional and expected to begin commercial service in December."
Three Months Ended September 30, 2023 - Additional Information:
Set forth below is a table highlighting certain of EchoStar's segment results for the three and nine months ended September 30, 2023 and 2022 (amounts in thousands) (all US GAAP amounts reference results from operations):
For the three months | For the nine months | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Revenue | ||||||||
Hughes | $ 404,209 | $ 489,565 | $ 1,279,739 | $ 1,475,512 | ||||
EchoStar Satellite Services | 6,446 | 4,981 | 18,563 | 14,305 | ||||
Corporate and Other | 2,419 | 2,841 | 7,478 | 8,420 | ||||
Total revenue | $ 413,074 | $ 497,387 | $ 1,305,780 | $ 1,498,237 | ||||
Net income (loss) | $ 532 | $ 19,550 | $ 37,437 | $ 118,968 | ||||
Adjusted EBITDA | ||||||||
Hughes | $ 143,730 | $ 177,574 | $ 469,007 | $ 544,284 | ||||
EchoStar Satellite Services | 4,867 | 3,447 | 14,085 | 9,658 | ||||
Corporate & Other | (22,788) | (22,202) | (69,042) | (61,506) | ||||
Total Adjusted EBITDA | $ 125,809 | $ 158,819 | $ 414,050 | $ 492,436 | ||||
Expenditures for property and equipment, net of refunds and other receipts | $ 79,164 | $ 61,457 | $ 172,251 | $ 249,374 | ||||
Reconciliation of GAAP to Non-GAAP Measurement (amounts in thousands):
For the three months | For the nine months | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Net income (loss) | $ 532 | $ 19,550 | $ 37,437 | $ 118,968 | ||||
Interest income, net | (26,209) | (14,183) | (78,331) | (29,677) | ||||
Interest expense, net of amounts capitalized | 12,650 | 13,845 | 39,176 | 43,125 | ||||
Income tax provision (benefit), net | 8,547 | 13,195 | 38,780 | 51,367 | ||||
Depreciation and amortization | 103,028 | 110,233 | 311,474 | 347,224 | ||||
Net loss (income) attributable to non-controlling interests | 2,712 | 2,853 | 6,005 | 8,736 | ||||
EBITDA | $ 101,260 | $ 145,493 | $ 354,541 | $ 539,743 | ||||
(Gains) losses on investments, net | 10,743 | 10,077 | 23,337 | (48,071) | ||||
Foreign currency transaction (gains) losses, net | 2,089 | 2,805 | (4,482) | 53 | ||||
Impairment of long-lived assets | — | — | 3,142 | 711 | ||||
Other-than-temporary impairment losses on equity method investments | — | — | 33,400 | — | ||||
Merger costs | 11,717 | — | 11,717 | — | ||||
Gain on repayment of other debt securities | — | — | (7,605) | — | ||||
License fee dispute - India, net of non-controlling interests | — | 444 | — | — | ||||
Adjusted EBITDA | $ 125,809 | $ 158,819 | $ 414,050 | $ 492,436 | ||||
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 September 30, 2023 and 2022 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 September 30, 2023 filed today with the Securities and Exchange Commission.
EchoStar will host a webcast to discuss its earnings on Monday, November 6, 2023 at 11:00 a.m. Eastern Time. The webcast will be broadcast live in listen-only mode on EchoStar's investor relations website at ir.echostar.com. To participate via telephone and ask a question, participants must register using an online form found at: https://register.vevent.com/register/BIffe2a41bff0e4a198973106da5a17dab.
About EchoStar Corporation
EchoStar Corporation (Nasdaq: SATS) is a premier technology and networking services provider offering consumer, enterprise, operator and government solutions worldwide under its Hughes®, HughesNet® and EchoStar® brands. In Europe, EchoStar operates under its EchoStar Mobile Limited subsidiary and in Australia, the Company operates as EchoStar Global Australia. For more information, visit www.echostar.com and follow EchoStar on social media.
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 that are described under the caption "Risk Factors" in EchoStar's Annual Report on Form 10-K for the period ended December 31, 2022 and subsequent Quarterly Reports on Form 10-Q 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 | ||||
(In thousands, except share and per share amounts) | ||||
As of | ||||
September 30, | December 31, | |||
(unaudited) | ||||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $ 1,094,531 | $ 704,541 | ||
Marketable investment securities | 894,744 | 973,915 | ||
Trade accounts receivable and contract assets, net | 235,421 | 236,479 | ||
Other current assets, net | 248,241 | 210,446 | ||
Total current assets | 2,472,937 | 2,125,381 | ||
Non-current assets: | ||||
Property and equipment, net | 2,144,707 | 2,237,617 | ||
Operating lease right-of-use assets | 143,726 | 151,518 | ||
Goodwill | 532,710 | 532,491 | ||
Regulatory authorizations, net | 459,463 | 462,531 | ||
Other intangible assets, net | 13,975 | 15,698 | ||
Other investments, net | 136,455 | 356,705 | ||
Other non-current assets, net | 326,485 | 317,062 | ||
Total non-current assets | 3,757,521 | 4,073,622 | ||
Total assets | $ 6,230,458 | $ 6,199,003 | ||
Liabilities and Stockholders' Equity | ||||
Current liabilities: | ||||
Trade accounts payable | $ 82,291 | $ 101,239 | ||
Contract liabilities | 122,288 | 121,739 | ||
Accrued expenses and other current liabilities | 192,100 | 199,853 | ||
Total current liabilities | 396,679 | 422,831 | ||
Non-current liabilities: | ||||
Long-term debt, net | 1,497,396 | 1,496,777 | ||
Deferred tax liabilities, net | 433,370 | 424,621 | ||
Operating lease liabilities | 127,829 | 135,932 | ||
Other non-current liabilities | 109,396 | 119,787 | ||
Total non-current liabilities | 2,167,991 | 2,177,117 | ||
Total liabilities | 2,564,670 | 2,599,948 | ||
Commitments and contingencies | ||||
ECHOSTAR CORPORATION | ||||
Consolidated Balance Sheets | ||||
(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 September 30, 2023 and December 31, 2022 | — | — | ||
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, 59,532,668 shares issued and 36,219,357 shares outstanding at September 30, 2023 and 58,604,927 shares issued and 35,291,616 shares outstanding at December 31, 2022 | 59 | 59 | ||
Class B convertible common stock, $0.001 par value, 800,000,000 shares authorized, 47,687,039 shares issued and outstanding at both September 30, 2023 and December 31, 2022 | 48 | 48 | ||
Class C convertible common stock, $0.001 par value, 800,000,000 shares authorized, none issued and outstanding at both September 30, 2023 and December 31, 2022 | — | — | ||
Class D common stock, $0.001 par value, 800,000,000 shares authorized, none issued and outstanding at both September 30, 2023 and December 31, 2022 | — | — | ||
Additional paid-in capital | 3,383,671 | 3,367,058 | ||
Accumulated other comprehensive income (loss) | (161,515) | (172,239) | ||
Accumulated earnings (losses) | 876,959 | 833,517 | ||
Treasury shares, at cost, 23,313,311 at both September 30, 2023 and December 31, 2022 | (525,824) | (525,824) | ||
Total EchoStar Corporation stockholders' equity | 3,573,398 | 3,502,619 | ||
Non-controlling interests | 92,390 | 96,436 | ||
Total stockholders' equity | 3,665,788 | 3,599,055 | ||
Total liabilities and stockholders' equity | $ 6,230,458 | $ 6,199,003 | ||
ECHOSTAR CORPORATION | ||||||||
Consolidated Statements of Operations | ||||||||
(Unaudited, in thousands, except per share amounts) | ||||||||
For the three months | For the nine months | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Revenue: | ||||||||
Services and other revenue | $ 359,349 | $ 401,382 | $ 1,108,386 | $ 1,234,890 | ||||
Equipment revenue | 53,725 | 96,005 | 197,394 | 263,347 | ||||
Total revenue | 413,074 | 497,387 | 1,305,780 | 1,498,237 | ||||
Costs and expenses: | ||||||||
Cost of sales - services and other (exclusive of depreciation and amortization) | 133,335 | 145,189 | 401,431 | 430,553 | ||||
Cost of sales - equipment (exclusive of depreciation and amortization) | 43,180 | 74,329 | 151,004 | 213,497 | ||||
Selling, general and administrative expenses | 104,988 | 111,421 | 322,469 | 342,682 | ||||
Research and development expenses | 6,463 | 9,181 | 21,560 | 25,562 | ||||
Depreciation and amortization | 103,028 | 110,233 | 311,474 | 347,224 | ||||
Impairment of long-lived assets | — | — | 3,142 | 711 | ||||
Total costs and expenses | 390,994 | 450,353 | 1,211,080 | 1,360,229 | ||||
Operating income (loss) | 22,080 | 47,034 | 94,700 | 138,008 | ||||
Other income (expense): | ||||||||
Interest income, net | 26,209 | 14,183 | 78,331 | 29,677 | ||||
Interest expense, net of amounts capitalized | (12,650) | (13,845) | (39,176) | (43,125) | ||||
Gains (losses) on investments, net | (10,743) | (10,077) | (23,337) | 48,071 | ||||
Equity in earnings (losses) of unconsolidated affiliates, net | (1,978) | (1,426) | (3,075) | (4,441) | ||||
Other-than-temporary impairment losses on equity method investments | — | — | (33,400) | — | ||||
Foreign currency transaction gains (losses), net | (2,089) | (2,805) | 4,482 | (53) | ||||
Other, net | (11,750) | (319) | (2,308) | 2,198 | ||||
Total other income (expense), net | (13,001) | (14,289) | (18,483) | 32,327 | ||||
Income (loss) before income taxes | 9,079 | 32,745 | 76,217 | 170,335 | ||||
Income tax benefit (provision), net | (8,547) | (13,195) | (38,780) | (51,367) | ||||
Net income (loss) | 532 | 19,550 | 37,437 | 118,968 | ||||
Less: Net loss (income) attributable to non-controlling interests | 2,712 | 2,853 | 6,005 | 8,736 | ||||
Net income (loss) attributable to EchoStar Corporation common stock | $ 3,244 | $ 22,403 | $ 43,442 | $ 127,704 | ||||
Earnings (losses) per share - Class A and B common stock: | ||||||||
Basic | $ 0.04 | $ 0.27 | $ 0.52 | $ 1.51 | ||||
Diluted | $ 0.04 | $ 0.27 | $ 0.52 | $ 1.51 | ||||
ECHOSTAR CORPORATION | ||||
Consolidated Statements of Cash Flows | ||||
(Unaudited, in thousands) | ||||
For the nine months ended | ||||
2023 | 2022 | |||
Cash flows from operating activities: | ||||
Net income (loss) | $ 37,437 | $ 118,968 | ||
Adjustments to reconcile net income (loss) to cash flows provided by (used for) operating activities: | ||||
Depreciation and amortization | 311,474 | 347,224 | ||
Impairment of long-lived assets | 3,142 | 711 | ||
Losses (gains) on investments, net | 23,337 | (48,071) | ||
Equity in losses of unconsolidated affiliates, net | 3,075 | 4,441 | ||
Foreign currency transaction losses (gains), net | (4,482) | 53 | ||
Deferred tax provision, net | 8,088 | 28,901 | ||
Stock-based compensation | 8,239 | 8,401 | ||
Amortization of debt issuance costs | 619 | 583 | ||
Gain on repayment of other debt securities | (7,605) | — | ||
Other-than-temporary impairment losses on equity method investments | 33,400 | — | ||
Accretion of discounts on debt investments | (21,340) | 159 | ||
Other, net | (6,634) | 35,450 | ||
Changes in assets and liabilities, net: | ||||
Trade accounts receivable and contract assets, net | 2,940 | (63,563) | ||
Other current assets, net | (46,216) | (26,402) | ||
Trade accounts payable | (22,817) | 657 | ||
Contract liabilities | 549 | (13,759) | ||
Accrued expenses and other current liabilities | (489) | (27,004) | ||
Non-current assets and non-current liabilities, net | (21,694) | (23,432) | ||
Net cash provided by (used for) operating activities | 301,023 | 343,317 | ||
Cash flows from investing activities: | ||||
Purchases of marketable investment securities | (1,015,650) | (540,447) | ||
Sales and maturities of marketable investment securities | 1,150,683 | 917,077 | ||
Expenditures for property and equipment | (206,862) | (249,374) | ||
Refunds and other receipts related to capital expenditures | 34,611 | — | ||
Expenditures for externally marketed software | (22,373) | (16,926) | ||
Proceeds from repayment of other debt investment | 148,448 | — | ||
India JV formation | — | (7,892) | ||
Dividend received from unconsolidated affiliate | — | 2,000 | ||
Sale of unconsolidated affiliate | — | 7,500 | ||
Sales of other investments | — | 3,070 | ||
Net cash provided by (used for) investing activities | 88,857 | 115,008 | ||
Cash flows from financing activities: | ||||
Payment of finance lease obligations | — | (114) | ||
Payment of in-orbit incentive obligations | (3,144) | (2,422) | ||
Proceeds from Class A common stock issued under the Employee Stock Purchase Plan | 2,953 | 7,173 | ||
Payment of equity registration fees | (1,327) | — | ||
Treasury share repurchase | — | (89,303) | ||
Net cash provided by (used for) financing activities | (1,518) | (84,666) | ||
Effect of exchange rates on cash and cash equivalents | 1,622 | (3,123) | ||
Net increase (decrease) in cash and cash equivalents | 389,984 | 370,536 | ||
Cash and cash equivalents, including restricted amounts, beginning of period | 705,882 | 536,874 | ||
Cash and cash equivalents, including restricted amounts, end of period | $ 1,095,866 | $ 907,410 | ||
| Last Trade: | US$17.44 |
| Daily Change: | -0.78 -4.28 |
| Daily Volume: | 846,902 |
| Market Cap: | US$2.440B |
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