EchoStar Announces Financial Results for Three and Six Months Ending June 30, 2017
Englewood, CO, August 9, 2017—EchoStar Corporation (NASDAQ: SATS) today announced its financial results for the three and six months ending June 30, 2017.
Three Months Ending June 30, 2017 Financial Highlights:
- Consolidated revenues of $465 million.
- Consolidated net income from continuing operations of $6.6 million, consolidated net income attributable to EchoStar common stock of $6.9 million and diluted earnings per share of 0.07.
- Consolidated net income from continuing operations declined compared to the three months ended June 30, 2016 primarily due to:
- An increase of $22.3 million in interest expense from the issuance of bonds in July 2016;
- A decrease of $13.1 million in capitalized interest relating to satellites placed into service in 2017; and
- An increase of $24.0 million in depreciation expense primarily on those satellites;
- Partially offset by a decrease in income tax expense of $20.7 million.
- Consolidated EBITDA of $185 million (see reconciliation of this non-GAAP measure below).
Six Months Ended June 30, 2017 Financial Highlights:
- Consolidated revenue of $898 million.
- Consolidated net income from continuing operations of $37.4 million, consolidated net income attributable to EchoStar common stock of $45.9 million and diluted earnings per share of $0.48.
- Consolidated EBITDA of $368 million (see reconciliation of this non-GAAP measure below).
Additional Highlights:
- Approximately 1,085,000 Hughes broadband subscribers as of June 30, 2017.
- Cash, cash equivalents and current marketable investment securities of $3.27 billion as of June 30, 2017
Starting with the quarter that ended March 31, 2017, we changed the way we present our segments. Previously, our business segments reflected an allocation of the costs of our corporate functions. Under our new presentation, these costs are no longer allocated to the operating segments and are now reported as part of the Corporate and Other segment (previously “All Other and Eliminations”).
In addition, results of our EchoStar Technology segment, which was transferred to DISH Network Corporation in the Share Exchange transaction, are included in Discontinued Operations.
Set forth below is a table highlighting certain of EchoStar’s segment results for the three and six months ended June 30, 2017 and 2016:
The following table reconciles total consolidated Net income to EBITDA.
|
|
|
For the Three Months |
|
For the Six Months |
||||||||||||
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
||||||||
|
|
|
(Dollars in thousands) |
||||||||||||||
|
Net income |
|
$ |
7,122 |
|
|
$ |
55,909 |
|
|
$ |
44,474 |
|
|
$ |
104,352 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest income and expense, net |
|
45,417 |
|
|
16,387 |
|
|
82,522 |
|
|
35,593 |
|
||||
|
Income tax provision |
|
3,003 |
|
|
23,692 |
|
|
2,991 |
|
|
43,864 |
|
||||
|
Depreciation and amortization |
|
130,034 |
|
|
106,117 |
|
|
245,117 |
|
|
216,194 |
|
||||
|
Net income from discontinued operations |
|
(531 |
) |
|
(11,656 |
) |
|
(7,108 |
) |
|
(24,714 |
) |
||||
|
Net (income) loss attributable to noncontrolling interests |
|
(182 |
) |
|
(123 |
) |
|
181 |
|
|
589 |
|
||||
|
EBITDA |
|
$ |
184,863 |
|
|
$ |
190,326 |
|
|
$ |
368,177 |
|
|
$ |
375,878 |
|
Note on Use of Non-GAAP Financial Measures
EBITDA is defined as “Net income” excluding “Interest expense, net of amounts capitalized,” “Interest income”, “Income tax provision” and “Depreciation and amortization.” EBITDA is not a measure determined in accordance with US GAAP. This non-GAAP measure is reconciled to net income in the table above. EBITDA should not be considered in isolation or as a substitute for operating income, net income or any other measure determined in accordance with GAAP. EBITDA is used by our management as a measure of operating efficiency and overall financial performance for benchmarking against our peers and competitors. Management believes EBITDA provides meaningful supplemental information regarding the underlying operating performance of our business. Management also believes that 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 June 30, 2017 and 2016 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 June 30, 2017 filed today with the Securities and Exchange Commission.
EchoStar will host its earnings conference call on Wednesday, August 9, 2017 at 11:00 a.m. Eastern Time. The call-in numbers are (877) 815-1625 (toll-free) and (716) 247-5178 (international), Conference ID # 63515337.