EchoStar Announces Financial Results for Three and Twelve Months Ended December 31, 2020 February 23, 2021 Englewood, CO, February 23, 2021—EchoStar Corporation (NASDAQ: SATS) today announced its financial results for the three and twelve months ended December 31, 2020. Three Months Ended December 31, 2020 Financial Highlights: Consolidated revenues of $489.3 million. Net loss from continuing operations of $2.6 million, consolidated net income attributable to EchoStar common stock of $0.1 million, and diluted earnings per share of $0.01. Consolidated Adjusted EBITDA of $166.7 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below). Twelve Months Ended December 31, 2020 Financial Highlights: Consolidated revenues of $1,887.9 million. Net loss from continuing operations of $51.9 million, consolidated net loss attributable to EchoStar common stock of $40.2 million, and diluted loss per share of $(0.41). Consolidated Adjusted EBITDA of $642.9 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below). “2020 will go down in the history books as one of the most challenging on record, but it demonstrated the value of our service to businesses and families and brought out the very best of the EchoStar team,” commented Michael Dugan, CEO and President of EchoStar. “Thanks to their efforts and accomplishments in every market sector, we delivered solid financial results and grew revenue, net income, and Adjusted EBITDA over 2019. We remain excited about our position in the industry and our ability to grow as the demand for connectivity continues to increase.” Three Months Ended December 31, 2020 - Additional Information: Consolidated revenue was down $9.7 million year over year primarily driven by lower equipment sales as well as an estimated negative foreign exchange impact of $10.3 million. Adjusted EBITDA increased 7.0% or $10.8 million year over year. Hughes segment Adjusted EBITDA increased $11.7 million year over year. The increase was driven primarily by the higher margin associated with the growth in our consumer broadband service and lower sales and marketing spend. ESS segment Adjusted EBITDA was flat year over year. Corporate and Other segment Adjusted EBITDA decreased by $0.9 million year over year. The decrease was primarily due to higher spend on corporate development projects. Net loss from continuing operations was $2.6 million, an improvement of $53.7 million from last year. The change was primarily due to higher operating income of $6.5 million, lower net interest expense of $47.5 million driven primarily by $58.5 million of interest expense accrued in the fourth quarter of 2019 related to our license fee dispute with the government of India, improvement in foreign currency transactions, net, of $5.7 million, and higher gains on investments, net, of $5.6 million. This was partially offset by higher income tax provision, net, of $9.9 million. Total Hughes broadband subscribers are approximately 1,564,000 as of December 31, 2020. Subscribers in the US decreased by 27,000 to approximately 1,189,000. In Latin America, subscribers increased by 11,000 to approximately 375,000. Based on an updated schedule from Maxar, the Jupiter 3 satellite is expected to launch in the second half of 2022. In December 2020, we contracted for the launch of the satellite. For the three months ended December 31, 2020, approximately 69% of Hughes segment revenue was attributable to our consumer customers with approximately 31% attributable to our enterprise customers. Cash, cash equivalents and current marketable investment securities were $2.5 billion as of December 31, 2020. In December 2020, we purchased 1,708,907 shares of our Class A common stock in the open market. From January 1, 2021 through February 11, 2021, we purchased 2,851,841 shares of our Class A common stock in the open market. Set forth below is a table highlighting certain of EchoStar’s segment results for the three and twelve months ended December 31, 2020 and 2019 (amounts in thousands) from continuing operations (all US GAAP amounts reference results from continuing operations): For the three months ended December 31, For the twelve months ended December 31, 2020 2019 2020 2019 Revenue Hughes $482,418 $491,823 $1,860,834 $1,852,742 EchoStar Satellite Services 4,165 4,384 17,398 16,257 Corporate and Other 2,690 2,799 9,675 17,082 Total revenue $489,273 $499,006 $1,887,907 $1,886,081 Adjusted EBITDA Hughes $188,389 $176,738 $723,343 $666,890 EchoStar Satellite Services 2,026 1,988 7,873 6,994 Corporate & Other: Corporate overhead, operating and other (23,920) (23,090) (87,867) (81,859) Equity in earnings (losses) of unconsolidated affiliates, net 226 250 (434) (9,257) Total Corporate & Other (23,694) (22,840) (88,301) (91,116) Total Adjusted EBITDA $166,721 $155,886 $642,915 $582,768 Expenditures for property and equipment $113,757 $103,723 $408,798 $418,074 Reconciliation of GAAP to Non-GAAP Measurement (amounts in thousands): For the three months ended December 31, For the twelve months ended December 31, 2020 2019 2020 2019 Net income (loss) $(2,597) $(63,094) $(51,904) $(74,252) Interest income, net (6,275) (17,535) (39,982) (82,352) Interest expense, net of amounts capitalized 35,469 94,203 147,927 251,016 Income tax provision (benefit), net 17,760 7,882 24,069 20,488 Depreciation and amortization 132,934 129,146 525,011 490,765 Net (income) loss from discontinued operations — 6,821 — (39,401) Net (income) loss attributable to non-controlling interests 2,714 9,976 11,754 11,335 EBITDA 180,005 167,399 616,875 577,599 (Gains) losses on investments, net (6,458) (825) 31,306 (28,912) Impairment of long-lived assets 1,685 — 1,685 — Litigation expense — (627) — 25,701 License fee dispute - India, net of non-controlling interests 107 (7,150) (936) (3,210) Foreign currency transaction (gains) losses, net (8,618) (2,911) (6,015) 11,590 Adjusted EBITDA $166,721 $155,886 $642,915 $582,768 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,” “Net income (loss) from discontinued operations,” 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, 2020 and 2019 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, 2020 filed today with the Securities and Exchange Commission. EchoStar will host a conference call and webcast to discuss its earnings on Tuesday, February 23, 2021 at 11:00 a.m. Eastern Time. The call-in numbers are (877) 815-1625 (toll-free) and (716) 247-5178 (international), Conference ID 9174397. The webcast will be available on EchoStar’s investor relations website at www.echostar.com. 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, 2020 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 Condensed Consolidated Balance Sheets (Amounts in thousands, except per share amounts) As of December 31, 2020 2019 Assets Current assets: Cash and cash equivalents $896,005 $1,519,431 Marketable investment securities 1,638,271 940,623 Trade accounts receivable and contract assets, net 183,989 196,629 Other current assets, net 189,821 179,531 Total current assets 2,908,086 2,836,214 Non-current assets: Property and equipment, net 2,390,313 2,528,738 Operating lease right-of-use assets 128,303 114,042 Goodwill 511,597 506,953 Regulatory authorizations, net 478,762 478,598 Other intangible assets, net 18,433 29,507 Other investments, net 284,937 325,405 Other non-current assets, net 352,921 334,841 Total non-current assets 4,165,266 4,318,084 Total assets $7,073,352 $7,154,298 Liabilities and Stockholders' Equity Current liabilities: Trade accounts payable $122,366 $124,080 Current portion of long-term debt, net 898,237 — Contract liabilities 104,569 101,060 Accrued expenses and other current liabilities 299,999 270,879 Total current liabilities 1,425,171 496,019 Non-current liabilities: Long-term debt, net 1,495,256 2,389,168 Deferred tax liabilities, net 359,896 351,692 Operating lease liabilities 114,886 96,941 Other non-current liabilities 70,893 74,925 Total non-current liabilities 2,040,931 2,912,726 Total liabilities 3,466,102 3,408,745 Commitments and contingencies Stockholders' equity: Preferred stock, $0.001 par value, 20,000,000 shares authorized, none issued and outstanding at both December 31, 2020 and 2019 — — 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, 57,254,201 shares issued and 48,863,374 shares outstanding at December 31, 2020 and 56,592,251 shares issued and 50,107,330 shares outstanding at December 31, 2019 57 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, 2020 and 2019 48 48 Class C convertible common stock, $0.001 par value, 800,000,000 shares authorized, none issued and outstanding at both December 31, 2020 and 2019 — — Class D common stock, $0.001 par value, 800,000,000 shares authorized, none issued and outstanding at both December 31, 2020 and 2019 — — Additional paid-in capital 3,321,426 3,290,483 Accumulated other comprehensive income (loss) (187,876) (122,138) Accumulated earnings (losses) 583,591 632,809 Treasury stock, at cost (174,912) (131,454) Total EchoStar Corporation stockholders' equity 3,542,334 3,669,805 Non-controlling interests 64,916 75,748 Total stockholders' equity 3,607,250 3,745,553 Total liabilities and stockholders' equity $7,073,352 $7,154,298 ECHOSTAR CORPORATION Condensed Consolidated Statements of Operations (Amounts in thousands, except per share amounts) For the years ended December 31, 2020 2019 2018 Revenue: Services and other revenue $1,682,304 $1,619,271 $1,557,228 Equipment revenue 205,603 266,810 205,410 Total revenue 1,887,907 1,886,081 1,762,638 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) 577,943 561,353 563,907 Cost of sales - equipment (exclusive of depreciation and amortization) 166,435 226,002 176,600 Selling, general and administrative expenses 474,912 509,145 436,088 Research and development expenses 29,448 25,739 27,570 Depreciation and amortization 525,011 490,765 457,116 Impairment of long-lived assets 1,685 — 65,220 Total costs and expenses 1,775,434 1,813,004 1,726,501 Operating income (loss) 112,473 73,077 36,137 Other income (expense): Interest income, net 39,982 82,352 80,275 Interest expense, net of amounts capitalized (147,927) (251,016) (219,288) Gains (losses) on investments, net (31,306) 28,912 (12,622) Equity in earnings (losses) of unconsolidated affiliates, net (7,267) (14,734) (5,954) Foreign currency transaction gains (losses), net 6,015 (11,590) (15,583) Other, net 195 (166) 11,249 Total other income (expense), net (140,308) (166,242) (161,923) Income (loss) from continuing operations before income taxes (27,835) (93,165) (125,786) Income tax benefit (provision), net (24,069) (20,488) (6,576) Net income (loss) from continuing operations (51,904) (113,653) (132,362) Net income (loss) from discontinued operations — 39,401 93,729 Net income (loss) (51,904) (74,252) (38,633) Less: Net loss (income) attributable to non-controlling interests 11,754 11,335 (1,842) Net income (loss) attributable to EchoStar Corporation common stock $(40,150) $(62,917) $(40,475) Earnings (losses) per share - Class A and B common stock: Basic and diluted earnings (losses) from continuing operations per share $(0.41) $(1.06) $(1.39) Total basic and diluted earnings (losses) per share $(0.41) $(0.65) $(0.42) ECHOSTAR CORPORATION Condensed Consolidated Statements of Cash Flows (Amounts in thousands, except per share amounts) For the years ended December 31, 2020 2019 2018 Cash flows from operating activities: Net income (loss) $(51,904) $(74,252) $(38,633) Adjustments to reconcile net income (loss) to net cash flows from operating activities: Depreciation and amortization 525,011 588,200 598,178 Impairment of long-lived assets 1,685 — 65,220 Losses (gains) on investments, net 31,306 (28,912) 12,109 Equity in losses (earnings) of unconsolidated affiliates, net 7,267 14,734 6,037 Foreign currency transaction losses (gains), net (6,015) 11,590 15,583 Deferred tax provision (benefit), net 18,147 32,542 26,327 Stock-based compensation 8,887 9,353 9,990 Amortization of debt issuance costs 4,324 5,912 7,923 Dividends received from unconsolidated affiliates — 2,716 10,000 Other, net (12,501) 6,297 (3,489) Changes in assets and current liabilities, net: Trade accounts receivable and contract assets, net 2,237 8,289 (17,842) Other current assets, net (12,984) (39,190) 18,577 Trade accounts payable (12,339) 13,149 9,562 Contract liabilities 3,509 26,376 7,867 Accrued expenses and other current liabilities 42,822 66,352 12,183 Non-current assets and non-current liabilities, net (15,064) 13,166 (5,070) Net cash flows from operating activities 534,388 656,322 734,522 Cash flows from investing activities: Purchases of marketable investment securities (2,799,838) (993,369) (2,973,254) Sales and maturities of marketable investment securities 2,110,336 2,391,220 1,498,463 Expenditures for property and equipment (408,798) (418,584) (555,141) Expenditures for externally marketed software (38,655) (29,310) (31,639) Purchase of other investments (5,500) (93,687) — Investments in unconsolidated affiliates — (2,149) (115,991) Purchases of regulatory authorizations — (34,447) — Refunds and other receipts related to property and equipment — — 77,524 Dividend received from unconsolidated affiliate — 2,284 — Sale of investment in unconsolidated affiliates — — 1,558 Net cash flows from investing activities (1,142,455) 821,958 (2,098,480) Cash flows from financing activities: Repurchase and maturity of the 2019 Senior Secured Notes — (920,923) (70,173) Repayment of other long-term debt and finance lease obligations (811) (29,347) (41,019) Payment of in-orbit incentive obligations (1,554) (5,447) (5,350) Net proceeds from Class A common stock options exercised 855 67,337 4,424 Net proceeds from Class A common stock issued under the Employee Stock Purchase Plan 10,109 9,779 9,368 Treasury share purchase (43,458) — (33,292) Contribution by non-controlling interest holder 18,241 — — Purchase of non-controlling interest — (7,313) — Other, net 998 603 (521) Net cash flows from financing activities (15,620) (885,311) (136,563) Effect of exchange rates on cash and cash equivalents (1,390) (575) (2,233) Net increase (decrease) in cash and cash equivalents (625,077) 592,394 (1,502,754) Cash and cash equivalents, including restricted amounts, beginning of period 1,521,889 929,495 2,432,249 Cash and cash equivalents, including restricted amounts, end of period $896,812 $1,521,889 $929,495 Popular Press Releases April 03, 2019 U.S. Army Selects Hughes for Cooperative R&D Effort to Recommend Network Upgrades for Next-Generation, Friendly Forces Monitoring SystemTwo-Year Study to Support Blue Force Tracking Upgrades as Part of Network Modernization Efforts Germantown, MD, April 03, 2019—Hughes Network...Read More April 02, 2019 Hughes Named “Top Performer” in 2019 SD-WAN Customer Success ReportFeaturedCustomers platform recognizes outstanding customer satisfaction with HughesON Managed SD-WAN Germantown, MD, April 2, 2019 – Hughes Network...Read More