EX-99.1 5 sats033119ex-991.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1


EchoStar Announces Financial Results for Three Months Ended March 31, 2019


Englewood, CO, May 8, 2019—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.



1


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



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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.

###
Contact Information

EchoStar Investor Relations
EchoStar Media Relations
Deepak V. Dutt
Phone: +1 301-428-1686
Email: deepak.dutt@echostar.com
Sharyn Nerenberg
Phone: +1 301-428-7124
Email: sharyn.nerenberg@echostar.com


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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
 
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



4


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
)


5


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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