EX-99.1 5 pressreleaseq22022-exx991.htm EX-99.1 Document
Exhibit 99.1

EchoStar Announces Financial Results for the Three and Six Months Ended June 30, 2022

Englewood, CO, August 3, 2022—EchoStar Corporation (NASDAQ: SATS) announced its financial results for the three and six months ended June 30, 2022.

Three Months Ended June 30, 2022 Financial Highlights:

•Consolidated revenue of $499.3 million.
•Net income of $10.5 million, consolidated net income attributable to EchoStar common stock of $13.9 million and basic and diluted earnings per share of common stock of $0.16.
•Consolidated Adjusted EBITDA of $167.7 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below).

Six Months Ended June 30, 2022 Financial Highlights:

•Consolidated revenue of $1,000.9 million.
•Net income of $99.4 million, consolidated net income attributable to EchoStar common stock of $105.3 million, and basic and diluted earnings per share of common stock of $1.24.
•Consolidated Adjusted EBITDA of $333.6 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below).

“Once again, the EchoStar team delivered a solid performance in the second quarter,” said Hamid Akhavan, CEO and President of EchoStar. “We are focused on optimizing operations and asset yields in order to maintain our track record of excellent fiscal responsibility, and are leveraging our engineering expertise to innovate new solutions and applications across the market segments we serve.”

Three Months Ended June 30, 2022 - Additional Information:

•Consolidated revenue was flat year over year. Higher equipment sales of $16.1 million to our domestic and international enterprise customers was offset by lower service revenues of $16.6 million, primarily due to lower broadband consumer customers.
•Adjusted EBITDA decreased 10.2% or $19.0 million year over year.
◦Hughes segment Adjusted EBITDA decreased $24.9 million year over year. The decrease was driven primarily by lower gross margin due to a change in revenue mix.
◦ESS segment Adjusted EBITDA increased $1.3 million year over year.
◦Corporate and Other segment Adjusted EBITDA increased $4.6 million year over year. The increase was primarily due to higher earnings of unconsolidated affiliates, net, of $2.7 million and lower legal expenses.
•Net income decreased $24.5 million year over year. The decrease was primarily due to an unfavorable change in investments of $53.2 million, lower operating income of $19.4 million, and losses on foreign exchange of $4.3 million. These items were partially offset by lower net interest expense of $18.4 million, lower net income tax expense of $15.8 million, and lower losses in Other, net, of $15.4 million, which included litigation expense of $16.8 million in the second quarter of 2021.
•Hughes broadband subscribers totaled approximately 1,346,000, declining 60,000 from March 31, 2022. Our current capacity limitations require a balancing of capacity utilization with subscriber levels in areas of high bandwidth demand. These constraints, and increased competitive pressures, are impacting our consumer subscriber levels. In Latin America, subscriber levels were also impacted by adverse economic conditions, more selective customer screening, and capacity allocation to community WiFi and enterprise opportunities.
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•For the three months ended June 30, 2022, approximately 63% of Hughes segment revenue was attributable to our consumer customers with approximately 37% attributable to our enterprise customers.
•Cash, cash equivalents and current marketable investment securities were $1.5 billion as of June 30, 2022.
•During the three months ended June 30, 2022, we purchased 1,924,875 shares of our Class A common stock in open market trades.
•The Jupiter 3/EchoStar XXIV satellite continues to progress at Maxar and is expected to be launched during the first half of 2023
Set forth below is a table highlighting certain of EchoStar’s segment results for the three and six months ended June 30, 2022 and 2021 (amounts in thousands) (all US GAAP amounts reference results from operations):
For the three months ended June 30,For the six months ended June 30,
 2022202120222021
Revenue
Hughes
$491,841 $492,276 $985,947 $968,136 
EchoStar Satellite Services
4,850 4,283 9,324 8,372 
Corporate and Other
2,625 3,275 5,579 5,908 
Total revenue
$499,316 $499,834 $1,000,850 $982,416 
Adjusted EBITDA
Hughes
$182,423 $207,317 $366,710 $409,253 
EchoStar Satellite Services
3,521 2,243 6,212 4,162 
Corporate & Other:
Corporate overhead, operating and other
(18,554)(20,497)(39,745)(41,964)
Equity in earnings (losses) of unconsolidated affiliates, net
338 (2,369)440 984 
Total Corporate & Other
(18,216)(22,866)(39,305)(40,980)
Total Adjusted EBITDA
$167,728 $186,694 $333,617 $372,435 
Net income (loss)$10,473 $35,015 $99,418 $112,587 
Expenditures for property and equipment
$75,779 $83,232 $187,917 $262,466 

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Reconciliation of GAAP to Non-GAAP Measurement (amounts in thousands):
For the three months ended June 30,For the six months ended June 30,
2022202120222021
Net income (loss)$10,473 $35,015 $99,418 $112,587 
Interest income, net(9,072)(5,240)(15,494)(11,189)
Interest expense, net of amounts capitalized14,307 28,868 29,280 63,535 
Income tax provision (benefit), net5,390 21,152 38,172 43,299 
Depreciation and amortization116,555 118,982 236,991 248,268 
Net loss (income) attributable to non-controlling interests3,395 2,280 5,883 3,227 
EBITDA
141,048 201,057 394,250 459,727 
(Gains) losses on investments, net
22,538 (30,633)(58,148)(109,233)
Impairment of long-lived assets711 15 711 245 
Litigation Expense— 16,800 — 16,800 
License fee dispute - India, net of non-controlling interests
(211)(236)(444)(446)
Loss on Debt Repurchase— 356 — 1,938 
Foreign currency transaction (gains) losses, net
3,642 (665)(2,752)3,404 
Adjusted EBITDA
$167,728 $186,694 $333,617 $372,435 

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 June 30, 2022 and 2021 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, 2022 filed today with the Securities and Exchange Commission.

EchoStar will host a conference call to discuss its earnings on Thursday, August 4, 2022 at 11:00 a.m. Eastern Time. The conference call 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/BI6304e454ed1d4d30a1618d0a317c94a0.




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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,” “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. See “Risk Factors” in EchoStar’s Annual Report on Form 10-K for the period ended December 31, 2021 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.

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Contact Information
EchoStar Investor Relations
EchoStar Media Relations
Terry Brown
Phone: +1 303-728-5179
Email: terry.brown@echostar.com
Sharyn Nerenberg
Phone: +1 301-428-7124
Email: sharyn.nerenberg@echostar.com
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ECHOSTAR CORPORATION
Consolidated Balance Sheets
(Amounts in thousands, except share and per share amounts)
 As of
 June 30, 2022December 31, 2021
Assets  
Current assets:  
Cash and cash equivalents$991,595 $535,894 
Marketable investment securities529,854 1,010,496 
Trade accounts receivable and contract assets, net224,016 182,063 
Other current assets, net211,877 198,444 
Total current assets1,957,342 1,926,897 
Non-current assets:  
Property and equipment, net2,312,526 2,338,285 
Operating lease right-of-use assets151,967 149,198 
Goodwill533,505 511,086 
Regulatory authorizations, net464,523 469,766 
Other intangible assets, net17,018 13,984 
Other investments, net352,078 297,747 
Other non-current assets, net329,564 338,241 
Total non-current assets4,161,181 4,118,307 
Total assets$6,118,523 $6,045,204 
Liabilities and Stockholders' Equity  
Current liabilities:  
Trade accounts payable$103,680 $109,338 
Contract liabilities134,856 141,343 
Accrued expenses and other current liabilities195,827 209,442 
Total current liabilities434,363 460,123 
Non-current liabilities:  
Long-term debt, net1,496,379 1,495,994 
Deferred tax liabilities, net428,600 403,684 
Operating lease liabilities137,446 134,897 
Other non-current liabilities122,179 136,426 
Total non-current liabilities2,184,604 2,171,001 
Total liabilities2,618,967 2,631,124 
Commitments and contingencies














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ECHOSTAR CORPORATION
Consolidated Balance Sheets
(Amounts 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 June 30, 2022 and December 31, 2021
— — 
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, 58,604,747 shares issued and 35,885,079 shares outstanding at June 30, 2022 and 58,059,622 shares issued and 38,726,923 shares outstanding at December 31, 2021
59 58 
Class B convertible common stock, $0.001 par value, 800,000,000 shares authorized, 47,687,039 shares issued and outstanding at both June 30, 2022 and December 31, 2021
48 48 
Class C convertible common stock, $0.001 par value, 800,000,000 shares authorized, none issued and outstanding at both June 30, 2022 and December 31, 2021
— — 
Class D common stock, $0.001 par value, 800,000,000 shares authorized, none issued and outstanding at both June 30, 2022 and December 31, 2021
— — 
Additional paid-in capital3,355,238 3,345,878 
Accumulated other comprehensive income (loss)(204,465)(212,102)
Accumulated earnings (losses)761,767 656,466 
Treasury shares, at cost(514,418)(436,521)
Total EchoStar Corporation stockholders' equity3,398,229 3,353,827 
Non-controlling interests101,327 60,253 
Total stockholders' equity3,499,556 3,414,080 
Total liabilities and stockholders' equity$6,118,523 $6,045,204 
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ECHOSTAR CORPORATION
Consolidated Statements of Operations
(Amounts in thousands, except per share amounts)

 For the three months ended June 30,For the six months ended June 30,
 2022202120222021
Revenue:
Services and other revenue$414,697 $431,279 $833,508 $861,616 
Equipment revenue84,619 68,555 167,342 120,800 
Total revenue499,316 499,834 1,000,850 982,416 
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)144,235 139,547 285,364 272,336 
Cost of sales - equipment (exclusive of depreciation and amortization)70,054 54,503 139,168 99,654 
Selling, general and administrative expenses113,091 114,038 231,261 228,157 
Research and development expenses8,764 7,441 16,381 14,986 
Depreciation and amortization116,555 118,982 236,991 248,268 
Impairment of long-lived assets711 15 711 245 
Total costs and expenses453,410 434,526 909,876 863,646 
Operating income (loss)45,906 65,308 90,974 118,770 
Other income (expense):
Interest income, net9,072 5,240 15,494 11,189 
Interest expense, net of amounts capitalized(14,307)(28,868)(29,280)(63,535)
Gains (losses) on investments, net(22,538)30,633 58,148 109,233 
Equity in earnings (losses) of unconsolidated affiliates, net(1,301)(4,044)(3,015)(2,670)
Foreign currency transaction gains (losses), net(3,642)665 2,752 (3,404)
Other, net2,673 (12,767)2,517 (13,697)
Total other income (expense), net(30,043)(9,141)46,616 37,116 
Income (loss) before income taxes15,863 56,167 137,590 155,886 
Income tax benefit (provision), net(5,390)(21,152)(38,172)(43,299)
Net income (loss)10,473 35,015 99,418 112,587 
Less: Net loss (income) attributable to non-controlling interests3,395 2,280 5,883 3,227 
Net income (loss) attributable to EchoStar Corporation common stock$13,868 $37,295 $105,301 $115,814 
Earnings (losses) per share - Class A and B common stock:
Basic$0.16 $0.41 $1.24 $1.26 
Diluted$0.16 $0.41 $1.24 $1.25 
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ECHOSTAR CORPORATION
Consolidated Statements of Cash Flows
(Amounts in thousands)
 For the six months ended June 30,
 20222021
Cash flows from operating activities:  
Net income (loss)$99,418 $112,587 
Adjustments to reconcile net income (loss) to cash flows provided by (used for) operating activities:  
Depreciation and amortization236,991 248,268 
Impairment of long-lived assets711 245 
Losses (gains) on investments, net(58,148)(109,233)
Equity in losses (earnings) of unconsolidated affiliates, net3,015 2,670 
Foreign currency transaction losses (gains), net(2,752)3,404 
Deferred tax provision (benefit), net24,412 34,024 
Stock-based compensation5,047 3,825 
Amortization of debt issuance costs386 2,008 
Other, net27,397 6,198 
Changes in assets and liabilities, net: 
Trade accounts receivable and contract assets, net(39,271)(3,363)
Other current assets, net(6,113)(1,120)
Trade accounts payable1,793 (9,631)
Contract liabilities(6,487)23,251 
Accrued expenses and other current liabilities(10,119)621 
Non-current assets and non-current liabilities, net(24,648)(5,114)
Net cash provided by (used for) operating activities251,632 308,640 
Cash flows from investing activities:  
Purchases of marketable investment securities(183,529)(939,255)
Sales and maturities of marketable investment securities669,600 1,824,332 
Expenditures for property and equipment(187,917)(262,466)
Expenditures for externally marketed software(11,967)(16,835)
India JV formation(7,892)— 
Dividend received from unconsolidated affiliate2,000 — 
Purchase of other investments— (50,000)
Sales of other investments— 10,516 
Net cash provided by (used for) investing activities280,295 566,292 
Cash flows from financing activities:
Repurchase and maturity of the 2021 Senior Unsecured Notes— (901,818)
Payment of finance lease obligations(114)(476)
Payment of in-orbit incentive obligations(1,908)(1,431)
Proceeds from Class A common stock issued under the Employee Stock Purchase Plan5,046 4,815 
Treasury share repurchase(77,095)(163,822)
Contribution by non-controlling interest holder— 9,880 
Other, net— (966)
Net cash provided by (used for) financing activities(74,071)(1,053,818)
Effect of exchange rates on cash and cash equivalents(728)(443)
Net increase (decrease) in cash and cash equivalents457,128 (179,329)
Cash and cash equivalents, including restricted amounts, beginning of period536,874 896,812 
Cash and cash equivalents, including restricted amounts, end of period$994,002 $717,483 
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