ENGLEWOOD, Colo., May 8, 2024
/PRNewswire/ -- EchoStar Corporation (NASDAQ: SATS) announced its
financial results for the three months ended March 31, 2024.
Three Months Ended March 31,
2024:
- EchoStar reported total revenue of $4.01
billion for the first quarter 2024, compared to $4.39 billion in the year ago quarter.
- Net loss attributable to EchoStar in the first quarter 2024 was
$107.38 million, compared to net
income of $253.53 million in the year
ago quarter. Diluted loss per share was $0.40, compared to earnings per share of
$0.82 in the year ago quarter.
- Consolidated OIBDA totaled $470.16
million in the first quarter, compared to $701.09 million in the year ago quarter. (See
OBIDA definition and non-GAAP reconciliation below.)
"The EchoStar team performed as planned in the first quarter of
2024. We concentrated efforts on integrating the EchoStar and DISH
Network businesses in order to maximize synergies and cost savings,
facilitate growth opportunities, and drive operational alignment.
Overall, ARPU increased in every business unit and customer
satisfaction has improved," said Hamid
Akhavan, president and CEO, EchoStar Corporation. "In
addition, the business continues to focus on addressing necessary
financing, improving our position in Retail Wireless, densifying
and expanding the wireless network, maximizing our profitability
with the newly launched EchoStar XXIV/Jupiter™ 3, and acquiring
higher-quality Pay-TV customers."
Three Months Ended March 31,
2024 - Additional Information:
- Net Pay-TV subscribers decreased approximately 348,000 in the
first quarter, compared to a decrease of approximately 552,000 in
the year-ago quarter. The company closed the quarter with 8.18
million Pay-TV subscribers including 6.26 million DISH TV
subscribers and 1.92 million SLING TV subscribers. This change in
net Pay-TV losses resulted from the decrease in net DISH TV
subscriber losses due to a lower DISH TV churn rate and the
decrease in net SLING TV subscriber losses, both resulting from our
emphasis on acquiring higher quality subscribers, offset by lower
gross new DISH TV subscriber activations.
- Retail Wireless net subscribers decreased by approximately
81,000 in both the first quarter and in the year-ago quarter. The
company closed the quarter with 7.30 million Retail Wireless
subscribers. The three months ended March
31, 2024, was positively impacted by a lower Retail Wireless
churn rate, partially offset by lower gross new Retail Wireless
subscriber activations and lower net ACP/Gen Mobile subscriber
additions.
- Broadband net subscribers decreased by approximately 26,000 in
the first quarter, compared to a decrease of 51,000 in the year-ago
quarter. The company closed the quarter with 978,000 Broadband
subscribers. The decrease in net Broadband subscriber losses was
primarily due to the new EchoStar XXIV satellite service launch and
increased subscriber demand for our new satellite service
plans.
Set forth below is a table highlighting certain
of EchoStar's segment results for the three months ended
March 31, 2024 and 2023 (all U.S. GAAP amounts reference
results from operations):
|
|
|
|
For the Three
Months
Ended March 31,
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
(in
thousands)
|
Revenue
|
|
|
|
|
|
Pay-TV
|
|
|
|
$ 2,726,578
|
|
$
2,972,131
|
Retail
Wireless
|
|
|
905,850
|
|
974,866
|
5G Network
Deployment
|
|
29,504
|
|
18,907
|
Broadband and Satellite
Services
|
382,586
|
|
439,596
|
All Other &
Eliminations
|
|
(29,675)
|
|
(17,834)
|
Total
|
|
|
$ 4,014,843
|
|
$
4,387,666
|
|
|
|
|
|
|
|
Net Income (loss)
attributable to EchoStar
|
$
(107,376)
|
|
$
253,534
|
|
|
|
|
|
|
|
OIBDA
|
|
|
|
|
|
|
Pay-TV
|
|
|
|
$
755,510
|
|
$
777,808
|
Retail
Wireless
|
|
|
(17,518)
|
|
34,638
|
5G Network
Deployment
|
|
(333,564)
|
|
(235,976)
|
Broadband and Satellite
Services
|
79,287
|
|
130,823
|
All Other &
Eliminations
|
|
(13,559)
|
|
(6,201)
|
Total
|
|
|
$
470,156
|
|
$
701,092
|
|
|
|
|
|
|
|
Purchases of
property and equipment, net of refunds (including capitalized
interest related to regulatory authorizations)
|
Pay-TV
|
|
|
|
$
57,912
|
|
$
35,563
|
Retail
Wireless
|
|
|
$
-
|
|
-
|
5G Network
Deployment
|
|
$
549,173
|
|
871,042
|
Broadband and Satellite
Services
|
$
70,611
|
|
44,071
|
All Other &
Eliminations
|
|
$
-
|
|
-
|
Total
|
|
|
|
$
677,696
|
|
$
950,676
|
Reconciliation of GAAP to Non-GAAP Measurement:
For the three
months Ended March 31, 2024
|
|
Pay-TV
|
|
Retail
Wireless
|
|
5G Network
Deployment
|
|
Broadband and
Satellite
Services
|
|
|
|
Consolidated
|
Eliminations
|
|
|
(In thousands)
|
Segment operating
income (loss)
|
|
$
|
670,108
|
|
|
(74,417)
|
|
|
(570,751)
|
|
|
(39,554)
|
|
|
(630)
|
|
|
(15,244)
|
Depreciation and
amortization
|
|
|
85,402
|
|
|
56,899
|
|
|
237,187
|
|
|
118,841
|
|
|
(12,929)
|
|
|
485,400
|
OIBDA
|
|
$
|
755,510
|
|
$
|
(17,518)
|
|
$
|
(333,564)
|
|
$
|
79,287
|
|
$
|
(13,559)
|
|
$
|
470,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months Ended March 31, 2023
|
|
Pay-TV
|
|
Retail
Wireless
|
|
5G Network
Deployment
|
|
Broadband
and
Satellite
Services
|
|
|
|
Consolidated
|
Eliminations
|
|
|
(In thousands)
|
Segment operating
income (loss)
|
|
$
|
675,233
|
|
|
(18,207)
|
|
|
(333,603)
|
|
|
27,705
|
|
|
2,210
|
|
|
353,338
|
Depreciation and
amortization
|
|
|
102,575
|
|
|
52,845
|
|
|
97,627
|
|
|
103,118
|
|
|
(8,411)
|
|
|
347,754
|
OIBDA
|
|
$
|
777,808
|
|
$
|
34,638
|
|
$
|
(235,976)
|
|
$
|
130,823
|
|
$
|
(6,201)
|
|
$
|
701,092
|
Note on Use of Non-GAAP Financial Measures
OIBDA is defined as "Operating income (loss)" plus "Depreciation
and amortization."
OIBDA, which is presented by segment above, is a non-GAAP
measure reconciled to "Operating income (loss)" and does not
purport to be an alternative to operating income (loss) as a
measure of operating performance. We believe this measure is useful
to management, investors and other users of our financial
information in evaluating operating profitability of our business
segments on a more variable cost basis as it excludes the
depreciation and amortization expenses related primarily to capital
expenditures and acquisitions for those business segments, as well
as in evaluating operating performance in relation to our
competitors.
The condensed consolidated financial statements of EchoStar
for the period ended March 31,
2024, are attached to this press release. Detailed financial
data and other information are available in EchoStar's Form
10-Q for the period ended March 31, 2024, filed today
with the Securities and Exchange Commission.
EchoStar will host a conference call to discuss its earnings on
Wednesday, May 8, 2024, at
noon Eastern Time. The conference
call will be broadcast live in listen-only mode on EchoStar's
investor relations website at ir.echostar.com. To attend the call,
please dial: (877) 484-6065 (U.S.) or (201) 689-8846. When
prompted on dial-in, please utilize the conference ID (13746414) or
ask for the "EchoStar Corporation Q1 2024 Earnings
Conference Call." Please dial in at least 10 minutes before the
call to ensure timely participation.
About EchoStar Corporation
EchoStar Corporation (Nasdaq: SATS) is a premier provider of
technology, networking services, television entertainment and
connectivity, offering consumer, enterprise, operator and
government solutions worldwide under its EchoStar®, Boost Mobile®,
Sling TV, DISH TV, Hughes®, HughesNet®, HughesON™, and JUPITER™
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 X (Twitter)
and LinkedIn.
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, 2023 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
|
|
|
|
(Dollars in thousands,
except share amounts)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
March
31,
|
|
December
31,
|
|
|
2024
|
|
2023
|
Assets
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
613,702
|
|
$
|
1,821,376
|
Marketable investment
securities
|
|
|
152,649
|
|
|
623,044
|
Trade accounts
receivable, net of allowance for credit losses of $84,906 and
$74,390, respectively
|
|
|
1,023,089
|
|
|
1,122,139
|
Inventory
|
|
|
632,952
|
|
|
665,169
|
Prepaids and other
assets
|
|
|
677,982
|
|
|
644,005
|
Other current
assets
|
|
|
16,165
|
|
|
16,081
|
Total current
assets
|
|
|
3,116,539
|
|
|
4,891,814
|
|
|
|
|
|
|
|
Noncurrent
Assets:
|
|
|
|
|
|
|
Restricted cash, cash
equivalents and marketable investment securities
|
|
|
120,979
|
|
|
118,065
|
Property and equipment,
net
|
|
|
9,589,433
|
|
|
9,561,834
|
Regulatory
authorizations, net
|
|
|
38,809,600
|
|
|
38,572,980
|
Other investments,
net
|
|
|
309,189
|
|
|
314,370
|
Operating lease
assets
|
|
|
3,092,070
|
|
|
3,065,448
|
Intangible assets,
net
|
|
|
127,670
|
|
|
172,892
|
Other noncurrent
assets, net
|
|
|
390,937
|
|
|
411,491
|
Total noncurrent
assets
|
|
|
52,439,878
|
|
|
52,217,080
|
Total assets
|
|
$
|
55,556,417
|
|
$
|
57,108,894
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity (Deficit)
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
573,299
|
|
$
|
774,011
|
Deferred revenue and
other
|
|
|
712,783
|
|
|
754,658
|
Accrued
programming
|
|
|
1,485,798
|
|
|
1,427,762
|
Accrued
interest
|
|
|
408,134
|
|
|
297,678
|
Other accrued expenses
and liabilities
|
|
|
1,734,288
|
|
|
1,717,826
|
Current portion of
long-term debt and finance lease obligations
|
|
|
2,090,661
|
|
|
3,046,654
|
Total current
liabilities
|
|
|
7,004,963
|
|
|
8,018,589
|
|
|
|
|
|
|
|
Long-Term
Obligations, Net of Current Portion:
|
|
|
|
|
|
|
Long-term debt and
finance lease obligations, net of current portion
|
|
|
19,696,803
|
|
|
19,717,266
|
Deferred tax
liabilities, net
|
|
|
4,998,855
|
|
|
5,014,309
|
Operating lease
liabilities
|
|
|
3,157,720
|
|
|
3,121,307
|
Long-term deferred
revenue and other long-term liabilities
|
|
|
856,926
|
|
|
849,131
|
Total long-term
obligations, net of current portion
|
|
|
28,710,304
|
|
|
28,702,013
|
Total
liabilities
|
|
|
35,715,267
|
|
|
36,720,602
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
|
—
|
|
|
438,382
|
|
|
|
|
|
|
|
Stockholders' Equity
(Deficit):
|
|
|
|
|
|
|
Class A common stock,
$0.001 par value, 1,600,000,000 shares authorized,
140,170,052 and 140,153,020 shares issued and outstanding,
respectively
|
|
|
140
|
|
|
140
|
Class B common stock,
$0.001 par value, 800,000,000 shares authorized,
131,348,468 shares issued and outstanding
|
|
|
131
|
|
|
131
|
Additional paid-in
capital
|
|
|
8,310,877
|
|
|
8,301,979
|
Accumulated other
comprehensive income (loss)
|
|
|
(164,604)
|
|
|
(160,056)
|
Accumulated earnings
(deficit)
|
|
|
11,630,607
|
|
|
11,737,983
|
Total EchoStar
stockholders' equity (deficit)
|
|
|
19,777,151
|
|
|
19,880,177
|
Noncontrolling
interests
|
|
|
63,999
|
|
|
69,733
|
Total stockholders'
equity (deficit)
|
|
|
19,841,150
|
|
|
19,949,910
|
Total liabilities and
stockholders' equity (deficit)
|
|
$
|
55,556,417
|
|
$
|
57,108,894
|
|
|
|
ECHOSTAR
CORPORATION
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
(Dollars in thousands,
except per share amounts)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended March 31,
|
|
|
2024
|
|
2023
|
Revenue:
|
|
|
|
|
|
|
Service
revenue
|
|
$
|
3,819,673
|
|
$
|
4,180,721
|
Equipment sales and
other revenue
|
|
|
195,170
|
|
|
206,945
|
Total
revenue
|
|
|
4,014,843
|
|
|
4,387,666
|
|
|
|
|
|
|
|
Costs and Expenses
(exclusive of depreciation and amortization):
|
|
|
|
|
|
|
Cost of
services
|
|
|
2,557,182
|
|
|
2,462,600
|
Cost of sales -
equipment and other
|
|
|
363,083
|
|
|
520,060
|
Selling, general and
administrative expenses
|
|
|
624,422
|
|
|
700,772
|
Depreciation and
amortization
|
|
|
485,400
|
|
|
347,754
|
Impairment of
long-lived assets and goodwill
|
|
|
—
|
|
|
3,142
|
Total costs and
expenses
|
|
|
4,030,087
|
|
|
4,034,328
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
(15,244)
|
|
|
353,338
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
Interest income,
net
|
|
|
30,462
|
|
|
68,186
|
Interest expense, net
of amounts capitalized
|
|
|
(99,408)
|
|
|
(20,033)
|
Other, net
|
|
|
(26,110)
|
|
|
(34,761)
|
Total other income
(expense)
|
|
|
(95,056)
|
|
|
13,392
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
|
(110,300)
|
|
|
366,730
|
Income tax (provision)
benefit, net
|
|
|
1,925
|
|
|
(93,885)
|
Net income
(loss)
|
|
|
(108,375)
|
|
|
272,845
|
Less: Net income (loss)
attributable to noncontrolling interests, net of tax
|
|
|
(999)
|
|
|
19,311
|
Net income (loss)
attributable to EchoStar
|
|
$
|
(107,376)
|
|
$
|
253,534
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding - Class A and B common
stock:
|
|
|
|
|
|
|
Basic
|
|
|
271,519
|
|
|
269,833
|
Diluted
|
|
|
271,519
|
|
|
307,410
|
|
|
|
|
|
|
|
Earnings per share -
Class A and B common stock:
|
|
|
|
|
|
|
Basic net income (loss)
per share attributable to EchoStar
|
|
$
|
(0.40)
|
|
$
|
0.94
|
Diluted net income
(loss) per share attributable to EchoStar
|
|
$
|
(0.40)
|
|
$
|
0.82
|
|
|
|
ECHOSTAR
CORPORATION
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
(In
thousands)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended March 31,
|
|
|
2024
|
|
2023
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(108,375)
|
|
$
|
272,845
|
Adjustments to
reconcile net income (loss) to net cash flows from operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
485,400
|
|
|
347,754
|
Impairment of
long-lived assets and goodwill
|
|
|
—
|
|
|
3,142
|
Realized and unrealized
losses (gains) on investments, impairments and other
|
|
|
23,893
|
|
|
7,368
|
Realized and unrealized
losses (gains) on derivatives
|
|
|
—
|
|
|
28,961
|
Non-cash, stock-based
compensation
|
|
|
9,058
|
|
|
14,628
|
Deferred tax expense
(benefit)
|
|
|
(11,688)
|
|
|
77,265
|
Changes in allowance
for credit losses
|
|
|
10,516
|
|
|
1,004
|
Change in long-term
deferred revenue and other long-term liabilities
|
|
|
(3,871)
|
|
|
(8,027)
|
Other, net
|
|
|
64,914
|
|
|
34,380
|
Changes in current
assets and current liabilities, net
|
|
|
(18,588)
|
|
|
10,627
|
Net cash flows from
operating activities
|
|
|
451,259
|
|
|
789,947
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
Purchases of marketable
investment securities
|
|
|
(19,135)
|
|
|
(606,676)
|
Sales and maturities of
marketable investment securities
|
|
|
458,792
|
|
|
1,372,198
|
Purchases of property
and equipment
|
|
|
(519,612)
|
|
|
(766,281)
|
Refunds and other
receipts of purchases of property and equipment
|
|
|
—
|
|
|
15,000
|
Capitalized interest
related to regulatory authorizations
|
|
|
(158,084)
|
|
|
(199,395)
|
Purchases of regulatory
authorizations, including deposits
|
|
|
(1,104)
|
|
|
(1,771)
|
Other, net
|
|
|
998
|
|
|
(17,933)
|
Net cash flows from
investing activities
|
|
|
(238,145)
|
|
|
(204,858)
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
Repayment of long-term
debt and finance lease obligations
|
|
|
(27,125)
|
|
|
(27,255)
|
Redemption and
repurchases of convertible and senior notes
|
|
|
(951,168)
|
|
|
(1,443,179)
|
Proceeds from issuance
of senior notes
|
|
|
—
|
|
|
1,500,000
|
Net proceeds from Class
A common stock options exercised and stock issued under the
Employee
Stock Purchase Plan
|
|
|
(160)
|
|
|
3,967
|
Purchase of SNR
Management's ownership interest in SNR HoldCo
|
|
|
(441,998)
|
|
|
—
|
Proceeds from accrued
interest in conjunction with the issuance of senior
notes
|
|
|
—
|
|
|
34,760
|
Debt issuance costs and
debt (discount) premium
|
|
|
—
|
|
|
21,635
|
Other, net
|
|
|
—
|
|
|
(5,073)
|
Net cash flows from
financing activities
|
|
|
(1,420,451)
|
|
|
84,855
|
|
|
|
|
|
|
|
Effect of exchange
rates on cash and cash equivalents
|
|
|
(849)
|
|
|
1,677
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents, restricted cash and cash
equivalents
|
|
|
(1,208,186)
|
|
|
671,621
|
Cash, cash equivalents,
restricted cash and cash equivalents, beginning of
period
|
|
|
1,911,601
|
|
|
2,561,803
|
Cash, cash equivalents,
restricted cash and cash equivalents, end of period
|
|
$
|
703,415
|
|
$
|
3,233,424
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/echostar-announces-financial-results-for-the-three-months-ended-march-31-2024-302139042.html
SOURCE EchoStar Corporation