U.S. markets close in 5 hours 13 minutes
  • S&P 500

    4,148.94
    +7.35 (+0.18%)
     
  • Dow 30

    33,883.83
    +206.56 (+0.61%)
     
  • Nasdaq

    14,003.50
    +7.40 (+0.05%)
     
  • Russell 2000

    2,264.67
    +35.75 (+1.60%)
     
  • Crude Oil

    62.41
    +2.23 (+3.71%)
     
  • Gold

    1,738.50
    -9.10 (-0.52%)
     
  • Silver

    25.45
    +0.03 (+0.11%)
     
  • EUR/USD

    1.1975
    +0.0020 (+0.17%)
     
  • 10-Yr Bond

    1.6320
    +0.0090 (+0.55%)
     
  • GBP/USD

    1.3794
    +0.0042 (+0.31%)
     
  • USD/JPY

    108.9430
    -0.1050 (-0.10%)
     
  • BTC-USD

    63,303.17
    +540.76 (+0.86%)
     
  • CMC Crypto 200

    1,359.25
    -16.53 (-1.20%)
     
  • FTSE 100

    6,933.35
    +42.86 (+0.62%)
     
  • Nikkei 225

    29,620.99
    +82.29 (+0.28%)
     

EchoStar Announces Financial Results for Three and Twelve Months Ended December 31, 2020

  • Oops!
    Something went wrong.
    Please try again later.
·15 min read
  • Oops!
    Something went wrong.
    Please try again later.

ENGLEWOOD, Colo., Feb. 23, 2021 /PRNewswire/ -- EchoStar Corporation (NASDAQ: SATS) today announced its financial results for the three and twelve months ended December 31, 2020.

EchoStar Corporation Logo. (PRNewsfoto/EchoStar Corporation)
EchoStar Corporation Logo. (PRNewsfoto/EchoStar Corporation)

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.

  • 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















Cision
Cision

View original content to download multimedia:http://www.prnewswire.com/news-releases/echostar-announces-financial-results-for-three-and-twelve-months-ended-december-31-2020-301232948.html

SOURCE EchoStar Corporation