EchoStar Announces Financial Results for the Three Months Ended March 31, 2024
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(TM) 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 Pay-TV Retail 5G Network Broadband and Consolidated
months Ended March 31, 2024 Wireless Deployment Satellite
Services
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 5G Network Broadband and Consolidated
Wireless Deployment Satellite
Services
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(TM), and JUPITER(TM) 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 1,023,089 1,122,139
$74,390, respectively
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, 140 140
140,170,052 and 140,153,020 shares issued and outstanding, respectively
Class B common stock, $0.001 par value, 800,000,000 shares authorized, 131 131
131,348,468 shares issued and outstanding
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 (160) 3,967
Stock Purchase Plan
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
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SOURCE EchoStar Corporation
