EchoStar Announces Financial Results for the Three and Nine Months Ended September 30, 2024
ENGLEWOOD, Colo., Nov. 12, 2024 /PRNewswire/ -- EchoStar Corporation (NASDAQ: SATS) announced its financial results for the three and nine months ended September 30, 2024.
Nine Months Ended September 30, 2024:
-- EchoStar reported total revenue of $11.86 billion for the nine months
ended September 30, 2024, compared to $12.85 billion in the year ago
period.
-- Net loss attributable to EchoStar in the first three quarters of 2024
was $454.78 million, compared to net income of $327.83 million in the
year-ago period. Diluted loss per share was $1.67, compared to earnings
per share of $1.06 in the year-ago period.
-- Consolidated OIBDA totaled $1.23 billion for the nine months ended
September 30, 2024, compared to $1.69 billion in the year-ago period.
(See OIBDA definition and non-GAAP reconciliation below.)
"The EchoStar team continued to execute against our plan in the third quarter. Our efforts focused on profitable customer acquisition and retention, strengthening our consumer offerings and enhancing our nationwide Open RAN 5G network," said Hamid Akhavan, president and CEO, EchoStar Corporation. "In addition, we recently announced a series of transformative transactions that will disrupt the wireless and pay-TV industries. We secured financing to meet our November debt maturity and announced an agreement with a group of our convertible note holders. This last transaction provides approximately $5.2 billion in additional financing and extends payment terms for the existing convertible notes tendered. In addition, we agreed to sell our pay-TV business to DIRECTV, subject to successful completion of an ongoing exchange and other closing conditions."
Three Months Ended September 30, 2024:
-- Net Pay-TV subscribers decreased approximately 43,000 in the third
quarter, compared to a decrease of 64,000 in the year-ago quarter. Sling
TV subscribers increased 145,000 in the third quarter, compared to a
117,000 increase in the year-ago quarter. The company closed the third
quarter with 8.03 million Pay-TV subscribers including 5.89 million DISH
TV subscribers and 2.14 million SLING TV subscribers. This decrease in
net Pay-TV subscriber losses resulted from higher net SLING TV
subscriber additions in the third quarter compared to the year-ago
quarter and a lower DISH TV churn rate, offset by lower gross new DISH
TV subscriber activations.
-- Retail Wireless subscribers, excluding Affordable Connectivity Program
("ACP") subscribers, increased approximately 62,000 in the third
quarter. The company closed the third quarter with 6.98 million Retail
Wireless subscribers. Retail Wireless net subscribers decreased by
approximately 297,000 in the third quarter, compared to a decrease of
225,000 in the year-ago quarter. The increase in net retail wireless
subscriber losses resulted from net losses of government subsidized
subscribers, including ACP subscribers, compared to net additions in the
year ago quarter, primarily due to the ACP program funding concluding on
June 1, 2024. The third quarter was positively impacted by a lower
retail wireless churn rate.
-- The company closed the third quarter with 912,000 Broadband Satellite
subscribers, a decrease of approximately 43,000 in the quarter, compared
to 59,000 in the year-ago quarter. The decrease in net Broadband
Satellite subscriber losses was primarily due to the new EchoStar XXIV
(Jupiter 3) satellite service launch and increased subscriber demand for
our new satellite service plans. The third quarter was negatively
impacted by the ACP program funding concluding on June 1, 2024.
Set forth below is a table highlighting certain of EchoStar's segment results for the three and nine months ended September 30, 2024 and 2023 (all U.S. GAAP amounts reference results from operations):
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
(in thousands)
Revenue
Pay-TV $2,618,031 $2,807,101 $8,020,893 $8,754,372
Retail Wireless 895,949 890,980 2,693,330 2,794,087
5G Network Deployment 43,227 29,916 108,245 67,902
Broadband and Satellite Services 386,709 413,073 1,163,306 1,305,779
All Other & Eliminations (52,932) (32,196) (127,196) (69,138)
Total $3,890,984 $4,108,874 $11,858,578 $12,853,002
Net Income (loss) attributable to EchoStar $(141,812) $(138,371) $(454,779) $327,825
OIBDA
Pay-TV $676,003 $675,565 $2,184,514 $2,271,638
Retail Wireless (90,755) (105,617) (174,268) (130,275)
5G Network Deployment (330,737) (299,146) (977,319) (813,597)
Broadband and Satellite Services 77,526 112,957 239,205 393,339
All Other & Eliminations (15,370) (17,897) (43,153) (31,289)
Total $316,667 $365,862 $1,228,979 $1,689,816
Purchases of property and equipment, net of refunds, (including capitalized
interest related to regulatory authorizations)
Pay-TV $53,357 $64,331 $165,275 $167,524
5G Network Deployment 396,596 852,169 1,506,237 2,907,102
Broadband and Satellite Services 44,913 79,164 172,083 172,251
Total $494,866 $995,664 $1,843,595 $3,246,877
Reconciliation of GAAP to Non-GAAP Measurement:
For the Three Months Pay-TV Retail
Wireless 5G Network Broadband and Consolidated
Ended September 30, 2024 Deployment Satellite
Services
Eliminations
(In thousands)
Segment operating income (loss) $
588,501 $
(113,792) $
(600,270) $
(36,116) $
910 $
(160,767)
Depreciation and amortization 87,502 23,037 269,533 113,642 (16,280) 477,434
OIBDA $
676,003 $
(90,755) $
(330,737) $
77,526 $
(15,370) $
316,667
For the Three Months
Ended September 30, 2023
Segment operating income (loss) $
589,465 $
(168,166) $
(463,105) $
9,991 $
466 $
(31,349)
Depreciation and amortization 86,100 62,549 163,959 102,966 (18,363) 397,211
OIBDA $
675,565 $
(105,617) $
(299,146) $
112,957 $
(17,897) $
365,862
For the Nine
Months Ended Pay-TV Retail
Wireless 5G Network Broadband and Consolidated
September 30, 2024 Deployment Satellite
Services
Eliminations
(In thousands)
Segment operating income (loss) $
1,926,361 $
(309,571) $
(1,749,961) $
(110,256) $
2,047 $
(241,380)
Depreciation and amortization 258,153 135,303 772,642 349,461 (45,200) 1,470,359
OIBDA $
2,184,514 $
(174,268) $
(977,319) $
239,205 $
(43,153) $
1,228,979
For the Nine
Months Ended
September 30, 2023
Segment operating income (loss) $
1,985,490 $
(298,872) $
(1,198,667) $
81,543 $
4,724 $
574,218
Depreciation and amortization 286,148 168,597 385,070 311,796 (36,013) 1,115,598
OIBDA $
2,271,638 $
(130,275) $
(813,597) $
393,339 $
(31,289) $
1,689,816
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 September 30, 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 September 30, 2024, filed today with the Securities and Exchange Commission.
EchoStar will host a conference call to discuss its earnings on Tuesday, November 12, 2024, at 11 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 attend the call, please dial: (877) 484-6065 (U.S.) and (201) 689-8846. When prompted on dial-in, please utilize the conference ID (13750022) or ask for the "EchoStar Corporation Q3 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, and subsequent quarterly reports on Form 10-Q 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
September 30, December 31,
2024 2023
Assets
Current Assets:
Cash and cash equivalents $
622,608 $
1,821,376
Current restricted cash and cash equivalents 2,047,489
Marketable investment securities 51,792 623,044
Trade accounts receivable, net of allowance for credit losses of $82,427 and 1,099,545 1,122,139
$74,390, respectively
Inventory 441,683 665,169
Prepaids and other assets 649,802 644,005
Other current assets 87,458 16,081
Total current assets 5,000,377 4,891,814
Noncurrent Assets:
Restricted cash, cash equivalents and marketable investment securities 156,323 118,065
Property and equipment, net 9,287,726 9,561,834
Regulatory authorizations, net 39,156,029 38,572,980
Other investments, net 216,139 314,370
Operating lease assets 3,158,548 3,065,448
Intangible assets, net 79,078 172,892
Other noncurrent assets, net 493,157 411,491
Total noncurrent assets 52,547,000 52,217,080
Total assets $
57,547,377 $
57,108,894
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Trade accounts payable $
707,476 $
774,011
Deferred revenue and other 645,719 754,658
Accrued programming 1,499,375 1,427,762
Accrued interest 406,619 297,678
Other accrued expenses and liabilities 1,699,434 1,717,826
Current portion of debt, finance lease and other obligations 2,520,297 3,046,654
Total current liabilities 7,478,920 8,018,589
Long-Term Obligations, Net of Current Portion:
Long-term debt, finance lease and other obligations, net of current portion 21,557,251 19,717,266
Deferred tax liabilities, net 4,926,162 5,014,309
Operating lease liabilities 3,125,819 3,121,307
Long-term deferred revenue and other long-term liabilities 958,931 849,131
Total long-term obligations, net of current portion 30,568,163 28,702,013
Total liabilities 38,047,083 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
140,480,742 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 8,337,211 8,301,979
Accumulated other comprehensive income (loss) (177,764) (160,056)
Accumulated earnings (deficit) 11,283,204 11,737,983
Total EchoStar stockholders' equity (deficit) 19,442,922 19,880,177
Noncontrolling interests 57,372 69,733
Total stockholders' equity (deficit) 19,500,294 19,949,910
Total liabilities and stockholders' equity (deficit) $
57,547,377 $
57,108,894
ECHOSTAR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2024 2023 2024 2023
Revenue:
Service revenue $
3,671,674 $
3,942,308 $
11,233,429 $
12,211,542
Equipment sales and other revenue 219,310 166,566 625,149 641,460
Total revenue 3,890,984 4,108,874 11,858,578 12,853,002
Costs and Expenses (exclusive of depreciation and amortization):
Cost of services 2,538,149 2,368,621 7,602,809 7,222,761
Cost of sales - equipment and other 393,024 612,378 1,164,200 1,715,936
Selling, general and administrative expenses 643,144 762,013 1,862,590 2,221,347
Depreciation and amortization 477,434 397,211 1,470,359 1,115,598
Impairment of long-lived assets and goodwill 3,142
Total costs and expenses 4,051,751 4,140,223 12,099,958 12,278,784
Operating income (loss) (160,767) (31,349) (241,380) 574,218
Other Income (Expense):
Interest income, net 11,200 43,915 55,591 166,409
Interest expense, net of amounts capitalized (81,503) (21,795) (262,077) (63,476)
Other, net 52,107 (168,947) (65,501) (169,640)
Total other income (expense) (18,196) (146,827) (271,987) (66,707)
Income (loss) before income taxes (178,963) (178,176) (513,367) 507,511
Income tax (provision) benefit, net 35,162 59,439 53,733 (120,711)
Net income (loss) (143,801) (118,737) (459,634) 386,800
Less: Net income (loss) attributable to noncontrolling interests, net of tax (1,989) 19,634 (4,855) 58,975
Net income (loss) attributable to EchoStar $
(141,812) $
(138,371) $
(454,779) $
327,825
Weighted-average common shares outstanding - Class A and B common stock:
Basic 271,736 271,245 271,616 270,637
Diluted 271,736 271,245 271,616 308,259
Earnings per share - Class A and B common stock:
Basic net income (loss) per share attributable to EchoStar $
(0.52) $
(0.51) $
(1.67) $
1.21
Diluted net income (loss) per share attributable to EchoStar $
(0.52) $
(0.51) $
(1.67) $
1.06
ECHOSTAR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
For the Nine Months Ended September 30,
2024 2023
Cash Flows From Operating Activities:
Net income (loss) $
(459,634) $
386,800
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization 1,470,359 1,115,598
Impairment of long-lived assets and goodwill 3,142
Realized and unrealized losses (gains) on investments, impairments and other 41,929 (24,866)
Realized and unrealized losses (gains) on derivatives 192,107
Liberty Puerto Rico Asset Sale losses (gains) (50,418)
Non-cash, stock-based compensation 28,298 37,729
Deferred tax expense (benefit) (85,300) 103,614
Equity in (earnings) losses of affiliates 74,459 6,671
Changes in allowance for credit losses 8,037 8,638
Change in long-term deferred revenue and other long-term liabilities 15,996 9,122
Other, net 137,700 80,665
Changes in current assets and current liabilities, net 25,718 102,330
Net cash flows from operating activities 1,207,144 2,021,550
Cash Flows From Investing Activities:
Purchases of marketable investment securities (29,166) (2,384,614)
Sales and maturities of marketable investment securities 563,421 3,092,693
Purchases of property and equipment (1,200,606) (2,533,745)
Refunds and other receipts of purchases of property and equipment 34,611
Capitalized interest related to regulatory authorizations (642,989) (747,743)
Proceeds from other debt investments 148,448
Purchases of regulatory authorizations, including deposits (1,104) (1,802)
Sale of assets to CONX 26,719
Liberty Puerto Rico Asset Sale 95,435
Other, net 10,892 (17,258)
Net cash flows from investing activities (1,177,398) (2,409,410)
Cash Flows From Financing Activities:
Repayment of long-term debt, finance lease and other obligations (101,197) (98,933)
Redemption and repurchases of convertible and senior notes (951,170) (1,634,084)
Proceeds from issuance of senior notes 1,500,000
Debt issuance costs and debt (discount) premium 21,635
Proceeds from New DISH DBS Financing 2,500,000
Debt issuance costs and debt (discount) premium from New DISH DBS Financing (136,208)
Early debt extinguishment gains (losses) of convertible and senior notes 72,566
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan 4,347 11,570
Purchase of SNR Management's ownership interest in SNR HoldCo (441,998)
Other, net (4,185) (5,997)
Net cash flows from financing activities 869,589 (133,243)
Effect of exchange rates on cash and cash equivalents (3,458) 1,622
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents 895,877 (519,481)
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 $
2,807,478 $
2,042,322
View original content to download multimedia:https://www.prnewswire.com/news-releases/echostar-announces-financial-results-for-the-three-and-nine-months-ended-september-30-2024-302302547.html
SOURCE EchoStar Corporation
