Market Overview

EchoStar Announces Financial Results for Three and Nine Months Ended September 30, 2019

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ENGLEWOOD, Colo., Nov. 7, 2019 /PRNewswire/ -- EchoStar Corporation (NASDAQ:SATS) today announced its financial results for the three and nine months ended September 30, 2019.

EchoStar Corporation Logo. (PRNewsfoto/EchoStar Corporation)

Three Months Ended September 30, 2019 Financial Highlights:

  • Consolidated revenues of $472.3 million.
  • Consolidated net loss of $21.1 million, consolidated net loss attributable to EchoStar common stock of $18.3 million, and diluted loss per share of $0.19.
  • Consolidated Adjusted EBITDA of $148.3 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below).

Nine Months Ended September 30, 2019 Financial Highlights:

  • Consolidated revenues of $1.4 billion.
  • Consolidated net loss of $11.2 million, consolidated net loss attributable to EchoStar common stock of $9.8 million, and diluted loss per share of $0.10.
  • Consolidated Adjusted EBITDA of $422.7 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below).

"I am pleased with our performance in the third quarter of 2019," commented Michael Dugan, CEO and President of EchoStar.  "On September 10th, we completed the spin-off to DISH of the BSS business and ancillary assets and liabilities in exchange for DISH shares that were distributed to EchoStar shareholders. As a result, the BSS business has been presented as discontinued operations in our current financial results.  We can now focus on the growing broadband market, additional satellite opportunities, and strategic investments.  We grew our consumer subscriber base by approximately 22,000 driven by our international markets and launched a consumer service in Mexico on October 1st.  Our North American capacity is relatively full with the EchoStar 24/J3 satellite scheduled for launch in 2021.  We continue to work to complete our previously announced JVs with Yahsat in Brazil and Bharti Airtel in India and also announced the acquisition of Helios Wire Corporation on October 25th.   The Helios acquisition lays the foundation for the creation of worldwide S-band capabilities."

Three Months Ended September 30, 2019 - Additional Information:

  • Consolidated revenue increased 4% or $16.0 million year over year.
  • An accrual of $20.7 million was booked during the quarter related to a license fee dispute with the Government of India. This impacted SG&A expenses by $7.1 million and Interest expense, net of amounts capitalized, by $13.6 million. Net income (loss) attributable to noncontrolling interests had a corresponding offset of $3.2 million. This fee dispute dates back over a decade and has affected the entire Indian Telecom industry.
  • Adjusted EBITDA decreased 4% or $6.0 million year over year.
    • Hughes segment Adjusted EBITDA increased by $1.9 million which includes the impact of the industry wide fee dispute with the Government of India.
    • ESS segment Adjusted EBITDA decreased by $2.9 million primarily due to lower revenue.
    • Corporate and Other segment Adjusted EBITDA decreased by $5.0 million driven primarily by transaction related legal costs and increased losses on equity in earnings of unconsolidated affiliates.
  • Net loss from continuing operations was $23.2 million, the loss increasing by $20.0 million from last year. The decline was primarily due to higher unrealized losses on foreign currency of $11.0 million, higher depreciation and amortization expense of $7.0 million, increased equity losses of unconsolidated affiliates of $3.6 million, partially offset by higher gains of investments of $5.4 million.
  • Hughes broadband subscribers are approximately 1,437,000 as of September 30, 2019 including approximately 192,000 subscribers in Central and South America.
  • Cash, cash equivalents and current marketable investment securities of $2.5 billion as of September 30, 2019.

Set forth below is a table highlighting certain of EchoStar's segment results for the three and nine months ended September 30, 2019 and 2018 (amounts in thousands):



For the three months
ended September 30,


For the nine months
ended September 30,



2019


2018


2019


2018










Revenue









Hughes


$

463,735



$

444,762



$

1,360,919



$

1,271,886


EchoStar Satellite Services


4,098



6,802



11,873



22,562


Corporate and Other


4,429



4,710



14,283



14,207


Total revenue


$

472,262



$

456,274



$

1,387,075



$

1,308,655











Adjusted EBITDA









Hughes


$

169,358



$

167,492



$

486,212



$

465,724


EchoStar Satellite Services


1,791



4,687



5,006



15,478


Corporate & Other:





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