EchoStar Announces Fourth Quarter and Full Year 2016 Results


February 24, 2017


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Englewood, CO, February 24, 2017—EchoStar Corporation (NASDAQ: SATS) today announced its financial results for the fourth quarter and full year ended December 31, 2016.

Fourth Quarter 2016 Financial Highlights:
  • Consolidated revenues of $740 million.
  • Consolidated net income of $39 million.
  • Consolidated net income attributable to EchoStar common stock of $38 million and diluted earnings per share of $0.40.
  • Consolidated EBITDA of $229 million (see reconciliation of this non-GAAP measure below).
  • Approximately 1,036,000 Hughes consumer broadband subscribers as of December 31, 2016.
Full Year Ended December 31, 2016 Financial Highlights:
  • Consolidated revenue of $3.06 billion.
  • Consolidated net income of $181 million.
  • Consolidated net income attributable to EchoStar common stock of $182 million and diluted earnings per share of $1.92.
  • Consolidated EBITDA of $884 million (see reconciliation of this non-GAAP measure below).
  • Strong liquidity with cash, cash equivalents and current marketable investment securities of $3.09 billion as of December 31, 2016.
Set forth below is a table highlighting certain of EchoStar’s segment results for the three and twelve months ended December 31, 2016 and 2015:
 
 
For the Three Months
Ended December 31,
 
For the Years
Ended December 31,
 
 
2016
 
2015
 
2016
 
2015
 
 
(Dollars in thousands)
Revenue
 
 
 
 
 
 
 
 
Hughes
 
$
370,910
 
 
$
347,146
 
 
$
1,392,361
 
 
$
1,347,340
 
EchoStar Technologies Corp.
 
266,082
 
 
325,101
 
 
1,249,197
 
 
1,298,198
 
EchoStar Satellite Services
 
101,741
 
 
116,304
 
 
407,660
 
 
490,591
 
All Other & Eliminations
 
1,660
 
 
2,036
 
 
7,512
 
 
7,585
 
Total
 
$
740,393
 
 
$
790,587
 
 
$
3,056,730
 
 
$
3,143,714
 
 
 
 
 
 
 
 
 
 
EBITDA
 
 
 
 
 
 
 
 
Hughes
 
$
109,937
 
 
$
100,415
 
 
$
427,802
 
 
$
396,684
 
EchoStar Technologies Corp.
 
32,123
 
 
25,981
 
 
89,549
 
 
106,745
 
EchoStar Satellite Services
 
83,784
 
 
98,430
 
 
339,496
 
 
412,607
 
All Other & Eliminations
 
3,243
 
 
(2,084
)
 
26,684
 
 
(50,683
)
Total
 
$
229,087
 
 
$
222,742
 
 
$
883,531
 
 
$
865,353
 
 
 
 
 
 
 
 
 
 
Net income (loss) attributable to EchoStar common stock
 
$
38,222
 
 
$
66,296
 
 
$
181,673
 
 
$
163,700
 
Diluted earnings per share (in dollars)
 
$
0.40
 
 
$
0.71
 
 
$
1.92
 
 
$
1.75
 
Net income
 
$
38,930
 
 
$
62,402
 
 
$
180,692
 
 
$
149,371
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
$
188,672
 
 
$
223,368
 
 
$
698,254
 
 
$
703,520
 
 
The following table reconciles total consolidated net income to EBITDA.

 
 
For the Three Months
Ended December 31,
 
For the Years
Ended December 31,
 
 
2016
 
2015
 
2016
 
2015
 
 
(In thousands)
Net income
 
$
38,930
 
 
$
62,402
 
 
$
180,692
 
 
$
149,371
 
 
 
 
 
 
 
 
 
 
 
Interest income and expense, net
 
35,615
 
 
23,397
 
 
102,381
 
 
111,637
 
Income tax provision, net
 
31,088
 
 
6,360
 
 
106,152
 
 
72,201
 
Depreciation and amortization
 
124,196
 
 
129,611
 
 
495,068
 
 
528,158
 
Net (income) loss attributable to noncontrolling interest in HSS Tracking Stock and other noncontrolling interests
 
(742
)
 
972
 
 
(762
)
 
3,986
 
EBITDA
 
$
229,087
 
 
$
222,742
 
 
$
883,531
 
 
$
865,353
 

Note on Use of Non-GAAP Financial Measures
EBITDA is defined as “Net income” excluding “Interest expense, net of amounts capitalized,” “Interest income”, “Income tax provision” and “Depreciation and amortization.”  EBITDA is not a measure determined in accordance with US GAAP. This non-GAAP measure is reconciled to net income in the table above. EBITDA should not be considered in isolation or as a substitute for operating income, net income or any other measure determined in accordance with GAAP. EBITDA is used by our management as a measure of operating efficiency and overall financial performance for benchmarking against our peers and competitors. Management believes EBITDA provides meaningful supplemental information regarding the underlying operating performance of our business. Management also believes that EBITDA is useful to investors because it is 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, 2016 and 2015 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, 2016 filed today with the Securities and Exchange Commission.
EchoStar will host its earnings conference call on Friday, February 24, 2017 at 10:00 a.m. Eastern Time. The call-in numbers are (877) 815-1625 (toll-free) and (716) 247-5178 (international), Conference ID # 69523685.
 
About EchoStar Corporation
EchoStar Corporation (NASDAQ:  SATS) is a premier global provider of satellite and video delivery solutions.  Headquartered in Englewood, Colo., and conducting business around the globe, EchoStar is a pioneer in secure communications technologies through its EchoStar Satellite Services, EchoStar Technologies Corporation, and Hughes Network Systems 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, 2016, filed today with the Securities and Exchange Commission and in the other documents EchoStar files with the Securities and Exchange Commission from time to time.
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Contact Information
 
EchoStar Investor Relations
EchoStar Media Relations
Deepak V. Dutt
Phone: +1 301-428-1686
Email: deepak.dutt@echostar.com
 
Janet Gipson
Phone: +1 303-706-5555
Email: janet.gipson@echostar.com

ECHOSTAR CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
 
 
As of December 31,