EchoStar Announces Fourth Quarter and Full Year 2017 Results
February 22, 2018
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Englewood, CO, February 22, 2018—EchoStar
Corporation (NASDAQ: SATS) today announced its financial results for the fourth
quarter and full year ended December 31, 2017.
Fourth Quarter 2017 Financial Highlights:
- Consolidated revenues of $506
million.
- Consolidated net income from
continuing operations of $311.8 million, consolidated net income
attributable to EchoStar common stock of $313.2 million and
diluted earnings per share of $3.23.
- Consolidated EBITDA of $207
million (see reconciliation of this non-GAAP measure below).
Full
Year Ended December 31, 2017 Financial Highlights:
-
Consolidated revenue of $1.89
billion.
-
Consolidated net income from
continuing operations of $385.0 million, consolidated net income
attributable to EchoStar common stock of $393.8 million and
diluted earnings per share of $4.07.
-
Consolidated EBITDA of $795
million (see reconciliation of this non-GAAP measure below).
Additional Highlights:
-
Approximately 1,208,000 Hughes
broadband subscribers as of December 31, 2017.
-
Cash, cash equivalents and
current marketable investment securities of $3.25 billion as of
December 31, 2017
The Tax Cuts and Jobs Act enacted in December
2017 includes a reduction of the federal corporate tax rate to 21%. As a result,
we provisionally recorded a one-time tax benefit of $303.5 million from the re-
measurement of our deferred tax assets and liabilities. The net income and
earnings per share noted above include the impact of this benefit.
Starting with the quarter that ended March 31,
2017, we changed the way we present our segments. Previously, our business
segments reflected an allocation of the costs of our corporate functions. Under
our new presentation, these costs are no longer allocated to the operating
segments and are now reported as part of the Corporate and Other segment
(previously “All Other and Eliminations”).
In addition, results of our EchoStar Technology
segment, which was transferred to DISH Network Corporation in the Share Exchange
transaction, are included in Discontinued Operations.
Set forth below is
a table highlighting certain of EchoStar’s segment results for the three and
twelve months ended December 31, 2017 and 2016:
|
|
|
For
the Three Months
Ended December 31,
|
|
For
the Years
Ended December 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
(Dollars in thousands)
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
Hughes
|
|
$
|
405,775
|
|
|
$
|
370,910
|
|
|
$
|
1,477,918
|
|
|
$
|
1,392,361
|
|
|
EchoStar Satellite Services
|
|
96,459
|
|
|
101,741
|
|
|
392,244
|
|
|
407,660
|
|
|
Corporate & Other
|
|
3,814
|
|
|
3,137
|
|
|
15,346
|
|
|
10,445
|
|
|
Total
|
|
$
|
506,048
|
|
|
$
|
475,788
|
|
|
$
|
1,885,508
|
|
|
$
|
1,810,466
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
|
|
|
|
|
|
Hughes
|
|
$
|
132,529
|
|
|
$
|
123,660
|
|
|
$
|
475,222
|
|
|
$
|
477,165
|
|
|
EchoStar Satellite Services
|
|
73,412
|
|
|
84,335
|
|
|
315,285
|
|
|
341,516
|
|
|
Corporate & Other
|
|
598
|
|
|
(22,170
|
)
|
|
4,070
|
|
|
(67,676
|
)
|
|
Total
|
|
$
|
206,539
|
|
|
$
|
185,825
|
|
|
$
|
794,577
|
|
|
$
|
751,005
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to
EchoStar common stock
|
|
$
|
313,237
|
|
|
$
|
38,222
|
|
|
$
|
393,770
|
|
|
$
|
181,673
|
|
|
Diluted earnings per share (in
dollars)
|
|
$
|
3.23
|
|
|
$
|
0.40
|
|
|
$
|
4.07
|
|
|
$
|
1.92
|
|
|
Net
income from continuing
operations
|
|
$
|
311,759
|
|
|
$
|
23,823
|
|
|
$
|
384,980
|
|
|
$
|
136,372
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures from
continuing operations
|
|
$
|
156,239
|
|
|
$
|
150,692
|
|
|
$
|
566,384
|
|
|
$
|
628,510
|
|
The following table
reconciles total consolidated Net income to EBITDA.
|
|
|
For
the Three Months
Ended December 31,
|
|
For
the Years
Ended December 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
(In
thousands)
|
|
Net
income
|
|
$
|
313,814
|
|
|
$
|
38,930
|
|
|
$
|
393,489
|
|
|
$
|
180,692
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and expense, net
|
|
46,465
|
|
|
35,587
|
|
|
172,621
|
|
|
102,237
|
|
|
Income tax (benefit) provision,
net
|
|
(293,359
|
)
|
|
18,996
|
|
|
(284,286
|
)
|
|
80,254
|
|
|
Depreciation and amortization
|
|
142,251
|
|
|
108,161
|
|
|
522,190
|
|
|
432,904
|
|
|
Net
income from discontinued
operations
|
|
(2,055
|
)
|
|
(15,107
|
)
|
|
(8,509
|
)
|
|
(44,320
|
)
|
|
Net
income attributable to
noncontrolling interests
|
|
(577
|
)
|
|
(742
|
)
|
|
(928
|
)
|
|
(762
|
)
|
|
EBITDA
|
|
$
|
206,539
|
|
|
$
|
185,825
|
|
|
$
|
794,577
|
|
|
$
|
751,005
|
|
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 benefit (provision), net” 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, 2017 and 2016 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, 2017 filed today with the
Securities and Exchange Commission.
EchoStar will host its earnings conference call on Thursday, February 22,
2018 at 11:00 a.m. Eastern Time. The call-in numbers are (877) 815-1625
(toll-free) and (716) 247-5178 (international), Conference ID # 2186058.
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, 2017,
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.