February 24, 2017

EchoStar Announces Fourth Quarter and Full Year 2016 Results

ENGLEWOOD, Colo., Feb. 24, 2017 /PRNewswire/ -- 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.

 


ECHOSTAR CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)






As of December 31,



2016


2015

Assets





Current Assets:





Cash and cash equivalents


$

2,571,143



$

924,240


Marketable investment securities, at fair value


522,516



612,338


Trade accounts receivable, net of allowance for doubtful accounts of $13,400 and $12,485, respectively


209,788



179,240


Trade accounts receivable - DISH Network, net of allowance for doubtful accounts of zero


278,615



277,159


Inventory


72,444



67,010


Prepaids and deposits


57,919



56,949


Other current assets


10,862



16,723


Total current assets


3,723,287



2,133,659


Noncurrent Assets:





Restricted cash and marketable investment securities


12,926



21,002


Property and equipment, net of accumulated depreciation of $3,407,470 and $2,998,074, respectively


3,669,303



3,412,990


Regulatory authorizations, net


544,633



543,812


Goodwill


510,630



510,630


Other intangible assets, net


88,454



132,653


Investments in unconsolidated entities


197,219



209,264


Other receivable - DISH Network


90,586



90,966


Other noncurrent assets, net


171,821



154,510


Total noncurrent assets


5,285,572



5,075,827


Total assets


$

9,008,859



$

7,209,486


Liabilities and Stockholders' Equity





Current Liabilities:





Trade accounts payable


$

189,815



$

213,671


Trade accounts payable - DISH Network


5,032



24,682


Current portion of long-term debt and capital lease obligations


37,307



35,698


Deferred revenue and prepayments


62,956



61,881


Accrued compensation


58,106



42,767


Accrued interest


46,504



8,596


Accrued royalties


23,199



22,531


Accrued expenses and other


108,519



117,005


Total current liabilities


531,438



526,831


Noncurrent Liabilities:





Long-term debt and capital lease obligations, net of unamortized debt issuance costs


3,622,879



2,156,667


Deferred tax liabilities, net


754,020



650,392


Other noncurrent liabilities


93,717



93,954


Total noncurrent liabilities


4,470,616



2,901,013


Total liabilities


5,002,054



3,427,844


Commitments and Contingencies (Note 16)





Stockholders' Equity:





Preferred Stock, $.001 par value, 20,000,000 shares authorized:





Hughes Retail Preferred Tracking Stock, $.001 par value, 13,000,000 shares authorized, 6,290,499 issued and outstanding at each of December 31, 2016 and 2015


6



6


Common stock, $.001 par value, 4,000,000,000 shares authorized:





Class A common stock, $.001 par value, 1,600,000,000 shares authorized, 52,243,465 shares issued and 46,711,147 shares outstanding at December 31, 2016 and 51,087,839 shares issued and 45,555,521 shares outstanding at December 31, 2015


52



51


Class B common stock, $.001 par value, 800,000,000 shares authorized, 47,687,039 shares issued and outstanding at each of December 31, 2016 and 2015


48



48


Class C common stock, $.001 par value, 800,000,000 shares authorized, none issued and outstanding at each of December 31, 2016 and 2015





Class D common stock, $.001 par value, 800,000,000 shares authorized, none issued and outstanding at each of December 31, 2016 and 2015





Additional paid-in capital


3,828,677



3,776,451


Accumulated other comprehensive loss


(124,803)



(117,233)


Accumulated earnings


314,247



134,317


Treasury stock, at cost


(98,162)



(98,162)


Total EchoStar stockholders' equity


3,920,065



3,695,478


Noncontrolling interest in HSS Tracking Stock


73,910



74,854


Other noncontrolling interests


12,830



11,310


Total stockholders' equity


4,006,805



3,781,642


Total liabilities and stockholders' equity


$

9,008,859



$

7,209,486


 


ECHOSTAR CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share amounts)






For the Years Ended December 31,



2016


2015


2014

Revenue:







Services and other revenue - DISH Network


$

888,603



$

918,301



$

828,612


Services and other revenue - other


1,109,597



1,103,928



1,096,938


Equipment revenue - DISH Network


711,289



763,184



1,145,979


Equipment revenue - other


347,241



358,301



374,049


Total revenue


3,056,730



3,143,714



3,445,578


Costs and Expenses:







Cost of sales - services and other (exclusive of depreciation and amortization)


844,498



856,065



838,918


Cost of sales - equipment (exclusive of depreciation and amortization)


891,108



948,655



1,288,998


Selling, general and administrative expenses


385,634



374,116



372,010


Research and development expenses


76,024



78,287



60,886


Depreciation and amortization


495,068



528,158



556,676


Impairment of long-lived assets




2,400




Total costs and expenses


2,692,332



2,787,681



3,117,488


Operating income


364,398



356,033



328,090


Other Income (Expense):







Interest income


21,249



10,429



9,102


Interest expense, net of amounts capitalized


(123,630)



(122,066)



(171,349)


Loss from partial redemption of debt




(5,044)




Gains (losses) on marketable investment securities, net


9,767



(6,443)



41


Other-than-temporary impairment loss on available-for-sale securities




(11,226)




Equity in earnings of unconsolidated affiliates, net


13,310



1,895



8,198


Other, net


1,750



(2,006)



4,251


Total other expense, net


(77,554)



(134,461)



(149,757)


Income before income taxes


286,844



221,572



178,333


Income tax provision, net


(106,152)



(72,201)



(30,784)


Net income


180,692



149,371



147,549


Less: Net loss attributable to noncontrolling interest in HSS Tracking Stock


(944)



(5,603)



(6,714)


Less: Net income attributable to other noncontrolling interests


1,706



1,617



1,389


Net income attributable to EchoStar


179,930



153,357



152,874


Less: Net loss attributable to Hughes Retail Preferred Tracking Stock (Note 4)


(1,743)



(10,343)



(12,394)


Net income attributable to EchoStar common stock


$

181,673



$

163,700



$

165,268









Weighted-average common shares outstanding - Class A and B common stock:







Basic


93,795



92,397



91,190


Diluted


94,410



93,466



92,616


Earnings per share - Class A and B common stock:







Basic


$

1.94



$

1.77



$

1.81


Diluted


$

1.92



$

1.75



$

1.78









Comprehensive Income (Loss)







Net income


$

180,692



$

149,371



$

147,549


Other comprehensive income (loss), net of tax:







Foreign currency translation adjustments


(11,315)



(62,731)



(31,935)


Recognition of foreign currency translation loss in net income




1,889




Unrealized gains (losses) on available-for-sale securities and other


9,149



(12,046)



(9,462)


Recognition of other-than-temporary loss on available-for-sale securities in net income




11,226




Recognition of realized gains on available-for-sale securities in net income


(5,590)



(35)



(41)


Total other comprehensive loss, net of tax


(7,756)



(61,697)



(41,438)


Comprehensive income


172,936



87,674



106,111


Less: Comprehensive loss attributable to noncontrolling interest in HSS Tracking Stock


(944)



(5,603)



(6,714)


Less: Comprehensive income attributable to other noncontrolling interests


1,520



1,297



1,152


Comprehensive income attributable to EchoStar


$

172,360



$

91,980



$

111,673


 

ECHOSTAR CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)






For the Years Ended December 31,



2016


2015


2014

Cash Flows from Operating Activities:







Net income


$

180,692



$

149,371



$

147,549


Adjustments to reconcile net income to net cash flows from operating activities:







Depreciation and amortization


495,068



528,158



556,676


Impairment of long-lived assets




2,400




Loss from partial redemption of debt




5,044




Losses (gains) and impairment on marketable investment securities, net


(9,767)



17,669



(41)


Equity in earnings of unconsolidated affiliates, net


(13,310)



(1,895)



(8,198)


Stock-based compensation


15,234



21,839



14,683


Deferred tax provision


98,148



56,132



31,742


Dividends received from unconsolidated entities


15,000



5,000



7,400


Proceeds from sale of trading securities


7,140



380



17,053


Changes in current assets and current liabilities, net:







Trade accounts receivable, net


(26,942)



(38,452)



(17,073)


Trade accounts receivable - DISH Network


(1,456)



(25,490)



104,051


Inventory


(4,814)



(4,906)



2,608


Other current assets


2,263



6,499



9,930


Trade accounts payable


(24,571)



37,228



(22,230)


Trade accounts payable - DISH Network


(19,650)



(7,792)



(26,508)


Accrued expenses and other


55,998



1,477



26,469


Changes in noncurrent assets and noncurrent liabilities, net


9,459



1,616



(8,305)


Other, net


24,851



22,173



4,325


Net cash flows from operating activities


803,343



776,451



840,131


Cash Flows from Investing Activities:







Purchases of marketable investment securities


(921,247)



(536,430)



(1,523,514)


Sales and maturities of marketable investment securities


1,001,166



1,057,034



1,353,157


Expenditures for property and equipment


(722,341)



(809,270)



(680,026)


Refunds and other receipts related to capital expenditures


24,087



105,750




Changes in restricted cash and marketable investment securities


8,076



(2,057)



(2,808)


Investments in unconsolidated entities


(1,636)



(64,655)



(18,569)


Acquisition of regulatory authorization




(3,428)




Expenditures for externally marketed software


(23,252)



(22,327)



(22,955)


Other, net


2,880



72



7,125


Net cash flows from investing activities


(632,267)



(275,311)



(887,590)


Cash Flows from Financing Activities:







Proceeds from issuance of long-term debt


1,500,000






Payments of debt issuance costs


(7,097)






Repayment of 6 1/2% Senior Secured Notes Due 2019 and related premium




(113,300)




Repayment of debt and capital lease obligations


(40,364)



(44,804)



(63,122)


Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan


27,432



38,729



28,857


Net proceeds from issuance of Tracking Stock (Note 4)






7,526


Excess tax benefit from stock option exercises


848



3,929



(7,252)


Other, net


(5,130)



(4,811)



(1,105)


Net cash flows from financing activities


1,475,689



(120,257)



(35,096)


Effect of exchange rates on cash and cash equivalents


138



(5,696)



(2,511)


Net increase (decrease) in cash and cash equivalents


1,646,903



375,187



(85,066)


Cash and cash equivalents, beginning of period


924,240



549,053



634,119


Cash and cash equivalents, end of period


$

2,571,143



$

924,240



$

549,053


Supplemental Disclosure of Cash Flow Information:







Cash paid for interest (including capitalized interest)


$

172,707



$

179,114



$

188,087


Capitalized interest


$

94,395



$

63,808



$

23,774


Cash paid for income taxes


$

11,700



$

6,394



$

14,221


Employee benefits paid in Class A common stock


$

11,126



$

10,711



$

10,316


Property and equipment financed under capital lease obligations


$

7,652



$

8,604



$

3,312


Increase (decrease) in capital expenditures included in accounts payable, net


$

3,054



$

(7,123)



$

11,436


Noncash assets contributed to SmarDTV (Note 6)


$



$

6,651



$


Net noncash assets transferred from DISH Network in exchange for Tracking Stock (Note 4)


$



$



$

386,691


Noncash assets received from Sling TV Holding (Note 6)


$



$



$

34,075


Reduction of capital lease obligation for AMC-15 and AMC-16 satellites

 

 


$



$

4,500



$


 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/echostar-announces-fourth-quarter-and-full-year-2016-results-300412062.html

SOURCE EchoStar Corporation

News Provided by Acquire Media


Close window | Back to top

Copyright 2017 EchoStar Corporation