Related Quotes  Echostar Corporation  25.20   0.09  0.36%  Enter Symbols:       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 September 30, For the Nine Months Ended 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 Ended September 30, 2024 Pay-TV Retail Wireless 5G Network Deployment Broadband and Satellite Services Consolidated 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 September 30, 2024 Pay-TV Retail Wireless 5G Network Deployment Broadband and Satellite Services Consolidated 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™, and JUPITER™ 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 $74,390, respectively 1,099,545 1,122,139 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, 140,480,742 and 140,153,020 shares issued and outstanding, respectively 140 140 Class B common stock, $0.001 par value, 800,000,000 shares authorized, 131,348,468 shares issued and outstanding 131 131 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 Ended September 30, For the Nine Months 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   back