EchoStar Announces Financial Results for the Three and Six Months Ended June 30, 2024

ENGLEWOOD, Colo., Aug. 9, 2024 /PRNewswire/ -- EchoStar Corporation (NASDAQ: SATS) announced its financial results for the three and six months ended June 30, 2024.

Six Months Ended June 30, 2024:

  • EchoStar reported total revenue of $7.97 billion for the six months ending June 30, 2024, compared to $8.74 billion in the year ago period.
  • Net loss attributable to EchoStar in the first two quarters of 2024 was $312.97 million, compared to net income of $466.20 million in the year ago period. Diluted loss per share was $1.15, compared to earnings per share of $1.51 in the year ago period.
  • Consolidated OIBDA totaled $912.31 million for the six months ending June 30, 2024, compared to $1.32 billion in the year ago period. (See OIBDA definition and non-GAAP reconciliation below.)

"The EchoStar team continued to perform as planned in the second quarter of 2024. We directed efforts on aligning key business synergies and objectives, focusing on profitable customer acquisition and retention efforts, and making improvements in our go-to-market approach for Retail Wireless," said Hamid Akhavan, president and CEO, EchoStar Corporation. "In addition, we are in constructive discussions to address necessary financing, working to strengthen our consumer offerings and value propositions, enhancing our state-of-the-art Open RAN network, and driving profitability across the enterprise."

Three Months Ended June 30, 2024:

  • Net Pay-TV subscribers decreased approximately 104,000 in the second quarter, compared to 294,000 in the year ago quarter. The company closed the quarter with 8.07 million Pay-TV subscribers including 6.07 million DISH TV subscribers and 2.00 million SLING TV subscribers. This change in net Pay-TV subscriber losses resulted from SLING TV subscriber additions in the second quarter compared to losses in the year ago quarter and a decrease in net DISH TV subscriber losses due to a lower DISH TV churn rate, offset by lower gross new DISH TV subscriber activations.
  • Retail Wireless net subscribers decreased by approximately 16,000 in the second quarter, compared to 188,000 in the year ago quarter. The company closed the quarter with 7.28 million Retail Wireless subscribers. The decrease in net retail wireless subscriber losses resulted from a lower retail wireless churn rate, offset by lower gross new retail wireless subscriber activations. The second quarter was negatively impacted by net losses of government subsidized subscribers, including Affordable Connectivity Program ("ACP") subscribers, compared to net additions in the year ago quarter, primarily due to the ACP program funding concluding on June 1, 2024. Excluding the impact of net losses of government subsidized subscribers EchoStar added approximately 32,000 Retail Wireless subscribers in the second quarter.
  • Broadband net subscribers decreased by approximately 23,000 in the second quarter, compared to 55,000 in the year ago quarter. The company closed the quarter with 955,000 Broadband subscribers. The net broadband subscriber loss improvement was primarily due to the new EchoStar XXIV satellite service launch and increased subscriber demand for our new satellite service plans.

Set forth below is a table highlighting certain of EchoStar's segment results for the three and six months ended June 30, 2024 and 2023 (all U.S. GAAP amounts reference results from operations):





For the Three Months Ended
June 30,


For the Six Months Ended
June 30,










2024


2023


2024


2023





(in thousands)

Revenue











Pay-TV




$     2,676,284


$     2,975,140


$     5,402,862


$     5,947,271

Retail Wireless



891,531


928,241


1,797,381


1,903,107

5G Network Deployment


35,514


19,079


65,018


37,986

Broadband and Satellite Services

394,011


453,110


776,597


892,706

All Other & Eliminations


(44,589)


(19,108)


(74,264)


(36,942)

Total



$     3,952,751


$     4,356,462


$     7,967,594


$     8,744,128












Net Income (loss) attributable to EchoStar

$       (205,591)


$       212,662


$       (312,967)


$       466,196












OIBDA











Pay-TV




$        753,001


$       818,265


$     1,508,511


$     1,596,073

Retail Wireless



(65,995)


(59,296)


(83,513)


(24,658)

5G Network Deployment


(313,018)


(278,475)


(646,582)


(514,451)

Broadband and Satellite Services

82,392


149,559


161,679


280,382

All Other & Eliminations


(14,224)


(7,191)


(27,783)


(13,392)

Total



$        442,156


$       622,862


$        912,312


$     1,323,954












Purchases of property and equipment, net of refunds (including capitalized
interest related to regulatory authorizations)





Pay-TV




$          54,006


$         67,630


$        111,918


$       103,193

Retail Wireless






5G Network Deployment


560,468


1,183,891


1,109,641


2,054,933

Broadband and Satellite Services

56,559


49,016


127,170


93,087

All Other & Eliminations





Total




$        671,033


$     1,300,537


$     1,348,729


$     2,251,213

 

Reconciliation of GAAP to Non-GAAP Measurement:

For the Three
Months Ended June 30, 2024


Pay-TV


Retail Wireless


5G Network
Deployment


Broadband and
Satellite
Services




Consolidated 

Eliminations



(In thousands)

Segment operating income (loss)


$

667,752


$

(121,362)


$

(578,940)


$

(34,586)


$

1,767


$

(65,369)

Depreciation and amortization



85,249



55,367



265,922



116,978



(15,991)



507,525

OIBDA


$

753,001


$

(65,995)


$

(313,018)


$

82,392


$

(14,224)


$

442,156




















For the Three
Months Ended June 30, 2023


 Pay-TV 


 Retail Wireless 


 5G Network
Deployment 


 Broadband and
Satellite
Services 




 Consolidated  

 Eliminations 




Segment operating income (loss)


$

720,792


$

(112,499)


$

(401,959)


$

43,847


$

2,048


$

252,229

Depreciation and amortization



97,473



53,203



123,484



105,712



(9,239)



370,633

OIBDA


$

818,265


$

(59,296)


$

(278,475)


$

149,559


$

(7,191)


$

622,862




















For the Six
Months Ended June 30, 2024


Pay-TV


Retail Wireless


5G Network
Deployment


Broadband and
Satellite
Services




Consolidated 

Eliminations




Segment operating income (loss)


$

1,337,860


$

(195,779)


$

(1,149,691)


$

(74,140)


$

1,137


$

(80,613)

Depreciation and amortization



170,651



112,266



503,109



235,819



(28,920)



992,925

OIBDA


$

1,508,511


$

(83,513)


$

(646,582)


$

161,679


$

(27,783)


$

912,312




















For the Six
Months Ended June 30, 2023


 Pay-TV 


 Retail Wireless 


 5G Network
Deployment 


 Broadband and
Satellite
Services 




 Consolidated  

 Eliminations 




Segment operating income (loss)


$

1,396,025


$

(130,706)


$

(735,562)


$

71,552


$

4,258


$

605,567

Depreciation and amortization



200,048



106,048



221,111



208,830



(17,650)



718,387

OIBDA


$

1,596,073


$

(24,658)


$

(514,451)


$

280,382


$

(13,392)


$

1,323,954

 

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 June 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 June 30, 2024, filed today with the Securities and Exchange Commission.

EchoStar will host a conference call to discuss its earnings on Friday, August 9, 2024, at noon 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.) or (201) 689-8846. When prompted on dial-in, please utilize the conference ID (13748126) or ask for the "EchoStar Corporation Q2 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  



 June 30, 


December 31,



2024


2023

Assets







Current Assets:





Cash and cash equivalents


$

419,246


$

1,821,376

Marketable investment securities



101,331



623,044

Trade accounts receivable, net of allowance for credit losses of $107,498 and
$74,390, respectively



1,052,855



1,122,139

Inventory



557,257



665,169

Prepaids and other assets



642,158



644,005

Other current assets



15,019



16,081

Total current assets



2,787,866



4,891,814








Noncurrent Assets:







Restricted cash, cash equivalents and marketable investment securities 



143,429



118,065

Property and equipment, net 



9,427,192



9,561,834

Regulatory authorizations, net



39,053,041



38,572,980

Other investments, net



243,191



314,370

Operating lease assets



3,137,306



3,065,448

Intangible assets, net 



86,992



172,892

Other noncurrent assets, net



376,176



411,491

Total noncurrent assets



52,467,327



52,217,080

Total assets


$

55,255,193


$

57,108,894








Liabilities and Stockholders' Equity (Deficit)







Current Liabilities:







Trade accounts payable


$

655,455


$

774,011

Deferred revenue and other



670,439



754,658

Accrued programming



1,546,377



1,427,762

Accrued interest



289,302



297,678

Other accrued expenses and liabilities



1,732,389



1,717,826

Current portion of long-term debt and finance lease obligations



2,082,919



3,046,654

Total current liabilities



6,976,881



8,018,589








Long-Term Obligations, Net of Current Portion:







Long-term debt and finance lease obligations, net of current portion



19,678,708



19,717,266

Deferred tax liabilities, net



4,975,164



5,014,309

Operating lease liabilities 



3,115,265



3,121,307

Long-term deferred revenue and other long-term liabilities



877,224



849,131

Total long-term obligations, net of current portion



28,646,361



28,702,013

Total liabilities



35,623,242



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,
140,318,473 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



8,326,880



8,301,979

Accumulated other comprehensive income (loss)



(179,126)



(160,056)

Accumulated earnings (deficit)



11,425,016



11,737,983

Total EchoStar stockholders' equity (deficit)



19,573,041



19,880,177

Noncontrolling interests



58,910



69,733

Total stockholders' equity (deficit)



19,631,951



19,949,910

Total liabilities and stockholders' equity (deficit)


$

55,255,193


$

57,108,894

 



ECHOSTAR CORPORATION



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 



(Dollars in thousands, except per share amounts)



(Unaudited)
















For the Three Months Ended June 30, 


For the Six Months Ended June 30, 



2024


2023


2024


2023

Revenue:













Service revenue


$

3,742,086


$

4,088,513


$

7,561,755


$

8,269,234

Equipment sales and other revenue



210,665



267,949



405,839



474,894

Total revenue



3,952,751



4,356,462



7,967,594



8,744,128














Costs and Expenses (exclusive of depreciation and amortization):













Cost of services



2,507,478



2,391,540



5,064,660



4,854,140

Cost of sales - equipment and other 



408,093



583,498



771,176



1,103,558

Selling, general and administrative expenses



595,024



758,562



1,219,446



1,459,334

Depreciation and amortization 



507,525



370,633



992,925



718,387

Impairment of long-lived assets and goodwill









3,142

Total costs and expenses



4,018,120



4,104,233



8,048,207



8,138,561














Operating income (loss)



(65,369)



252,229



(80,613)



605,567














Other Income (Expense):













Interest income, net



13,929



54,308



44,391



122,494

Interest expense, net of amounts capitalized



(81,166)



(21,648)



(180,574)



(41,681)

Other, net



(91,498)



34,068



(117,608)



(693)

Total other income (expense)



(158,735)



66,728



(253,791)



80,120














Income (loss) before income taxes



(224,104)



318,957



(334,404)



685,687

Income tax (provision) benefit, net



16,646



(86,265)



18,571



(180,150)

Net income (loss)



(207,458)



232,692



(315,833)



505,537

Less: Net income (loss) attributable to noncontrolling interests, net of tax



(1,867)



20,030



(2,866)



39,341

Net income (loss) attributable to EchoStar


$

(205,591)


$

212,662


$

(312,967)


$

466,196














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













Basic



271,592



270,818



271,555



270,328

Diluted



271,592



308,375



271,555



307,948














Earnings per share - Class A and B common stock:













Basic net income (loss) per share attributable to EchoStar


$

(0.76)


$

0.79


$

(1.15)


$

1.72

Diluted net income (loss) per share attributable to EchoStar


$

(0.76)


$

0.69


$

(1.15)


$

1.51

 




ECHOSTAR CORPORATION




CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS




(In thousands) 




(Unaudited)










For the Six Months Ended June 30, 



2024


2023

Cash Flows From Operating Activities:







Net income (loss)


$

(315,833)


$

505,537

Adjustments to reconcile net income (loss) to net cash flows from operating activities:







Depreciation and amortization



992,925



718,387

Impairment of long-lived assets and goodwill





3,142

Realized and unrealized losses (gains) on investments, impairments and other



49,312



(31,109)

Realized and unrealized losses (gains) on derivatives





36,974

Non-cash, stock-based compensation



19,693



27,306

Deferred tax expense (benefit)



(35,300)



143,754

Changes in allowance for credit losses



33,108



1,531

Change in long-term deferred revenue and other long-term liabilities



8,139



(3,356)

Other, net



192,710



67,120

Changes in current assets and current liabilities, net



(13,770)



69,820

Net cash flows from operating activities



930,984



1,539,106








Cash Flows From Investing Activities:







Purchases of marketable investment securities



(21,847)



(2,051,128)

Sales and maturities of marketable investment securities



501,512



1,917,860

Purchases of property and equipment



(866,922)



(1,700,818)

Refunds and other receipts of purchases of property and equipment





31,371

Capitalized interest related to regulatory authorizations



(481,807)



(581,766)

Proceeds from other debt investments





148,448

Purchases of regulatory authorizations, including deposits 



(1,104)



(1,771)

Sale of assets to CONX



26,719



Other, net



(4,716)



(13,286)

Net cash flows from investing activities



(848,165)



(2,251,090)








Cash Flows From Financing Activities:







Repayment of long-term debt and finance lease obligations



(52,758)



(53,514)

Redemption and repurchases of convertible and senior notes



(951,170)



(1,582,181)

Proceeds from issuance of senior notes





1,500,000

Early debt extinguishment gains (losses) of convertible and senior notes





68,086

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



1,832



8,297

Purchase of SNR Management's ownership interest in SNR HoldCo



(441,998)



Debt issuance costs and debt (discount) premium





21,635

Other, net



2



(4,710)

Net cash flows from financing activities 



(1,444,092)



(42,387)








Effect of exchange rates on cash and cash equivalents



(3,701)



3,483








Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents



(1,364,974)



(750,888)

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


$

546,627


$

1,810,915

 

SOURCE EchoStar Corporation

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