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

August 9, 2024
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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

 

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