EchoStar Announces Financial Results for the Three and Nine Months Ended September 30, 2022 – QNT Press Release

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ENGLEWOOD, Colo., Nov. 2, 2022 /PRNewswire/ — EchoStar Corporation (NASDAQ:SATS) announced its financial results for the three and nine months ended September 30, 2022.

Three Months Ended September 30, 2022 Financial Highlights:

• Consolidated revenue of $497.4 million.
• Consolidated net income of $19.6 millionconsolidated net income attributable to EchoStar common stock of $22.4 million and basic and diluted earnings per share of common stock of $0.27.
• Consolidated Adjusted EBITDA of $158.8 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below).

Nine Months Ended September 30, 2022 Financial Highlights:

• Consolidated revenue of $1,498.2 million.
• Consolidated net income of $119.0 millionconsolidated net income attributable to EchoStar common stock of $127.7 millionand basic and diluted earnings per share of common stock of $1.51.
• Consolidated Adjusted EBITDA of $492.4 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below).

“During the third quarter of 2022, the EchoStar team continued to optimize operations and asset yields, delivering a solid performance,” said Hamid AkhavanCEO and President of EchoStar. “We remain focused on operating the business in an efficient manner while also preparing for the launch of our EchoStar XXIV/JUPITER 3 satellite. We have capitalized on enterprise market opportunities, and I am pleased that we have increased sales of equipment, primarily developed in-house, for both the three and nine month periods ending September 30compared to the same periods last year. We continue to seek opportunities in pursuit of our strategy of being a global connectivity and services provider.”

Three Months Ended September 30, 2022 – Additional Information:

• Consolidated revenue decreased 1.4% or $7.3 million year over year. Lower service revenue of $31.4 millionprimarily due to lower broadband consumer customers, was partially offset by higher equipment sales of $24.1 million to our domestic and international enterprise customers. The decrease includes an estimated negative foreign exchange impact of $3.8 million.
• Consolidated net income decreased $10.7 million year over year. The decrease was primarily due to lower operating income of $15.6 million and an unfavorable change in investments of $13.8 million. These items were partially offset by lower net interest expense of $10.9 millionlower net income tax expense of $6.6 millionand lower losses on foreign exchange of $3.8 million.
• Consolidated Adjusted EBITDA decreased 15.1% or $28.2 million year over year.
• Hughes segment adjusted EBITDA decreased $25.4 million year over year. The decrease was driven by lower gross margin due primarily to a change in revenue mix.
• ESS segment adjusted EBITDA increased $1.1 million year over year.
• Corporate and Other segment adjusted EBITDA decreased $3.9 million year over year. The decrease was primarily due to higher corporate expenses and lower earnings of unconsolidated affiliates, net, of $1.3 million.
• Hughes broadband subscribers totaled approximately 1,285,000, declining 61,000 from June 30, 2022. Current capacity limitations as well as competitive pressures are impacting consumer subscriber levels. In Latin Americasubscriber levels were also impacted by adverse economic conditions, more selective customer screening, and capacity allocation to higher economic value enterprise and government applications.
• For the three months ended September 30, 2022approximately 60% of Hughes segment revenue was attributable to consumer customers with approximately 40% attributable to enterprise customers.
• Cash, cash equivalents and current marketable investment securities were $1.6 billion as of September 30, 2022.
• During the three months ended September 30, 2022we purchased 593,643 shares of our Class A common stock in open market trades.
• The JUPITER 3/EchoStar XXIV satellite continues to progress at Maxar and is expected to be launched during the first half of 2023

Set forth below is a table highlighting certain of EchoStar’s segment results for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands) (all US GAAP amounts reference results from operations):

Reconciliation of GAAP to Non-GAAP Measurement (amounts in thousands):

Full story available on Benzinga.com

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