- Fourth quarter revenue of $550.7 million; full-year 2016 revenue of
$2,188 million
- Fourth quarter net income attributable to Intelsat S.A. of $662.8
million; 2016 full-year net income attributable to Intelsat S.A. of
$990.2 million
- $8.7 billion contracted backlog provides visibility for future
revenue and cash flow
- Intelsat issues 2017 Guidance
- Announced conditional combination agreement with OneWeb in a
share-for-share transaction
- SoftBank Group Corp. to capitalize Intelsat with $1.7 billion
investment in new equity to effect Intelsat debt reduction through
exchange offers
Company Website:
http://www.intelsat.com
LUXEMBOURG -- (Business Wire)
Intelsat S.A. (NYSE:I), operator of the world’s first Globalized
Network, powered by its leading satellite backbone, today announced
financial results for the three months and full-year ended December 31,
2016.
Intelsat reported total revenue of $550.7 million and net income
attributable to Intelsat S.A. of $662.8 million for the three months
ended December 31, 2016.
Intelsat reported EBITDA1, or earnings before net interest,
gain on early extinguishment of debt, taxes and depreciation and
amortization, of $406.7 million and Adjusted EBITDA1 of
$417.4 million, or 76 percent of revenue for the three months ended
December 31, 2016.
For the year ended December 31, 2016, Intelsat reported total revenue of
$2,188.0 million and net income attributable to Intelsat S.A. of $990.2
million.
Intelsat reported EBITDAof $1,613.4 million and Adjusted
EBITDA of $1,650.7 million, or 75 percent of revenue for the year ended
December 31, 2016.
“Our fourth quarter financial results, $551 million in revenue and $417
million in Adjusted EBITDA, demonstrate the increasing stability in our
business as we executed on our initiatives to drive growth,” said
Stephen Spengler, Chief Executive Officer, Intelsat. “For the full-year,
our revenue and Adjusted EBITDA performance fell favorably within our
guidance range, demonstrating the visibility and sustainability of our
business. Our objective for 2017 is to build on this foundation as we
work to transform our business, as the era of high performance
satellites unlocks new and faster growing opportunities. Our Intelsat
EpicNG high-throughput footprint now provides services to
five continents, overlaying our Globalized Network with high
performance, better economics and simplified access to satellite
solutions.”
Mr. Spengler continued, “Each of our businesses is positioned for
improved performance or new opportunities in 2017. Our network services
business is moving from stability to renewed growth as new revenue on
Intelsat EpicNG assets ramps up over the course of the year.
Our media business is growing, with the full-year revenue benefit of two
fully-booked DTH satellites that launched last year. Our government
business is expected to benefit from Intelsat EpicNG now in
service over regions of interest to its largest customer. Backlog as of
December 31, 2016 was $8.7 billion, four times Intelsat’s 2016 revenue.”
Mr. Spengler concluded, “In 2017, maintaining our momentum is one of our
top objectives, whether on growth opportunities, the remaining Intelsat
EpicNG satellite launches, implementing our managed services,
or operationalizing production units of new ground technologies, such as
electronically steerable antennas, in which we have invested.
Additionally, our proposed merger with OneWeb which was announced
earlier today aligns with our strategic objectives and will create the
world’s first global broadband provider. We believe the complementary
OneWeb technology, and the $1.7 billion investment by SoftBank, will
create a company with greater growth opportunities and a strong
financial foundation. Importantly, we will be more strongly positioned
to achieve our shared mission to unlock new applications for
satellite-based solutions, connecting people and devices everywhere.”
Fourth Quarter and Full-Year 2016 Business Highlights
Intelsat provides critical communications infrastructure to customers in
the network services, media and government sectors. Our customers use
our services for broadband connectivity to deliver fixed and mobile
telecommunications, enterprise, video distribution and fixed and mobile
government applications. For additional details regarding the
performance of our customer sets, see our Quarterly Commentary.
Network Services
Network services revenue was $221.9 million (or 40 percent of Intelsat’s
total revenue) for the three months ended December 31, 2016, a decrease
of 10 percent compared to the three months ended December 31, 2015. For
the year ended December 31, 2016, the company reported total network
services revenue of $900.3 million (or 41 percent of Intelsat’s total
revenue); a decrease of 15 percent compared to the year ended December
31, 2015.
Media
Media revenue was $228.4 million (or 42 percent of Intelsat’s total
revenue) for the three months ended December 31, 2016, an increase of 4
percent compared to the three months ended December 31, 2015. For the
year ended December 31, 2016, the company reported total media revenue
of $868.1 million (or 40 percent of Intelsat’s total revenue), a
decrease of 2 percent compared to the year ended December 31, 2015.
Government
Government revenue was $93.2 million (or 17 percent of Intelsat’s total
revenue) for the three months ended December 31, 2016, a decline of 7
percent compared to the three months ended December 31, 2015. For the
year ended December 31, 2016, total government revenue was $387.1
million (or 18 percent of Intelsat’s total revenue), essentially flat
when compared to the year ended December 31, 2015.
Average Fill Rate
Intelsat’s average fill rate on our approximately 2,175 station-kept
wide-beam transponders was
77 percent at December 31, 2016, unchanged as of September 30, 2016.
Note that Intelsat 31, an in-orbit spare satellite, is not included in
the station-kept transponder count. Because we report our
high-throughput Intelsat EpicNG capacity separately, the
station-kept count reported above excludes the 270 units of
high-throughput capacity related to our first Intelsat EpicNG
satellite, Intelsat 29e, which entered into service in the first quarter
of 2016, and approximately 350 units of high-throughput capacity related
to Intelsat 33e, which just entered into service in late January 2017.
Satellite Launches
On August 24, 2016, Intelsat 33e and Intelsat 36 were successfully
launched and Intelsat 36 entered into service in late September 2016. As
previously communicated, Intelsat 33e’s in-service date was delayed due
to a malfunction in the primary thruster used for orbit raising.
Intelsat 33e entered into service on January 29, 2017, and all
operations are performing according to plan.
The company has three satellite launches scheduled for 2017: Intelsat
32e, an Intelsat EpicNG Ku-band payload which launched on
February 14, 2017; Intelsat 35e in the second quarter of 2017; and
Intelsat 37e in the third quarter of 2017.
Contracted Backlog
At December 31, 2016, Intelsat’s contracted backlog, representing
expected future revenue under existing contracts with customers, was
$8.7 billion, as compared to $8.9 billion at September 30, 2016.
Capital Structure Updates and Debt Transactions
During the three months ended December 31, 2016 through the month of
January 2017, Intelsat (Luxembourg) S.A. (“Intelsat Luxembourg”), an
indirect wholly-owned subsidiary of Intelsat S.A., and our newly created
subsidiary, Intelsat Connect Finance S.A. (“ICF”), a direct wholly-owned
subsidiary of Intelsat Luxembourg, completed a number of public and
private debt exchanges. The transactions allowed the Company to
significantly reduce its upcoming 2018 maturity, the Intelsat
Luxembourg’s 6.75% Senior Notes due 2018 (the “2018 Lux Notes”). Below
is a summary of the transactions conducted during this period:
-
In December 2016, ICF completed a series of exchanges, receiving (i)
$377.6 million aggregate principal amount of 2018 Lux Notes in
exchange for $132.1 million aggregate principal amount of ICF’s newly
issued 12.5% Senior Notes due 2022 (the “2022 ICF Notes”) and $226.5
million in cash, (ii) $979.1 million aggregate principal amount of
Intelsat Luxembourg’s 7.75% Senior Notes due 2021 (the “2021 Lux
Notes”) in exchange for $538.4 million aggregate principal amount of
2022 ICF Notes and $29.4 million in cash, and (iii) $111.7 million
aggregate principal amount of Intelsat Luxembourg’s 8.125% Senior
Notes due 2023 (the “2023 Lux Notes”) in exchange for $61.4 million
aggregate principal amount of 2022 ICF Notes and $3.3 million in cash.
-
In January 2017, Intelsat Luxembourg completed an exchange offer
whereby it exchanged $403.3 million aggregate principal amount of its
2018 Lux Notes for an equal aggregate principal amount of its newly
issued 12.5% Senior Notes due 2024 (the “2024 Lux Notes”). This
exchange consisted of the tender of $377.6 million aggregate principal
amount of 2018 Lux Notes held by ICF as a result of the December 2016
ICF exchange transactions, together with $25 million aggregate
principal amount of 2018 Lux Notes the Company repurchased in the
fourth quarter of 2015.
December 31, 2016 Capital Structure Pro Forma for the Final
Results of the Exchange Offer of Certain Intelsat Luxembourg Notes
Completed in January 2017
|
| |
| |
| | |
($ in millions)
| | | | Held by Intelsat | | U.S. GAAP | |
Intelsat (Luxembourg) S.A. | | Maturity | | Connect Finance S.A. | | Consolidated Amount | |
6.750% Senior Notes
| |
1-Jun-18
| |
$
|
-
| |
$
|
97
| |
7.750% Senior Notes
| |
1-Jun-21
| |
$
|
(979)
| |
$
|
1,021
| |
8.125% Senior Notes
| |
1-Jun-23
| |
$
|
(112)
| |
$
|
888
| |
12.500% Senior Notes
| |
15-Nov-24
| |
$
|
(403)
| |
$
|
1
| |
Total | | | | $ | (1,493) | | $ | 2,007 | |
| | | | | | |
|
Intelsat Connect Finance S.A. | | | | | | | |
12.500% Senior Notes
| |
1-Apr-22
| |
$
|
-
| |
$
|
732
| |
| | | | | | |
|
Intelsat Jackson Holdings S.A.* | | Maturity | | | | | |
7.250% Senior Notes
| |
1-Apr-19
| |
$
|
-
| |
$
|
1,500
| |
7.250% Senior Notes
| |
15-Oct-20
| |
$
|
-
| |
$
|
2,200
| |
7.500% Senior Notes
| |
1-Apr-21
| |
$
|
-
| |
$
|
1,150
| |
5.500% Senior Notes
| |
1-Aug-23
| |
$
|
-
| |
$
|
2,000
| |
Total Unsecured | | | | | | $ | 6,850 | |
| | | | | | |
|
9.500% Senior Secured Notes
| |
30-Sep-22
| |
$
|
-
| |
$
|
490
| |
8.000% Senior Secured Notes
| |
15-Feb-24
| |
$
|
-
| |
$
|
1,350
| |
Secured Term Loan B-2
| |
30-Jun-19
| |
$
|
-
| |
$
|
3,095
| |
Total Secured | | | | | | $ | 4,935 | |
Total Consolidated | | | | $ | (1,493) | | $ | 14,523 | |
| | | | | | |
|
* All listed debt is guaranteed by Intelsat Jackson's guarantor
subsidiaries.
| |
|
|
Recent Developments
Intelsat and WorldVu Satellites Limited (“OneWeb”) announced today that
they have entered into a conditional combination agreement, pursuant to
and subject to the terms and conditions of which, OneWeb, the builder of
a new Low Earth Orbit (LEO) global communications system will merge with
and into Intelsat, to create a next-generation communications company.
In addition, subject to the terms and conditions of a share purchase
agreement with Intelsat, SoftBank Group Corp. (“SoftBank”), which
currently owns 43% of the equity of OneWeb, is expected to invest an
additional $1.7 billion in newly issued common and preferred equity of
the combined company to support the acceleration of the combined
company’s growth strategies and strengthen the Intelsat capital
structure.
The merger and the SoftBank investment are expected to be completed late
in the third quarter of 2017, and are conditioned upon the consummation
of certain Intelsat debt exchange offers, the receipt of regulatory
approvals, consent and approval by both Intelsat and OneWeb shareholders
as well as other customary closing conditions. There can be no assurance
that the merger or the SoftBank investment will be completed, or whether
the terms will be amended from those described above.
Financial Results for the Three Months Ended December 31, 2016
On-Network revenues generally include revenue from any services
delivered via our satellite or ground network. Off-Network and Other
Revenues generally include revenue from transponder services, Mobile
Satellite Services (“MSS”) and other satellite-based transmission
services using capacity procured from other operators, often in
frequencies not available on our network. Off-Network and Other Revenues
also include revenue from consulting and other services and sales of
customer premises equipment.
Total On-Network Revenues reported a decline of $14.2 million, or
3 percent, to $504.1 million as compared to the three months ended
December 31, 2015:
- Transponder services reported an aggregate decrease of $13.1
million, primarily due to a $26.7 million decrease in revenue from
network services customers, partially offset by a $14.6 million
increase from media customers. The network services decline was mainly
due to non-renewals and renewal pricing at lower rates for enterprise
and wireless infrastructure services. The network services decline
also reflects previously discussed reduced volumes from non-renewals
of point-to-point connectivity, which are shifting to fiber
alternatives. The media increase resulted primarily from growth in
direct-to-home television services in the Latin America, Caribbean and
the Africa regions, partially offset by declines in the Asia-Pacific
and North America regions. The aggregate decrease also reflects $2.9
million in currency-related reductions of our contracts in Brazil
across our network services and media businesses.
- Managed services reported an aggregate increase of $0.6
million, largely due to an increase of $10.5 million in revenue from
network services customers for broadband services for air and maritime
mobility applications, partially offset by declines of $5.7 million in
revenues primarily from network services customers for point-to-point
trunking applications, which are switching to fiber alternatives, and
a $2.0 million decrease from media customers for occasional video
solutions.
- Channel reported an aggregate decrease of $1.7 million due to
the continued migration of international point-to-point satellite
traffic to fiber optic cable. This legacy product is no longer
actively marketed to our customers.
Total Off-Network and Other Revenues reported an aggregate
decline of $6.4 million, or a decrease of 12 percent, to $46.5 million
as compared to the three months ended December 31, 2015:
- Transponder, MSS and other Off-Network services reported an
aggregate decrease of $7.1 million, primarily due to lower pricing on
renewing services for government applications and reduced sales of
customer premises equipment.
- Satellite-related services reported a slight aggregate increase
of $0.7 million, primarily due to increased revenue from support for
third-party satellites and other services.
For the three months ended December 31, 2016, changes in operating
expenses, interest expense, net, and other significant income statement
items are described below.
Direct costs of revenue (excluding depreciation and amortization)
increased by $1.7 million, or 2 percent, to $86.8 million, as compared
to the three months ended December 31, 2015. This reflects an increase
of $3.5 million in staff-related expenses offset by a decrease of $6.0
million primarily due to lower cost of third-party fixed satellite
services and mobile satellite services capacity purchased in support of
the company’s government business.
Selling, general and administrative expenses increased by $12.0
million, or 27 percent, to $56.2 million, as compared to the three
months ended December 31, 2015. This was primarily due to an increase of
$6.7 million in staff-related expenses and an increase of $3.3 million
in bad debt expense primarily due to a greater reduction in the prior
year quarter due to improved collections in the Africa and Middle East
regions.
Depreciation and amortization expense increased by $0.4 million
to $174.0 million, as compared to the three months ended December 31,
2015.
Interest expense, net consists of the interest expense we incur
together with gains and losses on interest rate swaps (which reflect net
interest accrued on the interest rate swaps as well as the change in
their fair value), offset by interest income earned and the amount of
interest we capitalize related to assets under construction. Interest
expense, net increased by $22.8 million, or 10.3 percent, to $243.6
million for the three months ended December 31, 2016, as compared to
$220.8 million in the three months ended December 31, 2015. The increase
was principally due to a net increase of $18.8 million in interest
expense largely resulting from a net increase in debt outstanding
resulting from our new debt issuances, which were offset by certain
repurchases and exchanges in 2016, and a net increase of $3.4 million
from lower capitalized interest for the three months ended December 31,
2016, primarily resulting from a decreased number of satellites and
related assets under construction.
The non-cash portion of total interest expense, net was $7.0 million for
the three months ended December 31, 2016, due to the amortization of
deferred financing fees and the accretion and amortization of discounts
and premiums.
Gain on early extinguishment of debt was $679.1 million for the
three months ended December 31, 2016, as compared to a gain of $7.1
million for the three months ended December 31, 2015. The gains were
related to certain debt transactions that occurred during the respective
fourth quarters of each year. The gains on early extinguishment of debt
consisted of the difference between the carrying value of the debt
redeemed or exchanged and the fair value of the debt issued, if
applicable, and the total cash amount paid (including related fees),
together with a write-off of unamortized debt issuance costs.
Other expense, net was $1.0 million for the three months ended
December 31, 2016, as compared to other income, net of $1.6 million for
the three months ended December 31, 2015. The decrease of $2.6 million
was primarily due to a decline in expenses mainly related to our
business conducted in Brazilian reais.
Provision for income taxes was $4.4 million for the three months
ended December 31, 2016, as compared to $6.1 million for the three
months ended December 31, 2015. The difference was principally due to
lower tax expense in our foreign operations in the three months ended
December 31, 2016 as compared to the same period in 2015. Cash paid for
income taxes, net of refunds, totaled $4.7 million for the three
months ended December 31, 2016, as compared to $3.8 million for the
three months ended December 31, 2015.
Net Income, Net Income per Diluted Common Share attributable to
Intelsat S.A., EBITDA and Adjusted EBITDA
Net income attributable to Intelsat S.A. was $662.8 million for
the three months ended December 31, 2016, compared to a loss of $4,116.3
million for the same period in 2015.
Net income per diluted common share attributable to Intelsat S.A.
was $5.56 for the three months ended December 31, 2016, compared to a
loss of $38.29 per diluted common share for the same period in 2015.
EBITDA was $406.7 million for the three months ended December 31,
2016, compared to a loss of $3,721.9 million for the same period in 2015.
Adjusted EBITDA was $417.4 million for the three months ended
December 31, 2016, or 76 percent of revenue, compared to $452.5 million,
or 79 percent of revenue, for the same period in 2015.
Intelsat management has reviewed the data pertaining to the use of the
Intelsat network, and is providing revenue information with respect to
that use by customer set and service type in the following tables.
Intelsat management believes this provides a useful perspective on the
changes in revenue and customer trends over time.
|
| |
| |
| |
| |
By Customer Set | | | | | | | | |
($ in thousands)
| | | | | | | | |
| | Three Months Ended | | Three Months Ended |
| | December 31, | | December 31, |
| | 2015 | | 2016 |
| | | | | | | |
|
Network Services | |
$
|
245,441
| |
43%
| |
$
|
221,947
| |
40%
|
Media | | |
219,013
| |
38%
| | |
228,353
| |
42%
|
Government | | |
100,226
| |
18%
| | |
93,211
| |
17%
|
Other | |
|
6,579
| |
1%
| |
|
7,183
| |
1%
|
| |
$
|
571,259
| |
100%
| |
$
|
550,694
| |
100%
|
| | | | | | | |
|
| | | | | | | |
|
By Service Type | | | | | | | | |
| | Three Months Ended | | Three Months Ended |
| | December 31, | | December 31, |
| | 2015 | | 2016 |
On-Network Revenues | | | | | | | | |
Transponder services
| |
$
|
411,026
| |
72%
| |
$
|
397,924
| |
72%
|
Managed services
| | |
103,699
| |
18%
| | |
104,288
| |
19%
|
Channel services
| |
|
3,585
| |
1%
| |
|
1,934
| |
0%
|
Total on-network revenues
| | |
518,310
| |
91%
| | |
504,146
| |
92%
|
Off-Network and Other Revenues | | | | | | | | |
Transponder, MSS and other off-network services
| | |
42,901
| |
8%
| | |
35,770
| |
6%
|
Satellite-related services
| |
|
10,048
| |
2%
| |
|
10,778
| |
2%
|
Total off-network and other revenues
| |
|
52,949
| |
9%
| |
|
46,548
| |
8%
|
Total | |
$
|
571,259
| |
100%
| |
$
|
550,694
| |
100%
|
| | | | | | | |
|
Free Cash Flow From (Used in) Operations
Free cash flow from (used in) operations1 was $6.6 million
for the three months ended December 31, 2016. Free cash flow from (used
in) operations is defined as net cash provided by operating activities,
less payments for satellites and other property and equipment (including
capitalized interest). Payments for satellites and other property and
equipment from investing activities during the three months ended
December 31, 2016 was $94.1 million.
Financial Outlook 2017
Today, Intelsat issued its 2017 financial outlook, in which the company
expects the following:
Revenue: Intelsat forecasts full-year 2017 revenue to be in a
range of $2.180 billion to $2.225 billion. Revenue performance reflects:
-
An increase of 3 to 5 percent in our media business.
-
Flat to a decline of 3 percent in our network services business.
-
A decline of 7 to 9 percent in our government business.
Adjusted EBITDA: Intelsat forecasts Adjusted EBITDA performance
for the full-year 2017 to be in a range of $1.655 billion to $1.700
billion.
Cash Taxes: Annual 2017 cash taxes are expected to total
approximately $30 million to $35 million.
Capital Expenditures: In light of the proposed merger with
OneWeb, we will defer providing guidance on capital expenditures prior
to the completion of the transaction. We anticipate that, assuming
completion of the merger, there will be capital expenditure reductions
as a result of combining our two fleets that are achievable in the mid-
to long-term. A thorough technical and business evaluation will be
completed to quantify these synergies; also taking into account new
technologies that we believe will surface in the ecosystem.
1In this release, financial measures are presented both in
accordance with U.S. GAAP and also on a non-U.S. GAAP basis. EBITDA,
Adjusted EBITDA (or “AEBITDA”), free cash flow from (used in) operations
and related margins included in this release are non-U.S. GAAP financial
measures. Please see the consolidated financial information below for
information reconciling non-U.S. GAAP financial measures to comparable
U.S. GAAP financial measures.
Q4 and Full-Year 2016 Quarterly Commentary
Intelsat provides a detailed quarterly commentary on the Company’s
business trends and performance. Please visit www.intelsat.com/investors
for management’s commentary on the Company’s progress against its
operational priorities and financial outlook.
Conference Call Information
Intelsat management will hold a public conference call at 8:30 a.m. ET
on Tuesday, February 28, 2017 to discuss the OneWeb transaction and the
Company’s fourth quarter and full-year financial results for the period
ended December 31, 2016. Access to the live conference call will also be
available via the Internet at www.intelsat.com/investors.
To participate on the live call, participants should dial +1
844-834-1428 from North America, and +1 920-663-6274 from all other
locations. The participant pass code is 48970325.
Participants will have access to a replay of the conference call through
March 7, 2017. The replay number for North America is +1 855-859-2056,
and for all other locations is +1 404-537-3406. The participant pass
code for the replay is 48970325.
About Intelsat
Intelsat S.A. (NYSE: I) operates the world’s first Globalized Network,
delivering high-quality, cost-effective video and broadband services
anywhere in the world. Intelsat’s Globalized Network combines the
world’s largest satellite backbone with terrestrial infrastructure,
managed services and an open, interoperable architecture to enable
customers to drive revenue and reach through a new generation of network
services. Thousands of organizations serving billions of people
worldwide rely on Intelsat to provide ubiquitous broadband connectivity,
multi-format video broadcasting, secure satellite communications and
seamless mobility services. The end result is an entirely new world, one
that allows us to envision the impossible, connect without boundaries
and transform the ways in which we live. For more information, visit www.intelsat.com.
Intelsat Safe Harbor Statement:
Some of the information and statements contained in this earnings
release and certain oral statements made from time to time by
representatives of Intelsat constitute "forward-looking statements" that
do not directly or exclusively relate to historical facts. When used in
this earnings release, the words “may,” “will,” “might,” “should,”
“expect,” “plan,” “anticipate,” “project,” “believe,” “estimate,”
“predict,” “intend,” “potential,” “outlook,” and “continue,” and the
negative of these terms, and other similar expressions are intended to
identify forward-looking statements and information. Forward-looking
statements include: our statements regarding certain plans,
expectations, goals, projections, and beliefs about the benefits of the
proposed merger and investment transactions, the transactions parties’
plans, objectives, expectations and intentions, and the expected timing
of completion of the proposed transactions; our expectation that the
launches of our satellites in the future will position us for growth;
our plans for satellite launches in the near to mid-term; our guidance
regarding our expectations for our revenue performance and Adjusted
EBITDA performance; our capital expenditure guidance over the next
several years; our belief that the scale of our fleet can reduce the
financial impact of satellite or launch failures and protect against
service interruptions; our belief that the diversity of our revenue and
customer base allow us to recognize trends across regions and capture
new growth opportunities; our expectation that developing differentiated
services and investing in new technology will allow us to unlock
essential opportunities; our expectations as to the increased number of
transponder equivalents on our fleet over the next several years; and
our expectations as to the level of our cash tax payments in the future.
The forward-looking statements reflect Intelsat's intentions, plans,
expectations, anticipations, projections, estimations, predictions,
outlook, assumptions and beliefs about future events and are subject to
risks, uncertainties and other factors, many of which are outside of
Intelsat's control. Important factors that could cause actual results to
differ materially from the expectations expressed or implied in the
forward-looking statements include known and unknown risks. Some of the
factors that could cause actual results to differ from historical
results or those anticipated or predicted by these forward-looking
statements include: risks associated with operating our in-orbit
satellites; satellite anomalies, launch failures, satellite launch and
construction delays and in-orbit failures or reduced performance;
potential changes in the number of companies offering commercial
satellite launch services and the number of commercial satellite launch
opportunities available in any given time period that could impact our
ability to timely schedule future launches and the prices we pay for
such launches; our ability to obtain new satellite insurance policies
with financially viable insurance carriers on commercially reasonable
terms or at all, as well as the ability of our insurance carriers to
fulfill their obligations; possible future losses on satellites that are
not adequately covered by insurance; U.S. and other government
regulation; changes in our contracted backlog or expected contracted
backlog for future services; pricing pressure and overcapacity in the
markets in which we compete; our ability to access capital markets for
debt or equity; the competitive environment in which we operate;
customer defaults on their obligations to us; our international
operations and other uncertainties associated with doing business
internationally; and litigation. Known risks include, among others, the
risks described in Intelsat’s annual report on Form 20-F for the year
ended December 31, 2016, and its other filings with the U.S. Securities
and Exchange Commission, the political, economic and legal conditions in
the markets we are targeting for communications services or in which we
operate and other risks and uncertainties inherent in the
telecommunications business in general and the satellite communications
business in particular.
Because actual results could differ materially from Intelsat's
intentions, plans, expectations, anticipations, projections,
estimations, predictions, outlook, assumptions and beliefs about the
future, you are urged to view all forward-looking statements with
caution. Intelsat does not undertake any obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise.
|
| |
| | |
INTELSAT S.A. | |
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |
($ in thousands, except per share amounts) | |
| | | | |
|
| | Three Months | | Three Months | |
| | Ended | | Ended | |
| | December 31, | | December 31, | |
| | 2015 | | 2016 | |
Revenue
| |
$
|
571,259
| | |
$
|
550,694
| | |
Operating expenses:
| | | | | |
Direct costs of revenue (excluding depreciation and amortization)
| | |
85,163
| | | |
86,813
| | |
Selling, general and administrative
| | |
44,152
| | | |
56,153
| | |
Impairement of Goodwill and other Intangibles
| | |
4,165,400
| | | |
-
| | |
Depreciation and amortization
| |
|
173,667
|
| |
|
174,023
|
| |
Total operating expenses
| |
|
4,468,382
|
| |
|
316,989
|
| |
| | | | |
|
Income (loss) from operations
| | |
(3,897,123
|
)
| | |
233,705
| | |
Interest expense, net
| | |
220,751
| | | |
243,565
| | |
Gain on early extinguishment of debt
| | |
7,061
| | | |
679,130
| | |
Other income (expense), net
| |
|
1,592
|
| |
|
(1,018
|
)
| |
Income (loss) before income taxes
| | |
(4,109,221
|
)
| | |
668,252
| | |
Provision for income taxes
| |
|
6,100
|
| |
|
4,449
|
| |
Net income (loss)
| | |
(4,115,321
|
)
| | |
663,803
| | |
Net income attributable to noncontrolling interest
| |
|
(985
|
)
| |
|
(983
|
)
| |
Net income (loss) attributable to Intelsat S.A.
| |
$
|
(4,116,306
|
)
| |
$
|
662,820
|
| |
| | | | |
|
| | | | |
|
Net income per common share attributable to Intelsat S.A.:
| | | | | |
Basic
| |
$
|
(38.29
|
)
| |
$
|
5.62
| | |
Diluted
| |
$
|
(38.29
|
)
| |
$
|
5.56
| | |
| | | | | | | | |
|
|
| |
| | |
INTELSAT S.A. | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |
($ in thousands, except per share amounts) | |
| | | | |
|
| | Year Ended | | Year Ended | |
| | December 31, | | December 31, | |
| | 2015 | | 2016 | |
| | | | |
|
Revenue
| |
$
|
2,352,521
| | |
$
|
2,188,047
| | |
Operating expenses:
| | | | | |
Direct costs of revenue (excluding depreciation and amortization)
| | |
328,501
| | | |
341,147
| | |
Selling, general and administrative
| | |
199,412
| | | |
231,397
| | |
Impairment of goodwill and other intangibles
| | |
4,165,400
| | | |
-
| | |
Depreciation and amortization
| |
|
687,729
|
| |
|
694,891
|
| |
Total operating expenses
| |
|
5,381,042
|
| |
|
1,267,435
|
| |
Income (loss) from operations
| | |
(3,028,521
|
)
| | |
920,612
| | |
Interest expense, net
| | |
890,279
| | | |
938,501
| | |
Gain (loss) on early extinguishment of debt
| | |
7,061
| | | |
1,030,092
| | |
Other expense, net
| |
|
(6,201
|
)
| |
|
(2,105
|
)
| |
Income (loss) before income taxes
| | |
(3,917,940
|
)
| | |
1,010,098
| | |
Provision for income taxes
| |
|
1,513
|
| |
|
15,986
|
| |
Net income (loss)
| | |
(3,919,453
|
)
| | |
994,112
| | |
Net income attributable to noncontrolling interest
| |
|
(3,934
|
)
| |
|
(3,915
|
)
| |
Net income (loss) attributable to Intelsat S.A.
| |
$
|
(3,923,387
|
)
| |
$
|
990,197
|
| |
Cumulative preferred dividends
| |
|
(9,919
|
)
| |
|
-
|
| |
Net income (loss) attributable to common shareholders
| |
$
|
(3,933,306
|
)
| |
$
|
990,197
|
| |
| | | | |
|
Net income (loss) per common share attributable to Intelsat S.A.:
| | | | | |
Basic
| |
$
|
(36.68
|
)
| |
$
|
8.65
| | |
Diluted
| |
$
|
(36.68
|
)
| |
$
|
8.36
| | |
| | | | | | | | |
|
|
| |
| |
| |
| | |
INTELSAT S.A. | |
UNAUDITED RECONCILIATION OF NET INCOME TO EBITDA | |
($ in thousands) | |
| | | | | | | | |
|
| | Three Months | | Three Months | | | | | |
| | Ended | | Ended | | Year Ended | | Year Ended | |
| | December 31, | | December 31, | | December 31, | | December 31, | |
| | 2015 | | 2016 | | 2015 | | 2016 | |
Net income (Loss)
| |
$
|
(4,115,321
|
)
| |
$
|
663,803
| | |
$
|
(3,919,453
|
)
| |
$
|
994,112
| | |
Add (Subtract):
| | | | | | | | | |
Interest expense, net
| | |
220,751
| | | |
243,565
| | | |
890,279
| | | |
938,501
| | |
Gain on early extinguishment of debt
| | |
(7,061
|
)
| | |
(679,130
|
)
| | |
(7,061
|
)
| | |
(1,030,092
|
)
| |
Provision for income taxes
| | |
6,100
| | | |
4,449
| | | |
1,513
| | | |
15,986
| | |
Depreciation and amortization
| |
|
173,667
|
| |
|
174,023
|
| |
|
687,729
|
| |
|
694,891
|
| |
EBITDA
| |
$
|
(3,721,864
|
)
| |
$
|
406,710
|
| |
$
|
(2,346,993
|
)
| |
$
|
1,613,398
|
| |
| | | | | | | | |
|
| | | | | | | | |
|
EBITDA Margin
| | |
NM
| | | |
74
|
%
| | |
NM
| | | |
74
|
%
| |
| | | | | | | | | | | | | | | | |
|
Note:
Intelsat calculates a measure called EBITDA to assess the operating
performance of Intelsat S.A. EBITDA consists of earnings before net
interest, gain on early extinguishment of debt, taxes and depreciation
and amortization. Given our high level of leverage, refinancing
activities are a frequent part of our efforts to manage our costs of
borrowing. Accordingly, we consider gain on early extinguishment of debt
an element of interest expense. EBITDA is a measure commonly used in the
Fixed Satellite Services (“FSS”) sector, and we present EBITDA to
enhance the understanding of our operating performance. We use EBITDA as
one criterion for evaluating our performance relative to that of our
peers. We believe that EBITDA is an operating performance measure, and
not a liquidity measure, that provides investors and financial analysts
with a measure of operating results unaffected by differences in capital
structures, capital investment cycles and ages of related assets among
otherwise comparable companies.
EBITDA is not a measure of financial performance under U.S. GAAP, and
our EBITDA may not be comparable to similarly titled measures of other
companies. EBITDA should not be considered as an alternative to
operating income (loss) or net income (loss), determined in accordance
with U.S. GAAP, as an indicator of our operating performance, or as an
alternative to cash flows from operating activities, determined in
accordance with U.S. GAAP, as an indicator of cash flows, or as a
measure of liquidity.
|
| |
| |
| |
| | |
INTELSAT S.A. | |
UNAUDITED RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA | |
($ in thousands) | |
| | | | | | | | |
|
| | Three Months | | Three Months | | | | | |
| | Ended | | Ended | | Year Ended | | Year Ended | |
| | December 31, | | December 31, | | December 31, | | December 31, | |
| | 2015 | | 2016 | | 2015 | | 2016 | |
Net income (Loss)
| |
$
|
(4,115,321
|
)
| |
$
|
663,803
|
| |
$
|
(3,919,453
|
)
| |
$
|
994,112
|
| |
Add (Subtract):
| | | | | | | | | |
Interest expense, net
| | |
220,751
| | | |
243,565
| | | |
890,279
| | | |
938,501
| | |
Gain on early extinguishment of debt
| | |
(7,061
|
)
| | |
(679,130
|
)
| | |
(7,061
|
)
| | |
(1,030,092
|
)
| |
Provision for income taxes
| | |
6,100
| | | |
4,449
| | | |
1,513
| | | |
15,986
| | |
Depreciation and amortization
| |
|
173,667
|
| |
|
174,023
|
| |
|
687,729
|
| |
|
694,891
|
| |
EBITDA
| |
|
(3,721,864
|
)
| |
|
406,710
|
| |
|
(2,346,993
|
)
| |
|
1,613,398
|
| |
Add (Subtract):
| | | | | | | | | |
Compensation and benefits
| | |
4,710
| | | |
5,194
| | | |
26,235
| | | |
23,222
| | |
Non-recurring and other non-cash items
| | |
4,258
| | | |
5,486
| | | |
9,877
| | | |
14,050
| | |
Impairement of goodwill and other intangibles
| |
|
4,165,400
|
| |
|
-
|
| |
|
4,165,400
|
| |
|
-
|
| |
Adjusted EBITDA
| |
$
|
452,504
|
| |
$
|
417,390
|
| |
$
|
1,854,519
|
| |
$
|
1,650,670
|
| |
| | | | | | | | |
|
| | | | | | | | |
|
Adjusted EBITDA Margin
| | |
79
|
%
| | |
76
|
%
| | |
79
|
%
| | |
75
|
%
| |
| | | | | | | | | | | | | | | | |
|
Note:
Intelsat calculates a measure called Adjusted EBITDA to assess the
operating performance of Intelsat S.A. Adjusted EBITDA consists of
EBITDA as adjusted to exclude or include certain unusual items, certain
other operating expense items and certain other adjustments as described
in the table above. Our management believes that the presentation of
Adjusted EBITDA provides useful information to investors, lenders and
financial analysts regarding our financial condition and results of
operations, because it permits clearer comparability of our operating
performance between periods. By excluding the potential volatility
related to the timing and extent of non-operating activities, our
management believes that Adjusted EBITDA provides a useful means of
evaluating the success of our operating activities. We also use Adjusted
EBITDA, together with other appropriate metrics, to set goals for and
measure the operating performance of our business, and it is one of the
principal measures we use to evaluate our management’s performance in
determining compensation under our incentive compensation plans.
Adjusted EBITDA measures have been used historically by investors,
lenders and financial analysts to estimate the value of a company, to
make informed investment decisions and to evaluate performance. Our
management believes that the inclusion of Adjusted EBITDA facilitates
comparison of our results with those of companies having different
capital structures.
Adjusted EBITDA is not a measure of financial performance under U.S.
GAAP, and our Adjusted EBITDA may not be comparable to similarly titled
measures of other companies. Adjusted EBITDA should not be considered as
an alternative to operating income (loss) or net income (loss),
determined in accordance with U.S. GAAP, as an indicator of our
operating performance, or as an alternative to cash flows from operating
activities, determined in accordance with U.S. GAAP, as an indicator of
cash flows, or as a measure of liquidity.
|
| |
| | |
INTELSAT S.A. | |
CONSOLIDATED BALANCE SHEETS | |
($ in thousands, except per share amounts) | |
| | | | |
|
| | As of | | As of | |
| | December 31, | | December 31, | |
| | 2015 | | 2016 | |
| | | | |
|
ASSETS | | | | | |
Current assets:
| | | | | |
Cash and cash equivalents
| |
$
|
171,541
| | |
$
|
666,024
| | |
Receivables, net of allowance of $37,178 in 2015 and $54,744 in 2016
| | |
232,775
| | | |
203,036
| | |
Prepaid expenses and other current assets
| |
|
35,784
|
| |
|
55,908
|
| |
Total current assets
| | |
440,100
| | | |
924,968
| | |
Satellites and other property and equipment, net
| | |
5,988,317
| | | |
6,185,842
| | |
Goodwill
| | |
2,620,627
| | | |
2,620,627
| | |
Non-amortizable intangible assets
| | |
2,452,900
| | | |
2,452,900
| | |
Amortizable intangible assets, net
| | |
440,330
| | | |
391,838
| | |
Other assets
| |
|
311,316
|
| |
|
365,834
|
| |
Total assets
| |
$
|
12,253,590
|
| |
$
|
12,942,009
|
| |
| | | | |
|
LIABILITIES AND SHAREHOLDERS' DEFICIT | | | | | |
Current liabilities:
| | | | | |
Accounts payable and accrued liabilities
| |
$
|
164,381
| | |
$
|
215,987
| | |
Taxes payable
| | |
11,742
| | | |
16,733
| | |
Employee related liabilities
| | |
35,361
| | | |
50,178
| | |
Accrued interest payable
| | |
161,493
| | | |
204,840
| | |
Deferred satellite performance incentives
| | |
19,411
| | | |
23,455
| | |
Deferred revenue
| | |
108,779
| | | |
157,684
| | |
Other current liabilities
| |
|
63,275
|
| |
|
64,786
|
| |
Total current liabilities
| | |
564,442
| | | |
733,663
| | |
Long-term debt, net of current portion
| | |
14,611,379
| | | |
14,198,084
| | |
Deferred satellite performance incentives, net of current portion
| | |
162,177
| | | |
210,706
| | |
Deferred revenue, net of current portion
| | |
1,010,242
| | | |
906,744
| | |
Deferred income taxes
| | |
160,802
| | | |
168,445
| | |
Accrued retirement benefits
| | |
195,385
| | | |
186,284
| | |
Other long-term liabilities
| | |
169,516
| | | |
148,081
| | |
Commitments and contingencies
| | | | | |
| | | | |
|
Shareholders' deficit:
| | | | | |
Common shares; nominal value $0.01 per share
| | |
1,076
| | | |
1,180
| | |
| | | | | | | | |
|
5.75% Series A mandatory convertible junior non-voting preferred
shares; nominal value $0.01 per share; aggregate liquidation
preference of $172,500 ($50 per share)
| | |
35
| | | |
-
| | |
Paid-in capital
| | |
2,133,891
| | | |
2,156,911
| | |
Accumulated deficit
| | |
(6,706,128
|
)
| | |
(5,715,931
|
)
| |
Accumulated other comprehensive loss
| |
|
(78,439
|
)
| |
|
(76,305
|
)
| |
Total Intelsat S.A. shareholders' deficit
| | |
(4,649,565
|
)
| | |
(3,634,145
|
)
| |
Noncontrolling interest
| |
|
29,212
|
| |
|
24,147
|
| |
Total liabilities and shareholders' deficit
| |
$
|
12,253,590
|
| |
$
|
12,942,009
|
| |
| | | | |
|
|
| |
| | |
INTELSAT S.A. | |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |
($ in thousands) | |
| | | | |
|
| | Three Months | | Three Months | |
| | Ended | | Ended | |
| | December 31, | | December 31, | |
| | 2015 | | 2016 | |
Cash flows from operating activities: | | | | | |
Net income (loss)
| |
$
|
(4,115,321
|
)
| |
$
|
663,803
| | |
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
| | | | | |
Impairment of goodwill and other intangibles
| | |
4,165,400
| | | |
-
| | |
Depreciation and amortization
| | |
173,667
| | | |
174,023
| | |
Provision for doubtful accounts
| | |
(4,901
|
)
| | |
(1,562
|
)
| |
Foreign currency transaction (gain) loss
| | |
(593
|
)
| | |
841
| | |
Loss on disposal of assets
| | |
16
| | | |
20
| | |
Share-based compensation
| | |
4,710
| | | |
5,194
| | |
Deferred income taxes
| | |
(2,676
|
)
| | |
(1,225
|
)
| |
Amortization of discount, premium, issuance costs and related costs
| | |
5,071
| | | |
6,979
| | |
Gain on early extinguishment of debt
| | |
(7,061
|
)
| | |
(679,130
|
)
| |
Unrealized gains on derivative financial instruments
| | |
(6,649
|
)
| | |
-
| | |
Amortization of actuarial loss and prior service credits for
retirement benefits
| | |
1,286
| | | |
840
| | |
Other non-cash items
| | |
127
| | | |
19
| | |
Changes in operating assets and liabilities:
| | | | | |
Receivables
| | |
(3,362
|
)
| | |
11,043
| | |
Prepaid expenses and other assets
| | |
(18,992
|
)
| | |
(11,491
|
)
| |
Accounts payable and accrued liabilities
| | |
10,714
| | | |
39,231
| | |
Accrued interest payable
| | |
(149,906
|
)
| | |
(95,993
|
)
| |
Deferred revenue
| | |
(11,189
|
)
| | |
(21,279
|
)
| |
Accrued retirement benefits
| | |
(956
|
)
| | |
(2,237
|
)
| |
Other long-term liabilities
| |
|
(939
|
)
| |
|
(1,565
|
)
| |
Net cash provided by operating activities
| |
|
38,446
|
| |
|
87,511
|
| |
Cash flows from investing activities: | | | | | |
Payments for satellites and other property and equipment (including
capitalized interest)
| | |
(172,638
|
)
| | |
(94,099
|
)
| |
Capital contributions to unconsolidated affiliates
| | |
-
| | | |
(4,850
|
)
| |
Other investing activities
| |
|
-
|
| |
|
(491
|
)
| |
Net cash used in investing activities
| |
|
(172,638
|
)
| |
|
(99,440
|
)
| |
Cash flows from financing activities: | | | | | |
Repayments of long-term debt
| | |
(17,829
|
)
| | |
(375
|
)
| |
Payment of premium on early extinguishment of debt
| | |
-
| | | |
(32
|
)
| |
Debt issuance costs
| | |
-
| | | |
(12,584
|
)
| |
Payments on tender, debt exchange and consent
| | |
-
| | | |
(259,267
|
)
| |
Dividends paid to preferred shareholders
| | |
(2,480
|
)
| | |
-
| | |
Principal payments on deferred satellite performance incentives
| | |
(5,901
|
)
| | |
(4,695
|
)
| |
Dividends paid to noncontrolling interest
| | |
(1,701
|
)
| | |
(2,215
|
)
| |
Other financing activities
| |
|
3,200
|
| |
|
-
|
| |
Net cash used in financing activities
| |
|
(24,711
|
)
| |
|
(279,168
|
)
| |
Effect of exchange rate changes on cash and cash equivalents
| |
|
2,670
|
| |
|
(746
|
)
| |
Net change in cash and cash equivalents
| | |
(156,233
|
)
| | |
(291,843
|
)
| |
Cash and cash equivalents, beginning of period
| |
|
327,774
|
| |
|
957,867
|
| |
Cash and cash equivalents, end of period
| |
$
|
171,541
|
| |
$
|
666,024
|
| |
| | | | |
|
Supplemental cash flow information: | | | | | |
Interest paid, net of amounts capitalized
| |
$
|
372,395
| | |
$
|
333,057
| | |
Income taxes paid, net of refunds
| | |
3,789
| | | |
4,707
| | |
Supplemental disclosure of non-cash investing activities: | | | | | |
Accrued capital expenditures and payments for satellites
| |
$
|
66,228
| | |
$
|
62,673
| | |
Capitalization of deferred satellite performance incentives
| | |
16,800
| | | |
-
| | |
Supplemental disclosure of non-cash financing activities: | | | | | |
Repayments of long-term debt
| |
$
|
-
| | |
$
|
1,468,401
| | |
Issuance of long-term debt
| | |
-
| | | |
(731,884
|
)
| |
Discount on long-term debt
| | |
-
| | | |
212,660
| | |
Write-off of debt issuance costs
| | |
-
| | | |
(9,253
|
)
| |
| | | | | | | | |
|
|
| |
| |
INTELSAT S.A. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
($ in thousands) |
| | | |
|
| | Year Ended | | Year Ended |
| | December 31, | | December 31, |
| | 2015 |
| 2016 |
Cash flows from operating activities: | | | | |
Net income (loss)
| |
$
|
(3,919,453
|
)
| |
$
|
994,112
| |
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
| | | | |
Impairment of goodwill and other intangibles
| | |
4,165,400
| | | |
-
| |
Depreciation and amortization
| | |
687,729
| | | |
694,891
| |
Provision for doubtful accounts
| | |
7,432
| | | |
24,591
| |
Foreign currency transaction (gain) loss
| | |
11,374
| | | |
(3,300
|
)
|
Loss on disposal of assets
| | |
16
| | | |
20
| |
Share-based compensation
| | |
25,768
| | | |
23,222
| |
Deferred income taxes
| | |
(9,348
|
)
| | |
(9,737
|
)
|
Amortization of discount, premium, issuance costs and related costs
| | |
20,119
| | | |
24,622
| |
(Gain) on early extinguishment of debt
| | |
(7,061
|
)
| | |
(1,030,092
|
)
|
Unrealized gains on derivative financial instruments
| | |
(24,024
|
)
| | |
(764
|
)
|
Amortization of actuarial loss and prior service credits for
retirement benefits
| | |
7,899
| | | |
3,361
| |
Other non-cash items
| | |
75
| | | |
1,186
| |
Changes in operating assets and liabilities:
| | | | |
Receivables
| | |
(34,642
|
)
| | |
6,478
| |
Prepaid expenses and other assets
| | |
(25,780
|
)
| | |
(51,321
|
)
|
Accounts payable and accrued liabilities
| | |
1,542
| | | |
35,850
| |
Accrued interest payable
| | |
(2
|
)
| | |
47,065
| |
Deferred revenue
| | |
51,805
| | | |
(58,796
|
)
|
Accrued retirement benefits
| | |
(20,707
|
)
| | |
(9,385
|
)
|
Other long-term liabilities
| |
|
(28,111
|
)
| |
|
(8,497
|
)
|
Net cash provided by operating activities
| |
|
910,031
|
| |
|
683,506
|
|
Cash flows from investing activities: | | | | |
Payments for satellites and other property and equipment (including
capitalized interest)
| | |
(724,362
|
)
| | |
(714,570
|
)
|
Purchase of cost method investments
| | |
(25,000
|
)
| | |
(4,000
|
)
|
Capital contribution to unconsolidated affiliates
| | |
-
| | | |
(10,340
|
)
|
Other investing activities
| |
|
8
|
| |
|
(1,679
|
)
|
Net cash used in investing activities
| |
|
(749,354
|
)
| |
|
(730,589
|
)
|
Cash flows from financing activities: | | | | |
Proceeds from issuance of long-term debt
| | |
430,000
| | | |
1,250,000
| |
Repayments of long-term debt
| | |
(496,829
|
)
| | |
(328,944
|
)
|
Debt issuance costs
| | |
-
| | | |
(38,393
|
)
|
Payment of premium on early extinguishment of debt
| | |
-
| | | |
(32
|
)
|
Payments on tender, debt exchange and consent
| | |
-
| | | |
(293,276
|
)
|
Dividends paid to preferred shareholders
| | |
(9,919
|
)
| | |
(4,959
|
)
|
Other payments for satellites
| | |
-
| | | |
(18,333
|
)
|
Principal payments on deferred satellite performance incentives
| | |
(19,568
|
)
| | |
(17,429
|
)
|
Dividends paid to noncontrolling interest
| | |
(8,423
|
)
| | |
(8,980
|
)
|
Other financing activities
| |
|
1,753
|
| |
|
1,942
|
|
Net cash provided by (used in) financing activities
| |
|
(102,986
|
)
| |
|
541,596
|
|
Effect of exchange rate changes on cash and cash equivalents
| |
|
(9,297
|
)
| |
|
(30
|
)
|
Net change in cash and cash equivalents
| | |
48,394
| | | |
494,483
| |
Cash and cash equivalents, beginning of period
| |
|
123,147
|
| |
|
171,541
|
|
Cash and cash equivalents, end of period
| |
$
|
171,541
|
| |
$
|
666,024
|
|
| | | |
|
Supplemental cash flow information: | | | | |
Interest paid, net of amounts capitalized
| |
$
|
894,465
| | |
$
|
870,370
| |
Income taxes paid, net of refunds
| | |
26,324
| | | |
22,687
| |
Supplemental disclosure of non-cash investing activities: | | | | |
Accrued capital expenditures and payments for satellites
| |
$
|
82,208
| | |
$
|
127,008
| |
Capitalization of deferred satellite performance incentives
| | |
16,800
| | | |
69,909
| |
Supplemental disclosure of non-cash financing activities: | | | | |
Debt financing and restricted cash received
| |
$
|
-
| | |
$
|
480,200
| |
Restricted cash used
| | |
-
| | | |
(480,200
|
)
|
Repayment of long-term debt
| | |
-
| | | |
1,468,401
| |
Issuance of long-term debt
| | |
-
| | | |
(731,884
|
)
|
Discount on long-term debt
| | |
-
| | | |
212,660
| |
Write-off of debt issuance costs
| | |
-
| | | |
(9,253
|
)
|
| | | | | | | |
|
|
| |
| |
| |
| | |
INTELSAT S.A. | |
UNAUDITED RECONCILIATION OF NET CASH PROVIDED BY OPERATING
ACTIVITIES | |
TO FREE CASH FLOW FROM (USED IN) OPERATIONS | |
($ in thousands) | |
| | | | | | | | |
|
| | Three Months | | Three Months | | | | | |
| | Ended | | Ended | | Year Ended | | Year Ended | |
| | December 31, | | December 31, | | December 31, | | December 31, | |
| | 2015 | | 2016 | | 2015 | | 2016 | |
| | | | | | | | |
|
Net cash provided by operating activities
| |
$
|
38,446
| | |
$
|
87,511
| | |
$
|
910,031
| | |
$
|
683,506
| | |
Payments for satellites and other property and
equipment (including capitalized interest)
| | |
(172,638
|
)
| | |
(94,099
|
)
| | |
(724,362
|
)
| | |
(714,570
|
)
| |
Other payments for satellites from financing activities
| |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
(18,333
|
)
| |
Free cash flow from (used in) operations
| |
$
|
(134,192
|
)
| |
$
|
(6,588
|
)
| |
$
|
185,669
|
| |
$
|
(49,397
|
)
| |
| | | | | | | | | | | | | | | | |
|
Note:
Free cash flow from (used in) operations consists of net cash provided
by operating activities, less payments for satellites and other property
and equipment (including capitalized interest) from investing activities
and other payment for satellites from financing activities. Free cash
flow from (used in) operations is not a measurement of cash flow under
U.S. GAAP. Intelsat believes free cash flow from (used in) operations is
a useful measure of financial performance that shows a company’s ability
to fund its operations. Free cash flow from (used in) operations is used
by Intelsat in comparing its performance to that of its peers and is
commonly used by financial analysts and investors in assessing
performance. Free cash flow from (used in) operations does not give
effect to cash used for debt service requirements and thus does not
reflect funds available for investment or other discretionary uses. Free
cash flow from (used in) operations is not a measure of financial
performance under U.S. GAAP, and free cash flow from (used in)
operations may not be comparable to similarly titled measures of other
companies. You should not consider free cash flow from (used in)
operations as an alternative to operating income (loss) or net income
(loss), determined in accordance with U.S. GAAP, as an indicator of
Intelsat’s operating performance, or as an alternative to cash flows
from operating activities, determined in accordance with U.S. GAAP, as
an indicator of cash flows, or as a measure of liquidity.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170228005725/en/
Contacts:
Intelsat
Dianne VanBeber, +1 703-559-7406
Vice President,
Investor Relations and Corporate Communications
dianne.vanbeber@intelsat.com
Source: Intelsat
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