EX-99.1 5 pressreleaseq12023-exx991.htm EX-99.1 Document
Exhibit 99.1

EchoStar Announces Financial Results for the Three Months Ended March 31, 2023

Englewood, CO, May 8, 2023—EchoStar Corporation (Nasdaq: SATS) announced its financial results for the three months ended March 31, 2023.

Three Months Ended March 31, 2023 Financial Highlights:

•Consolidated revenue of $439.6 million.
•Net income of $27.8 million, consolidated net income attributable to EchoStar common stock of $29.0 million, and basic and diluted earnings per share of common stock of $0.35.
•Consolidated Adjusted EBITDA of $135.0 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below).

“In the first quarter of 2023, the EchoStar team performed as planned, with a focus on optimizing our existing assets and market opportunities efficiently,” said Hamid Akhavan, CEO and President of EchoStar. “The business continues to pursue new avenues of growth, laying the operational foundation to drive increased revenues once our upcoming EchoStar XXIV/JUPITER 3 satellite enters into service and taking tangible steps toward fulfilling our vision of a global 5G network in the S-band.”

Three Months Ended March 31, 2023 - Additional Information:

•Consolidated revenue decreased 12.3% or $61.9 million year over year. The decrease was driven by lower service revenues of $41.3 million partially due to fewer broadband customers. Equipment sales decreased $20.7 million, primarily due to lower sales to both domestic and international enterprise customers.
•Net income decreased $61.1 million year over year. The decrease was due to lower operating income of $16.8 million and an unfavorable change in investments of $87.8 million due to $80.7 million of gains that occurred in 2022. These items were partially offset by a favorable change in interest income of $22.2 million and lower net income tax expense of $21.3 million.
•Adjusted EBITDA decreased 18.6% or $30.9 million year over year.
◦Hughes segment Adjusted EBITDA decreased $30.1 million year over year. The decrease was driven primarily by lower service and equipment revenue, partially offset by lower sales and marketing expense for our broadband consumer business.
◦ESS segment Adjusted EBITDA increased $2.0 million year over year primarily due to higher revenue.
◦Corporate and Other segment Adjusted EBITDA decreased $2.7 million year over year. The decrease was primarily due to higher corporate expenses, partially offset by higher earnings of unconsolidated affiliates, net, of $0.4 million.
•Hughes broadband subscribers totaled approximately 1,177,000, declining 51,000 from December 31, 2022. Our current capacity limitations, increasing bandwidth usage by approximately 15% year on year on average by our existing U.S subscribers, and competitive pressures are impacting our consumer subscriber levels. In Latin America, subscriber levels were tempered by our focus on more profitable consumer segments and by our allocation of capacity to enterprise opportunities.
•For the three months ended March 31, 2023, approximately 37% of Hughes segment revenue was attributable to our enterprise customers, increasing from 36% in the same period last year.

•Cash, cash equivalents and current marketable investment securities were $1.7 billion as of March 31, 2023.
•The JUPITER 3/EchoStar XXIV satellite is currently expected to be shipped to the launch site in June and subsequently launched at the first window that SpaceX can allocate to it, which is subject to preemption by certain higher-priority government launches.
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Set forth below is a table highlighting certain of EchoStar’s segment results for the three months ended March 31, 2023 and 2022 (amounts in thousands) (all US GAAP amounts reference results from operations):
For the three months ended March 31,
 20232022
Revenue
Hughes
$431,195 $494,106 
EchoStar Satellite Services
5,997 $4,474 
Corporate and Other
2,405 $2,954 
Total revenue
$439,597 $501,534 
Net income (loss)$27,820 $88,945 
Adjusted EBITDA
Hughes
$154,164 $184,287 
EchoStar Satellite Services
4,655 $2,691 
Corporate & Other
(23,832)$(21,089)
Total Adjusted EBITDA
$134,987 $165,889 
Expenditures for property and equipment, net of refunds and other receipts
$44,071 $112,138 

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Reconciliation of GAAP to Non-GAAP Measurement (amounts in thousands):
For the three months ended March 31,
20232022
Net income (loss)$27,820 $88,945 
Interest income, net(28,596)(6,422)
Interest expense, net of amounts capitalized13,286 14,973 
Income tax provision (benefit), net11,460 32,782 
Depreciation and amortization102,858 120,436 
Net loss (income) attributable to non-controlling interests1,221 2,488 
EBITDA
128,049 253,202 
(Gains) losses on investments, net
7,109 (80,686)
Impairment of long-lived assets3,142 — 
License fee dispute - India, net of non-controlling interests
— (233)
Foreign currency transaction (gains) losses, net
(3,313)(6,394)
Adjusted EBITDA
134,987 165,889 

Note on Use of Non-GAAP Financial Measures

EBITDA is defined as “Net income (loss)” excluding “Interest income, net,” “Interest expense, net of amounts capitalized,” “Income tax benefit (provision), net,” “Depreciation and amortization,” and “Net income (loss) attributable to non-controlling interests.”

Adjusted EBITDA is defined as EBITDA excluding Gains and losses on investments, net, Foreign currency transaction gains (losses), net, and other non-recurring or non-operational items.

EBITDA and Adjusted EBITDA are not measures determined in accordance with US GAAP. EBITDA and Adjusted EBITDA are reconciled to Net income (loss) in the table above and should not be considered in isolation or as a substitute for operating income, net income or any other measure determined in accordance with US GAAP. Our management uses EBITDA and Adjusted EBITDA as measures of our operating efficiency and overall financial performance for benchmarking against our peers and competitors.

Management believes that these non-GAAP measures provide meaningful supplemental information regarding the underlying operating performance of our business and are appropriate to enhance an overall understanding of our financial performance. Management also believes that EBITDA and Adjusted EBITDA are useful to investors because they are frequently used by securities analysts, investors, and other interested parties to evaluate the performance of companies in our industry.

The consolidated financial statements of EchoStar for the periods ended March 31, 2023 and 2022 are attached to this press release. Detailed financial data and other information are available in EchoStar’s Quarterly Report on Form 10-Q for the period ended March 31, 2023 filed today with the Securities and Exchange Commission.

EchoStar will host a conference call to discuss its earnings on Tuesday, May 9, 2023 at 8:30 a.m. Eastern Time. The conference call will be broadcast live in listen-only mode on EchoStar’s investor relations website at ir.echostar.com. To participate via telephone and ask a question, participants must register using an online form found at: https://register.vevent.com/register/BI60954a97734841e7aa2eaffe6e4ad436.

About EchoStar Corporation

EchoStar Corporation (Nasdaq: SATS) is a premier global provider of satellite communications solutions. Headquartered in Englewood, Colo., and conducting business around the globe, EchoStar is a pioneer in
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secure communications technologies through its Hughes Network Systems and EchoStar Satellite Services business segments.

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, 2022 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.

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Contact Information
EchoStar Investor Relations
EchoStar Media Relations
Samantha Whirley
Phone: +1 301-601-6451
Email: ir@echostar.com
Sharyn Nerenberg
Phone: +1 301-428-7124
Email: sharyn.nerenberg@echostar.com
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ECHOSTAR CORPORATION
Consolidated Balance Sheets
(Amounts in thousands, except share and per share amounts)
 As of
 March 31, 2023December 31, 2022
(unaudited)
Assets 
Current assets:  
Cash and cash equivalents$920,105 $704,541 
Marketable investment securities755,169 973,915 
Trade accounts receivable and contract assets, net251,871 236,479 
Other current assets, net252,596 210,446 
Total current assets2,179,741 2,125,381 
Non-current assets:  
Property and equipment, net2,175,861 2,237,617 
Operating lease right-of-use assets147,707 151,518 
Goodwill532,858 532,491 
Regulatory authorizations, net461,556 462,531 
Other intangible assets, net15,151 15,698 
Other investments, net364,954 356,705 
Other non-current assets, net315,960 317,062 
Total non-current assets4,014,047 4,073,622 
Total assets$6,193,788 $6,199,003 
Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable$85,772 $101,239 
Contract liabilities129,292 121,739 
Accrued expenses and other current liabilities163,109 199,853 
Total current liabilities378,173 422,831 
Non-current liabilities:
Long-term debt, net1,496,981 1,496,777 
Deferred tax liabilities, net430,957 424,621 
Operating lease liabilities131,881 135,932 
Other non-current liabilities112,534 119,787 
Total non-current liabilities2,172,353 2,177,117 
Total liabilities2,550,526 2,599,948 
Commitments and contingencies













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ECHOSTAR CORPORATION
Consolidated Balance Sheets
(Amounts in thousands, except share and per share amounts)


Stockholders' equity:  
Preferred stock, $0.001 par value, 20,000,000 shares authorized, none issued and outstanding at both March 31, 2023 and December 31, 2022
— — 
Common stock, $0.001 par value, 4,000,000,000 shares authorized:
Class A common stock, $0.001 par value, 1,600,000,000 shares authorized, 59,303,237 shares issued and 35,989,926 shares outstanding at March 31, 2023 and 58,604,927 shares issued and 35,291,616 shares outstanding at December 31, 2022
59 59 
Class B convertible common stock, $0.001 par value, 800,000,000 shares authorized, 47,687,039 shares issued and outstanding at both March 31, 2023 and December 31, 2022
48 48 
Class C convertible common stock, $0.001 par value, 800,000,000 shares authorized, none issued and outstanding at both March 31, 2023 and December 31, 2022
— — 
Class D common stock, $0.001 par value, 800,000,000 shares authorized, none issued and outstanding at both March 31, 2023 and December 31, 2022
— — 
Additional paid-in capital3,376,169 3,367,058 
Accumulated other comprehensive income (loss)(166,931)(172,239)
Accumulated earnings (losses)862,558 833,517 
Treasury shares, at cost, 23,313,311 at both March 31, 2023 and December 31, 2022
(525,824)(525,824)
Total EchoStar Corporation stockholders' equity3,546,079 3,502,619 
Non-controlling interests97,183 96,436 
Total stockholders' equity3,643,262 3,599,055 
Total liabilities and stockholders' equity$6,193,788 $6,199,003 
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ECHOSTAR CORPORATION
Consolidated Statements of Operations
(Amounts in thousands, except per share amounts)
(unaudited)

 For the three months ended March 31,
 20232022
Revenue:
Services and other revenue$377,527 $418,811 
Equipment revenue62,070 82,723 
Total revenue439,597 501,534 
Costs and expenses:
Cost of sales - services and other (exclusive of depreciation and amortization)135,372 141,129 
Cost of sales - equipment (exclusive of depreciation and amortization)51,662 69,114 
Selling, general and administrative expenses110,061 118,170 
Research and development expenses8,255 7,617 
Depreciation and amortization102,858 120,436 
Impairment of long-lived assets3,142 — 
Total costs and expenses411,350 456,466 
Operating income (loss)28,247 45,068 
Other income (expense):
Interest income, net28,596 6,422 
Interest expense, net of amounts capitalized(13,286)(14,973)
Gains (losses) on investments, net(7,109)80,686 
Equity in earnings (losses) of unconsolidated affiliates, net(551)(1,714)
Foreign currency transaction gains (losses), net3,313 6,394 
Other, net70 (156)
Total other income (expense), net11,033 76,659 
Income (loss) before income taxes39,280 121,727 
Income tax benefit (provision), net(11,460)(32,782)
Net income (loss)27,820 88,945 
Less: Net loss (income) attributable to non-controlling interests1,221 2,488 
Net income (loss) attributable to EchoStar Corporation common stock$29,041 $91,433 
Earnings (losses) per share:
Basic$0.35 $1.07 
Diluted$0.35 $1.06 
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ECHOSTAR CORPORATION
Consolidated Statements of Cash Flows
(Amounts in thousands)
(unaudited)

 For the three months ended March 31,
 20232022
Cash flows from operating activities:
Net income (loss)$27,820 $88,945 
Adjustments to reconcile net income (loss) to cash flows provided by (used for) operating activities:
Depreciation and amortization102,858 120,436 
Impairment of long-lived assets3,142 — 
Losses (gains) on investments, net7,109 (80,686)
Equity in losses (earnings) of unconsolidated affiliates, net551 1,714 
Foreign currency transaction losses (gains), net(3,313)(6,394)
Deferred tax provision (benefit), net6,521 25,538 
Stock-based compensation2,592 1,860 
Amortization of debt issuance costs204 191 
Other, net(24,078)(2,528)
Changes in assets and liabilities, net:
Trade accounts receivable and contract assets, net(14,041)(8,480)
Other current assets, net(27,153)(3,340)
Trade accounts payable(13,797)7,046 
Contract liabilities7,553 (3,142)
Accrued expenses and other current liabilities(28,257)(27,033)
Non-current assets and non-current liabilities, net(1,286)(9,774)
Net cash provided by (used for) operating activities46,425 104,353 
Cash flows from investing activities:
Purchases of marketable investment securities(238,585)(88,578)
Sales and maturities of marketable investment securities457,776 492,812 
Expenditures for property and equipment(59,071)(112,138)
Refunds and other receipts related to capital expenditures15,000 — 
Expenditures for externally marketed software(6,962)(5,093)
India JV formation— (7,892)
Net cash provided by (used for) investing activities168,158 279,111 
Cash flows from financing activities:
Payment of finance lease obligations— (85)
Payment of in-orbit incentive obligations(1,834)(1,444)
Proceeds from Class A common stock issued under the Employee Stock Purchase Plan1,098 2,367 
Treasury share repurchase— (33,307)
Net cash provided by (used for) financing activities(736)(32,469)
Effect of exchange rates on cash and cash equivalents1,659 3,480 
Net increase (decrease) in cash and cash equivalents215,506 354,475 
Cash and cash equivalents, including restricted amounts, beginning of period705,883 536,874 
Cash and cash equivalents, including restricted amounts, end of period$921,389 $891,349 
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