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8-K - 8-K - EchoStar CORPa11-31128_48k.htm

Exhibit 99.1

 

EchoStar Reports CERTAIN Fourth Quarter and

YEAR END 2011 Financial Results

 

ENGLEWOOD, Colo., Feb. 23, 2012 — EchoStar Corporation (NASDAQ: SATS) today reported preliminary unaudited results.  EchoStar had total revenue of $834 million for the quarter ended Dec. 31, 2011, a 62.6 percent increase compared with $513 million for the corresponding period in 2010.

 

Loss before income taxes totaled $22 million for the quarter ended Dec. 31, 2011, compared with income before income taxes of $186 million during the corresponding period in 2010.

 

For the year ended Dec. 31, 2011, EchoStar reported total revenue of $2.76 billion compared with $2.35 billion for the year ended Dec. 31, 2010, an increase of 17.5 percent.  Income before income taxes for the year ended Dec. 31, 2011 totaled $26 million, compared with $289 million for the year ended Dec. 31, 2010.

 

EchoStar acquired Hughes Communications, Inc. and its subsidiaries (“Hughes Communications”) as of June 8, 2011.  The financial results of Hughes Communications are included in EchoStar’s financial results effective June 9, 2011.  Therefore, EchoStar’s financial results for the quarter and year ended Dec. 31, 2011 are not comparable to its financial results for the quarter and year ended Dec. 31, 2010.

 

Conference Call Information

EchoStar will host its fourth quarter and year end 2011 financial results conference call today at 11 a.m. ET.  The dial-in number is (877) 500-5931.

 

About EchoStar

EchoStar Corporation (NASDAQ: SATS) is a premier global provider of satellite operations and digital TV solutions that enhance today’s home entertainment lifestyle. Its wholly owned subsidiary, Hughes, is the world’s leading provider of satellite broadband for home and office, delivering innovative network technologies and managed network services for enterprises and governments in more than 100 countries. Among the many offerings of this combined powerhouse in broadband data and video are HughesNet®, the market’s #1 high-speed satellite Internet service; Sling Media’s award-winning SlingLoaded® technology; and Move Networks’ adaptive bit-rate streaming technology.

 

Headquartered in Englewood, Colo. with employees worldwide, EchoStar has more than 25 years of experience designing, developing and distributing award-winning television set-top boxes, services and related delivery products for television. EchoStar delivers satellite broadband and transport services for enterprises, governments, small businesses, and consumers using 11 satellites and related broadcast licenses around the globe. For more information, please visit www.EchoStar.com and www.Hughes.com.

 



 

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Whenever you read a statement that is not simply a statement of historical fact (such as when we describe what we “believe,” “intend,” “plan,” “estimate,” “expect” or “anticipate” will occur and other similar statements), you must remember that our expectations may not be achieved, even though we believe they are reasonable.  We do not guarantee that any future transactions or events described herein will happen as described or that they will happen at all.  You should read this press release completely and with the understanding that actual future results may be materially different from what we expect.  Whether actual events or results will conform with our expectations and predictions is subject to a number of risks and uncertainties.  For further information regarding risks and uncertainties associated with EchoStar’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of EchoStar’s SEC filings.

 

Contact Information

Investor Relations Contact:
Deepak Dutt
301-428-1686

Press Contact:
mediarelations@echostar.com
303-706-5236

 

Attachments

EchoStar Corporation

 

 



 

ECHOSTAR CORPORATION

 (In thousands)

(Unaudited)

 

 

 

For the Years Ended December 31,

 

 

 

2011

 

2010

 

2009

 

Revenue:

 

 

 

 

 

 

 

Equipment revenue - DISH Network

 

$

1,158,293

 

$

1,470,173

 

$

1,174,763

 

Equipment revenue - other

 

513,504

 

347,765

 

302,787

 

Services and other revenue - DISH Network

 

496,636

 

468,399

 

373,226

 

Services and other revenue - other

 

592,998

 

64,032

 

52,783

 

Total revenue

 

2,761,431

 

2,350,369

 

1,903,559

 

 

 

 

 

 

 

 

 

Costs and Expenses: (exclusive of depreciation shown below)

 

 

 

 

 

 

 

Cost of sales - equipment

 

1,414,791

 

1,553,129

 

1,267,172

 

Cost of sales - services and other

 

492,702

 

236,356

 

203,123

 

Research and development expenses

 

50,966

 

46,093

 

44,009

 

Selling, general and administrative expenses

 

288,575

 

128,366

 

116,737

 

General and administrative expenses - DISH Network

 

14,701

 

15,189

 

23,497

 

Depreciation and amortization

 

385,894

 

228,911

 

244,129

 

Impairment of long-lived asset

 

32,964

 

 

 

Total costs and expenses

 

2,680,593

 

2,208,044

 

1,898,667

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

80,838

 

142,325

 

4,892

 

 

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

 

Interest income

 

10,821

 

14,472

 

26,441

 

Interest expense, net of amounts capitalized

 

(82,593

)

(14,560

)

(32,315

)

Unrealized and realized gains (losses) on marketable investment securities and other investments

 

13,666

 

2,923

 

119,461

 

Unrealized gains (losses) on investments accounted for at fair value, net

 

15,871

 

144,473

 

313,000

 

Other, net

 

(12,828

)

(860

)

(6,120

)

Total other income (expense)

 

(55,063

)

146,448

 

420,467

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

25,775

 

$

288,773

 

$

425,359

 

 



 

ECHOSTAR CORPORATION

 (In thousands)

(Unaudited)

 

 

 

As of December 31,

 

 

 

2011

 

2010

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

614,035

 

$

141,814

 

Marketable investment securities

 

1,082,407

 

989,086

 

 

 

 

For the Years Ended December 31,

 

 

 

2011

 

2010

 

2009

 

 

 

 

 

 

 

 

 

Net cash flows from operating activities

 

$

447,018

 

$

404,015

 

$

196,276

 

Net cash flows from investing activities

 

$

(1,888,045

)

$

(238,558

)

$

(114,278

)

Net cash flows from financing activities

 

$

1,913,547

 

$

(46,973

)

$

(83,135

)