EchoStar Announces Fourth Quarter and Full Year 2015 Results

EchoStar Announces Fourth Quarter and Full Year 2015 Results

ENGLEWOOD, Colo., Feb. 24, 2016 /PRNewswire/ -- EchoStar Corporation (NASDAQ: SATS) today announced its financial results for the fourth quarter and full year ended December 31, 2015.

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Fourth Quarter 2015 Financial Highlights:


-- Consolidated revenues of $791 million.
-- Consolidated EBITDA of $223 million.
-- Consolidated net income attributable to EchoStar common stock of $66.3
million and diluted earnings per share of $0.71.
-- Hughes net subscriber additions of approximately 9,000. Approximately
1,035,000 subscribers as of December 31, 2015.
-- Record enterprise contract awards of $479 million at Hughes.
Full Year Ended December 31, 2015 Financial Highlights:


-- Consolidated revenue of $3.1 billion.
-- Consolidated EBITDA of $865 million.
-- Consolidated net income attributable to EchoStar common stock of $163.7
million and diluted earnings per share of $1.75.
-- Strong liquidity with cash, cash equivalents and current marketable
investment securities of $1.54 billion as of December 31, 2015.
Set forth below is a table highlighting certain of EchoStar's segment results for the three and twelve months ended December 31, 2015 and 2014:




Three Months Twelve Months

Ended December 31, Ended December 31,
------------------ ------------------

2015 2014 2015 2014
---- ---- ---- ----

(Dollars in thousands)

Revenue

Hughes $347,146 $343,621 $1,347,340 $1,327,718

EchoStar Technologies
Corp. 325,101 371,389 1,298,198 1,627,366

EchoStar Satellite
Services 116,304 127,491 490,591 484,455

All Other &
Eliminations 2,036 1,387 7,585 6,039

Total $790,587 $843,888 $3,143,714 $3,445,578
======== ======== ========== ==========


EBITDA*

Hughes $100,415 $89,661 $396,684 $356,871

EchoStar Technologies
Corp. 25,981 35,052 106,745 154,786

EchoStar Satellite
Services 98,429 110,869 412,607 419,442

All Other &
Eliminations (2,084) (5,775) (50,683) (28,518)

Total $222,741 $229,807 $865,353 $902,581
======== ======== ======== ========


Net income (loss)
attributable to
EchoStar common stock $66,296 $54,766 $163,700 $165,268
======= ======= ======== ========

Diluted earnings per
share (in dollars) $0.71 $0.59 $1.75 $1.78
===== ===== ===== =====


Capital expenditures $223,369 $245,599 $703,520 $680,026
======== ======== ======== ========
The following table reconciles total consolidated EBITDA to "Income/(loss) before income taxes".




Three Months Twelve Months

Ended December 31, Ended December 31,
------------------ ------------------

2015 2014 2015 2014
---- ---- ---- ----

(in thousands)

EBITDA $222,741 $229,807 $865,353 $902,581

Interest income and
expense, net (23,396) (36,843) (111,637) (162,247)

Depreciation and
amortization (129,610) (140,509) (528,158) (556,676)

Net income (loss)
attributable to
noncontrolling
interests (972) (2,379) (3,986) (5,325)

Income (loss)
before income
taxes $68,763 $50,076 $221,572 $178,333
======= ======= ======== ========
Note on Use of Non-GAAP Financial Measures

EBITDA is defined as "Net income (loss) attributable to EchoStar" excluding "Interest expense, net of amounts capitalized," "interest income", "Income tax benefit (provision), net" and "Depreciation and amortization." EBITDA is not a measure determined in accordance with US GAAP. This non-GAAP measure is reconciled to income (loss) before income taxes in the table above. EBITDA should not be considered in isolation or as a substitute for operating income, net income or any other measure determined in accordance with GAAP. Conceptually, EBITDA measures the amount of income generated each period that could be used to service debt, pay taxes and fund capital expenditures. EBITDA is used by our management as a measure of operating efficiency and overall financial performance for benchmarking against our peers and competitors. Management believes EBITDA provides meaningful supplemental information regarding liquidity and the underlying operating performance of our business. Management also believes that EBITDA is useful to investors because it is 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 December 31, 2015 and 2014 are attached to this press release. Detailed financial data and other information are available in EchoStar's Annual Report on Form 10-K for the year ended December 31, 2015 filed today with the Securities and Exchange Commission.

EchoStar will host its earnings conference call on Wednesday, February 24, 2016 at 11:00 a.m. Eastern Time. The call-in numbers are (877) 815-1625 (toll-free) and (716) 247-5178 (international), Conference ID # 93525715.

About EchoStar Corporation

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

For more information, visit echostar.com. Follow @EchoStar on Twitter.

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," "estimate," "expect," "intend," "project," "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. These statements are subject to certain risks, uncertainties, and assumptions. See "Risk Factors" in EchoStar's Annual Report on Form 10-K for the year ended December 31, 2015, filed today 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

Consolidated Balance Sheets

(Dollars in thousands, except per-share amounts)


As of December 31,
------------------

2015 2014
---- ----

Assets

Current Assets:

Cash and cash equivalents $924,240 $549,053

Marketable investment securities,
at fair value 612,338 1,139,103

Trade accounts receivable, net of
allowance for doubtful accounts of
$12,485 and $14,188, respectively 179,240 163,232

Trade accounts receivable -DISH
Network, net of allowance for
doubtful accounts of zero 277,159 251,669

Inventory 67,010 62,963

Prepaid expenses 56,949 67,164

Deferred tax assets - 87,208

Other current assets 16,723 7,699
------ -----

Total current assets 2,133,659 2,328,091
--------- ---------

Noncurrent Assets:

Restricted cash and marketable
investment securities 21,002 18,945

Property and equipment, net of
accumulated depreciation of
$2,998,074 and $2,899,353,
respectively 3,412,990 3,194,793

Regulatory authorizations, net 543,812 568,378

Goodwill 510,630 510,630

Other intangible assets, net 132,653 195,662

Investments in unconsolidated
entities 209,264 159,962

Other receivable - DISH Network 90,966 90,241

Other noncurrent assets, net 185,786 187,296
------- -------

Total noncurrent assets 5,107,103 4,925,907

Total assets $7,240,762 $7,253,998
========== ==========

Liabilities and Stockholders' Equity

Current Liabilities:

Trade accounts payable $213,671 $188,282

Trade accounts payable -DISH
Network 24,682 32,474

Current portion of long-term debt
and capital lease obligations 35,698 41,912

Deferred revenue and prepayments 61,881 71,708

Accrued compensation 29,767 32,117

Accrued royalties 22,531 27,590

Accrued expenses and other 138,601 123,650

Total current liabilities 526,831 517,733
------- -------

Noncurrent Liabilities:

Long-term debt and capital lease
obligations, net of current
portion 2,187,943 2,325,775

Deferred tax liabilities 650,392 679,524

Other noncurrent liabilities 93,954 107,328

Total noncurrent liabilities 2,932,289 3,112,627
--------- ---------

Total liabilities 3,459,120 3,630,360
--------- ---------

Commitments and Contingencies (Note 16)


Stockholders' Equity:

Preferred Stock, $.001 par value, 20,000,000 shares authorized:

Hughes Retail Preferred Tracking Stock, $.001 par value, 13,000,000
shares authorized, 6,290,499 issued and

outstanding at each of December 31,
2015 and 2014 6 6

Common stock, $.001 par value, 4,000,000,000 shares authorized:

Class A common stock, $.001 par value, 1,600,000,000 shares
authorized, 51,087,839 shares issued and

45,555,521 shares outstanding at December 31, 2015 and 49,576,247
shares issued and 44,043,929 shares

outstanding at December 31, 2014 51 50

Class B common stock, $.001 par value, 800,000,000 shares
authorized, 47,687,039 shares issued and outstanding

at each of December 31, 2015 and
2014 48 48

Class C common stock, $.001 par value, 800,000,000 shares
authorized, none issued and outstanding at each of

December 31, 2015 and 2014 - -

Class D common stock, $.001 par value, 800,000,000 shares
authorized, none issued and outstanding at each of

December 31, 2015 and 2014 - -

Additional paid-in capital 3,776,451 3,706,122

Accumulated other comprehensive
loss (117,233) (55,856)

Accumulated earnings (deficit) 134,317 (19,040)

Treasury stock, at cost (98,162) (98,162)
------- -------

Total EchoStar stockholders' equity 3,695,478 3,533,168

Noncontrolling interest in HSS
Tracking Stock 74,854 80,457

Other noncontrolling interests 11,310 10,013
------ ------

Total stockholders' equity 3,781,642 3,623,638
--------- ---------

Total liabilities and stockholders'
equity $7,240,762 $7,253,998
========== ==========




ECHOSTAR CORPORATION

Consolidated Statements of Operations

(Dollars in thousands, except per-share amounts)


For the Years Ended December 31,
--------------------------------

2015 2014 2013
---- ---- ----

Revenue:

Equipment revenue -DISH
Network $763,184 $1,145,979 $1,311,446

Equipment revenue - other 358,301 374,049 347,910

Services and other revenue -
DISH Network 918,301 828,612 620,189

Services and other revenue -
other 1,103,928 1,096,938 1,002,907

Total revenue 3,143,714 3,445,578 3,282,452
--------- --------- ---------

Costs and Expenses:

Cost of sales -equipment
(exclusive of depreciation
and amortization) 948,655 1,288,998 1,430,777

Cost of sales -services and
other (exclusive of
depreciation and
amortization) 856,065 838,918 776,121

Selling, general and
administrative expenses 374,116 372,010 358,499

Research and development
expenses 78,287 60,886 67,942

Depreciation and
amortization 528,158 556,676 507,111

Impairment of long-lived
assets 2,400 - 38,415

Total costs and expenses 2,787,681 3,117,488 3,178,865
--------- --------- ---------

Operating income 356,033 328,090 103,587
------- ------- -------


Other Income (Expense):

Interest income 10,429 9,102 14,656

Interest expense, net of
amounts capitalized (122,066) (171,349) (192,554)

Loss from partial redemption
of debt (5,044) - -

Gains (losses) on marketable
investment securities, net (6,443) 41 38,341

Other-than-temporary
impairment loss on
marketable investment
securities (11,226) - -

Equity in earnings (losses)
of unconsolidated
affiliates, net 1,895 8,198 (5,024)

Other, net (2,006) 4,251 6,958

Total other expense, net (134,461) (149,757) (137,623)
-------- -------- --------

Income (loss) before income
taxes 221,572 178,333 (34,036)

Income tax (provision)
benefit, net (72,201) (30,784) 37,437
------- ------- ------

Net income 149,371 147,549 3,401

Less: Net loss attributable
to noncontrolling interest
in HSS Tracking Stock (5,603) (6,714) -

Less: Net income
attributable to other
noncontrolling interests 1,617 1,389 876

Net income attributable to
EchoStar 153,357 152,874 2,525

Less: Net loss attributable
to Hughes Retail Preferred
Tracking Stock (Note 4) (10,343) (12,394) -
------- ------- ---

Net income attributable to
EchoStar common stock $163,700 $165,268 $2,525
======== ======== ======


Weighted-average common shares outstanding - Class A and
B common stock:

Basic 92,397 91,190 89,405
====== ====== ======

Diluted 93,466 92,616 90,952
====== ====== ======


Earnings per share - Class A and B common stock:

Basic $1.77 $1.81 $0.03
===== ===== =====

Diluted $1.75 $1.78 $0.03
===== ===== =====


Comprehensive Income (Loss)

Net income $149,371 $147,549 $3,401
-------- -------- ------

Other comprehensive income (loss), net of tax:

Foreign currency translation
adjustments (62,731) (31,935) (16,394)

Recognition of foreign
currency translation loss
in net income 1,889 - -

Unrealized gains (losses) on
marketable investment
securities and other (12,046) (9,462) 18,413

Recognition of other-than-temporary loss on marketable
investment

securities in net income 11,226 - -

Recognition of realized gains on marketable investment

securities in net income (35) (41) (36,312)
--- --- -------

Total other comprehensive
loss, net of tax (61,697) (41,438) (34,293)
------- ------- -------

Comprehensive income (loss) 87,674 106,111 (30,892)

Less: Comprehensive loss attributable to noncontrolling
interest in

HSS Tracking Stock (5,603) (6,714) -

Less: Comprehensive income
(loss) attributable to
other noncontrolling
interests 1,297 1,152 (10)

Comprehensive income (loss)
attributable to EchoStar $91,980 $111,673 $(30,882)
======= ======== ========



ECHOSTAR CORPORATION

Consolidated Statements of Cash Flows

(In thousands)


For the Years Ended December 31,
--------------------------------

2015 2014 2013
---- ---- ----

Cash Flows from Operating Activities:

Net income $149,371 $147,549 $3,401

Adjustments to reconcile net income to net cash flows from
operating activities:

Depreciation and
amortization 528,158 556,676 507,111

Equity in losses (earnings)
of unconsolidated
affiliates, net (1,895) (8,198) 5,024

Loss from partial redemption
of debt 5,044 - -

Losses (gains) and other-
than-temporary impairment
on marketable investment
securities, net 17,669 (41) (38,341)

Impairment of long-lived
assets 2,400 - 38,415

Stock-based compensation 21,839 14,683 18,353

Deferred tax provision
(benefit) 56,132 31,742 (35,780)

Changes in current assets and current liabilities, net:

Trade accounts receivable (36,749) (18,023) 42,580

Allowance for doubtful
accounts (1,703) 950 (2,995)

Trade accounts receivable -
DISH Network (25,490) 104,051 (77,790)

Inventory (4,906) 2,608 16,529

Other current assets 6,499 9,930 5,182

Trade accounts payable 37,228 (22,230) (76,497)

Trade accounts payable -
DISH Network (7,792) (26,508) 28,783

Accrued expenses and other 1,477 26,469 38,085

Changes in noncurrent assets
and noncurrent liabilities,
net 1,616 (8,305) (41,650)

Other, net 27,553 28,778 20,097

Net cash flows from
operating activities 776,451 840,131 450,507
------- ------- -------

Cash Flows from Investing Activities:

Purchases of marketable
investment securities (536,430) (1,523,514) (1,080,437)

Sales and maturities of
marketable investment
securities 1,057,034 1,353,157 912,030

Purchases of property and
equipment (809,270) (680,026) (391,873)

Refunds and other receipts
related to capital
expenditures 105,750 - -

Changes in restricted cash
and marketable investment
securities (2,057) (2,808) 12,908

Investments in
unconsolidated entities (64,655) - -

Acquisition of regulatory
authorization (3,428) - (41,748)

Proceeds from asset
transfers to DISH Network - - 40,398

Capital contribution to
Sling TV Holding - (18,569) (7,000)

Expenditures for externally
marketed software (22,327) (22,955) (17,215)

Other, net 72 7,125 2,648

Net cash flows from
investing activities (275,311) (887,590) (570,289)
-------- -------- --------

Cash Flows from Financing Activities:

Repayment of 6 1/2% Senior
Secured Notes due 2019 and
related premium (113,300) - -

Repayment of other long-
term debt and capital lease
obligations (44,804) (63,122) (68,225)

Net proceeds from Class A common stock options exercised
and stock issued under

the Employee Stock Purchase
Plan 38,729 28,857 71,247

Net proceeds from issuance
of Tracking Stock (Note 4) - 7,526 -

Excess tax benefit from
stock option exercises 3,929 (7,252) 12,663

Other, net (4,811) (1,105) 2,641

Net cash flows from
financing activities (120,257) (35,096) 18,326
-------- ------- ------

Effect of exchange rates on
cash and cash equivalents (5,696) (2,511) 3,961
------ ------ -----

Net increase (decrease) in
cash and cash equivalents 375,187 (85,066) (97,495)

Cash and cash equivalents,
beginning of period 549,053 634,119 731,614

Cash and cash equivalents,
end of period $924,240 $549,053 $634,119
======== ======== ========


Supplemental Disclosure of Cash Flow Information:

Cash paid for interest
(including capitalized
interest) $179,114 $188,087 $188,331
======== ======== ========

Capitalized interest $63,808 $23,774 $3,968
======= ======= ======

Cash paid for income taxes $6,394 $14,221 $16,728
====== ======= =======

Employee benefits paid in
Class A common stock $10,711 $10,316 $4,761
======= ======= ======

Satellites and other assets
financed under capital
lease obligations $8,604 $3,312 $5,316
====== ====== ======

Increase (decrease) in
capital expenditures
included in accounts
payable, net $(7,123) $11,436 $(8,921)
======= ======= =======

Noncash assets contributed
to SmarDTV (Note 6) $6,651 $ - $ -
====== ================ ===============

Net noncash assets
transferred from DISH
Network in exchange for
Tracking Stock (Note 4) $ - $386,691 $ -
=============== ======== ===============

Noncash assets received from
Sling TV Holding (Note 6) $ - $34,075 $ -
=============== ======= ===============

Capitalized in-orbit
incentive obligations $ - $ - $18,000
=============== =============== =======

Reduction of capital lease
obligation for AMC-15 and
AMC-16 $4,500 $ - $6,694
====== =============== ======

Liabilities assumed in
regulatory authorization
acquisition $ - $ - $10,304
============== =============== =======


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SOURCE EchoStar Corporation

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EchoStar Corporation

CONTACT: Investor Relations, Deepak V. Dutt, Phone: +1 301-428-1686, Email: deepak.dutt@echostar.com; or Media Relations, Jessica Olsen, Phone: +1 303-706-4906, Email: Jessica.olsen@echostar.com

Web Site: http://www.echostar.com


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