News Release
Intelsat Reports First Quarter 2014 Results
-
First quarter revenue of
$628.9 million ; -
First quarter net income attributable to
Intelsat S.A. of$81.9 million ; -
Net income per diluted common share of
$0.70 ; Adjusted net income per diluted common share of$0.92 ; and -
$9.9 billion contracted backlog provides visibility for future revenue and cash flow -
Company affirms 2014 guidance, including debt paydown of
approximately
$400 million
"In other parts of our business, we continued to support regional media
customers with distribution services and digital terrestrial television
platforms. We expanded distribution agreements with leaders in the
maritime sector, building on our leadership position in broadband
mobility solutions. We ended the first quarter of 2014 with a contracted
backlog of
McGlade continued, "Our satellite programs remain on track, with our
single 2014 launch,
First Quarter 2014 Business Highlights
Network Services comprised 46 percent of Intelsat’s total first quarter
2014 revenue, and at
Media comprised 36 percent of the company’s revenue for the quarter
ended
Government comprised 17 percent of our revenue for the quarter ended
Average Fill Rate
Intelsat’s average fill rate on our approximately 2,175 station-kept
transponders was 77 percent at
Satellite Launches
Our next launch, planned for the second half of 2014, is
Contracted Backlog
At
Financial Results for the Three Months ended
On-Network revenue generally includes revenue from services delivered via our satellite or ground network. Off-Network and Other revenue generally includes 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 Revenue also includes revenue from consulting and other services, and sales of customer premises equipment.
Total On-Network Revenue decreased by
-
Transponder services reported an aggregate decrease of
$18.2 million , primarily due to an$8.5 million decrease in revenue from capacity sold for government applications to customers in theNorth America region and an$8.3 million decrease in revenue from network services customers in theAfrica andMiddle East region. -
Managed services reported an aggregate increase of
$2.5 million , largely due to a$4.2 million increase in revenue from North American network services customers for broadband services for global mobility applications, partially offset by a$1.3 million decrease in revenue related to international trunking, primarily in theAfrica andMiddle East and theEurope regions. -
Channel reported an aggregate decrease
$3.3 million due to the continued migration of international point-to-point satellite traffic to fiber optic cable, a trend we expect to continue.
Total Off-Network and Other Revenue decreased by
-
Transponder, MSS and other off-network services reported an aggregate
decrease of
$5.8 million , primarily due to declines in services for government applications, including reduced sales of off-network transponder services, partially offset by an increase in mobile satellite services (“MSS”) and related hardware revenue in theNorth America region. -
Satellite-related services reported an aggregate decrease of
$1.4 million , primarily due to decreased revenue from government professional services.
For the three month period ended
Direct costs of revenue decreased by
Selling, general and administrative expenses decreased by
Depreciation and amortization expense decreased by
Interest expense, net consists of the gross interest expense we incur
together with losses on interest rate swaps (which reflects 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
decreased by
The decrease in interest expense, net was principally due to the following:
-
a net decrease of
$68.4 million in interest expense as a result of our debt offerings, prepayments and redemptions of our unsecured debt in 2013; -
a net decrease of
$7.4 million in interest expense as a result of the decrease in the interest rate for borrowing under the Secured Credit Agreement of our subsidiary,Intelsat Jackson Holdings S.A. (“Intelsat Jackson”); and -
a decrease of
$3.5 million resulting from higher capitalized interest of$15.1 million for the three months endedMarch 31, 2014 , as compared to$11.6 million for the three months endedMarch 31, 2013 , resulting from increased levels of satellites and related assets under construction.
The non-cash portion of interest expense, net was
Other income, net was
Provision for income taxes was
EBITDA, Adjusted EBITDA, Net Income, Net Income per Diluted Common Share and Adjusted Net Income per Diluted Common Share
EBITDA was
Adjusted EBITDA was
Net income attributable to
Net income per diluted common share attributable to
Adjusted net income per diluted common share was
By Customer Set | ||||||||||||
Three Months Ended | Three Months Ended | |||||||||||
March 31, | March 31, | |||||||||||
2013 | 2014 | |||||||||||
Network Services | $ | 298,333 | 46 | % | $ | 290,236 | 46 | % | ||||
Media | 223,215 | 34 | % | 221,800 | 36 | % | ||||||
Government | 125,827 | 19 | % | 108,906 | 17 | % | ||||||
Other | 7,752 | 1 | % | 7,948 | 1 | % | ||||||
$ | 655,127 | 100 | % | $ | 628,890 | 100 | % | |||||
By Service Type | ||||||||||||
Three Months Ended | Three Months Ended | |||||||||||
March 31, | March 31, | |||||||||||
2013 | 2014 | |||||||||||
On-Network Revenues | ||||||||||||
Transponder services | $ | 501,807 | 77 | % | $ | 483,624 | 77 | % | ||||
Managed services | 72,371 | 11 | % | 74,834 | 12 | % | ||||||
Channel | 19,165 | 3 | % | 15,859 | 3 | % | ||||||
Total on-network revenues | 593,343 | 91 | % | 574,317 | 91 | % | ||||||
Off-Network and Other Revenues | ||||||||||||
Transponder, MSS and other off-network services | 48,977 | 7 | % | 43,167 | 7 | % | ||||||
Satellite-related services | 12,807 | 2 | % | 11,406 | 2 | % | ||||||
Total off-network and other revenues | 61,784 | 9 | % | 54,573 | 9 | % | ||||||
Total | $ | 655,127 | 100 | % | $ | 628,890 | 100 | % | ||||
Free Cash Flow from Operations
Free cash flow from operations1 was
Payments for satellites and other property and equipment during the
three months ended
Financial Outlook 2014
Today,
Revenue:
Adjusted EBITDA Margin:
Capital Expenditures:
We expect capital expenditures ranges of:
-
2014:
$575 million to $650 million ; -
2015:
$775 million to $850 million ; and -
2016:
$625 million to $700 million .
Capital expenditure guidance for 2014 and 2015 assumes investment in nine satellites in the manufacturing or design phase during the Guidance Period. We expect to launch four satellites in 2014 and 2015, two satellites in 2016, and will continue work on three remaining satellites for which construction will extend beyond the Guidance Period. By the conclusion of the Guidance Period in 2016, the number of transponder equivalents is expected to increase by a compound annual growth rate (CAGR) of 4.5 percent as a result of the launch of the satellites covered by the Guidance Period. We expect to launch two of our new Intelsat EpicNG high-throughput satellites in the 2015 and 2016 period, increasing our total transmission capacity.
Our capital expenditures guidance includes capitalized interest.
Prepayments: During the Guidance Period, we expect to receive customer prepayments under our existing customer service contracts.
We expect prepayment ranges of:
-
2014:
$75 million to $100 million ; -
2015:
$50 million to $75 million ; and - 2016: No prepayments are currently contracted for this period.
The annual classification of capital expenditure and prepayments could be affected by the timing of achievement of contract, satellite manufacturing, launch and other milestones.
Prepayments during the three months ended
Debt Reduction: Based upon the above revenue, Adjusted EBITDA, capital
expenditure and prepayment guidance,
- - - - - - - - - - - - - - - - - - - - - - - - - -
1In this release, financial measures are presented both in accordance with GAAP and also on a non-GAAP basis. EBITDA, Adjusted EBITDA, free cash flow from (used in) operations, Adjusted net income per diluted common share and related margins included in this release are non-GAAP financial measures. Please see the consolidated financial information below for information reconciling non-GAAP financial measures to comparable GAAP financial measures.
Q1 2014 Quarterly Commentary
As previously announced,
Conference Call Information
Participants will have access to a replay of the conference call through
About
Intelsat Safe Harbor Statement: Some of the statements in this news
release constitute "forward-looking statements" that do not directly or
exclusively relate to historical facts. The forward-looking statements
made in this release reflect
Because actual results could differ materially from
INTELSAT S.A. | ||||||||
UNAUDITED CONSOLIDATED STATEMENTS of OPERATIONS | ||||||||
($ in thousands, except per share amounts) | ||||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, 2013 | March 31, 2014 | |||||||
Revenue | $ | 655,127 | $ | 628,890 | ||||
Operating expenses: | ||||||||
Direct costs of revenue (excluding depreciation and amortization) | 97,646 | 83,759 | ||||||
Selling, general and administrative | 58,156 | 46,846 | ||||||
Depreciation and amortization | 187,411 | 169,585 | ||||||
Total operating expenses | 343,213 | 300,190 | ||||||
Income from operations | 311,914 | 328,700 | ||||||
Interest expense, net | 320,218 | 240,801 | ||||||
Other income (expense), net | (650 | ) | 395 | |||||
Income (loss) before income taxes | (8,954 | ) | 88,294 | |||||
Provision for (benefit from) income taxes | (2,038 | ) | 5,398 | |||||
Net income (loss) | (6,916 | ) | 82,896 | |||||
Net income attributable to noncontrolling interest | (888 | ) | (950 | ) | ||||
Net income (loss) attributable to Intelsat S.A. | $ | (7,804 | ) | $ | 81,946 | |||
Net income (loss) per common share attributable to Intelsat S.A.: | ||||||||
Basic | $ | (0.09 | ) | $ | 0.77 | |||
Diluted | $ | (0.09 | ) | $ | 0.70 |
INTELSAT S.A. | ||||||||
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO EBITDA | ||||||||
($ in thousands) | ||||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, | March 31, | |||||||
2013 | 2014 | |||||||
Net income (loss) | $ | (6,916 | ) | $ | 82,896 | |||
Add (Subtract): | ||||||||
Interest expense, net | 320,218 | 240,801 | ||||||
Provision for (benefit from) income taxes | (2,038 | ) | 5,398 | |||||
Depreciation and amortization | 187,411 | 169,585 | ||||||
EBITDA | $ | 498,675 | $ | 498,680 | ||||
EBITDA Margin | 76 | % | 79 | % |
Note: |
EBITDA consists of earnings before interest expense, net, taxes and depreciation and amortization. EBITDA is a measure commonly used in the 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 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. However, 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 (LOSS) TO | ||||||||
ADJUSTED EBITDA | ||||||||
($ in thousands) | ||||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, | March 31, | |||||||
2013 | 2014 | |||||||
Net income (loss) | $ | (6,916 | ) | $ | 82,896 | |||
Add (Subtract): | ||||||||
Interest expense, net | 320,218 | 240,801 | ||||||
Provision for (benefit from) income taxes | (2,038 | ) | 5,398 | |||||
Depreciation and amortization | 187,411 | 169,585 | ||||||
EBITDA | 498,675 | 498,680 | ||||||
Add (Subtract): | ||||||||
Compensation and benefits | 47 | 4,065 | ||||||
Management fees | 6,285 | - | ||||||
Non-recurring and other non-cash items | 803 | 3,089 | ||||||
Adjusted EBITDA | $ | 505,810 | $ | 505,834 | ||||
Adjusted EBITDA Margin | 77 | % | 80 | % |
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 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. | ||||||||
UNAUDITED ADJUSTED NET INCOME (LOSS) per DILUTED COMMON SHARE | ||||||||
($ in thousands, except per share amounts) | ||||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, | March 31, | |||||||
2013 | 2014 | |||||||
Numerator (in thousands): | ||||||||
Net income (loss) attributable to Intelsat S.A. | $ | (7,804 | ) | $ | 81,946 | |||
Add (Subtract): | ||||||||
Compensation and benefits (1) | 47 | 4,065 | ||||||
Management fees (2) | 6,285 | - | ||||||
Losses on derivative financial instruments (3) | 1,865 | 1,848 | ||||||
Amortization (4) | 20,578 | 17,058 | ||||||
Non-recurring and other non-cash items (5) | 803 | 3,089 | ||||||
Income tax effect of adjustments above & other discrete tax items (6) |
- | (1,263 | ) | |||||
Adjusted net income attributable to Intelsat S.A. |
21,774 | 106,743 | ||||||
Denominator (in millions): | ||||||||
Basic weighted average shares outstanding | 83.0 | 106.2 | ||||||
Weighted average dilutive shares outstanding: | ||||||||
Preferred shares | - | 9.6 | ||||||
Employee compensation related shares, including options and restricted share units |
0.6 | 0.8 | ||||||
Adjusted diluted weighted average shares outstanding | 83.6 | 116.6 | ||||||
Adjusted diluted net income per common share attributable to Intelsat S.A. |
$ | 0.26 | $ | 0.92 |
Note: |
Management evaluates financial performance in part based on adjusted net income per diluted common share attributable to Intelsat S.A. This measure consists of net income (loss) per diluted common share attributable to Intelsat S.A. as reported, as adjusted to exclude or include certain unusual items, certain other operating expense items and certain other adjustments as described in the table and footnotes below. In addition, in calculating this measure we adjusted our common shares outstanding to reflect dilution when the calculation of the numerator moved from a net loss to net income. We believe investors’ understanding of our operating performance is enhanced by the disclosure of this measure. Adjusted net income (loss) per diluted common share attributable to Intelsat S.A. is not a recognized financial measure in accordance with U.S. GAAP and should not be considered a substitute for earnings per share or other financial measures as computed in accordance with U.S. GAAP and may not be comparable to similarly titled measures of other companies. |
(1) | Reflects non-cash expenses incurred relating to our equity compensation plans and a portion of the expenses related to our defined benefit retirement plan and other postretirement benefits. | |
(2) | Reflects expenses incurred in connection with our monitoring fee agreement, dated February 4, 2008. In connection with the Initial Public Offering in April 2013, the monitoring fee agreement was terminated. | |
(3) | Represents (i) the changes in the fair value of the undesignated interest rate swaps and (ii) the difference between the amount of floating rate interest we receive and the amount of fixed rate interest we pay under such swaps, both of which are recognized in operating income. | |
(4) | Intangible assets are amortized based on the expected pattern of consumption. We recorded amortization expense related to our backlog and other and customer intangible assets. | |
(5) | Reflects certain non-recurring gains and losses and non-cash items, including the following: certain litigation expenses; severance, retention and relocation payments; costs associated with a 2013 internal subsidiary reorganization; expenses associated with the relocation of our U.S. administrative headquarters and primary satellites operations center; and other various non-recurring expenses. These costs were partially offset by non-cash income related to the recognition of deferred revenue on a straight-line basis for certain prepaid capacity service contracts. | |
(6) | Represents the income tax impact of the various adjustments for unusual items. |
INTELSAT S.A. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
($ in thousands, except, per share amounts) | ||||||||
As of | As of | |||||||
December 31, | March 31, | |||||||
2013 | 2014 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 247,790 | $ | 435,392 | ||||
Receivables, net of allowance of $35,288 in 2013 and $32,273 in 2014 | 236,347 | 253,327 | ||||||
Deferred income taxes | 44,475 | 37,570 | ||||||
Prepaid expenses and other current assets | 33,224 | 34,663 | ||||||
Total current assets | 561,836 | 760,952 | ||||||
Satellites and other property and equipment, net | 5,805,540 | 5,804,289 | ||||||
Goodwill | 6,780,827 | 6,780,827 | ||||||
Non-amortizable intangible assets | 2,458,100 | 2,458,100 | ||||||
Amortizable intangible assets, net | 568,775 | 551,717 | ||||||
Other assets | 414,592 | 408,844 | ||||||
Total assets | $ | 16,589,670 | $ | 16,764,729 | ||||
LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 154,712 | $ | 133,606 | ||||
Employee related liabilities | 28,227 | 26,815 | ||||||
Accrued interest payable | 186,492 | 329,992 | ||||||
Current portion of long-term debt | 24,418 | 12,209 | ||||||
Deferred satellite performance incentives | 22,703 | 21,952 | ||||||
Deferred revenue | 84,185 | 84,023 | ||||||
Other current liabilities | 72,840 | 72,708 | ||||||
Total current liabilities | 573,577 | 681,305 | ||||||
Long-term debt, net of current portion | 15,262,996 | 15,262,181 | ||||||
Deferred satellite performance incentives, net of current portion | 153,904 | 149,175 | ||||||
Deferred revenue, net of current portion | 888,239 | 894,890 | ||||||
Deferred income taxes | 202,638 | 205,009 | ||||||
Accrued retirement benefits | 196,856 | 190,536 | ||||||
Other long-term liabilities | 246,127 | 226,689 | ||||||
Shareholders' deficit: | ||||||||
Common shares; nominal value $0.01 per share | 1,060 | 1,063 | ||||||
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 | 35 | ||||||
Paid-in capital | 2,099,218 | 2,106,143 | ||||||
Accumulated deficit | (3,015,273 | ) | (2,933,327 | ) | ||||
Accumulated other comprehensive loss | (60,393 | ) | (58,760 | ) | ||||
Total shareholders' deficit | (975,353 | ) | (884,846 | ) | ||||
Noncontrolling interest | 40,686 | 39,790 | ||||||
Total liabilities and shareholders' deficit | $ | 16,589,670 | $ | 16,764,729 |
INTELSAT S.A. | ||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
($ in thousands) | ||||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, 2013 | March 31, 2014 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (6,916 | ) | $ | 82,896 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 187,411 | 169,585 | ||||||
Provision for doubtful accounts | 7,792 | (2,563 | ) | |||||
Foreign currency transaction loss | 1,211 | 223 | ||||||
Loss on disposal of assets | 32 | - | ||||||
Share-based compensation | 853 | 3,958 | ||||||
Deferred income taxes | (4,428 | ) | (1,398 | ) | ||||
Amortization of discount, premium, issuance costs and other non-cash items | 14,942 | 5,618 | ||||||
Unrealized gains on derivative financial instruments | (4,907 | ) | (5,141 | ) | ||||
Amortization of actuarial loss and prior service credits for retirement benefits | 4,903 | 2,537 | ||||||
Other non-cash items | 43 | 44 | ||||||
Changes in operating assets and liabilities: | ||||||||
Receivables | (5,269 | ) | (20,522 | ) | ||||
Prepaid expenses and other assets | (20,268 | ) | (192 | ) | ||||
Accounts payable and accrued liabilities | (36,306 | ) | (6,368 | ) | ||||
Accrued interest | (37,481 | ) | 143,500 | |||||
Deferred revenue | 1,914 | 5,487 | ||||||
Accrued retirement benefits | (7,585 | ) | (6,320 | ) | ||||
Other long-term liabilities | 1,351 | (4,453 | ) | |||||
Net cash provided by operating activities | 97,292 | 366,891 | ||||||
Cash flows from investing activities: | ||||||||
Payments for satellites and other property and equipment (including capitalized interest) | (167,154 | ) | (166,440 | ) | ||||
Proceeds from insurance settlements | 252,911 | - | ||||||
Payment on satellite performance incentives from insurance proceeds | (19,199 | ) | - | |||||
Other investing activities | (1,000 | ) | - | |||||
Net cash provided by (used in) investing activities | 65,558 | (166,440 | ) | |||||
Cash flows from financing activities: | ||||||||
Repayments of long-term debt | (60,254 | ) | (12,209 | ) | ||||
Repayment of notes payable to former shareholders | (198 | ) | - | |||||
Proceeds from issuance of long-term debt | 40,000 | - | ||||||
Dividends paid to preferred shareholders | - | (2,480 | ) | |||||
Capital contribution from noncontrolling interest | 6,105 | 6,105 | ||||||
Dividends paid to noncontrolling interest | (1,723 | ) | (1,846 | ) | ||||
Principal payments on deferred satellite performance incentives | (4,276 | ) | (5,164 | ) | ||||
Other financing activities | - | 2,968 | ||||||
Net cash used in financing activities | (20,346 | ) | (12,626 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (1,211 | ) | (223 | ) | ||||
Net change in cash and cash equivalents | 141,293 | 187,602 | ||||||
Cash and cash equivalents, beginning of period | 187,485 | 247,790 | ||||||
Cash and cash equivalents, end of period | $ | 328,778 | $ | 435,392 | ||||
Supplemental cash flow information: | ||||||||
Interest paid, net of amounts capitalized | $ | 336,914 | 89,752 | |||||
Income taxes paid, net of refunds | 15,558 | 15,529 | ||||||
Supplemental disclosure of non-cash investing activities: | ||||||||
Accrued capital expenditures | 19,349 | 52,382 |
INTELSAT S.A. | ||||||||
UNAUDITED RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES | ||||||||
TO FREE CASH FLOW FROM (USED IN) OPERATIONS | ||||||||
($ in thousands) | ||||||||
Three Months Ended | Three Months Ended | |||||||
March 31, | March 31, | |||||||
2013 | 2014 | |||||||
Net cash provided by operating activities | $ | 97,292 | $ | 366,891 | ||||
Payments for satellites and other property and equipment (including capitalized interest) |
(167,154 | ) | (166,440 | ) | ||||
Free cash flow from (used in) operations | $ | (69,862 | ) | $ | 200,451 |
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). Free cash flow from (used in) operations excludes proceeds resulting from settlement of insurance claims, and is not a measurement of cash flow under 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 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 GAAP, and 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 or net income, determined in accordance with GAAP, as an indicator of Intelsat’s operating performance, or as an alternative to cash flows from operating activities, determined in accordance with GAAP, as an indicator of cash flows or as a measure of liquidity. |
Source:
Intelsat
Dianne VanBeber
Vice President, Investor Relations
and Communications
+1 703-559-7406
dianne.vanbeber@intelsat.com