News Release
Intelsat Reports Third Quarter 2015 Results
-
Third quarter revenue of
$580.8 million -
Third quarter net income attributable to
Intelsat S.A. of$78.0 million -
Net income per diluted common share of
$0.66 ; Adjusted net income per diluted common share of$0.85 -
EBITDA of
$452.0 million and Adjusted EBITDA of$458.1 million , or 79 percent of revenue -
$9.5 billion contracted backlog provides visibility for future revenue and cash flow - Estimated in-service dates for Intelsat EpicNG® program and other satellites remain unchanged
- Company provides update on Intelsat EpicNG commitments
-
Intelsat reaffirms its 2015 revenue and Adjusted EBITDA financial outlook
Spengler continued, "Our results are in line with our overall
expectations for 2015, with third quarter revenue of
"As we execute on our operational priorities, our top focus is placing
new satellites into service. Our
Third Quarter 2015 Business Highlights
Network Services comprised 45 percent of Intelsat’s total revenue
for the quarter ended
Media comprised 37 percent of the Intelsat’s total revenue for
the quarter ended
Government comprised 16 percent of Intelsat’s total revenue for
the quarter ended
Increasing Commitments on Next Generation Intelsat EpicNG Fleet
The company is successfully marketing its next generation fleet for
growing applications and expanding addressable markets. Since
Average Fill Rate
Intelsat’s average fill rate on our approximately 2,150 station-kept
transponders was 75 percent at
Satellite Launches
We had no material changes to our launch schedule since our last
earnings report on
Contracted Backlog
At
Capital Structure
An important priority for the company is ensuring that we manage the
fluidity of our capital structure, maintaining our flexibility to be
able to manage debt maturities as we deem appropriate. During the third
quarter of 2015, our subsidiary,
Financial Results for the Three Months ended
Intelsat’s revenues are generated from the provision of On-Network services, or services delivered via our satellite or ground network, and Off-Network services, derived from sales of services sourced from other operators, such as Mobile Satellite Services (“MSS”). Effective first quarter 2015, we expanded our definition of on-network services to include commitments for third-party capacity, generally long-term in nature, that we integrate and market as part of our owned infrastructure. In addition, effective first quarter 2015, certain revenues have been reclassified between transponder services and managed services across our customer sets in order to better reflect the nature of the underlying business.
Total On-Network Revenue decreased by
-
Transponder services reported an aggregate decrease of
$19.0 million , primarily due to a$22.4 million decrease in revenue from network services customers, partially offset by a$2.8 million increase from media customers. The network services decline was mainly due to reduced volumes resulting from non-renewals of point-to-point connectivity and certain cellular backhaul services, together with non-renewals and renewal pricing at lower rates of enterprise network services. The media increase resulted primarily from higher volumes of direct-to-home (“DTH”) services delivered inLatin America , offset in part by lower volumes due to certain North American customers migrating to new compression standards and single format distribution. The aggregate decrease also reflects$7.1 million in currency-related reductions of our contracts inBrazil andRussia , across our network services and media businesses. -
Managed services reported an aggregate decrease of
$1.3 million , largely due to a$2.5 million decrease in revenue from media customers for occasional use services and video solutions. -
Channel reported an aggregate decrease of
$3.1 million due to the continued migration of international point-to-point satellite traffic to fiber optic cable, a trend we expect will continue.
Total Off-Network and Other Revenue decreased by
-
Transponder, MSS and other off-network services reported an
aggregate decrease of
$3.3 million , primarily due to declines in services for government applications, largely related to reduced sales of third party off-network transponder services. -
Satellite-related services reported an aggregate decrease of
$1.0 million , primarily due to reduced revenue from support for third-party satellites and other services.
Changes in operating expenses, interest expense, net, and other
significant income statement items for the three months ended
Direct costs of revenue (excluding depreciation and amortization)
decreased by
Selling, general and administrative expenses increased by
Depreciation and amortization expense increased by
Interest expense, net consists of the gross 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 decreased by
The decrease in interest expense, net was principally due to the following:
-
a net decrease of
$11.3 million as a result of our debt redemption in 2014; and -
a decrease of
$4.3 million resulting from higher capitalized interest of$23.6 million for the three months endedSeptember 30, 2015 , as compared to$19.3 million for the three months endedSeptember 30, 2014 , resulting from increased levels of satellites and related assets under construction.
The non-cash portion of interest expense, net was
Other expense, net increased by
Provision for (benefit from) income taxes reflects a benefit from
income taxes of
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 attributable to
By Customer Set | ||||||||||||
Three Months Ended | Three Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2015 | |||||||||||
Network Services | $ | 287,787 | 47 | % | $ | 263,111 | 45 | % | ||||
Media | 216,114 | 36 | % | 216,618 | 37 | % | ||||||
Government | 97,941 | 16 | % | 94,704 | 16 | % | ||||||
Other | 6,783 | 1 | % | 6,414 | 1 | % | ||||||
$ | 608,625 | 100 | % | $ | 580,847 | 100 | % | |||||
By Service Type | ||||||||||||
Three Months Ended | Three Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2015 | |||||||||||
On-Network Revenues | ||||||||||||
Transponder services | $ | 439,861 | 72 | % | $ | 420,855 | 72 | % | ||||
Managed services | 102,600 | 17 | % | 101,295 | 17 | % | ||||||
Channel services | 14,523 | 2 | % | 11,386 | 2 | % | ||||||
Total on-network revenues | 556,984 | 92 | % | 533,536 | 92 | % | ||||||
Off-Network and Other Revenues | ||||||||||||
Transponder, MSS and other off-network services | 40,984 | 7 | % | 37,694 | 6 | % | ||||||
Satellite-related services | 10,657 | 2 | % | 9,617 | 2 | % | ||||||
Total off-network and other revenues | 51,641 | 8 | % | 47,311 | 8 | % | ||||||
Total | $ | 608,625 | 100 | % | $ | 580,847 | 100 | % | ||||
Free Cash Flow From Operations1
Free cash flow from operations was
Payments for satellites and other property and equipment during the
three months ended
Financial Outlook 2015
Today,
Revenue:
Adjusted EBITDA:
Capital Expenditures:
-
2015:
$675 million to $750 million ; -
2016:
$725 million to $800 million ; and -
2017:
$725 million to $825 million .
Capital expenditure guidance assumes investment in eleven satellites in the concept, design or manufacturing phase for the three calendar year “Guidance Period” of 2015 through 2017. In addition, two custom payloads are being built for us on third-party satellites, which will not require capital expenditure. Of the nine satellites in our capital expenditure guidance, we expect to launch four satellites in 2016 and two satellites in 2017, and will continue work on the three remaining satellites for which construction will extend beyond the Guidance Period.
We expect to launch two of our new Intelsat EpicNG high-throughput satellites in 2016, increasing our total transmission capacity. By the conclusion of the Guidance Period in 2017, the net number of transponder equivalents will increase by a compound annual growth rate (“CAGR”) of 7.5 percent as a result of the satellites entering service during the Guidance Period. The growth also includes capacity from one of the customized payloads noted above, which we expect will be launched in 2016.
Our capital expenditures guidance includes capitalized interest.
Prepayments: During the Guidance Period, we expect to receive significant customer prepayments under our existing customer service contracts.
We expect prepayment ranges of:
-
2015:
$125 million to $150 million ; -
2016:
$0 to $25 million ; and - 2017: 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 guidance provided above,
Cash Taxes: We expect cash taxes to be approximately 1.5 percent of revenue for each of the next several years.
- - - - - - - - - - - - - - - - - - - - - - - - - -
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 operations, Adjusted net income per diluted
common share attributable to
Q3 2015 Quarterly Commentary
As previously announced,
Conference Call Information
Participants will have access to a replay of the webcast and conference
call through
About
Intelsat Safe Harbor Statement:
Statements in this news release and certain oral statements from time to time by representatives of the company 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 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 and customer prepayment guidance over the next several years; our expectations as to the increased number of transponder equivalents on our fleet over the next several years; our expectations as to the level of our cash tax payments over the next several years; and our debt repayment guidance.
The forward-looking statements reflect
Because actual results could differ materially from
INTELSAT S.A. |
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||
($ in thousands, except per share amounts) |
||||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
September 30, | September 30, | |||||||
2014 | 2015 | |||||||
Revenue | $ | 608,625 | $ | 580,847 | ||||
Operating expenses: | ||||||||
Direct costs of revenue (excluding depreciation and amortization) | 84,316 | 77,936 | ||||||
Selling, general and administrative | 43,976 | 46,503 | ||||||
Depreciation and amortization | 169,522 | 171,409 | ||||||
Total operating expenses | 297,814 | 295,848 | ||||||
Income from operations | 310,811 | 284,999 | ||||||
Interest expense, net | 234,535 | 220,774 | ||||||
Other expense, net | (2,527 | ) | (4,407 | ) | ||||
Income before income taxes | 73,749 | 59,818 | ||||||
Provision for (benefit from) income taxes | 5,129 | (19,149 | ) | |||||
Net income | 68,620 | 78,967 | ||||||
Net income attributable to noncontrolling interest | (996 | ) | (985 | ) | ||||
Net income attributable to Intelsat S.A. | $ | 67,624 | $ | 77,982 | ||||
Cumulative preferred dividends | - | - | ||||||
Net income attributable to common shareholders | $ | 67,624 | $ | 77,982 | ||||
Net income per common share attributable to Intelsat S.A.: | ||||||||
Basic | $ | 0.63 | $ | 0.73 | ||||
Diluted | $ | 0.58 | $ | 0.66 | ||||
INTELSAT S.A. | ||||||||
UNAUDITED RECONCILIATION OF NET INCOME TO EBITDA | ||||||||
($ in thousands) | ||||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
September 30, | September 30, | |||||||
2014 | 2015 | |||||||
Net income | $ | 68,620 | $ | 78,967 | ||||
Add: | ||||||||
Interest expense, net | 234,535 | 220,774 | ||||||
Provision for (benefit from) income taxes | 5,129 | (19,149 | ) | |||||
Depreciation and amortization | 169,522 | 171,409 | ||||||
EBITDA | $ | 477,806 | $ | 452,001 | ||||
EBITDA Margin | 79 | % | 78 | % | ||||
Note: |
Intelsat calculates a measure called EBITDA to assess the operating performance of Intelsat S.A. EBITDA consists of earnings before net interest, 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 or net income, 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 | |||||||
September 30, | September 30, | |||||||
2014 | 2015 | |||||||
Net income | $ | 68,620 | $ | 78,967 | ||||
Add: | ||||||||
Interest expense, net | 234,535 | 220,774 | ||||||
Provision for (benefit from) income taxes | 5,129 | (19,149 | ) | |||||
Depreciation and amortization | 169,522 | 171,409 | ||||||
EBITDA | 477,806 | 452,001 | ||||||
Add: | ||||||||
Compensation and benefits | 5,077 | 6,144 | ||||||
Non-recurring and other non-cash items | 2,421 | (30 | ) | |||||
Adjusted EBITDA | $ | 485,304 | $ | 458,115 | ||||
|
||||||||
Adjusted EBITDA Margin | 80 | % | 79 | % | ||||
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 or net income, 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 PER DILUTED COMMON SHARE | ||||||||
($ in thousands, except per share amounts) | ||||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
September 30,2014 | September 30,2015 | |||||||
Numerator (in thousands): | ||||||||
Net income attributable to Intelsat S.A. | $ | 67,624 | $ | 77,982 | ||||
Add (Subtract): | ||||||||
Compensation and benefits (1) | 5,077 | 6,144 | ||||||
(Gain) loss on derivative financial instruments (2) | (579 | ) | 889 | |||||
Amortization (3) | 17,058 | 15,054 | ||||||
Non-recurring and other non-cash items (4) | 2,421 | (30 | ) | |||||
Income tax effect of adjustments above & other discrete tax items (5) |
- | (154 | ) | |||||
Adjusted net income attributable to Intelsat S.A. | 91,601 | 99,885 | ||||||
Less: Preferred share dividends declared | - | - | ||||||
Adjusted net income attributable to common shareholders |
$ | 91,601 | $ | 99,885 | ||||
Denominator (in millions): | ||||||||
Basic weighted average shares outstanding | 106.5 | 107.3 | ||||||
Weighted average dilutive shares outstanding: | ||||||||
Preferred shares | 9.6 | 9.6 | ||||||
Employee compensation related shares including options and restricted share units |
0.5 | 0.5 | ||||||
Adjusted diluted weighted average shares outstanding | 116.6 | 117.4 | ||||||
Adjusted net income per diluted common share attributable to common shareholders |
$ | 0.79 | $ | 0.85 | ||||
Note: |
||
Management evaluates financial performance in part based on adjusted net income per diluted common share attributable to common shareholders. This measure consists of net income per diluted common share attributable to common shareholders 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 per diluted common share attributable to common shareholders 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) | 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 interest expense, net. | |
(3) | 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. | |
(4) | Reflects certain non-recurring gains and losses and non-cash items, including the following: non-cash expense related to the recognition of expense on a straight-line basis for certain office space leases; development expenses; expenses associated with the relocation of our administrative headquarters and primary satellite operations center; severance, retention and relocation payments; 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. | |
(5) | Represents the income tax impact of the various adjustments. | |
INTELSAT S.A. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
($ in thousands, except per share amounts) | ||||||||
As of | As of | |||||||
December 31, | September 30, | |||||||
2014 | 2015 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 123,147 | $ | 327,774 | ||||
Receivables, net of allowance of $35,174 in 2014 and $39,251 in 2015 | 220,458 | 229,789 | ||||||
Deferred income taxes | 76,315 | 44,936 | ||||||
Prepaid expenses and other current assets | 35,945 | 40,510 | ||||||
Total current assets | 455,865 | 643,009 | ||||||
Satellites and other property and equipment, net | 5,880,264 | 5,890,375 | ||||||
Goodwill | 6,780,827 | 6,780,827 | ||||||
Non-amortizable intangible assets | 2,458,100 | 2,458,100 | ||||||
Amortizable intangible assets, net | 500,545 | 455,384 | ||||||
Other assets | 393,754 | 413,027 | ||||||
Total assets | $ | 16,469,355 | $ | 16,640,722 | ||||
LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 151,793 | $ | 92,212 | ||||
Taxes payable | 8,974 | 7,084 | ||||||
Employee related liabilities | 44,815 | 33,738 | ||||||
Accrued interest payable | 161,495 | 311,399 | ||||||
Current portion of long-term debt | 49,000 | - | ||||||
Deferred satellite performance incentives | 20,957 | 20,143 | ||||||
Deferred revenue | 117,401 | 104,928 | ||||||
Other current liabilities | 72,629 | 70,494 | ||||||
Total current liabilities | 627,064 | 639,998 | ||||||
Long-term debt, net of current portion | 14,762,142 | 14,759,153 | ||||||
Deferred satellite performance incentives, net of current portion | 163,360 | 150,421 | ||||||
Deferred revenue, net of current portion | 967,318 | 1,045,152 | ||||||
Deferred income taxes | 211,680 | 189,692 | ||||||
Accrued retirement benefits | 262,906 | 232,841 | ||||||
Other long-term liabilities | 217,452 | 155,249 | ||||||
Commitments and contingencies | ||||||||
Shareholders' deficit: | ||||||||
Common shares; nominal value $0.01 per share | 1,067 | 1,072 | ||||||
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 | 2,117,898 | 2,129,052 | ||||||
Accumulated deficit | (2,782,741 | ) | (2,589,822 | ) | ||||
Accumulated other comprehensive loss | (112,527 | ) | (102,048 | ) | ||||
Total Intelsat S.A. shareholders' deficit | (776,268 | ) | (561,711 | ) | ||||
Noncontrolling interest | 33,701 | 29,927 | ||||||
Total liabilities and shareholders' deficit | $ | 16,469,355 | $ | 16,640,722 | ||||
INTELSAT S.A. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
($ in thousands) | ||||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
September 30, | September 30, | |||||||
2014 | 2015 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 68,620 | $ | 78,967 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 169,522 | 171,409 | ||||||
Provision for doubtful accounts | 802 | 1,648 | ||||||
Foreign currency transaction loss | 3,094 | 6,663 | ||||||
Loss on disposal of assets | 360 | - | ||||||
Share-based compensation | 4,970 | 6,026 | ||||||
Deferred income taxes | (1,703 | ) | (5,766 | ) | ||||
Amortization of discount, premium, issuance costs and other non-cash items | 5,720 | 5,057 | ||||||
Unrealized gains on derivative financial instruments | (7,764 | ) | (6,033 | ) | ||||
Amortization of actuarial loss and prior service credits for retirement benefits | 2,537 | 1,287 | ||||||
Other non-cash items | 36 | (157 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Receivables | 15,879 | (12,461 | ) | |||||
Prepaid expenses and other assets | (11,666 | ) | (296 | ) | ||||
Accounts payable and accrued liabilities | (7,239 | ) | (327 | ) | ||||
Accrued interest | 160,592 | 149,924 | ||||||
Deferred revenue | 46,439 | 44,174 | ||||||
Accrued retirement benefits | (6,042 | ) | (1,632 | ) | ||||
Other long-term liabilities | 9,809 | (31,230 | ) | |||||
Net cash provided by operating activities | 453,966 | 407,253 | ||||||
Cash flows from investing activities: | ||||||||
Payments for satellites and other property and equipment (including capitalized interest) | (150,500 | ) | (152,130 | ) | ||||
Other investing activities | 95 | 3 | ||||||
Net cash used in investing activities | (150,405 | ) | (152,127 | ) | ||||
Cash flows from financing activities: | ||||||||
Repayments of long-term debt | (12,209 | ) | (155,000 | ) | ||||
Proceeds from drawdown of long-term debt | - | 130,000 | ||||||
Dividends paid to preferred shareholders | (2,480 | ) | (2,480 | ) | ||||
Capital contribution from noncontrolling interest | 6,104 | - | ||||||
Dividends paid to noncontrolling interest | (2,553 | ) | (2,240 | ) | ||||
Principal payments on deferred satellite performance incentives | (4,155 | ) | (3,830 | ) | ||||
Other financing activities | 567 | (1,543 | ) | |||||
Net cash used in financing activities | (14,726 | ) | (35,093 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (3,094 | ) | (6,663 | ) | ||||
Net change in cash and cash equivalents | 285,741 | 213,370 | ||||||
Cash and cash equivalents, beginning of period | 370,292 | 114,404 | ||||||
Cash and cash equivalents, end of period | $ | 656,033 | $ | 327,774 | ||||
Supplemental cash flow information: | ||||||||
Interest paid, net of amounts capitalized | $ | 75,988 | $ | 71,797 | ||||
Income taxes paid, net of refunds | 6,826 | 3,130 | ||||||
Supplemental disclosure of non-cash investing activities: | ||||||||
Accrued capital expenditures | $ | 15,092 | $ | (19,617 | ) | |||
INTELSAT S.A. | ||||||||
UNAUDITED RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES | ||||||||
TO FREE CASH FLOW FROM OPERATIONS | ||||||||
($ in thousands) | ||||||||
Three Months Ended | Three Months Ended | |||||||
September 30, | September 30, | |||||||
2014 | 2015 | |||||||
Net cash provided by operating activities | $ | 453,966 | $ | 407,253 | ||||
Payments for satellites and other property and equipment (including capitalized interest) |
(150,500 | ) | (152,130 | ) | ||||
Free cash flow from operations | $ | 303,466 | $ | 255,123 | ||||
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. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20151029005317/en/
Source:
Intelsat
Dianne VanBeber
Vice President, Investor Relations
and Corporate Communications
+1 703-559-7406
dianne.vanbeber@intelsat.com