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|Intelsat Announces Preliminary Fourth Quarter and Full Year 2015 Results|
The company expects to incur a non-cash impairment charge resulting in a
substantial reduction of our
At present, we believe this process will be completed in the next two
weeks after which we would expect to file our Annual Report on Form 20-F
for the year ended
All three months ended and year ended 2015 financial information provided in this release is preliminary and presented prior to giving effect to any impairment charges we ultimately incur.
The company reported preliminary net income attributable to
For the year ended
Mr. Spengler added, “Our backlog continues to provide the visibility
into future revenue and cash flows that allows us to invest in our fleet
and pursue our long-term business strategy. Year-end 2015 backlog of
Preliminary Fourth Quarter and Full Year 2015 Business Highlights
Preliminary Network Services total revenue for the three months ended
Preliminary Media total revenue is
Preliminary Government total revenue is
Average Fill Rate
Intelsat’s average fill rate on our approximately 2,150 station-kept
transponders was 76 percent at
Capital Markets and Debt Transactions
During the three months ended
Preliminary Financial Results for the Three Months Ended
On-Network revenue generally includes revenue from any 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 reported a decline of
Total Off-Network and Other Revenue reported an aggregate
For the three month period ended
Direct costs of revenue is expected to decrease by
Selling, general and administrative expenses is expected to
Depreciation and amortization expense is expected to increase by
Interest expense, net consists of the interest expense we incur
together with gains and losses on interest rate swaps, which will
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.
The decrease in interest expense, net is principally due to the following:
We expect the non-cash portion of total interest expense, net to be
Gain (loss) on early extinguishment of debt is expected to be a
Provision for income taxes is expected to be
Cash paid for income taxes, net of refunds, is expected to total
Preliminary EBITDA, Adjusted EBITDA, Net Income, Net Income per
Diluted Common Share attributable to
EBITDA is expected to be
Adjusted EBITDA is expected to be
Net income attributable to
Net income per diluted common share attributable to
Adjusted net income per diluted common share attributable to
Free Cash Flow from (used in) Operations
Preliminary free cash flow used in operations1 is
Payments for satellites and other property and equipment during the
three months ended
Financial Outlook 2016
We expect capital expenditures ranges of:
Capital expenditure guidance for 2016 through 2018 assumes investment in
ten satellites in the manufacturing and design phase, or recently
launched, during the Guidance Period. In addition, we have capacity on
three other satellites in development, including custom payloads being
built for us on two third-party satellites, which will not require
capital expenditure, as well as our Horizons 3e joint venture, which is
building a satellite for the
We are scheduled to launch three of our new Intelsat EpicNG high throughput satellites during the 2016 through 2018 Guidance Period, increasing our total transmission capacity. By the conclusion of the Guidance Period at the end of 2018, the net number of transponder equivalents is expected to increase by a compound annual growth rate (“CAGR”) of approximately 10 percent as a result of the satellites entering service during the Guidance Period.
Our capital expenditures guidance includes capitalized interest.
Prepayments: We do not expect further significant prepayments, and as a result will no longer provide guidance on this financial metric.
The annual classification of capital expenditure and prepayments could be affected by the timing of achievement of contract, satellite manufacturing, launch and other milestones.
There were no prepayments during the three months ended
Cash Taxes: Annual 2016 cash taxes are expected to total
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1In this release, financial measures are presented both in accordance with GAAP and also on a non-GAAP basis. Prior to the effect of any impairments, EBITDA, Adjusted EBITDA (or “AEBITDA”), 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.
Q4 2015 Quarterly Commentary
As previously announced,
Conference Call Information
Special Note Regarding Expected Financial Results:
We have not yet filed our Annual Report on Form 20-F for the year ended
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 expectation that we will incur an impairment charge that will result in a substantial reduction of our goodwill and other intangible assets; our expectation that the launches of our satellites in the future will position us for growth; 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; and our expectations as to the level of our cash tax payments in the future.
The forward-looking statements reflect
Because actual results could differ materially from
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.
The EBITDA and margin information presented above, with respect to the 2015 periods, is prior to the effect of any impairments.
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.
The Adjusted EBITDA and margin information presented above, with respect to the 2015 periods, is prior to the effect of any impairments.
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.
The free cash flow from (used in) operations information presented above, with respect to the 2015 periods, is prior to the effect of any impairments.