News Release
Intelsat Announces Fourth Quarter and Full-Year 2017 Results
-
Fourth quarter revenue of
$538 million ; full-year 2017 revenue of$2,149 million -
Fourth quarter net loss attributable to
Intelsat S.A. of$90 million ;
2017 full-year net loss attributable toIntelsat S.A. of$179 million -
Fourth quarter Adjusted EBITDA of
$416 million or 77 percent of revenue; full-year 2017 Adjusted EBITDA of$1,665 million or 77 percent of revenue -
$7.8 billion contracted backlog, inclusive of approximately$1.0 billion in Intelsat EpicNG backlog, provides visibility for future revenue and cash flow -
Intelsat issues 2018 Guidance
For the year ended
“Our fourth quarter financial results,
Mr. Spengler continued, “Our goals in 2018 capitalize upon the better
performance and economics associated with the services delivered by our
high-throughput satellite Intelsat EpicNG fleet. Our position
will be further enhanced by completion of the Intelsat EpicNG
global deployment, which is planned to occur later this year with the
launch of the
Fourth Quarter and Full-Year 2017 Business Highlights
Network Services
Network services revenue was
Media
Media revenue was
Government
Government revenue was
Average Fill Rate
Intelsat’s average fill rate at
Satellite Launches
Contracted Backlog
At
Capital Structure Updates and Debt Transactions
On
On
The B-3 Tranche Term Loans have an applicable interest rate margin of 3.75% for LIBOR loans and 2.75% for base rate loans, among other terms. The B-4 Tranche Term Loans have an applicable interest rate margin of 4.50% per annum for LIBOR loans and 3.50% per annum for base rate loans, and the B-5 Tranche Term Loans have an interest rate of 6.625% per annum.
Expected Impact of Accounting Standards Codification Topic 606
In
We will adopt the new revenue standard effective
A complete discussion, including adjustments related to other revenue,
expense and balance sheet accounts for the expected impacts of ASC 606,
will be provided in our Annual Report on Form 20-F for the year ended
Implications of U.S. Tax Code Changes
On
We accounted for the tax effects of the Act in our 2017 financial
statements by re-measuring the deferred taxes of our U.S. subsidiaries
to reflect the lower tax rate. This resulted in a
The Act introduced some additional changes to the U.S. tax rules which
we are currently evaluating. As we are a
Financial Results for the Three Months Ended
On-Network revenues generally include revenue from any services delivered via our satellite or ground network. Off-Network and Other revenues generally include 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 revenues also include revenue from consulting and other services and sales of customer premises equipment.
Total On-Network Revenues reported a decline of
-
Transponder services reported an aggregate decrease of
$12.9 million , primarily due to a$9 .3 million decrease in revenue from network services customers and a$4.9 million decrease in revenue from media customers, partially offset by a$1.3 million increase from revenues for government applications. The network services decline was mainly due to non-renewals with wireless operators terminating services on wide-beam assets, in some cases for point-to-point connectivity as has been previously discussed. These were offset somewhat by increases in mobility services on new assets for aeronautical and maritime customers, of which$3.1 million represented delayed billings. The media decrease resulted primarily from reduced revenue from non-renewals for direct-to-home (“DTH”) services inLatin America , due to the relocation of a satellite asset, and lower revenue from distribution services inEurope , partially offset by DTH growth in theAsia-Pacific region and distribution growth in theNorth America region. -
Managed services reported an aggregate decrease of
$3.5 million , primarily due to a decrease of$5.0 million from network services customers largely for point-to-point trunking applications switching to fiber alternatives, and a$3.4 million decrease in revenue related to the previously announced end of a government maritime contract, partially offset by an increase of$4.6 million in revenue from network services managed broadband solutions for mobility applications and managed services for video applications.
Total Off-Network and Other Revenues reported an aggregate
increase of
-
Transponder, MSS and other Off-Network services reported an
aggregate increase of
$3.0 million , primarily due to recurring service fees related to media and network services customers and increased sales of MSS. -
Satellite-related services reported an aggregate increase of
$1.5 million , primarily due to approximately$2.4 million in revenues earned for the completion of a third-party satellite orbit-raising project and other professional services, offset somewhat by lower revenue from government-related professional services.
For the three months ended
Direct costs of revenue (excluding depreciation and amortization)
decreased by
Selling, general and administrative expenses decreased by
Depreciation and amortization expense decreased by
Interest expense, net consists of the interest expense we incur
together with gains and losses on interest rate caps (which reflect net
interest accrued on the interest rate caps as well as the change in
their fair value), offset by interest income earned and the amount of
interest we capitalize related to assets under construction. As of
Interest expense, net increased by
The non-cash portion of total interest expense, net was
Gain on early extinguishment of debt did not exist in the three
months ended
Other income, net was
Provision for income taxes was
Cash paid for income taxes, net of refunds, totaled
Net Income, Net Income per Diluted Common Share attributable to
Net loss attributable to
Net loss per diluted common share attributable to
EBITDA was
Adjusted EBITDA was
By Customer Set | ||||||||||||||||
($ in thousands) | ||||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||||
2016 | 2017 | |||||||||||||||
Network Services | $ | 221,947 | 40 | % | $ | 212,238 | 39 | % | ||||||||
Media | 228,353 | 42 | % | 226,218 | 42 | % | ||||||||||
Government | 93,211 | 17 | % | 90,117 | 17 | % | ||||||||||
Other | 7,183 | 1 | % | 9,567 | 2 | % | ||||||||||
$ | 550,694 | 100 | % | $ | 538,140 | 100 | % | |||||||||
By Service Type | ||||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||||
2016 | 2017 | |||||||||||||||
On-Network Revenues | ||||||||||||||||
Transponder services | $ | 397,924 | 72 | % | $ | 385,020 | 72 | % | ||||||||
Managed services | 104,288 | 19 | % | 100,766 | 19 | % | ||||||||||
Channel services | 1,934 | 0 | % | 1,306 | 0 | % | ||||||||||
Total on-network revenues | 504,146 | 92 | % | 487,092 | 91 | % | ||||||||||
Off-Network and Other Revenues | ||||||||||||||||
Transponder, MSS and other off-network services | 35,770 | 6 | % | 38,757 | 7 | % | ||||||||||
Satellite-related services | 10,778 | 2 | % | 12,291 | 2 | % | ||||||||||
Total off-network and other revenues | 46,548 | 8 | % | 51,048 | 9 | % | ||||||||||
Total | $ | 550,694 | 100 | % | $ | 538,140 | 100 | % | ||||||||
Free Cash Flow Used in Operations
Free cash flow used in operations1 was
Financial Outlook 2018
Today,
Revenue: We expect full-year 2018 revenue in a range of
- Stable to a decline of 3 percent in revenue from our media business;
- A decline of 5 percent to 8 percent in revenue from our network services business; and
- An increase of 2 percent to a decline of 1 percent in revenue from our government business.
Adjusted EBITDA:
Cash Taxes: We are currently evaluating the impact of the recently enacted U.S. tax reform. We expect to provide cash tax guidance later this year. Please see the section above “Implications of U.S. Tax Code Changes.”
Capital Expenditures:
We expect the following capital expenditure ranges:
-
2018:
$375 million to $425 million ; -
2019:
$425 million to $500 million ; and -
2020:
$375 million to $475 million .
Capital expenditure guidance for 2018 through 2020 assumes investment in seven satellites, three of which are in the design and manufacturing phase, or recently launched. The remaining four satellites are replacement satellites for which manufacturing contracts have not yet been signed. In addition to our satellites funded through capital expenditures, we plan to launch two partnership satellites in 2018.
By early 2019, we plan to have completed the investment program in the current series of Intelsat EpicNG high-throughput satellites and payloads, thereby increasing our total transmission capacity. By the conclusion of the Guidance Period at the end of 2020, the net number of transponder equivalents is expected to increase by a compound annual growth rate (“CAGR”) of approximately 5 percent, reflecting the net activity of satellites entering and leaving service during the Guidance Period.
Our capital expenditure guidance includes capitalized interest, which is
expected to average approximately
- - - - - - - - - - - - - - - - - - - - - - - - - - |
1In this release, financial measures are presented both in accordance with U.S. GAAP and also on a non-U.S. GAAP basis. EBITDA, Adjusted EBITDA (or “AEBITDA”), free cash flow from (used in) operations and related margins included in this release are non-U.S. GAAP financial measures. Please see the consolidated financial information below for information reconciling non-U.S. GAAP financial measures to comparable U.S. GAAP financial measures. |
Q4 and Full-Year 2017 Quarterly Commentary
Conference Call Information
Participants will have access to a replay of the conference call through
About
Intelsat Safe Harbor Statement:
Some of the information and statements contained in this earnings
release and certain oral statements made from time to time by
representatives of
INTELSAT S.A. |
||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||
($ in thousands, except per share amounts) |
||||||||||
Three Months December 31, 2016 |
Three Months
Ended December 31, 2017 |
|||||||||
Revenue | $ | 550,694 | $ | 538,140 | ||||||
Operating expenses: | ||||||||||
Direct costs of revenue (excluding depreciation and amortization) | 86,813 | 80,213 | ||||||||
Selling, general and administrative | 56,153 | 51,672 | ||||||||
Depreciation and amortization | 174,023 | 172,440 | ||||||||
Total operating expenses | 316,989 | 304,325 | ||||||||
Income from operations | 233,705 | 233,815 | ||||||||
Interest expense, net | 243,565 | 264,590 | ||||||||
Gain on early extinguishment of debt | 679,130 | - | ||||||||
Other income (expense), net | (1,018 | ) | 2,824 | |||||||
Income (loss) before income taxes | 668,252 | (27,951 | ) | |||||||
Provision for income taxes | 4,449 | 61,005 | ||||||||
Net income (loss) | 663,803 | (88,956 | ) | |||||||
Net income attributable to noncontrolling interest | (983 | ) | (995 | ) | ||||||
Net income (loss) attributable to Intelsat S.A. | $ | 662,820 | $ | (89,951 | ) | |||||
Net income (loss) per common share attributable to Intelsat S.A.: | ||||||||||
Basic | $ | 5.62 | $ | (0.75 | ) | |||||
Diluted | $ | 5.56 | $ | (0.75 | ) | |||||
INTELSAT S.A. |
||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||
($ in thousands, except per share amounts) |
||||||||||
Year Ended
December 31, |
Year Ended
December 31, |
|||||||||
(unaudited) | ||||||||||
Revenue | $ | 2,188,047 | $ | 2,148,612 | ||||||
Operating expenses: | ||||||||||
Direct costs of revenue (excluding depreciation and amortization) | 341,147 | 322,216 | ||||||||
Selling, general and administrative | 231,397 | 204,015 | ||||||||
Depreciation and amortization | 694,891 | 707,824 | ||||||||
Total operating expenses | 1,267,435 | 1,234,055 | ||||||||
Income from operations | 920,612 | 914,557 | ||||||||
Interest expense, net | 938,501 | 1,020,770 | ||||||||
Gain (loss) on early extinguishment of debt | 1,030,092 | (4,109 | ) | |||||||
Other income (expense), net | (2,105 | ) | 6,638 | |||||||
Income (loss) before income taxes | 1,010,098 | (103,684 | ) | |||||||
Provision for income taxes | 15,986 | 71,130 | ||||||||
Net income (loss) | 994,112 | (174,814 | ) | |||||||
Net income attributable to noncontrolling interest | (3,915 | ) | (3,914 | ) | ||||||
Net income (loss) attributable to Intelsat S.A. | $ | 990,197 | $ | (178,728 | ) | |||||
Net income (loss) per common share attributable to Intelsat S.A.: | ||||||||||
Basic | $ | 8.65 | $ | (1.50 | ) | |||||
Diluted | $ | 8.36 | $ | (1.50 | ) | |||||
INTELSAT S.A. |
||||||||||||
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO EBITDA |
||||||||||||
($ in thousands) |
||||||||||||
Three Months
December 31, |
Three Months
December 31, |
Year Ended
December 31, |
Year Ended
December 31, |
|||||||||
Net income (loss) | $ 663,803 | $ (88,956) | $ 994,112 | $ (174,814) | ||||||||
Add (Subtract): | ||||||||||||
Interest expense, net | 243,565 | 264,590 | 938,501 | 1,020,770 | ||||||||
Loss (gain) on early extinguishment of |
(679,130) | - | (1,030,092) | 4,109 | ||||||||
Provision for income taxes | 4,449 | 61,005 | 15,986 | 71,130 | ||||||||
Depreciation and amortization | 174,023 | 172,440 | 694,891 | 707,824 | ||||||||
EBITDA | $ 406,710 | $ 409,079 | $ 1,613,398 | $ 1,629,019 | ||||||||
EBITDA Margin | 74% | 76% | 74% | 76% | ||||||||
Note:
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
December 31, |
Three Months
December 31, |
Year Ended
December 31, |
Year Ended
December 31, |
|||||||||||||||||
Net income (loss) | $ | 663,803 | $ | (88,956 | ) | $ | 994,112 | $ | (174,814 | ) | ||||||||||
Add (Subtract): | ||||||||||||||||||||
Interest expense, net | 243,565 | 264,590 | 938,501 | 1,020,770 | ||||||||||||||||
Loss (gain) on early extinguishment of debt | (679,130 | ) | - | (1,030,092 | ) | 4,109 | ||||||||||||||
Provision for income taxes | 4,449 | 61,005 | 15,986 | 71,130 | ||||||||||||||||
Depreciation and amortization | 174,023 | 172,440 | 694,891 | 707,824 | ||||||||||||||||
EBITDA | 406,710 | 409,079 | 1,613,398 | 1,629,019 | ||||||||||||||||
Add: | ||||||||||||||||||||
Compensation and benefits | 5,194 | 2,147 | 23,222 | 15,995 | ||||||||||||||||
Unrealized (gain) on derivatives | - | (732 | ) | - | (732 | ) | ||||||||||||||
Non-recurring and other non-cash items | 5,486 | 5,904 | 14,050 | 20,321 | ||||||||||||||||
Adjusted EBITDA | $ | 417,390 | $ | 416,398 | $ | 1,650,670 | $ | 1,664,603 | ||||||||||||
Adjusted EBITDA Margin | 76 | % | 77 | % | 75 | % | 77 | % | ||||||||||||
Note:
Adjusted EBITDA is not a measure of financial performance under U.S. GAAP, and our Adjusted EBITDA 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. |
||||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||||
($ in thousands, except per share amounts) |
||||||||||
As of
December 31, 2016 |
As of
December 31, 2017 |
|||||||||
(unaudited) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 666,024 | $ | 525,215 | ||||||
Restricted cash | - | 16,176 | ||||||||
Receivables, net of allowance of $54,744 in 2016 and $29,669 in 2017 |
203,036 | 221,223 | ||||||||
Prepaid expenses and other current assets | 55,908 | 56,862 | ||||||||
Total current assets | 924,968 | 819,476 | ||||||||
Satellites and other property and equipment, net | 6,185,842 | 5,923,619 | ||||||||
Goodwill | 2,620,627 | 2,620,627 | ||||||||
Non-amortizable intangible assets | 2,452,900 | 2,452,900 | ||||||||
Amortizable intangible assets, net | 391,838 | 349,584 | ||||||||
Other assets | 365,834 | 443,830 | ||||||||
Total assets | $ | 12,942,009 | $ | 12,610,036 | ||||||
LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||||
Current liabilities: | ||||||||||
Accounts payable and accrued liabilities | $ | 215,987 | $ | 116,396 | ||||||
Taxes payable | 16,733 | 12,007 | ||||||||
Employee related liabilities | 50,178 | 29,328 | ||||||||
Accrued interest payable | 204,840 | 263,207 | ||||||||
Current portion of long-term debt | - | 96,572 | ||||||||
Deferred satellite performance incentives | 23,455 | 25,780 | ||||||||
Deferred revenue | 157,684 | 149,749 | ||||||||
Other current liabilities | 64,786 | 47,287 | ||||||||
Total current liabilities | 733,663 | 740,326 | ||||||||
Long-term debt, net of current portion | 14,198,084 | 14,112,086 | ||||||||
Deferred satellite performance incentives, net of current portion | 210,706 | 215,352 | ||||||||
Deferred revenue, net of current portion | 906,744 | 794,707 | ||||||||
Deferred income taxes | 168,445 | 48,434 | ||||||||
Accrued retirement benefits | 186,284 | 191,079 | ||||||||
Other long-term liabilities | 148,081 | 296,616 | ||||||||
Shareholders' deficit: | ||||||||||
Common shares; nominal value $0.01 per share | 1,180 | 1,196 | ||||||||
Paid-in capital | 2,156,911 | 2,173,367 | ||||||||
Accumulated deficit | (5,715,931 | ) | (5,894,659 | ) | ||||||
Accumulated other comprehensive loss | (76,305 | ) | (87,774 | ) | ||||||
Total Intelsat S.A. shareholders' deficit | (3,634,145 | ) | (3,807,870 | ) | ||||||
Noncontrolling interest | 24,147 | 19,306 | ||||||||
Total liabilities and shareholders' deficit | $ | 12,942,009 | $ | 12,610,036 | ||||||
INTELSAT S.A | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
($ in thousands) | ||||||||||
Year Ended
December 31, |
Year Ended
December 31, |
|||||||||
Cash flows from operating activities: | (unaudited) | |||||||||
Net income (loss) | $ | 994,112 | $ | (174,814 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 694,891 | 707,824 | ||||||||
Provision for doubtful accounts | 24,591 | (4,094 | ) | |||||||
Foreign currency transaction gain | (3,300 | ) | (876 | ) | ||||||
Loss on disposal of assets | 20 | 45 | ||||||||
Share-based compensation | 23,222 | 15,995 | ||||||||
Deferred income taxes | (9,737 | ) | 43,931 | |||||||
Amortization of discount, premium, issuance costs and related costs | 24,622 | 48,696 | ||||||||
(Gain) loss on early extinguishment of debt | (1,030,092 | ) | 4,109 | |||||||
Unrealized (gains) losses on derivative financial instruments | (764 | ) | 275 | |||||||
Amortization of actuarial loss and prior service credits for retirement benefits | 3,361 | 3,287 | ||||||||
Other non-cash items | 1,186 | (287 | ) | |||||||
Changes in operating assets and liabilities: | ||||||||||
Receivables | 6,478 | (14,333 | ) | |||||||
Prepaid expenses and other assets | (51,321 | ) | (24,776 | ) | ||||||
Accounts payable and accrued liabilities | 35,850 | (42,337 | ) | |||||||
Accrued interest payable | 47,065 | 58,367 | ||||||||
Deferred revenue | (58,796 | ) | (134,577 | ) | ||||||
Accrued retirement benefits | (9,385 | ) | (13,422 | ) | ||||||
Other long-term liabilities | (8,497 | ) | (8,783 | ) | ||||||
Net cash provided by operating activities | 683,506 | 464,230 | ||||||||
Cash flows from investing activities: | ||||||||||
Payments for satellites and other property and equipment (including capitalized interest) | (714,570 | ) | (461,627 | ) | ||||||
Purchase of cost method investments | (4,000 | ) | (25,744 | ) | ||||||
Capital contribution to unconsolidated affiliate | (12,019 | ) | (30,714 | ) | ||||||
Proceeds from insurance settlements | - | 49,788 | ||||||||
Net cash used in investing activities | (730,589 | ) | (468,297 | ) | ||||||
Cash flows from financing activities: | ||||||||||
Proceeds from issuance of long-term debt | 1,250,000 | 1,500,000 | ||||||||
Repayments of long-term debt | (328,944 | ) | (1,500,000 | ) | ||||||
Debt issuance costs | (38,393 | ) | (41,237 | ) | ||||||
Payment of premium on early extinguishment of debt | (32 | ) | - | |||||||
Payments on tender, debt exchange and consent | (293,276 | ) | (14 | ) | ||||||
Dividends paid to preferred shareholders | (4,959 | ) | - | |||||||
Other payments for satellites | (18,333 | ) | (35,396 | ) | ||||||
Principal payments on deferred satellite performance incentives | (17,429 | ) | (37,186 | ) | ||||||
Dividends paid to noncontrolling interest | (8,980 | ) | (8,755 | ) | ||||||
Restricted cash for collateral | - | (16,160 | ) | |||||||
Other financing activities | 1,942 | 890 | ||||||||
Net cash provided by (used in) financing activities | 541,596 | (137,858 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (30 | ) | 1,116 | |||||||
Net change in cash and cash equivalents | 494,483 | (140,809 | ) | |||||||
Cash and cash equivalents, beginning of period | 171,541 | 666,024 | ||||||||
Cash and cash equivalents, end of period | $ | 666,024 | $ | 525,215 | ||||||
Supplemental cash flow information: | ||||||||||
Interest paid, net of amounts capitalized | $ | 870,370 | $ | 915,627 | ||||||
Income taxes paid, net of refunds | 22,687 | 33,731 | ||||||||
Supplemental disclosure of non-cash investing activities: | ||||||||||
Accrued capital expenditures and payments for satellites | $ | 127,008 | $ | 38,450 | ||||||
Capitalization of deferred satellite performance incentives | 69,909 | 44,445 | ||||||||
Supplemental disclosure of non-cash financing activities: | ||||||||||
Debt financing and restricted cash received | $ | 480,200 | $ | - | ||||||
Restricted cash used | (480,200 | ) | - | |||||||
Repayment of long-term debt | 1,468,401 | - | ||||||||
Issuance of long-term debt | (731,884 | ) | - | |||||||
Discount on long-term debt | 212,660 | - | ||||||||
Write-off of debt issuance costs | (9,253 | ) | - | |||||||
Restricted cash - letters of credit collateral | - | 16,160 | ||||||||
INTELSAT S.A. |
||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||
($ in thousands) | ||||||||||
Three Months
December 31, |
Three Months
December 31, |
|||||||||
Cash flows from operating activities: | ||||||||||
Net income (loss) | $ | 663,803 | $ | (88,956 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 174,023 | 172,440 | ||||||||
Provision for doubtful accounts | (1,562 | ) | 1,797 | |||||||
Foreign currency transaction loss | 841 | 1,487 | ||||||||
Loss on disposal of assets | 20 | 19 | ||||||||
Share-based compensation | 5,194 | 2,147 | ||||||||
Deferred income taxes | (1,225 | ) | 54,541 | |||||||
Amortization of discount, premium, issuance costs and related costs | 6,979 | 12,505 | ||||||||
Gain on early extinguishment of debt | (679,130 | ) | - | |||||||
Unrealized losses on derivative financial instruments | - | 275 | ||||||||
Amortization of actuarial loss and prior service credits for retirement benefits | 840 | 750 | ||||||||
Other non-cash items | 19 | 14 | ||||||||
Changes in operating assets and liabilities: | ||||||||||
Receivables | 11,043 | (28,944 | ) | |||||||
Prepaid expenses and other assets | (11,491 | ) | (22,993 | ) | ||||||
Accounts payable and accrued liabilities | 39,231 | 1,110 | ||||||||
Accrued interest payable | (95,993 | ) | (31,823 | ) | ||||||
Deferred revenue | (21,279 | ) | (49,305 | ) | ||||||
Accrued retirement benefits | (2,237 | ) | (2,877 | ) | ||||||
Other long-term liabilities | (1,565 | ) | (49 | ) | ||||||
Net cash provided by operating activities | 87,511 | 22,138 | ||||||||
Cash flows from investing activities: | ||||||||||
Payments for satellites and other property and equipment (including capitalized interest) | (94,099 | ) | (57,505 | ) | ||||||
Purchase of cost method investments | - | (9,744 | ) | |||||||
Capital contributions to unconsolidated affiliate | (5,341 | ) | (7,359 | ) | ||||||
Proceeds from insurance settlements | - | 21,437 | ||||||||
Net cash used in investing activities | (99,440 | ) | (53,171 | ) | ||||||
Cash flows from financing activities: | ||||||||||
Repayments of long-term debt | (375 | ) | - | |||||||
Payment of premium on on early extinguishment of debt | (32 | ) | - | |||||||
Debt issuance costs | (12,584 | ) | (20,049 | ) | ||||||
Payments on tender, debt exchange, and consent | (259,267 | ) | - | |||||||
Principal payments on deferred satellite performance incentives | (4,695 | ) | (3,210 | ) | ||||||
Dividends paid to noncontrolling interest | (2,215 | ) | (2,159 | ) | ||||||
Restricted cash for collateral | - | 1,370 | ||||||||
Other financing activities | - | 212 | ||||||||
Net cash used in financing activities | (279,168 | ) | (23,836 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (746 | ) | (610 | ) | ||||||
Net change in cash and cash equivalents | (291,843 | ) | (55,479 | ) | ||||||
Cash and cash equivalents, beginning of period | 957,867 | 580,694 | ||||||||
Cash and cash equivalents, end of period | $ | 666,024 | $ | 525,215 | ||||||
Supplemental cash flow information: | ||||||||||
Interest paid, net of amounts capitalized | $ | 333,057 | $ | 283,951 | ||||||
Income taxes paid, net of refunds | 4,707 | 3,337 | ||||||||
Supplemental disclosure of non-cash investing activities: | ||||||||||
Accrued capital expenditures and payments for satellites | $ | 62,673 | $ | 21,156 | ||||||
Supplemental disclosure of non-cash financing activities: | ||||||||||
Repayment of long-term debt | $ | 1,468,401 | $ | - | ||||||
Issuance of long-term debt | (731,884 | ) | - | |||||||
Discount on long-term debt | 212,660 | - | ||||||||
Write-off of debt issuance costs | (9,253 | ) | - | |||||||
Restricted cash - letters of credit collateral | - | (1,370 | ) | |||||||
INTELSAT S.A. |
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UNAUDITED RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES |
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TO FREE CASH FLOW USED IN OPERATIONS |
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($ in thousands) |
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Three Months
December 31, |
Three Months
December 31, |
Year Ended
December 31, |
Year Ended
December 31, |
|||||||||||||||||
2016 | 2017 | 2016 | 2017 | |||||||||||||||||
|
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Net cash provided by operating activities | $ | 87,511 | $ | 22,138 | $ | 683,506 | $ | 464,230 | ||||||||||||
Payments for satellites and other property |
||||||||||||||||||||
and equipment (including capitalized
|
(94,099 | ) | (57,505 | ) | (714,570 | ) | (461,627 | ) | ||||||||||||
Payments for satellites from financing activities | - | - | (18,333 | ) | (35,396 | ) | ||||||||||||||
Free cash flow used in operations | $ | (6,588 | ) | $ | (35,367 | ) | $ | (49,397 | ) | $ | (32,793 | ) | ||||||||
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) from investing activities
and payments for satellites from financing activities. Free cash flow
from (used in) operations is not a measurement of cash flow under U.S.
GAAP.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180226005363/en/
Source:
Intelsat
Dianne VanBeber, +1 703-559-7406
Vice President,
Investor Relations
dianne.vanbeber@intelsat.com