News Release
Intelsat Reports First Quarter 2013 Results
“Total revenue grew 2% in the first quarter of 2013, as compared to the
year-earlier quarter. On-network revenue grew 4% in the period,
reflecting solid demand for transponder services and the benefit of
refreshed video neighborhood capacity and mobility capacity provided by
our 2012 launch campaign,” McGlade continued. “In addition, managed
services revenue increased, reflecting demand for our global hybrid
infrastructure of terrestrial and satellite capacity, particularly for
mobility applications for network services customers. New customer and
renewal activity remains steady, and our backlog, at
“I am pleased to welcome common and preferred stockholders following our
IPO in
Business Highlights
-
Intelsat’s network services business, which provides broadband
infrastructure for fixed and wireless telecommunications and
enterprise and mobility applications, accounted for 46 percent of
Intelsat’s total first quarter 2013 revenue, at
$298.3 million , flat as compared to the first quarter 2012. In the first quarter 2013, growth in transponder and managed services revenue from broadband network services for maritime customers was offset by reduced revenue from channel services, which has been declining over many years due to migration to fiber, and off-network services, reflecting customer premises equipment (“CPE”) revenue received in the first quarter 2012 but not in 2013.
Enterprise data networks useIntelsat capacity services to deliver broadband connectivity across broad geographic regions or in remote regions. In the first quarter, contracts signed for this application included:-
The United Nations renewed its contract withIntelsat for transponder services onIntelsat 25,Intelsat 906 andIntelsat 907, and IntelsatOneSM Internet trunking circuits transiting Intelsat’s teleports inGermany andMaryland . These services are used to supportUnited Nations peacekeeping operations around the world. -
US-based ITC Global, a leading satellite network service provider
for many of the world’s largest mining, energy, and maritime
companies, signed a multi-year agreement for managed network
services leveraging Intelsat’s teleport in
Maryland , and capacity onIntelsat 25 in support of a private data network for mining and other applications in remote areas of sub-Saharan Africa.
Latin America remains strong. In the first quarter of 2013, contract signings fromLatin America included:-
A unit of
Brazil -based telecommunications provider, Oi, signed a multi-year renewal agreement onIntelsat 905 to support telephony services inBrazil . -
Ecuador -based Corporación Nacional de Telecomunicaciones (CNT) E.P., Ecuador’s public telecommunications company, recently signed a new multi-transponder agreement onIntelsat 23 to support multiple applications inEcuador . The services include rural Internet access, Internet trunking, fixed and mobile telephony in the Galapagos Islands, and corporate VSAT services. -
Brazil -based União Norte do Paraná de Ensino Ltda. (UNOPAR), one of the largest Brazilian universities, recently renewed its agreement withIntelsat for capacity on Galaxy 28 to support distance learning networks across the country.
-
-
Intelsat’s media business, which provides satellite capacity for the
transmission of entertainment, news, sports and educational
programming for approximately 300 broadcasters, content providers and
direct-to-home (DTH) platform operators worldwide, accounted for 34
percent of our revenue for the quarter ended March 31, 2013. First
quarter revenue of
$223.2 million increased six percent as compared to the first quarter of 2012, as service volume increased for DTH and cable and broadcast program distribution applications.
We signed new and expanded contracts with media customers in the first quarter, including:-
London -basedViewSat Limited , a leading provider of video distribution services, recently signed a new agreement for capacity onIntelsat 20 at 68.5° East, our premier video neighborhood serving the African region. ViewSat will use the capacity to expand its free-to-air DTH services acrossAfrica . -
Discovery Communications , the world's premier nonfiction media company, reaching more than 1.8 billion cumulative subscribers in 218 countries and territories, has renewed its agreement withIntelsat to use teleport and disaster recovery services from Intelsat’sMaryland , teleport facility. The agreement provides Discovery with back-up protection for over 40 channels on its domestic distribution platform.
-
-
Intelsat’s government business, which provides highly customized,
secure commercial satellite-based solutions to civilian agencies and
the U.S. military defense sector, accounted for 19 percent of our
revenue for the quarter ended March 31, 2013. First quarter revenue of
$125.8 million decreased two percent as compared to first quarter 2012 results, as declines in lower-margin off-network revenue more than offset increased on-network transponder services revenue from the second quarter 2012 entry into service of a payload hosted for the Australia Defence Force and increased sales of managed services. With respect to the effects of sequestration, the pace of RFP issuance and awards that would typically signal business activity has slowed, and visibility remains extremely limited. -
In March and April of 2013,
Intelsat completed a number of capital markets activities.-
In
March 2013 , our subsidiaryIntelsat (Luxembourg) S.A. (“Intelsat Luxembourg”) priced$3.5 billion aggregate principal amount of senior notes, including$500.0 million of 6.75% senior notes due 2018,$2.0 billion of 7.75% senior notes due 2021 and$1.0 billion of 8.125% senior notes due 2023. InApril 2013 , we used the net proceeds from the sale of the notes primarily to redeem all of the$2.5 billion principal of Intelsat Luxembourg’s 11.5/12.5% senior PIK election notes due 2017 and$754.8 million principal amount of Intelsat Luxembourg’s 11.25% senior notes due 2017. -
In
April 2013 , we also announced that we intend to redeem onMay 23, 2013 , a further$366.4 million of Intelsat Luxembourg’s 11.25% senior notes due 2017 using the net proceeds of an insurance claim. -
On
April 23, 2013 , we completed the initial public offering of 22.2 million common shares and a concurrent offering of 3.5 million Series A mandatory convertible junior non-voting preferred shares. The shares trade on theNew York Stock Exchange ; the common stock under the ticker symbol “I” and the preferred stock under the ticker symbol “I PR A.” Net proceeds received were approximately$550 million after underwriting discounts and commissions, following exercise of the underwriters’ overallotment options in both offerings. In April, we used a portion of the proceeds from the stock offerings to prepay$138.2 million of indebtedness outstanding under ourIntelsat Jackson Holdings S.A. $810.9 million senior unsecured credit agreement and announced we will use a portion of the remaining proceeds to fully redeem ourIntelsat Investments S.A. (formerlyIntelsat S.A. ) 6.5% senior notes due 2013. -
In the second quarter of 2013,
Intelsat expects to recognize a total combined loss on early extinguishment of debt of approximately$256 million in connection with the redemption and prepayment of debt transactions described above.
-
In
-
Intelsat’s average fill rate on our approximately 2,175 station-kept
transponders was 78 percent at
March 31, 2013 , reflecting a slight increase in net new transponders resulting from the entry into service of recently launched satellites and an increase in active transponders due to new contract activity.
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 revenue for the three months ended
On-Network Revenue:
-
Transponder services—an aggregate increase of
$21.8 million , primarily due to an$11.4 million increase in revenue from growth in capacity services sold to media customers largely in theLatin America andCaribbean and theAsia-Pacific regions, a$5.4 million increase in revenue from capacity services sold for government applications and a$5.1 million increase in revenue from network services customers. -
Managed services—an aggregate increase of
$6.4 million , largely due to an increase in revenue from new IntelsatOneSM network broadband services for mobility applications, primarily for maritime customers in theEurope region, and an increase in revenue for private line solutions for a government customer for use on a global basis. -
Channel—an aggregate decrease of
$4.7 million related to a continued decline due to the migration of international point-to-point satellite traffic to fiber optic cable, a trend that we expect will continue.
Off-Network and Other Revenue:
-
Transponder, MSS and other off-network services—an aggregate
decrease of
$15.5 million , primarily due to declines in sales of CPE for network services and government applications and declines in resale of mobile satellite services (“MSS”), and sales of off-network transponder services for government applications. -
Satellite-related services—an aggregate increase of
$2.8 million , primarily due to higher fees for government professional services and flight operations support for third-party satellites.
Changes in direct costs of revenue, selling, general and administrative expenses, depreciation and amortization, income from operations, interest expense, net, and other significant income-statement items are described below.
-
Direct costs of revenue decreased by
$7.4 million , or 7%, to$97.6 million for the three months endedMarch 31, 2013 , as compared to the three months endedMarch 31, 2012 . The decrease was primarily due to$8.4 million of higher cost of sales for CPE during the first quarter of 2012, as well as a$4.6 million decrease in the cost of MSS and off-network fixed-satellites services (“FSS”) capacity purchased related to solutions sold to our government customer set. These decreases were offset by a$3.5 million increase in other direct costs related to our delivery of professional services and costs related to a joint venture. -
Selling, general and administrative expenses increased by
$7.0 million , or 14%, to$58.2 million for the three months ended March 31, 2013, as compared to the three months endedMarch 31, 2012 . This was primarily due to a$6.1 million increase in bad debt expense related primarily to a few isolated accounts and$2.1 million in higher professional fees, partially offset by$1.1 million of lower non-cash stock compensation costs associated with our amended 2008 Share Incentive Plan. -
Depreciation and amortization expense increased by $0.5 million to
$187.4 million for the three months endedMarch 31, 2013 , as compared to the three months endedMarch 31, 2012 . This increase primarily resulted from the impact of satellites placed into service during 2012, largely offset by lower depreciation expense due to the timing of certain satellites becoming fully depreciated and changes in estimated remaining useful lives of certain satellites, together with variation from year to year in the expected pattern of consumption of amortizable intangible assets. -
Our income from operations increased by
$18.8 million , or 6%, to$310.0 million for the three months endedMarch 31, 2013 , compared to$291.3 million for the three months endedMarch 31, 2012 , due primarily to the effects described above. Income from operations was further affected by an$8.0 million improvement in losses recognized on our derivative financial instruments for the three months endedMarch 31, 2013 , related to the net loss on our interest rate swaps, which reflects interest expense accrued on the interest rate swaps as well as the change in fair value. For the three months endedMarch 31, 2013 , we recorded a loss of$1.9 million , as compared to a loss on derivative financial instruments of$9.9 million for the three months endedMarch 31, 2012 . -
Interest expense, net consists of the gross interest expense we incur
less the amount of interest we capitalize related to capital assets
under construction and less interest income earned. As of March 31,
2013, we also held interest rate swaps with an aggregate notional
amount of
$1 .6 billion to economically hedge the variability in cash flow on a portion of the floating-rate term loans under our senior secured and unsecured credit facilities. The swaps have not been designated as hedges for accounting purposes. Interest expense, net increased by$6.3 million , or 2%, to$318.4 million for the three months ended March 31, 2013, as compared to$312.0 million for the three months ended March 31, 2012. The increase in interest expense, net was principally due to the following:-
an increase of
$24.1 million resulting from lower capitalized interest of$11.6 million for the three months endedMarch 31, 2013 , as compared to$35.7 million for the three months endedMarch 31, 2012 , resulting from decreased levels of satellites and related assets under construction; partially offset by -
a net decrease of
$20.1 million in interest expense as a result of our debt refinancing transactions and credit-facility amendments in 2012.
Non-cash items in interest expense, net were
$14.9 million for the three months endedMarch 31, 2013 , primarily for amortization of deferred financing fees incurred as a result of new or refinanced debt and the amortization and accretion of discounts and premiums. -
an increase of
-
Other expense, net was
$0.7 million for the three months endedMarch 31, 2013 , as compared to other income, net of$2 .9 million for the three months ended March 31, 2012. The difference of$3.6 million was primarily due to$1.2 million of exchange rate losses in the three months endedMarch 31, 2013 , compared to$1.0 million of exchange rate gains in the three months endedMarch 31, 2012 , primarily related to our business conducted in Brazilian reais and euros. -
Our benefit from income taxes was
$2.0 million for the three months endedMarch 31, 2013 , as compared to a provision of$7.2 million for the three months endedMarch 31, 2012 . The difference was principally due to a 2012 internal subsidiary merger that caused a re-measurement of our deferred taxes in the three months endedMarch 31, 2012 , and a benefit for research and development credits recorded in the three months endedMarch 31, 2013 . -
Cash paid for income taxes, net of refunds, totaled
$15.6 million and$14.0 million for the three months ended March 31, 2013, and 2012, respectively.
EBITDA, Adjusted EBITDA and Other Financial Metrics
EBITDA of
At
Revenue Comparison by Customer Set and Service Type | ||||||||||||
($ in thousands) | ||||||||||||
By Customer Set | ||||||||||||
Three Months Ended | Three Months Ended | |||||||||||
March 31, | March 31, | |||||||||||
2012 | 2013 | |||||||||||
Network Services | $ | 298,929 | 46 | % | $ | 298,333 | 46 | % | ||||
Media | 209,895 | 33 | % | 223,215 | 34 | % | ||||||
Government | 128,393 | 20 | % | 125,827 | 19 | % | ||||||
Other | 6,952 | 1 | % | 7,752 | 1 | % | ||||||
$ | 644,169 | 100 | % | $ | 655,127 | 100 | % | |||||
By Service Type | ||||||||||||
Three Months Ended | Three Months Ended | |||||||||||
March 31, | March 31, | |||||||||||
2012 | 2013 | |||||||||||
On-Network Revenues | ||||||||||||
Transponder services | $ | 479,959 | 75 | % | $ | 501,807 | 77 | % | ||||
Managed services | 65,972 | 10 | % | 72,371 | 11 | % | ||||||
Channel | 23,820 | 4 | % | 19,165 | 3 | % | ||||||
Total on-network revenues | 569,751 | 88 | % | 593,343 | 91 | % | ||||||
Off-Network and Other Revenues | ||||||||||||
Transponder, MSS and other off-network services | 64,434 | 10 | % | 48,977 | 7 | % | ||||||
Satellite-related services | 9,984 | 2 | % | 12,807 | 2 | % | ||||||
Total off-network and other revenues | 74,418 | 12 | % | 61,784 | 9 | % | ||||||
Total | $ | 644,169 | 100 | % | $ | 655,127 | 100 | % | ||||
Free Cash Flow Used in Operations
Free cash flow used in operationsi was
Financial Outlook 2013
For the full year 2013,
Our 2013 capital expenditure guidance for the three calendar years 2013
through 2015 (the “Guidance Period”) assumes investment in nine
satellites in the manufacturing or design phase during the Guidance
Period, including one destroyed in a launch failure in
Consistent with prior guidance, we expect our capital expenditures to
range from
During the Guidance Period, we expect to receive significant customer
prepayments under our existing customer service contracts. We also
anticipate that prepayments will be received under customer contracts to
be signed in the future. Significant prepayments are currently expected
to range from
The annual classification of capital expenditure and prepayments could be affected by the timing of achievement of contract, satellite manufacturing, launch and other milestones.
---------------
End Notes
i In 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 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.
Conference Call Information
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
INTELSAT S.A. | ||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
($ in thousands, except per share amounts) | ||||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, 2012 | March 31, 2013 | |||||||
Revenue | $ | 644,169 | $ | 655,127 | ||||
Operating expenses: | ||||||||
Direct costs of revenue (excluding depreciation and amortization) | 105,010 | 97,646 | ||||||
Selling, general and administrative | 51,155 | 58,156 | ||||||
Depreciation and amortization | 186,871 | 187,411 | ||||||
Losses on derivative financial instruments | 9,858 | 1,865 | ||||||
Total operating expenses | 352,894 | 345,078 | ||||||
Income from operations | 291,275 | 310,049 | ||||||
Interest expense, net | 312,041 | 318,353 | ||||||
Other income (expense), net | 2,903 | (650 | ) | |||||
Loss before income taxes | (17,863 | ) | (8,954 | ) | ||||
Provision for (benefit from) income taxes | 7,204 | (2,038 | ) | |||||
Net loss | (25,067 | ) | (6,916 | ) | ||||
Net income attributable to noncontrolling interest | (181 | ) | (888 | ) | ||||
Net loss attributable to Intelsat S.A. | $ | (25,248 | ) | $ | (7,804 | ) | ||
Basic and diluted net loss per share attributable to Intelsat S.A. | $ | (0.30 | ) | $ | (0.09 | ) |
INTELSAT S.A. | ||||||||
UNAUDITED RECONCILIATION OF NET LOSS TO EBITDA | ||||||||
($ in thousands) | ||||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, | March 31, | |||||||
2012 | 2013 | |||||||
Net loss | $ | (25,067 | ) | $ | (6,916 | ) | ||
Add (Subtract): | ||||||||
Interest expense, net | 312,041 | 318,353 | ||||||
Provision for (benefit from) income taxes | 7,204 | (2,038 | ) | |||||
Depreciation and amortization | 186,871 | 187,411 | ||||||
EBITDA | $ | 481,049 | $ | 496,810 | ||||
EBITDA Margin | 75 | % | 76 | % | ||||
Note:
EBITDA consists of earnings before net interest, taxes and depreciation and amortization. Given our high level of leverage, refinancing activities are a frequent part of our efforts to manage costs of borrowing. Accordingly, we consider (gain) loss on early extinguishment of debt an element of interest expense. 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 LOSS TO | ||||||||
ADJUSTED EBITDA | ||||||||
($ in thousands) | ||||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, | March 31, | |||||||
2012 | 2013 | |||||||
Net loss | $ | (25,067 | ) | $ | (6,916 | ) | ||
Add (Subtract): | ||||||||
Interest expense, net | 312,041 | 318,353 | ||||||
Provision for (benefit from) income taxes | 7,204 | (2,038 | ) | |||||
Depreciation and amortization | 186,871 | 187,411 | ||||||
EBITDA | 481,049 | 496,810 | ||||||
Add (Subtract): | ||||||||
Compensation and benefits | 1,167 | 47 | ||||||
Management fees | 6,266 | 6,285 | ||||||
Losses on derivative financial instruments | 9,858 | 1,865 | ||||||
Non-recurring and other non-cash items | (1,680 | ) | 803 | |||||
Adjusted EBITDA | $ | 496,660 | $ | 505,810 | ||||
Adjusted EBITDA Margin | 77 | % | 77 | % | ||||
Note:
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. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
($ in thousands, except share amounts) | ||||||||
As of | As of | |||||||
December 31, | March 31, | |||||||
2012 | 2013 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 187,485 | $ | 328,778 | ||||
Receivables, net of allowance of $23,583 in 2012 and $30,305 in 2013 | 282,214 | 505,093 | ||||||
Deferred income taxes | 94,779 | 94,662 | ||||||
Prepaid expenses and other current assets | 38,708 | 64,943 | ||||||
Total current assets | 603,186 | 993,476 | ||||||
Satellites and other property and equipment, net | 6,355,192 | 5,839,334 | ||||||
Goodwill | 6,780,827 | 6,780,827 | ||||||
Non-amortizable intangible assets | 2,458,100 | 2,458,100 | ||||||
Amortizable intangible assets, net | 651,087 | 630,509 | ||||||
Other assets | 417,454 | 410,190 | ||||||
Total assets | $ | 17,265,846 | $ | 17,112,436 | ||||
LIABILITIES AND SHAREHOLDER'S DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 178,961 | $ | 129,300 | ||||
Taxes payable | 9,366 | - | ||||||
Employee related liabilities | 46,590 | 26,250 | ||||||
Accrued interest payable | 367,686 | 330,205 | ||||||
Current portion of long-term debt | 57,466 | 925,078 | ||||||
Deferred satellite performance incentives | 21,479 | 21,849 | ||||||
Deferred revenue | 84,066 | 76,655 | ||||||
Other current liabilities | 72,715 | 70,972 | ||||||
Total current liabilities | 838,329 | 1,580,309 | ||||||
Long-term debt, net of current portion | 15,846,728 | 14,966,035 | ||||||
Deferred satellite performance incentives, net of current portion | 172,663 | 168,070 | ||||||
Deferred revenue, net of current portion | 834,161 | 844,591 | ||||||
Deferred income taxes | 286,673 | 287,946 | ||||||
Accrued retirement benefits | 299,187 | 291,602 | ||||||
Other long-term liabilities | 300,195 | 290,516 | ||||||
Shareholders' deficit: | ||||||||
Common shares, $0.01 par value, 1,000,000,000 shares authorized; 83,189,991 and 83,189,258 shares issued and outstanding at December 31, 2012 and March 31, 2013, respectively (1) | 832 | 832 | ||||||
Paid-in capital (1) | 1,519,429 | 1,520,274 | ||||||
Accumulated deficit | (2,759,593 | ) | (2,767,397 | ) | ||||
Accumulated other comprehensive loss | (118,428 | ) | (115,177 | ) | ||||
Total shareholders' deficit | (1,357,760 | ) | (1,361,468 | ) | ||||
Noncontrolling interest | 45,670 | 44,835 | ||||||
Total liabilities and shareholders' deficit | $ | 17,265,846 | $ | 17,112,436 |
(1) Common shares and paid-in capital amounts reflect the retroactive impact of the Class A and Class B share reclassification into common shares and the share splits related to our Initial Public Offering on April 23, 2013. |
INTELSAT S.A. | ||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
($ in thousands) | ||||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, 2012 | March 31, 2013 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (25,067 | ) | $ | (6,916 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 186,871 | 187,411 | ||||||
Provision for doubtful accounts | 1,721 | 7,792 | ||||||
Foreign currency transaction (gain) loss | (1,044 | ) | 1,211 | |||||
Loss on disposal of assets | 46 | 32 | ||||||
Deferred income taxes | 2,504 | (4,428 | ) | |||||
Amortization of discount, premium, issuance costs and other non-cash items | 14,445 | 14,942 | ||||||
Interest paid-in-kind | 970 | - | ||||||
Unrealized gains on derivative financial instruments | (1,935 | ) | (4,907 | ) | ||||
Other non-cash items | 28 | 5,799 | ||||||
Changes in operating assets and liabilities: | ||||||||
Receivables | 3,957 | (5,269 | ) | |||||
Prepaid expenses and other assets | (15,364 | ) | (20,268 | ) | ||||
Accounts payable and accrued liabilities | (63,654 | ) | (73,787 | ) | ||||
Deferred revenue | 24,307 | 1,914 | ||||||
Accrued retirement benefits | (4,925 | ) | (7,585 | ) | ||||
Other long-term liabilities | (650 | ) | 1,351 | |||||
Net cash provided by operating activities | 122,210 | 97,292 | ||||||
Cash flows from investing activities: | ||||||||
Payments for satellites and other property and equipment (including capitalized interest) | (260,867 | ) | (167,154 | ) | ||||
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 | (260,867 | ) | 65,558 | |||||
Cash flows from financing activities: | ||||||||
Repayments of long-term debt | (20,334 | ) | (60,254 | ) | ||||
Repayment of notes payable to former shareholders | (531 | ) | (198 | ) | ||||
Proceeds from issuance of long-term debt | 175,000 | 40,000 | ||||||
Capital contribution from noncontrolling interest | 6,105 | 6,105 | ||||||
Dividend paid to noncontrolling interest | (2,255 | ) | (1,723 | ) | ||||
Principal payments on deferred satellite performance incentives | (4,011 | ) | (4,276 | ) | ||||
Net cash provided by (used in) financing activities | 153,974 | (20,346 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 1,044 | (1,211 | ) | |||||
Net change in cash and cash equivalents | 16,361 | 141,293 | ||||||
Cash and cash equivalents, beginning of period | 296,724 | 187,485 | ||||||
Cash and cash equivalents, end of period | $ | 313,085 | $ | 328,778 | ||||
Supplemental cash flow information: | ||||||||
Interest paid, net of amounts capitalized | $ | 326,031 | $ | 336,914 | ||||
Income taxes paid, net of refunds | 14,012 | 15,558 | ||||||
Supplemental disclosure of non-cash investing activities: | ||||||||
Accrued capital expenditures | $ | 44,624 | $ | 19,349 | ||||
Restricted cash received | 23,901 | - |
INTELSAT S.A. | ||||||||
UNAUDITED RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES | ||||||||
TO FREE CASH FLOW USED IN OPERATIONS | ||||||||
($ in thousands) | ||||||||
Three Months Ended | Three Months Ended | |||||||
March 31, | March 31, | |||||||
2012 | 2013 | |||||||
Net cash provided by operating activities | $ | 122,210 | $ | 97,292 | ||||
Payments for satellites and other property and equipment (including capitalized interest) |
(260,867 | ) | (167,154 | ) | ||||
Free cash flow used in operations | $ | (138,657 | ) | $ | (69,862 | ) | ||
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.
Source:
Intelsat
Dianne VanBeber
Vice President, Investor Relations
and Communications
+1 202-944-7406
dianne.vanbeber@intelsat.com