Intelsat Announces First Quarter 2021 Results
Intelsat S.A. (OTC: INTEQ) reported Q1 2021 financial results, with total revenue reaching $502.8 million, a 10% increase from Q1 2020. However, the net loss was $174.9 million, improved from a net loss of $218.8 million in the prior year. The EBITDA was $130.5 million, down from $263.3 million, while Adjusted EBITDA stood at $275.0 million (55% of revenue). Network Services revenue rose 43% to $214.0 million, while Media revenue decreased by 10% to $185.0 million. The company's contracted backlog is now $5.9 billion, down from $6.1 billion. A significant portion of costs were related to Gogo Commercial Aviation and C-band spectrum relocation.
- Total revenue increased by 10% to $502.8 million.
- Network Services revenue rose by 43% to $214.0 million.
- Net loss improved to $174.9 million from $218.8 million year-over-year.
- The contracted backlog was $5.9 billion, indicating future revenue potential.
- Media revenue declined by 10% to $185.0 million.
- EBITDA dropped to $130.5 million from $263.3 million, reflecting higher operational costs.
- Free cash flow used in operations was $232.2 million for the quarter.
Intelsat S.A. (the "Company") (OTC: INTEQ), today announced financial results for the three months ended March 31, 2021.
Intelsat reported total revenue was
Intelsat reported EBITDA1, or earnings before net interest, taxes and depreciation and amortization, of
Intelsat’s Chief Executive Officer, Stephen Spengler, said, “Overall, we delivered solid quarterly operational results which now include our Gogo Commercial Aviation business. Network Services benefited from new business from mobility and fixed network operators, as well as the addition of the Commercial Aviation in-flight connectivity business in the quarter. Government produced modest growth supported by the addition of new services both on and off our network and continued growth of our FlexGround managed land mobility services. Ongoing secular business trends and a large planned service migration from the Intelsat network to assets owned by a specific customer impacted results in our media business.”
Spengler concluded, “We see increased signs of economic activity across our business sectors as COVID-19 restrictions ease. Passenger traffic at airports is increasing in key markets, including the U.S. Global uncertainty about the pandemic remains so we continue to closely engage with our customers as they anticipate their service needs in advance of a potential economic recovery. Intelsat is investing in our next-generation software-defined network and vertical integration to leverage the opportunity to deliver end-to-end managed services to a larger addressable market. We are well-positioned to benefit from an expected economic expansion as we anticipate emergence from our financial restructuring as a stronger and more agile company ready to deliver innovative solutions to our customers."
First Quarter 2021 Business Highlights
Intelsat provides critical communications infrastructure to customers in the network services, media and government sectors. Our customers use our services for broadband connectivity to deliver fixed and mobile telecommunications, enterprise, video distribution and fixed and mobile government applications.
Network Services
Network services revenue was
Media
Media revenue was
Government
Government revenue was
Average Fill Rate
Intelsat’s average fill rate as of March 31, 2021 on our approximately 1,670 36 MHz station-kept wide-beam transponders was
Satellite Activity
On April 12, 2021, Intelsat, in coordination with Northrop Grumman Corporation and its wholly-owned subsidiary, SpaceLogistics, LLC, successfully completed the docking of Mission Extension Vehicle-2 (MEV-2) to the Intelsat 10-02 satellite ("IS-10-02"), delivering approximately 5 years of life extension for IS-10-02.
Contracted Backlog
At March 31, 2021, Intelsat’s contracted backlog, representing expected future revenue under existing contracts with customers, was
Financial Results for the Three Months Ended March 31, 2021
Total revenue for the three months ended March 31, 2021 increased by
Direct costs of revenue (excluding depreciation and amortization) increased by
Selling, general and administrative expenses increased by
Depreciation and amortization expense increased by
Other operating expense—C-band consists of reimbursable and non-reimbursable costs associated with our C-band spectrum relocation efforts. We incurred
Interest expense, net consists of the gross interest expense we incur, together with gains and losses on interest rate cap contracts we held that matured in February 2021 (which reflected 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 non-cash portion of interest expense, net was
Other income, net was
Reorganization items reflect direct costs incurred in connection with our Chapter 11 cases. Reorganization items of
Income tax expense increased by
Net Income, Net Income per Diluted Common Share attributable to Intelsat S.A., EBITDA and Adjusted EBITDA
Net loss attributable to Intelsat S.A. was
Net loss per diluted common share attributable to Intelsat S.A. was
EBITDA was
Adjusted EBITDA was
Free Cash Flow Used In Operations1
Net cash provided by operating activities was
____ |
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 condensed consolidated financial information below for information reconciling non-U.S. GAAP financial measures to comparable U.S. GAAP financial measures. |
Conference Call Information
In light of the Company and certain of its subsidiaries’ decision to file voluntary petitions for relief under title 11 of the United States Code in the United States Bankruptcy Court for the Eastern District of Virginia, the Company will not host a financial results conference call this quarter. Additional details regarding the Company's results and the bankruptcy proceedings are included in the Company's Quarterly Report on Form 10-Q for the three months ended March 31, 2021, which was filed with the U.S. Securities and Exchange Commission ("SEC") earlier today, as well as the Company's other filings with the SEC. Additional operational and financial details are also available on our Investor Relations website at investors.intelsat.com.
About Intelsat
As the foundational architects of satellite technology, Intelsat S.A. (OTC: INTEQ) operates the world’s largest and most advanced satellite fleet and connectivity infrastructure. We apply our unparalleled expertise and global scale to connect people, businesses and communities, no matter how difficult the challenge. Intelsat is uniquely positioned to help our customers turn possibilities into reality – transformation happens when businesses, governments and communities use Intelsat’s next-generation global network and managed services to build their connected future. Imagine Here, with us, at Intelsat.com.
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 constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 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 statements regarding: the effects of the Company and certain of its subsidiaries’ voluntary commencement of cases (the “Chapter 11 Cases”) under title 11 of the United States Code in the United States Bankruptcy Court for the Eastern District of Virginia (the “Bankruptcy Court”) on our liquidity or results of operations or business prospects; our belief as to the likelihood of the cause of the failure of Intelsat 29e in 2019 occurring on our other satellites; our guidance regarding 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 intention to maximize the value of our spectrum rights; our expectations as to our ability to comply with the final U.S. Federal Communications Commission (“FCC”) order regarding clearing C-band spectrum in North America, including the availability of adequate resources and funds required to comply and the receipt of accelerated clearing payments set forth in the FCC order; our belief that the scale of our fleet can reduce the financial impact of any satellite anomalies or launch failures and protect against service interruptions; our belief that the diversity of our revenue allows us to benefit from changing market conditions and lowers our risk from revenue fluctuations in our service applications and geographic regions; our belief that developing differentiated managed services and investing in related software- and standards-based technology will allow us to unlock opportunities that are essential to providing global broadband connectivity; and our assessments regarding how long satellites that have experienced anomalies in the past should be able to provide service on their transponders.
The forward-looking statements reflect Intelsat's intentions, plans, expectations, anticipations, projections, estimations, predictions, outlook, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside of Intelsat's control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Some of the factors that could cause actual results to differ from historical results or those anticipated or predicted by these forward-looking statements include: risks associated with operating our in-orbit satellites; satellite launch failures, satellite launch and construction delays and in-orbit failures or reduced satellite performance; potential changes in the number of companies offering commercial satellite launch services and the number of commercial satellite launch opportunities available in any given time period that could impact our ability to timely schedule future launches and the prices we pay for such launches; our ability to obtain new satellite insurance policies with financially viable insurance carriers on commercially reasonable terms or at all, as well as the ability of our insurance carriers to fulfill their obligations; possible future losses on satellites that are not adequately covered by insurance; U.S. and other government regulation; changes in our contracted backlog or expected contracted backlog for future services; pricing pressure and overcapacity in the markets in which we compete; our ability to access capital markets for debt or equity; the competitive environment in which we operate; customer defaults on their obligations to us; the impact of the novel coronavirus ("COVID-19") pandemic on our business, the economic environment and our expected financial results; our expectations as to the benefits and impact on our future financial performance associated with the Company’s recent purchase of the equity of Gogo Inc.’s (“Gogo”) commercial aviation business; our ability to successfully integrate Gogo’s commercial aviation business; our international operations and other uncertainties associated with doing business internationally; litigation; risks, uncertainties, and increased administrative and legal costs related to the Chapter 11 Cases; our ability to improve our liquidity and long-term capital structure and address our debt service obligations through our restructuring; our ability to obtain timely approval by the Bankruptcy Court with respect to the motions that we have filed or will file in the Chapter 11 Cases; objections to the Company’s restructuring process or other pleadings filed that could protract the Chapter 11 Cases or interfere with the Company’s ability to consummate our restructuring; our ability to retain the exclusive right to propose a Chapter 11 plan of reorganization and our ability to achieve confirmation of such plan; our ability to develop, obtain support for, confirm and consummate a Chapter 11 plan of reorganization, including the proposed plan of reorganization the Company filed in the Bankruptcy Court on February 12, 2021, as may be modified or amended; the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the Chapter 11 Cases; our substantial level of indebtedness and related debt service obligations and restrictions, including those expected to be imposed by covenants in any exit financing, that may limit our operational and financial flexibility; the conditions to which our debtor-in-possession financing is subject and the risk that these conditions may not be satisfied for various reasons, including for reasons outside of our control; our ability to develop and execute our business plan during the pendency of the Chapter 11 Cases; potential delays in the Chapter 11 process due to the effects of the COVID-19 pandemic; and our ability to continue as a going concern and maintain relationships with regulators, suppliers, customers, employees and other third parties as a result of such going concern during our restructuring. Known risks include, among others, the risks described in Intelsat’s Annual Report on Form 10-K for the year ended December 31, 2020 and its other filings with the U.S. Securities and Exchange Commission; the political, economic, regulatory and legal conditions in the markets we are targeting for communications services or in which we operate; and other risks and uncertainties inherent in the telecommunications business in general and the satellite communications business in particular. Because actual results could differ materially from Intelsat's intentions, plans, expectations, anticipations, projections, estimations, predictions, outlook, assumptions and beliefs about the future, you are urged to view all forward-looking statements with caution. Intelsat does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
INTELSAT S.A. (DEBTOR-IN-POSSESSION) |
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
($ in thousands, except per share amounts) |
||||||||
|
Three Months Ended
|
|
Three Months Ended
|
|||||
Revenue |
$ |
458,820 |
|
|
$ |
502,763 |
|
|
Operating expenses: |
|
|
|
|||||
Direct costs of revenue (excluding depreciation and amortization) |
105,085 |
|
|
165,233 |
|
|||
Selling, general and administrative |
80,967 |
|
|
102,614 |
|
|||
Depreciation and amortization |
163,048 |
|
|
165,241 |
|
|||
Impairment of non-amortizable intangible assets |
12,200 |
|
|
— |
|
|||
Other operating expense—C-band |
— |
|
|
58,356 |
|
|||
Total operating expenses |
361,300 |
|
|
491,444 |
|
|||
Income from operations |
97,520 |
|
|
11,319 |
|
|||
Interest expense, net |
(318,329 |
) |
|
(132,343 |
) |
|||
Other income, net |
2,735 |
|
|
9,719 |
|
|||
Reorganization items |
— |
|
|
(55,812 |
) |
|||
Loss before income taxes |
(218,074 |
) |
|
(167,117 |
) |
|||
Income tax expense |
(141 |
) |
|
(7,189 |
) |
|||
Net loss |
(218,215 |
) |
|
(174,306 |
) |
|||
Net income attributable to noncontrolling interest |
(556 |
) |
|
(570 |
) |
|||
Net loss attributable to Intelsat S.A. |
$ |
(218,771 |
) |
|
$ |
(174,876 |
) |
|
Net loss per common share attributable to Intelsat S.A.: |
|
|
|
|||||
Basic |
$ |
(1.55 |
) |
|
$ |
(1.23 |
) |
|
Diluted |
$ |
(1.55 |
) |
|
$ |
(1.23 |
) |
|
INTELSAT S.A. (DEBTOR-IN-POSSESSION) |
||||||||
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO EBITDA |
||||||||
($ in thousands) |
||||||||
|
Three Months Ended
|
|
Three Months Ended
|
|||||
Net loss |
$ |
(218,215 |
) |
|
$ |
(174,306 |
) |
|
Add: |
|
|
|
|||||
Interest expense, net |
318,329 |
|
|
132,343 |
|
|||
Income tax expense |
141 |
|
|
7,189 |
|
|||
Depreciation and amortization |
163,048 |
|
|
165,241 |
|
|||
EBITDA |
$ |
263,303 |
|
|
$ |
130,467 |
|
|
|
|
|
|
|||||
EBITDA Margin |
57 |
% |
|
26 |
% |
|||
Note:
Intelsat calculates a measure called EBITDA to assess the operating performance of Intelsat S.A. EBITDA consists of earnings before net interest, loss (gain) on early extinguishment of debt, taxes and depreciation and amortization. Given our high level of leverage, refinancing activities are a frequent part of our efforts to manage our costs of borrowing. Accordingly, we consider loss (gain) on early extinguishment of debt an element of interest expense. EBITDA is a measure commonly used in the Fixed Satellite Services (“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 financial 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.
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. (DEBTOR-IN-POSSESSION) |
||||||||
UNAUDITED RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA |
||||||||
($ in thousands) |
||||||||
|
Three Months Ended
|
|
Three Months Ended
|
|||||
|
|
|
|
|||||
Net loss |
$ |
(218,215 |
) |
|
$ |
(174,306 |
) |
|
Add: |
|
|
|
|||||
Interest expense, net |
318,329 |
|
|
132,343 |
|
|||
Income tax expense |
141 |
|
|
7,189 |
|
|||
Depreciation and amortization |
163,048 |
|
|
165,241 |
|
|||
EBITDA |
263,303 |
|
|
130,467 |
|
|||
Add: |
|
|
|
|||||
Compensation and benefits(1) |
3,706 |
|
|
20,273 |
|
|||
Non-recurring and other non-cash items(2) |
10,899 |
|
|
64,958 |
|
|||
Impairment of non-amortizable intangible assets(3) |
12,200 |
|
|
— |
|
|||
Reorganization items, net(4) |
— |
|
|
55,812 |
|
|||
Proportionate share from unconsolidated joint venture:(5) |
|
|
|
|||||
Interest expense, net |
1,080 |
|
|
633 |
|
|||
Depreciation and amortization |
2,815 |
|
|
2,815 |
|
|||
Adjusted EBITDA(6)(7) |
$ |
294,003 |
|
|
$ |
274,958 |
|
|
|
|
|
|
|||||
Adjusted EBITDA margin |
64 |
% |
|
55 |
% |
|||
(1) |
Reflects non-cash expenses incurred relating to our equity compensation plans and, for the three months ended March 31, 2021, expenses incurred relating to our employee retention incentive plans in connection with our Chapter 11 proceedings. |
|
(2) |
Reflects certain non-recurring expenses, gains and losses and non-cash items, including the following: costs associated with our C-band spectrum relocation efforts; professional fees related to our liability management initiatives; merger and acquisition costs; certain research and development costs; amortization of supplemental type certificates; severance, retention and relocation payments; changes in fair value of certain investments; certain foreign exchange gains and losses; and other various non-recurring expenses. |
|
(3) |
Reflects a non-cash impairment charge recorded in connection with a trade name impairment (see Item 1, Note 11—Goodwill and Other Intangible Assets of Intelsat S.A.'s Quarterly Report on Form 10-Q for the three months ended March 31, 2021 (the "Quarterly Report")). |
|
(4) |
Reflects direct costs incurred in connection with our Chapter 11 proceedings. See Item 1, Note 2—Chapter 11 Proceedings, Ability to Continue as a Going Concern and Other Related Matters of the Quarterly Report. |
|
(5) |
Reflects adjustments related to our interest in Horizons-3 Satellite LLC (“Horizons 3”). See Item 1, Note 10(b)—Investments—Horizons-3 Satellite LLC of the Quarterly Report. |
|
(6) |
Adjusted EBITDA included |
|
(7) |
Intelsat S.A. Adjusted EBITDA reflected |
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 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. (DEBTOR-IN-POSSESSION) |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
($ in thousands) |
||||||||
|
December 31, 2020 |
|
March 31, 2021 |
|||||
|
|
|
(unaudited) |
|||||
ASSETS |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
1,060,917 |
|
|
$ |
814,688 |
|
|
Restricted cash |
21,130 |
|
|
26,987 |
|
|||
Receivables, net of allowances of |
659,444 |
|
|
833,637 |
|
|||
Contract assets |
39,774 |
|
|
48,095 |
|
|||
Inventory |
147,094 |
|
|
140,603 |
|
|||
Prepaid expenses and other current assets |
136,611 |
|
|
133,986 |
|
|||
Total current assets |
2,064,970 |
|
|
1,997,996 |
|
|||
Satellites and other property and equipment, net |
4,757,877 |
|
|
4,890,921 |
|
|||
Goodwill |
2,698,247 |
|
|
2,694,307 |
|
|||
Non-amortizable intangible assets |
2,295,000 |
|
|
2,295,000 |
|
|||
Amortizable intangible assets, net |
290,569 |
|
|
281,589 |
|
|||
Contract assets, net of current portion |
86,017 |
|
|
81,997 |
|
|||
Other assets |
605,001 |
|
|
602,926 |
|
|||
Total assets |
$ |
12,797,681 |
|
|
$ |
12,844,736 |
|
|
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable and accrued liabilities |
$ |
252,998 |
|
|
$ |
291,389 |
|
|
Taxes payable |
7,493 |
|
|
7,871 |
|
|||
Employee related liabilities |
43,404 |
|
|
45,611 |
|
|||
Accrued interest payable |
17,747 |
|
|
17,985 |
|
|||
Current maturities of long-term debt |
5,903,724 |
|
|
5,906,514 |
|
|||
Contract liabilities |
157,320 |
|
|
762,119 |
|
|||
Deferred satellite performance incentives |
47,377 |
|
|
52,164 |
|
|||
Other current liabilities |
73,479 |
|
|
71,597 |
|
|||
Total current liabilities |
6,503,542 |
|
|
7,155,250 |
|
|||
Contract liabilities, net of current portion |
1,447,891 |
|
|
1,022,039 |
|
|||
Deferred satellite performance incentives, net of current portion |
138,116 |
|
|
135,077 |
|
|||
Deferred income taxes |
61,345 |
|
|
64,943 |
|
|||
Accrued retirement benefits, net of current portion |
129,837 |
|
|
124,691 |
|
|||
Other long-term liabilities |
262,900 |
|
|
261,974 |
|
|||
Liabilities subject to compromise |
10,168,518 |
|
|
10,169,260 |
|
|||
Shareholders’ deficit: |
|
|
|
|||||
Common shares, nominal value |
1,421 |
|
|
1,422 |
|
|||
Paid-in capital |
2,573,840 |
|
|
2,574,563 |
|
|||
Accumulated deficit |
(8,416,410 |
) |
|
(8,591,286 |
) |
|||
Accumulated other comprehensive loss |
(80,322 |
) |
|
(79,353 |
) |
|||
Total Intelsat S.A. shareholders’ deficit |
(5,921,471 |
) |
|
(6,094,654 |
) |
|||
Noncontrolling interest |
7,003 |
|
|
6,156 |
|
|||
Total liabilities and shareholders’ deficit |
$ |
12,797,681 |
|
|
$ |
12,844,736 |
|
|
INTELSAT S.A. (DEBTOR-IN-POSSESSION) |
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
($ in thousands) |
||||||||
|
Three Months Ended
|
|
Three Months Ended
|
|||||
Cash flows from operating activities: |
|
|
|
|||||
Net loss |
$ |
(218,215 |
) |
|
$ |
(174,306 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|||||
Depreciation and amortization |
163,048 |
|
|
165,241 |
|
|||
Provision for expected credit losses |
19,944 |
|
|
7,596 |
|
|||
Foreign currency transaction loss |
6,380 |
|
|
2,592 |
|
|||
Impairment of non-amortizable intangible assets |
12,200 |
|
|
— |
|
|||
Share-based compensation |
3,706 |
|
|
5,924 |
|
|||
Deferred income taxes |
2,181 |
|
|
1,793 |
|
|||
Amortization of discount, premium, issuance costs and related costs |
11,196 |
|
|
2,459 |
|
|||
Amortization of actuarial loss and prior service credits for retirement benefits |
659 |
|
|
1,063 |
|
|||
Unrealized losses on derivative financial instruments |
335 |
|
|
— |
|
|||
Unrealized (gains) losses on investments and loans held-for-investment |
8 |
|
|
(6,274 |
) |
|||
Amortization of supplemental type certificate costs |
— |
|
|
3,301 |
|
|||
Other non-cash items |
— |
|
|
(76 |
) |
|||
Changes in operating assets and liabilities: |
|
|
|
|||||
Receivables |
(939 |
) |
|
19,479 |
|
|||
Prepaid expenses, contract and other assets |
19,510 |
|
|
2,042 |
|
|||
Accounts payable and accrued liabilities |
14,743 |
|
|
10,260 |
|
|||
Accrued interest payable |
(757 |
) |
|
238 |
|
|||
Contract liabilities |
(6,916 |
) |
|
(21,969 |
) |
|||
Accrued retirement benefits |
(3,900 |
) |
|
(5,146 |
) |
|||
Other long-term liabilities |
(8,906 |
) |
|
(1,810 |
) |
|||
Net cash provided by operating activities |
14,277 |
|
|
12,407 |
|
|||
Cash flows from investing activities: |
|
|
|
|||||
Capital expenditures (including capitalized interest) |
(38,026 |
) |
|
(244,596 |
) |
|||
Acquisition of loans held-for-investment |
(1,150 |
) |
|
— |
|
|||
Proceeds from principal payments on loans held-for-investment |
724 |
|
|
— |
|
|||
Acquisition of intangible assets |
— |
|
|
(1,085 |
) |
|||
Other proceeds from satellites |
5,625 |
|
|
— |
|
|||
Net cash used in investing activities |
(32,827 |
) |
|
(245,681 |
) |
|||
Cash flows from financing activities: |
|
|
|
|||||
Principal payments on deferred satellite performance incentives |
(7,806 |
) |
|
(3,570 |
) |
|||
Dividends paid to noncontrolling interest |
(1,879 |
) |
|
(1,417 |
) |
|||
|
(9,685 |
) |
|
(4,987 |
) |
|||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(2,007 |
) |
|
(2,111 |
) |
|||
Net change in cash, cash equivalents and restricted cash |
(30,242 |
) |
|
(240,372 |
) |
|||
Cash, cash equivalents, and restricted cash, beginning of period |
830,864 |
|
|
1,087,547 |
|
|||
Cash, cash equivalents, and restricted cash, end of period |
$ |
800,622 |
|
|
$ |
847,175 |
|
|
|
|
|
|
|||||
Supplemental cash flow information: |
|
|
|
|||||
Cash paid for reorganization items included in cash flows from operating activities |
$ |
— |
|
|
$ |
33,078 |
|
|
Interest paid, net of amounts capitalized |
282,895 |
|
|
105,467 |
|
|||
Income taxes paid, net of refunds |
964 |
|
|
475 |
|
|||
Supplemental disclosure of non-cash investing activities: |
|
|
|
|||||
Accrued capital expenditures |
$ |
48,255 |
|
|
$ |
77,029 |
|
|
Capitalization of deferred satellite performance incentives |
— |
|
|
5,318 |
|
|||
Conversion of payment-in-kind interest on loans held-for-investment |
— |
|
|
1,762 |
|
|||
INTELSAT S.A. (DEBTOR-IN-POSSESSION) |
||||||||
UNAUDITED RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES |
||||||||
TO FREE CASH FLOW FROM (USED IN) OPERATIONS |
||||||||
($ in thousands) |
||||||||
|
Three Months Ended
|
|
Three Months Ended
|
|||||
Net cash provided by operating activities |
$ |
14,277 |
|
|
$ |
12,407 |
|
|
Other proceeds from satellites from investing activities |
5,625 |
|
|
— |
|
|||
Payments for satellites and other property and equipment (including capitalized interest) |
(38,026 |
) |
|
(244,596 |
) |
|||
Free cash flow used in operations |
$ |
(18,124 |
) |
|
$ |
(232,189 |
) |
|
Note:
Free cash flow from (used in) operations consists of net cash provided by (used in) operating activities and other proceeds from satellites from investing activities, less payments for satellites and other property and equipment (including capitalized interest) from investing activities. Free cash flow from (used in) operations is not a measurement of cash flow under U.S. 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 financial 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 U.S. GAAP, and free cash flow from (used in) operations 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 income (loss) or net income (loss), determined in accordance with U.S. GAAP, as an indicator of Intelsat’s 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. (DEBTOR-IN-POSSESSION) |
||||||||||||||||||
SUPPLEMENTARY TABLE |
||||||||||||||||||
REVENUE BY CUSTOMER SET |
||||||||||||||||||
($ in thousands) |
||||||||||||||||||
By Customer Set |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended
|
|
|
|
Three Months Ended
|
|
|
|
Increase
|
|
Percentage
|
|||||||
Network services |
$ |
149,378 |
|
|
|
|
$ |
213,969 |
|
|
|
|
$ |
64,591 |
|
|
|
|
Media |
205,830 |
|
|
|
|
184,953 |
|
|
|
|
(20,877 |
) |
|
(10)% |
||||
Government |
95,752 |
|
|
|
|
97,913 |
|
|
|
|
2,161 |
|
|
|
||||
Satellite-related services |
7,860 |
|
|
|
|
5,928 |
|
|
|
|
(1,932 |
) |
|
(25)% |
||||
|
$ |
458,820 |
|
|
|
|
$ |
502,763 |
|
|
|
|
$ |
43,943 |
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210505006164/en/
FAQ
What were Intelsat's total revenues for Q1 2021?
What was the net loss for Intelsat in Q1 2021?
How much did Intelsat's Adjusted EBITDA amount to for Q1 2021?
What factors contributed to the revenue increase for Intelsat in Q1 2021?
How did the media revenue perform for Intelsat in Q1 2021?
