EchoStar Announces Financial Results for the Three and Six Months Ended June 30, 2024
EchoStar (NASDAQ: SATS) reported financial results for Q2 2024. Total revenue for the first half of 2024 was $7.97 billion, down from $8.74 billion in the same period last year. The company reported a net loss of $312.97 million, compared to a net income of $466.20 million in the previous year. Diluted loss per share was $1.15, down from earnings per share of $1.51. Consolidated OIBDA totaled $912.31 million, a decrease from $1.32 billion.
In Q2 2024, Pay-TV subscribers decreased by 104,000, while Retail Wireless subscribers decreased by 16,000. Broadband subscribers decreased by 23,000. The company is focusing on aligning business synergies, profitable customer acquisition and retention, and improving its go-to-market approach for Retail Wireless.
EchoStar (NASDAQ: SATS) ha riportato i risultati finanziari per il secondo trimestre del 2024. Il fatturato totale per la prima metà del 2024 è stato di 7,97 miliardi di dollari, in calo rispetto a 8,74 miliardi di dollari nello stesso periodo dell'anno scorso. La società ha registrato una perdita netta di 312,97 milioni di dollari, rispetto a un utile netto di 466,20 milioni di dollari dell'anno precedente. La perdita netta per azione è stata di 1,15 dollari, in calo rispetto all'utile per azione di 1,51 dollari. L'OIBDA consolidato ammontava a 912,31 milioni di dollari, con una diminuzione rispetto a 1,32 miliardi di dollari.
Nel secondo trimestre del 2024, gli abbonati Pay-TV sono diminuiti di 104.000, mentre gli abbonati Retail Wireless sono diminuiti di 16.000. Anche gli abbonati Broadband sono diminuiti di 23.000. L'azienda si sta concentrando sull'allineamento delle sinergie aziendali, sull'acquisizione e mantenimento di clienti redditizi e sul miglioramento della sua strategia di mercato per il Retail Wireless.
EchoStar (NASDAQ: SATS) informó sobre los resultados financieros del segundo trimestre de 2024. Los ingresos totales para la primera mitad de 2024 fueron de 7.97 mil millones de dólares, una disminución en comparación con los 8.74 mil millones de dólares en el mismo período del año pasado. La compañía reportó una pérdida neta de 312.97 millones de dólares, en comparación con un ingreso neto de 466.20 millones de dólares el año anterior. La pérdida diluida por acción fue de 1.15 dólares, en comparación con ganancias por acción de 1.51 dólares. El OIBDA consolidado alcanzó los 912.31 millones de dólares, una disminución con respecto a 1.32 mil millones de dólares.
En el segundo trimestre de 2024, los suscriptores de Pay-TV disminuyeron en 104,000, mientras que los suscriptores de Retail Wireless disminuyeron en 16,000. Los suscriptores de Broadband disminuyeron en 23,000. La empresa se está enfocando en alinear las sinergias comerciales, en la adquisición y retención de clientes rentables y en mejorar su enfoque de entrada al mercado para Retail Wireless.
EchoStar (NASDAQ: SATS)는 2024년 2분기 재무 결과를 보고했습니다. 총 수익은 2024년 상반기에 79억 7천만 달러로, 지난해 같은 기간의 87억 4천만 달러에서 감소했습니다. 회사는 순손실 3억 1천297만 달러를 기록했으며, 작년에 비해 4억 6천620만 달러의 순이익에서 변동되었습니다. 희석 손실 per 주식은 1.15달러로, 주당 수익 1.51달러에서 하락했습니다. 통합 OIBDA는 9억 1천231만 달러로, 13억 2천만 달러에서 감소했습니다.
2024년 2분기 동안, Pay-TV 가입자는 10만 4천명이 감소했으며, Retail Wireless 가입자는 1만 6천명이 줄었습니다. 브로드밴드 가입자도 2만 3천명이 감소했습니다. 회사는 비즈니스 시너지를 정렬하고, 수익성 있는 고객 유치 및 유지, Retail Wireless를 위한 시장 접근 방식을 개선하는 데 집중하고 있습니다.
EchoStar (NASDAQ: SATS) a annoncé ses résultats financiers pour le deuxième trimestre de 2024. Le chiffre d'affaires total pour la première moitié de 2024 s'est établi à 7,97 milliards de dollars, en baisse par rapport à 8,74 milliards de dollars pour la même période l'année précédente. L'entreprise a enregistré une perte nette de 312,97 millions de dollars, contre un bénéfice net de 466,20 millions de dollars l'année précédente. La perte par action diluée s'élevait à 1,15 dollar, en baisse par rapport aux bénéfices par action de 1,51 dollar. L'OIBDA consolidé a atteint 912,31 millions de dollars, en baisse par rapport à 1,32 milliard de dollars.
Au deuxième trimestre 2024, le nombre de clients Pay-TV a diminué de 104 000, tandis que le nombre de clients Retail Wireless a baissé de 16 000. Le nombre de clients Broadband a également diminué de 23 000. L'entreprise se concentre sur l'alignement des synergies commerciales, l'acquisition et la fidélisation de clients rentables, et l'amélioration de son approche commerciale pour le Retail Wireless.
EchoStar (NASDAQ: SATS) berichtete über die finanziellen Ergebnisse für das 2. Quartal 2024. Der Gesamtumsatz für das erste Halbjahr 2024 betrug 7,97 Milliarden US-Dollar, ein Rückgang von 8,74 Milliarden US-Dollar im gleichen Zeitraum des Vorjahres. Das Unternehmen meldete einen Nettoverlust von 312,97 Millionen US-Dollar, verglichen mit einem Nettogewinn von 466,20 Millionen US-Dollar im Vorjahr. Der verwässerte Verlust pro Aktie betrug 1,15 US-Dollar, ein Rückgang von einem Gewinn pro Aktie von 1,51 US-Dollar. Das konsolidierte OIBDA belief sich auf 912,31 Millionen US-Dollar, ein Rückgang von 1,32 Milliarden US-Dollar.
Im 2. Quartal 2024 sank die Zahl der Pay-TV-Abonnenten um 104.000, während die Retail Wireless-Abonnenten um 16.000 abnahmen. Auch die Breitband-Abonnenten verringerten sich um 23.000. Das Unternehmen konzentriert sich darauf, Geschäftssynergien auszurichten, profitable Kundenakquise und -bindung zu fördern und den Marktzugang für Retail Wireless zu verbessern.
- Decrease in net Pay-TV subscriber losses compared to the previous year
- Improvement in net broadband subscriber loss primarily due to new satellite service launch
- SLING TV subscriber additions in Q2 compared to losses in the previous year
- Lower DISH TV churn rate
- Lower retail wireless churn rate
- Total revenue decreased from $8.74 billion to $7.97 billion year-over-year
- Net loss of $312.97 million compared to net income of $466.20 million in the previous year
- Diluted loss per share of $1.15 compared to earnings per share of $1.51 in the previous year
- Consolidated OIBDA decreased from $1.32 billion to $912.31 million
- Decrease in Pay-TV, Retail Wireless, and Broadband subscribers
- Negative impact from net losses of government subsidized subscribers due to ACP program funding conclusion
Insights
EchoStar's Q2 2024 results reveal significant challenges. Total revenue for H1 2024 dropped to
The OIBDA decline from
EchoStar's Q2 results highlight the ongoing challenges in the telecom industry. The decrease in Pay-TV subscribers, albeit at a slower rate, reflects the continued cord-cutting trend. The company's SLING TV service showed some resilience, adding subscribers in Q2. However, the Retail Wireless segment's performance is concerning, with a net loss of 16,000 subscribers.
The conclusion of the Affordable Connectivity Program on June 1, 2024, has negatively impacted subscriber numbers. This underscores the importance of government initiatives in maintaining connectivity for low-income households. The launch of the EchoStar XXIV satellite service is a positive development, helping to slow broadband subscriber losses. However, the substantial investments in 5G Network Deployment (
EchoStar's Q2 2024 results reflect broader market trends in the telecommunications industry. The company's efforts to align business synergies and focus on profitable customer acquisition are steps in the right direction, but the financial impact is yet to be seen. The decrease in Pay-TV subscriber losses (104,000 in Q2 2024 vs. 294,000 in Q2 2023) suggests that EchoStar's retention strategies may be gaining traction.
The company's pivot towards Open RAN technology for its 5G network is noteworthy, potentially offering cost efficiencies and flexibility in the long run. However, the immediate financial burden is evident. The broadband subscriber loss improvement, attributed to the new satellite service launch, indicates a potential growth area. EchoStar's ability to navigate the post-ACP landscape and strengthen its value propositions will be important for future performance.
Six Months Ended June 30, 2024:
- EchoStar reported total revenue of
$7.97 billion $8.74 billion - Net loss attributable to EchoStar in the first two quarters of 2024 was
$312.97 million $466.20 million $1.15 $1.51 - Consolidated OIBDA totaled
$912.31 million $1.32 billion
"The EchoStar team continued to perform as planned in the second quarter of 2024. We directed efforts on aligning key business synergies and objectives, focusing on profitable customer acquisition and retention efforts, and making improvements in our go-to-market approach for Retail Wireless," said Hamid Akhavan, president and CEO, EchoStar Corporation. "In addition, we are in constructive discussions to address necessary financing, working to strengthen our consumer offerings and value propositions, enhancing our state-of-the-art Open RAN network, and driving profitability across the enterprise."
Three Months Ended June 30, 2024:
- Net Pay-TV subscribers decreased approximately 104,000 in the second quarter, compared to 294,000 in the year ago quarter. The company closed the quarter with 8.07 million Pay-TV subscribers including 6.07 million DISH TV subscribers and 2.00 million SLING TV subscribers. This change in net Pay-TV subscriber losses resulted from SLING TV subscriber additions in the second quarter compared to losses in the year ago quarter and a decrease in net DISH TV subscriber losses due to a lower DISH TV churn rate, offset by lower gross new DISH TV subscriber activations.
- Retail Wireless net subscribers decreased by approximately 16,000 in the second quarter, compared to 188,000 in the year ago quarter. The company closed the quarter with 7.28 million Retail Wireless subscribers. The decrease in net retail wireless subscriber losses resulted from a lower retail wireless churn rate, offset by lower gross new retail wireless subscriber activations. The second quarter was negatively impacted by net losses of government subsidized subscribers, including Affordable Connectivity Program ("ACP") subscribers, compared to net additions in the year ago quarter, primarily due to the ACP program funding concluding on June 1, 2024. Excluding the impact of net losses of government subsidized subscribers EchoStar added approximately 32,000 Retail Wireless subscribers in the second quarter.
- Broadband net subscribers decreased by approximately 23,000 in the second quarter, compared to 55,000 in the year ago quarter. The company closed the quarter with 955,000 Broadband subscribers. The net broadband subscriber loss improvement was primarily due to the new EchoStar XXIV satellite service launch and increased subscriber demand for our new satellite service plans.
Set forth below is a table highlighting certain of EchoStar's segment results for the three and six months ended June 30, 2024 and 2023 (all
For the Three Months Ended | For the Six Months Ended | |||||||||
2024 | 2023 | 2024 | 2023 | |||||||
(in thousands) | ||||||||||
Revenue | ||||||||||
Pay-TV | $ 2,676,284 | $ 2,975,140 | $ 5,402,862 | $ 5,947,271 | ||||||
Retail Wireless | 891,531 | 928,241 | 1,797,381 | 1,903,107 | ||||||
5G Network Deployment | 35,514 | 19,079 | 65,018 | 37,986 | ||||||
Broadband and Satellite Services | 394,011 | 453,110 | 776,597 | 892,706 | ||||||
All Other & Eliminations | (44,589) | (19,108) | (74,264) | (36,942) | ||||||
Total | $ 3,952,751 | $ 4,356,462 | $ 7,967,594 | $ 8,744,128 | ||||||
Net Income (loss) attributable to EchoStar | $ (205,591) | $ 212,662 | $ (312,967) | $ 466,196 | ||||||
OIBDA | ||||||||||
Pay-TV | $ 753,001 | $ 818,265 | $ 1,508,511 | $ 1,596,073 | ||||||
Retail Wireless | (65,995) | (59,296) | (83,513) | (24,658) | ||||||
5G Network Deployment | (313,018) | (278,475) | (646,582) | (514,451) | ||||||
Broadband and Satellite Services | 82,392 | 149,559 | 161,679 | 280,382 | ||||||
All Other & Eliminations | (14,224) | (7,191) | (27,783) | (13,392) | ||||||
Total | $ 442,156 | $ 622,862 | $ 912,312 | $ 1,323,954 | ||||||
Purchases of property and equipment, net of refunds (including capitalized | ||||||||||
Pay-TV | $ 54,006 | $ 67,630 | $ 111,918 | $ 103,193 | ||||||
Retail Wireless | — | — | — | — | ||||||
5G Network Deployment | 560,468 | 1,183,891 | 1,109,641 | 2,054,933 | ||||||
Broadband and Satellite Services | 56,559 | 49,016 | 127,170 | 93,087 | ||||||
All Other & Eliminations | — | — | — | — | ||||||
Total | $ 671,033 | $ 1,300,537 | $ 1,348,729 | $ 2,251,213 | ||||||
Reconciliation of GAAP to Non-GAAP Measurement:
For the Three | Pay-TV | Retail Wireless | 5G Network | Broadband and | Consolidated | |||||||||||||
Eliminations | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Segment operating income (loss) | $ | 667,752 | $ | (121,362) | $ | (578,940) | $ | (34,586) | $ | 1,767 | $ | (65,369) | ||||||
Depreciation and amortization | 85,249 | 55,367 | 265,922 | 116,978 | (15,991) | 507,525 | ||||||||||||
OIBDA | $ | 753,001 | $ | (65,995) | $ | (313,018) | $ | 82,392 | $ | (14,224) | $ | 442,156 | ||||||
For the Three | Pay-TV | Retail Wireless | 5G Network | Broadband and | Consolidated | |||||||||||||
Eliminations | ||||||||||||||||||
Segment operating income (loss) | $ | 720,792 | $ | (112,499) | $ | (401,959) | $ | 43,847 | $ | 2,048 | $ | 252,229 | ||||||
Depreciation and amortization | 97,473 | 53,203 | 123,484 | 105,712 | (9,239) | 370,633 | ||||||||||||
OIBDA | $ | 818,265 | $ | (59,296) | $ | (278,475) | $ | 149,559 | $ | (7,191) | $ | 622,862 | ||||||
For the Six | Pay-TV | Retail Wireless | 5G Network | Broadband and | Consolidated | |||||||||||||
Eliminations | ||||||||||||||||||
Segment operating income (loss) | $ | 1,337,860 | $ | (195,779) | $ | (1,149,691) | $ | (74,140) | $ | 1,137 | $ | (80,613) | ||||||
Depreciation and amortization | 170,651 | 112,266 | 503,109 | 235,819 | (28,920) | 992,925 | ||||||||||||
OIBDA | $ | 1,508,511 | $ | (83,513) | $ | (646,582) | $ | 161,679 | $ | (27,783) | $ | 912,312 | ||||||
For the Six | Pay-TV | Retail Wireless | 5G Network | Broadband and | Consolidated | |||||||||||||
Eliminations | ||||||||||||||||||
Segment operating income (loss) | $ | 1,396,025 | $ | (130,706) | $ | (735,562) | $ | 71,552 | $ | 4,258 | $ | 605,567 | ||||||
Depreciation and amortization | 200,048 | 106,048 | 221,111 | 208,830 | (17,650) | 718,387 | ||||||||||||
OIBDA | $ | 1,596,073 | $ | (24,658) | $ | (514,451) | $ | 280,382 | $ | (13,392) | $ | 1,323,954 | ||||||
Note on Use of Non-GAAP Financial Measures
OIBDA is defined as "Operating income (loss)" plus "Depreciation and amortization."
OIBDA, which is presented by segment above, is a non-GAAP measure reconciled to "Operating income (loss)" and does not purport to be an alternative to operating income (loss) as a measure of operating performance. We believe this measure is useful to management, investors and other users of our financial information in evaluating operating profitability of our business segments on a more variable cost basis as it excludes the depreciation and amortization expenses related primarily to capital expenditures and acquisitions for those business segments, as well as in evaluating operating performance in relation to our competitors.
The condensed consolidated financial statements of EchoStar for the period ended June 30, 2024, are attached to this press release. Detailed financial data and other information are available in EchoStar's Form 10-Q for the period ended June 30, 2024, filed today with the Securities and Exchange Commission.
EchoStar will host a conference call to discuss its earnings on Friday, August 9, 2024, at noon Eastern Time. The conference call will be broadcast live in listen-only mode on EchoStar's investor relations website at ir.echostar.com. To attend the call, please dial: (877) 484-6065 (
About EchoStar Corporation
EchoStar Corporation (Nasdaq: SATS) is a premier provider of technology, networking services, television entertainment and connectivity, offering consumer, enterprise, operator and government solutions worldwide under its EchoStar®, Boost Mobile®, Sling TV, DISH TV, Hughes®, HughesNet®, HughesON™, and JUPITER™ brands. In
Safe Harbor Statement under the US Private Securities Litigation Reform Act of 1995
This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "goal," "seek," "estimate," "expect," "intend," "project," "continue," "future," "will," "would," "can," "may," "plans," and similar expressions and the use of future dates are intended to identify forward–looking statements. Although management believes that the expectations reflected in these forward–looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. We assume no responsibility for the accuracy of forward-looking statements or information or for updating forward-looking information or statements. These statements are subject to certain risks, uncertainties, and assumptions. See "Risk Factors" in EchoStar's Annual Report on Form 10-K for the period ended December 31, 2023, and subsequent quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission and in the other documents EchoStar files with the Securities and Exchange Commission from time to time.
ECHOSTAR CORPORATION | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(Dollars in thousands, except share amounts) | ||||||
(Unaudited) | ||||||
As of | ||||||
June 30, | December 31, | |||||
2024 | 2023 | |||||
Assets | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 419,246 | $ | 1,821,376 | ||
Marketable investment securities | 101,331 | 623,044 | ||||
Trade accounts receivable, net of allowance for credit losses of | 1,052,855 | 1,122,139 | ||||
Inventory | 557,257 | 665,169 | ||||
Prepaids and other assets | 642,158 | 644,005 | ||||
Other current assets | 15,019 | 16,081 | ||||
Total current assets | 2,787,866 | 4,891,814 | ||||
Noncurrent Assets: | ||||||
Restricted cash, cash equivalents and marketable investment securities | 143,429 | 118,065 | ||||
Property and equipment, net | 9,427,192 | 9,561,834 | ||||
Regulatory authorizations, net | 39,053,041 | 38,572,980 | ||||
Other investments, net | 243,191 | 314,370 | ||||
Operating lease assets | 3,137,306 | 3,065,448 | ||||
Intangible assets, net | 86,992 | 172,892 | ||||
Other noncurrent assets, net | 376,176 | 411,491 | ||||
Total noncurrent assets | 52,467,327 | 52,217,080 | ||||
Total assets | $ | 55,255,193 | $ | 57,108,894 | ||
Liabilities and Stockholders' Equity (Deficit) | ||||||
Current Liabilities: | ||||||
Trade accounts payable | $ | 655,455 | $ | 774,011 | ||
Deferred revenue and other | 670,439 | 754,658 | ||||
Accrued programming | 1,546,377 | 1,427,762 | ||||
Accrued interest | 289,302 | 297,678 | ||||
Other accrued expenses and liabilities | 1,732,389 | 1,717,826 | ||||
Current portion of long-term debt and finance lease obligations | 2,082,919 | 3,046,654 | ||||
Total current liabilities | 6,976,881 | 8,018,589 | ||||
Long-Term Obligations, Net of Current Portion: | ||||||
Long-term debt and finance lease obligations, net of current portion | 19,678,708 | 19,717,266 | ||||
Deferred tax liabilities, net | 4,975,164 | 5,014,309 | ||||
Operating lease liabilities | 3,115,265 | 3,121,307 | ||||
Long-term deferred revenue and other long-term liabilities | 877,224 | 849,131 | ||||
Total long-term obligations, net of current portion | 28,646,361 | 28,702,013 | ||||
Total liabilities | 35,623,242 | 36,720,602 | ||||
Commitments and Contingencies | ||||||
Redeemable noncontrolling interests | — | 438,382 | ||||
Stockholders' Equity (Deficit): | ||||||
Class A common stock, | 140 | 140 | ||||
Class B common stock, | 131 | 131 | ||||
Additional paid-in capital | 8,326,880 | 8,301,979 | ||||
Accumulated other comprehensive income (loss) | (179,126) | (160,056) | ||||
Accumulated earnings (deficit) | 11,425,016 | 11,737,983 | ||||
Total EchoStar stockholders' equity (deficit) | 19,573,041 | 19,880,177 | ||||
Noncontrolling interests | 58,910 | 69,733 | ||||
Total stockholders' equity (deficit) | 19,631,951 | 19,949,910 | ||||
Total liabilities and stockholders' equity (deficit) | $ | 55,255,193 | $ | 57,108,894 | ||
ECHOSTAR CORPORATION | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||
(Unaudited) | ||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Revenue: | ||||||||||||
Service revenue | $ | 3,742,086 | $ | 4,088,513 | $ | 7,561,755 | $ | 8,269,234 | ||||
Equipment sales and other revenue | 210,665 | 267,949 | 405,839 | 474,894 | ||||||||
Total revenue | 3,952,751 | 4,356,462 | 7,967,594 | 8,744,128 | ||||||||
Costs and Expenses (exclusive of depreciation and amortization): | ||||||||||||
Cost of services | 2,507,478 | 2,391,540 | 5,064,660 | 4,854,140 | ||||||||
Cost of sales - equipment and other | 408,093 | 583,498 | 771,176 | 1,103,558 | ||||||||
Selling, general and administrative expenses | 595,024 | 758,562 | 1,219,446 | 1,459,334 | ||||||||
Depreciation and amortization | 507,525 | 370,633 | 992,925 | 718,387 | ||||||||
Impairment of long-lived assets and goodwill | — | — | — | 3,142 | ||||||||
Total costs and expenses | 4,018,120 | 4,104,233 | 8,048,207 | 8,138,561 | ||||||||
Operating income (loss) | (65,369) | 252,229 | (80,613) | 605,567 | ||||||||
Other Income (Expense): | ||||||||||||
Interest income, net | 13,929 | 54,308 | 44,391 | 122,494 | ||||||||
Interest expense, net of amounts capitalized | (81,166) | (21,648) | (180,574) | (41,681) | ||||||||
Other, net | (91,498) | 34,068 | (117,608) | (693) | ||||||||
Total other income (expense) | (158,735) | 66,728 | (253,791) | 80,120 | ||||||||
Income (loss) before income taxes | (224,104) | 318,957 | (334,404) | 685,687 | ||||||||
Income tax (provision) benefit, net | 16,646 | (86,265) | 18,571 | (180,150) | ||||||||
Net income (loss) | (207,458) | 232,692 | (315,833) | 505,537 | ||||||||
Less: Net income (loss) attributable to noncontrolling interests, net of tax | (1,867) | 20,030 | (2,866) | 39,341 | ||||||||
Net income (loss) attributable to EchoStar | $ | (205,591) | $ | 212,662 | $ | (312,967) | $ | 466,196 | ||||
Weighted-average common shares outstanding - Class A and B common stock: | ||||||||||||
Basic | 271,592 | 270,818 | 271,555 | 270,328 | ||||||||
Diluted | 271,592 | 308,375 | 271,555 | 307,948 | ||||||||
Earnings per share - Class A and B common stock: | ||||||||||||
Basic net income (loss) per share attributable to EchoStar | $ | (0.76) | $ | 0.79 | $ | (1.15) | $ | 1.72 | ||||
Diluted net income (loss) per share attributable to EchoStar | $ | (0.76) | $ | 0.69 | $ | (1.15) | $ | 1.51 | ||||
ECHOSTAR CORPORATION | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(In thousands) | ||||||
(Unaudited) | ||||||
For the Six Months Ended June 30, | ||||||
2024 | 2023 | |||||
Cash Flows From Operating Activities: | ||||||
Net income (loss) | $ | (315,833) | $ | 505,537 | ||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||||||
Depreciation and amortization | 992,925 | 718,387 | ||||
Impairment of long-lived assets and goodwill | — | 3,142 | ||||
Realized and unrealized losses (gains) on investments, impairments and other | 49,312 | (31,109) | ||||
Realized and unrealized losses (gains) on derivatives | — | 36,974 | ||||
Non-cash, stock-based compensation | 19,693 | 27,306 | ||||
Deferred tax expense (benefit) | (35,300) | 143,754 | ||||
Changes in allowance for credit losses | 33,108 | 1,531 | ||||
Change in long-term deferred revenue and other long-term liabilities | 8,139 | (3,356) | ||||
Other, net | 192,710 | 67,120 | ||||
Changes in current assets and current liabilities, net | (13,770) | 69,820 | ||||
Net cash flows from operating activities | 930,984 | 1,539,106 | ||||
Cash Flows From Investing Activities: | ||||||
Purchases of marketable investment securities | (21,847) | (2,051,128) | ||||
Sales and maturities of marketable investment securities | 501,512 | 1,917,860 | ||||
Purchases of property and equipment | (866,922) | (1,700,818) | ||||
Refunds and other receipts of purchases of property and equipment | — | 31,371 | ||||
Capitalized interest related to regulatory authorizations | (481,807) | (581,766) | ||||
Proceeds from other debt investments | — | 148,448 | ||||
Purchases of regulatory authorizations, including deposits | (1,104) | (1,771) | ||||
Sale of assets to CONX | 26,719 | — | ||||
Other, net | (4,716) | (13,286) | ||||
Net cash flows from investing activities | (848,165) | (2,251,090) | ||||
Cash Flows From Financing Activities: | ||||||
Repayment of long-term debt and finance lease obligations | (52,758) | (53,514) | ||||
Redemption and repurchases of convertible and senior notes | (951,170) | (1,582,181) | ||||
Proceeds from issuance of senior notes | — | 1,500,000 | ||||
Early debt extinguishment gains (losses) of convertible and senior notes | — | 68,086 | ||||
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock | 1,832 | 8,297 | ||||
Purchase of SNR Management's ownership interest in SNR HoldCo | (441,998) | — | ||||
Debt issuance costs and debt (discount) premium | — | 21,635 | ||||
Other, net | 2 | (4,710) | ||||
Net cash flows from financing activities | (1,444,092) | (42,387) | ||||
Effect of exchange rates on cash and cash equivalents | (3,701) | 3,483 | ||||
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | (1,364,974) | (750,888) | ||||
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period | 1,911,601 | 2,561,803 | ||||
Cash, cash equivalents, restricted cash and cash equivalents, end of period | $ | 546,627 | $ | 1,810,915 | ||
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SOURCE EchoStar Corporation
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