Intelsat Reports First Quarter 2014 Results
- First quarter revenue of $628.9 million;
- First quarter net income attributable to Intelsat S.A. of $81.9 million;
- Net income per diluted common share of $0.70;
- Adjusted net income per diluted common share of $0.92; and
- $9.9 billion contracted backlog provides visibility for future revenue and cash flow
- Company affirms 2014 guidance, including debt paydown of approximately $400 million
Luxembourg, 1 May 2014
Intelsat S.A. (NYSE: I), the world’s leading provider of satellite services, today reported total revenue of $628.9 million and net income attributable to Intelsat S.A. of $81.9 million, or $0.70 per common share on a diluted basis, for the three months ended March 31, 2014. The company reported adjusted net income per diluted common share1 of $0.92 for the three months ended March 31, 2014.
Intelsat S.A. reported EBITDA1, or earnings before net interest, taxes and depreciation and amortization, of $498.7 million, or 79 percent of revenue, and Adjusted EBITDA1 of $505.8 million, or 80 percent of revenue, for the three months ended March 31, 2014.
Intelsat CEO, Dave McGlade, said, “Intelsat performed to plan in the first quarter, generating strong Adjusted EBITDA margins and free cash flow from operations. Mobility applications, such as aeronautical broadband and maritime, are generating growth, but total revenue continues to be challenged by reduced U.S. government spending and pricing pressure on network services applications in Africa.”
“In other parts of our business, we continued to support regional media customers with distribution services and digital terrestrial television platforms. We expanded distribution agreements with leaders in the maritime sector, building on our leadership position in broadband mobility solutions. We ended the first quarter of 2014 with a contracted backlog of $9.9 billion, providing visibility into revenue and cash flow.
McGlade continued, “Our satellite programs remain on track, with our single 2014 launch, Intelsat 30, expected to launch in the third quarter. With the benefits of strong Adjusted EBITDA margins, lower than average lifecycle capital expenditures and reduced interest costs producing strong cash flows, we remain committed to our two-phase investment thesis and the target to de-lever our balance sheet in 2014 by approximately $400 million, as forecasted in our February guidance.”
To read the full version of the earnings release, including detailed financial results, please download the Earnings Release.
To read the new Quarterly Commentary, including business trends, please download the Quarterly Commentary.
1In 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, Adjusted net income per diluted common share and related margins included in this release are non-GAAP financial measures. Please see the consolidated financial information below for information reconciling non-GAAP financial measures to comparable GAAP financial measures.
Conference Call
Information Intelsat management will hold a public conference call at 11:00 a.m. EDT on Thursday, May 1, 2014 to discuss the company’s financial results for the first quarter ended March 31, 2014. Access to the live conference call will also be available via the Internet at www.intelsat.com/investors . To participate on the live call, participants should dial + 1 (877) 280 4955 from North America, and +1 (857) 244 7312 from all other locations. The participant pass code is 79205698. Participants will have access to a replay of the conference call through May 8, 2014. The replay number for North America is +1 (888) 286-8010, and for all other locations it is +1 (617) 801-6888. The participant pass code for the replay is 17064130.
About Intelsat
Intelsat S.A. (NYSE: I) is the world’s leading provider of satellite services, delivering high performance connectivity solutions for media, fixed and mobile broadband infrastructure, enterprise and government and military applications. Intelsat’s satellite, teleport and fiber infrastructure is unmatched in the industry, setting the standard for transmissions of video and broadband services. From the globalization of content and the proliferation of HD, to the expansion of cellular networks and mobile broadband access, Intelsat creates value for its customers through creative space-based solutions. Envision…Connect…Transform…with Intelsat, celebrating 50 years of space leadership in 2014.
For more information, visit www.intelsat.com.
