Intelsat Reports Second Quarter 2014 Results

  • Second quarter revenue of $615.7 million;
  • Second quarter net income attributable to Intelsat S.A. of $66.8 million;
  • Net income per diluted common share of $0.53; Adjusted net income per diluted common share of $0.76; EBITDA of $485.5 million and Adjusted EBITDA of $490.4 million or 80% of revenue;
  • $10.3 billion contracted backlog provides visibility for future revenue and cash flow; and
  • Company updates 2014 guidance, including improved Adjusted EBITDA margin and increased debt pay down of approximately $475 million; reaffirms 2014 revenue guidance

 

Luxembourg, 4 August 2014

Intelsat S.A. (NYSE: I), the world’s leading provider of satellite services, today reported total revenue of $615.7 million and net income attributable to Intelsat S.A. of $66.8 million, or $0.53 per common share on a diluted basis, for the three months ended June 30, 2014.  The company reported adjusted net income per diluted common share1 of $0.76 for the three months ended June 30, 2014.

 

Intelsat S.A. reported EBITDA1, or earnings before net interest, taxes and depreciation and amortization, of $485.5 million, or 79 percent of revenue, and Adjusted EBITDA1 of $490.4 million, or 80 percent of revenue, for the three months ended June 30, 2014.

 

Intelsat CEO, Dave McGlade, said, “In the second quarter, we performed in line with our expectations, delivering strong Adjusted EBITDA margins and making solid progress against our long-term business strategy and equity thesis.”  

 

“We remain focused on working with our blue chip customers to provide them with satellite-based infrastructure that supports their business growth.  During the quarter we announced a new satellite program with direct-to-home (“DTH”) operator, MultiChoice, as the anchor customer.  The 15-year agreement expands our relationship with the leading pay television operator in Africa, and positions us for long-term growth. We ended the second quarter of 2014 with a contracted backlog of $10.3 billion, providing visibility into revenue and cash flow.

 

McGlade continued, “Our satellite programs remain on track, with Intelsat 30 expected to launch in the fourth quarter.  With the benefits of strong Adjusted EBITDA margins, lower than average lifecycle capital expenditures and reduced interest costs producing strong cash flows, we continue to demonstrate progress on the first phase of our two-phase investment thesis.  Today, we have raised our Adjusted EBITDA margin guidance and increased the target to de-lever our balance sheet in 2014 to approximately $475 million.”

 

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 Monday, August 4, 2014 to discuss the company’s financial results for the second quarter ended June 30, 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 (800) 591 6942 from North America, and +1 (617) 614 4909 from all other locations. The participant pass code is 90316969.

 

Participants will have access to a replay of the conference call through August 11, 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 96018713.

 

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.