News Release
Intelsat Announces Fourth Quarter and Full-Year 2020 Results
-
Fourth quarter revenue of
$483 million ; full-year 2020 revenue of$1,913 million -
Fourth quarter net loss attributable to Intelsat S.A. of
$272 million ; full-year 2020 net loss attributable to Intelsat S.A. of$912 million -
Fourth quarter Adjusted EBITDA of
$308 million or 64 percent of revenue; full-year 2020 Adjusted EBITDA of$1,277 million or 67 percent of revenue -
December 31, 2020 contracted backlog of$6.1 billion
LUXEMBOURG--(BUSINESS WIRE)--Mar. 30, 2021--
Intelsat S.A. (OTC:
Intelsat reported total revenue of
Intelsat reported EBITDA1, or earnings before net interest, gain on early extinguishment of debt, taxes and depreciation and amortization, of
For the year ended
Intelsat’s Chief Executive Officer,
Spengler added, “As we look to 2021 and beyond, our team is focused on the delivery of high-value services to our customers, and also on the catalysts that will drive the transformation of our business. These include executing on the C-band relocation to secure the accelerated payments, successfully integrating and expanding the Intelsat commercial aviation business and emerging from restructuring as a healthy and flexible company. We are investing in our next-generation software defined network, which will be critical to this transformation and enable us to deliver on our strategy to be an industry leader in end-to-end managed services.”
Fourth Quarter and Full-Year 2020 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
Network services revenue was
The decline in network services revenue from the prior full year was primarily attributed to COVID-19 related contract renegotiations and capacity reductions with mobility customers, a one time recognition of accelerated revenue in the prior year period with no comparable amount in the current period, and reduced demand impacting renewals and renewals at lower pricing. These decreases were partially offset by new business from network operators and the expansion of FlexMaritime mobility managed services. Inflight services had an aggregate increase of
Media
Media revenue was
Media revenue was
The decline in media revenue from the prior year reflects the impact of non-renewals due to compression and sector trends, termination of a ground services contract, and the reduction in occasional use services for sporting events and concerts related to COVID-19.
Government
Government revenue was
Government revenue was
Government revenue was driven by new business, including our FlexGround land mobility managed services and satellite network services, offset primarily by the impact of non-renewals when compared to the prior year.
Average Fill Rate
Intelsat’s average fill rate at
Satellite Activity
Galaxy 30 (G-30) successfully entered into service on
Subsequent to year end, Northrop Grumman’s in-space servicing vehicle, Mission Extension Vehicle 2, or MEV-2, is heading to a rendezvous and docking with Intelsat 1002, anticipated to occur in early Q2 2021. MEV-2 is designed to extend the life of the Intelsat 1002 satellite by approximately five years, improving Intelsat's capital investment efficiency.
Contracted Backlog
At
C-band Proceeding at the
On
Financial Results for the Three Months Ended
Total revenue for the three months ended
Total On-Network Revenues decreased by
-
Transponder services reported an aggregate decrease of
$13.5 million , primarily due to a$10.2 million decrease from network services customers, and a$6.2 million decrease in revenue from media customers, partially offset by a$2.8 million increase in revenue from government customers. The decrease in revenue from network services customers was primarily driven by reduced demand resulting in non-renewals and lower pricing, partially offset by an increase in revenue resulting from new network operator and mobility customer business. The decline in revenue from media customers was primarily driven by non-renewals due to compression and sector trends and renewals at lower pricing, partially offset by increased revenues from new business. The increase in revenue from government customers was primarily due to services shifted from off-network to on-network capacity.
-
Managed services reported an aggregate decrease of
$24.5 million , primarily due to a$21.7 million decrease from network services customers and a$3.9 million decrease from media customers, partially offset by a$1.1 million increase from government customers. The decrease in revenue from network services customers was driven by COVID-19 related contract renegotiations and credits with mobility customers, partially offset by increases in revenue due to increased uptake of new Flex managed services. The decrease in revenue from media customers was mainly related to a decline in occasional use video services, as well as non-renewals and an early termination of a contract. The increase in revenue from government customers was primarily attributable to new FlexGround land mobility managed services.
Total Off-Network and Other Revenues decreased by
-
Transponder, Mobile Satellite Services (MSS) and other Off-Network services revenues decreased by an aggregate of
$8.3 million to$40.6 million , primarily due to lower government revenues of$6.4 million as a result of a decline in pricing upon service renewal, services moved to on-network capacity, as well as a decrease in sales of customer premises equipment.
-
Satellite-related services reported a decrease of
$3.2 million to$10.3 million , largely related to revenues from professional fees in connection with Mission Extension Vehicle 1 (MEV-1) and transfer orbit services occurring during the fourth quarter of 2019 with no comparable amounts in the current period.
Direct costs of revenue (excluding depreciation and amortization) increased by
Selling, general and administrative expenses increased by
Depreciation and amortization expense increased by
Impairment of non-amortizable intangible and other assets represents impairment charges of
Other operating expense - C-band consists of reimbursable and non-reimbursable costs associated with our C-band spectrum relocation efforts. For the three months ended
Interest expense, net decreased by
Other income, net was
Reorganization items reflect direct costs incurred in connection with our Chapter 11 cases. Reorganization items of
Provision for income taxes was
Cash received for income taxes, net of refunds, totaled
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 From (Used In) Operations1
Net cash provided by operating activities was
- - - - - - - - - - - - - - - - - - - - - - - - - -
1In this release, financial measures are presented both in accordance with
About Intelsat
As the foundational architects of satellite technology, Intelsat 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 www.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 under Chapter 11 (the “Chapter 11 Cases”) of the United States Bankruptcy Code in the
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;
|
INTELSAT S.A. (DEBTOR-IN-POSSESSION)
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
||||||||
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
||||||||
|
Revenue |
$ |
516,951 |
|
|
$ |
482,777 |
|
|
$ |
2,061,465 |
|
|
$ |
1,913,080 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Direct costs of revenue (excluding depreciation and amortization) |
100,558 |
|
|
119,052 |
|
|
406,153 |
|
|
450,823 |
|
||||
|
Selling, general and administrative |
58,655 |
|
|
99,643 |
|
|
226,918 |
|
|
314,229 |
|
||||
|
Depreciation and amortization |
161,795 |
|
|
165,212 |
|
|
658,233 |
|
|
653,447 |
|
||||
|
Satellite impairment loss |
— |
|
|
— |
|
|
381,565 |
|
|
— |
|
||||
|
Impairment of non-amortizable intangible and other assets |
— |
|
|
145,700 |
|
|
— |
|
|
191,943 |
|
||||
|
Other operating expense - C band |
— |
|
|
33,642 |
|
|
— |
|
|
33,642 |
|
||||
|
Total operating expenses |
321,008 |
|
|
563,249 |
|
|
1,672,869 |
|
|
1,644,084 |
|
||||
|
Income from operations |
195,943 |
|
|
(80,472 |
) |
|
388,596 |
|
|
268,996 |
|
||||
|
Interest expense, net |
319,866 |
|
|
134,666 |
|
|
1,273,112 |
|
|
813,603 |
|
||||
|
Other income (expense), net |
(1,704 |
) |
|
5,578 |
|
|
(34,078 |
) |
|
14,142 |
|
||||
|
Reorganization items |
— |
|
|
(50,802 |
) |
|
— |
|
|
(385,861 |
) |
||||
|
Loss before income taxes |
(125,627 |
) |
|
(260,362 |
) |
|
(918,594 |
) |
|
(916,326 |
) |
||||
|
Provision for (benefit from) income taxes |
(11,268 |
) |
|
10,636 |
|
|
(7,384 |
) |
|
(7,055 |
) |
||||
|
Net loss |
(114,359 |
) |
|
(270,998 |
) |
|
(911,210 |
) |
|
(909,271 |
) |
||||
|
Net income attributable to noncontrolling interest |
(600 |
) |
|
(609 |
) |
|
(2,385 |
) |
|
(2,393 |
) |
||||
|
Net loss attributable to Intelsat S.A. |
$ |
(114,959 |
) |
|
$ |
(271,607 |
) |
|
$ |
(913,595 |
) |
|
$ |
(911,664 |
) |
|
Net loss per common share attributable to Intelsat S.A.: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
(0.81 |
) |
|
$ |
(1.91 |
) |
|
$ |
(6.51 |
) |
|
$ |
(6.42 |
) |
|
Diluted |
$ |
(0.81 |
) |
|
$ |
(1.91 |
) |
|
$ |
(6.51 |
) |
|
$ |
(6.42 |
) |
|
INTELSAT S.A. (DEBTOR-IN-POSSESSION)
|
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|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
||||||||
|
Net loss |
$ |
(114,359 |
) |
|
$ |
(270,998 |
) |
|
$ |
(911,210 |
) |
|
$ |
(909,271 |
) |
|
Add: |
|
|
|
|
|
|
|
||||||||
|
Interest expense, net |
319,866 |
|
|
134,666 |
|
|
1,273,112 |
|
|
813,603 |
|
||||
|
Provision for (benefit from) income taxes |
(11,268 |
) |
|
10,636 |
|
|
(7,384 |
) |
|
(7,055 |
) |
||||
|
Depreciation and amortization |
161,795 |
|
|
165,212 |
|
|
658,233 |
|
|
653,447 |
|
||||
|
EBITDA |
$ |
356,034 |
|
|
$ |
39,516 |
|
|
$ |
1,012,751 |
|
|
$ |
550,724 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
EBITDA Margin |
69 |
% |
|
8 |
% |
|
49 |
% |
|
29 |
% |
||||
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
|
INTELSAT S.A. (DEBTOR-IN-POSSESSION)
|
|||||||||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
||||||||
|
Net loss |
$ |
(114,359 |
) |
|
$ |
(270,998 |
) |
|
$ |
(911,210 |
) |
|
$ |
(909,271 |
) |
|
Add (Subtract): |
|
|
|
|
|
|
|
||||||||
|
Interest expense, net |
319,866 |
|
|
134,666 |
|
|
1,273,112 |
|
|
813,603 |
|
||||
|
Provision for (benefit from) income taxes |
(11,268 |
) |
|
10,636 |
|
|
(7,384 |
) |
|
(7,055 |
) |
||||
|
Depreciation and amortization |
161,795 |
|
|
165,212 |
|
|
658,233 |
|
|
653,447 |
|
||||
|
EBITDA |
356,034 |
|
|
39,516 |
|
|
1,012,751 |
|
|
550,724 |
|
||||
|
Add: |
|
|
|
|
|
|
|
||||||||
|
Compensation and benefits(1) |
2,974 |
|
|
18,448 |
|
|
13,189 |
|
|
57,786 |
|
||||
|
Non-recurring and other non-cash items(2) |
8,252 |
|
|
50,076 |
|
|
58,625 |
|
|
75,913 |
|
||||
|
Satellite impairment loss(3) |
— |
|
|
— |
|
|
381,565 |
|
|
— |
|
||||
|
Impairment of non-amortizable intangible and other assets(4) |
— |
|
|
145,700 |
|
|
— |
|
|
191,943 |
|
||||
|
Reorganization items(5) |
— |
|
|
50,802 |
|
|
— |
|
|
385,861 |
|
||||
|
Proportionate share from unconsolidated joint venture(6): |
|
|
|
|
|
|
|
||||||||
|
Interest expense, net |
1,189 |
|
|
252 |
|
|
5,014 |
|
|
3,451 |
|
||||
|
Depreciation and amortization |
2,815 |
|
|
2,814 |
|
|
10,320 |
|
|
11,258 |
|
||||
|
Adjusted EBITDA(7)(8) |
$ |
371,264 |
|
|
$ |
307,608 |
|
|
$ |
1,481,464 |
|
|
$ |
1,276,936 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted EBITDA margin |
72 |
% |
|
64 |
% |
|
72 |
% |
|
67 |
% |
||||
-
Reflects non-cash expenses incurred relating to our equity compensation plans and, for the year ended
December 31, 2020 , expenses relating to our employee retention incentive plans in connection with our Chapter 11 proceedings. - Reflects certain non-recurring expenses, gains and losses and non-cash items, including the following: professional fees related to our liability and tax management initiatives; costs associated with our C-band spectrum solution proposal; corporate strategy and development costs; certain research and development costs; severance, retention and relocation payments; changes in fair value of certain investments; certain foreign exchange gains and losses; and other various non-recurring expenses. In 2018 and 2019, these costs were partially offset by non-cash income related to the recognition of deferred revenue on a straight-line basis for certain prepaid capacity service contracts.
- Reflects a non-cash impairment charge recorded in connection with the Intelsat 29e satellite loss in 2019.
-
Reflects a non-cash impairment charge recorded in connection with the write-off of certain satellite and launch vehicle deposits (see Item 8, Note 9—Satellites and Other Property and Equipment of Intelsat’s Annual Report on Form 10-K for the year ended
December 31, 2020 (the “2020 Annual Report”)), and trade name and orbital slots impairments (see Item 8, Note 11—Goodwill and Other Intangible Assets of the 2020 Annual Report). - Reflects direct costs incurred in connection with our Chapter 11 proceedings. See Item 8, Note 2—Chapter 11 Proceedings, Ability to Continue as a Going Concern and Other Related Matters of the 2020 Annual Report.
-
Reflects adjustments related to our interest in
Horizons-3 Satellite LLC (“Horizons 3”). See Item 8, Note 10(b)—Investments—Horizons-3 Satellite LLC of the 2020 Annual Report. -
For the three months ended
December 31, 2019 and 2020, Adjusted EBITDA included$26.1 million and$26.4 million , respectively, and for the years endedDecember 31, 2019 and 2020, Adjusted EBITDA included$102.2 million and$105.1 million , respectively, of revenue relating to the significant financing component identified in customer contracts in accordance with the adoption of ASC 606, Revenue from Contracts with Customers. These impacts are not permitted to be reflected in the applicable consolidated and Adjusted EBITDA definitions under our debt agreements. -
For the three months ended
December 31, 2019 and 2020, Intelsat S.A. Adjusted EBITDA reflected$4.9 million and$3.6 million , respectively, and for the years endedDecember 31, 2019 and 2020,$12.5 million and$17.9 million , respectively, of Adjusted EBITDA attributable toIntelsat Horizons-3 LLC , its subsidiaries and its proportionate share of Horizons 3. These entities are considered to be unrestricted subsidiaries under the definitions set forth in our applicable debt agreements.
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
|
INTELSAT S.A. (DEBTOR-IN-POSSESSION)
|
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|
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|
||||
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|
|
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|
ASSETS |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
810,626 |
|
|
$ |
1,060,917 |
|
|
Restricted cash |
20,238 |
|
|
21,130 |
|
||
|
Receivables, net of allowances of |
255,722 |
|
|
659,444 |
|
||
|
Contract assets |
47,721 |
|
|
39,774 |
|
||
|
Inventory |
430 |
|
|
147,094 |
|
||
|
Prepaid expenses and other current assets |
38,800 |
|
|
136,611 |
|
||
|
Total current assets |
1,173,537 |
|
|
2,064,970 |
|
||
|
Satellites and other property and equipment, net |
4,702,063 |
|
|
4,757,877 |
|
||
|
|
2,620,627 |
|
|
2,698,247 |
|
||
|
Non-amortizable intangible assets |
2,452,900 |
|
|
2,295,000 |
|
||
|
Amortizable intangible assets, net |
276,752 |
|
|
290,569 |
|
||
|
Contract assets, net of current portion |
74,109 |
|
|
86,017 |
|
||
|
Other assets |
504,394 |
|
|
605,001 |
|
||
|
Total assets |
$ |
11,804,382 |
|
|
$ |
12,797,681 |
|
|
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable and accrued liabilities |
$ |
88,107 |
|
|
$ |
252,998 |
|
|
Taxes payable |
6,402 |
|
|
7,493 |
|
||
|
Employee related liabilities |
44,648 |
|
|
43,404 |
|
||
|
Accrued interest payable |
308,657 |
|
|
17,747 |
|
||
|
Current maturities of long-term debt |
— |
|
|
5,903,724 |
|
||
|
Contract liabilities |
137,706 |
|
|
157,320 |
|
||
|
Deferred satellite performance incentives |
42,835 |
|
|
47,377 |
|
||
|
Other current liabilities |
62,446 |
|
|
73,479 |
|
||
|
Total current liabilities |
690,801 |
|
|
6,503,542 |
|
||
|
Long-term debt |
14,465,483 |
|
|
— |
|
||
|
Contract liabilities, net of current portion |
1,113,450 |
|
|
1,447,891 |
|
||
|
Deferred satellite performance incentives, net of current portion |
175,837 |
|
|
138,116 |
|
||
|
Deferred income taxes |
55,171 |
|
|
61,345 |
|
||
|
Accrued retirement benefits, net of current portion |
125,511 |
|
|
129,837 |
|
||
|
Other long-term liabilities |
166,977 |
|
|
262,900 |
|
||
|
Liabilities subject to compromise |
— |
|
|
10,168,518 |
|
||
|
Shareholders’ deficit: |
|
|
|
||||
|
Common shares; nominal value |
1,411 |
|
|
1,421 |
|
||
|
Paid-in capital |
2,565,696 |
|
|
2,573,840 |
|
||
|
Accumulated deficit |
(7,503,830 |
) |
|
(8,416,410 |
) |
||
|
Accumulated other comprehensive loss |
(63,135 |
) |
|
(80,322 |
) |
||
|
|
(4,999,858 |
) |
|
(5,921,471 |
) |
||
|
Noncontrolling interest |
11,010 |
|
|
7,003 |
|
||
|
Total liabilities and shareholders’ deficit |
$ |
11,804,382 |
|
|
$ |
12,797,681 |
|
|
INTELSAT S.A. (DEBTOR-IN-POSSESSION)
|
|||||||||||||||
|
($ in thousands) |
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
||||||||
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
||||||||
|
Cash flows from operating activities: |
|
|
|
|
|
||||||||||
|
Net loss |
$ |
(114,359 |
) |
|
$ |
(270,998 |
) |
|
$ |
(911,210 |
) |
|
$ |
(909,271 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
|
Depreciation and amortization |
161,795 |
|
|
165,212 |
|
|
658,233 |
|
|
653,447 |
|
||||
|
Provision for (benefit from) expected credit losses |
3,761 |
|
|
20,580 |
|
|
17,190 |
|
|
56,940 |
|
||||
|
Foreign currency transaction (gain) loss |
(2,991 |
) |
|
(3,075 |
) |
|
2,128 |
|
|
4,255 |
|
||||
|
Loss on disposal of assets |
231 |
|
|
14 |
|
|
402 |
|
|
14 |
|
||||
|
Satellite impairment loss |
— |
|
|
— |
|
|
381,565 |
|
|
— |
|
||||
|
Impairment of non-amortizable intangible and other assets |
— |
|
|
145,700 |
|
|
— |
|
|
191,943 |
|
||||
|
Share-based compensation |
2,974 |
|
|
3,249 |
|
|
13,189 |
|
|
12,648 |
|
||||
|
Deferred income taxes |
(26,678 |
) |
|
(1,741 |
) |
|
(27,707 |
) |
|
2,979 |
|
||||
|
Amortization of discount, premium, issuance costs and related costs |
10,932 |
|
|
2,447 |
|
|
41,943 |
|
|
22,136 |
|
||||
|
Non-cash reorganization items |
— |
|
|
— |
|
|
— |
|
|
196,974 |
|
||||
|
Debtor-in-possession financing fees |
— |
|
|
7,500 |
|
|
— |
|
|
59,682 |
|
||||
|
Amortization of actuarial loss (gain) and prior service credits for retirement benefits |
(3,908 |
) |
|
659 |
|
|
(3,572 |
) |
|
2,635 |
|
||||
|
Unrealized losses on derivative financial instruments |
1,814 |
|
|
— |
|
|
27,018 |
|
|
372 |
|
||||
|
Unrealized (gains) losses on investments and loans held-for-investment |
7,313 |
|
|
(3,762 |
) |
|
39,695 |
|
|
(3,041 |
) |
||||
|
Amortization of STC costs |
— |
|
|
1,315 |
|
|
— |
|
|
1,315 |
|
||||
|
Sales-type lease |
— |
|
|
— |
|
|
7,064 |
|
|
— |
|
||||
|
Other non-cash items |
(123 |
) |
|
729 |
|
|
(205 |
) |
|
729 |
|
||||
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
|
Receivables |
2,708 |
|
|
(18,604 |
) |
|
(1,307 |
) |
|
(15,835 |
) |
||||
|
Prepaid expenses, contract and other assets |
23,220 |
|
|
67,116 |
|
|
15,664 |
|
|
(137 |
) |
||||
|
Accounts payable and accrued liabilities |
7,975 |
|
|
18,713 |
|
|
10,908 |
|
|
79,337 |
|
||||
|
Accrued interest payable |
25,084 |
|
|
3,910 |
|
|
24,008 |
|
|
52,623 |
|
||||
|
Contract liabilities |
(1,032 |
) |
|
(505 |
) |
|
(18,368 |
) |
|
(63,242 |
) |
||||
|
Accrued retirement benefits |
1,392 |
|
|
(3,604 |
) |
|
(8,224 |
) |
|
(15,857 |
) |
||||
|
Other long-term liabilities |
(7,998 |
) |
|
1,718 |
|
|
(12,875 |
) |
|
656 |
|
||||
|
Net cash provided by operating activities |
92,110 |
|
|
136,573 |
|
|
255,539 |
|
|
331,302 |
|
||||
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
|
Capital expenditures (including capitalized interest) |
(27,553 |
) |
|
(186,807 |
) |
|
(229,818 |
) |
|
(606,759 |
) |
||||
|
Acquisition of business, net of cash acquired |
— |
|
|
(371,009 |
) |
|
— |
|
|
(371,009 |
) |
||||
|
Acquisition of loans held-for-investment |
(51,327 |
) |
|
— |
|
|
(70,751 |
) |
|
(2,300 |
) |
||||
|
Proceeds from principal repayments on loans held-for-investment |
— |
|
|
— |
|
|
— |
|
|
973 |
|
||||
|
Capital contribution to unconsolidated affiliate (including capitalized interest) |
(4,951 |
) |
|
— |
|
|
(5,289 |
) |
|
(2,692 |
) |
||||
|
Acquisition of intangible assets |
— |
|
|
(344 |
) |
|
— |
|
|
(344 |
) |
||||
|
Other proceeds from satellites |
5,625 |
|
|
— |
|
|
13,125 |
|
|
5,625 |
|
||||
|
Net cash used in investing activities |
(78,206 |
) |
|
(558,160 |
) |
|
(292,733 |
) |
|
(976,506 |
) |
||||
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
|
Proceeds from debtor-in-possession financing |
— |
|
|
500,000 |
|
|
— |
|
|
1,000,000 |
|
||||
|
Debtor-in-possession financing fees |
— |
|
|
(7,500 |
) |
|
— |
|
|
(59,682 |
) |
||||
|
Proceeds from issuance of long-term debt |
— |
|
|
— |
|
|
400,000 |
|
|
— |
|
||||
|
Debt issuance costs |
— |
|
|
— |
|
|
(4,650 |
) |
|
— |
|
||||
|
Principal payments on deferred satellite performance incentives |
(7,043 |
) |
|
(3,403 |
) |
|
(28,034 |
) |
|
(28,831 |
) |
||||
|
Dividends paid to noncontrolling interest |
(941 |
) |
|
(1,441 |
) |
|
(5,771 |
) |
|
(6,400 |
) |
||||
|
Proceeds from exercise of employee stock options |
78 |
|
|
— |
|
|
1,067 |
|
|
— |
|
||||
|
Other financing activities |
— |
|
|
— |
|
|
298 |
|
|
— |
|
||||
|
Net cash provided by (used in) financing activities |
(7,906 |
) |
|
487,656 |
|
|
362,910 |
|
|
905,087 |
|
||||
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
232 |
|
|
1,128 |
|
|
(2,009 |
) |
|
(3,200 |
) |
||||
|
Net change in cash, cash equivalents and restricted cash |
6,230 |
|
|
67,197 |
|
|
323,707 |
|
|
256,683 |
|
||||
|
Cash, cash equivalents, and restricted cash, beginning of period |
824,634 |
|
|
1,020,350 |
|
|
507,157 |
|
|
830,864 |
|
||||
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
830,864 |
|
|
$ |
1,087,547 |
|
|
$ |
830,864 |
|
|
$ |
1,087,547 |
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
||||||||
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
||||||||
|
Supplemental cash flow information: |
|
|
|
|
|
|
|
||||||||
|
Cash paid for reorganization items included in cash flows from operating activities |
$ |
— |
|
|
$ |
39,228 |
|
|
$ |
— |
|
|
$ |
93,211 |
|
|
Interest paid, net of amounts capitalized |
259,694 |
|
|
82,470 |
|
|
1,099,874 |
|
|
634,704 |
|
||||
|
Income taxes paid (received), net of refunds |
24,300 |
|
|
(12,283 |
) |
|
33,584 |
|
|
(7,566 |
) |
||||
|
Supplemental disclosure of non-cash investing activities: |
|
|
|
|
|
|
|
||||||||
|
Accrued capital expenditures |
$ |
4,298 |
|
|
$ |
(1,972 |
) |
|
$ |
8,123 |
|
|
$ |
49,249 |
|
|
Capitalization of deferred satellite performance incentives |
29,382 |
|
— |
|
|
29,382 |
|
— |
|
||||||
|
Conversion of loans held-for-investment to equity securities |
— |
|
|
— |
|
|
— |
|
|
4,802 |
|
||||
|
Fair value of contract settled as consideration in business acquisition |
— |
|
|
21,304 |
|
|
— |
|
|
21,304 |
|
||||
|
Conversion of payment-in-kind interest on loans held-for-investment |
— |
|
|
3,424 |
|
|
— |
|
|
3,424 |
|
||||
|
INTELSAT S.A. (DEBTOR-IN-POSSESSION)
|
|||||||||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
||||||||
|
Net cash provided by operating activities |
$ |
92,110 |
|
|
$ |
136,573 |
|
|
$ |
255,539 |
|
|
$ |
331,302 |
|
|
Other proceeds from satellites from investing activities |
5,625 |
|
|
— |
|
|
13,125 |
|
|
5,625 |
|
||||
|
Payments for satellites and other property and equipment (including capitalized interest) |
(27,553 |
) |
|
(186,807 |
) |
|
(229,818 |
) |
|
(606,759 |
) |
||||
|
Free cash flow from (used in) operations |
$ |
70,182 |
|
|
$ |
(50,234 |
) |
|
$ |
38,846 |
|
|
$ |
(269,832 |
) |
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
|
INTELSAT S.A. (DEBTOR-IN-POSSESSION) (UNAUDITED)
|
|||||||||||||||||||
|
By Customer Set |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
|
|
Three Months Ended
|
|
|
|
Increase (Decrease) |
|
Percentage change |
||||||||
|
Network Services |
$ |
200,198 |
|
|
39 |
% |
|
$ |
181,709 |
|
|
38 |
% |
|
$ |
(18,489 |
) |
|
(9)% |
|
Media |
210,615 |
|
|
41 |
% |
|
200,583 |
|
|
42 |
% |
|
(10,033 |
) |
|
(5)% |
|||
|
Government |
96,025 |
|
|
19 |
% |
|
92,721 |
|
|
19 |
% |
|
(3,305 |
) |
|
(3)% |
|||
|
Other |
10,113 |
|
|
2 |
% |
|
7,765 |
|
|
2 |
% |
|
(2,348 |
) |
|
(23)% |
|||
|
Total |
$ |
516,951 |
|
|
|
|
$ |
482,777 |
|
|
|
|
$ |
(34,174 |
) |
|
(7)% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
By Service Type |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
|
|
Three Months Ended
|
|
|
|
Increase (Decrease) |
|
Percentage change |
||||||||
|
On-Network Revenues |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Transponder services |
$ |
357,609 |
|
|
69 |
% |
|
$ |
344,082 |
|
|
71 |
% |
|
$ |
(13,528 |
) |
|
(4)% |
|
Managed services |
96,410 |
|
|
19 |
% |
|
71,890 |
|
|
15 |
% |
|
(24,520 |
) |
|
(25)% |
|||
|
Channel |
523 |
|
|
— |
% |
|
297 |
|
|
— |
% |
|
(226 |
) |
|
(43)% |
|||
|
Total on-network revenues |
454,542 |
|
|
88 |
% |
|
416,269 |
|
|
86 |
% |
|
(38,273 |
) |
|
(8)% |
|||
|
Off-Network and Other Revenues |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Transponder, MSS and other off-network services |
48,898 |
|
|
9 |
% |
|
40,610 |
|
|
8 |
% |
|
(8,288 |
) |
|
(17)% |
|||
|
Satellite-related services |
13,511 |
|
|
3 |
% |
|
10,314 |
|
|
2 |
% |
|
(3,197 |
) |
|
(24)% |
|||
|
Total off-network and other revenues |
62,409 |
|
|
12 |
% |
|
50,924 |
|
|
11 |
% |
|
(11,486 |
) |
|
(18)% |
|||
|
Inflight Services Revenues |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Services |
— |
|
|
— |
% |
|
14,122 |
|
|
3 |
% |
|
14,122 |
|
|
|
|||
|
Equipment |
— |
|
|
— |
% |
|
1,463 |
|
|
— |
% |
|
1,463 |
|
|
|
|||
|
Total inflight services revenue |
— |
|
|
— |
% |
|
15,585 |
|
|
3 |
% |
|
15,585 |
|
|
|
|||
|
Total |
$ |
516,951 |
|
|
|
|
$ |
482,777 |
|
|
|
|
$ |
(34,174 |
) |
|
(7)% |
||
|
INTELSAT S.A. (DEBTOR-IN-POSSESSION)
|
||||||||||||||||||||
|
By Customer Set |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Year Ended
|
|
|
|
Year Ended
|
|
|
|
Increase (Decrease) |
|
Percentage change |
|||||||||
|
Network Services |
$ |
770,398 |
|
|
37 |
% |
|
$ |
677,380 |
|
|
35 |
% |
|
$ |
(93,018 |
) |
|
(12)% |
|
|
Media |
882,953 |
|
|
43 |
% |
|
812,528 |
|
|
42 |
% |
|
(70,425 |
) |
|
(8)% |
||||
|
Government |
378,284 |
|
|
18 |
% |
|
392,560 |
|
|
21 |
% |
|
14,276 |
|
|
4% |
||||
|
Other |
29,830 |
|
|
1 |
% |
|
30,612 |
|
|
2 |
% |
|
782 |
|
|
3% |
||||
|
Total |
$ |
2,061,465 |
|
|
|
|
$ |
1,913,080 |
|
|
|
|
$ |
(148,385 |
) |
|
(7)% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
By Service Type |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Year Ended
|
|
|
|
Year Ended
|
|
|
|
Increase (Decrease) |
|
Percentage change |
|||||||||
|
On-Network Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Transponder services |
$ |
1,468,791 |
|
|
71 |
% |
|
$ |
1,372,773 |
|
|
72 |
% |
|
$ |
(96,018 |
) |
|
(7) |
% |
|
Managed services |
374,026 |
|
|
18 |
% |
|
298,638 |
|
|
15 |
% |
|
(75,388 |
) |
|
(20) |
% |
|||
|
Channel |
2,400 |
|
|
— |
% |
|
1,394 |
|
|
— |
% |
|
(1,006 |
) |
|
(42) |
% |
|||
|
Total on-network revenues |
1,845,217 |
|
|
89 |
% |
|
1,672,805 |
|
|
87 |
% |
|
(172,412 |
) |
|
(9) |
% |
|||
|
Off-Network and Other Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Transponder, MSS and other off-network services |
175,602 |
|
|
9 |
% |
|
182,393 |
|
|
10 |
% |
|
6,791 |
|
|
4 |
% |
|||
|
Satellite-related services |
40,646 |
|
|
2 |
% |
|
42,297 |
|
|
2 |
% |
|
1,651 |
|
|
4 |
% |
|||
|
Total off-network and other revenues |
216,248 |
|
|
11 |
% |
|
224,690 |
|
|
12 |
% |
|
8,442 |
|
|
4 |
% |
|||
|
Inflight Services Revenues |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Services |
— |
|
|
— |
% |
|
14,122 |
|
|
1 |
% |
|
14,122 |
|
|
|
||||
|
Equipment |
— |
|
|
— |
% |
|
1,463 |
|
|
— |
% |
|
1,463 |
|
|
|
||||
|
Total inflight services revenue |
— |
|
|
— |
% |
|
15,585 |
|
|
1 |
% |
|
15,585 |
|
|
|
||||
|
Total |
$ |
2,061,465 |
|
|
|
|
$ |
1,913,080 |
|
|
|
|
$ |
(148,385 |
) |
|
(7) |
% |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210330006089/en/
Vice President, Investor Relations
investor.relations@Intelsat.com
Source: Intelsat