Intelsat Reports 2013 Results

Posted by Michelle Howard February 20, 2014

Fourth quarter revenue of $642.8 million; fiscal year 2013 revenue of $2,603.6 million
Fourth quarter net income attributable to Intelsat S.A. of $72.6 million; 2013 fiscal year net loss of $255.7 million
Debt prepayment of $100 million in the fourth quarter of 2013; total 2013 debt decline of $617 million
$10.1 billion contracted backlog provides visibility for future revenue and cash flow

Intelsat S.A. has reported total revenue of $642.8 million and net income attributable to Intelsat S.A. of $72.6 million, or $0.62 per share on a diluted basis, for the three months ended December 31, 2013. The company reported adjusted diluted net income per common share1 of $0.84 for the three months ended December 31, 2013.

Intelsat S.A. reported EBITDA1, or earnings before net interest, taxes and depreciation and amortization, of $506.4 million, and Adjusted EBITDA1 of $509.8 million, or 79 percent of revenue, for the three months ended December 31, 2013.

For the year ended December 31, 2013, Intelsat reported total revenue of $2,603.6 million and a net loss attributable to Intelsat S.A. of $255.7 million, or $2.70 per share on a diluted basis. The company reported adjusted diluted net income per common share of $2.44 for the year ended December 31, 2013. Intelsat also reported EBITDA of $1,936.0 million, and Adjusted EBITDA of $2,033.4 million, or 78 percent of revenue, for the year ended December 31, 2013.

Intelsat CEO, Dave McGlade said, "Intelsat's fourth quarter was in line with our expectations and capped a year of key accomplishments for the company as we position Intelsat to deliver on its long-term value creation strategy. The completion of our IPO, combined with successful refinancing activity, has enabled us to initiate our de-levering plan, improve our maturity profile and significantly reduce our debt service. On the operational side, in 2013, we have charted a solid course for steady longer-term growth expected upon the entry into service of our innovative Intelsat EpicNG satellites beginning in 2016.

"During the 2013 fourth quarter, we saw solid bookings and renewals in our media and network services businesses, and we also furthered our presence in the broadband mobility sector. Backlog at year-end 2013 was $10.1 billion, which provides visibility into revenue and cash flow.

"Performance overall continued to reflect two trends affecting our revenue growth, including the on-going effects of reduced U.S. government spending and the oversupply environment in Africa, which affects pricing within network services applications in that region. At present, we believe these factors will persist in 2014, resulting in overall reduced revenues for the full year compared to 2013, while our mix of business and strong financial discipline should enable us to deliver Adjusted EBITDA margins consistent with 2013 results.

We also expect solid cash flows as we manage costs carefully, harvest efficiencies in our capital spending plans, and benefit from reduced interest expense. This anticipated performance will leave us in a good position to continue to de-lever our balance sheet as we position for longer-term organic growth."

Two documents are available to investors to assist with interpreting quarterly results and 2014 business trends. As previously announced, beginning this quarter, Intelsat is providing a detailed quarterly commentary on the company's business trends and financial performance prior to the live earnings call, in addition to the earnings release.