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Selected financial results for the Company are as follows (dollars in thousands, except earnings per share):
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
-------------------
12/31/09 12/31/08 Change
-------- -------- ------
(unaudited)
Revenues $73,249 $40,688 $32,561
Operating expenses:
Direct costs of revenue (exclusive of
depreciation and amortization) 24,458 20,451 4,007
Depreciation and amortization 16,423 2,667 13,756
Selling, general and administrative 13,014 11,765 1,249
Inventory impairment and satellite
impairment settlement - 2,155 (2,155)
--- ----- ------
Total operating expenses 53,895 37,038 16,857
------ ------ ------
Income from operations 19,354 3,650 15,704
Interest expense, net 8,181 2,911 5,270
Other non-operating expense - 1,000 (1,000)
Loss from early extinguishment of debt 27,127 - 27,127
------ --- ------
Loss before income taxes (15,954) (261) (15,693)
(Benefit) provision for income taxes (27,673) 3,378 (31,051)
------- ----- -------
Net income (loss) $11,719 $(3,639) $15,358
======= ======= =======
Earnings (loss) per share basic $0.60 $(0.20) $0.80
===== ====== =====
Earnings (loss) per share diluted $0.55 $(0.20) $0.75
===== ====== =====
Weighted average shares diluted 21,139 18,228 2,911
====== ====== =====
Year Ended
----------
12/31/09 12/31/08 Change
-------- -------- ------
(unaudited)
Revenues $271,102 $146,659 $124,443
Operating expenses:
Direct costs of revenue (exclusive of
depreciation and amortization) 94,693 72,216 22,477
Depreciation and amortization 57,166 11,357 45,809
Selling, general and administrative 46,608 36,990 9,618
Inventory impairment and satellite
impairment settlement - 3,296 (3,296)
--- ----- ------
Total operating expenses 198,467 123,859 74,608
------- ------- ------
Income from operations 72,635 22,800 49,835
Interest expense, net 31,020 11,452 19,568
Other non-operating expense - 1,000 (1,000)
Loss from early extinguishment of debt 27,127 - 27,127
------ --- ------
Income before income taxes 14,488 10,348 4,140
Benefit for income taxes (17,573) (16,267) (1,306)
------- ------- ------
Net income $32,061 $26,615 $5,446
======= ======= ======
Earnings per share basic $1.71 $1.48 $0.23
===== ===== =====
Earnings per share diluted $1.55 $1.36 $0.19
===== ===== =====
Weighted average shares diluted 20,685 19,558 1,127
====== ====== =====
ADJUSTED EBITDA
(in thousands)
Three Months Ended Year Ended
------------------ ----------
12/31/09 12/31/08 12/31/09 12/31/08
-------- -------- -------- --------
Net income (loss) $11,719 $(3,639) $32,061 $26,615
Adjustments:
Interest expense, net 8,181 2,911 31,020 11,452
(Benefit) provision for
income taxes (27,673) 3,378 (17,573) (16,267)
Depreciation and amortization 16,423 2,667 57,166 11,357
Non-cash stock-based
compensation expense 876 795 2,371 3,396
Loss from early
extinguishment of debt 27,127 - 27,127 -
Non-cash loss on inventory and
investment impairments - 3,154 - 3,154
--- ----- --- -----
Adjusted EBITDA $36,653 $9,266 $132,172 $39,707
======= ====== ======== =======
Adjusted EBITDA is a non-GAAP financial measure that represents net income
(loss) before net interest income or expense, income tax expense
(benefit), depreciation and amortization expenses, loss from early
extinguishment of debt, non-cash loss on inventory and investment
impairments and non-cash stock-based compensation expense. We believe
that Adjusted EBITDA provides useful information to investors because it
is an indicator of the strength and performance of our ongoing operations.
However, Adjusted EBITDA is not a recognized term under financial
performance under GAAP, and our calculation of Adjusted EBITDA may not be
comparable to the calculation of similarly titled measures of other
companies.
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2009 2008 Change
---- ---- ------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $208,872 $106,733 $102,139
Short-term investments - 3,813 (3,813)
Accounts receivable - trade and
unbilled receivables (net of
allowances: 2009 - $923; 2008 -
$738) 32,578 26,851 5,727
Income tax receivable 40,237 20,142 20,095
Restricted cash 52,268 - 52,268
Other current assets 16,836 34,325 (17,489)
------ ------ -------
Total current assets 350,791 191,864 158,927
Property, plant and
equipment, net 25,381 22,748 2,633
Satellites and related ground
systems, net 505,035 488,145 16,890
Goodwill 34,264 34,264 -
Intangible assets, net 11,685 14,335 (2,650)
Non-current restricted cash 13,653 - 13,653
Other non-current assets 6,398 12,978 (6,580)
Deferred tax assets - 30,271 (30,271)
--- ------ -------
Total assets $947,207 $794,605 $152,602
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
expenses $33,997 $69,763 $(35,766)
Current portion of deferred revenue 52,221 40,629 11,592
Current deferred tax liabilities 4,744 5,594 (850)
Current portion of long-term debt 497 - 497
--- --- ---
Total current liabilities 91,459 115,986 (24,527)
Long-term debt 380,594 247,502 133,092
Long-term deferred revenue, net
of current portion 192,313 199,317 (7,004)
Non-current income tax
reserve and deferred tax liabilities 2,326 1,396 930
Other non-current liabilities 560 - 560
--- --- ---
Total liabilities 667,252 564,201 103,051
------- ------- -------
Commitments and contingencies
Stockholders' equity:
Common stock 199 184 15
Additional paid-in capital 227,988 210,513 17,475
Retained earnings 51,768 19,707 32,061
------ ------ ------
Total stockholders' equity 279,955 230,404 49,551
------- ------- ------
Total liabilities and
stockholders' equity $947,207 $794,605 $152,602
======== ======== ========
STATEMENT OF CASH FLOWS INFORMATION
(in thousands)
Year Ended
----------
12/31/09 12/31/08 Change
-------- -------- ------
(unaudited)
Net cash provided by (used in) operating
activities $100,207 $(1,872) $102,079
Net cash used in investing activities (123,034) (124,187) 1,153
Net cash provided by financing activities 124,966 6,031 118,935
------- ----- -------
Net increase (decrease) in cash and cash
equivalents 102,139 (120,028) 222,167
Cash and cash equivalents, beginning of
year 106,733 226,761 (120,028)
------- ------- --------
Cash and cash equivalents, end of year $208,872 $106,733 $102,139
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