Intelsat reports quarterly revenues of $543.2 million
Intelsat, Ltd. reported revenue of $543.2 million and a net loss of $63.4 million for the quarter ended December 31, 2006. The company also reported Intelsat, Ltd. EBITDAi, or earnings before interest, taxes and depreciation and amortization, for the quarter of $387.5 million.
For the full year 2006, Intelsat reported revenue of $1.7 billion, a net loss of $368.7 million, and Intelsat, Ltd. EBITDA of $1.1 billion. The net loss reflects the impact of an asset impairment charge of $49.0 million to write down the net book value of one of the company’s satellites that experienced an anomaly in September 2006. The net loss also reflects the impact of restructuring costs of $26.5 million related to the PanAmSat Acquisition. Intelsat Bermuda Adjusted EBITDA was $1.3 billion, or 75 percent of revenue, for the full year period. Intelsat generated free cash flow from operationsi of $296.5 million during the year ended December 31, 2006. Free cash flow from operations is defined as net cash provided by operating activities, less payments for satellites and other property, plant and equipment and associated capitalized interest.
“2006 was highly productive with regard to Intelsat’s operating performance and strategic objectives,” said David McGlade, CEO. “Our core transponder lease services and managed solutions revenues are growing attractively. Our improving Adjusted EBITDA margin profile reflects an improved product mix, and continued focus on operating efficiencies. We ended the year with an $8.1 billion revenue backlog that reflects an increasing concentration of long-term contracts for video applications contributed by the PanAmSat Acquisition, and the integration continues to progress on schedule. We are now operating four of the prior PanAmSat satellites from our operations center in Washington, D.C., and expect to transition another three within the next three months.”
“Intelsat is ideally suited to serve a marketplace that is experiencing increased demand in almost every region,” McGlade continued. “In 2007, we intend to generate incremental, sustainable growth in our media, network, and government services businesses, which enjoy leading market positions worldwide and benefit from the geographic and service diversity available on the Intelsat global system. Our leading video neighborhoods are poised to serve increasing demand for high definition, direct-to-home and global programming. We are increasing our focus on new services to capitalize on the success of our GlobalConnex Managed Services. Our planned service offerings will provide solutions for wireless applications, maritime requirements and IP-based services demanded by the ‘new telecom’ community that are driving growth in our industry. Lastly, we are accessing other avenues for growth, including the marketing of our technical and industry expertise to regional operators and for hosting proprietary payloads on upcoming satellite launches. We believe that Intelsat’s ‘one company’ approach to operations positions us to lead the industry with regard to creating value.”