Intelsat Reports Fourth Quarter and Full Year 2014 Results
Washington, D.C., February 18, 2015--Intelsat S.A. (NYSE: I) today reported total revenue of US$ 619.1 million and net income attributable to Intelsat S.A. of US$ 16.2 million, or $0.14 per share on a diluted basis, for the three months ended December 31, 2014. The company reported adjusted net income per diluted common share1 of $0.79 for the three months ended December 31, 2014.
Intelsat S.A. reported EBITDA , or earnings before net interest, losses on early extinguishment of debt, taxes and depreciation and amortization, of US$ 462.0 million, and Adjusted EBITDA of US$ 477.1 million, or 77 percent of revenue, for the three months ended December 31, 2014. For the year ended December 31, 2014, Intelsat reported total revenue of US$ 2,472.4 million and a net income attributable to Intelsat S.A. of US$ 232.5 million, or $1.99 per share on a diluted basis.
The company reported adjusted net income per diluted common share of US$ 3.30 for the year ended December 31, 2014. Intelsat also reported EBITDA of US$ 1,924.0 million, and Adjusted EBITDA of US$ 1,958.7 million, or 79 percent of revenue, for the year ended December 31, 2014.
Intelsat Chairman and CEO, Dave McGlade said, “In 2014, we were able to deliver strong Adjusted EBITDA and cash flow in a challenging environment, meeting our guidance targets on all metrics. We also completed a debt pay down of $475 million and funded investments in our network. However, the continuation of the trends we experienced in 2014, such as pricing pressures in certain regions and applications, reduced U.S. government spending, and rising geopolitical challenges, compounded with services nearing the end of lifecycle, is creating ongoing headwinds for our business in 2015 and into 2016."
"We are taking action to counterbalance these trends, focusing our resources on laying the groundwork that will position us to return to growth as our new media satellites and next generation satellites enter service in mid-2016 and 2017. The path forward for us is clear: design, build and place into service new satellite capacity; introduce services that leverage our ground network and networking capabilities; and develop advanced ground technologies and other innovations that will simplify access to our satellites. Through these initiatives, combined with supporting the growth of our core customers and optimizing the use of our orbital rights and global presence, we will enhance our ability to address larger and higher growth applications. By executing on these priorities, we will be positioned for success once our new inventory becomes available,” McGlade added.
Raymond James and Associates commented on the results: "Although Intelsat’s launch schedule and capacity constraints were well known, the company’s guidance was nonetheless well below the consensus outlook due to a more downbeat assessment of U.S. government spending, the pricing environment (especially in developing markets), and a growing supply glut in certain regions."
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