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Hughes Communications Announces First Quarter 2011 Results

 

 

 

May 5, 2011

 

Hughes Communications, Inc. announced financial results for the first quarter ended March 31, 2011. Hughes' consolidated operations are classified into five reportable segments: North America Broadband, International Broadband, Telecom Systems, HTS Satellite, and Corporate and Other. The North America Broadband, International Broadband, Telecom Systems, and HTS Satellite segments represent all the operations of Hughes Network Systems, LLC ("HNS"), Hughes' principal operating subsidiary.

 

Set forth below are tables highlighting certain of Hughes' and HNS' results for the three months ended March 31, 2011 and 2010.

 

Hughes Communications, Inc.




Three Months




Ended March 31,


(Dollars in thousands)


2011


2010








Revenue






    North America Broadband


$             193,706


$       173,995


    International Broadband


51,672


43,456


    Telecom Systems


16,692


24,692


    HTS Satellite


602


-


    Corporate and Other


1,420


1,050


    Total


$             264,092


$       243,193








Operating income (loss)






    North America Broadband


$               21,745


$           9,616


    International Broadband


(738)


(1,156)


    Telecom Systems


(316)


3,708


    HTS Satellite


(1,304)


(858)


    Corporate and Other


(4,467)


(746)


    Total


$               14,920


$         10,564








Net income (loss) attributable to
HCI stockholders


$                    838


$          (6,140)








Adjusted EBITDA*


$               57,924


$         42,602








New Orders


$             266,351


$       238,387


Hughes Network Systems, LLC




Three Months




Ended March 31,


(Dollars in thousands)


2011


2010








Revenue






    North America Broadband


$             193,706


$             173,995


    International Broadband


51,672


43,456


    Telecom Systems


16,692


24,692


    HTS Satellite


602


-


    Total


$             262,672


$             242,143














Operating income (loss)






    North America Broadband


$               21,745


$                 9,616


    International Broadband


(738)


(1,156)


    Telecom Systems


(316)


3,708


    HTS Satellite


(1,304)


(858)


    Total


$               19,387


$               11,310














Net income (loss)
attributable to HNS


$                 5,164


$               (5,562)








Adjusted EBITDA*


$               58,223


$               43,008








New Orders


$             265,486


$             237,117

*  For the definition of Adjusted EBITDA, see "Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures" below.

 

To summarize, Pradman Kaul, president and CEO said, "Our consumer business continued to lead the way in the first quarter of 2011 with record gross and net adds and increased ARPU, which resulted in strong services revenue growth. The enterprise segments also showed healthy revenue growth and our order backlog continues to be strong, all of which made this an outstanding quarter. Development work on our Jupiter satellite continues on-track for a launch in the first half of 2012, and we are making good progress on the regulatory front as it relates to the merger with EchoStar. We are very pleased with our accomplishments in the quarter."

 

Commenting on Hughes' financial performance, Grant Barber, executive vice president and CFO said, "The strategy of expanding margins through the satellite ownership model continues to play out very well, as evidenced by continued growth in our operating profits and Adjusted EBITDA in the first quarter of 2011. This, combined with strong working capital management, enabled us to fund substantial capital expenditures on Jupiter and maintain our liquidity at a healthy level."