Intelsat Reports First Quarter 2014 Results

1 May 2014

Intelsat S.A. reported total revenue of $628.9 million and net income attributable to Intelsat S.A. of $81.9 million, or $0.70 per common share on a diluted basis, for the three months ended March 31, 2014.  The company reported adjusted net income per diluted common share1 of $0.92 for the three months ended March 31, 2014.

Intelsat S.A. reported EBITDA¹, or earnings before net interest, taxes and depreciation and amortization, of $498.7 million, or 79 percent of revenue, and Adjusted EBITDA¹ of $505.8 million, or 80 percent of revenue, for the three months ended March 31, 2014.

Intelsat CEO, Dave McGlade, said, "Intelsat performed to plan in the first quarter, generating strong Adjusted EBITDA margins and free cash flow from operations.  Mobility applications, such as aeronautical broadband and maritime, are generating growth, but total revenue continues to be challenged by reduced U.S. government spending and pricing pressure on network services applications in Africa."

"In other parts of our business, we continued to support regional media customers with distribution services and digital terrestrial television platforms.  We expanded distribution agreements with leaders in the maritime sector, building on our leadership position in broadband mobility solutions. We ended the first quarter of 2014 with a contracted backlog of $9.9 billion, providing visibility into revenue and cash flow.

McGlade continued, "Our satellite programs remain on track, with our single 2014 launch, Intelsat 30, expected to launch in the third quarter.  With the benefits of strong Adjusted EBITDA margins, lower than average lifecycle capital expenditures and reduced interest costs producing strong cash flows, we remain committed to our two-phase investment thesis and the target to de-lever our balance sheet in 2014 by approximately $400 million, as forecasted in our February guidance."