The company also reported EBITDA, as adjusted,
or earnings before interest, other income (expense), taxes and depreciation
and amortization, of $172.5 million for the period, says a company
release. For the first nine months of 2003, Intelsat reported revenue
of $720.6 million and net income of $155.1 million. EBITDA for the
nine-month period was $528.7 million.
Third Quarter 2003 Financial Highlights
* Telecommunications revenue of $237.2 million decreased $9.5 million,
or 4 percent, from $246.6 million for the three months ended 30 September
2002. For the three months ended 30 September 2003, lease service
revenue declined 7 per cent to $148.2 million and channel and carrier
service revenue declined 3 per cent to $82.1 million, which includes
an offsetting increase in GXS revenue of $7.6 million as compared
to the three months ended 30 September 2002.
* Total operating expenses of $165.8 million increased 23 per cent
from $134.9 million for the three months ended September 30, 2002.
* The $5.6 million increase in other income during the period includes
$4.9 million of income recorded to reflect a reduction in an obligation
payable by Intelsat under a share purchase agreement with Teleglobe
Inc.
* Net income was $48.4 million, compared with $82.4 million for the
third quarter in the prior year.
* EBITDA, as adjusted, was $172.5 million, or 73 per cent of revenue,
down from $200.9 million, or 81 per cent of revenue, for the same
period in 2002.
Other Financial Highlights
" Free cash flow from operations was $284.3 million for the nine
months ended 30 September 2003, an increase of $252.7 million over
the first nine months of 2002.
" Intelsat's backlog at 30 September 2003, representing expected
future cash payments to be received from customers under contract,
was $3.7 billion, as compared to $3.8 billion in backlog at 30 June
30, 2003.
Intelsat executive vice president and chief financial officer Joe
Corbett offered: "Although market conditions and the competitive
environment pose challenges in terms of our revenue, we remain focused
on delivering strong operating margins and free cash flow from operations.
We continue to project that our revenue decline in 2003 will be of
smaller proportions than that experienced in the prior year."
Intelsat chief executive officer Conny Kullman said, "Our
revenue for the quarter reflects the relatively flat conditions
of the telecommunications services market; however, we continue
to produce solid financial results. With the capital expense associated
with our fleet renewal program nearly complete, our year-to-date
free cash flow from operations of $284 million is eight times that
of the same period in 2002." "The bankruptcy court auction
process for Loral's North American satellite assets is currently
set to conclude this week. We now await the judge's approval of
the sale of the assets. If successful, we will move to complete
the regulatory process quickly and close the transaction as soon
as possible, providing a smooth and efficient transition for the
customers on these satellites," he added.
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