GERMANTOWN, Md., March 3 /PRNewswire-FirstCall/ -- Hughes Communications, Inc. ("Hughes"), the global leader in broadband satellite network solutions and services, today announced financial results for the fourth quarter and year ended December 31, 2007. Hughes' consolidated operations are currently classified into four reportable segments: North America VSAT; International VSAT; Telecom Systems; and Corporate and Other. The North America VSAT, International VSAT and Telecom Systems segments represent all the operations of Hughes Network Systems, LLC ("HNS"), Hughes' principal operating subsidiary.
Hughes Network Systems, LLC (HNS)
"HNS delivered strong financial results in 2007," said Pradman Kaul, president and chief executive officer. "Revenues increased by 13% over 2006 to $970 million and our profitability in 2007 was also very strong. Operating Income for the year was $90 million, a growth of 56% over 2006; EBITDA* increased by 28% to $139 million in 2007 over 2006, and Net Income increased by 161% to $50 million. All of the segments showed robust growth. The major revenue growth contributors were the consumer, international and the mobile satellite markets with growth rates of 13%, 11% and 77% respectively in 2007 over 2006. The consumer base grew to 379,900 subscribers at December 31, 2007, a growth of 16% over the subscriber base at December 31, 2006. Our North America and International enterprise groups provided a solid revenue base contributing in aggregate over half of HNS' total revenue in 2007. I am also very pleased to report that we were awarded a record $1.1 billion of new orders in 2007 representing a growth of 30% over 2006."
"These impressive full-year results were a result of sustained quarterly performances, including a strong fourth quarter," continued Kaul. "We grew fourth quarter 2007 Revenues by 15%, Operating Income by 39% and Net Income by 95% over the fourth quarter of 2006. The revenue growth engines in the fourth quarter of 2007 were the consumer, international, and mobile satellite markets with growth rates of 14%, 25% and 52% respectively over the fourth quarter of 2006. We were awarded $333 million of new orders in the fourth quarter of 2007, including significant orders from Camelot, State Bank of India, Best Western, Sherwin Williams, Walmart, Blockbuster, Hess, BP, Harris and Hughes Telematics."
* EBITDA is defined as earnings (losses) before interest, income taxes,
depreciation, amortization, and equity incentive compensation. See
"Reconciliation of Non-GAAP Financial Measures to GAAP Financial
Measures."
Set forth below is a table highlighting certain of HNS' results for the three months and twelve months ended December 31, 2007 and December 31, 2006.
Hughes Network Systems, LLC
Three Months Twelve Months
Ended December 31, Ended December 31,
(Dollars in thousands) 2007 2006 2007 2006
Revenue
North America VSAT $165,136 $154,307 $615,716 $573,867
International VSAT 76,340 61,158 214,833 193,370
Telecom Systems 38,102 27,850 139,526 90,988
Total HNS $279,578 $243,315 $970,075 $858,225
Operating income (loss)
North America VSAT $14,709 $7,551 $44,259 $35,625
International VSAT 9,861 12,058 19,637 3,178
Telecom Systems 10,188 5,342 25,911 18,871
Total HNS $34,758 $24,951 $89,807 $57,674
Net income $21,869 $11,194 $49,801 $19,102
EBITDA* $46,378 $45,214 $138,797 $108,788
Adjusted EBITDA* $46,352 $45,889 $140,008 $126,092
* For the definitions of EBITDA and Adjusted EBITDA, see "Reconciliation
of Non-GAAP Financial Measures to GAAP Financial Measures" below.
Selected Highlights
* HNS accepted the in-orbit handover of the SPACEWAY(TM) 3 commercial
communications satellite from Boeing. HNS will utilize the Boeing-built
satellite to provide HughesNet(R) broadband satellite services
throughout North America. The satellite is currently going through the
system testing phase and we expect to commence service later in the
first quarter of 2008.
* HNS' wholly owned European subsidiary HNS Ltd. signed an amendment to
the contract previously executed in August 2007 with U.K. lottery
operator Camelot PLC for providing managed network services for over
27,000 lottery sites in the U.K. The amendment extends the contract's
term to 10 years and also provides additional functionality. This
brings the total value of the 10 year contract to over $150 million
making it the largest single order awarded to HNS in 2007.
* Hughes entered into a definitive agreement to acquire Helius, Inc., a
portfolio company of Canopy Ventures. The acquisition will combine the
skills of Helius, a recognized leader in providing business IPTV
solutions for applications such as training, corporate communications
and digital signage, with the extensive broadband networking experience
and customer base of Hughes. Hughes plans to deploy Helius' innovative
IP video technologies to enhance its existing HughesNet service
offerings.
* HNS signed an agreement with Dow Electronics to be a distributor of
HughesNet satellite broadband Internet service in the Southeastern
United States, home to many consumers who are not served by high-speed
landline Internet providers. Under the terms of the agreement, Dow
Electronics will market primarily to retailers in Florida, Alabama,
Georgia, Mississippi, Louisiana, South Carolina, North Carolina,
Arkansas, Tennessee, Puerto Rico and the U.S. Virgin Islands who will
sell and install the HughesNet satellite broadband access service.
* HNS signed an agreement with CVS Systems, Inc. to be a distributor of
HughesNet satellite broadband Internet service in the Midwest and
Great Lakes region of the country, home to many consumers who are not
served by high-speed landline Internet providers. Under the terms of the
agreement, CVS will market primarily to retailers in Illinois, Indiana,
Kansas, Kentucky, Michigan, Missouri and Ohio who will sell and install
the HughesNet satellite broadband access service.
* HNS' 9201 mobile satellite IP terminal, which operates over the Inmarsat
BGAN (Broadband Global Area Network) system, was part of the CNN
satellite newsgathering solution honored by the National Academy of
Television Arts and Sciences with the Technology and Engineering Emmy
award which was announced recently at the International Consumer
Electronics Show in Las Vegas.
* Hughes' Brazilian service subsidiary was selected by Rede Smart, a
Martins Group company, to provide HughesNet broadband satellite
managed network services to Rede Smart's 930 grocery stores throughout
Brazil.
* HNS signed EMBARQ(TM) to be a reseller of HughesNet broadband
satellite Internet access. EMBARQ has a comprehensive range of services
designed to help businesses of all sizes be more productive and
communicate with their customers. EMBARQ's business customers in rural
areas of the United States will now be provided with high-speed Internet
access comparable to the services that are available in urban markets.
* Hughes India signed a contract with Comat Technologies to supply 10,000
broadband satellite terminals, together with its nationwide HughesNet
satellite services and applications to be delivered at rural business
centers across multiple states in India. Comat is the premier e-
governance organization in India, having more than a decade of
experience working with government, public, private and multi-lateral
organizations.
Hughes Communications, Inc. (Hughes)
Certain financial information for Hughes is shown below. The financial information for the three and twelve months ended December 31, 2007 is a combination of HNS and Other Businesses.
Hughes Communications, Inc.
Three Months Twelve Months
Ended December 31, Ended December 31,
(Dollars in thousands) 2007 2006 2007 2006
Revenue
North America VSAT $165,136 $154,307 $615,716 $573,867
International VSAT 76,340 61,158 214,833 193,370
Telecom Systems 38,102 27,850 139,526 90,988
Corporate and Other 127 89 573 474
Total HCI $279,705 $243,404 $970,648 $858,699
Operating income (loss)
North America VSAT $14,709 $7,551 $44,259 $35,625
International VSAT 9,861 12,058 19,637 3,178
Telecom Systems 10,188 5,342 25,911 18,871
Corporate and Other (2,378) (1,756) (6,171) (5,032)
Total HCI $32,380 $23,195 $83,636 $52,642
Net income (loss)(a) $19,931 $9,457 $43,540 $(39,113)
EBITDA* $44,066 $44,435 $133,245 $105,327
* For the definition of EBITDA, see "Reconciliation of Non-GAAP Financial
Measures to GAAP Financial Measures" below.
(a) The net loss for the twelve months ended December 31, 2006 includes a
tax charge of approximately $51.3 million recorded in the first
quarter of 2006, primarily related to the SkyTerra/Hughes spin-off. As
Hughes is the accounting successor to SkyTerra, the taxes associated
with the separation are included in Hughes' results for the quarter
ended March 31, 2006 and a portion of the deferred tax assets were
utilized to satisfy the tax expense resulting from the taxable gain.
Accordingly, Hughes does not expect this expense to have an impact on
its cash from operations.
To summarize, Kaul said, "We are very pleased with the strong and balanced financial results that we have delivered in 2007. We are currently at an advanced stage in the in-orbit system testing of SPACEWAY 3 and we are looking forward to commencing service on SPACEWAY 3 by the end of this quarter. We expect that SPACEWAY 3 will provide us significant cost benefits and also open up new revenue opportunities going forward in the North American enterprise and consumer markets. We have a robust orders backlog coming into 2008 as a result of an outstanding new orders performance in 2007. All of these have positioned HNS very well for 2008 and beyond."
Commenting on Hughes' financial performance, Grant Barber, executive vice president and chief financial officer said, "Our revenue and profitability showed strong growth in the fourth quarter of 2007. For the twelve months ended December 2007, Hughes delivered earnings per share of $2.26 compared to a loss of $2.43 in the same period in 2006, both on a fully diluted basis. We also generated cash from operations of $93 million in 2007 and closed the year with a healthy consolidated cash and marketable securities position of $151 million."
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
The following table reconciles the differences between HNS' net income as determined under United States of America generally accepted accounting principles (GAAP), EBITDA and Adjusted EBITDA.
Hughes Network Systems, LLC
Three Months Twelve Months
Ended December 31, Ended December 31,
(Dollars in thousands) 2007 2006 2007 2006
Net income $21,869 $11,194 $49,801 $19,102
Add:
Interest expense 9,705 15,143 43,772 46,041
Income tax expense 4,095 1,221 5,316 3,276
Depreciation and amortization 11,039 19,723 45,860 48,459
Equity incentive plan
compensation 918 514 3,020 785
Less:
Interest income (1,248) (2,581) (8,972) (8,875)
EBITDA $46,378 $45,214 $138,797 $108,788
Add:
Inventory provision related to
shift to Broadband focus - - - 11,879
HughesNet branding costs - - - 1,454
Restructuring charge (26) - 1,211 -
Benefits/insurance programs
sponsored by DIRECTV - 425 - 2,385
Legal settlement and related
fees - pre-April 2005
Acquisition - - - 586
Management fee to Hughes
Communications, Inc. - 250 - 1,000
Adjusted EBITDA $46,352 $45,889 $140,008 $126,092
The following table reconciles the differences between Hughes' net income as determined under GAAP and EBITDA:
Hughes Communications, Inc.
Three Months Twelve Months
Ended December 31, Ended December 31,
(Dollars in thousands) 2007 2006 2007 2006
Net income (loss) $19,931 $9,457 $43,540 $(39,113)
Add:
Interest expense 9,705 15,143 43,775 47,791
Income tax expense 3,561 1,221 5,337 54,110
Depreciation and amortization 11,039 19,723 45,860 48,459
Equity incentive plan
compensation 1,193 1,633 4,260 3,720
Less:
Interest income (1,363) (2,742) (9,527) (9,640)
EBITDA $44,066 $44,435 $133,245 $105,327
The condensed unaudited balance sheets, statements of operations and statements of cash flows of Hughes and HNS for the twelve months ended December 31, 2007 are attached to this press release.
Note:
EBITDA is defined as earnings (loss) before interest, income taxes, depreciation, amortization and equity incentive plan compensation. Adjusted EBITDA is used in calculating covenant compliance under HNS' credit agreement and the indenture governing HNS' 9 1/2% Senior Notes due 2014. EBITDA and Adjusted EBITDA are not recognized terms under GAAP. EBITDA and Adjusted EBITDA do not represent net income or cash flows from operations, as these terms are defined under GAAP, and should not be considered as alternatives to net income as an indicator of operating performance or to cash flows as a measure of liquidity. Additionally, EBITDA and Adjusted EBITDA are not intended to be measures of cash flow available to management for discretionary use, as such measures do not consider certain cash requirements such as capital expenditures (including expenditures on VSAT operating lease hardware and capitalized software development costs), tax payments and debt service requirements (including VSAT operating lease hardware). EBITDA and Adjusted EBITDA as presented herein are not necessarily comparable to similarly titled measures reported by other companies. EBITDA and Adjusted EBITDA are presented herein because HNS and Hughes use such information in their review of the performance of management and in the performance of their business. In addition, information concerning Adjusted EBITDA is being presented because it reflects important components included in the financial covenants under the senior note indenture and HNS' credit agreement.
About Hughes Communications, Inc.
Hughes Communications, Inc. is the 100 percent owner of Hughes Network Systems, LLC. Hughes is the global leader in providing broadband satellite networks and services for enterprises, governments, small businesses and consumers. HughesNet encompasses all broadband solutions and managed services from Hughes, bridging the best of satellite and terrestrial technologies. Its broadband satellite products are based on global standards approved by the TIA, ETSI and ITU standards organizations, including IPoS/DVB- S2, RSM-A and GMR-1. To date, Hughes has shipped more than 1.5 million systems to customers in over 100 countries.
Headquartered outside Washington, D.C., in Germantown, Maryland, USA, Hughes maintains sales and support offices worldwide. For more information, please visit http://www.hughes.com/.
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995
This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, discussions regarding industry outlook and Hughes' expectations regarding the performance of its business, its future liquidity and capital resource needs, its strategic plans and objectives and the ability to launch and deploy SPACEWAY 3. These forward- looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words "believe," "anticipate," "estimate," "expect," "intend," "project," "plans" and similar expressions and the use of future dates are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. These statements are subject to certain risks, uncertainties and assumptions, including, but not limited to, the following: risks related to Hughes' substantial leverage and restrictions contained in its debt agreements, technological developments, its reliance on providers of satellite transponder capacity, changes in demand for Hughes' services and products, competition, industry trends, regulatory changes, foreign currency exchange rate fluctuations and other risks identified and discussed under the caption "Risk Factors" in Hughes' Registration Statement on Form S-3 filed with the Securities and Exchange Commission on August 8, 2007 and in the other documents Hughes files with the Securities and Exchange Commission from time to time.
HUGHES COMMUNICATIONS, INC.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
December 31,
2007 2006
ASSETS
Current assets:
Cash and cash equivalents $134,092 $106,933
Marketable securities 17,307 107,320
Receivables, net 209,943 180,955
Inventories 65,754 61,280
Prepaid expenses and other 43,720 39,947
Total current assets 470,816 496,435
Property, net 479,976 312,497
Capitalized software costs, net 47,582 41,159
Intangible assets, net 22,513 30,663
Other assets 108,950 50,890
Total assets $1,129,837 $931,644
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $72,440 $59,391
Short-term borrowings and current
portion of long-term debt 14,795 27,210
Accrued liabilities 177,932 124,586
Due to affiliates 12,621 13,119
Total current liabilities 277,788 224,306
Long-term debt 577,761 469,190
Other long-term liabilities 6,526 18,079
Total liabilities 862,075 711,575
Commitments and contingencies
Minority interests 5,401 4,680
Total stockholders' equity 262,361 215,389
Total liabilities and stockholders'
equity $1,129,837 $931,644
HUGHES COMMUNICATIONS, INC.
Condensed Consolidated Statements of Operations
(Dollars in thousands, except share and per share amounts)
(Unaudited)
Year Ended December 31,
2007 2006
Revenues:
Services $537,688 $440,450
Hardware sales 432,960 418,249
Total revenues 970,648 858,699
Operating costs and expenses:
Cost of services 356,306 309,698
Cost of hardware products sold 355,475 327,708
Selling, general and administrative 152,051 139,449
Research and development 17,036 23,058
Amortization of intangibles 6,144 6,144
Total operating costs and expenses 887,012 806,057
Operating income (loss) 83,636 52,642
Other income (expense):
Interest expense (43,775) (47,791)
Interest income 9,527 9,640
Other income, net 242 2,323
Income (loss) before income tax
(expense) benefit; minority
interests in net (earnings) losses
of subsidiaries; equity in earnings
(losses) of unconsolidated
affiliates; and discontinued
operations 49,630 16,814
Income tax (expense) benefit (5,337) (54,110)
Equity in earnings (losses) of
unconsolidated affiliates (640) (2,132)
Minority interests in net (earnings)
losses of subsidiaries (113) 118
Income (loss) from continuing
operations 43,540 (39,310)
Discontinued operations:
Loss from discontinued operations - (43)
Gain on sale of discontinued
operations - 240
Net income (loss) 43,540 (39,113)
Cumulative dividends and accretion of
convertible preferred stock
to liquidation value - (1,454)
Net income (loss) attributable to
common stockholders $43,540 $(40,567)
Basic net earnings (loss) per common
share:
Continuing operations $2.31 $(2.44)
Discontinued operations - 0.01
Basic net earnings (loss) per common
share $2.31 $(2.43)
Diluted net earnings (loss) per
common share:
Continuing operations $2.26 $(2.44)
Discontinued operations - 0.01
Diluted net earnings (loss) per
common share $2.26 $(2.43)
Basic weighted average common shares
outstanding 18,860,517 16,668,591
Diluted weighted average common
shares outstanding 19,227,919 16,668,591
HUGHES COMMUNICATIONS, INC.
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
Year Ended December 31,
2007 2006
Cash flows from operating activities:
Net income (loss) $43,540 $(39,113)
Adjustments to reconcile net income
(loss) to cash flows from operating
activities:
Loss on discontinued operations - 43
Depreciation and amortization 45,860 48,459
Amortization of debt issuance costs 906 1,056
Equity plan compensation expense 4,260 3,720
Equity in earnings of Hughes Network
Systems, LLC - -
Minority interests 113 (118)
Equity in losses from unconsolidated
affiliates 640 2,132
Gain on receipt of investment by
subsidiary - (1,788)
Other 340 (222)
Change in other operating assets and
liabilities, net of acquisitions:
Receivables, net (23,270) 24,599
Inventories (3,708) 11,894
Prepaid expenses and other assets (10,442) 56,909
Accounts payable 14,100 (11,675)
Accrued liabilities and other 21,176 (5,413)
Net cash provided by continuing
operations 93,515 90,183
Net cash used in discontinued
operations - (10)
Net cash provided by operating
activities 93,515 90,173
Cash flows from investing activities:
Acquisition of Hughes Network
Systems, LLC, net of cash received - 12,753
Change in restricted cash 1,168 (2,883)
Purchase of marketable securities (32,864) (90,112)
Proceeds from sale of marketable
securities 122,690 -
Cash paid for investments in
affiliates - -
Net sales of short-term investments - -
Expenditures for property (233,952) (77,191)
Expenditures for capitalized software (14,228) (16,416)
Proceeds from sale of property and
intangibles 516 521
Sales of investment in affiliates - -
Net cash used in continuing
operations (156,670) (173,328)
Net cash used in discontinued
operations - -
Net cash used in investing activities (156,670) (173,328)
HUGHES COMMUNICATIONS, INC.
Condensed Consolidated Statements of Cash Flows (Continued)
(Dollars in thousands)
(Unaudited)
Year Ended December 31,
2007 2006
Cash flows from financing activities:
Net increase (decrease) in notes and
loans payable 376 (1,609)
Debt borrowings from Apollo - 100,000
Debt repayments to Apollo - (100,000)
Proceeds from rights offering - 100,000
Distribution to SkyTerra - (9,314)
Payment of dividends on preferred
stock - (1,394)
Proceeds from exercise of stock
options and warrants 113 2,206
Repurchase of common stock of
consolidated subsidiary - -
Long-term debt borrowings 119,731 455,330
Repayment of long-term debt (24,843) (364,872)
Debt issuance costs (2,053) (11,668)
Net cash provided by (used in)
continuing operations 93,324 168,679
Net cash provided by discontinued
operations - -
Net cash provided by (used in)
financing activities 93,324 168,679
Effect of exchange rate changes on
cash and cash equivalents (3,010) (555)
Net (decrease) increase in cash and
cash equivalents 27,159 84,969
Cash and cash equivalents at
beginning of the period 106,933 21,964
Cash and cash equivalents at end of
the period $134,092 $106,933
Supplemental cash flow information:
Cash paid for interest $53,594 $41,464
Cash paid for income taxes $3,567 $6,578
Supplemental disclosure of non-cash
financing activities:
Common stock issued in connection
with purchase of interest in Hughes
Network Systems, LLC $- $-
Supplemental non-cash disclosure due
to acquisition by Hughes
Communications, Inc.:
Increase in assets $51,471
Increase in liabilities 40,118
Increase in net assets $11,353
HUGHES NETWORK SYSTEMS
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
December 31,
2007 2006
ASSETS
Current assets:
Cash and cash equivalents $129,227 $99,098
Marketable securities 11,224 103,466
Receivables, net 209,731 180,694
Inventories 65,754 61,280
Prepaid expenses and other 42,131 39,175
Total current assets 458,067 483,713
Property, net 479,976 312,497
Capitalized software costs, net 47,582 41,159
Intangible assets, net 22,513 30,663
Other assets 103,870 44,358
Total assets $1,112,008 $912,390
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $69,497 $57,781
Short term borrowings and current
portion of long-term debt 14,795 27,210
Accrued liabilities 177,136 123,576
Due to affiliates 13,473 13,592
Total current liabilities 274,901 222,159
Long-term debt 577,761 469,190
Other long-term liabilities 6,526 18,079
Total liabilities 859,188 709,428
Minority interests 5,350 4,659
Commitments and contingencies
Equity:
Class A membership interests 180,655 180,346
Class B membership interests - -
Retained earnings 68,903 19,102
Accumulated other comprehensive loss (2,088) (1,145)
Total equity 247,470 198,303
Total liabilities and equity $1,112,008 $912,390
HUGHES NETWORK SYSTEMS
Condensed Consolidated Statement of Operations
(Dollars in thousands)
(Unaudited)
Year Ended December 31,
2007 2006
Revenues:
Services $537,115 $439,976
Hardware sales 432,960 418,249
Total revenues 970,075 858,225
Operating costs and expenses:
Cost of services 356,232 309,583
Cost of hardware products sold 355,475 327,708
Selling, general and administrative 145,381 134,058
Research and development 17,036 23,058
Amortization of intangibles 6,144 6,144
Total operating costs and expenses 880,268 800,551
Operating income (loss) 89,807 57,674
Other income (expense):
Interest expense (43,772) (46,041)
Interest income 8,972 8,875
Other income, net 193 2,033
Income (loss) before income tax
expense, minority interest in net
(earnings) losses of subsidiaries
and equity in earnings of
unconsolidated affiliates 55,200 22,541
Income tax expense (5,316) (3,276)
Minority interests in net (earnings)
loss of subsidiaries (83) (163)
Equity in earnings of unconsolidated
affiliates - -
Net income (loss) $49,801 $19,102
HUGHES NETWORK SYSTEMS
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
Year Ended December 31,
2007 2006
Cash flows from operating activities:
Net income (loss) $49,801 $19,102
Adjustments to reconcile net income
(loss) to cash flows from
operating activities:
Depreciation and amortization 45,860 48,459
Amortization of debt issuance costs 906 1,056
Gain on receipt of investment by
subsidiary - (1,788)
Equity plan compensation expense 309 296
Minority interests 83 163
Equity in losses from unconsolidated
affiliates - -
Other 384 -
Change in other operating assets and
liabilities, excluding the effect of
the HCI Transaction:
Receivables, net (23,319) 24,839
Inventories, net (3,708) 11,894
Prepaid expenses and other assets (9,648) 3,335
Accounts payable 12,767 (11,286)
Accrued liabilities and other 21,769 (4,337)
Net cash provided by (used in)
operating activities 95,204 91,733
Cash flows from investing activities:
Change in restricted cash 379 (294)
Purchase of marketable securities (22,096) (89,254)
Proceeds from sale of marketable
securities 114,015 -
Expenditures for property (233,952) (77,191)
Expenditures for capitalized software (14,228) (16,416)
Proceeds from sale of property and
intangibles 516 521
Other, net - -
Net cash used in investing activities (155,276) (182,634)
Cash flows from financing activities:
Net increase (decrease) in notes and
loans payable 376 (1,609)
Distributions to contributions from
former owners, net
Long-term debt borrowings 119,731 455,330
Repayment of long-term debt (24,843) (364,872)
Debt issuance costs (2,053) (11,668)
Net cash provided by (used in)
financing activities 93,211 77,181
Effect of exchange rate changes on
cash and cash equivalents (3,010) (449)
Net increase (decrease) in cash and
cash equivalents 30,129 (14,169)
Cash and cash equivalents at
beginning of the period 99,098 113,267
Cash and cash equivalents at end of
the period $129,227 $99,098
Supplemental cash flow information:
Cash paid for interest $53,592 $39,714
Cash paid for income taxes $3,357 $3,615
Supplemental non-cash disclosure due
to acquisition by
Hughes Communications, Inc.:
Increase in assets $51,471
Increase in liabilities 40,118
Increase in net assets $11,353
Hughes Communications, Inc.
