Intelsat, Ltd. reported revenue of $608.8 million and a net loss of $524.2 million for the three months ended December 31, 2008. The net loss includes non-cash charges of $326.8 million for orbital location impairments and $186.6 million for a loss on undesignated interest rate swaps. The company also reported Intelsat, Ltd. EBITDAii, or earnings before interest, taxes and depreciation and amortization, of a loss of $71.1 million. New Bermuda Adjusted EBITDAii was $459.5 million, or 75 percent of revenue, for the three months ended December 31, 2008.
Intelsat, Ltd. reported revenue of $2,364.9 million and a net loss of $1,198.2 million for the combined year ended December 31, 2008. The net loss includes $315.0 million of restructuring and transaction costs associated with the New Sponsors Acquisition (as defined below) in February 2008 and non-cash charges of $390.4 million for asset impairments and $166.7 million for losses on undesignated interest rate swaps. Intelsat, Ltd. EBITDA was $916.8 million and New Bermuda Adjusted EBITDA was $1,855.1 million, or 78 percent of revenue, for the combined year ended December 31, 2008.
â€œIntelsat ended a strong year with the best revenue quarter in the companyâ€™s history. Revenue grew by six percent in the quarter and eight percent for the full year, and we ended the year with $8.8 billion in backlog. New Bermuda Adjusted EBITDA growth of 11 percent for the year demonstrates that we are combining a successful business strategy with a disciplined operating profile to drive performance and opportunity in traditional and emerging applications,â€ said Intelsat CEO Dave McGlade.
â€œThese new opportunities are evident in our Network Services and Government sectors, where weâ€™re enabling the launch of innovative mobility and maritime applications, and in our media business, where we are complementing our position as the global network for the worldâ€™s leading programmers by providing high-power capacity for growing regional direct-to-home platforms.â€
â€œA little over two years ago, we implemented a program to better manage our fleet investment. Our first task was to consolidate our satellite fleet, taking surplus capacity out of our inventory. We have completed this task while at the same time achieving record revenue growth,â€ McGlade said. â€œOur capacity management program will now focus on building additional value in our fleet, as our satellite replacement programs create inventory that is optimized for the regions and applications that represent sustained opportunity. We believe the company is focused on pursuing the right initiatives to stay strong and successful in a challenging economic environment.â€
- Intelsat General Corporation, an indirect, wholly-owned subsidiary of Intelsat, Ltd., was awarded a multi-million dollar contract to provide bandwidth to an affiliate of European Aeronautic Defence and Space Company (EADS), to support the unmanned aerial vehicle (UAV) surveillance operations of the French Air Force in Afghanistan. As part of the contract, Intelsat repositioned the steerable Ku-band spot beams on its IS-601 satellite in order to provide both a low-data-rate link to control the UAV in flight and a high-data-rate link to collect real-time video and photos from the aircraft for use by troops deployed in the field.
- Intelsat announced the New Dawn joint venture with a South African investor group led by Convergence Partners that will utilize project financing to build and launch a new satellite into the 33Âº east longitude orbital location. The satellite, which is expected to enter service in early 2011, will be operated and marketed as part of the global Intelsat fleet. The project is expected to be funded approximately 15% with equity and 85% with debt, with the debt being in the form of non-recourse project financing provided by African institutions. The equity is to be provided by Intelsat (74.9%) and the Convergence Partners-led group (25.1%), which also includes Altirah Telecoms. Intelsatâ€™s cash contribution to the project is expected to be approximately $25 million.
- Intelsatâ€™s system average fill rate on its approximately 2,125 station-kept transponders remained at 83 percent at December 31, 2008, the same rate as at September 30, 2008. In the fourth quarter, 19 net new transponders were put into service.
- Intelsat announced several new launch contracts and its intent to accelerate the build and launch of three satellites, increasing the current number of satellites in development to ten, including the New Dawn satellite announced in December 2008. Included in the 2009 launch program is the Intelsat 14 satellite that will feature a government-related hosted payload known as the Internet Router in Space, or IRIS. The Intelsat 15 satellite is also expected to launch in 2009.
- In December 2008, Intelsat Subsidiary Holding Company, Ltd. (â€œIntelsat Sub Holdcoâ€) repaid the $175.1 million of outstanding borrowings under the revolver portion of its senior secured credit facilities and Intelsat Corporation repaid the $66.1 million of outstanding borrowings under the revolver portion of its senior secured credit facilities. Intelsatâ€™s cash and cash equivalents at December 31, 2008 were $470.2 million.