EchoStar(SATS) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenue for Q2 2024 was $3,952,751, a decrease of 9.2$4,356,462 in Q2 2023[19] - Service revenue for Q2 2024 was $3,742,086, down from$4,088,513 in Q2 2023, reflecting a decline of 8.5%[19] - Net loss for Q2 2024 was $207,458 compared to a net income of$232,692 in Q2 2023, representing a significant turnaround[19] - Operating income for Q2 2024 was a loss of $65,369, compared to an operating income of$252,229 in Q2 2023[19] - Basic net loss per share attributable to EchoStar for Q2 2024 was $(0.76), compared to earnings of$0.79 in Q2 2023[19] - Total costs and expenses for Q2 2024 were $4,018,120, slightly down from$4,104,233 in Q2 2023[19] - EchoStar reported a net income attributable to EchoStar of $212.662 million for the quarter ended June 30, 2023, compared to$253.534 million for the quarter ended March 31, 2023, reflecting a decrease of approximately 16%[21] - The company experienced a net cash flow from operating activities of $930.984 million for the six months ended June 30, 2024, compared to$1.539 billion for the same period in 2023, indicating a decline of about 39.4%[22] Assets and Liabilities - Total current assets decreased to $2,787,866 as of June 30, 2024, from$4,891,814 as of December 31, 2023, a decline of 43%[17] - Total liabilities decreased to $35,623,242 as of June 30, 2024, down from$36,720,602 as of December 31, 2023, a reduction of 3%[17] - Total assets decreased to $55,255,193 as of June 30, 2024, from$57,108,894 as of December 31, 2023, a decline of 3.2%[17] - Cash and cash equivalents as of June 30, 2024, were $419,246, down from$1,821,376 as of December 31, 2023, a decrease of 77%[17] - EchoStar's total stockholders' equity as of June 30, 2023, was reported at $22.127 billion, a slight increase from$21.870 billion as of March 31, 2023[21] 5G Network Deployment - The company has invested over $30 billion in Wireless spectrum licenses, excluding$9 billion of capitalized interest, to support its 5G Network Deployment[32] - EchoStar achieved 70% U.S. population access to average download speeds of 35 Mbps by March 2024, fulfilling a key FCC commitment[34] - EchoStar's 5G Network covers over 200 million Americans and provides broadband service to over 250 million Americans[34] - The company plans to commercialize its wireless spectrum licenses through its 5G Network Deployment, with commitments to serve larger portions of the U.S. population[123] - Capital expenditures for the 5G Network Deployment are expected to be approximately $10 billion, including amounts incurred from 2021 to the first six months of 2024[128] Subscriber Information - As of June 30, 2024, EchoStar had 8.074 million Pay-TV subscribers, including 6.076 million DISH TV subscribers and 1.998 million SLING TV subscribers[29] - The Retail Wireless segment had 7.281 million subscribers as of June 30, 2024, with ongoing transition to a mobile network operator (MNO) for 5G services[31] - As of June 30, 2024, EchoStar had 955,000 Broadband subscribers, supported by the EchoStar XXIV satellite launched in December 2023[36] Legal Proceedings - The company is involved in various legal proceedings, but management does not believe the outcomes will materially affect its financial condition[138] - DISH Network L.L.C. and DISH Technologies L.L.C. were found to have infringed patent claims, resulting in a jury award of$469 million, which was later vacated by the court[145] - DISH Network is facing multiple class action complaints related to a cybersecurity incident that occurred on February 23, 2023, with claims for contractual breaches and negligence[147] - The company intends to vigorously defend against potential substantial damages, which may include treble damages and injunctions requiring modifications to current consumer offerings[146] Financial Obligations and Debt - The company has $1,982,544 thousand in 5 7/8$1,885,796 thousand as of June 30, 2024[105] - The company issued $2.0 billion in 0$5,848,813 thousand, with a significant portion due thereafter[101] - The company has entered into a contract for the construction of EchoStar XXV, expected to launch in 2026, enhancing its satellite capabilities[91] Contractual Obligations - Contract liabilities decreased to $643,150 thousand as of June 30, 2024, down from$710,456 thousand as of December 31, 2023[212] - The remaining performance obligations for customer contracts were approximately $1.424 billion as of June 30, 2024, a decrease of$316 million from $1.740 billion as of December 31, 2023[214] - Performance obligations expected to be satisfied within one year and greater than one year are 30$164 million and $207 million for the three months ended June 30, 2024 and 2023, respectively, and$328 million and $380 million for the six months ended June 30, 2024 and 2023, respectively[54] - Research and development costs totaled$29 million and $27 million for the three months ended June 30, 2024 and 2023, respectively, and$54 million and $55 million for the six months ended June 30, 2024 and 2023, respectively[57] - The company recognized a total of$(91,498) thousand in "Other, net" for the three months ended June 30, 2024, compared to $34,068 thousand for the same period in 2023[82]