CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

September 30,

December 31, 

2012

2011

Change

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$         220,860

$        188,738

$   32,122

Short-term investments

8,500

9,220

(720)

Accounts receivable - trade and unbilled receivables, net

44,973

39,917

5,056

Income tax receivable

2,748

19,645

(16,897)

Restricted cash

3,952

4,207

(255)

Current deferred tax assets

2,148

2,148

-

Prepaid expenses and other current assets

11,360

14,805

(3,445)

Total current assets

294,541

278,680

15,861

Property, plant and equipment, net

56,857

48,065

8,792

Satellites and related ground systems, net

1,070,795

913,454

157,341

Goodwill

67,945

68,130

(185)

Intangible assets, net

8,130

10,526

(2,396)

Non-current restricted cash

3,915

6,875

(2,960)

Other non-current assets

11,051

8,855

2,196

Total assets

$      1,513,234

$     1,334,585

$ 178,649

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued expenses

$           63,240

$          58,510

$     4,730

Current portion of deferred revenue

67,322

53,433

13,889

Total current liabilities

130,562

111,943

18,619

Long-term debt

513,379

511,019

2,360

Long-term deferred revenue, net of current portion

220,869

131,968

88,901

Deferred tax liabilities

89,748

64,694

25,054

Other non-current liabilities

7,879

7,674

205

Total liabilities

962,437

827,298

135,139

Commitments and contingencies 

-

-

-

Stockholders' equity:

Series A convertible preferred stock

1

1

-

Series B junior participating preferred stock

-

-

-

Common stock

226

222

4

Additional paid-in capital

386,259

379,154

7,105

Retained earnings

164,311

127,910

36,401

Total stockholders' equity

550,797

507,287

43,510

Total liabilities and stockholders' equity

$      1,513,234

$     1,334,585

$ 178,649

CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION

(in thousands)

Nine Months Ended September 30,

2012

2011

Change

(unaudited)

Net cash provided by operating activities

$ 238,110

$ 133,702

$ 104,408

Net cash used in investing activities

(204,352)

(205,765)

1,413

Net cash used in financing activities

(1,636)

(1,842)

206

Net increase (decrease) in cash and cash equivalents

32,122

(73,905)

106,027

Cash and cash equivalents, beginning of period

188,738

283,233

(94,495)

Cash and cash equivalents, end of period

$ 220,860

$ 209,328

$   11,532

ADJUSTED EBITDA

(in thousands)

Three Months Ended September 30,

Nine Months Ended September 30,

2012

2011

2012

2011

Net income

$   9,556

$ 14,088

$   39,403

$   39,744

Adjustments:

Interest (income) expense, net

(22)

1,122

(1,382)

8,249

Provision for income taxes

5,666

8,549

25,004

23,552

Depreciation and amortization

17,860

17,986

53,355

52,204

Transaction costs

8,339

-

10,715

-

Non-cash stock-based compensation expense

2,043

1,928

7,219

7,665

Adjusted EBITDA

$ 43,442

$ 43,673

$ 134,314

$ 131,414

Adjusted EBITDA is a non-GAAP financial measure that represents net income before depreciation and amortization expenses, net interest income or expense, provision for income taxes, non-cash stock-based compensation expense and other items including transaction related costs.  We believe that Adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing operations.  However, Adjusted EBITDA is not a recognized term under financial performance under GAAP, and our calculation of Adjusted EBITDA may not be comparable to the calculation of similarly titled measures of other companies.