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Selected financial results for the Company are as follows (dollars in thousands, except earnings per share):
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended ------------------- 12/31/09 12/31/08 Change -------- -------- ------ (unaudited) Revenues $73,249 $40,688 $32,561 Operating expenses: Direct costs of revenue (exclusive of depreciation and amortization) 24,458 20,451 4,007 Depreciation and amortization 16,423 2,667 13,756 Selling, general and administrative 13,014 11,765 1,249 Inventory impairment and satellite impairment settlement - 2,155 (2,155) --- ----- ------ Total operating expenses 53,895 37,038 16,857 ------ ------ ------ Income from operations 19,354 3,650 15,704 Interest expense, net 8,181 2,911 5,270 Other non-operating expense - 1,000 (1,000) Loss from early extinguishment of debt 27,127 - 27,127 ------ --- ------ Loss before income taxes (15,954) (261) (15,693) (Benefit) provision for income taxes (27,673) 3,378 (31,051) ------- ----- ------- Net income (loss) $11,719 $(3,639) $15,358 ======= ======= ======= Earnings (loss) per share basic $0.60 $(0.20) $0.80 ===== ====== ===== Earnings (loss) per share diluted $0.55 $(0.20) $0.75 ===== ====== ===== Weighted average shares diluted 21,139 18,228 2,911 ====== ====== ===== Year Ended ---------- 12/31/09 12/31/08 Change -------- -------- ------ (unaudited) Revenues $271,102 $146,659 $124,443 Operating expenses: Direct costs of revenue (exclusive of depreciation and amortization) 94,693 72,216 22,477 Depreciation and amortization 57,166 11,357 45,809 Selling, general and administrative 46,608 36,990 9,618 Inventory impairment and satellite impairment settlement - 3,296 (3,296) --- ----- ------ Total operating expenses 198,467 123,859 74,608 ------- ------- ------ Income from operations 72,635 22,800 49,835 Interest expense, net 31,020 11,452 19,568 Other non-operating expense - 1,000 (1,000) Loss from early extinguishment of debt 27,127 - 27,127 ------ --- ------ Income before income taxes 14,488 10,348 4,140 Benefit for income taxes (17,573) (16,267) (1,306) ------- ------- ------ Net income $32,061 $26,615 $5,446 ======= ======= ====== Earnings per share basic $1.71 $1.48 $0.23 ===== ===== ===== Earnings per share diluted $1.55 $1.36 $0.19 ===== ===== ===== Weighted average shares diluted 20,685 19,558 1,127 ====== ====== ===== ADJUSTED EBITDA (in thousands) Three Months Ended Year Ended ------------------ ---------- 12/31/09 12/31/08 12/31/09 12/31/08 -------- -------- -------- -------- Net income (loss) $11,719 $(3,639) $32,061 $26,615 Adjustments: Interest expense, net 8,181 2,911 31,020 11,452 (Benefit) provision for income taxes (27,673) 3,378 (17,573) (16,267) Depreciation and amortization 16,423 2,667 57,166 11,357 Non-cash stock-based compensation expense 876 795 2,371 3,396 Loss from early extinguishment of debt 27,127 - 27,127 - Non-cash loss on inventory and investment impairments - 3,154 - 3,154 --- ----- --- ----- Adjusted EBITDA $36,653 $9,266 $132,172 $39,707 ======= ====== ======== ======= Adjusted EBITDA is a non-GAAP financial measure that represents net income (loss) before net interest income or expense, income tax expense (benefit), depreciation and amortization expenses, loss from early extinguishment of debt, non-cash loss on inventory and investment impairments and non-cash stock-based compensation expense. 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. CONSOLIDATED BALANCE SHEETS (in thousands) December 31, December 31, 2009 2008 Change ---- ---- ------ (unaudited) ASSETS Current assets: Cash and cash equivalents $208,872 $106,733 $102,139 Short-term investments - 3,813 (3,813) Accounts receivable - trade and unbilled receivables (net of allowances: 2009 - $923; 2008 - $738) 32,578 26,851 5,727 Income tax receivable 40,237 20,142 20,095 Restricted cash 52,268 - 52,268 Other current assets 16,836 34,325 (17,489) ------ ------ ------- Total current assets 350,791 191,864 158,927 Property, plant and equipment, net 25,381 22,748 2,633 Satellites and related ground systems, net 505,035 488,145 16,890 Goodwill 34,264 34,264 - Intangible assets, net 11,685 14,335 (2,650) Non-current restricted cash 13,653 - 13,653 Other non-current assets 6,398 12,978 (6,580) Deferred tax assets - 30,271 (30,271) --- ------ ------- Total assets $947,207 $794,605 $152,602 ======== ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $33,997 $69,763 $(35,766) Current portion of deferred revenue 52,221 40,629 11,592 Current deferred tax liabilities 4,744 5,594 (850) Current portion of long-term debt 497 - 497 --- --- --- Total current liabilities 91,459 115,986 (24,527) Long-term debt 380,594 247,502 133,092 Long-term deferred revenue, net of current portion 192,313 199,317 (7,004) Non-current income tax reserve and deferred tax liabilities 2,326 1,396 930 Other non-current liabilities 560 - 560 --- --- --- Total liabilities 667,252 564,201 103,051 ------- ------- ------- Commitments and contingencies Stockholders' equity: Common stock 199 184 15 Additional paid-in capital 227,988 210,513 17,475 Retained earnings 51,768 19,707 32,061 ------ ------ ------ Total stockholders' equity 279,955 230,404 49,551 ------- ------- ------ Total liabilities and stockholders' equity $947,207 $794,605 $152,602 ======== ======== ======== STATEMENT OF CASH FLOWS INFORMATION (in thousands) Year Ended ---------- 12/31/09 12/31/08 Change -------- -------- ------ (unaudited) Net cash provided by (used in) operating activities $100,207 $(1,872) $102,079 Net cash used in investing activities (123,034) (124,187) 1,153 Net cash provided by financing activities 124,966 6,031 118,935 ------- ----- ------- Net increase (decrease) in cash and cash equivalents 102,139 (120,028) 222,167 Cash and cash equivalents, beginning of year 106,733 226,761 (120,028) ------- ------- -------- Cash and cash equivalents, end of year $208,872 $106,733 $102,139 ======== ======== ========