Exhibit 99.1


EchoStar Announces Financial Results for Three Months Ended March 31, 2020

Englewood, CO, May 7, 2020—EchoStar Corporation (NASDAQ: SATS) today announced its financial results for the three months ended March 31, 2020.

Three Months Ended March 31, 2020 Financial Highlights:

•
Consolidated revenues of $465.7 million.
•
Net loss from continuing operations of $57.7 million, consolidated net loss attributable to EchoStar common stock of $54.3 million, and diluted loss per share of $0.56.
•
Consolidated Adjusted EBITDA of $148.6 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below).

“As businesses and families everywhere contend with the impact of COVID-19, EchoStar has focused on keeping our customers connected,” commented Michael Dugan, CEO and President of EchoStar. “The pandemic has demonstrated that staying connected is a necessity, not a luxury, and our solid performance in the first quarter of 2020, despite the global crisis, reflects this reality. We grew our revenue and Adjusted EBITDA from the same period in 2019. Operationally, we increased our consumer subscriber base by approximately 39,000 in the first quarter, driven by both our domestic and international markets, bringing our broadband subscriber total to approximately 1.516 million. We continuously evaluate the changing economic conditions and associated effect on our customers and vendors and are managing the business appropriately. Although these are extremely challenging times, the pandemic has made even more evident the worldwide demand for connectivity.”

Three Months Ended March 31, 2020 - Additional Information:

•
Consolidated revenue increased 2% or $11.3 million year over year despite negative foreign exchange impact.
•
Adjusted EBITDA increased 6% or $8.8 million year over year.
◦
Hughes segment Adjusted EBITDA was up $0.6 million year over year. The margin driven by the higher revenue was offset by increased sales, marketing, and operating expense associated primarily with our growing Latin American consumer markets.
◦
ESS segment Adjusted EBITDA was higher by $0.3 million year over year.
◦
Corporate and Other segment Adjusted EBITDA increased by $7.9 million. The segment had equity earnings in unconsolidated affiliates during the quarter of $4.5 million compared to equity losses of $4.8 million in the same period a year ago. This increase was partially offset by the loss of the revenue and EBITDA associated with the transfer of certain real estate assets to DISH Network Corporation as part of the BSS transaction that were not treated as discontinued operations.
•
Net loss from continuing operations was $57.7 million, an increase of loss by $53.5 million from last year. The increased loss was primarily due to higher unrealized and realized losses on investments of $53.6 million which included the write-off of a strategic investment, higher depreciation and amortization of $13.4 million, and higher unrealized losses on foreign currency of $9.7 million. This was partially offset by lower net income tax expense of $10.4 million, higher equity in earnings of $8.9 million, and lower net interest expense of $8.1 million.
•
Hughes broadband subscribers are approximately 1,516,000 as of March 31, 2020 including approximately 267,000 subscribers in Latin America. To help support people working and studying from home, we signed the FCC’s Keeping America Connected Pledge, and our subscriber numbers exclude those whose service would have ordinarily been terminated in the absence of the Pledge.


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•
For the three months ended March 31,2020, approximately 66% of Hughes segment revenue was attributable to our consumer customers with approximately 34% attributable to our enterprise customers.

•
Cash, cash equivalents and current marketable investment securities were $2.4 billion as of March 31, 2020.

•
We purchased 196,999 shares of our Class A common stock in the open market.

Set forth below is a table highlighting certain of EchoStar’s segment results three months ended March 31, 2020 and 2019 (amounts in thousands) from continuing operations (all US GAAP amounts reference results from continuing operations):

 
 
For the three months
ended March 31,
 
 
2020
 
2019
 
 
 
 
 
Revenue
 
 
 
 
Hughes
 
$
458,482

 
$
445,337

EchoStar Satellite Services
 
4,652

 
4,033

Corporate and Other
 
2,532

 
5,012

Total revenue
 
$
465,666

 
$
454,382

 
 
 
 
 
Adjusted EBITDA
 
 
 
 
Hughes
 
$
162,219

 
$
161,642

EchoStar Satellite Services
 
2,030

 
1,729

Corporate & Other:
 
 
 
 
Corporate overhead, operating and other
 
(20,124
)
 
(18,719
)
Equity in earnings (losses) of unconsolidated affiliates, net
 
4,512

 
(4,827
)
Total Corporate & Other
 
(15,612
)
 
(23,546
)
Total Adjusted EBITDA
 
$
148,637

 
$
139,825

 
 
 
 
 
Net income (loss) from continuing operations
 
$
(57,737
)
 
$
(4,239
)
Expenditures for property and equipment
 
$
104,604

 
$
111,854



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Reconciliation of GAAP to Non-GAAP Measurement (amounts in thousands):
 
 
For the three months
ended March 31,
 
 
2020
 
2019
 
 
 
 
 
Net income (loss)
 
$
(57,737
)
 
$
15,008

Interest income, net
 
(15,583
)
 
(24,429
)
Interest expense, net of amounts capitalized
 
36,233

 
53,199

Income tax provision (benefit), net
 
(7,492
)
 
2,898

Depreciation and amortization
 
132,368

 
118,978

Net loss (income) from discontinued operations
 
—

 
(19,247
)
Net loss (income) attributable to non-controlling interests
 
3,442

 
(806
)
EBITDA
 
91,231

 
145,601

(Gains) losses on investments, net
 
46,672

 
(6,936
)
License fee dispute - India, net of non-controlling interests
 
(110
)
 
—

Foreign currency transaction (gains) losses, net
 
10,844

 
1,160

Adjusted EBITDA
 
$
148,637

 
$
139,825


Note on Use of Non-GAAP Financial Measures

EBITDA is defined as “Net income (loss)” excluding “Interest income, net,” Interest expense, net of amounts capitalized,” “Income tax benefit (provision), net,” “Depreciation and amortization,” “Net income (loss) from discontinued operations,” and “Net income (loss) attributable to noncontrolling interests.”

Adjusted EBITDA is defined as EBITDA excluding “Gains and losses on investments, net,” “Foreign currency transaction gains (losses), net,” and other non-recurring or non-operational items. EBITDA and Adjusted EBITDA are not measures determined in accordance with US GAAP. EBITDA and Adjusted EBITDA are reconciled to “Net income (loss)” in the table above and should not be considered in isolation or as a substitute for operating income, net income or any other measure determined in accordance with US GAAP. Our management uses EBITDA and Adjusted EBITDA as measures of our operating efficiency and overall financial performance for benchmarking against our peers and competitors. Management believes that these non-GAAP measures provide meaningful supplemental information regarding the underlying operating performance of our business and are appropriate to enhance an overall understanding of our financial performance. Management also believes that EBITDA and Adjusted EBITDA are useful to investors because they are frequently used by securities analysts, investors, and other interested parties to evaluate the performance of companies in our industry.

The consolidated financial statements of EchoStar for the periods ended March 31, 2020 and 2019 are attached to this press release. Detailed financial data and other information are available in EchoStar’s Quarterly Report on Form 10-Q for the period ended March 31, 2020 filed today with the Securities and Exchange Commission.

EchoStar will host its earnings conference call on Thursday, May 7, 2020 at 11:00 a.m. Eastern Time. The call-in numbers are (877) 815-1625 (toll-free) and (716) 247-5178 (international), Conference ID 9193376.

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About EchoStar Corporation

EchoStar Corporation (NASDAQ: SATS) is a premier global provider of satellite communications solutions. Headquartered in Englewood, Colo., and conducting business around the globe, EchoStar is a pioneer in secure communications technologies through its Hughes Network Systems and EchoStar Satellite Services business segments.

Safe Harbor Statement under the US 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 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. We assume no responsibility for the accuracy of forward-looking statements or information or for updating forward-looking information or statements. These statements are subject to certain risks, uncertainties, and assumptions. See “Risk Factors” in EchoStar’s Annual Report on Form 10-K for the period ended December 31, 2019 and Quarterly Report on Form 10-Q for the period ended March 31, 2020 as filed with the Securities and Exchange Commission and in the other documents EchoStar files with the Securities and Exchange Commission from time to time.

###

Contact Information

EchoStar Investor Relations
EchoStar Media Relations
Terry Brown
Phone: +1 303-728-5179
Sharyn Nerenberg
Phone: +1 301-428-7124

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ECHOSTAR CORPORATION
Condensed Consolidated Balance Sheets
(Amounts in thousands, except per share amounts)
 
 
As of
 
 
March 31, 2020
 
December 31, 2019
Assets
 
 
 
 
Current assets:
 
 

 
 

Cash and cash equivalents
 
$
1,599,025

 
$
1,519,431

Marketable investment securities
 
790,361

 
940,623

Trade accounts receivable and contract assets, net
 
187,919

 
196,629

Other current assets, net
 
189,887

 
179,531

Total current assets
 
2,767,192

 
2,836,214

Non-current assets:
 
 

 
 

Property and equipment, net
 
2,428,543

 
2,528,738

Operating lease right-of-use assets
 
119,794

 
114,042

Goodwill
 
509,315

 
506,953

Regulatory authorizations, net
 
471,164

 
478,598

Other intangible assets, net
 
25,826

 
29,507

Other investments, net
 
298,147

 
325,405

Other non-current assets, net
 
339,640

 
334,841

Total non-current assets
 
4,192,429

 
4,318,084

Total assets
 
$
6,959,621

 
$
7,154,298

 
 
 
 
 
Liabilities and Stockholders’ Equity
 
 

 
 

Current liabilities:
 
 

 
 

Trade accounts payable
 
$
107,245

 
$
124,080

Contract liabilities
 
99,266

 
101,060

Accrued expenses and other current liabilities
 
239,706

 
270,879

Total current liabilities
 
446,217

 
496,019

Non-current liabilities:
 
 

 
 

Long-term debt
 
2,390,218

 
2,389,168

Deferred tax liabilities, net
 
339,006

 
351,692

Operating lease liabilities
 
105,482

 
96,941

Other non-current liabilities
 
73,123

 
74,925

Total non-current liabilities
 
2,907,829

 
2,912,726

Total liabilities
 
3,354,046

 
3,408,745

 
 
 
 
 
Commitments and contingencies
 
 
 
 

5

Stockholders’ equity:
 
 

 
 

Preferred stock, $0.001 par value, 20,000,000 shares authorized, none issued and outstanding at both March 31, 2020 and December 31, 2019
 
—

 
—

Common stock, $0.001 par value, 4,000,000,000 shares authorized:
 
 

 
 

Class A common stock, $0.001 par value, 1,600,000,000 shares authorized, 56,760,433 shares issued and 50,078,513 shares outstanding at March 31, 2020 and 56,592,251 shares issued and 50,107,330 shares outstanding at December 31, 2019
 
57

 
57

Class B convertible common stock, $0.001 par value, 800,000,000 shares authorized, 47,687,039 shares issued and outstanding at both March 31, 2020 and December 31, 2019
 
48

 
48

Class C convertible common stock, $0.001 par value, 800,000,000 shares authorized, none issued and outstanding at both March 31, 2020 and December 31, 2019
 
—

 
—

Class D common stock, $0.001 par value, 800,000,000 shares authorized, none issued and outstanding at both March 31, 2020 and December 31, 2019
 
—

 
—

Additional paid-in capital
 
3,307,360

 
3,290,483

Accumulated other comprehensive income (loss)
 
(192,218
)
 
(122,138
)
Accumulated earnings (losses)
 
569,446

 
632,809

Treasury stock, at cost
 
(137,347
)
 
(131,454
)
Total EchoStar Corporation stockholders’ equity
 
3,547,346

 
3,669,805

Non-controlling interests
 
58,229

 
75,748

Total stockholders’ equity
 
3,605,575

 
3,745,553

Total liabilities and stockholders’ equity
 
$
6,959,621

 
$
7,154,298



6

ECHOSTAR CORPORATION
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share amounts)

 
 
For the three months
ended March 31,
 
 
2020
 
2019
Revenue:
 
 
 
 
Services and other revenue
 
$
408,357

 
$
402,668

Equipment revenue
 
57,309

 
51,714

Total revenue
 
465,666

 
454,382

Costs and expenses:
 
 
 
 
Cost of sales - services and other (exclusive of depreciation and amortization)
 
145,252

 
143,347

Cost of sales - equipment (exclusive of depreciation and amortization)
 
45,908

 
45,007

Selling, general and administrative expenses
 
125,281

 
112,114

Research and development expenses
 
6,254

 
6,888

Depreciation and amortization
 
132,368

 
118,978

Total costs and expenses
 
455,063

 
426,334

Operating income (loss)
 
10,603

 
28,048

Other income (expense):
 
 
 
 
Interest income, net
 
15,583

 
24,429

Interest expense, net of amounts capitalized
 
(36,233
)
 
(53,199
)
Gains (losses) on investments, net
 
(46,672
)
 
6,936

Equity in earnings (losses) of unconsolidated affiliates, net
 
2,613

 
(6,353
)
Foreign currency transaction gains (losses), net
 
(10,844
)
 
(1,160
)
Other, net
 
(279
)
 
(42
)
Total other income (expense), net
 
(75,832
)
 
(29,389
)
Income (loss) from continuing operations before income taxes
 
(65,229
)
 
(1,341
)
Income tax benefit (provision), net
 
7,492

 
(2,898
)
Net income (loss) from continuing operations
 
(57,737
)
 
(4,239
)
Net income (loss) from discontinued operations
 
—

 
19,247

Net income (loss)
 
(57,737
)
 
15,008

Less: Net loss (income) attributable to non-controlling interests
 
3,442

 
(806
)
Net income (loss) attributable to EchoStar Corporation common stock
 
$
(54,295
)
 
$
14,202

 
 
 
 
 
Earnings (losses) per share - Class A and B common stock:
 
 
 
 
Basic and diluted earnings (losses) from continuing operations per share
 
$
(0.56
)
 
$
(0.05
)
Total basic and diluted earnings (losses) per share
 
$
(0.56
)
 
$
0.15



7

ECHOSTAR CORPORATION
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands, except per share amounts)
 
 
For the three months
ended March 31,
 
 
2020
 
2019
Cash flows from operating activities:
 
 

 
 

Net income (loss)
 
$
(57,737
)
 
$
15,008

Adjustments to reconcile net income (loss) to net cash flows from operating activities:
 
 
 
 
Depreciation and amortization
 
132,368

 
154,221

Losses (gains) on investments, net
 
46,672

 
(6,418
)
Equity in losses (earnings) of unconsolidated affiliates, net
 
(2,613
)
 
6,353

Foreign currency transaction losses (gains), net
 
10,844

 
1,160

Deferred tax provision (benefit), net
 
(10,064
)
 
6,455

Stock-based compensation
 
2,384

 
2,628

Amortization of debt issuance costs
 
1,050

 
2,010

Other, net
 
(4,899
)
 
1,754

Changes in assets and liabilities, net:
 
 
 
 
Trade accounts receivable and contract assets, net
 
(7,664
)
 
(19,231
)
Other current assets, net
 
(16,127
)
 
(10,370
)
Trade accounts payable
 
(9,559
)
 
8,831

Contract liabilities
 
(3,212
)
 
17,896

Accrued expenses and other current liabilities
 
(4,922
)
 
(9,914
)
Non-current assets and non-current liabilities, net
 
(5,226
)
 
5,563

Net cash flows from operating activities
 
71,295

 
175,946

 
 
 
 
 
Cash flows from investing activities:
 
 

 
 

Purchases of marketable investment securities
 
(550,891
)
 
(325,557
)
Sales and maturities of marketable investment securities
 
687,579

 
712,666

Purchase of other investments
 
(5,500
)
 
—

Expenditures for property and equipment
 
(104,604
)
 
(111,962
)
Expenditures for externally marketed software
 
(8,638
)
 
(7,600
)
Net cash flows from investing activities
 
17,946

 
267,547

 
 
 
 
 
Cash flows from financing activities:
 
 

 
 

Repurchase of the 2019 Senior Secured Notes
 
—

 
(8,046
)
Payment of finance lease obligations
 
(215
)
 
(9,882
)
Payment of in-orbit incentive obligations
 
(801
)
 
(1,573
)
Net proceeds from Class A common stock options exercised
 
150

 
2,047

Net proceeds from Class A common stock issued under the Employee Stock Purchase Plan
 
2,924

 
2,749

Treasury share purchase
 
(5,893
)
 
—

Contribution by non-controlling interest holder
 
4,000

 
—

Purchase of non-controlling interest
 
—

 
(7,313
)
Other, net
 
817

 
(131
)
Net cash flows from financing activities
 
982

 
(22,149
)
 
 
 
 
 
Effect of exchange rates on cash and cash equivalents
 
(4,809
)
 
(133
)
Net increase (decrease) in cash and cash equivalents
 
85,414

 
421,211

Cash and cash equivalents, including restricted amounts, beginning of period
 
1,521,889

 
929,495

Cash and cash equivalents, including restricted amounts, end of period
 
$
1,607,303

 
$
1,350,706



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