Exhibit 99.1


EchoStar Announces Financial Results for Three and Nine Months Ended
September 30, 2018


Englewood, CO, November 8, 2018—EchoStar Corporation (NASDAQ: SATS) today announced its financial results for the three and nine months ended September 30, 2018.


Three Months Ended September 30, 2018 Financial Highlights:

•
Consolidated revenues of $533.0 million.
•
Consolidated net income from continuing operations of $16.5 million, consolidated net income attributable to EchoStar common stock of $16.1 million, and diluted earnings per share of $0.17. Included in these amounts are net gains on investments of $4.7 million. Excluding these net gains, diluted earnings per share would have been $0.12.
•
Consolidated EBITDA of $220.2 million, including net gains on investments of $4.7 million.  Excluding these net gains, EBITDA would have been $215.5 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below).

Nine Months Ended September 30, 2018 Financial Highlights:

•
Consolidated revenues of $1,560.7 million.
•
Consolidated net income from continuing operations of $73.0 million, consolidated net income attributable to EchoStar common stock of $71.7 million, and diluted earnings per share of $0.74. Included in these amounts are net gains on investments of $33.4 million. Excluding these net gains, diluted earnings per share would have been $0.40.
•
Consolidated EBITDA of $671.7 million, including net gains on investments of $33.4 million.  Excluding these net gains, EBITDA would have been $638.2 million (see discussion and the reconciliation of GAAP to this non-GAAP measure below).

Additional Highlights:

•
Approximately 1,332,000 Hughes broadband subscribers as of September 30, 2018.
Cash, cash equivalents and current marketable investment securities of $3.4 billion as of September 30, 2018.

1


Set forth below is a table highlighting certain of EchoStar’s segment results for the three and nine months ended September 30, 2018 and 2017:
 
 
For the three months
ended September 30,
 
For the nine months
ended September 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
(Dollars in thousands)
Revenue
 
 
 
 
 
 
 
 
Hughes
 
$
444,762

 
$
380,061

 
$
1,271,886

 
$
1,072,143

EchoStar Satellite Services
 
84,007

 
97,093

 
276,185

 
295,785

Corporate & Other
 
4,184

 
4,079

 
12,631

 
11,532

Total
 
$
532,953

 
$
481,233

 
$
1,560,702

 
$
1,379,460

 
 
 
 
 
 
 
 
 
EBITDA
 
 
 
 
 
 
 
 
Hughes
 
$
164,135

 
$
131,817

 
$
452,982

 
$
342,693

EchoStar Satellite Services
 
72,156

 
78,345

 
238,789

 
241,873

Corporate & Other:
 
 
 
 
 
 
 
 
Corporate overhead, operating and other
 
(21,076
)
 
(14,772
)
 
(50,641
)
 
(44,386
)
Equity in earnings (losses) of unconsolidated affiliates, net
 
416

 
4,381

 
(2,651
)
 
15,620

Gains and losses on investments, net
 
4,549

 
20,090

 
33,171

 
32,238

Sub-total
 
(16,111
)
 
9,699

 
(20,121
)
 
3,472

Total
 
$
220,180

 
$
219,861

 
$
671,650

 
$
588,038

 
 
 
 
 
 
 
 
 
Net income from continuing operations
 
$
16,502

 
$
35,855

 
$
73,015

 
$
73,221

Net income (loss) from discontinued operations
 
—

 
(654
)
 
—

 
6,454

Net income
 
$
16,502

 
$
35,201

 
$
73,015

 
$
79,675

 
 
 
 
 
 
 
 
 
Expenditures for property and equipment from continuing operations
 
$
167,155

 
$
192,131

 
$
337,729

 
$
410,145


The following table reconciles GAAP to non-GAAP measurements.

 
 
For the three months
ended September 30,
 
For the nine months
ended September 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
(Dollars in thousands)
Net income
 
$
16,502

 
$
35,201

 
$
73,015

 
$
79,675

 
 
 
 
 
 
 
 
 
Interest income and expense, net
 
40,737

 
43,634

 
130,134

 
126,156

Income tax provision, net
 
12,836

 
6,082

 
25,235

 
9,073

Depreciation and amortization
 
150,555

 
134,822

 
444,558

 
379,939

Net (income) loss from discontinued operations
 
—

 
654

 
—

 
(6,454
)
Net income attributable to noncontrolling interests
 
(450
)
 
(532
)
 
(1,292
)
 
(351
)
EBITDA
 
$
220,180

 
$
219,861

 
$
671,650

 
$
588,038



2


Note on Use of Non-GAAP Financial Measures
EBITDA is defined as “Net income (loss)” excluding “Interest income and expense, net,” “Income tax provision (benefit), net,” “Depreciation and amortization,” “Net income (loss) from discontinued operations,” and “Net income (loss) attributable to noncontrolling interests.” EBITDA is not determined in accordance with US GAAP. EBITDA is 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 this non-GAAP measure as a measure of our operating efficiency and overall financial performance for benchmarking against our peers and competitors. Management believes that this non-GAAP measure provides meaningful supplemental information regarding the underlying operating performance of our business and is appropriate to enhance an overall understanding of our financial performance. Management also believes that EBITDA is useful to investors because it is 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 September 30, 2018 and 2017 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 September 30, 2018 filed today with the Securities and Exchange Commission.

EchoStar will host its earnings conference call on Thursday, November 8, 2018 at 11:00 a.m. Eastern Time. The call-in numbers are (877) 815-1625 (toll-free) and (716) 247-5178 (international), Conference ID # 1087737.

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, 2017 and Quarterly Report on Form 10-Q for the period ended September 30, 2018, 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
Deepak V. Dutt
Phone: +1 301-428-1686
Sharyn Nerenberg
Phone: +1 301-428-7124

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ECHOSTAR CORPORATION
Consolidated Balance Sheets

 
 
As of
 
 
September 30, 2018
 
December 31, 2017
Assets
 
(Unaudited) 
 
(Audited)
Current assets:
 
 

 
 

Cash and cash equivalents
 
$
1,597,295

 
$
2,431,456

Marketable investment securities, at fair value
 
1,842,875

 
814,161

Trade accounts receivable and contract assets, net
 
217,524

 
196,840

Trade accounts receivable - DISH Network
 
11,065

 
43,295

Inventory
 
70,061

 
83,595

Prepaids and deposits
 
56,149

 
54,533

Other current assets
 
17,222

 
91,671

Total current assets
 
3,812,191

 
3,715,551

Noncurrent assets:
 
 

 
 

Property and equipment, net
 
3,442,537

 
3,465,471

Regulatory authorizations, net
 
525,595

 
536,936

Goodwill
 
504,173

 
504,173

Other intangible assets, net
 
47,912

 
58,955

Investments in unconsolidated entities
 
160,669

 
161,427

Other receivables - DISH Network
 
94,503

 
92,687

Other noncurrent assets, net
 
262,866

 
214,814

Total noncurrent assets
 
5,038,255

 
5,034,463

Total assets
 
$
8,850,446

 
$
8,750,014

Liabilities and Stockholders’ Equity
 
 

 
 

Current liabilities:
 
 

 
 

Trade accounts payable
 
$
119,235

 
$
108,406

Trade accounts payable - DISH Network
 
1,411

 
4,753

Current portion of long-term debt and capital lease obligations
 
1,030,088

 
40,631

Contract liabilities
 
74,135

 
65,959

Accrued interest
 
57,589

 
47,616

Accrued compensation
 
41,341

 
47,756

Accrued taxes
 
16,681

 
16,122

Accrued expenses and other
 
72,464

 
82,647

Total current liabilities
 
1,412,944

 
413,890

Noncurrent liabilities:
 
 

 
 

Long-term debt and capital lease obligations, net
 
2,582,819

 
3,594,213

Deferred tax liabilities, net
 
471,259

 
436,023

Other noncurrent liabilities
 
124,694

 
128,503

Total noncurrent liabilities
 
3,178,772

 
4,158,739

Total liabilities
 
4,591,716

 
4,572,629

Commitments and contingencies
 
 
 
 
Stockholders’ equity:
 
 

 
 

Preferred stock, $.001 par value, 20,000,000 shares authorized, none issued and outstanding at each of September 30, 2018 and December 31, 2017
 
—

 
—

Common stock, $.001 par value, 4,000,000,000 shares authorized:
 
 

 
 

Class A common stock, $.001 par value, 1,600,000,000 shares authorized, 54,080,228 shares issued and 48,547,910 shares outstanding at September 30, 2018 and 53,663,859 shares issued and 48,131,541 shares outstanding at December 31, 2017
 
54

 
54

Class B convertible common stock, $.001 par value, 800,000,000 shares authorized, 47,687,039 shares issued and outstanding at each of September 30, 2018 and December 31, 2017
 
48

 
48

Class C convertible common stock, $.001 par value, 800,000,000 shares authorized, none issued and outstanding at each of September 30, 2018 and December 31, 2017
 
—

 
—

Class D common stock, $.001 par value, 800,000,000 shares authorized, none issued and outstanding at each of September 30, 2018 and December 31, 2017
 
—

 
—

Additional paid-in capital
 
3,694,682

 
3,669,461

Accumulated other comprehensive loss
 
(160,947
)
 
(130,154
)
Accumulated earnings
 
808,330

 
721,316

Treasury stock, at cost
 
(98,162
)
 
(98,162
)
Total EchoStar Corporation stockholders’ equity
 
4,244,005

 
4,162,563

Other noncontrolling interests
 
14,725

 
14,822

Total stockholders’ equity
 
4,258,730

 
4,177,385

Total liabilities and stockholders’ equity
 
$
8,850,446

 
$
8,750,014



4


ECHOSTAR CORPORATION
Consolidated Statements of Operations
(In thousands)

 
 
For the three months
ended September 30,
 
For the nine months
ended September 30,
 
 
2018
 
2017
 
2018
 
2017
Revenue:
 
 

 
 

 
 

 
 

Services and other revenue - DISH Network
 
$
87,859

 
$
111,135

 
$
291,835

 
$
339,824

Services and other revenue - other
 
388,248

 
310,973

 
1,118,733

 
865,817

Equipment revenue
 
56,846

 
59,125

 
150,134

 
173,819

Total revenue
 
532,953

 
481,233

 
1,560,702

 
1,379,460

 
 
 
 
 
 
 
 
 
Costs and expenses:
 
 

 
 

 
 

 
 

Cost of sales - services and other (exclusive of depreciation and amortization)
 
152,011

 
143,048

 
451,913

 
416,463

Cost of sales - equipment (exclusive of depreciation and amortization)
 
46,318

 
47,644

 
127,254

 
141,839

Selling, general and administrative expenses
 
107,490

 
91,003

 
313,839

 
263,820

Research and development expenses
 
6,544

 
8,302

 
20,328

 
23,444

Depreciation and amortization
 
150,555

 
134,822

 
444,558

 
379,939

Total costs and expenses
 
462,918

 
424,819

 
1,357,892

 
1,225,505

Operating income
 
70,035

 
56,414

 
202,810

 
153,955

 
 
 
 
 
 
 
 
 
Other income (expense):
 
 

 
 

 
 

 
 

Interest income
 
21,349

 
12,012

 
56,237

 
30,342

Interest expense, net of amounts capitalized
 
(62,086
)
 
(55,646
)
 
(186,371
)
 
(156,498
)
Gains and losses on investments, net
 
4,693

 
20,090

 
33,426

 
30,664

Equity in earnings (losses) of unconsolidated affiliates, net
 
416

 
4,381

 
(2,651
)
 
15,620

Other, net
 
(5,069
)
 
4,686

 
(5,201
)
 
8,211

Total other income (expense), net
 
(40,697
)
 
(14,477
)
 
(104,560
)
 
(71,661
)
Income from continuing operations before income taxes
 
29,338

 
41,937

 
98,250

 
82,294

Income tax provision, net
 
(12,836
)
 
(6,082
)
 
(25,235
)
 
(9,073
)
Net income from continuing operations
 
16,502

 
35,855

 
73,015

 
73,221

Net income (loss) from discontinued operations
 
—

 
(654
)
 
—

 
6,454

Net income
 
16,502

 
35,201

 
73,015

 
79,675

Less: Net income attributable to noncontrolling interests
 
450

 
532

 
1,292

 
351

Net income attributable to EchoStar Corporation
 
16,052

 
34,669

 
71,723

 
79,324

Less: Net loss attributable to Hughes Retail Preferred Tracking Stock
 
—

 
—

 
—

 
(1,209
)
Net income attributable to EchoStar Corporation common stock
 
$
16,052

 
$
34,669

 
$
71,723

 
$
80,533

 
 
 
 
 
 
 
 
 
Earnings per share - Class A and B common stock:
 
 

 
 

 
 

 
 

Basic earnings from continuing operations per share
 
$
0.17

 
$
0.37

 
$
0.75

 
$
0.78

Total basic earnings per share
 
$
0.17

 
$
0.36

 
$
0.75

 
$
0.84

Diluted earnings from continuing operations per share
 
$
0.17

 
$
0.36

 
$
0.74

 
$
0.77

Total diluted earnings per share
 
$
0.17

 
$
0.36

 
$
0.74

 
$
0.83



5


ECHOSTAR CORPORATION
Consolidated Statements of Cash Flows
(In thousands)

 
 
For the nine months ended September 30,
 
 
2018
 
2017
Cash flows from operating activities:
 
 

 
 

Net income
 
$
73,015

 
$
79,675

Adjustments to reconcile net income to net cash flows from operating activities:
 
 

 
 

Depreciation and amortization
 
444,558

 
391,598

Equity in (earnings) losses of unconsolidated affiliates, net
 
2,651

 
(14,461
)
Amortization of debt issuance costs
 
5,910

 
5,479

Gains and losses on investments, net
 
(33,524
)
 
(30,664
)
Stock-based compensation
 
7,771

 
7,169

Deferred tax provision
 
22,357

 
7,924

Dividends received from unconsolidated entity
 
5,000

 
15,000

Proceeds from sale of trading securities
 
—

 
8,922

Changes in current assets and current liabilities, net:
 
 
 
 
Trade accounts receivable, net
 
(35,811
)
 
5,088

Trade accounts receivable - DISH Network
 
32,323

 
225,963

Inventory
 
10,667

 
(26,231
)
Other current assets
 
(5,569
)
 
(11,392
)
Trade accounts payable
 
2,536

 
(64,553
)
Trade accounts payable - DISH Network
 
(3,342
)
 
2,534

Accrued expenses and other
 
19,450

 
13,268

Changes in noncurrent assets and noncurrent liabilities, net
 
(16,123
)
 
(23,474
)
Other, net
 
12,043

 
91

Net cash flows from operating activities
 
543,912

 
591,936

Cash flows from investing activities:
 
 

 
 

Purchases of marketable investment securities
 
(2,323,090
)
 
(319,912
)
Sales and maturities of marketable investment securities
 
1,331,225

 
375,890

Expenditures for property and equipment
 
(415,253
)
 
(422,661
)
Refunds and other receipts related to property and equipment
 
77,524

 
—

Sale of investment in unconsolidated entity
 
1,558

 
17,781

Expenditures for externally marketed software
 
(24,568
)
 
(25,447
)
Other
 
(991
)
 
—

Net cash flows from investing activities
 
(1,353,595
)
 
(374,349
)
Cash flows from financing activities:
 
 

 
 

Repayment of debt and capital lease obligations
 
(27,764
)
 
(26,394
)
Net proceeds from Class A common stock options exercised
 
4,424

 
33,156

Net proceeds from Class A common stock issued under the Employee Stock Purchase Plan
 
7,428

 
6,938

Cash exchanged for Tracking Stock
 
—

 
(651
)
Repayment of in-orbit incentive obligations
 
(4,601
)
 
(4,583
)
Other, net
 
(530
)
 
201

Net cash flows from financing activities
 
(21,043
)
 
8,667

Effect of exchange rates on cash and cash equivalents
 
(3,449
)
 
1,014

Net increase (decrease) in cash and cash equivalents, including restricted amounts
 
(834,175
)
 
227,268

Cash and cash equivalents, including restricted amounts, beginning of period
 
2,432,249

 
2,571,866

Cash and cash equivalents, including restricted amounts, end of period
 
$
1,598,074

 
$
2,799,134

 
 
 
 
 
Supplemental disclosure of cash flow information:
 
 

 
 

Cash paid for interest, net of amounts capitalized
 
$
170,303

 
$
137,955

Cash paid for income taxes
 
$
3,369

 
$
10,071



6