PanAmSat Increases Third Quarter Profitability and Free Cash Flow

Communications Today, Oct 14, 2002

Wilton, Conn.-based PanAmSat [SPOT] showed growing financial strength with its third-quarter results. The satellite operator generated revenues of $199.1 million, earnings before net interest expense, income taxes, depreciation and amortization (EBITDA) of $145.4 million, earnings before interest and taxes (EBIT) of $66.5 million and earnings per share of 14 cents, company officials said. The company's EBITDA margin was 73 percent of revenues for the July-September period, up 7 percentage points from the same period last year.

PanAmSat reported business highlights including:

* Achieving guidance, including EBITDA margins in excess of 72 percent, for the third consecutive quarter, and free cash flow of $350 million on revenues of $615.5 million for the first nine months;

* Completing a $2 billion, 30-month, seven-satellite fleet modernization program, and;

* Strengthening the power of its in-orbit neighborhood of Galaxy satellites through new long-term transponder agreements with core customers.