Intelsat S.A.

CIK:0001525773|SEC Filings

Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Revenue	$ 526,095	$ 489,449	$ 1,536,720	$ 1,430,303
Operating expenses:
Direct costs of revenue (excluding depreciation and amortization)	177,176	119,969	505,798	331,191
Selling, general and administrative	96,796	69,215	299,499	214,586
Depreciation and amortization	162,017	162,573	495,517	488,235
Impairment of non-amortizable intangible and other assets	0	0	0	46,243
Other operating expense—C-band	17,867	298	140,861	580
Total operating expenses	453,856	352,055	1,441,675	1,080,835
Income from operations	72,239	137,394	95,045	349,468
Interest expense, net	(126,600)	(138,075)	(388,836)	(678,937)
Other income, net	10,196	3,067	40,133	8,564
Reorganization items	(98,316)	(36,367)	(203,719)	(335,059)
Loss before income taxes	(142,481)	(33,981)	(457,377)	(655,964)
Income tax benefit (expense)	(2,605)	18,650	(13,716)	17,691
Net loss	(145,086)	(15,331)	(471,093)	(638,273)
Net income attributable to noncontrolling interest	(604)	(600)	(1,779)	(1,784)
Net loss attributable to Intelsat S.A.	$ (145,690)	$ (15,931)	$ (472,872)	$ (640,057)
Net loss per common share attributable to Intelsat S.A.:
Basic (in dollars per share)	$ (1,020.00)	$ (0.11)	$ (3,330)	$ (4.51)
Diluted (in dollars per share)	$ (1,020.00)	$ (0.11)	$ (3,330)	$ (4.51)

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (471,093)	$ (638,273)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	495,517	488,235
Provision for expected credit losses	21,729	36,360
Foreign currency transaction losses	2,639	7,330
Loss on disposal of assets	43	0
Impairment of non-amortizable intangible and other assets	0	46,243
Share-based compensation	19,377	9,399
Deferred income taxes	5,404	4,720
Amortization of discount, premium, issuance costs and related costs	7,559	19,689
Non-cash reorganization items	0	196,974
Debtor-in-possession financing fees	46,944	52,182
Amortization of actuarial loss and prior service credits for retirement benefits	3,189	1,976
Unrealized losses on derivative financial instruments	0	372
Unrealized (gains) losses on investments and loans held-for-investment	(25,226)	721
Amortization of supplemental type certificate costs	8,549	0
Other non-cash items	(133)	0
Changes in operating assets and liabilities:
Receivables	22,554	2,769
Prepaid expenses, contract and other assets	17,557	(67,253)
Accounts payable and accrued liabilities	3,603	60,624
Accrued interest payable	1,347	48,713
Contract liabilities	(67,054)	(62,737)
Accrued retirement benefits	(16,385)	(12,253)
Other long-term liabilities	(25,944)	(1,062)
Net cash provided by operating activities	50,176	194,729
Cash flows from investing activities:
Capital expenditures (including capitalized interest)	(667,885)	(419,952)
Acquisition of loans held-for-investment	0	(2,300)
Proceeds from sale of investment	15,000	0
Loan amendment fees received	1,800	0
Proceeds from principal payments on loans held-for-investment	208	973
Capital contribution to unconsolidated affiliate (including capitalized interest)	0	(2,692)
Acquisition of intangible assets	(3,315)	0
Other proceeds from satellites	0	5,625
Net cash used in investing activities	(654,192)	(418,346)
Cash flows from financing activities:
Proceeds from debtor-in-possession financing	1,250,000	500,000
Repayments of debtor-in-possession financing	(1,000,000)	0
Debtor-in-possession financing fees	(46,944)	(52,182)
Principal payments on deferred satellite performance incentives	(14,859)	(25,428)
Dividends paid to noncontrolling interest	(4,293)	(4,959)
Net cash provided by financing activities	183,904	417,431
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(3,250)	(4,328)
Net change in cash, cash equivalents and restricted cash	(423,362)	189,486
Cash, cash equivalents, and restricted cash, beginning of period	1,087,547	830,864
Cash, cash equivalents, and restricted cash, end of period	664,185	1,020,350
Supplemental cash flow information:
Cash paid for reorganization items included in cash flows from operating activities	152,675	53,983
Interest paid, net of amounts capitalized	307,901	532,234
Income taxes paid, net of refunds	2,664	4,717
Supplemental disclosure of non-cash investing activities:
Accrued capital expenditures	67,944	51,221
Conversion of loans held-for-investment to equity securities	0	4,802
Capitalization of deferred satellite performance incentives	5,318	0
Conversion of payment-in-kind interest on loans held-for-investment	1,762	0
Purchase price adjustment	$ 7,843	$ 0

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 636,510	$ 1,060,917
Restricted cash	27,675	21,130
Receivables, net of allowances of $40,785 in 2020 and $32,949 in 2021	217,235	254,273
Receivables relating to C-band	1,035,578	405,171
Contract assets, net of allowances	42,447	39,774
Inventory	125,288	147,094
Prepaid expenses and other current assets	140,330	136,611
Total current assets	2,225,063	2,064,970
Satellites and other property and equipment, net	4,981,394	4,757,877
Goodwill	2,689,482	2,698,247
Non-amortizable intangible assets	2,295,000	2,295,000
Amortizable intangible assets, net	262,355	290,569
Contract assets, net of current portion and allowances	71,914	86,017
Other assets	727,862	605,001
Total assets	13,253,070	12,797,681
Current liabilities:
Accounts payable and accrued liabilities	279,122	252,998
Taxes payable	6,486	7,493
Employee-related liabilities	43,382	43,404
Accrued interest payable	19,094	17,747
Current maturities of long-term debt	6,162,315	5,903,724
Contract liabilities	858,941	157,320
Deferred satellite performance incentives	54,512	47,377
Other current liabilities	105,416	73,479
Total current liabilities	7,529,268	6,503,542
Contract liabilities, net of current portion	1,309,270	1,447,891
Deferred satellite performance incentives, net of current portion	121,439	138,116
Deferred income taxes	77,485	61,345
Accrued retirement benefits, net of current portion	113,452	129,837
Other long-term liabilities	315,939	262,900
Liabilities subject to compromise	10,169,243	10,168,518
Shareholders’ deficit:
Common shares, nominal value $0.01 per share	1,422	1,421
Paid-in capital	2,577,607	2,573,840
Accumulated deficit	(8,889,282)	(8,416,410)
Accumulated other comprehensive loss	(77,261)	(80,322)
Total Intelsat S.A. shareholders’ deficit	(6,387,514)	(5,921,471)
Noncontrolling interest	4,488	7,003
Total liabilities and shareholders’ deficit	$ 13,253,070	$ 12,797,681