COMSAT Corporation Reports Second Quarter 2000 Financial Results; COMSAT Reports $0.12 Earnings Per Share This Quarter On Revenues Of $168.8 Million.Business Editors/Hi-Tech Writers BETHESDA Bethesda, city, United States Bethesda, uninc. city (1990 pop. 62,936), Montgomery co., W central Md., an affluent residential and commercial suburb of Washington, D.C. The area was settled in the late 17th cent. , Md.--(BUSINESS WIRE)--July 24, 2000 COMSAT Comsat: see Communications Satellite Corporation; communications satellite. (COMSAT General Corporation, Bethesda, MD) Formerly Communications Satellite Corporation, COMSAT was a private company that was created by the U.S. Corporation (NYSE NYSE See: New York Stock Exchange :CQ) today reported net income of $6.6 million, or $0.12 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the three months ended June June: see month. 30, 2000, compared to net income of $12.0 million, or $0.22 per fully diluted share, in the second quarter of 1999. Revenues in the second quarter were $168.8 million, up 8% over the $155.9 million in revenues in the second quarter of last year. Income before taxes was $11.8 million, versus $22.4 million in the same period last year. The second quarter 2000 results include the establishment of a $7.5 million reserve related to an investigation of Electromechanical The use of electricity to run moving parts. Disk drives, printers and motors are examples. Electromechanical systems must be designed for the eventual deterioration of moving components that wear over time. The first TVs were electromechanical systems (see video/TV history). Systems, Inc., COMSAT's subsidiary in Largo, Florida Largo is the third largest city in Pinellas County, Florida, USA and is part of the Tampa Bay Area. Centrally located, it is the crossroads of the county. As of the 2000 census, the City had a total population of 69,371. As of 2004, the population recorded by the U.S. , by the U.S. Attorney's CERTIFICATE, ATTORNEY'S, Practice, English law. By statute 37 Geo. III., c. 90, s. 26, 28, attorneys are required to deliver to the commissioners of stamp duties, a paper or note in writing, containing the name and usual place of residence of such person, and thereupon, on paying certain office in Tampa, Florida “Tampa” redirects here. For other uses, see Tampa (disambiguation). Tampa is a United States city in Hillsborough County, on the west coast of Florida. It serves as the county seat for Hillsborough County.GR6. . The second quarter of 1999 included a $12.6 pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain from the sale of stock in Viatel, Inc. COMSAT expects to complete its pending merger with Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. Corporation shortly after final approval by the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. . "The company has been very focused on closing its pending merger with Lockheed Martin, which is now anticipated within a few weeks," said COMSAT President and Chief Executive Officer Betty Bet´ty n. 1. A short bar used by thieves to wrench doors open. The powerful betty, or the artful picklock. - Arbuthnot. 2. C. Alewine. In Satellite Services, COMSAT World Systems (CWS CWS Chicago White Sox CWS College World Series CWS Church World Service CWS Child Welfare Services CWS Canadian Wildlife Service CWS Community Water System (EPA) CWS Canada-Wide Standard CWS Compressed Work Schedule ) posted segment income (before interest and taxes) of $45.6 million on $97.4 million in revenues for the quarter, up from segment income of $32.0 million and $86.3 million in revenues in the second quarter of 1999. Revenue growth for World Systems continues to be generated primarily from increased Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and other high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. data traffic. The increase in CWS's segment income primarily was due to the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of a reserve related to space segment usage charges, the change in the depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. lives of satellites in the second half of 1999, higher ownership in INTELSAT and revenue growth. "The continued strong performance of COMSAT World Systems' reflects the company's excellent capabilities as a global data services provider," added Mrs. Alewine. COMSAT Mobile Communications COMSAT mobile communications (CMC) is a telecommunications company which provides Mobile packet data service. It was formerly owned by Lockheed Martin Global Telecommunications (a subsidiary of Lockheed Martin) but is believed to have been acquired by Telenor of Norway in (CMC (Common Messaging Calls) A programming interface specified by the XAPIA as the standard messaging API for X.400 and other messaging systems. CMC is intended to provide a common API for applications that want to become mail enabled. 1. ) posted segment income of $5.7 million on revenues of $27.0 million this quarter, compared to segment income of $4.1 million and revenues of $30.9 million in the same period last year. The increase in segment income was primarily due to higher equity earnings from CMC's investment in Inmarsat Inmarsat: see Communications Satellite Corporation; communications satellite. (Inmarsat plc, London, www.inmarsat.com) A satellite communications company that provides voice and data services to the maritime, transportation and aeronautics markets as well . Revenues for COMSAT International (CI) were $29.8 million in the second quarter, compared to $27.7 million in the second quarter of 1999. CI posted a segment loss of $6.8 million this quarter, compared to segment income of $9.5 million in the same period last year. The 1999 second quarter results for CI included the gain from the sale of stock in Viatel, Inc. Absent this item, CI's segment loss was $3.7 million higher in the quarter due to increased losses in both Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. and Columbia Columbia, cities, United States Columbia (kəlŭm`bēə). 1 City (1990 pop. 75,883), Howard co., central Md., between Washington, D.C., and Baltimore. . Revenues at COMSAT Laboratories were $11.7 million, versus $13.3 million in the same period last year. COMSAT Labs posted a segment loss of $1.7 million this quarter, compared to a segment loss of $200,000 in the second quarter of 1999. This was primarily due to increased losses in the Lab's communications product business. The Corporation's income before taxes for the second quarter includes $1.6 million in expenses related to the proposed merger with Lockheed Martin Corporation as compared to $2.1 million during the same period of 1999. Additionally, the COMSAT Board of Directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: a quarterly dividend of $0.05 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , which is COMSAT's 120th consecutive dividend payment. The quarterly dividend will be payable on September September: see month. 11, 2000, to shareholders of record on August 11, 2000. If the merger with Lockheed Martin Corporation closes prior to the record date, the dividend will be paid only to Lockheed Martin. Some of the statements in this news release are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and relate to anticipated future operating results. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are based on COMSAT management's current expectations and assumptions, which may be affected by the timing and outcome of pending or prospective regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. actions, by the proposed merger of the corporation with Lockheed Martin Corporation, by developments affecting the value of the Corporation's ownership interest in INTELSAT, Inmarsat and New Skies, by international business conditions (e.g., foreign currency devaluation Currency devaluation A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold. and economic instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability in foreign markets), and by other subsequent developments and business conditions, and necessarily involve risks and uncertainties. Therefore, there can be no assurance that actual future results will not differ materially from anticipated results. Readers should refer to COMSAT'S disclosure documents filed with the Securities and Exchange Commission, including the corporation's recent Forms 10-K and 10-Q for specific details on some of the factors that may affect operating results. COMSAT expressly disclaims any obligation to update forward looking statements. COMSAT Corporation (NYSE: CQ) is a global provider of satellite services and digital networking services, products, and technology.
COMSAT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions)
June 30, December 31,
2000 1999
-------- ------------
Current assets:
Cash $ 57.6 $ 78.6
Receivables 145.8 150.0
Other current assets 19.2 62.0
----------- ----------
Total current assets 222.6 290.6
Property and equipment, net 939.1 912.5
Investments 362.3 327.7
Other assets 126.9 120.9
----------- ----------
Total assets $ 1,650.9 $ 1,651.7
=========== ==========
Current liabilities:
Current maturities of
long-term debt $ 75.8 $ 0.8
Other current
liabilities 129.0 148.9
----------- ----------
Total current
liabilities 204.8 149.7
Long-term debt 339.6 409.0
Other noncurrent
liabilities 283.6 295.3
Preferred securities issued
by subsidiary 200.0 200.0
Stockholders' equity 622.9 597.7
----------- ----------
Total liabilities &
stockholders' equity $ 1,650.9 $ 1,651.7
=========== ==========
COMSAT CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
(In millions, except per share amounts)
For the Quarter For the Six Months
Ended Ended
June 30, June 30,
-------- --------
2000 1999 2000 1999
---- ---- ---- ----
Revenues $ 168.8 $ 155.9 $ 340.2 $ 300.4
--------- --------- --------- ---------
Operating expenses:
Cost of services 96.8 83.0 187.8 163.5
Depreciation and
amortization 39.0 43.9 77.8 86.4
Research and
development 1.5 2.2 3.8 3.9
General and
administrative 8.4 6.7 14.4 11.9
Merger costs 1.6 2.1 2.9 3.9
--------- --------- --------- ---------
Total operating
expenses 147.3 137.9 286.7 269.6
--------- --------- --------- ---------
Operating income 21.5 18.0 53.5 30.8
Other income
(expense), net (0.9) 14.0 9.4 31.1
Interest costs, net
of amounts
capitalized (8.8) (9.6) (17.4) (19.4)
--------- --------- --------- ---------
Income before taxes 11.8 22.4 45.5 42.5
Income tax expense (5.2) (10.4) (17.9) (18.5)
--------- --------- --------- ---------
Net income $ 6.6 $ 12.0 $ 27.6 $ 24.0
========= ========= ========= =========
Earnings per common
share:
Basic $ 0.12 $ 0.23 $ 0.52 $ 0.46
Assuming dilution $ 0.12 $ 0.22 $ 0.52 $ 0.45
Average
shares-basic 53.2 52.6 53.1 52.5
Average
shares-assuming
dilution 53.7 53.8 53.5 53.7
COMSAT CORPORATION
OPERATING RESULTS BY BUSINESS SEGMENT (UNAUDITED)
(In millions)
2000
---------------------------------------
QTR 1 QTR 2 TOTAL
---------------------------------------
Revenues
--------
Satellite
Services
World
Systems $ 99.1 $ 97.4 $ 196.5
Mobile
Communications 29.8 27.0 56.8
---------------------------------------
Total 128.9 124.4 253.3
International 28.3 29.8 58.1
Laboratories 11.9 11.7 23.6
Eliminations
and other 2.3 2.9 5.2
---------------------------------------
Total $ 171.4 $ 168.8 $ 340.2
=======================================
1999
-----------------------------------------------
QTR 1 QTR 2 QTR 3 QTR 4 TOTAL
-----------------------------------------------
Satellite
Services
World
Systems $ 78.9 $ 86.3 $ 87.1 $ 90.6 $ 342.9
Mobile
Communications 29.7 30.9 30.8 31.6 123.0
-----------------------------------------------
Total 108.6 117.2 117.9 122.2 465.9
International 27.7 27.7 25.8 27.4 108.6
Laboratories 9.9 13.3 14.3 16.6 54.1
Eliminations
and other (1.7) (2.3) (2.3) (4.0) (10.3)
-----------------------------------------------
Total $ 144.5 $ 155.9 $ 155.7 $ 162.2 $ 618.3
===============================================
2000
----------------------------------------
QTR 1 QTR 2 TOTAL
----------------------------------------
Segment income
(loss) (1)
--------------
Satellite
Services
World Systems $ 50.4 $ 45.6 $ 96.0
Mobile
Communications (2) 6.9 5.7 12.6
----------------------------------------
Total 57.3 51.3 108.6
International (3) (6.7) (6.8) (13.5)
Laboratories (1.0) (1.7) (2.7)
----------------------------------------
Total segment
income (loss) 49.6 42.8 92.4
General and
administrative
expenses (4) (6.0) (8.4) (14.4)
Merger costs (1.3) (1.6) (2.9)
Interest costs, net
of amounts
capitalized (8.6) (8.8) (17.4)
Other income
(expense), net (5) - (12.2) (12.2)
----------------------------------------
Total (15.9) (31.0) (46.9)
----------------------------------------
Total $ 33.7 $ 11.8 $ 45.5
========================================
1999
-----------------------------------------------
QTR 1 QTR 2 QTR 3 QTR 4 TOTAL
-----------------------------------------------
Segment income
(loss) (1)
-------------
Satellite
Services
World Systems $ 29.3 $ 32.0 $ 36.9 $ 38.9 $ 137.1
Mobile
Communications (2) 4.8 4.1 (31.2) (29.9) (52.2)
-----------------------------------------------
Total 34.1 36.1 5.7 9.0 84.9
International (3) 8.8 9.5 (6.4) (11.8) 0.1
Laboratories (1.5) (0.2) (0.4) 1.3 (0.8)
-----------------------------------------------
Total segment
income (loss) 41.4 45.4 (1.1) (1.5) 84.2
General and
administrative
expenses (4) (5.2) (6.7) (6.7) (6.1) (24.7)
Merger costs (1.8) (2.1) (5.3) (1.1) (10.3)
Interest costs, net
of amounts
capitalized (9.8) (9.6) (9.1) (8.7) (37.2)
Other income
(expense), net (5) (4.5) (4.6) (3.6) (1.3) (14.0)
-----------------------------------------------
Total (21.3) (23.0) (24.7) (17.2) (86.2)
-----------------------------------------------
Total $ 20.1 $ 22.4 $ (25.8) $ (18.7) $ (2.0)
===============================================
Notes:
(1) The corporation evaluates the performance of its operating
segments based on income (loss) before taxes and interest costs.
(2) Mobile Communication's third and fourth quarter of 1999 includes
a $36.0 million and $34.6 million non-cash write-off of its
direct investment and indirect investment, respectively, in ICO
Global Communications (Holdings) Limited.
(3) International's first and second quarters of 1999 includes a
$13.1 million and $12.6 million gain, respectively, from the
sale of stock in Viatel, Inc.
(4) Includes a $3.0 million loss from the settlement of a
Supplemental Executive Retirement Plan obligation in the second
quarter of 2000.
(5) Includes an expense of $7.5 million to reserve a contingent
liability in the second quarter of 2000.
COMSAT CORPORATION
OPERATING RESULTS BY BUSINESS SEGMENT (UNAUDITED)
(In millions)
2000
-----------------------------
QTR 1 QTR 2 TOTAL
-----------------------------
Depreciation and
Amortization
----------------
Satellite Services
World Systems $ 22.4 $ 22.7 $ 45.1
Mobile
Communications 4.2 3.9 8.1
--------------------------------
Total 26.6 26.6 53.2
International 10.6 10.7 21.3
Laboratories 0.3 0.4 0.7
Other 1.3 1.3 2.6
--------------------------------
Total $ 38.8 $ 39.0 $ 77.8
================================
1999
------------------------------------------
QTR 1 QTR 2 QTR 3 QTR 4 TOTAL
------------------------------------------
Depreciation and
Amortization
----------------
Satellite Services
World Systems $ 26.2 $ 27.5 $ 22.8 $ 21.8 $ 98.3
Mobile
Communications 5.1 5.0 4.8 4.8 19.7
--------------------------------------------
Total 31.3 32.5 27.6 26.6 118.0
International 9.8 10.0 9.9 10.9 40.6
Laboratories 0.3 0.3 0.3 0.4 1.3
Other 1.1 1.1 1.3 1.4 4.9
--------------------------------------------
Total $ 42.5 $ 43.9 $ 39.1 $ 39.3 $ 164.8
============================================
2000
---------------------------
QTR 1 QTR 2 TOTAL
---------------------------
EBITDA
Satellite Services
World Systems $ 71.5 $ 66.6 $ 138.1
Mobile
Communications 5.1 4.4 9.5
------------------------------
Total 76.6 71.0 147.6
International 2.4 1.8 4.2
Laboratories (0.7) (1.3) (2.0)
Other (7.5) (11.0) (18.5)
------------------------------
Total $ 70.8 $ 60.5 $ 131.3
==============================
1999
-----------------------------------------
QTR 1 QTR 2 QTR 3 QTR 4 TOTAL
-----------------------------------------
EBITDA
Satellite Services
World Systems $ 54.8 $ 58.6 $ 59.1 $ 60.2 $ 232.7
Mobile
Communications 4.1 5.9 4.9 4.2 19.1
--------------------------------------------
Total 58.9 64.5 64.0 64.4 251.8
International 4.6 6.2 3.0 (2.8) 11.0
Laboratories (1.2) 0.2 (0.1) 1.7 0.6
Other (7.0) (9.0) (12.0) (8.5) (36.5)
--------------------------------------------
Total $ 55.3 $ 61.9 $ 54.9 $ 54.8 $ 226.9
============================================
Note:
EBITDA (earnings before interest, taxes, depreciation and
amortization) is calculated by adding depreciation, amortization and
operating income (loss). Other includes G&A expenses, merger costs and
Other from the Segment income (loss) section.
Financial Highlights Second Quarter 2000 SUMMARY Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues in the second quarter were $168.8 million, up $12.9 million or 8% from the same period of 1999. Revenue grew in COMSAT World Systems and COMSAT International. Those increases were partially offset by lower revenues in COMSAT Mobile Communications and COMSAT Laboratories. Net income for the second quarter was $6.6 million ($0.12 per fully diluted share), versus $12.0 million ($0.22 per share) for the same period of 1999. The second quarter 2000 results include the establishment of a $7.5 million reserve related to an investigation of Electromechanical Systems, Inc., COMSATs subsidiary in Largo, Florida, by the U.S. Attorneys office in Tampa Tampa (tăm`pə), city (1990 pop. 280,015), seat of Hillsborough co., W Fla., a port of entry with an impressive harbor on Tampa Bay; inc. 1855. . Second quarter 1999 results included a $12.6 million gain from the sale of stock in Viatel, Inc. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
BUSINESS SEGMENT INFORMATION The corporation reports operating results and financial data in four segments: COMSAT World Systems (CWS), COMSAT Mobile Communications (CMC), COMSAT International (CI) and COMSAT Laboratories (Labs). The corporation evaluates the performance of its operating segments based on segment income (loss) before taxes and interest costs. COMSAT SATELLITE SERVICES World Systems revenues were up 13% in the second quarter to $97.4 million, compared to the same period in 1999. Growing demand for Internet services and other high-speed data traffic, and higher ownership in INTELSAT were the primary revenue drivers. The growth was partially offset by a slight decline in traditional voice communications. Segment income for the quarter increased $13.6 million from the same period in 1999 to $45.6 million. Four factors influenced the increase: revenue growth, reversal of a reserve related to space segment usage charges, higher ownership in INTELSAT, and the extension of the depreciable lives of INTELSAT satellites in the third quarter of 1999. EBITDA increased 14% in the quarter to $66.6 million, compared with the respective period in 1999. EBITDA margin was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 68% for the second quarter of 2000, unchanged from the same period in 1999. Mobile Communications revenues were $27.0 million, down $3.9 million from the same quarter last year. The revenue decrease was principally due to lower analog telephone revenues, which was offset in part by increased revenue from the U.S. Navy IT-21 contract. Second-quarter segment income was $5.7 million, versus $4.1 million reported in the second quarter of 1999. The increase in segment income was due to greater equity income from CMCs investment in Inmarsat. CMCs EBITDA was $4.4 million in the quarter versus $5.9 million in the same quarter of 1999. EBITDA was affected by lower operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. . COMSAT INTERNATIONAL COMSAT International revenue increased in the second quarter to $29.8 million, compared with $27.7 million in the same period in 1999. Revenue increases in Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. and Turkey were partially offset by lower revenues in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. and Colombia Colombia (kəlŭm`bēə, Span. kōlōm`byä), officially Republic of Colombia, republic (2005 est. pop. 42,954,000), 439,735 sq mi (1,138,914 sq km), NW South America. Bogotá is the capital and largest city. in the quarter. CI's EBITDA was $1.8 million in the second quarter of 2000, compared with $6.2 million in the same period last year. EBITDA margin for the second quarter was 6%, a decrease from 22% in the second quarter of 1999. CI's segment loss for the second quarter of 2000 was $6.8 million, compared to segment income of $9.5 million for the same period in 1999. Excluding a $12.6 million gain from the sale of stock in Viatel, Inc., CI had a segment loss of $3.1 million in the second quarter of 1999. The increased segment loss is primarily the result of higher losses in Brazil and Colombia.
COMSAT International
OPERATING COMPANIES INFORMATION (UNAUDITED)
(In millions)
2000 1999
------------------------ ------------------------
QTR 1 QTR 2 YTD QTR 1 QTR 2 YTD
Revenues
--------
Americas $ 25.7 $ 25.6 $ 51.3 $ 25.7 $ 25.2 $ 50.9
Asia/Europe 2.6 4.2 6.8 2.0 2.5 4.5
------------------------ ------------------------
Total
Revenues $ 28.3 $ 29.8 $ 58.1 $ 27.7 $ 27.7 $ 55.4
======================== ========================
EBITDA
------
Americas $ 5.6 $ 4.2 $ 9.8 $ 8.2 $ 8.3 $ 16.5
Asia/Europe (0.4) (0.0) (0.4) (0.5) (0.1) (0.6)
------------------------ ------------------------
EBITDA
before CI
Corporate 5.2 4.2 9.4 7.7 8.2 15.9
CI Corporate (2.8) (2.4) (5.2) (3.1) (2.0) (5.1)
------------------------ ------------------------
Total EBITDA $ 2.4 $ 1.8 $ 4.2 $ 4.6 $ 6.2 $ 10.8
======================== ========================
Notes:
1. Americas include Argentina (100%), Brazil (100%), Colombia
(100%), Guatemala (100%), and Venezuela (100%). Asia/Europe
includes BelCom (100%), China (64%), Turkey IBS (100%), and
Turkey VSAT (64%). Numbers in parenthesis indicate COMSAT
ownership.
2. CI share of India revenue not consolidated for accounting
purposes is: $0.9 million and $2.2 million 2Q00 and YTD00,
respectively, and $1.0 million and $2.2 million, 2Q99 and
YTD99, respectively.
3. EBITDA (earnings before interest, taxes, depreciation and
amortization) is calculated by adding depreciation and
amortization, impairment of long-lived assets and operating
income (loss).
COMSAT LABORATORIES COMSAT Laboratories revenues were down 12% in the quarter to $11.7 million, compared with the same period of 1999, due to lower sales of its technical consulting and product businesses. The segment loss for the quarter was $1.7 million versus a segment loss of $200,000 in the same period in 1999 because of increased losses in the Labs communication products business. ELIMINATIONS AND OTHER Electromechanical Systems, Inc. (EMS Ems, town, Germany Ems or Bad Ems (bät ĕms), town (1994 pop. 10,130), Rhineland-Palatinate, W Germany, on the Lahn River. ) was included in discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. prior to 2000. Beginning in 2000, EMS results are reported in continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the as part of Eliminations and Other. COMSAT CONSOLIDATED General & Administrative expenses totaled $8.4 million in the second quarter of 2000, up from $6.7 million in the second quarter of 1999. The second quarter of 2000 results include a $3.0 million loss from the settlement of a Supplemental Executive Retirement Plan obligation. Merger Costs in the second of 2000 were $1.6 million, compared to $2.1 million in the same period of 1999. These costs are related to the proposed merger with Lockheed Martin Corporation. Research & Development expenses in the second quarter totaled $1.5 million, versus $2.2 million in the second quarter of 1999. Other Income (Expense), net for the quarter was expense of $900,000, compared with income of $14.0 million in same quarter in 1999. An increase in second quarter 2000 equity income was offset by a $7.5 million expense to reserve a contingent liability Contingent Liability 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. Notes: 1. . The second quarter of 1999 included a $12.6 million gain from the sale of Viatel, Inc. stock. Interest Costs, Net of Amounts Capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. in the second quarter of 2000 was $8.8 million versus $9.6 million in the same period in 1999. Income Tax Expense for the quarter was $5.2 million versus an expense of $10.4 million in the same quarter of 1999. The effective tax rate for the second quarter of 2000 was 44% compared to 46% for the second quarter of 1999. Weighted Average Shares Outstanding were 53.7 million for the second quarter of 2000, compared to 53.8 million for the second quarter of 1999. CASH AND LIQUIDITY Cash and Cash Equivalents totaled $57.6 million at the end of the second quarter of 2000, compared with $78.6 million at the end of 1999. Current Maturities of Long-Term Debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. increased from $800,000 at December December: see month. 31, 1999 to $75.8 million on June 30, 2000 due to reclassifying COMSATs $75 million, 8.95% notes due 2001 from long-term debt. Long-term Debt decreased to $339.6 million as of June 30, 2000 from $409.0 million as of December 31, 1999 due to the reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. described above. The decrease was partially offset by the increased investment in the INTELSAT system which boosted the companys pro-rata Pro-rata Used to describe a proportionate allocation. Notes: For example, a pro-rata dividend means that every shareholder gets an equal proportion for each share they own. See also: Dividend share of INTELSATs long-term debt. |
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