EchoStar Corporation (SATS) has reported a 17.33 percent rise in profit for the year ended Dec. 31, 2016. The company has earned $179.93 million, or $1.92 a share in the year, compared with $153.36 million, or $1.75 a share for the last year.
Revenue during the year went down marginally by 2.77 percent to $3,056.73 million from $3,143.71 million in the previous year. Gross margin for the year expanded 63 basis points over the previous year to 43.22 percent. Total expenses were 88.08 percent of annual revenues, down from 88.67 percent for the last year. This has led to an improvement of 60 basis points in operating margin to 11.92 percent.
Operating income for the year was $364.40 million, compared with $356.03 million in the previous year.
Operating cash flow improves marginally
EchoStar Corporation has generated cash of $803.34 million from operating activities during the year, up 3.46 percent or $26.89 million, when compared with the last year.
The company has spent $632.27 million cash to meet investing activities during the year as against cash outgo of $275.31 million in the last year.
Cash flow from financing activities was $1,475.69 million for the year as against cash outgo of $120.26 million in the last year period.
Cash and cash equivalents stood at $2,571.14 million as on Dec. 31, 2016, up 178.19 percent or $1,646.90 million from $924.24 million on Dec. 31, 2015.
Working capital increases sharply
EchoStar Corporation has recorded an increase in the working capital over the last year. It stood at $3,191.85 million as at Dec. 31, 2016, up 98.64 percent or $1,585.02 million from $1,606.83 million on Dec. 31, 2015. Current ratio was at 7.01 as on Dec. 31, 2016, up from 4.05 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 20 days for the year from 22 days for the last year. Days sales outstanding went up to 55 days for the year compared with 51 days for the same period last year.
Days inventory outstanding has decreased to 8 days for the year compared with 14 days for the previous year period. At the same time, days payable outstanding was almost stable at 42 days for the year, when compared with the previous year period.
Debt increases substantially
EchoStar Corporation has witnessed an increase in total debt over the last one year. It stood at $3,660.19 million as on Dec. 31, 2016, up 66.95 percent or $1,467.82 million from $2,192.36 million on Dec. 31, 2015. Total debt was 40.63 percent of total assets as on Dec. 31, 2016, compared with 30.28 percent on Dec. 31, 2015. Debt to equity ratio was at 0.91 as on Dec. 31, 2016, up from 0.58 as on Dec. 31, 2015. Interest coverage ratio improved to 2.95 for the year from 2.92 for the same period last year.
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