Littleton, Colo. – EchcStar Communications posted a $129 million profit on sales of $1.4 billion for the second quarter, ended June 30, and added 270,000 new subscribers during that period.
These figures were up from the same period last year when the company reported a $31 million profit on sales of $1.17 billion. EchoStar’s 2003 second quarter ended on June 30. The company’s DISH Network now has 8.8 million subscribers.
EchoStar’s free cash flow also rose during the quarter to $151 million, up from $33 million in 2002. The company defines free cash flow as net cash flows from operating activities less purchases of property and equipment. The company considers free cash flow an important financial yardstick because it measures the amount of cash generated, during a given perid, that is available for debt obligations and investments other than purchases of property and equipment.
The company said the quarter’s profit was due, in part, to two legal settlements. One was a one-time favorable legal resolution totaling about $10 million and another $34 million related to the receipt of reimbursement payment for set-top box equipment pursuant to a litigation settlement.