Intelsat, Ltd. (Exact Name of Registrant As Specified in Charter)
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SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): August 12, 2009 Intelsat, Ltd. (Exact Name of Registrant as Specified in Charter) Bermuda 000-50262 98-0346003 (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification Number) Wellesley House North, 2nd Floor, 90 Pitts Bay Road, Pembroke, Bermuda HM 08 (Address of Principal Executive Offices) (Zip Code) (441) 294-1650 Registrant’s telephone number, including area code n/a (Former Address, If Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition On August 12, 2009, Intelsat, Ltd. issued a press release entitled “Intelsat Reports Second Quarter 2009 Results.” A copy of such press release is furnished as an exhibit to this Current Report on Form 8-K. Item 9.01 Financial Statements and Exhibits (d) Exhibits 99.1 Press Release dated August 12, 2009 entitled “Intelsat Reports Second Quarter 2009 Results” -2- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: August 12, 2009 INTELSAT, LTD. By: /s/ Michael McDonnell Name: Michael McDonnell Title: Executive Vice President and Chief Financial Officer -3- EXHIBIT INDEX Exhibit Number Description 99.1 Press Release dated August 12, 2009 entitled “Intelsat Reports Second Quarter 2009 Results” Exhibit 99.1 News Release 2009-27 Contact Dianne VanBeber Vice President, Investor Relations and Communications [email protected] +1 202 944 7406 Intelsat Reports Second Quarter 2009 Results Second Quarter 2009 Revenue of $642 Million Advances 10 Percent as Compared to Prior Year Period Pembroke, Bermuda, 12 August 2009 Intelsat, Ltd., the world’s leading provider of fixed satellite services, today reported results for the three months and six months ended June 30, 2009. Intelsat, Ltd. reported revenue of $642.5 million and a net loss of $32.7 million for the three months ended June 30, 2009. The company also reported Intelsat, Ltd. EBITDAi, or earnings before net interest, loss on early extinguishment of debt, taxes and depreciation and amortization, of $522.4 million, and New Bermuda Adjusted EBITDAi of $502.7 million, or 78 percent of revenue, for the three months ended June 30, 2009. Intelsat, Ltd. reported revenue of $1.274 billion and a net loss of $590.4 million for the six months ended June 30, 2009. The net loss reflects in part non-cash charges of $499.1 million incurred in the first quarter of 2009 for orbital location impairments. The company also reported Intelsat, Ltd. EBITDAi of $498.1 million and New Bermuda Adjusted EBITDAi of $997.2 million, or 78 percent of revenue, for the six months ended June 30, 2009. “Intelsat’s record Adjusted EBITDA in the second quarter of 2009 surpassed the $500 million level for the first time, reflecting attractive revenue growth and solid execution on cost management,” said Intelsat CEO Dave McGlade. “Our network services business and Intelsat General Corporation government business are thriving as a result of the demand for the communications infrastructure we provide for applications such as broadband networking, cellular backhaul, and mobility.” “In the second quarter we entered into a significant long-term renewal in our media business, underscoring the value of our satellite neighborhoods and contributing to an increase in our backlog to $9.5 billion at June 30, 2009 from $8.7 billion at the end of the first quarter,” McGlade continued. “This growth in backlog reinforces the overall strength of our business across our customer sets, while also providing attractive visibility on future revenues and cash flows.” Intelsat, Ltd. Wellesley House North, 2nd Floor, 90 Pitts Bay Road, Pembroke, HM 08, Bermuda www.intelsat.com T +1 441-294-1650 F +1 441-292-8300 Business Highlights • Intelsat continued to build the value of its regional media neighborhoods. African direct-to-home (DTH) television services provider, Multichoice, signed a long-term agreement for satellite capacity, extending and expanding its existing agreement on the Intelsat 7 satellite at 68.5 degrees East Longitude to the follow-on satellite, Intelsat 20, which is expected to be launched in early 2012. • Broadcasters continue to convert programming to the high definition (HD) standard. Asian broadcaster, NHK Global Media Services, Inc., renewed and expanded its agreement with Intelsat in order to roll out its news and entertainment programming in HD to the markets it serves around the world. Intelsat carries NHK’s signals on three of its satellites and through three of its teleports. • Intelsat’s network services business continued to reflect the demand from wireless operators for satellite-based infrastructure to support cellular networks. In the second quarter Intelsat signed agreements with Hughes Telecomunicacoes do Brasil and Intelig Telecomunicacoes Ltda. in South America, and with leading Senegal services provider, Sonatel, for cellular backhaul applications in Africa. • Corporate data networking applications and the need for broadband connectivity continue to drive demand for capacity from Intelsat’s network services business. In the second quarter of 2009, Intelsat expanded its current relationship with African corporate networking provider, Afsat Communications Limited, entering into a new agreement for service on the Galaxy 11 satellite and then the New Dawn satellite when it goes into service in 2011. • Intelsat’s eleven satellite construction and launch programs continue to progress. With respect to the two satellites expected to launch in 2009, the company indicated that the launch of Intelsat 14 is delayed to the fourth quarter, postponing the start of services for that satellite. The second 2009 launch, Intelsat 15, is scheduled for a Land Launch mission in the fourth quarter of 2009. The Land Launch mission is one of three committed launches for which Intelsat has contracted and paid deposits through Sea Launch, which filed for bankruptcy protection in June 2009. • Intelsat’s system average fill rate on its approximately 2,050 station-kept transponders was 85 percent at June 30, 2009. 2 Financial Results for the Three Months Ended June 30, 2009 Revenue for the three months ended June 30, 2009 increased by $57.6 million, or 10 percent, to $642.5 million as compared to $584.9 million for the three months ended June 30, 2008. New business, strong renewals, expansion of existing contracts and improved contract terms contributed to the overall favorable trends. Also reflected in the period was revenue of $21.9 million earned from the re-sale of a launch vehicle and related services, a business which we do not currently intend to pursue in the future. By service type, revenue increased or decreased due to the following: • Transponder services—an aggregate increase of $31.8 million, due primarily to a $19.9 million increase in revenue from network services customers, resulting from new business and strong renewals, primarily in the Latin America and Caribbean, the Europe and the Africa and Middle East regions, and a $12.6 million increase in revenues resulting from new services and strong renewals sold primarily to North American customers of the Intelsat General business, a portion of which was related to capacity resold from third parties. • Managed services—an aggregate increase of $4.0 million, due primarily to a $3.0 million increase in revenue from network services customers, resulting from new business and contract expansions in trunking and private line solutions and broadband services, primarily in the Africa and Middle East and the Europe regions, and a $1.7 million increase in revenue from customers of the Intelsat General business in the North America region. • Channel—a decrease of $2.0 million related to continued declines from the migration of point-to-point satellite traffic to fiber optic cables across transoceanic routes and the optimization of customer networks, a trend that we expect will continue. • Mobile satellite services and other—an aggregate increase of $23.8 million, primarily due to increased revenues from professional and technical services performed for satellite operators and other satellite-related services customers, including $16.9 million in increased revenue from the completion of a re-sale of a launch vehicle during the second quarter of 2009, and $3.7 million and $2.3 million in increased revenue from sales of third-party usage-based mobile services and customer premises equipment, respectively, to customers of the Intelsat General business. Total operating expenses for the three months ended June 30, 2009 increased by $10.6 million, or 3 percent, to $325.5 million as compared to $314.9 million for the same period in 2008. In addition to the changes related to the line items discussed below, unrealized gains on derivative financial instruments of $52.1 million decreased by $47.3 million as compared to $99.4 million in the second quarter of 2008. The resulting increase in operating expenses was more than offset by the absence of any impairment in asset value in the second quarter of 2009, as compared to a $63.6 million non-cash impairment of asset value incurred in the second quarter of 2008.