 |
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| November 14, 2000 |
|
| Operating Results for the 2nd Quarter ended September 30, 2000 |
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| (¥ Millions) |
Results of operations and other financial data for the second quarter of JSAT Corporation's current fiscal year, the three-month period ended September 30, 2000, are as follows.
| 1) |
Financial Highlights (unaudited) |
| 2) |
Overview of Operations |
| 3) |
Net Income |
| 4) |
Cash Flows |
| 5) |
Summaries of the Financial Statements Based on U.S. GAAP (unaudited) |
| 6) |
Results Based on Accounting Principles Generally Accepted in Japan |
1) Financial Highlights (unaudited)
| Three months ended |
Sep 30, 2000
¥ Million
|
Sep 30, 1999
¥ Million
|
Change
%
|
June 30, 2000
¥ Million
|
| Revenues |
9,447 |
6,416 |
+47.2 |
9,042 |
| Operating Income |
2,848 |
1,680 |
+69.5 |
2,709 |
| Net Income |
965 |
450 |
+114.4 |
1,611 |
| Total assets |
168,917 |
107,745 |
+56.8 |
138,446 |
| Shareholders' equity |
86,468 |
21,917 |
+294.5 |
55,918 |
| Operating cash flows |
6,170 |
3,729 |
+65.5 |
5,610 |
| EBITDA |
6,599 |
4,233 |
+55.9 |
6,454 |
| EBITDA margin |
69.9% |
66.0% |
+3.9 |
71.4% |
| Net income per share |
¥ 2,632.22 |
¥ 1,636.12 |
+60.9 |
¥ 4,764.27 |
|
Notes:
| 1. |
EBITDA is the sum of operating income and depreciation and amortization. |
| 2. |
The EBITDA margin is the ratio of EBITDA to revenues. |
| 3. |
Net income per share is computed based on the weighted average number of shares outstanding during the applicable period. Figures are adjusted to reflect a 2-to-1 stock split in January 2000. |
2) Overview of Operations
Second quarter revenues increased 47.2% to ¥9,447 million compared with the same quarter of the previous year. Revenues from telecommunications carrier services increased by 259.0% to ¥2,183 million compared with the same quarter of the previous year. This was mainly the result of the contribution of revenues from the N-STARa and N-STARb satellites that JSAT purchased a majority interest in from NTT Communication Corporation. Revenues from satellite broadcasting services, which mainly represent fees paid by companies that broadcast their channels using the SKY PerfecTV! platform, rose by 24.0% to ¥4,202 million. This was mainly due to the increase in the number of SKY PerfecTV! channels in this quarter and the increase in fees for capacity under the four annual-step tariff. Revenues from telecommunications business services also increased by 21.9% to ¥2,949 million mainly due to an increased number of users including users of international telecommunications business services. Revenues far each services are as follows.
| Three months ended |
Sep 30, 2000
¥ Million
|
Sep 30, 1999
¥ Million
|
Change
%
|
June 30, 2000
¥ Million
|
| Telecommunications business
services |
2,949 |
2,419 |
+21.9 |
2,854 |
| Satellite broadcasting
services |
4,202 |
3,388 |
+24.0 |
3,661 |
| Telecommunications carrier
services |
2,183 |
608 |
+259.0 |
2,374 |
| Others |
112 |
- |
- |
152 |
| Total |
9,447 |
6,416 |
+47.2 |
9,042 |
|
3) Net Income
Net income in the second quarter increased by 114.4% to ¥965 million compared with ¥450 million in the same quarter of the previous year, reflecting growth in operating income as well as operating revenues. Net income in the first quarter of this year includes a gain of ¥842 million on sales of investment securities. Net income per share rose 60.9% from ¥1,636.12 to ¥2,632.22.
4) Cash Flows
Net cash provided by operating activities in this quarter increased by 65.5% to ¥6,170 million, compared with ¥3,729 million in the same quarter of the previous year, reflecting growth of revenue as well as net income. Net cash used in investing activities was ¥34,555 million compared with ¥1,632 million in the same quarter of the previous year. This large increase includes capital expenditure for two satellites JCSAT-110 (launched from the Arianespace launch site in French Guiana at 8:00am Japan Standard Time on October 7, 2000) and JCSAT-2A (to be launched in December 2001 or later) and payments for purchases of short-term investments. Net cash provided by financing activities was ¥21,030 million, mostly due to the new issue of common stock on August 4, 2000 in the initial public offering. The net proceeds from this offering were ¥29,925 million.
JSAT acquired an equity interest of 20% in Pay Per View Japan (PPVJ), a joint venture company engaged in pay-per-view broadcasting using the SKY PerfecTV! platform. PPVJ is the largest licensed broadcaster and currently operates 21 pay-per-view channels using the SKY PerfecTV! platform. Following this acquisition, JSAT and SKY Perfect Communications are the two leading shareholders of PPVJ. In addition, JSAT made an additional investment of ?_804 million in NTT Satellite Communications (NTTSC) which provides satellite based Internet and intranet services in Japan. NTTSC began trial testing on an IP multicasting service, MegaWave Select, in June 2000. The MegaWave Select service transmit SKY PerfecTV! content and other IP-based content to personal computers by satellite with interactive functions delivered through terrestrial connections. JCSAT-110, expected to provide more value-added broadcasting services late in fiscal 2001, finished its in-orbit test in early November. JSAT and SKY Perfect Communications have applied for a license through Multi-channel Entertainment, jointly established by both companies, to participate in the new CS digital multi-channel platform using JCSAT-110.
5) Summaries of the Financial Statements Based on U.S. GAAP (unaudited)
Summary of the Balance Sheets
| (¥ Millions) |
| |
Sep 30,
2000 |
Sep 30,
1999 |
March
31, 2000 |
| Assets |
|
|
|
| Current assets |
35,866 |
9,601 |
9,320 |
| Investments |
5,841 |
4,007 |
6,213 |
| Property and equipment |
122,990 |
91,740 |
121,218 |
| Other assets |
4,220 |
2,397 |
3,349 |
| Total assets |
168,917 |
107,745 |
140,100 |
Liabilities and
shareholders' equity |
|
|
|
| Current liabilities |
23,024 |
14,346 |
20,635 |
| Long-term liabilities |
59,426 |
71,482 |
64,453 |
| Common stock |
53,770 |
27,526 |
43,251 |
| Additional paid-in capital |
35,008 |
- |
15,661 |
| Accumulated deficit |
(3,017) |
(7,512) |
(5,593) |
| Accumulated other comprehensive
income |
707 |
1,904 |
1,693 |
| Total shareholders' equity |
86,468 |
21,917 |
55,012 |
| Total |
168,917 |
107,745 |
140,100 |
|
Summary of the Income Statements
| (¥ Millions) |
| |
Three months ended |
Change |
Three months ended |
| Sep 30, 2000 |
Sep 30, 1999 |
Jun 30, 2000 |
| Revenues |
9,447 |
6,416 |
+47.2 |
9,042 |
| Operating expenses |
6,599 |
4,735 |
+39.4 |
6,333 |
| Operating income |
2,848 |
1,680 |
+69.5 |
2,709 |
| Other income (expenses) |
(636) |
(619) |
+2.7 |
234 |
| Income before income taxes |
2,212 |
1,061 |
+108.5 |
2,943 |
| Income taxes |
1,247 |
611 |
+104.1 |
1,332 |
| Net income |
965 |
450 |
+114.4 |
1,611 |
|
Summary of the Cash Flow Statements
| (¥ Millions) |
| |
Three months ended |
| Sep 30, 2000 |
Sep 30, 1999 |
Jun 30, 2000 |
| 1.Operating activities |
6,710 |
3,729 |
5,610 |
| 2.Investing activities |
(34,555) |
(1,632) |
(2,147) |
| 3.Financing activities |
21,030 |
(2,207) |
(3,618) |
|
6) Results Based on Accounting Principles Generally Accepted in Japan
Financial Highlights Based on Japanese GAAP
| Three months ended |
Sep 30, 2000
¥ Million
|
Sep 30, 1999
¥ illion
|
Change
%
|
June 30, 2000
¥ Million
|
| Revenues |
9,447 |
6,416 |
+47.2 |
9,042 |
| Operating income |
2,860 |
1,725 |
+65.8 |
2,728 |
| Ordinary income |
2,236 |
1,165 |
+91.9 |
2,213 |
| Net income |
1,059 |
1,392 |
(23.9) |
1,755 |
| |
|
|
|
|
| Total Assets |
171,394 |
106,552 |
+60.9 |
139,127 |
| Shareholders' equity |
89,064 |
20,717 |
+329.9 |
57,370 |
| |
|
|
|
|
| Operating cash flows |
6,134 |
3,711 |
+65.3 |
5,573 |
| |
|
|
|
|
| EBITDA |
6,615 |
4,294 |
+54.1 |
6,477 |
| EBITDA Margin |
70.0% |
66.9% |
+3.1 |
71.6% |
| |
|
|
|
|
| Net income per share |
¥2,890.23 |
¥2,529.26 |
+14.3 |
¥5,190.25 |
|
Notes:
| 1. |
EBITDA is the sum of operating income and depreciation and amortization. |
| 2. |
The EBITDA margin is the ratio of EBITDA to revenues. |
| 3. |
Net income per share is computed based on the weighted average number of shares outstanding during the applicable period. In January 2000, JSAT conducted a 2-to-1 stock split. Under Japanese GAAP, net income per share for the three months ended September 30, 1999 is calculated based on the number of shares outstanding prior to this split. |
Summaries of the Financial Statements Based on Japanese GAAP (unaudited)
Summary of the Balance Sheets
| (¥ Millions) |
| |
Sep 30,
2000 |
Sep 30,
1999 |
June 30,
2000 |
| Assets |
|
|
|
| Current assets |
35,798 |
8,279 |
8,686 |
| Property and equipment |
135,595 |
98,273 |
131,511 |
| Deferred assets |
- |
- |
74 |
| Total assets |
171,394 |
106,552 |
140,271 |
| Liabilities and Shareholders' equity |
|
|
|
| Current liabilities |
22,881 |
14,142 |
20,374 |
| Long-term liabilities |
59,449 |
71,693 |
64,282 |
| Common stock |
53,770 |
27,526 |
43,251 |
| Additional paid-in capital |
31,770 |
- |
15,725 |
| Retained earnings (Accumlated deficit) |
2,814 |
(6,809) |
(3,361) |
| Unrealized gains on securities |
709 |
- |
- |
| Total Shareholders' equity |
89,064 |
20,717 |
55,615 |
| Total |
171,394 |
106,552 |
140,271 |
|
Summary of the Income Statements
| (¥ Millions) |
| |
Three months ended |
Change |
Three months ended |
| Sep 30, 2000 |
Sep 30, 1999 |
Jun 30, 2000 |
| Revenues |
9,447 |
6,416 |
+47.2 |
9,042 |
| Operating expenses |
6,588 |
4,691 |
+40.4 |
6,314 |
| Operating income |
2,860 |
1,725 |
+65.8 |
2,728 |
| Other income (expense) |
(623) |
(559) |
+11.4 |
(515) |
| Ordinary income |
2,236 |
1,165 |
+91.9 |
2,213 |
| Extraordinary income(expense) |
(1) |
230 |
- |
842 |
| Income before income taxes |
2,234 |
1,395 |
+60.1 |
3,055 |
| Income taxes |
1,175 |
3 |
- |
1,300 |
| Net income |
1,059 |
1,392 |
(23.9) |
1,755 |
|
Summary of the Cash Flow Statements
| (¥ Millions) |
| |
Three months ended |
| Sep 30, 2000 |
Sep 30, 1999 |
Jun 30, 2000 |
| 1.Operating activities |
6,134 |
3,711 |
5,573 |
| 2.Investing activities |
(34,536) |
(1,618) |
(2,128) |
| 3.Financing activities |
28,214 |
(2,203) |
(3,601) |
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