PanAmSat’s Revenues Slipped As Cost-Cutting Accelerates
While 2002 revenues slipped, PanAmSat Corp.‘s [Nasdaq: SPOT] cost-cutting during the past year helped the company to achieve slightly improved profitability, company officials reported Tuesday. The company posted 2002 revenues of $812.3 million, earnings before interest expense, income taxes, depreciation and amortization (EBITDA) of $591.6 million, and earnings per share (EPS) of $0.57. This compares with revenues of $870.1 million, EBITDA of $580.1 million, and EPS of $0.20 per share for 2001.
PanAmSat’s CEO and President Joseph Wright said the end of 2002 marked the completion of a financial turnaround beginning in mid-2001. PanAmSat cut its operating costs by 24 percent and its capital expenses by 13 percent. Those scaled back operating costs helped attain a 37 percent increase in free cash flow during 2002 to $460.9 million