Globalstar Announces 2018 Fourth Quarter and Annual Results
FOURTH QUARTER FINANCIAL REVIEW
Revenue
Total revenue for the fourth quarter of 2018 increased by
Service revenue increased
Subscriber equipment sales revenue increased
Loss from Operations
Loss from operations decreased
Net Loss
Net loss was
Adjusted EBITDA
Adjusted EBITDA for the quarters ended
ANNUAL FINANCIAL REVIEW
Revenue
Total revenue increased
Loss from Operations
Loss from operations decreased
Net Loss
Net loss was
Adjusted EBITDA
Adjusted EBITDA increased 26% to
CONFERENCE CALL
The Company will conduct an investor conference call on
Details are as follows: | ||||
Conference Call: |
5:00 p.m. ET | |||
Investors and the media are encouraged to listen to the call through the Investor Relations section of the Company's website at www.globalstar.com/corporate. If you would like to participate in the live question and answer session following the Company's conference call, please dial 1 (800) 708-4539 (US and Canada), 1 (847) 619-6396 (International) and use the participant pass code 48129163. |
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Audio Replay: | A replay of the earnings call will be available for a limited time and can be heard after 7:30 p.m. ET on February 28, 2019. Dial: 1 (888) 843-7419 (US and Canada), 1 (630) 652-3042 (International) and pass code 4812 9163#. | |||
About
Note that all SPOT products described in this press release are the
products of
For more information, visit www.globalstar.com.
Safe Harbor Language for Globalstar Releases
This press release contains certain statements that are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
current expectations and assumptions that are subject to risks and
uncertainties which may cause actual results to differ materially from
the forward-looking statements. Forward-looking statements, such as the
statements regarding our expectations with respect to the pursuit of
terrestrial spectrum authorities globally, future increases in our
revenue and profitability and other statements contained in this release
regarding matters that are not historical facts, involve predictions.
Any forward-looking statements made in this press release are believed
to be accurate as of the date made and are not guarantees of future
performance. Actual results or developments may differ materially from
the expectations expressed or implied in the forward-looking statements,
and we undertake no obligation to update any such statements. Additional
information on factors that could influence our financial results is
included in our filings with the
GLOBALSTAR, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited) |
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Three Months Ended | Twelve Months Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||
Revenue: | ||||||||||||||||||
Service revenue | $ | 27,186 | $ | 26,622 | $ | 111,089 | $ | 98,473 | ||||||||||
Subscriber equipment sales | 4,760 | 2,805 | 19,024 | 14,187 | ||||||||||||||
Total revenue | 31,946 | 29,427 | 130,113 | 112,660 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Cost of services (exclusive of depreciation, amortization and accretion shown separately below) | 9,664 | 9,697 | 37,648 | 37,022 | ||||||||||||||
Cost of subscriber equipment sales | 3,673 | 2,165 | 14,441 | 9,944 | ||||||||||||||
Cost of subscriber equipment sales - reduction in the value of inventory | — | 843 | — | 843 | ||||||||||||||
Marketing, general and administrative | 13,163 | 10,323 | 55,443 | 38,759 | ||||||||||||||
Reduction in the value of long-lived assets | — | 17,040 | — | 17,040 | ||||||||||||||
Revision to contract termination charge | — | — | (20,478 | ) | — | |||||||||||||
Depreciation, amortization and accretion | 23,853 | 19,514 | 90,438 | 77,498 | ||||||||||||||
Total operating expenses | 50,353 | 59,582 | 177,492 | 181,106 | ||||||||||||||
Loss from operations | (18,407 | ) | (30,155 | ) | (47,379 | ) | (68,446 | ) | ||||||||||
Other income (expense): | ||||||||||||||||||
Loss on extinguishment of debt | — | — | — | (6,306 | ) | |||||||||||||
Gain on equity issuance | — | — | — | 2,670 | ||||||||||||||
Interest income and expense, net of amounts capitalized | (12,596 | ) | (8,139 | ) | (43,612 | ) | (34,771 | ) | ||||||||||
Derivative gain (loss) | (64,824 | ) | 16,249 | 81,120 | 21,182 | |||||||||||||
Gain on legal settlement | — | — | 6,779 | — | ||||||||||||||
Other | (617 | ) | (559 | ) | (3,299 | ) | (3,213 | ) | ||||||||||
Total other income (expense) | (78,037 | ) | 7,551 | 40,988 | (20,438 | ) | ||||||||||||
Loss before income taxes | (96,444 | ) | (22,604 | ) | (6,391 | ) | (88,884 | ) | ||||||||||
Income tax expense (benefit) | 9 | (19 | ) | 125 | 190 | |||||||||||||
Net loss | $ | (96,453 | ) | $ | (22,585 | ) | $ | (6,516 | ) | $ | (89,074 | ) | ||||||
Loss per common share: | ||||||||||||||||||
Basic | $ | (0.07 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.08 | ) | ||||||
Diluted | (0.07 | ) | (0.02 | ) | (0.01 | ) | (0.08 | ) | ||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||
Basic | 1,287,742 | 1,251,826 | 1,269,548 | 1,166,581 | ||||||||||||||
Diluted | 1,287,742 | 1,251,826 | 1,269,548 | 1,166,581 | ||||||||||||||
GLOBALSTAR, INC. RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP ADJUSTED EBITDA (In thousands) (unaudited) |
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Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||
Net loss | $ | (96,453 | ) | $ | (22,585 | ) | $ | (6,516 | ) | $ | (89,074 | ) | |||||
Interest income and expense, net | 12,596 | 8,139 | 43,612 | 34,771 | |||||||||||||
Derivative (gain) loss | 64,824 | (16,249 | ) | (81,120 | ) | (21,182 | ) | ||||||||||
Income tax expense (benefit) | 9 | (19 | ) | 125 | 190 | ||||||||||||
Depreciation, amortization, and accretion | 23,853 | 19,514 | 90,438 | 77,498 | |||||||||||||
EBITDA | 4,829 | (11,200 | ) | 46,539 | 2,203 | ||||||||||||
Reduction in the value of inventory | — | 843 | — | 843 | |||||||||||||
Reduction in the value of long-lived assets | — | 17,040 | — | 17,040 | |||||||||||||
Non-cash compensation | 2,811 | 1,622 | 7,373 | 5,594 | |||||||||||||
Foreign exchange and other | 564 | 433 | 3,067 | 2,873 | |||||||||||||
Loss on extinguishment of debt | — | — | — | 6,306 | |||||||||||||
Gain on equity issuance | — | — | — | (2,670 | ) | ||||||||||||
Merger and shareholder litigation costs | 1,500 | — | 10,831 | — | |||||||||||||
Gain on legal settlement | — | — | (6,779 | ) | — | ||||||||||||
Revision to contract termination charge | — | — | (20,478 | ) | — | ||||||||||||
Adjusted EBITDA (1) | $ | 9,704 | $ | 8,738 | $ | 40,553 | $ | 32,189 | |||||||||
(1) |
EBITDA represents earnings before interest, income taxes, depreciation, amortization, accretion and derivative (gains)/losses. Adjusted EBITDA excludes non-cash compensation expense, reduction in the value of assets, foreign exchange (gains)/losses, and certain other non-recurring charges as applicable. Management uses Adjusted EBITDA in order to manage the Company's business and to compare its results more closely to the results of its peers. EBITDA and Adjusted EBITDA do not represent and should not be considered as alternatives to GAAP measurements, such as net income/(loss). These terms, as defined by us, may not be comparable to similarly titled measures used by other companies. In connection with the adoption of ASU No. 2014-09, Revenue from Contracts with Customers, the Company has not recast Adjusted EBITDA in prior periods. |
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The Company uses Adjusted EBITDA as a supplemental measurement of its operating performance. The Company believes it best reflects changes across time in the Company's performance, including the effects of pricing, cost control and other operational decisions. The Company's management uses Adjusted EBITDA for planning purposes, including the preparation of its annual operating budget. The Company believes that Adjusted EBITDA also is useful to investors because it is frequently used by securities analysts, investors and other interested parties in their evaluation of companies in similar industries. As indicated, Adjusted EBITDA does not include interest expense on borrowed money or depreciation expense on our capital assets or the payment of income taxes, which are necessary elements of the Company's operations. Because Adjusted EBITDA does not account for these expenses, its utility as a measure of the Company's operating performance has material limitations. Because of these limitations, the Company's management does not view Adjusted EBITDA in isolation and also uses other measurements, such as revenues and operating profit, to measure operating performance. |
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GLOBALSTAR, INC. SCHEDULE OF SELECTED OPERATING METRICS (In thousands, except subscriber and ARPU data) (unaudited) |
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Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||
Service | Equipment | Service | Equipment | Service | Equipment | Service | Equipment | |||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||
Duplex | $ | 10,093 | $ | 403 | $ | 10,139 | $ | 466 | $ | 41,223 | $ | 2,016 | $ | 37,635 | $ | 2,754 | ||||||||||||||||
SPOT | 12,576 | 1,834 | 12,589 | 933 | 52,363 | 8,046 | 45,427 | 5,394 | ||||||||||||||||||||||||
Simplex | 3,612 | 2,362 | 3,101 | 1,072 | 13,459 | 8,330 | 10,946 | 5,243 | ||||||||||||||||||||||||
IGO | 250 | 151 | 221 | 256 | 932 | 498 | 1,068 | 779 | ||||||||||||||||||||||||
Other | 655 | 10 | 572 | 78 | 3,112 | 134 | 3,397 | 17 | ||||||||||||||||||||||||
$ | 27,186 | $ | 4,760 | $ | 26,622 | $ | 2,805 | $ | 111,089 | $ | 19,024 | $ | 98,473 | $ | 14,187 | |||||||||||||||||
Average Subscribers | ||||||||||||||||||||||||||||||||
Duplex | 62,999 | 71,261 | 65,501 | 72,443 | ||||||||||||||||||||||||||||
SPOT | 290,461 | 292,798 | 291,289 | 285,683 | ||||||||||||||||||||||||||||
Simplex | 372,658 | 326,720 | 354,678 | 313,553 | ||||||||||||||||||||||||||||
IGO | 26,816 | 36,463 | 31,537 | 37,165 | ||||||||||||||||||||||||||||
ARPU (1) | ||||||||||||||||||||||||||||||||
Duplex | $ | 53.40 | $ | 47.43 | $ | 52.45 | $ | 43.29 | ||||||||||||||||||||||||
SPOT | 14.43 | 14.33 | 14.98 | 13.25 | ||||||||||||||||||||||||||||
Simplex | 3.23 | 3.16 | 3.16 | 2.91 | ||||||||||||||||||||||||||||
IGO | 3.11 | 2.02 | 2.46 | 2.39 | ||||||||||||||||||||||||||||
(1) |
Average monthly revenue per user (ARPU) measures service revenues per month divided by the average number of subscribers during that month. Average monthly revenue per user as so defined may not be similar to average monthly revenue per unit as defined by other companies in the Company's industry, is not a measurement under GAAP and should be considered in addition to, but not as a substitute for, the information contained in the Company's statement of operations. The Company believes that average monthly revenue per user provides useful information concerning the appeal of its rate plans and service offerings and its performance in attracting and retaining high value customers. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190228005890/en/
Source:
Investor Contact Information:
Kyle Pickens
Email: [email protected]