Slide 1: Earnings Call Presentation Second Quarter 2013
EARNINGS CALL PRESENTATION SECOND QUARTER 2013 August 13, 2013
Slide 2: Safe Harbor Language
SAFE HARBOR LANGUAGE 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 an
Slide 3: Q2-2013 Operational Progress
Duplex service coverage has continued to improve materially with the final satellite from launch 4 to be placed into service shortly – in Q2, Duplex minutes of use increased 41% over the prior year period In May, SPOT Global Phone, the world’s first consumer focused satellite handset, was releas
Slide 4: Q2-2013 Results Summary
(1) Adjusted to exclude non - cash compensation expense, reduction in the value of assets, foreign exchange (gains)/losses, R&D co sts associated with the development of new consumer products and certain other one - time charges. See reconciliation to GAAP Net loss on Annex A. 2 Q2 - 2013 RESULTS SU
Slide 5: Duplex ARPU & Adjusted EBITDA Resurgence
3 DUPLEX ARPU & ADJUSTED EBITDA RESURGENCE DUPLEX ARPU $22.41 $20.43 $20.68 $20.03 $18.33 $17.83 $18.87 $18.37 $14.99 $15.35 $16.74 $18.95 $18.49 $19.24 $21.29 $13.00 $14.00 $15.00 $16.00 $17.00 $18.00 $19.00 $20.00 $21.00 $22.00 $23.00 Duplex ARPU Highest Since Q4 2009 ADJUSTED EBITDA ($2.0) ($1.8)
Slide 6: Globalstar Operational Update
Material improvement in primary Duplex metrics including usage, gross adds and ARPU over the prior year period: − Usage: Increased 41% − Gross subscriber additions: 2x greater − ARPU increased by 27% New Duplex and M2M products set to drive distribution into previously unserved markets Governm
Slide 7: Annual Principal Repayments and Deferred Principal Amounts
$4.0 $6.4 $32.8 $75.8 $77.9 $94.9 $100.0 $100.0 $94.5 $34.2 $56.4 $57.6 $35.1 $6.0 $26.5 $19.5 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 Facility amendment, when effective, will reduce near term principal obligations and materially improve financial covenants Consent Agreement executed May
Slide 8: TLPS (Terrestrial Low Power Service)
“ Consumers are likely to experience reduced coverage and throughput, ” and “ Wi - Fi will become less useful, particularly for high bandwidth services like video. ” Wi - Fi Spectrum: Exhaust Looms, Rob Alderfer, CableLabs, at 12 (May 28, 2013). The 2.4 GHz Wi - Fi band will reach exhaustion by 2014
Slide 9: An Immediate Solution & Long-Term Plan
Allow Globalstar to offer any permitted terrestrial wireless service within its 2.4 GHz spectrum, including mobile broadband services including TLPS and LTE Dramatically expand the Nation’ s spectral capacity to relieve existing Wi - Fi congestion Be managed over a carrier - grade network of a
Slide 10: New Products – Upcoming
NEW PRODUCTS – UPCOMING Battery life 2x SPOT 2 Enhanced customization features Smaller form factor USB connection for line power eliminates the need for battery replacement New movement messaging, theft alerting capabilities Extreme Tracking at 2.5 minute intervals Extremely small and
Slide 11: Breakthrough Mass Market Products, Valuable Spectrum Assets
Breakthrough Mass Market Products Valuable Spectrum Assets Debt refinancing provides financial flexibility and eliminates near - term financial uncertainty Second - Gen provides significant cost benefits and network performance enhancements years before our competitors With the final Second -
Slide 12: Annex A — Adjusted EBITDA Reconciliation
10 ANNEX A — ADJUSTED EBITDA RECONCILIATION ($ in millions) Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Net loss ($33.9) ($35.6) ($19.2) ($24.5) ($18.1) ($6.5) ($14.1) ($0.7) ($33.7) ($24.5) ($27.5) ($41.2) ($19.0) ($25.1) (