Slide 1: Earnings Call Presentation Q1 2015
Earnings Call Presentation Q1 2015 May 7, 2015
Slide 2: Safe Harbor Language
Safe Harbor Language 1 This presentation 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 unce
Slide 3: Financial Results Summary
Financial Results Summary (1) Adjusted to exclude non-cash compensation expense, reduction in the value of assets, foreign exchange (gains)/losses, R&D costs associated with the development of new products and certain other one-time charges. See reconciliation to GAAP Net Income (loss) on Annex A. (
Slide 4: Second-Generation Ground Network Overview
Second-Generation Ground Network Overview 3 Globalstar’s upgraded ground network will allow for improved voice and data transfer speeds as well the development of new products Key Vendors Scope of Work Benefit to Globalstar Ground Network ● Design, supply and implement the Radio Access Network (“RAN
Slide 5: Key Elements of Second-Generation Ground Network
Key Elements of Second-Generation Ground Network 4 Smaller data boards Less expensive components – material reduction in pricing Increased ease of integration into other devices / products Voice and data capacity increase materially Increased ability to service a large sub base with expand
Slide 6: Satellite Product Evolution and New Products
Satellite Product Evolution and New Products Existing / Legacy Product Line New Products: Second-Generation Simplex Duplex GSP 1600 GSP 1700 Commercial Sat-Fi Consumer Sat-Fi Satellite Transmitter Unit STX2 STX3 Dual Simplex SPOT SPOT Personal Tracker SPOT 2 SPOT 3 $100 product that turns any Wi-F
Slide 7: Duplex Q1 2014 vs. Q1 2015 Performance
79% 21% 81% 19% 75% 25% 91% 9% Duplex Q1 2014 vs. Q1 2015 Performance 6 Duplex Subscriber Additions Growth Profile (1) (1) Growth rates shown above are for LTM Q1 2015 vs. LTM Q1 2014 (2) Concurrent with the deployment of Second-Generation ground infrastructure 7% 414% 65% Central & South America No
Slide 8: Globalstar Scenarios: TLPS Has No Negative Impact on Public Wi-Fi
7 44.0 42.7 48.8 46.5 45.3 43.4 49.7 45.0 19.2 50.6 21.2 0.0 10.0 20.0 30.0 40.0 50.0 60.0 Ch 1 Ch 6 Ch 11 Ch 6 (2nd AP) TC P DL D at a T hr ou gh pu t ( M bp s) Individual Ch. Channels 1+6+11 Channels 1+2x6+11 44.2 45.2 48.1 48.8 43.1 45.2 49.5 44.3 45.3 50.3 50.7 0.0 10.0 20.0 30.0 40.0 50.0 60.0
Slide 9: Globalstar's TLPS Substantially Increases Overall Network Capacity
8 136.02 190.46 137.46 0 20 40 60 80 100 120 140 160 180 200 Ch 1 + Ch 6 + Ch 11 Ch 1 + Ch 6 + Ch 11 + Ch 14 Ch 1 + 2xCh 6 + Ch 11 TC P D L D ata Th rou gh pu t (M bp s) Globalstar’s TLPS Substantially Increases Overall Network Capacity 12 Users – APs on Channels 1, 6, and 11 12 Users – APs on Chann
Slide 10: Spectrogram of 2.4 GHz Band
9 Spectrogram of 2.4 GHz Band As shown below in the spectrogram from the March 2015 demonstration, there is an energy gulf between Channel 14 and Channel 11 Channel 1 Channel 6 Channel 11 Channel 14
Slide 11: FCC's NPRM Regulatory Update
FCC’s NPRM Regulatory Update 10 November 13, 2012 Globalstar Files Petition for Rulemaking November 30, 2012 FCC Placed Petition on Public Notice November 1, 2013 FCC Unanimously Votes For and Releases NPRM February 19, 2014 NPRM Publication in Federal Register May 5, 2014 Comment Due Date June 4, 2
Slide 12: Service Revenue Highlights
$5.9 $6.2 $7.0 $7.5 $1.9 $2.3 $1.5 $1.1 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 Q1 2014 Q1 2015 58.6 69.7 224.1 246.6 250.7 288.2 45.1 44.5 - 100.0 200.0 300.0 400.0 500.0 600.0 700.0 Q1 2014 Q1 2015 Service Revenue Highlights 11 Duplex SPOT Simplex IGO / Other ($ in millions) (in tho
Slide 13: Equipment Revenue Highlights
Equipment Revenue Highlights 12 Duplex SPOT Simplex IGO / Other Units sold improved 24% over Q1 2014; Duplex, SPOT and Simplex hardware sales increased 39%, 9% and 47%, respectively over the prior year period Equipment revenue decreased 9% year-over-year largely due to the success of the SPOT re
Slide 14: Liquidity Review and Balance Sheet Highlights
Liquidity Review and Balance Sheet Highlights $38.9 $40.9 $45.5 $47.5 $48.2 $51.7 $42.5 $47.4 $53.5 $60.4 $68.2 $70.2 $70.9 $71.8 $71.8 $71.8 $47.0 $22.8 $22.6 $16.3 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 2010 2011 2012 2013 2014 Q1 2015 Apr-15 2011 5% Notes 2009 8% Notes Subordinated Loan 2013 8% N
Slide 15: Key Value Drivers
Key Value Drivers 14 Diverse product and service offerings across consumer, commercial and government markets New product offerings – consumer Sat-Fi and dual simplex to improve company market share Operational focus materially expanded to include new territories such as Central & South Americ
Slide 16: Annex A – Reconciliation of Adjusted EBITDA
Annex A – Reconciliation of Adjusted EBITDA 15 ($ in millions) Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014 Q1 2015 Net Income (loss) ($250.5) ($433.7) $129.4 $92.0 ($462.9) ($129.7) Interest income and expense, net 10.9 13.9 9.1 9.4 43.2 8.5 Derivative (gain) loss 209.4 376.3 (167.0) (132.6) 286.1 107.9 In