Slide 1: Earnings Call Presentation Q2 2014
Earnings Call Presentation Q2 2014 August 11, 2014
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 and uncer
Slide 3: Financial Results Summary
Financial Results Summary Revenue and Adjusted EBITDA for Q2 2014 were $24.0 million and $5.0 million – growth of 21% and 70%, respectively over the comparable prior year period Duplex service revenue was $6.9 million, representing growth of 29% over Q2 2013; Duplex ARPU (1) was $38.41, represen
Slide 4: Q2 2014 Financial Performance
$5.4 $4.5 $5.4 $6.9 $3.5 $4.0 $4.5 $5.0 $5.5 $6.0 $6.5 $7.0 $7.5 Q2'11 Q2'12 Q2'13 Q2'14 $26.29 $23.84 $31.18 $38.41 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 Q2'11 Q2'12 Q2'13 Q2'14 (1,142) (1,866) 898 3,299 (3,000) (2,000) (1,000) 0 1,000 2,000 3,000 4,000 Q2'11 Q2'12 Q2'13 Q2'14 2,109 1,997 4,204
Slide 5: Liquidity Review and Balance Sheet Highlights
Liquidity Review and Balance Sheet Highlights $71.8 $71.8 $71.8 $47.0 $39.9 $29.8 $23.0 $42.5 $47.4 $53.5 $60.4 $62.2 $64.1 $64.1 $45.5 $47.5 $48.2 $51.7 $42.8 $38.9 $40.9 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 2010 2011 2012 2013 Q1 2014 Q2 2014 Q2 2014 2011 5% Notes 2009 8% Notes Subordinated Loan
Slide 6: Second Quarter Highlights
Second Quarter Highlights Built-out sales and marketing infrastructure in Brazil Initiated expansion efforts in Colombia and Latin America Initiated additional greenfield expansion opportunities Revenue and Adjusted EBITDA improvement year over year Globalstar’s shares listed on NYSE MKT o
Slide 7: Broadening the Relevance of Satellite Communications: Sat-Fi
Broadening the Relevance of Satellite Communications Sat-Fi Launched in June 2014 Turns any Wi-Fi enabled device into a satellite phone Inexpensive satellite capability for any Wi-Fi enabled smartphone, tablet or computer . Constant connectivity when out of terrestrial coverage for calls, email and
Slide 8: ADS-B Link Augmentation System ("ALAS")
ADS-B Link Augmentation System (“ALAS”) 7
Slide 9: TLPS Helps Alleviate the Wi-Fi Traffic Jam
● TLPS is a mobile broadband service provided over Globalstar’s 2.4 GHz spectrum – FCC released Notice of Proposed Rulemaking in November 2013 with authority expected by year-end 2014 ● Clear TLPS channel provides for improved range and effective capacity of averaging 5x and 4x, respectively, as com
Slide 10: FCC's NPRM Regulatory Update
FCC’s NPRM Regulatory Update Globalstar’s NPRM Process Overview November 13, 2012 Globalstar Files Petition for Rulemaking January 20, 2013 Initial & Reply Comments Filed September 5, 2013 FCC Circulates NPRM Internally November 1, 2013 FCC Unanimously Votes For and Releases NPRM February 19, 2014 N
Slide 11: Key Value Drivers
Key Value Drivers Fully restored satellite network for core MSS operations with a new $1 billion constellation Diverse business lines across consumer, commercial and government markets Historically, focus has been on North America – beginning in 2014, operational focus has materially expanded
Slide 12: Annex A – Reconciliation of Quarterly Adjusted EBITDA
Annex A – Reconciliation of Quarterly Adjusted EBITDA ($ in millions) Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Net loss ($6.5) ($14.1) ($0.7) ($33.7) ($24.5) ($27.5) ($41.2) ($19.0) ($25.1) ($126.3) ($205.0) ($234.8) ($250.5) ($4
Slide 13: Annex B – Reconciliation of Adjusted Operating Cash Flow
Annex B – Reconciliation of Adjusted Operating Cash Flow ($ in millions) Q1 2014 Q2 2014 1H 2014 Net Loss ($250.5) ($433.7) ($684.3) Depreciation, amortization, and accretion 23.3 22.0 45.3 Change in fair value of derivative assets and liabilities 209.4 376.3 585.7 Stock-based compensation expense 0