Slide 1: Earnings Call Presentation Q1 2014
Earnings Call Presentation Q1 2014 May 7, 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
Slide 3: Poised for Growth & Profitability Improvement
Poised for Growth & Profitability Improvement 2 Financial Performance & Liquidity · Continued momentum in Revenue and Adjusted EBITDA growth. Improved Duplex coverage with completed Second - Generation constellation – Duplex minutes of use, equipment revenue and service revenue increased 11%, 22% an
Slide 4: Financial Results Summary
Financial Results Summary · Revenue and Adjusted EBITDA for Q1 2014 were $20.5 million and $3.8 million – growth of 6% and 54%, respectively over the comparable prior year period · Duplex service revenue was $5.9 million, representing growth of 21% over Q1 2013; Duplex Adjusted ARPU (1) was $33.73,
Slide 5: Q1 2014 Financial Performance
$0.6 $0.8 $1.1 $1.4 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 Q1'11 Q1'12 Q1'13 Q1'14 Q1 2014 Financial Performance 4 ($ in millions) 22% Growth Duplex Performance & Operating Cash Flow Duplex Equipment Revenue Adjusted EBITDA (3) (3) Adjusted to exclude non - cash compensation expense, reduction
Slide 6: Duplex Expansion Initiatives Update
Duplex Expansion Initiatives Update 5 Geographical Expansion Improved Service Offerings Marketing & Advertizing Expansion · Completed gateway repair efforts in Brazil · Venezuela gateway repair procedures to be completed in Q2 2014 · Additional geographical expansion opportunities under consideratio
Slide 7: New Products Broaden MSS Relevance
SPOT Gen3 SPOT Global Phone · Small, lightweight, consumer - oriented satellite phone · Portable device with a long battery life · Airtime pricing matches current Duplex price plans · Provides flexibility to outdoor enthusiasts with two - way communication functionality while out of cellular range S
Slide 8: Sat-Fi Product Capability
Product Capability ● Connects any Wi - Fi enabled device (e.g., tablets, smartphones and laptops) to Globalstar’s satellite network for full voice and data services beyond the range of cellular networks ● Extends wireless beyond cellular and allows for coverage in any targeted territory while allowi
Slide 9: ADS-B Link Augmentation System (ALAS)
ADS - B Link Augmentation System (“ALAS”) 8 ALAS Overview Optimally Designed & Successfully Tested · ADS - B Link Augmentation System, or “ALAS,” re - routes a signal from the aircraft’s transponder through a secure and uninterruptable two - way link via the Globalstar constellation · Resolves line
Slide 10: FCC's NPRM Regulatory Update
FCC’s NPRM Regulatory Update 9 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
Slide 11: Globalstar Value Drivers
Globalstar Value Drivers Global, contiguous ITU spectrum authorization TLPS offers low - cost carrier grade connectivity for small cell, video and enterprise Scalable, reliable and secure ALAS air traffic management solution Resurgent global MSS business – continued revival across service offerings
Slide 12: Annex A – Reconciliation of Quarterly Adjusted EBITDA
Annex A – Reconciliation of Quarterly Adjusted EBITDA 11 ($ 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 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) ($250.5) Interest
Slide 13: Annex B – Reconciliation of Operating Cash Flow
Annex B – Reconciliation of Operating Cash Flow 12 ($ in millions) Q1 2011 Q1 2012 Q1 2013 Q1 2014 Net Loss ($6.5) ($24.5) ($25.1) ($250.5) Depreciation, amortization, and accretion 10.6 14.7 20.3 23.3 Change in fair value of derivative assets and liabilities (6.4) 6.5 (0.5) 209.4 Stock-based compen
Slide 14: Annex C – ALAS Schematic Overview
Annex C – ALAS Schematic Overview 13