Slide 1: Earnings Call Presentation Second Quarter 2015
Earnings Call Presentation Second Quarter 2015 August 10, 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 charges. See reconciliation to GAAP Net Income (loss) on Annex A. (2) Duplex
Slide 4: Key Elements of Second-Generation Ground Network
Key Elements of Second-Generation Ground Network 3 Smaller data boards Less expensive components – material reduction in pricing Increased ease of integration into other devices / products Voice and data capacity increased materially Increased ability to service a large sub base with expan
Slide 5: Second-Generation Ground Rollout – On Track
Second-Generation Ground Rollout – On Track 4 Initial Deliveries North American Installations Rest of the World Installations Complete 2015 2016 Second-Generation Rollout Schedule Summary Completed over the air data testing as well as lab-based voice calling RANs have been delivered to all North
Slide 6: Duplex Q2 2014 vs. Q2 2015 Performance
78% 22% 85% 15% 88% 12% Duplex Q2 2014 vs. Q2 2015 Performance 5 Duplex Subscriber Additions Growth Profile (1) (1) Growth rates shown above are for LTM Q2 2015 vs. LTM Q2 2014 (2) Concurrent with the deployment of Second-Generation ground infrastructure 4% 386% 4% Central & South America North Amer
Slide 7: 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 Simplex becomes two-way SPOT SPOT Personal Tracker SPOT 2 SPOT 3 $100 product that tur
Slide 8: Second-Generation Sat-Fi Capabilities
Second-Generation Sat-Fi Capabilities Wi-Fi 7 A $100 Hughes-based mass market product that connects any Wi- Fi enabled device to Globalstar’s satellite network for full data services beyond the range of cellular networks, targeting 2/3rds of the planet beyond terrestrial coverage Dimensions – 3”
Slide 9: Globalstar Scenarios: TLPS Has No Negative Impact on Public Wi-Fi
8 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 10: Globalstar's TLPS Substantially Increases Overall Network Capacity
9 136.02 190.46 137.46 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 11: Spectrogram of 2.4 GHz Band
10 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 12: FCC's NPRM Regulatory Update
FCC’s NPRM Regulatory Update 11 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 13: Service Revenue Highlights
45.0 44.5 264.2 297.5 229.6 255.6 61.9 75.0 - 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 Q2 2014 Q2 2015 $1.7 $1.0 $2.2 $2.2 $7.0 $8.3 $6.9 $7.0 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 Q2 2014 Q2 2015 Service Revenue Highlights 12 Duplex SPOT Simplex IGO / Other ($ in milli
Slide 14: Equipment Revenue Highlights
2.5 2.9 20.4 12.1 16.0 19.1 3.3 6.8 - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 Q2 2014 Q2 2015 $0.7 $0.5 $2.0 $1.2 $1.7 $1.4 $1.7 $1.3 $0.0 $2.0 $4.0 $6.0 Q2 2014 Q2 2015 Equipment Revenue Highlights 13 Duplex SPOT Simplex IGO / Other Equipment revenue decreased year-over-year due primarily to
Slide 15: COFACE Facility Successfully Amended
COFACE Facility Successfully Amended 14 On August 7, 2015, Globalstar successfully amended the COFACE Facility Agreement Amendment extends the cure period up to two years (to June 2019) and provides additional flexibility on future capital expenditures, if needed Secures equity commitments fro
Slide 16: 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 $72.4 $71.8 $71.8 $71.8 $47.0 $22.8 $22.6 $16.6 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 2010 2011 2012 2013 2014 Q1 2015 Q2 2015 2011 5% Notes 2009 8% Notes Subordinated Loan 2013 8%
Slide 17: Key Value Drivers
Key Value Drivers 16 Diverse product and service offerings across consumer, commercial and government markets New product offerings –consumer Sat-Fi, two-way simplex and two-way SPOT devices Operational focus materially expanded to include new territories, such as Central & South America and S
Slide 18: Annex A – Reconciliation of Adjusted EBITDA
Annex A – Reconciliation of Adjusted EBITDA 17 ($ in millions) Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014 Q1 2015 Q2 2015 Net Income (loss) ($250.5) ($433.7) $129.4 $92.0 ($462.9) ($129.7) $204.8 Interest income and expense, net 10.9 13.9 9.1 9.4 43.2 8.5 9.2 Derivative (gain) loss 209.4 376.3 (167.0) (13