Slide 1: Earnings Call Presentation Q4 2014
Earnings Call Presentation Q4 2014 March 2, 2015
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 (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: 2014 Financial Performance
$19.8 $18.4 $22.8 $27.0 $15.0 $30.0 2011 2012 2013 2014 $24.49 $24.97 $32.98 $36.03 $20.00 $30.00 $40.00 2011 2012 2013 2014 65,387 57,670 57,503 67,362 45,000 60,000 75,000 2011 2012 2013 2014 6,419 6,751 15,252 18,773 - 10,000 20,000 2011 2012 2013 2014 2014 Financial Performance 23% Growth Duplex
Slide 5: 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 $71.8 $71.8 $71.8 $47.0 $22.8 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 2010 2011 2012 2013 2014 2011 5% Notes 2009 8% Notes Subordinated Loan 2013 8% Notes Subordinated Debt Principal Balanc
Slide 6: 2014 Highlights
2014 Highlights Completed gateway repair procedures and built-out sales and marketing infrastructure in Brazil Executed agreement with partner TE.SA.M. Peru providing Company with long- term operational oversight and ability to sell directly in the region Completed gateway construction in Bots
Slide 7: MSS Growth Initiatives
MSS Growth Initiatives Introduced aggressive rebate programs for two-way Duplex – material success in 2014. Reduced pricing initiatives to continue in 2015 – fuels subscriber growth in core territories, generating high-margin recurring revenue stream for Globalstar. Re-engaging dealer network &
Slide 8: SPOT Product Rescues: 3,500
SPOT Product Rescues: 3,500 Since 2007, Globalstar’s SPOT customers have initiated over 3,500 rescues globally, averaging 2 people per rescue On average, Globalstar’s SPOT customers are initiating 1 rescue everyday somewhere around the world No other communications product has achieved the lif
Slide 9: Globalstar's Upgraded Ground Network
Globalstar’s Upgraded Ground Network 8 Globalstar’s upgraded ground network will allow for improved voice and data transfer speeds as well as 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 10: ALAS – Space-Based Air Traffic Management System
ALAS – Space-Based Air Traffic Management System Recent 7,000 Mile Flight Demonstrating Our Dual-Link Space-Based ADS-B System ● Full Duplex capability for sending flight information to and from aircraft in real-time ● Supports ADS-B in (FIS-B and TIS-B) applications, as well as ADS-B out ● Fully co
Slide 11: 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 12: 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 13: Annex A – Reconciliation of Quarterly Adjusted EBITDA
Annex A – Reconciliation of Quarterly Adjusted EBITDA 12 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Net Income (loss) ($25.1) ($126.3) ($205.0) ($234.8) ($250.5) ($433.7) $129.4 $92.0 Interest income and expense, net 7.8 15.2 16.9 28.0 10.9 13.9 9.1 9.4 Derivative (gain) loss (0
Slide 14: Annex B – Reconciliation of Annual Adjusted EBITDA
Annex B – Reconciliation of Annual Adjusted EBITDA 13 ($ in millions) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Net Income (loss) $0.4 $18.7 $23.6 ($27.9) ($22.8) ($74.9) ($97.5) ($54.9) ($112.2) ($591.1) ($462.9) Interest income and expense, net 1.3 (0.0) 2.1 5.9 1.0 5.9 4.6 4.8 21.5 6