Slide 1: Earnings Call Presentation Third Quarter 2015
Earnings Call Presentation Third Quarter 2015 November 5, 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: Chicago Testing Conclusions Overview
2 Chicago Testing Conclusions Overview TLPS provides significant overall capacity gains and materially increases the throughput experienced by all users of the network: ‒ As an increasing number of users are moved to Channel 14, congestion is eased on Channels 1, 6 and 11 ‒ This allows for a signi
Slide 4: Chicago Testing: Downlink Average Throughput Per Device
3 Chicago Testing: Downlink Average Throughput Per Device Test results: Uncongested nature of TLPS allows it to handle a load comparable to that of Channels 1, 6 and 11 combined Avg. Throughput Per Device on Channels 1, 6, 11 Avg. Throughput Per Device on Channel 14 Network Average Overall Step 1 St
Slide 5: Spectrogram of 2.4 GHz Band
4 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 6: NOS: Managed TLPS Solution
5 NOS: Managed TLPS Solution Authentication Server Customer Data Center Internet ① User associates to the TLPS AP. ② All device MAC addresses are checked on the ViaSat and Customer Authentication Servers, to match the device identity to an existing account. ③ Existing/known user authenticates agains
Slide 7: TLPS Interference Remediation
6 TLPS Interference Remediation ViaSat Support 7 6 Interference Report From Adjacent or Co- Channel Service TLPS AP Geographic Database Solution Model Network Controller TLPS APs Interference Zone A B C D E F A. Adjacent or co-channel operator reports suspected TLPS interference via web or telephone
Slide 8: FCC's NPRM Regulatory Update
FCC’s NPRM Regulatory Update 7 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, 20
Slide 9: SPOT Products Initiate 4,000th Rescue
SPOT Products Initiate 4,000th Rescue Since 2007, Globalstar’s SPOT customers have initiated 4,000 rescues, averaging 2 people per rescue In 2015, customers are initiating 2 rescues every day around the world No other communications product has achieved the life saving record of SPOT SPOT Resc
Slide 10: Second-Generation Ground Rollout – On Track
Second-Generation Ground Rollout – On Track Initial Deliveries North American Installations Rest of the World Installations Complete 2015 2016 Second-Generation Rollout Schedule Summary Successfully completed RAN installations at all North American and French gateways – final acceptance testing co
Slide 11: 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 Second-Generation Sat-Fi Satellite Transmitter Unit STX2 STX3 Second-Generation Simplex SPOT SPOT Personal Tracker SPOT 2 SPOT 3 Inexpensiv
Slide 12: Second-Generation Sat-Fi Capabilities
Second-Generation Sat-Fi Capabilities Wi-Fi 11 Low-priced 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
Slide 13: Global Subscriber Composition
80% 20% 83% 17% 63% 37% 77% 23% Global Subscriber Composition 12 Note: Duplex composition for prior period excludes the deactivation of certain subscribers across Latin America during Q3 2015. Expanding focus from primarily North American markets to other regions including Latin America, Europe and
Slide 14: 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 15: Service Revenue Highlights
44.4 41.6 274.1 307.4 235.7 262.0 65.6 75.6 - 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 Q3 2014 Q3 2015 $1.3 $1.1 $2.0 $2.4 $7.5 $8.8 $7.7 $7.4 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 Q3 2014 Q3 2015 Service Revenue Highlights 14 Duplex SPOT Simplex IGO / Other ($ in millions) (in thousands) $18.5 $
Slide 16: Equipment Revenue Highlights
1.5 2.7 14.1 16.9 16.2 16.3 3.9 5.4 - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 Q3 2014 Q3 2015 ($0.0) $0.2 $1.6 $1.3 $1.6 $1.4 $1.8 $1.1 ($0.5) $1.5 $3.5 $5.5 Q3 2014 Q3 2015 Equipment Revenue Highlights 15 Duplex SPOT Simplex IGO / Other Equipment revenue decreased year-over-year due primarily
Slide 17: COFACE Facility Successfully Amended
COFACE Facility Successfully Amended 16 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 18: Liquidity Review
Liquidity Review Liquidity and Capital Sources (1) Cash & Cash Eq. Common Stock Purchase Agreement with Terrapin Debt Service Reserve Account Total Liquidity Unrestricted Liquidity $28.0 $60.0 $37.9 $125.9 $88.0 ($ in millions) (1) This schedule excludes cash flow from operations 17
Slide 19: Key Value Drivers
Key Value Drivers 18 Diverse product and service offerings across consumer, commercial and government markets New product offerings – Second-Generation Sat-Fi, Simplex and SPOT devices Operational focus materially expanded to include new territories, such as Latin America and Southern Africa
Slide 20: Annex A – Reconciliation of Adjusted EBITDA
Annex A – Reconciliation of Adjusted EBITDA 19 ($ in millions) Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014 Q1 2015 Q2 2015 Q3 2015 Net Income (loss) ($250.5) ($433.7) $129.4 $92.0 ($462.9) ($129.7) $204.8 $24.1 Interest income and expense, net 10.9 13.9 9.1 9.4 43.2 8.5 9.2 9.0 Derivative (gain) loss 209.4