Iridium Communications Inc · NASDAQ:IRDM
Iridium Communications — Investor Presentation (February 2010)
20 slides from Iridium Communications's investor presentation, Feb 9, 2010
Slide 1: Business Update & Iridium NEXT Financing Strategy
Exhibit 99.1 Iridium Communications Inc. Business Update & Iridium NEXT Financing Strategy February 9, 2010 Includes selected financial data through Q3 2009
Slide 2: Disclaimer
2 Disclaimer Safe Harbor Statement This presentation contains statements about future events and expectations known as “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 19
Slide 3: Basis of Presentation
3 Basis of Presentation • ReportingEntity The financial / operating results (other than those included in the Appendix on page 20) are the consolidated results for Iridium Holdings LLC only and do not include the separate operating results of GHL Acquisition Corp. (now called Iridium Communications
Slide 4: Business Update
s+ iridium Everywhere Business Update RE LIAB LE*G RITIGAL« LI] FELINES
Slide 5: Our Company
5 Our Company • Satellite voice and data solutions for enterprise & government • The only provider offering 100% worldwide coverage • Unique, resilient mesh satellite architecture • 66 satellite Low Earth Orbit (LEO) constellation • ~359,000 subscribers(1) • Anchor U.S. DoDcustomer – 23% of revenue
Slide 6: Our Unique Attributes - How we compete
6 Our Unique Attributes - How we compete Iridium is a unique company with exciting growth opportunities Only Mobile Communications Provider Capable of 100% Global Coverage • Geostationary Earth Orbit (GEOs) are limited in serving users above 70° latitude • Other LEOshave limitations, e.g. serving ma
Slide 7: Q3 Summary (Iridium Holdings LLC)
7 Q3 Summary (Iridium Holdings LLC) (1) ($M’s) Total Revenue, Op • Commercial and Gov’t Revenue up 23.0% and EBITDA & Net Income 2.1%, respectively, over Q3 2008 • Subscriber Baseup 16.1%from Q3 2008(2) • Equipment Revenue down 37.0%, or $12.4M, from Q3 2008 • Operational EBITDAup 28.4%(3) • Strong
Slide 8: Strong Subscriber and Service Revenue Growth
8 Strong Subscriberand Service Revenue Growth (1) (000's) Robust Subscriber Growth • Growing subscriber base driving recurring service revenue • Enterprise and government end-users • Service revenue is predictable Q1 03 Q3 09 and growing ($M's) Service Revenue $201 $177 $159 $147 $129 1) Of our 359,
Slide 9: 2010 Management Guidance & Valuation
9 2010 Management Guidance & Valuation Management Guidance Current Iridium Trading Valuation ($ in millions, except per-share data) • Previously announced 2009 Operational EBITDA guidance of Share Price as of 2/5/2010 $6.75 between $126-130M(1) x Shares Outstanding (2) 70.2 Market Capitalization $47
Slide 10: Iridium NEXT Financing Strategy
Iridium NEXT Financing Strategy
Slide 11: Iridium NEXT Constellation
11 Iridium NEXT Constellation • Iridium NEXT will upgrade & replace current satellite fleet • Current fleet expected to provide commercially acceptable service through transition to Iridium NEXT • Initial launches expected in 2014 • 66 satellite LEO constellation • Compatibility with current fleet e
Slide 12: Putting Cost of Iridium NEXT in Perspective
12 Putting Cost of Iridium NEXT in Perspective • $2.7B constellation (current estimated total cost) • Assumesconstellation provides commercially acceptable service through 2025-2030(1) • Large cash flow potential over constellation life justifies the investment: Illustrative Example Cumulative Opera
Slide 13: Iridium NEXT Financing Strategy
13 Iridium NEXT Financing Strategy • Substantial portion of capex for Iridium NEXT is expected to be financed from internal sources • For remainder of financing, Iridium is in active discussions with two large ECAsto secure a financing package, including backing/guarantees • Seeking support for a fa
Slide 14: What is ECA-Backed Financing?
14 What is ECA-Backed Financing? • Export credit agencies (“ECAs”) are private or quasi-governmental institutions that act as intermediaries between national governments and exporters to issue export financing • Financing can take the form of credits (financial support) or credit insurance and guara
Slide 15: Case Study: Globalstar ECA-Backed Financing
15 Case Study: GlobalstarECA-Backed Financing • In June 2009, Globalstar executed a Summary of ECA-Backed Senior Loan $738M financing plan, consisting of the Amount: $586M (79% of total need) following components: • $586M ECA senior secured financing backed by Coface (~79% of total need) Coface Cove
Slide 16: Status/Potential Timetable of Iridium-ECA Discussions
16 Status/ Potential Timetable of Iridium-ECA Discussions • Separate applications have been made to two large ECAsand significant discussions held • Goldman Sachs, SocieteGenerale and Hawkpoint are advising Iridium in these discussions • Iridium NEXT prime contractor candidates (Lockheed Martin & Th
Slide 17: Appendix
s+ iridium Everywhere Appendix RE LIAB LE*G RITIGAL« LI] FELINES
Slide 18: Iridium Holdings LLC Summary Q3 Highlights
18 Iridium Holdings LLC Summary Q3 Highlights ($M; except subscriber data) Q3 09 Q3 08 % Change YTD 09 YTD 08 % Change Subscribers (at end of period ) (1) 359,000 309,000 16.1% Revenue Commercial service Voice 39.5 32.6 21.2% 108.2 89.3 21.2% M2M Data 4.3 2.9 48.3% 12.1 7.6 59.2% Other Revenue 0.1 0
Slide 19: Operational EBITDA Non-GAAP reconciliation
19 Iridium Holdings LLC Operational EBITDA Non-GAAP reconciliation Q309 Q308 YTD09 YTD08 ($ in Millions) Net income $ 15.0 $ 16.9 $ 53.3 $ 52.3 Interest expense 3.6 4.6 12.8 14.3 Interest income (0.2) (0.3) (0.3) (1.0) Depreciation and amortization 3.6 3.1 10.8 9.0 Stock-based compensation expenses
Slide 20: Iridium Communications Inc. Condensed Statements of Operations
20 Iridium Communications Inc. Unaudited Condensed Consolidated Statements of Operations Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 Operating expenses: Professional fees $ 5,725 $ 28 $ 6,244 $ 104 Other operating expenses 372 78 645 196 Total operating expen
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