Globalstar, Inc. · NASDAQ:GSAT
Globalstar — 24th Annual Burkenroad Reports Investment Conference (April 2021)
22 slides from Globalstar's conference presentation, Apr 23, 2021
Slide 1: Burkenroad Reports
Burkenroad Reports April 23, 2021 1
Slide 2: Disclaimer
Disclaimer 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 uncertainties wh
Slide 3: Agenda
Agenda I. Operational & Financial Update II. Spectrum Update III. Appendix 3
Slide 4: Presenters
Presenters David Kagan serves as CEO of Globalstar. His extensive and uniquely applicable experience ranges from serving as Chief Financial Officer and Vice President of ICG Satellite Services to Vice President of Finance and Treasurer at Norwegian Cruise Line Ltd, where he led a $1 billion refinanc
Slide 5: Operational & Financial Update
Operational & Financial Update Confidential
Slide 6: Globalstar Today
Globalstar Today OVERVIEW REVENUE GROWTH SPECTRUM ($ in millions) ’15-20 CAGR • Globalstar, Inc. (NYSE American: GSAT) is a leading global provider of mobile satellite and IoT connectivity services and terrestrial spectrum 7% S-Band $130 $132 $128 ‒ Multifaceted investment opportunity – Cash flow dr
Slide 7: Building Multifaceted Investment Opportunity
Building Multifaceted Investment Opportunity GLOBALSTAR TODAY (1) GLOBALSTAR FUTURE (2) Duplex Terrestrial SPOT Spectrum Engineerin Duplex g Services & Other Commercial IoT Terrestrial Spectrum Commercial IoT SPOT Engineering Services & Other (1) Based on composition of 2020 total revenue (2) Illust
Slide 8: Globalstar Satellite Constellation
Globalstar Satellite Constellation SECOND-GENERATION CONSTELLATION OVERVIEW BENEFITS OF GLOBALSTAR’S SYSTEM • Launched 24 second-generation Low Earth Orbit (“LEO”) Mid-Band Spectrum for Mobility satellites between 2010 and 2013 • Architecture features 8 planes with 3 satellites each providing 70°S t
Slide 9: Globalstar Product Overview
Globalstar Product Overview Voice & Data / Commercial IoT Consumer / SPOT Duplex SmartOne GSP 1700 STX-3 SmartOne C ST-100 ST-150 2-Way Board SPOT Trace SPOT X SPOT Gen4 Solar Phone Under Under development development • Company’s • Tracking of • Tracking of • Latest satellite • Currently under • Cur
Slide 10: Multiple Well-Developed Distribution Channels
Multiple Well-Developed Distribution Channels Commentary Globalstar Paths to Market • Diverse customer base with no single customer contributing more than 10% of revenue • Established relationships with key resellers and retailers DIRECT TO VALUE ADDED • New products designed for growing IoT CONSUME
Slide 11: Profitable, Growing and Diverse Core Business
Profitable, Growing and Diverse Core Business Historical Revenue Commentary ($ in millions) ’15 – 20 CAGR ‒ Commercial IoT – 14% 5-Year CAGR(1) o Success in rapidly growing heavy industrial 7% applications; success curtailed by oil and gas downturn $130 $132 $128 $113 o Further upside potential from
Slide 12: Low Data Rate Satcom IoT Opportunity
Low Data Rate Satcom IoT Opportunity Worldwide Satellite IoT Market Growth(1) Key Opportunities for Globalstar Today Key Opportunities Illustrative Use Cases • Tracking location of various field assets $1.5 • • Tank level monitoring Leak detection and pipeline integrity billion • • Remote monitoring
Slide 13: COVID-19 Impact
COVID-19 Impact Financial and Operational Impact ◦ We evaluated the impact of COVID-19 on our financial statements, liquidity position and business operations. ◦ The primary effects of COVID-19 include the accommodation of certain customer pricing concessions and lower demand for certain products an
Slide 14: Historical Financial Overview
Historical Financial Overview AVERAGE SUBSCRIBERS ARPU (in thousands) ’16– 20 CAGR ($) $52.45 $58.33 $56.33 2% $34.96 $43.29 $13.25 $14.98 $14.93 $14.44 $11.69 $2.78 $2.91 $3.16 $3.54 $3.45 2016 2017 2018 2019 2020 ADJUSTED EBITDA CAPEX ($ in millions) ’16– 20 CAGR ($ in millions) 20% $42 $18 $41 $3
Slide 15: Current Capitalization Table
Current Capitalization Table ($ in millions except per share values) Share Price (as of 4/21/2021) $0.89 (1) Basic Shares Outstanding 1,789.7 Market Capitalization $1,592.8 Cash and cash equivalents $13.3 Restricted cash 54.7 Total Cash (2) $68.0 Debt Agreements (2) First Lien Facility Agreement (3)
Slide 16: Spectrum Update
Spectrum Update Confidential
Slide 17: Overview of Globalstar's Global Spectrum Holdings
Overview of Globalstar’s Global Spectrum Holdings Terrestrial Spectrum Holdings Current Geography Authorization Band (in MHz) Satellite Use Status Near Term 11.5 Terminal Terrestrial Authorization U.S., Brazil and Canada (2483.5 – 2495) Downlink Obtained 16.5 Terminal Terrestrial Authorization S-Ban
Slide 18: Globalstar International Terrestrial Status
Globalstar International Terrestrial Status Globalstar is seeking terrestrial authority over its entire S-band spectrum in multiple jurisdictions worldwide. Company has already initiated diligence efforts and / or regulatory procedures in countries representing a combined population of 1.8 billion.
Slide 19: Band 53 Opportunities
Band 53 Opportunities Commercialization Opportunities Rapidly Growing Private LTE Opportunity • Secure proprietary wireless networks 2023 Private LTE tailored for enterprise, transportation, or government use cases Addressable Market(1) • Band 53 represents a rare swath of Connected Factory Smart Tr
Slide 20: Appendix
GlobalStar* Appendix Confidential
Slide 21: EBITDA Reconciliation
EBITDA Reconciliation (US $ in millions) 2016 2017 2018 2019 2020 Net Income (Loss) $ (132.6) $ (89.1) $ (6.5) $ 15.3 $ (109.6) - - - - - Interest income and expense, net 36.0 34.8 43.6 62.5 48.4 Derivative (gain) loss 41.5 (21.2) (81.1) (145.1) (2.9) Income tax expense (benefit) (6.5) 0.2 0.1 0.5 0
Slide 22: Proven Leadership with Track Record of Execution
Proven Leadership with Track Record of Execution Name and Title Prior Experience David Kagan • Rejoined Globalstar as President and COO in December 2017 CEO • Former COO of SpeedCast International; President of ITC Global; President and CEO of Globe Wireless • President and CEO of Maritime Telecommu
Globalstar — 24th Annual Burkenroad Reports Investment Conference (April 2021) on 6ix