Slide 1: Earnings Call Presentation 2013
Earnings Call Presentation 2013 March 10, 2014
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
Slide 3: 2013 Highlights
2013 Highlights 2 March 2014 2013 represented a successful turnaround year for Globalstar – Company completed constellation restoration, materially improved its balance sheet and made significant progress on the spectrum proceeding March 2013 ● Required COFACE Facility restructuring including princi
Slide 4: 2013 Financial Performance
2013 Financial Performance Revenue and Adjusted EBITDA for 2013 of $82.7 million and $11.9 million – growth of 8% and 21%, respectively over prior year period Duplex service revenue was $22.8 million, representing a growth of 24% over 2012; Duplex equipment revenue approximately 2x 2012 levels – SPO
Slide 5: Historical Financial Summary
Historical Financial Summary 4 Revenue Adjusted EBITDA (1) $84.4 $127.1 $136.7 $98.4 $86.1 $64.3 $67.9 $72.8 $76.3 $82.7 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $3.6 $27.3 $33.8 $21.8 ($14.2) ($12.6) ($8.5) ($6.4) $9.8 $11.9 ($20.0) ($10.0) $0.0 $10.0 $20.0 $30.0 $40.0 ($ in million
Slide 6: Duplex Resurgence: Gross Subscriber Additions
5 Duplex Resurgence: Gross Subscriber Additions 36,592 17,498 9,120 7,060 5,609 6,419 6,751 15,252 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2006 2007 2008 2009 2010 2011 2012 2013 Constellation service degradation Second - Generation Launches & Service Restoration Service Degradation
Slide 7: 2013 Duplex Improvement
$2.1 $2.6 $3.4 $6.6 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 2010 2011 2012 2013 $23.3 $19.8 $18.4 $22.8 $15.0 $17.0 $19.0 $21.0 $23.0 $25.0 2010 2011 2012 2013 2013 Duplex Improvement 6 ($ in millions) 24% Growth 90% Growth Duplex Major Improvement Highlights ($ in millions) $19.92 $17.54 $17.42 $22
Slide 8: Continued Growth Across SPOT & Simplex
131 141 188 231 100 150 200 250 2010 2011 2012 2013 Continued Growth Across SPOT & Simplex 7 Continued innovation through product rollout across an extensive distribution network – 10,000 points of retail distribution and 2,000 dealers / resellers / VARs – initial positive market uptake on SPOT Gen3
Slide 9: 2014 Duplex Expansion Initiatives
2014 Duplex Expansion Initiatives 8 Geographical Expansion Improved Service Offerings Marketing & Advertizing Expansion Completed gateway repair efforts in Brazil in late 2013 and rebuilt sales infrastructure Select regions in Central & Latin America to be upgraded and Duplex - ready in 2014 with po
Slide 10: Globalstar's Competitive Environment
Revenue Adjusted EBITDA(1) 8.4% 20.7% (0.2%) (2.3%) Inmarsat (2) (2.2%) (0.5%) Constellation Network Status Architecture Fully launched LEO - Bent Pipe Launches b/w 2015 - 2017 LEO - Cross Links Launches in Progress GEO Most Economical Minutes Service $ per Postpaid Plan Included Fee minute Orbit 20
Slide 11: New Products Broaden MSS Relevance
SPOT Gen3 SPOT Global Phone Small, lightweight, consumer - oriented satellite phone Portable device with a long battery life Airtime pricing matches current Duplex price plans Provides flexibility to outdoor enthusiasts with two - way communication functionality while out of cellular range SPOT Trac
Slide 12: Ground-Breaking MSS Technology: Sat-Fi
Ground - Breaking MSS Technology: Sat - Fi 11 Sat - Fi : Extending Wireless Beyond Cellular Reliable Connectivity Anywhere, Anytime Satellite capability on any Wi - Fi enabled smartphone , tablet or computer Communication ability over Globalstar’s satellite system with existing phone numbers Constan
Slide 13: Sat-Fi Product Capability
Product Capability ● Connects any Wi - Fi enabled device (e.g., tablets, smartphones and laptops) to Globalstar’s satellite network for full voice and data services beyond the range of cellular networks and provides user continuous coverage by connecting to satellite network ● Extends wireless beyon
Slide 14: FCC's NPRM Regulatory Update
FCC’s NPRM Regulatory Update 13 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, 201
Slide 15: Globalstar Value Drivers
Globalstar Value Drivers Nationwide, contiguous U.S. spectrum position Global, contiguous ITU spectrum authorization TLPS offers low - cost carrier grade connectivity for small cell, video and enterprise Resurgent global MSS business – material revival across service offerings Unique product portfol
Slide 16: Annex A – Reconciliation of Quarterly Adjusted EBITDA
Annex A – Reconciliation of Quarterly Adjusted EBITDA 15 ($ in millions) Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Net loss ($6.5) ($14.1) ($0.7) ($33.7) ($24.5) ($27.5) ($41.2) ($19.0) ($25.1) ($126.3) ($205.0) ($234.8) Interest income and expen
Slide 17: Annex B – Reconciliation of Annual Adjusted EBITDA
Annex B – Reconciliation of Annual Adjusted EBITDA 16 ($ in millions) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Net loss $0.4 $18.7 $23.6 ($27.9) ($22.8) ($74.9) ($97.5) ($54.9) ($112.2) ($591.1) Interest income and expense, net 1.3 (0.0) 2.1 5.9 1.0 5.9 4.6 4.8 21.5 67.8 Derivative (gain) l