Globalstar, Inc. · NASDAQ:GSAT
Globalstar — Global Opportunities Conference 2013
19 slides from Globalstar's conference presentation, Sep 19, 2013
Slide 1: Global Opportunities Conference
Global Opportunities Conference (CORRECTED) September 19, 2013 Unsaved Document / 2/22/2012 / 17:42 Strictly Private and Confidential
Slide 2: Safe Harbor Language
Safe Harbor Language 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 uncert
Slide 3: Recent Accomplishments / Highlights
Recent Accomplishments / Highlights With all second-gen satellites in service, Duplex coverage has continued to improve materially and has been fully restored Duplex In Q2 2013, Duplex minutes of use increased 41% over the prior year period Restoration & New Product In May 2013, SPOT Global
Slide 4: Globalstar's Successful Launch Campaign
Globalstar’s Successful Launch Campaign Globalstar is the first MSS provider to successfully launch a second-generation constellation of LEO satellites, years ahead of its competition. Launch 1 – Oct ‘10 Launch 2 – July ‘11 Launch 3 – Dec ‘11 Launch 4 – Feb ‘13 Four successful launches Launch Al
Slide 5: Globalstar's Addressable Market
Globalstar’s Addressable Market Provide a Low Cost Alternative Reach Places or People Connect People Who Work or Provide Needed Connectivity to International (High Outside Cellular Coverage Play Outside Cellular Coverage When Cellular Service Fails Cost) Roaming Connectivity to nearly one Over a
Slide 6: Globalstar Capacity is Fungible Across User Types
Globalstar Capacity is Fungible Across User Types Globalstar’s Second-Generation constellation and network have the capacity to accommodate 34 billion text messages, M2M transmissions or other small-bit messages or 19 million voice or data minutes per day. Globalstar’s network architecture (bent-pip
Slide 7: Broadening MSS Relevance
Broadening MSS Relevance New Products Launched This Year New Product Pipeline Over Next Two Quarters New Asset Tracking device shown Device shown in relative in relative size next to a quarter size next to a smartphone SPOT Global SPOT Gen3 Miniature M2M Universal Kit Consumer Asset SPOT Gen3 Phone
Slide 8: Revolutionizing MSS
Revolutionizing MSS ? $100 MASS MARKET SOLUTION 2 BILLION PEOPLE OUT OF CELLULAR COVERAGE Consumers around the globe will depend on GLOBALSTAR for their communication needs 75% LANDMASS NOT SERVED 8 Strictly Private and Confidential
Slide 9: Distribution Strategy to Support Consumer Take-Up
Distribution Strategy to Support Consumer Take-Up Historically, the mobile satellite industry has relied on indirect sales channels such as dealers / resellers to distribute products to predominately enterprise users Globalstar revolutionized the sector with its push into the consumer segment –
Slide 10: 5.75% Notes Exchange
5.75% Notes Exchange On May 20th, 2013, Globalstar successfully completed a refinancing of its 5.75% notes by entering into an Exchange Agreement with the holders, resolving the April 1, 2013 put Thermo invested $25 million into Globalstar to facilitate the transaction and an additional $5 million
Slide 11: COFACE Facility Successfully Amended
COFACE Facility Successfully Amended Facility Amendment reduces near-term principal obligations and materially improves financial covenants Consent Agreement executed May 20, 2013 and Amended and Restated Facility Agreement effective August 22, 2013 First principal repayment date will be deferre
Slide 12: Globalstar Worldwide Spectrum Allocation
Globalstar Worldwide Spectrum Allocation Globalstar’s spectrum allocation is the world’s best model for globally harmonized spectrum, representing the only globally harmonized spectrum position of this size in the world. Globalstar holds worldwide authority from the ITU for 25.225 MHz of MSS spect
Slide 13: Globalstar's Spectrum Plan
Globalstar’s Spectrum Plan Near-Term Plan: Obtain regulatory authority to provide terrestrial wireless services, including mobile broadband services such as TLPS and LTE, within Globalstar’s exclusively licensed 2.4 GHz spectrum Long-Term Plan: Add Uplink spectrum within the AWS-5 Terrestrial li
Slide 14: TLPS
TLPS TLPS provides immediate solution to acute “Wi-Fi Traffic Jam” — 2.4 GHZ unlicensed spectrum is exhausted without an alternative solution “The Nation’s demand for unlicensed services has increased so dramatically that we need more spectrum to support these services. The 2.4 GHz band, while criti
Slide 15: Historical Financial Summary
Historical Financial Summary Post-Thermo acquisition in 2003, and up through 2006, after which constellation issues presented challenges, Globalstar operated a high growth and high margin business Globalstar was able to leverage the highest quality voice service and least expensive equipment and
Slide 16: Recent Financial Performance
Recent Financial Performance DUPLEX ARPU Duplex ARPU Highest Since Q4 2009 $23.00 $22.41 $22.00 $20.68 $21.29 $20.43 $21.00 $20.03 $20.00 $19.24 $18.87 $18.95 $19.00 $18.33 $18.37 $18.49 $17.83 $18.00 $16.74 $17.00 $16.00 $15.35 $14.99 $15.00 $14.00 $13.00 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q
Slide 17: Globalstar Value Drivers
Globalstar Value Drivers Debt refinancing provides financial flexibility and eliminates near-term financial uncertainty Operational Second generation system provides significant cost benefits and network performance Improvements & Second-Gen enhancements years before our competitors With the
Slide 18: Annex A – Reconciliation of Annual Adjusted EBITDA
Annex A – Reconciliation of Annual Adjusted EBITDA ($ in millions) 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A Net loss $0.4 $18.7 $23.6 ($27.9) ($22.8) ($74.9) ($97.5) ($54.9) ($112.2) Interest income and expense, net $1.3 ($0.0) $2.1 $5.9 $1.0 $5.9 $4.6 $4.8 $21.5 Derivative (gain) loss
Slide 19: Annex B – Reconciliation of Quarterly Adjusted EBITDA
Annex B – Reconciliation of Quarterly Adjusted EBITDA ($ in millions) Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Net loss ($33.9) ($35.6) ($19.2) ($24.5) ($18.1) ($6.5) ($14.1) ($0.7) ($33.7) ($24.5) ($27.5) ($41.2) ($19.0)