NEWS
For Immediate Release
GLOBALSTAR ANNOUNCES SECOND QUARTER RESULTS FOR 2011
Key Quarterly Highlights:
| · | Globalstar completed $38 million private placement capital raise |
| · | Company increased total revenue for the quarter to approximately $19 million |
| · | Globalstar activated more than 19,500 SPOT product family units during the quarter |
Post Quarter Highlights:
| · | On July 13th the Company successfully launched into orbit six new second-generation satellites |
Covington, LA. -- (August 4, 2011) – Globalstar, Inc. (NASDAQ:GSAT), a leading provider of mobile satellite voice and data services to businesses, governments and consumers, today announced its operational and financial results for the three-month period ended June 30, 2011.
Major Company Highlights;
| · | On June 21st the Company announced it had completed a private placement of notes with select existing institutional investors including Thermo Funding Company LLC, raising initial gross proceeds of $38 million, before deducting fees and other offering expenses. Under the terms of the transaction, Globalstar issued $38 million in principal amount of 5% Convertible Senior Unsecured Notes and warrants to purchase 15.2 million shares of Globalstar common stock. The Company intends to use proceeds of this financing to meet a portion of the Company's short term capital expenditure needs, including procuring and deploying its second-generation constellation and other operating costs. Investors have the option to invest an additional $12 million by September 15, 2011 under the same principal terms. |
| · | Globalstar continued to establish its consumer retail market success primarily with the enhanced SPOT Satellite GPS Messenger. During the three-month period ended June 30, 2011, the Company recorded 19,578 SPOT product family unit activations, the highest number of SPOT product family activations in a quarter since the Company began selling the revolutionary mobile satellite consumer product. |
| · | Due to the continued growth of the Company’s Simplex data business which includes both commercial M2M and SPOT consumer products solutions, Globalstar recorded total revenue of approximately $19.0 million for the three-month period ended June 30, 2011. |
Post Quarter Update:
| · | On July 13th Globalstar announced that six new second-generation Globalstar satellites were successfully launched from the Baikonur Cosmodrome in Kazakhstan, using the Soyuz launch vehicle. The launch is the second of four planned launches of six satellites each that are contracted with launch services provider Arianespace. |
“The post-quarter launch of six additional new satellites represents another major milestone achievement for Globalstar, as we continue to deploy our second-generation constellation,” said Jay Monroe, Executive Chairman and CEO of Globalstar, Inc. “Activating a record number of SPOT units during the quarter continues to demonstrate that we have established our leadership position in the consumer retail MSS marketplace. Once our launches are complete and all of our new satellites are fully deployed, we anticipate Globalstar will offer the world’s most comprehensive lineup of commercial enterprise and retail consumer MSS products and services in the industry.”
Total Revenue, Adjusted EBITDA Loss and Net Loss for the three-month period ended June 30, 2011 were $19.0 million, $1.2 million and $14.1 million respectively compared to $17.6 million, $0.3 million and $19.3 million for the same three-month period in 2010. Revenue for the three-month period in 2011 increased due primarily to the increased number of SPOT and Simplex data subscribers and related service revenue and equipment sales. The decreased net loss was primarily due to a change in non-cash items including an increase in derivative gain/loss of approximately $11.9 million offset by an increase in depreciation, amortization and accretion expense of $6.8 million related primarily to the new second-generation satellites coming into service. Globalstar’s consolidated statements of operations and other financial and operating information, for the three-month period ended June 30, 2011, appear later in this press release.
Conference Call Note
The earnings conference call scheduled for today, August 4, 2011 at 5:00 p.m. Eastern Time, will discuss the second-quarter results for 2011 and other matters.
| Details are as follows: |
| Earnings Call: | Dial: 800.573.4754 (US and Canada), 617.224.4325 (International) and participant pass code # 58120236 |
| Audio Replay: | A replay of the earnings call will be available for a limited time and can be heard after 8:00 p.m. ET on August 4, 2011. Dial: 888.286.8010 (US and Canada), 617.801.6888 (International) and pass code #36541294 |
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to commercial customers and recreational consumers in more than 120 countries around the world. The Company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems, the SPOT Satellite GPS Messenger and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications. All SPOT products described in this press release are the products of Spot LLC, which is not affiliated in any manner with Spot Image of Toulouse, France or Spot Image Corporation of Chantilly, Virginia.
For more information regarding Globalstar, please visit Globalstar's web site at www.globalstar.com
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For further media information:
Globalstar, Inc.
Dean Hirasawa
(985) 335-1505
Dean.hirasawa@globalstar.com
Safe Harbor Language for Globalstar Releases
This press release contains certain statements such as, “Once our launches are complete and all of our new satellites are fully deployed, we anticipate Globalstar will offer the world’s most comprehensive lineup of commercial enterprise and retail consumer MSS products and services in the industry,” 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 which may cause actual results to differ materially from the forward-looking statements. Forward-looking statements, such as the statements regarding the Company’s ability to develop and expand its business, its anticipated capital spending (including for future satellite procurements and launches), its ability to manage costs, its ability to exploit and respond to technological innovation, the effects of laws and regulations (including tax laws and regulations) and legal and regulatory changes, the opportunities for strategic business combinations and the effects of consolidation in its industry on the Company and its competitors, its anticipated future revenues, its anticipated financial resources, its expectations about the future operational performance of its satellites (including their projected operational lives), the expected strength of and growth prospects for the Company’s existing customers and the markets that it serve, commercial acceptance of its new Simplex products, including its SPOT satellite GPS messenger TM products, problems relating to the ground-based facilities operated by the Company or its independent gateway operators, worldwide economic, geopolitical and business conditions and risks associated with doing business on a global basis and other statements contained in this release regarding matters that are not historical facts, involve predictions.
Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and Globalstar undertakes no obligation to update any such statements. Additional information on factors that could influence the Company’s financial results is included in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
