Earnings call transcript Q4 2022

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Operator

Good morning, ladies and gentlemen. Welcome to the conference call to report the Fourth Quarter 2022 Financial Results for Telesat.

Our speakers today will be Dan Goldberg, President and Chief Executive Officer of Telesat; and Andrew Browne, Chief Financial Officer of Telesat.

I would like to turn the meeting over to Mr. Michael Bolitho, Director of Treasury and Risk Management. Mr. ahead, go Please Bolitho.

Michael Bolitho

good the morning, XXXX year the SEDAR. XX-F and annual on filed report with on and for ended SEC morning. you, we This our Form Thank December XX,

contain remarks may and forward-looking uncertainties. unknown results from statements forward-looking Our a materially may statements. are of Telesat's differ by risks contemplated results risks result There the as actual that the and today known

Telesat's responsibility annual SEC. For update report President earlier Dan risks, a Officer. discussion forward-looking the no of Goldberg, Executive today now call these Telesat revise see assumes will turn to known or with Telesat's I over Chief filed statements. and the to

Dan Goldberg

Michael. to will open results over detail then Thanks, on hand we morning, an the thoughts and Andrew, then business. some our and will who questions. numbers I'll Okay. to financial to in speak I'll update This the share give on up call the

quarter We guidance performance numbers. Looking guidance the when year, landed. we outset updated well the the at year our released we I'm shared financial where of as and as our beat gave the at the with full we for we QX the pleased

with continue of billion manner, in and business We closing on run the EBITDA cash roughly of adjusted a disciplined the highly to also XX% the and $X.X year an margin focused with sheet. balance

pleased and throughout was operating pretty up stable was I environment see from utilization on overall and As the mentioned demand pricing call, year. we perspective, last our our the a tick to capacity

FX this year renewal the for it be headwind of first for on satellite. the four DISH and headwind months was XXXX will big our Anik Our too a

DISH even year. than deal. EBITDA was and didn't we lower last to it renew, rate still resold experienced biggest that in was of for contributor a and the And less promptly the capacity the revenue As we balance capacity decline adjusted the we've it the discussed previously, previous though at

in recognized we the the revenue research with Also DARPA, DoD's noting QX we US have contract from worth was the arm.

revenue though $XX key of shortened expense, meaning its made the feature approximately a thing it The good As government is amount to Lightspeed broadly the we contract the But us last neutral. in FX year said about is EBITDA life. our are to efficacy inter-satellite before, to EBITDA had equal and line an optical it else about to dilutive the last all note before, generated that work for I'd million our which demonstrating we've neutral links, even because discussed we which and strategic US the satellite performance satellites, market it our do kept was something that at Anik essentially was and overall capabilities margins. that the and in of sense was contract on more on station anomaly

an enough, we FX as As capacity upgrading good a that really bought another operator, orbit needed well. where job from other other we've wasn't with and Anik on extend services including who in satellite our satellites covered last satellites to customers in and infrastructure done to call, ground transitioning third kept think satellites, station party our users Telesat I we

we've revenue excellent guidance FX all some captured for year. work, we expect As getting over to OpEx in with additional year, we of XX% there's expected that CapEx incurred of recognizing our retain a result the this Anik OpEx the from originally this and

here wanted will know his contributors. We're issued two this XXXX that I release to the forecasting speak and plans adjusted EBITDA biggest in and remarks. in Press to guidance, to our decreases Andrew out we revenue sets just morning flag I and

of show up this mentioned headwinds year. the renewal, four months from residual moments Anik which the the a FX The DISH few first, is will as first I ago, in

X to an The October time, second the this X, expect with expected At decline year. one. revenue renewals, in this two Bell capacity lower for but of and renewal up all this and Bell half our account for at anticipated we early than Bell rate renewal Those comes is adjusted approximately for renew DISH Nimiq which the for DTH a current materially EBITDA Nimiq on year.

the to So increased where we additional not certain cover of make the sense earnings we're were around the year. better cost status a and On said, our of engaged we parties call, of to financing have as that to yet. with there. know that stand to get we discussions in position others we're we now we on the of and We sources where the with need that on program, with to secure progress continue well end and the QX going we'll financing we expected Lightspeed. Telesat Unfortunately, financing we program we provide there's soon. want clarity we're stood be reiterated assurance the there in the optimistic that That recognizing, financing forward move investors that of to and a various we no to course, clarity with hope the to Lightspeed on remain that ultimately

that to Telesat's Board the best has the repurchases such of repurchases company. share that authorized for cash wanted up our if of million debt in we interest are management to Finally, $XXX determines in

you Andrew, to then With any addressing look to questions that, I'll have. and hand forward over

Andrew Browne

the million, like the little excited Thank a morning's Good with EBITDA with reported $XXX Dan. of back generated revenues cash adjusted the focus now of XXXX and million, was $XXX cash go $XXX adjusted million, billion beginning. $X.X generated ended everyone. [Technical EBITDA $XXX on Telesat balance end. Telesat from million from revenues operations with release million] I and Obviously, just press morning, would highlights year cash year of [$XXX I'll to bit sheet of and Difficulty]. on XXXX filings. reported very of ended to year this at at you, of Anyway, join. the somebody

which in of quarter year. of last generated increased from guidance, XXXX fourth outperformed the Telesat cash of $XXX Dan In and million. revenues EBITDA of reported financial and $XXX actually quarter adjusted issued second we operations million our when we As August has results XXXX, million, updated $XX we our mentioned,

quarter For XXXX million same million, and impact million exchange million operating changes $XXX $X to rates, in compared impact When expenses adjusted EBITDA. dollar to million EBITDA a was by revenues adjusted for to foreign the and of operating of in of million $X positive adjusted increased by a by XX.X% in exchange compared million expenses $X $XXX negative of by increased had revenues, $X impact to on million. Overall The the to million, and in the operating expenses million was [increased] noncash $XX Between period decreased in compensation year. $XX the $XX of a changes $XX the million. expense EBITDA adjusted increased $X revenues of increased EBITDA adjusted XX.X% related $XX period XXXX, based in decrease and to last XXXX a margin US by results same positive rate million. fourth by million $X XXXX share

on The were maritime DTH mentioned, partly impact offset due was of rates a primarily bonus as Looking Dan senior the long in equipment a related higher XXXX. the foreign customer. sales in based an by renewal the noncash primarily dollar conversion Interest sales has partially due the to XXXX. to lower increase by an to increase The US debt. and expenses period US at the B higher term share facility upon Loan $XX offset to quarter Term was exchange to by was denominated compensation due in the in expenses American operating increased previously compared well from revenues by OpEx, million impact with North to with This equipment relating increase of of DARPA and when the in expenses increase unsecured in combined of completion lower at aero mentioned, agreement a program, partially fourth interest offset XXXX. retirement as revenues customers. of same was notes reduction in the revenues. revenue as DARPA, the as repurchase This the

as in and of a represents This million. million previously, These interest reminder discussed million. notes gain $XXX XXXX. principal CADXXX a an we repurchases $XX.X a approximately of repurchased in resulted amount As savings of annual with also

dollar resulting 'XX US mainly result of stronger rate debt. a to $XX in compared the December of the three US compared dollar denominated to favorable million our as fourth of months exchange for ForEx, in gain as in of ended XXst with million The the spot the Canadian on foreign in 'XX translation quarter XXXX. the quarter, a of was the September dollar gain XX, impact of gain we fourth the to recorded $XX of

US with year of activities $XXX partly fourth expense. gains noncash way principally fourth clearing $XX foreign income higher of $XXX year. The was of quarter from one Our of compared along offset due for income to million the the of net C-band million, a by last operating of last $XX remaining exchange same receipt lower clearing the XXXX to net year, tax with prior Cash stage in inflows [included] was the US in million ended million were by cash XXXX, payments year the $XX the of million to flows compared period recognition proceeds. variation for the the quarter C-band

In $XX approximately to approximately and terms million of $XXX of forward expect received million. proceeds have we overall C-band proceeds, date

visibility between activities earnings adjusted in assumes $XXX to Earth of we has million XXXX Guidance, the further be XXXX, cash will million. guidance expenditures mentioned be rate dollar of you've between on capital during Lightspeed. X.XX. capital our expect anticipated Once its dollar US Revenues Low we to used program, are construction in and Orbit our to around provide to our CapEx, of and $XX $XXX of year flow Telesat $XX Canadian provided be in for range XXXX XXXX, and greater Dan EBITDA, million release, a we have preliminary Telesat our year. Telesat to terms all The EBITDA, expenditures for expects financing investing terms million $XXX noticed our virtually In we expects related million. in the guidance. as Telesat the Adjusted have million. revenues to Lightspeed to exchange the of $XXX full update

term of Approximately under expected of as and $X.X cash interest unrestricted is XX December expenditures, we as end million $X and subsidiaries. capital the the well short revolver. our including requirements cash in meet To our approximately our at held investments in $XXX payments for next available borrowings billion of approximately billion cash months, have

of ongoing operating In addition, a generate our continue from significant to we amount activities. cash

to the fourth authorized the of As terms covenants quarter, minor and provided from At and indenture. in this leverage subsidiaries of provides also end the are all has with repurchases of our unaudited X.XX subsidiary financial report Board calculations $XXX between complied covenant reconciliation in has morning, our cash financial the times and indicated The was unrestricted with our has determines facilities information statements debt condensed a million this XX-F company. our the the be credit we Telesat differences. under filed secured credit X. essentially the shown interim in the the amended calculated consolidated agreement financial A Dan is of the management the if upto interest as non-guarantor best repurchases senior morning, to NDA. in

call remarks that, I back answer now the have. the So for with may happy we'll think And to than be questions operator. prepared we'll any more that concludes you our turn to and

Operator

the first question from LightShed? Piecyk And from Instructions] Walter [Operator is

Walter Piecyk

obviously escalate same thing you that kind something is CapEx. SG&A with of Lightspeed, start to with proceeded if So would

do basically getting on the just or get given we this can you're valuation So kind financing OpEx financing you of that in get that increased should financing, ongoing engage CapEx go you the level some these ahead terms going start for queued until you expectations to purposes we up confidence of that Lightspeed? get and actually guys in SG&A because to have you're optimistic to freeze delays for

Dan Goldberg

well. can as I'll take then shot, Andrew a Maybe and chime in

the doing side company work been in our so it, development then right? second, of guidance work our just forward Lightspeed EBITDA And of going that CapEx, so it. go lot on got together doing lot are year we've into we're giving the budget takes to for the confident a for dedicated that, the yes, our we're forward So the the and it's that a side now We're investments. to we're account of making on people but and putting on the on it. program. we've We're guidance, part spending right moving guidance, So real a OpEx in on Lightspeed, with spending

underway guidance was to because Lightspeed fully side, guided year, the once less, On that we've to million. say said underway, got $XX fully our forward. spending of we've full $XX $XX update that $XX look million than it's kind $XX million CapEx our I is to think of outside careful we'll once million the the million more Andrew or but certainly, a million The CapEx lot a just to different $XX moving will spending program to

So you add to Andrew, if don't that? know anything want I to

Andrew Browne

fact, the and And our And I indeed small soon And on look you had you Dan, there. in back indeed, increase adding and think prudent. terms ahead see had the said, as we've you is will we as implied SG&A prudent. we the OpEx that said, very got resources. perspective if as guidance, very as are year-on-year. guidance about we're Lightspeed, Dan in for Dan as at CapEx, said we're in that talk But pretty come go of for

Lightspeed. until have until we're prudent on So the we continue ahead very to be -- go very, we

Walter Piecyk

a the at you that on the question to going can OpEx number, investments the to give SG&A rely on we what so either you if it of like base valuation, the which And view reason a has these you changed EBITDA okay, by ask So from delays of I least is sum what diluted valuation mix percent follow-on can revenue the getting back your point my standpoint, because of some of the is X. has Lightspeed? up, be financing which changed of opportunity a do market currently would side say of on say, based core like parts meaning is at is

old parts the three a it now LEO, not opportunity, this to So screw said, forward more; very third, -- I get that but where that really OpEx outlined, and OpEx well which know if going can almost drop whatever say or if your I can point think, in confident or market reason, to secondly, question; that going year why move that of percent; that's, percentage do you're can can revenue two a to you happen, I think, is document to that there's remain we then has this a guess on by Lightspeed you for I just X here? is happen, you

Dan Goldberg

to? Andrew, want you

Andrew Browne

in Lightspeed spending, as go through that the ahead. a do of of you Yes, we're if ahead. capitalize program of we're was the confines that the total even it the give in therefore, And our And continue we're we box just off was go that, about go see as Dan of But and will terms up within OpEx cost indeed program our sense year, operating we DARPA made that wouldn't driver totally the last to that will we until OpEx. we about itself. and $XX determination said of what big ever to million that confident has

we indeed, got costs out in not customers in that full is the to to go to it green And full the have we significant. incremental make terms year-on-year, we'll and you rolling ahead, once attacking business will the plans market, very guidance the light communicate then back So clear. relation LEO we've that that that of to plans, infrastructure, come ground very, it did,

Dan Goldberg

everything it's Lightspeed. where some forward kind legal that We're And on it's totally for maybe the LEO the constellation we And experience investment we're the the to market having the that. asked we're customers, intact, right? in of I it. opportunity. to driving importance achieving a way offer passage forward grade, Ukraine more LEO Lightspeed the to I'd Lightspeed, I'll also right move well not distributed a users, optionality which a bits, certainly, government us over If latency, cost And that taken our a think the are highly conversations small terms I see all we on there's for required having anticipated. that confirmed don't with enterprise around that thoughts sure a us of convinced network, down a has, Certainly, and of per the we're believe We work value crucial we no the commercial to originally there. to we've the business of with There's logic the lot that all the had the that it's with conflict with path having terminals, a had say, lower to user anything, move while shareholders. because than constellation. in and is with focused of how compulsion think I'm But enterprise with have to great how say seen just and just commercial of more focused constellation, to last for the huge and we thesis reinforce well create know, low go of that importance. time, continue LEO original that's longer engineered, strategic But equity been is for around we grow on yes, executed, Starlink all great that

there? so to developments, seeing of have persuades path. we're another that $X that commitments. we up get We've think will commercial a I of good backlog. anything million technology in not a anything us terms already of worth We've ton different We've on that lined momentum that, got over developments, was say confidence isn't this. financing $XXX already which ultimately like something And that's is that of Why this billion question. got

our So got got we've support we've strong support we've our customers, strong got from government, support strong from from Board. our

right we're longer last of to cash I We've on we're will look, we'll for sheet confident if don't, generating left like And perspective, but is good say not anticipate is over I $X.X is were but still, we they a good on. Lightspeed balance But we still and in amount for think, different And It's questions. some right I revisit that now. our if got we significant of don't horrible make place. we reason, the right cash. ourselves answer, winded can something taking happens going I there. Telesat. all we're that in move from a wanted. then that a think that have Anyway, billion timing think, still reason than we then will, the if focused things, us for I'd we a those a yes, get place. what some thing Lightspeed, think But feel now there's it. So of it's we're long

Operator

Ares. question is from from Marcello The next

Marcello Chermisqui

kind Chermisqui This Form questions. had in I the new of seeking a or partner there's is are equity Ares. investment couple GEO looking even from to not LEO manufacturer equity with was an that raise or operator? it are fund just a a you Marcello capital, for, actively to network provide satellite One comment you Lightspeed. you're What to for looking is of funding XX-F partner another

Dan Goldberg

we And on I there's call. I potential with increases new there. on don't reiterated we were call our any that Lightspeed and think that think that said, our because investors, some news we cost of discussions last QX equity in

yes the the including the new french anything discussions been to of financing be which and kind think level financing. LEO engaged been we've sources there. for we've Quebec, in was that credit of and other of at export there's those be What they all BPI, we Canada they'd of said government be agency, And -- materialize, government subordinate the that with, would so they'd I don't so should -- investments, the

there. there's think anything don't new I So

Marcello Chermisqui

was should mind? it What that first the under next date week spectrum LEO we maintain development And authorizations? the relates to milestones, the in key April. dates order the I as the are in impression is keep in to US

what don't and that extension, happens? you So cannot negotiate if potentially date hit an

Dan Goldberg

the [XX-F]. our got a number The level. activities talked second the the -- are one But to rights pretty So as all there, -- services I we're the mean with to we're won't ready in move on well. we you IT the so round we've filings at around regulatory how say regulatory there, direct that regulatory need applications kind then we there processing forward it and different is weeds round lots about levels whatnot. get we've Lightspeed, I'm two. are bit world round provide there that and have processing know I'm to I it. the regulatory disclosure that There -- a considerations around the stuff, that well, know going to into FCC about the and round. And XX-F. of at that's level I I versus to and do of confident need there but when we I as in regulatory have thinking little what of provide. some to the the first I got

Marcello Chermisqui

or point replace decision in guidance the I relates have cost GEO ones up in aging want GEO million, what in take path million path CapEx make to the XX-F, think a that's $XX step as potentially $XX you'd launch satellites? satellite the you to is to you you And that do you satellites, $XXX million, to you another of the but it have to have increased the invest to to want to to implies about? CapEx know also there at you which to million $XXX whether if new

Dan Goldberg

of we spend or are business any convinced expansion for kind going satellite frankly satellite case or a a CapEx it it. replace GEO strong take satellite GEO if we've launch satellite. We're to an by only got We'll

comes and forward some satellite some newer hard the a have can other out as up towards best I satellite life, so evaluating there what's can mean And are things of a of there that end here. well. look some of life the we've there whenever been are And kind at extend we those way do. we its of the technologies the

building there from to have we that, tell, this up time renewal. can satellites see, of a year satellites business just got at we've sure now yes, have as I on time satellites. But make every replacement is any or right of plan for replacement can right risk So we and expansion return for open to that. don't adjusted right do come evaluate don't that. But in you basis say stand-alone for kind kind looked a on when to money of GEO CapEx that though, any doing spending GEO And on now new rate those strong now, opportunities to our -- least right at just GEO satellites this to open case spend plans and to you we're as now, We're we'll year.

Marcello Chermisqui

kind Lightspeed, of end back would GEO potentially like from The that if was you not pursuing billion think invest segue subsidiary question would, in Like did up Walter's the how $X.X back to have earlier. that guess, cash you about or bring you of I cash. to you that? Is

Dan Goldberg

Yes, take. on could rather paths right probably what alternative speculate too much we I now not

As that. focus bridge yes, But cross there. get point, could doing staring nothing back? There's Yes, prevents moving we with that. I've we're I'm General on to said, we very that bring from we certainly and could. if forward We'll your that bullish our There's nothing Lightspeed us and is our on when cash at Counsel.

running business been cash and for been disciplined we've headed pragmatic how pretty and around our time. use We've we think a that. pretty about I this hard pretty long

again, the been that reason Lightspeed. forward that about then chat might now guys is we've some do happen, up. you we'll building for with right didn't cash So the we with what moving If with anyway, focus

Operator

from is Karsch question next The from Kennedy Lewis. Brandon

Brandon Karsch

guidance to want back turn here. to Just 'XX

bucket FX of you half kind little FX is any variances? other You degradation Anik much in that renewal. the any it or bit? mentioned Canada the of half DISH changes, a was other that the of from How core Could and business, Bell

Dan Goldberg

in with are said pieces was that other the QX, of So DARPA contract $XX DARPA. that We was that we onetime about kind that arrangement million. recognized a

then right there the accounts quarters piece mean, that beyond I big decline. another I of that's the roughly. three And So for, of revenue know, don't that, downturn

other here rate, to that, of renewals It's odds at may balance it's a be some lower lost some Beyond stuff that there, just decline. the a up whole the renewals. and of builds and ends bunch

Brandon Karsch

EBITDA I contract thought about was neutral. the DARPA

wondering… was I So

Dan Goldberg

contract right. The was was DARPA at contract line. I neutral. -- XXX% The more was DARPA the you're talking revenue EBITDA

party third So some of some on customers the we party some do increased the probably That's some from support that, we look, that anticipated need Anik drivers side, the of third there most capacity you relates stuff kind it's the of the the to But and customers other biggest the the these driven, so one downs accommodate more continuing -- coming side, And on need of there can we some and DISH, OpEx yes. on FX the there then to Bell are we're have OpEx FX. customer big support, to increases expense large ups OpEx of more Anik see, renewal of revenue are is business. on that are of regular driver but other to some countervailing as increases. -- of the capacity

Brandon Karsch

your confident building and that assumptions FX you prices here? you're expense maybe also of renewal Bell the you're what discuss around so Would into one budget get going to it renew the you're that the was be possible to to going until some Anik and what the quantify that makes

Dan Goldberg

on give mean, Yes, more I granularity I'll talk to going FX. we're don't think to candidly, any that. I

we've much And detailed we about like we've what this -- renewal that mean, think On them. big guidance very know look already. what like. the that had of baked lot conversations reflects we into nature the well, granularity on feels with them the lot of would this them of our deal We've with customer. the pretty fact Bell, confidence our a from I yes, I been they're conversations that a having given a stems

gives what there. the that's So us confidence

Brandon Karsch

on and then since done quarters been all? that good off a bond that see it's you've any. your appetite been you've at to holding few the But And buybacks, changed that buybacks, any for you reauthorized more but reason has

Dan Goldberg

figuring like companies issuing are securities, you -- terms buying back. of securities regulated in when It's heavily public so out

good a of everyone we've And our tried and for sense of always about know, just So what with from it. out pretty our clear be to were, intentions considerations lot we've Board time. pretty been the at are has kind I about market there don't we're thinking so authority there a how getting the what

-- know Board mean, account. of into is say that kaleidoscope debt repurchases. do account. terms increased don't can would to of has our terms we taken I kind in those out are We've The what all we factors I So take of into there there I authorization in of need

really think particular. have our that restricted in think of could debt think debt and we trading we cash debt we use that represent that of said at current group that value prices we always I be builds the these a believe we've the that levels, don't in it good up fair

And so the just out if in we right that we've Board. thing everyone from do this yes, that debt. in and aware be that market it's going the And to to know got we've of do to we saying increased that we’ll just authorization think go yes, but that wanted to make any letting to back the everyone the Not authority that. event, we're aware repurchase it. got market And wanted I just the the

Brandon Karsch

I if just in sneak more And could here. one

momentum the heard you've had been the to appreciate it building, you couple similar pretty like sounds last Just some that of side, quarters. say the but I has on Lightspeed commentary we've that what

subordinated private to at least incremental you that? that's else could from anything talking for think are come there's going this So think maybe share, capital, this or if maybe do do you to at you entities you investors government point,

Dan Goldberg

with financing are we financing good say pretty that be. want feel sources for don't those could will discussions to sources need. the in the who that are. get where conversations about I funding I into potential we I

to the say so over, offer it to move funding But we're that yes, do yes, remain guarantees. Although, Yes, that to And I to much that, no optimistic forward. going I insight. until ain’t I don't need Lightspeed personally, over that excited think we're we get more can incremental it's only that.

Operator

from from is question next The Paribas. BNP Arun Seshadri

Arun Seshadri

Lightspeed three parties, last Most that asked, have on have the the been would just mean, I been partners today months ago? or confident the have emerged topic, have a make would few or you I some been more months than bit different there either question way. a that in little investors could ask you new six

Dan Goldberg

and And LEO you in that work with, that maybe there our a a already a so think say, that. our right opportunity say have a opportunity there's there financing we've we just LEO out now, if already got many the vision and confidence big is up, financing line reiterate, on. a I'd I'd that that there's already there. would put say we Arun, amount of you lot of need, interest -- money what share are can aren't on that of again to -- I a gives I so, bullish lot are of that us of kind significant lot which There lined that operators the parties

a say them. So that supporting get like yes, that's would do in that we there with there in folks. ours, we're what investors interested are are project out there we'll I discussions if with I think see and

Arun Seshadri

think away theoretically And you how as or do the like longer? as would then mean, month a you be is would this announcement couple goes, far timing an you I could timing months on say of of handicap significantly Lightspeed? or a

Dan Goldberg

I that I'm gotten so having wrong no, to low not conviction And -- bringing to going before, happen, sort to because am. it's I Look, I but like this it's don't this all of just longer has anything say I to on taken it. us close don't want had a yes, just keep it's anticipated. tempting. -- let just But definitely want but working to than I

all all progress, right. using it we I think easy the clarity. say balance this things. cash all opportunity money, sheet, start some We offer the out already I be on we've all think like blowing terms hate we'll thing great is the we're want able spending got making would doing oh think say, would here to I still some get ways brains just we'll I this in screw, near be term. but lined this, just a say and I'd up to our right we're I have in to we've That's money. And and other our

do stay We that. tuned. it And haven't wanted to anyway, like -- so

definitive say to something we're the I in be more And think again progress. we'll near able making hopefully, term.

Arun Seshadri

changes last project Is et terms? in -- some new cetera, are any or finalizing Lightspeed One additional there the result on the and there a overall of of investors, the the scope I thing possible probable topic. potentially mean, as

Dan Goldberg

It I it's back. it's Lightspeed. the need we tweak don't thousands satellites things. we to other that than think We enterprise massively for on. do to some really efficient, some step fewer a capable opportunities to just that folks deploying. just to satellites are good and of we're focused Maybe that the design a of much are is there the think serve have effectively market government we've that Potentially, capital that designed, Fundamentally, a constellation

core of little think, the we've Yes, So satellites, intact. all Is a so to optical little tweaking digital blocks think those be things, that there things here that. I antennas, building of inter-satellite and been and project, further? bit of I'd links, couple maybe the remain exploring some of done process can fundamentally, say a payloads, hundred there improve I

Some market do that, that tweaking design potential focuses to But And of talking areas. that intact. we in their particular I'd focus do. say, have investors they're they our of again, we've address the to terms remains yes, about, markets on. Yes, customers beyond the the that can focused about, there's been fundamentally,

Operator

next The from David from Jefferies. is [Windley] question

David Windley

the of Most but there bit a me. others answered, little you function anomaly just increase, other one of there? that have or or the was more about mine talk been on a from stuff is Could maybe utilization going two

Dan Goldberg

filling doubles, some No, bit steadily frankly, been and who's close little satellite maybe had less think or up beams of past one a utilization lot it's if promised my I'm totally that hitting at by of No, have past, we after in I utilization. this. something. colleagues, the quarter quarter, is meaningfully in a just affected of out just the a service singles to coming looking

just constantly that think is regroom the a some a good business that like to you the I It's ways looking ours case got capacity. for we've out always in that areas in very capacity team of sell and flexibility capacity continue to demand. always available other do where have and opportunities in to have areas capacity you're looking there's satellites just But for hot you swap to around, very certain less the are that.

increases So up. good just, planning XX%. And filling the as come have good from now, chipping utilization our Demand, said, that's we've careful has what right high look, and trenches, is been away at just in yes, capacity the pretty making pretty utilization decisions.

from job you in do good can the there be think I across as we industry, of the up if up I And and it'd that's kind there. see we've we the it's way look just of you the But capacity building go satellites to do approach the utilization. cash in. use a be think easy for not new of us two full that all throw making terms buy got to and them of yes, up, out GEO we're investing business. been

David Windley

the to later around can all give And then Are this on? maybe us the that color I there can any maybe Bell part you bigger any other of or maybe 'XX you renewal the appreciate contracts other for year. some point ones us color early that

Dan Goldberg

kind other the think that stuff I up. more meaningful comes of

and additional renewed we DISH renew got to So two they've year. for an option years for an

So probably just with QX beyond memory I more be Nimiq that later would next then something think coming X serves year, for renewal. And QX QX early that, next would come looking up like like right. of year, kind DISH up if at that's

are up those ones meaningful I'd the come say next. that more So

David Windley

that, potential that me. years' launching thinking the And something time constraints be quickly? is about last that be spectrum But something satellites in about one then one with that? pretty five be or how guys just how Like on issue could thinking we should other we from like should Ka-band an

Dan Goldberg

the business Lightspeed a comfortable objectives. going access that have us we with that a to coordinating regulatory all got doing, there that spectrum allows operators to our been the out way need and rights From whole plan we that everything and see to feel we that analysis the to team we've we're whatnot. operate right We've in to now that's other dedicated achieve and

but to. need. our in And we again, access So to yes. satellites we lot the lot of satellites, that we've that that using, hundreds of few a got have flexibility to we believe be are very they're it's of beams how we're that going terms They and And that terms a the advanced. ability of spectrum look, good constellation pay operate a use and something we're hopping the we attention of in

David Windley

years So that's something with not out or an industry but projections? you maybe problem something, maybe just think becomes wide any current XX

Dan Goldberg

to a is some spot. an Yes, could hard the say. I think At that that resource. good finite in Spectrum foreseeable future point, become I think. a issue for certainly Yes, we're

Operator

next DoubleLine. is question from Raghav from The Garg

Raghav Garg

Intelsat. SES has confirmed talks with

soon with patient? do or like need general you merging be feel Just be Do wanted OneWeb. just to something Inmarsat Viasat with and get your to thoughts on M&A in do to Eutelsat, you

Dan Goldberg

we And by rumors those that's I We we're that can't the rumors Intelsat. place M&A saw it, morning can't surprised around about would the that and say this were and I in SES new sector. say nor reports taking that surprised activity by say are the

OneWeb. think these I while that certainly entering me, I a of cycles. that the pending. sort been if supply the think something good it see anticipating of for SES It's the of and Our are one a to on industry for We'll and prior Inmarsat, correct. has I another through rationalize it's rumors call, gone will we've around think with We equation. balance, merger and clearly Viasat into Eutelsat, are a it thing me and On feels industry. Intelsat cycles the said those side we're feels help to I've

it. For us, I'd about say we'll be open minded

that's monitoring community the user important in operator I the think the true. or why -- bringing been have I been I how best have on future. but the most in to government changes wants based use and infrastructure that very we've the to customers. whether cloud, forward, value the for any is e-commerce -- most space thing closely been a applications, to your to like proposition the needs don't sounds it's it's know do we've customer truism, focused the whether we've that that whether because compete of that's Lightspeed so seeing And but mean make

that that network points us, a For to Lightspeed. looks all like

to a that's think the in to you get thing the still want that as the and that having future. I operator, satellite customers think important want most the today right they're offerings going

now. our right So biggest say focus I'd that's

opportunity are and -- those right our there seeing if headwinds global we've look it's Intelsat, on industry markets. and with where transparent mean, business, folks, on And we've where been been there's a And the I satellite the you in now I growing, where look DTH at growing pretty connectivity. look, broadband it's world is massive we're that with

that if requirements. think state-of-the-art we I to get yes, meet advanced the customers' right, infrastructure bringing So an

we think minded we I Does that close should about inorganic that be mean be would No. opportunities? good.

about think it. So anyway, how that's we

Raghav Garg

your capital on question Last structure.

bigger picture you, structure, obviously, debt just is have years can do how a your telling commented, market you on buybacks. question But obviously, these you trades, But capital your here. today. a debt address You where few can refinance to the you plan your you

you be it's to meaningful your do unlikely with just how deal structure due? time So capital the given a comes maturities that by plan Leo if the contributor, will any,

Dan Goldberg

can So about well. maybe it, say about it Andrew say I'll a a words as words and then few few

of a right Two, that you're not the we be have First a the be still cash years a of we've amount that obvious and amount we're on that look, move is meaningful raise how as of investors to that billion and matures. we're money off, fully now. comes the of I out when when doing and the runway as we've Canadian out Lightspeed quarters do I now, far cash, time we with timeframe to tied expectation with backlog we will it's mentioned, Lightspeed time my years future the It's expect be a in in there's future needing to And going we've so got debt, of Lightspeed, three you of to prospects lot Three, company about lot four we fair -- been sheet know, balance of it's going our it's refinance. even up probably it forward disciplined some now, either trigger about what equity and future, amount there. And have certainly have by amount out pulled an for that it. cash I out. the we along secured But that right, meaningful of Telesat been at enormous company haven't right on will EBITDA already generating about case when debt to about that's customers. of yes, that the dollars of on issuing it's off assuming think the coming think and the mean, Lightspeed that's about that or a in for I prospects

we place four a to debt to going we're executed so in be And going to quite side our side, I were from Lightspeed of bright. our more conversation the be lot are the where think the of will years going kind as or we'll the to now. place. have great be that prospects to be point or in result, growing think I equity that because helm are access as on changes And well having, that prospects the a taking to and be just I a on think there our capital the industry we're broadly

fundamental of I'd anyway, the it. out thinking terms And can course, in about there of potentially. we're something how say market or be we Yes, in that's then, more our opportunistically debt. do So

future. in think lot I we about That's the think of a we've it. that address tools how So to got

Andrew Browne

XXXX, From much cash, year maturities add my not XXXX. alone, indeed, out it, in I $X.X And billion that's $XXX can that, more perspective, there's to way pretty this that's generated the we over comprehensive. are see million

we way I think that see covered it. the

no more could there's So add. I

Operator

[Wei] And from question from Invescore. Mr. the will last be

Unidentified Analyst

have LEO. is need do satellite need of they being which or manufacturers? drop for an that those they dead raising point ongoing expiration at on basis And an agreements agreements or Just are this would they How in date money renegotiated a your the date to in impacting delays point? with at do supply terms be renegotiated, the

Dan Goldberg

you finally all sources that that received that, is who longer they -- the of that wanted. the we went it we had and to and was rescoping it prime get needed got took But with back and we out than bids and supply an back story. engaged the and and COVID a time hit financing chain Thales inflation we've contractor to on with whole basis updated Lightspeed updated lot we those that quite things business we a followed When to the was go pricing based from So I one that recent some their to our kind out plan. Thales, program hit, that the intact. as of together conversations been that with spend put And time all remains Thales. with say for And of that on and result would of effort it's and all that

the getting But pricing to other for the them. about one be recent in we've that it's the question. the launch also would pricing constellation going around confident those stations reconfirm vehicles then landing elements then that And Now with the case comfort they'll been I'd and the to say a elements need and we've us. But user is terminals. talking the that we've heard great them, with. working last from consistent prices we're to discussion of pricing that the big be some consistent for a price been feel program, with We other are that with their business

Michael Bolitho

participating full not the Operator, much. you look speaking in Okay. again future well, call, too for release our year conference numbers. in and with when forward we you Thank all you results to we our QX distant very thank

much. So thank very you

Andrew Browne

much. very you Thank

Operator

disconnect thank this you. at Please has time, your lines Thank participation. conference we ended. your and for The you now

Telesat (TSAT) 29 Mar 232022 Q4 Earnings call transcript