01—Abstract
Summary
Summary of the 10-K/A filed February 26, 2016. Cited figures are marked; the original filing is the authoritative source.
This document is Amendment No. 1 (Form 10-K/A) to Globalstar, Inc.'s annual report for the fiscal year ended December 31, 2015.
The Original Filing was made February 26, 2016. The amendment's sole purpose is to remove the word "unaudited" from the 2015 column heading in the Ratio of Earnings to Fixed Charges table in Exhibit 12.1. It also includes new Section 302 certifications (Exhibits 31.1 and 31.2).
The company states that no other changes were made and no financial information was modified. Because of this limited scope, the excerpt provided contains no operating results, revenue, net income, balance sheet, cash flow, segment, or guidance data, so it cannot support an analysis of Globalstar's 2015 financial performance. Investors seeking those details should review the Original Filing filed February 26, 2016.
The cover page does provide some context: Globalstar is a large accelerated filer listed on NYSE MKT, non-affiliate market value was about $855.8 milliona as of June 30, 2015, and 904,490,041 voting and 134,008,656 nonvoting common shares were outstanding as of February 22, 2016. For investors, the practical takeaway is that this amendment is a technical correction with no change to reported financial results. It does not signal a restatement, a change in audit status, or a change in the company's financial condition.
02—Key points
Key Highlights
- The 10-K/A is a narrow technical amendment: it only corrects the 2015 column heading in the Ratio of Earnings to Fixed Charges table (Exhibit 12.1) by removing the word "unaudited."
- No financial statements, results, or other financial information were changed, so reported 2015 figures from the Original Filing (February 26, 2016) remain unaffected.
- New Section 302 SOX certifications are filed as Exhibits 31.1 and 31.2, as required under Rule 12b-15 for an amended report.
- Globalstar is a large accelerated filer with voting common stock listed on NYSE MKT and is not a shell company or well-known seasoned issuer.
- Non-affiliate market value of common stock was approximately $855.8 million as of June 30, 2015.
- As of February 22, 2016, there were 904,490,041 shares of voting common stock and 134,008,656 shares of nonvoting common stock outstanding.
- The excerpt contains no operating, financial, or forward-looking data; the full Original Filing is needed for a substantive analysis of 2015 performance.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2015, Globalstar kept $0.80.
- Revenue$90.5M100.0%
- Cost of revenue−$11.8M13.1%
- Gross profit$78.7M86.9%
- Operating costs−$145.3M160.5%
- Operating income−$66.6M73.6%
- Interest, other & tax$138.9M153.5%
- Net income$72.3M79.9%
04—Financials
Financial Highlights
Figures from 10-K/AFY2015filed February 26, 2016Financial Statements
FY2015 against FY2014
| Line item | FY2015FY2014 | Change |
|---|---|---|
| Revenue | $90.49M$90.06M | +0.5% |
| Cost of Revenue | $11.81M$14.86M | −20.5% |
| Gross Profit | $78.68M$75.21M | +4.6% |
| R&D Expenses | $1.90M$500K | +280.0% |
| SG&A Expenses | $37.42M$33.52M | +11.6% |
| Operating Expenses | $157.09M$185.96M | −15.5% |
| Operating Income | -$66.60M-$95.89M | +30.5% |
| Net Income | $72.32M-$462.87M | +115.6% |
| EPS (Basic) | $1.05$-7.50 | +114.0% |
| EPS (Diluted) | $1.05$-7.50 | +114.0% |
| Shares Outstanding (Basic) | 68.01M62.29M | +9.2% |
| Shares Outstanding (Diluted) | 82.03M62.29M | +31.7% |
05—Questions
Frequently Asked Questions
Does this amendment change Globalstar's reported 2015 financial results?
No. The company states that the only change is removing the word "unaudited" from a column heading in Exhibit 12.1. No financial information in the Original Filing is modified, amended, or updated.
Why was this 10-K/A filed?
It corrects a labeling error in the Ratio of Earnings to Fixed Charges table in Exhibit 12.1, where "unaudited" was incorrectly included in the 2015 column heading. The amendment also adds new SOX Section 302 certifications as required under Rule 12b-15.
Should investors be concerned about the audit status of Globalstar's 2015 figures?
The amendment's correction concerns only the label on an exhibit table. It does not indicate a change in audit status or any problem with the audited financial statements. Investors should still verify the audit opinion in the Original Filing.
Where can I find Globalstar's actual 2015 financial results?
The complete financial statements, results of operations, and related disclosures are in the Original Annual Report on Form 10-K filed February 26, 2016. This 10-K/A excerpt does not include them.
06—Continue