Summary
Globalstar, Inc. reported its financial results for the third quarter and the first nine months of 2015. For the three months ended September 30, 2015, the company reported total revenue of $23.7 million, a slight increase from $23.4 million in the prior year period. This growth was primarily driven by an 11% increase in service revenue due to a larger subscriber base, partially offset by a decrease in subscriber equipment sales. Net income for the quarter was $24.1 million, a significant decrease from $129.4 million in the same period of 2014, largely influenced by a substantial derivative gain in the prior year. For the nine months ended September 30, 2015, total revenue slightly decreased to $67.7 million from $68.0 million in the prior year. Service revenue grew due to subscriber expansion, but this was offset by lower equipment sales. The company reported a net income of $99.1 million for the nine-month period, a significant improvement from a net loss of $554.9 million in the prior year. This improvement was primarily due to a substantial derivative gain in the current period, contrasted with a large derivative loss in the prior year. The company's liquidity remained a key focus, with $28.0 million in cash and cash equivalents and $60.0 million available under an equity line with Terrapin.
Financial Highlights
45 data points| Revenue | $23.68M |
| Cost of Revenue | $2.91M |
| Gross Profit | $20.76M |
| SG&A Expenses | $9.68M |
| Operating Expenses | $39.77M |
| Operating Income | -$16.09M |
| Net Income | $24.10M |
| EPS (Basic) | $0.30 |
| EPS (Diluted) | $0.30 |
| Shares Outstanding (Basic) | 68.76M |
| Shares Outstanding (Diluted) | 82.30M |
Key Highlights
- 1Total revenue for the third quarter of 2015 was $23.7 million, up slightly from $23.4 million in Q3 2014, driven by service revenue growth.
- 2Net income for Q3 2015 was $24.1 million, a decrease from $129.4 million in Q3 2014, mainly due to lower derivative gains compared to the prior year.
- 3For the nine months ended September 30, 2015, net income was $99.1 million, a substantial improvement from a net loss of $554.9 million in the same period of 2014, largely attributed to significant derivative gains.
- 4Service revenue for the nine months increased due to subscriber growth, while equipment revenue declined.
- 5The company maintained compliance with its senior secured credit facility covenants as of September 30, 2015.
- 6Globalstar ended the period with $28.0 million in cash and cash equivalents and had $60.0 million available under its August 2015 equity line agreement with Terrapin.
- 7A dispute with Thales Alenia Space regarding ownership of long-lead time items for second-generation satellites remains a contingent issue.