Globalstar, Inc. Quarterly Report for Q3 Ended Sep 30, 2021

Summary

Globalstar, Inc. reported total revenue of $32.6 million for the third quarter of 2021, a slight decrease of 0.4% compared to the same period in 2020. For the first nine months of 2021, total revenue was $89.8 million, a 5.8% decrease year-over-year. The company experienced a net loss of $30.9 million for the third quarter of 2021, compared to a net loss of $24.9 million in the prior year period. This wider loss was primarily driven by increased interest expenses and derivative losses. Operationally, service revenue remained relatively stable, with growth in SPOT and Commercial IoT services offsetting a decline in Duplex services, reflecting a strategic shift towards IoT. However, the company's financial performance continues to be heavily impacted by significant interest expenses related to its debt obligations. Despite these challenges, Globalstar made substantial principal payments on its First Lien Facility Agreement during the first nine months of 2021, reducing its overall debt burden. The company expects its liquidity sources to be sufficient to cover obligations over the next twelve months.

Key Highlights

• 1Total revenue for Q3 2021 was $32.6 million, a slight decrease from Q3 2020's $32.8 million.
• 2Net loss for Q3 2021 widened to $30.9 million from $24.9 million in Q3 2020.
• 3Service revenue showed resilience, with growth in SPOT and Commercial IoT offsetting declines in Duplex services.
• 4Significant debt reduction occurred, with $126.7 million in principal payments made on the First Lien Facility Agreement during the first nine months of 2021.
• 5The company continues to strategically shift focus towards the growing Commercial IoT market.
• 6Restricted cash stands at $51.1 million, primarily earmarked for the final payment of the First Lien Facility Agreement.
• 7Cash and cash equivalents were $11.3 million at the end of the quarter.

Frequently Asked Questions