(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Securities registered pursuant to section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol | Name of exchange on which registered | ||||||||||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||||||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||||||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||||||||||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
GLOBALSTAR, INC. | ||||||||
/s/ David B. Kagan | ||||||||
David B. Kagan | ||||||||
Chief Executive Officer | ||||||||
Earnings Call: | The earnings call will be available via webcast from the following link. Webcast Link: https://edge.media-server.com/mmc/p/7weqo4rq To participate in the earnings call via teleconference or to participate in the live Q&A session, participants should register at the following link to receive an email containing the dial-in number and unique passcode. Participant Teleconference Registration Link: https://register.vevent.com/register/BI47a9ba4dc5d447beaa5bc95a16d50cab | ||||
Audio Replay: | For those unable to participate in the live call, a replay of the webcast will be available in the Investor Relations section of the Company's website. |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
Service revenue | $ | 36,375 | $ | 29,913 | $ | 132,068 | $ | 106,464 | ||||||||||||||||||||||||
Subscriber equipment sales | 4,931 | 4,562 | 16,436 | 17,833 | ||||||||||||||||||||||||||||
Total revenue | 41,306 | 34,475 | 148,504 | 124,297 | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Cost of services (exclusive of depreciation, amortization and accretion shown separately below) | 10,587 | 9,524 | 43,370 | 37,372 | ||||||||||||||||||||||||||||
Cost of subscriber equipment sales | 3,944 | 3,731 | 13,097 | 13,587 | ||||||||||||||||||||||||||||
Cost of subscriber equipment sales - reduction in the value of inventory | — | 151 | 8,553 | 1,004 | ||||||||||||||||||||||||||||
Marketing, general and administrative | 14,362 | 12,384 | 44,103 | 41,358 | ||||||||||||||||||||||||||||
Reduction in the value of long-lived assets | — | — | 166,526 | 242 | ||||||||||||||||||||||||||||
Depreciation, amortization and accretion | 21,733 | 24,206 | 93,884 | 96,237 | ||||||||||||||||||||||||||||
Total operating expenses | 50,626 | 49,996 | 369,533 | 189,800 | ||||||||||||||||||||||||||||
Loss from operations | (9,320) | (15,521) | (221,029) | (65,503) | ||||||||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||||||||
Gain on extinguishment of debt | 2,790 | 1,263 | 2,790 | 3,098 | ||||||||||||||||||||||||||||
Interest income and expense, net of amounts capitalized | (5,868) | (9,778) | (30,168) | (43,536) | ||||||||||||||||||||||||||||
Derivative gain (loss) | 261 | 1,167 | (805) | (1,043) | ||||||||||||||||||||||||||||
Foreign currency gain (loss) | 6,705 | (1,666) | (6,592) | (6,308) | ||||||||||||||||||||||||||||
Pension settlement loss | — | — | (1,501) | — | ||||||||||||||||||||||||||||
Other | 119 | (39) | 463 | 368 | ||||||||||||||||||||||||||||
Total other (expense) income: | 4,007 | (9,053) | (35,813) | (47,421) | ||||||||||||||||||||||||||||
Loss before income taxes | (5,313) | (24,574) | (256,842) | (112,924) | ||||||||||||||||||||||||||||
Income tax expense (benefit) | 22 | (616) | 73 | (299) | ||||||||||||||||||||||||||||
Net loss | $ | (5,335) | $ | (23,958) | $ | (256,915) | $ | (112,625) | ||||||||||||||||||||||||
Net loss attributable to common shareholders | $ | (6,672) | $ | (23,958) | $ | (258,252) | $ | (112,625) | ||||||||||||||||||||||||
Loss per common share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.00 | $ | (0.01) | $ | (0.14) | $ | (0.06) | ||||||||||||||||||||||||
Diluted | $ | 0.00 | (0.01) | (0.14) | (0.06) | |||||||||||||||||||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 1,805,162 | 1,794,149 | 1,800,825 | 1,765,139 | ||||||||||||||||||||||||||||
Diluted | 1,805,162 | 1,794,149 | 1,800,825 | 1,765,139 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
Net loss | $ | (5,335) | $ | (23,958) | $ | (256,915) | $ | (112,625) | |||||||||||||||||||||
Interest income and expense, net | 5,868 | 9,778 | 30,168 | 43,536 | |||||||||||||||||||||||||
Derivative (gain) loss | (261) | (1,167) | 805 | 1,043 | |||||||||||||||||||||||||
Income tax expense (benefit) | 22 | (616) | 73 | (299) | |||||||||||||||||||||||||
Depreciation, amortization, and accretion | 21,733 | 24,206 | 93,884 | 96,237 | |||||||||||||||||||||||||
EBITDA | 22,027 | 8,243 | (131,985) | 27,892 | |||||||||||||||||||||||||
Non-cash reduction in the value of inventory | — | 151 | — | 1,004 | |||||||||||||||||||||||||
Non-cash reduction in the value of long-lived assets | — | — | — | 242 | |||||||||||||||||||||||||
Non-cash reduction in the value of assets following change in strategy | — | — | 175,079 | — | |||||||||||||||||||||||||
Non-cash compensation | 6,180 | 3,544 | 10,754 | 6,729 | |||||||||||||||||||||||||
Foreign exchange (gain) loss and other | (6,824) | 1,706 | 6,129 | 5,942 | |||||||||||||||||||||||||
Gain on extinguishment of debt | (2,790) | (1,263) | (2,790) | (3,098) | |||||||||||||||||||||||||
Non-cash consideration, net, associated with wholesale capacity contract (2) | (292) | — | (292) | — | |||||||||||||||||||||||||
Non-cash shareholder litigation cost recovery | — | — | (1,000) | — | |||||||||||||||||||||||||
Non-cash settlement of pension plan | — | — | 1,501 | — | |||||||||||||||||||||||||
Adjusted EBITDA (1) | $ | 18,301 | $ | 12,381 | $ | 57,396 | $ | 38,711 |
(1) | EBITDA represents earnings before interest, income taxes, depreciation, amortization, accretion and derivative (gains)/losses. Adjusted EBITDA excludes non-cash compensation expense, reduction in the value of assets, foreign exchange (gains)/losses, and certain other non-cash or non-recurring charges as applicable. Management uses Adjusted EBITDA in order to manage the Company's business and to compare its results more closely to the results of its peers. EBITDA and Adjusted EBITDA do not represent and should not be considered as alternatives to GAAP measurements, such as net income/(loss). These terms, as defined by us, may not be comparable to similarly titled measures used by other companies. The Company uses Adjusted EBITDA as a supplemental measurement of its operating performance. The Company believes it best reflects changes across time in the Company's performance, including the effects of pricing, cost control and other operational decisions. The Company's management uses Adjusted EBITDA for planning purposes, including the preparation of its annual operating budget. The Company believes that Adjusted EBITDA also is useful to investors because it is frequently used by securities analysts, investors and other interested parties in their evaluation of companies in similar industries. As indicated, Adjusted EBITDA does not include interest expense on borrowed money or depreciation expense on our capital assets or the payment of income taxes, which are necessary elements of the Company's operations. Because Adjusted EBITDA does not account for these expenses, its utility as a measure of the Company's operating performance has material limitations. Because of these limitations, the Company's management does not view Adjusted EBITDA in isolation and also uses other measurements, such as revenues and operating profit, to measure operating performance. | ||||
(2) | Includes significant financing component associated with prepayments made by the customer under the Service Agreements recorded as deferred revenue as well as a reduction to revenue associated with the non-cash fair value associated with consideration paid to the customer under the Service Agreements in the form of warrants. |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||
Service | Equipment | Service | Equipment | Service | Equipment | Service | Equipment | |||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||
Subscriber | ||||||||||||||||||||||||||||||||||||||
Duplex | $ | 7,119 | $ | 31 | $ | 7,667 | $ | 122 | $ | 29,222 | $ | 319 | $ | 31,197 | $ | 1,011 | ||||||||||||||||||||||
SPOT | 11,126 | 1,181 | 12,044 | 2,663 | 45,670 | 5,888 | 46,040 | 9,427 | ||||||||||||||||||||||||||||||
Commercial IoT | 5,135 | 3,705 | 4,508 | 1,717 | 19,516 | 10,132 | 17,951 | 7,169 | ||||||||||||||||||||||||||||||
Wholesale capacity | 12,273 | — | 4,946 | — | 34,913 | — | 8,945 | — | ||||||||||||||||||||||||||||||
Engineering and Other | 722 | 14 | 748 | 60 | 2,747 | 97 | 2,331 | 226 | ||||||||||||||||||||||||||||||
$ | 36,375 | $ | 4,931 | $ | 29,913 | $ | 4,562 | $ | 132,068 | $ | 16,436 | $ | 106,464 | $ | 17,833 | |||||||||||||||||||||||
Average Subscribers | ||||||||||||||||||||||||||||||||||||||
Duplex | 38,822 | 44,879 | 40,913 | 45,789 | ||||||||||||||||||||||||||||||||||
SPOT | 271,658 | 275,451 | 272,088 | 268,735 | ||||||||||||||||||||||||||||||||||
Commercial IoT | 454,805 | 417,277 | 442,060 | 414,689 | ||||||||||||||||||||||||||||||||||
Other | 417 | 26,117 | 13,330 | 26,864 | ||||||||||||||||||||||||||||||||||
ARPU (1) | ||||||||||||||||||||||||||||||||||||||
Duplex | $ | 61.13 | $ | 56.95 | $ | 59.52 | $ | 56.78 | ||||||||||||||||||||||||||||||
SPOT | 13.65 | 14.57 | 13.99 | 14.28 | ||||||||||||||||||||||||||||||||||
Commercial IoT | 3.76 | 3.60 | 3.68 | 3.61 |
(1) | Average monthly revenue per user (ARPU) measures service revenues per month divided by the average number of subscribers during that month. Average monthly revenue per user as so defined may not be similar to average monthly revenue per unit as defined by other companies in the Company's industry, is not a measurement under GAAP and should be considered in addition to, but not as a substitute for, the information contained in the Company's statement of operations. The Company believes that average monthly revenue per user provides useful information concerning the appeal of its rate plans and service offerings and its performance in attracting and retaining high value customers. |
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Cover |
Mar. 01, 2023 |
---|---|
Cover [Abstract] | |
Entity Central Index Key | 0001366868 |
Amendment Flag | false |
Document Type | 8-K |
Document Period End Date | Mar. 01, 2023 |
Entity Registrant Name | GLOBALSTAR, INC. |
Entity Address, Postal Zip Code | 70433 |
City Area Code | 985 |
Local Phone Number | 335-1500 |
Title of 12(b) Security | Common Stock, par value $0.0001 per share |
Trading Symbol | GSAT |
Security Exchange Name | NYSEAMER |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-33117 |
Entity Tax Identification Number | 41-2116508 |
Entity Address, Address Line One | 1351 Holiday Square Blvd. |
Entity Address, City or Town | Covington |
Entity Address, State or Province | LA |
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