EX-99 2 skyt99-1.txt EXHIBIT 99.1 - PRESS RELEASE Exhibit 99.1 SkyTerra Communications, Inc. Contact: 19 West 44th Street, Suite 507 Robert Lewis New York, New York 10036 Senior Vice President and General Counsel 212-730-7540 info@skyterracom.com -------------------------------------------------------------------------------- SKYTERRA COMMUNICATIONS REPORTS FIRST QUARTER 2004 RESULTS New York, NY May 18, 2004 - SkyTerra Communications, Inc. (OTC: SKYT) today reported a loss from operations for the first quarter ended March 31, 2004 of $(1.7) million or $(0.11) per share, which compares to $(1.9) million or $(0.12) per share for the first quarter of 2003. The Company reported net income of $36,000 or less than $0.01 per share for the first quarter of 2004, which compares to a net loss of $(0.3) million or $(0.02) per share for the first quarter of 2003. The Company reported a net loss available to common shareholders of $(2.4) million or $(0.16) per share for the first quarter of 2004, which compares to a net loss of $(2.7) million or $(0.17) per share for the first quarter of 2003. The net loss available to common shareholders includes non-cash charges for dividends and accretion related to the Company's preferred securities of $(0.16) per share and $(0.15) per share in the first quarter of 2004 and 2003, respectively. Caution Concerning Forward-Looking Statements --------------------------------------------- This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the ability of the MSV Joint Venture, IQStat and Miraxis to finance and implement their business plans and our ability to manage the costs and growth of these businesses. Additional factors are detailed in the documents filed by the Company with the Securities and Exchange Commission including but not limited to those contained under the Risk Factors section of the Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission on March 30, 2004. The Company assumes no obligation to update any such forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements or for prospective events that may have a retroactive effect. Financial Statements follow
SkyTerra Communications, Inc. Consolidated Statements of Operations (In thousands except share data) Three Months Ended March 31, -------------------------------- 2004 2003 -------------- --------------- Revenues $817 $-- Cost of revenues 748 -- -------------- --------------- Gross profit 69 -- Expenses: Selling, general and administrative 1,764 1,852 Depreciation and amortization 15 7 -------------- --------------- Total expenses 1,779 1,859 -------------- --------------- Loss from operations (1,710) (1,859) Interest income, net 2,161 1,509 Loss on investments in affiliates (151) (99) Other income (expense), net 36 (5) Minority interest (300) (269) -------------- --------------- Income (Loss) before discontinued operations 36 (723) Gain from wind-down of discontinued operations -- 454 -------------- --------------- Net income (loss) 36 (269) Cumulative dividends and accretion of convertible preferred stock to liquidation value (2,461) (2,399) -------------- --------------- Net loss attributable to common stockholders $(2,425) $(2,668) ============== =============== Basic and diluted (loss) earnings per share: Continuing operations $ (0.16) $(0.20) Discontinued operations -- 0.03 -------------- --------------- Net loss per share $ (0.16) $(0.17) ============== =============== Basic weighted average common shares outstanding 15,063,807 15,979,281 ============== ===============
SkyTerra Communications, Inc. Consolidated Balance Sheets Data (In thousands) March 31, December 31, 2004 2003 ----------------- ------------------ Cash, cash equivalents, and short-term cash investments $26,197 $28,692 Note receivable from Verestar, Inc. 2,500 2,500 Total current assets 30,950 32,477 Notes receivable from Mobile Satellite Venture, L.P. 64,189 62,638 Investments in affiliates 2,952 2,769 Total assets 98,294 98,099 Total liabilities 5,657 6,066 Minority interest 12,767 12,467 Series A convertible preferred stock 82,643 80,182 Stockholders' deficit (2,773) (616)