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Globalstar Announces 2012 Fourth Quarter And Annual Results

  • Year-over-year Adjusted EBITDA improved by $16.2 million
  • Total revenue increased 10% in fourth quarter and 5% in 2012 from prior year periods
  • Concluded fourth launch campaign with successful launch of additional second-generation satellites on February 6, 2013
  • Completed comment cycle for Petition for Rulemaking with the Federal Communications Commission ("FCC") in January 2013

COVINGTON, La., March 14, 2013 (GLOBE NEWSWIRE) -- Globalstar, Inc. (OTCBB:GSAT) today announced its financial results for the three-month and twelve-month periods ended December 31, 2012.

FOURTH QUARTER FINANCIAL REVIEW

Jay Monroe, Chairman and CEO of Globalstar, commented, "We recorded our fifth consecutive quarter of positive Adjusted EBITDA, driving profitability improvement in a seasonally slow quarter. By leveraging operational improvements, which have been our focus during the launch of our second-generation constellation, we are turning the corner financially. We are now well positioned to drive further profitability as we complete the deployment of the world's first Low Earth Orbit second-generation constellation and complete the restoration of our industry leading Duplex service. Globalstar is now ready to reclaim its position as the world's leading provider of global Mobile Satellite Services ("MSS") to consumer, public safety, government and enterprise customers. We are extremely proud of all we have accomplished this past year."

Revenue

Revenue was $19.1 million for the fourth quarter of 2012 compared to $17.4 million for the fourth quarter of 2011, an increase of approximately $1.7 million, or 10%. This increase was due primarily to higher service revenue resulting from growth in the Company's average SPOT subscriber base of 21%.

Service revenue was $15.3 million for the fourth quarter of 2012 compared to $13.6 million for the fourth quarter of 2011. The primary driver for this increase was from the SPOT business, which grew service revenue by $1.1 million, or 20%. Duplex service revenue and Simplex service revenue also increased 14% and 18%, respectively. The improvement in Duplex service revenue was driven by an increase in ARPU to $18.49, an improvement of 23% over the fourth quarter of 2011. Driving this increase was the significant improvement in Globalstar's network performance, which supported higher subscriber rate plans and increased usage throughout 2012.

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