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TheStreet Open House

Globalstar Announces 2013 First Quarter Results

Stocks in this article: GSAT

  • Total revenue grew 16% from first quarter of 2012
  • Adjusted EBITDA improved $1.1 million, or approximately 80%, from first quarter of 2012
  • Duplex ARPU increased 25% to $19.24 during first quarter of 2013

COVINGTON, La., May 9, 2013 (GLOBE NEWSWIRE) -- Globalstar, Inc. (OTCBB:GSAT) today announced its financial results for the three-month period ended March 31, 2013.

FIRST QUARTER FINANCIAL REVIEW

Jay Monroe, Chairman and CEO of Globalstar, commented, "Our first quarter results represent a very strong start to what we expect to be a pivotal year for Globalstar. We recorded our sixth consecutive quarter of positive Adjusted EBITDA, which nearly doubled from the first quarter of last year. Additionally, the metrics underlying our reported results, particularly rising Duplex ARPU, equipment sales, and minutes of use, offer strong evidence of the revenue and earnings power that is now beginning to build with the second-generation constellation being placed into service. Anticipating full Duplex restoration, customers are returning in increasing numbers, and our marketing and distribution efforts aimed at further increasing our addressable market are uncovering tremendous new opportunities for Globalstar."

Revenue

Revenue was $19.3 million for the first quarter of 2013 compared to $16.7 million for the first quarter of 2012, an increase of approximately $2.6 million, or 16%.

Service revenue was $15.4 million for the first quarter of 2013 compared to $12.6 million for the first quarter of 2012. The primary drivers of this increase were growth in SPOT revenue, which increased $1.8 million, or 33%, through growth in the average subscriber base of 20% and ARPU growth of 11% (both excluding deactivated subscribers 1), and to a lesser extent growth in Duplex revenue of $0.6 million, or 15%, driven by 25% growth in Duplex ARPU. Simplex service revenue also increased $0.5 million, or 39%. Duplex service ARPU reached $19.24, the highest level since the third quarter of 2010, as Globalstar's network performance continues to improve, supporting higher subscriber rate plans and further increases in usage.

Subscriber equipment sales of $3.9 million decreased 4% in the first quarter of 2013 from the first quarter of 2012. Duplex equipment sales increased $0.4 million, or 47%, and Simplex equipment sales decreased $0.5 million, or 24%, due primarily to the change in mix of products sold during the quarter. Sales of SPOT equipment were relatively flat due to both reductions in unit pricing and the change in mix of products sold during the quarter.

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