Globalstar (GSAT) 7 Nov 242024 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Globalstar Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Rebecca Clary, CFO. Please go ahead.

good and operator, you, afternoon, everyone. Thank

the begin, statements intended we under securities in and Globalstar's filings, its could today's please filings described materially safe note well annual forward-looking section other including the financial earnings of XX-K contains the cause as on that SEC Form Factors call today's laws. for to to Factors provided release. differ are year the that its harbor Before Risk results fall the SEC report ending XXXX as within

Also adjusted note under which measures EBITDA that U.S. management may recognized EBITDA are reference or not call, on this GAAP. financial

As most is our website. required financial their comparable non-GAAP GAAP these financial available on the and by which SEC measures regulations, release, to measures are reconciled in rules earnings

into with wanted Tuesday, closed largest and touch I to last we agreement the on deal Before I services briefly our announced the financials, the on week customer. which extends get

in a the of satellite updated part network year. from start separate today scheduled As what will to the launching agreement, provide we and next operate new addition we to

subsidiary agreement of from sale purpose will new equity. of funded as of assets a new assets. has to as hold An existing the been entity network a by SPE's the be as These ours well prepayment repurposed special XX% the

the about including this is week, is terms these provided the details of the Inc., filed service in Globalstar More last as clarity, For X-K company. not the Globalstar, consideration equity parent provider. the we to of elements

for capacity an and quarter same total part quarter for XX% record XXXX. a driven revenue bonuses third the a by primarily item $X.X the of quarter. performance the Globalstar recognition quarter, revenue, increased over third totaling $XX by XXXX, reaching Moving period, driven a increase financial had results. revenue of following million million on in Service XXXX including strong from of XX% to out-of-period the wholesale

financial our variability this results. the arrangement consideration in As can under previously discussed, cause

EBITDA revenue As we've to leverage service as much of discussed past, increase greater business the operating our grows. in the leads in a corresponding

increased of increase a out-of-period year's margin third the EBITDA discussed up this to margin. third quarter, XX% adjusted EBITDA the During from XX% prior contributed quarter. in The item in with just XX%,

have Excluding item, with line would margin year's been the in this prior quarter.

our We to with sheet. $XX at X.Xx. of ratio quarter healthy and Moving on million our balance hand, the ended remained cash leverage

Additionally, impact will a term, cost XX% our the notes our new long and of of of of us favorable last currently and liquidity; future refinance agreement the an week things, for fees fees structure, MSS other finally, more increased and at with services. in among following capital capital, financial the both capital the additional the launch announced including, providing network, service acceleration

is annual deal positioned fees margin. week's we In the that future our current as lines. to as rate well other confident These overall in to X-K in provided value than as to and our shareholder short, last are a drive and generate run double are revenue expected well are contribute long-term from more our this higher business EBITDA very

through low of growth for are We quarter. we second months year, expect raising of revenue full $XXX XX% margin are we also and in the end now the EBITDA environment demand to first guidance revenue the consecutive the and million full raising current for the Given year. the for for XXXX guidance range million, adjusted to X year of the $XXX our

December you to upcoming look all on Finally, Day we XX. Investor forward at our seeing Thursday,

financial increase the our streams revenue our expand framework. growth past long-term look we've to year, and continued to profitability providing to we and forward As over updates strategy

the call Paul. to With over that, I'd turn like to

quarter performance in call to the seeing continued our am I our strong. today. quite pleased quite great It's Thanks, Rebecca. momentum was on third all you we're with the with be business of as

Let me and excel. we emphasizing motivates really team the to as company start that can make what by our a impact

value and bring network areas and power responders living critical recent need people We to communicate. Milton the proud The to and of enabling highlighted of for it's communications are the hurricanes first Helene our needed in and continuity most. impacted when

We and loved saw communications play proud our critical in our widely our commercial these using over and to part satellites increase helping network small and usage during such challenging was with our natural during with network. by maintain events communication significantly but of disasters. We're available fully responders those these all ones devices impacted thoughts supporting them customers remain mainstream to first as our times, a

our key exclusive satellites. as existing replacement rights This up authorization XX enhances the the of satellite reaffirms only our our years more HIBLEO-X not within by called Big but portion FCC also efforts, LEO application decades operate leadership approved the XX reauthorization to Now our our foundation underlying X of than mobile services, in a to band. extend license to

nature and critical connectivity highlighting the acknowledged and particularly on our well offerings. essential growing mobile data are executing demand safety life continue of explicitly we services, communication our clarity, of worldwide. this mission to meet regulatory commercial With our voice commission of satellite positioned The providing

on let's executed key several several other so business objectives these. We past get into the updates the over on months,

core commercial business retail, licensing. spectrum nXX XCOM operate consumer are government, the our we These in IoT, each As lines and of RAN position. a various asset categories, business consumer wholesale, reminder, leveraging

few extension consumer remarks last a our agreements First, in services wholesale X-K with customer. week's our on an existing detailing

will services, capabilities these agreements, new will these enhance part On expanded of global services infrastructure, constellation, satellites and a including we vital satellite As satellite next mobile future. provide ground customers additional Globalstar that growth in and give balance, confidence areas. These increased expanded agreements our licensing. space-related should and updated efforts connectivity our will current this of new into well provide in future the and other the MSS solutions phase

with deal our we value about what Globalstar's we for services, means pleased the play We that and important future vital are role this to will excited for delivering shareholders. the are this continue creation in and provides

both consumer and are services sectors. government wholesale the growing Our in

the necessary commercial enter are of IoT that that entering complete continuing service. Supporting and working we consumer long for system at Globalstar. before development of under both year arrived has been I stage concept the our commercial to commenced customer this government the steps businesses, proof through retail since are alpha and have been We testing the

We forward. product upcoming our attention expect specifications to meeting leadership focus have progress to increased our with teams beta testing and customers added to to and on quarter schedules going in key the new engineering

Liquid satellite With earlier XCOM quarter This RAN regions. solutions. Liquid private XCOM our we distribution rights for markets strategic East, Middle partnership leading across expansion the these grants XG Technologies, announced Gulf solution to network in and XX IoT some Africa, a in a include the operating Band Intelligent technology and group with access our with RAN, spectrum high-growth exclusive collaboration potential

where This these partnership significant markets expected rapidly into capture of customer, growing our to applications essential. opportunities direct to retail high-performance our is well. continues augments are only progress positions also large effort and targeted expand not in channel RAN This increasingly XCOM us wireless global our footprint, reliable, sales to but additional that

making small be XCOM resources and of also for -- number RAN. pipeline Band in progress should the business We're in grow RAN, development to months. to adding and of support We'll customers adding nXX our which sorry, available business XCOM sales the be a coming

ecosystem modules. new and expand radio the We also with to continue vendors

other job and private deployments facilities good seeing has to developing offer by an industrial done for users many we're including of same and capacity offer CBRS a the wireless, spectrum. ports, increase and mines While large our and like Band autonomous opportunity. market nXX in a nXX opportunities Band growing reliability these High-value

we've significant X the and the months the with the through I'm really quarter made year. pleased progress over of first

We stronger succeed are we over we the positioned long position an industry, as company have and to in the in a believe the innovator term.

our into growth. growth with opportunities front new will technology coupled details in we of to developments on operations, excited actions Investor our the will in more and of provide and our on a upcoming Strategic our to capitalize us of at new customers expect how propel We're strategy with Day us. expansions phase

everybody. back for I'll now the and operator thanks, to the turn Q&A, call

from Piecyk first with Partners. [Operator question comes Our Instructions] LightShed Walter

You had which another company way, text be that great. because would you there that seemed, in during any the think, used, was quantify videos I wondering you hurricane. if activity mentioned that quantified any saw was I high. kind being of could, the relatively aggregate didn't of an area, see examples We that level it on or in but messaging any any quantification

sense using of in the this distributed of with can hey, kind of in across the more also location kind latest it's then but state, a usage give satellite, evenly And also update of consumer specifically the the desert the or you of happening state that of like, U.S. to middle not usage, versus software your product

is utilization things off the satellite transmitted and terms that. like power of way So the we see the that usage, parameters of through power in

that I don't up capabilities quantification we satellite have So dramatically, of power I mean, I using think useful. did go I -- off of say it really But would of good quite a people and a -- transmitted sense don't is very to just satellite. that the were the significantly. it not

and of so get the terms In into I locations forth, can't related to information customer. really

our able us say, be I unable that people we that. the had other though, in not were about people mentioning trying been to that work talk were won't able would to those get told with use you I for the regions -- by were think to to access, people I access. along services companies So had we get and from claims, and what those to they

those So I also heard numbers.

substantiate we off also to were not see. We what of those based able numbers could

new presumably it. have on it's that. it first, year implies then then -- what this and services. presumably the obviously one satellites in after understand I constellation comes of with of in new and technology Got new announcement execute terms to the And and you terms next better for the

saying How that to you're to got new have available you. inquiries you've does have capacity like, this constellation, interest or going soon oh, generate start you to it this customer

when you like you -- about sense next begin a can that conversations revenue ramp incremental on do that the talk to Let's start to of constellation? those give

to obviously, those some getting to of our with we'll partners XX%, So it's that be the our have on days terms of early started ability but specifics in capabilities we disclose discussions.

So it, of services existing things. or choosing it's extensions precise whether over services provide we new they're around will more the that

know, And as quite we a team. you technology good have

specifically are able people number I a but a with we hired there's to to There's of though. -- and have will work work of done, the being be constellation, we've don't things capabilities, those today. do tell on that you something to So quite specific lot there new

launches And update next that? then everything specific on track? And provide the timing to any you year, just more on for want satellite an on

according the progress haven't our continue expectations. We to to but updated things timing on that,

from Our Stanley. Simon question Morgan next comes Flannery with

contracting on there are the new I agreement. like understand seems service think you is a And could or with any said after should X-year after a this already? year that? normally on know Congrats deal extended we cycle. revenues you the the vendor the satellites? how line? satellites the help around for Is Can time double us are will deployed, where we It about sense us X- give but you a

you still that the expectation? And replacement up I interim an new the Rebecca, would this launched. previously point, satellites Or revenues is step by when that said were superseded deal? guess, the Is

In the new take time. long these terms of things period work on the a satellites, of reasonably

work who progress. Rebecca? specifics we in in haven't about sort given that we of already, are are any but So where we or

first step-up new Yes, in just on on has The agreement. of revenue. then the impacted launch Simon, MDA by been the And the the real revenue. XXXX satellites following quick not the

as your that Great. and just run quarter this it of Or rate is rate, we and there other going be kind think into the of strip fair lumpy Okay. run of million $X.X onetime coming if in QX size? quarters the that about out sort being of think as from benefits beyond? might And forward to well

XXXX. XXXX There be the we've then and million that as half seen is quarters variability is -- for years. over past first might and appropriate. several basically yes, of But $X.X couple still The

So at the looking should that you out. strip in you're quarter if third isolation, just

cash if deal constellation? the of this go comes us last the on of more one. and in one just we'll us and to get you just little bit I Perfect. I'm sure a help know And could But then the the referenced X-K, you what with and goes you for December. a out Just in, get several sense us what from the money coming give years. and over pay forward out as satellite simple then you the XXth

by So the the million with the funded billion it's and then of new XX% infrastructure prepayment the agreement, deal, SPE. the prepayment equity $X.X in sale $XXX

quarterly in, basis. needed in on the come $X.X will a advance billion CapEx So that of

And period. will in quickly, next it construction so few come during and over right, the years pretty out the

refinancing. And the Okay. also was debt there then Great.

Yes.

So was this morning that filed that market. X-K is before I think the

money out notes. X-K that As those has stated, fully come gone and repurchase has that to in

Lillehaug comes Logan Our next question from from Craig-Hallum.

today. Nice of want Intelligent you on referenced the I results deal there. start Liquid that guys here to kind

any guys do here hit strategy First, duplicate the next have give will you look can to sort is the of financials? sense you And few might any as that you us when over sense a years? that that maybe to or

the process team in some concepts And really up these complex. we're systems the them. their So working of intended obviously, concepts proof because with of proof are through of to are train

other But sorry, see of So proof-of-concept that sort will -- coming you them. announcing to other customers. us with happen reasonably prior opportunities will soon us

well. do it's the as these one of main deep a to that obviously applications. mean, vertical our of reason value-added in We is lot And of I yes. kind terms are resellers. side intention on use And satellite duplicating because that,

lot the in to become and we have experts the sales both expect vertical. time deep while And spent size the every for side, micro team, solution centers, on of the we the and with development fulfillment a of understanding co-developing don't

partners terrestrial has expertise -- on and And side. the useful be to been the same that have on have expect that past us will in so the having we those space it the side,

[Operator Our next Griffin comes Boss from B. Riley Instructions] Securities. question with

into curious, outsized of guidance? anticipated guidance up? kind me. of the performance reason about this kind for out-of-period incorporated Or of look you that of the one prior Was that First as the majority Rebecca, can talked was some item just you're of or pushing something at we driving that the being result. onetime bonuses low end the

well, much included included. don't there's was how several of I before. bonus We talked under this the performance exactly probably -- as available we've was the first us It midpoint. that bonuses agreements, all, are about remember at particular to

factor it And so factor. that lifting it might but in bottom end, only a the have been wasn't

Got of more it. that? move is kind any there sort when it of you more to And that mentioned there of broadly any expected? as customer, rollout could that's on of then you you Okay. next say, Is you just forward Is on stage provide expectation global the progressing. detail retail whatever progressing the Or could be? might,

going it's mean, well. I very

gone capabilities that customer I rollout, broader process making the of that upgrading is positive. quite sort of with for well. of see requirements in stand And been the where think pleased we're certain have were the a We and and that that's we progress the as

think, forward in So a good I to we position are, them. quite with move

for. provide discuss more We're of that. to been on soon we the in gone the actually time able this they dates waiting to internal of the of extremely at aspect internal asked their well, point hope capabilities has will kind and on had that that sort progress But be have us processes we it of more and some additional meeting

just last then quickly it. one Okay. And Got for me.

And quarter, testing. about testing think to or the first as XQ progress stage in to you of Is and talking Paul. quarter you earlier upcoming beta You to said testing, that I progressing XXXX? in beta were expect alpha upcoming

XQ, yes.

I'm showing questions like closing Paul so time, turn no this I back it to Jacobs at further for would remarks. to

of sort doing a mutual across support. our sort of ahead a just therefore, appreciate the everyone look with as for building thank being want company. Lots I'm areas, are quite we very of on is long-term what I the relationships to us. we again of the and these Obviously, of call. exciting opportunity of proud time are that customers things of I for all And lot

how And to that the a team has is done. testament

the lives you and all thank work team you thank for to say events Globalstar whole some also to saving of want these in also I that the happened. So have

many to We Day. of you can of look as the as seeing the make upcoming on Investor it forward all you at call or

well. and And those answer to interact so your questions and be will that another get as sort of opportunity

thanks, forward seeing So you we to everyone, and soon. look

today. conclude does for program This the

now You disconnect. may