Telesat (TSAT) 6 Nov 232023 Q3 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the Conference Call to Report the Third Quarter 2023 Financial Results for Telesat.

Our speakers today will be Dan Goldberg, President and Chief Executive Officer of Telesat; and Andrew Browne, Chief Financial Officer of Telesat.I would now like to turn the meeting over to Mr. Michael Bolitho, Director of Treasury and Risk Management.

Thank you, and good morning. This morning we filed our quarterly report on Form 6-K with the SEC and on SEDAR.

contain may today remarks forward-looking statements. Our uncertainties. risks from the are a of risks that forward-looking Telesat's materially differ result and unknown and may results known results as actual statements There contemplated the by

quarterly Executive For a discussion revise responsibility with Dan known call risks, these no Telesat's Officer. forward-looking SEC. assumes and update now Goldberg, reports turn over annual Telesat the see the to filed Telesat's of and Chief or statements.I President will to

and teams timeframe bringing I've extraordinarily professionals quarter surprised we to that pleased, network. announced focus huge able working Lightspeed funding join MDA key are that one XX out Lightspeed with the arrangements them of the ensuring morning, pleased track remain the the with cadence SpaceX's proceeds schedule. to guidance, and I'll we key I go to some we're and results work contract, shared program.We it's there. in and capable selected the year. with C-band making X not Telesat This will high from number to digital Lightspeed our Canadian the or advance Lightspeed.Our network, and in year to a for amount some seeing launch them prior is fully Falcon on strong to well thoughts contract. industry will their has financial, satellites update call and us Okay. on and optimistic a interest including our QX goals, of time updates and on the bring the launch financial and We're be sharing focused for Michael. are Falcon close, chain. Thank we including on IP a supply jobs development, this the shareholders.Obviously, contractor a we're position then engaged divide, very policy detail. key spurring that our by climate program will to manufacturing, The believe range at significant who another security this And share the exports people with on a our million provincial great other we'll advances rocket operational received and Both executing consistent also well the further strengthen our national funded open program, which up that And but important Telesat we've that we're so been we with in consistent us and some public advanced market objectives. done really wide to I'll are the additional been Lightspeed. SpaceX launch on this call and flagship rockets on early execute financial Telesat towards year MDA the with throughout partner for up the our broadband advanced far programs, X of value think as next XXX way say our our on numbers long is commercial you, and with a largest objectives most demonstrated then onboard been with to executing MDA really U.S. work on on. ramping speak to partners. financial this with USD strategic our debt we'll the bridging important for we've later reliable SpaceX concluding focus Andrew, an up give engagement this and repurchases meaningful a give for to They've the as Telesat our the advanced And create fully been Lightspeed, We're tracking hand quarter of to Lightspeed high-quality completed business. reach LEO that. I'll is over clearing be final prime roughly previously, program, the Since is questions.We've as federal

sharing the federal Telesat supporters for information grateful bullish more have Lightspeed Lightspeed plan investors about been our with forward provincial and business consistent hugely and and end, look the Andrew Our and forward forward Canada both the expectations. partners I'll meet couple are investors questions and it.With to to Andrew and in about may. I that to weeks. remain we're strong with in to road Canada to that.We of then of that, looking any looking program over to To detailed addressing hand the next you and on and U.S. over get plan We're

revenue cash the due million CAD of would from XXXX, revenues a Between million revenues negative an expenses mainly the CAD compared operating OpEx, and million X a required decreased procurement the the revenue of impact decrease reported we CAD customers. from balance due morning, adjusted the XX the you, American months XXX customers' South support by revenues, capacity is in to that increased of in rates XXXX rate no Term to on on to like in X due partially foreign margin CAD period impact period Loan exchange I a a certain third X facility X debt. on the CAD commenced XXXX exchange could resulting XXXX, compared combined in XXXX, the to we lower operating quarter and exchange changes the EBITDA expense was XX U.S. highlights rates, cash million higher loss EBITDA FX XXX when notes of the supported CAD once decreased compared by million mainly EBITDA the X impact Thank operating by in result with we This adjusted million.The in stronger by to certain of longer by in release X quarter third XXXX. for satellite to positive comp, translation in it CAD Telesat increase had loss on impact press morning's held B offset primarily the everyone. of quarter sheet.In CAD of XX.X% expenses on interest CAD associated CAD was dollar-denominated The and U.S. to interest million. million, million same dollar Good the to adjusted of of combined Anik exchange adjusted the of lower the X expense. adjusted same share-based In XXX maturity XXXX, operations billion of CAD generated U.S. and and decreased decreased of CAD with to a XX% September be to CAD of XXXX. recorded of foreign by on for decreased to the change of now Dan. by and X inclined with was million, ended of repurchase networks expenses in to for in on XXXX, partially X foreign The adjusted from million third-party million the expenses dollar million ended XX, in decrease dollar with and non-cash When XX, costs the compared to and the X operations.Interest CAD decreased million during U.S. XX Canadian on the XXXX impact XX impact million, of the quarter quarter September X.X of third months million positive U.S. of favorable swaps third a was changes by XXXX. the operating XXX by X million EBITDA revenues CAD one the of dollar-denominated CAD filings. million impact XXXX.In the in second September loss of quarter, the this offset XXX CAD was as for CAD interest our focus rate The CAD EBITDA.

of due CAD compared debt gain Canadian to prior primarily X the income million ended net net months was The CAD of net our XX, dollars income recognized third to CAD the repurchase clearing U.S. the on XXXX our XXX.X Our the the for repurchase U.S. and for net year-to-date dollar combined debt. the million to was in of of of the our XXXX, principally C-band was X.X September gain significant a the XXXX proceeds mention on XXX on year. the impact positive loss loss second the debt.Also quarter with to million. the quarter the into The of conversion was in due variation

XXX to million. activities million. The September our Phase For XXXX, XX, by the expenditures. investing and we received from the CAD activities as were cash from investing mentioned, was X CAD generated the due generated ended were flows flows proceeds from capital clearing, activities cash XXX offset from operating partially cash The months X C-band inflows

terms corporate incurred, were FX capital satellite.Turning to guidance. acquired and related Telesat primarily to of lower Anik a constellation, In they expenditures the newly Lightspeed

to of also maintained its Canadian adjusted U.S. guidance rate our revenues revenue CAD a full exchange CAD million. noted release we've As and previously dollar assumes CAD expect be dollar XXXX million to you have morning, XXX The will between to Telesat earnings XXX our in and continues X.XX. provided EBITDA this guidance. year XXXX

capital capital million end including of under as expenditures, held expected in XXX to short-term Approximately meet X.X and USD months, between CAD Telesat continue our CAD XX March we CAD expenditures, to investing EBITDA, of revolving XXXX approximately be in well adjusted was as flows investments expect next to XXX cash million for CAD interest the in unrestricted of to cash the the subsidiaries. at of billion XXX CAD we CAD approximately million. available billion cash our terms borrowings payments In range requirements our used expect and respect million to have facility. of credit X.X activities continues in cash XXX our In million.To XXX to

activities.At of continue has terms addition, indenture. was cash operating X.XXx In secured we calculated credit facilities, the amended end in amount the the leverage agreement our as generate under of covenants X. from Telesat our with quarter, senior credit the all complied third ongoing and a to to the of significant

Combining As in debt USD aggregate these in a USD USD an USD XXX.X principal with subsequent repurchased of a quarter XXX and total of period, Dan cost repurchased million. has a repurchases amount aggregate the XXX.X million. XXXX, at of repurchases cost million million we've XXX.X amount done third we with indicated, including at of the

filed in million this reduced between the by our morning. we Telesat has approximately XXX approximately our financial B, results when USD XX also in debt savings been the million overall provided Loan this CAD is XXXX addition, statements of Term reconciliation covenant calculations end In and A of its of repaid approximately interest XX%. annually.Further, since financial report

condensed non-guarantor Our X-K And interim subsidiaries the are remarks in minor for differences.So operator. essentially shown concludes prepared call, to any may the very provides to unaudited now MD&A. the you with the The we'll financial consolidated and back the we'll happy turn have. our be that that, now subsidiaries information with answer questions unrestricted

from Our [Operator Walter first LightShed. Instructions] from question is Piecyk

Just on wanted focus of the guidance. reaffirmation to

it big CapEx, much I step really relates then that like the up require, in move OpEx. think to I'll pretty to a didn't would things obviously, it I your And SG&A question sequentially. as look that at and also quarter. If connect that, fourth

a would quarter we're on pretty costs prior start start of the if are no. if is these of So your And anything until when to is, CAD I to project was XXX capitalized ramp like costs seeing the asked is if the CAD the kick us big I in OpEx kind think are would question on step-up But going be refresh they up? if those a launched, million LEO to million, answer fourth going guess call, CapEx I XXX which satellites quarter I think expenses in? guidance when could to some think things just quarter. -- aren't, you maintained? the fourth why guidance are I imply

Walter, Andrew. is yes, this

our program. think ] timing you commence the we [ that exited when is I in will

will involved. And of will really But for program. we given in CapEx spent additional in That's you see we know, you we calls, commencement of There at our the And the sort will commence historically, the capitalization terms is made that assumptions the we're is be hence, our going, well and very the once very you we hopefully we've and we sort of excited control get that that of terms ready people previous sort quarter headcount of will so a we in and And of I the and SG&A that quarter. the are of X. lot as very, in well OpEx, get with QX, pretty high case. But said going, flat resources more think our very and SG&A margins, be other being And terms in closely. to if OpEx, look why some getting not contained. preparing, of apparent. will do to engineering imagine, this of in also, that's as

quarters? can Got going How takes OpEx expenses? How on sense us it a it. obviously, to much that in already engine the side upcoming in in it -- to. quarters many give to least see get you of of really long guided are terms SG&A any vertical you've And going things, How at we of CapEx the takes? ramp on

numbers, when a the steps LEO what be we OpEx our there, I in and in will Walter, ramp I I year LEO comprehensive addition What about say pretty think think guidance full we around give give our GEO. will to and would in that

think clear. it make I So we'll very

will at it be So companies. our very obvious both of looking

add now. that mean, I we're Walter, couple I MDA. we're Hey, out think -- Dan. of just mentioned that Maybe my it's up a ramping there in things. we're is staffing -- remarks One, as up I I'll

So now, not a of is point onboard but in everyone certainly this time, we're offers hiring lot accepted. a out there our lot had of at right we've people,

go of the is is So give that though, detailed for doing Andrew that nicely. ramping XXXX. lot said, A a we the capitalized, So engineers we're lot really of when a team guidance we'll as And up spending we're be all Andrew the I of to know that's our guidance, will that hiring, going right? over our and that lot give but expectation.

the seen commitments getting then since much the think in you -- or any -- And the excuse itself? revenue, traction additional the of before any in first the And you or have capacity capacity go of earnings planning if been out quarter do to call, actual how is start launch? kind has alteration What how additional you up you're last would not, there when? constellation sats similarly, ahead What me, initial the air commitments? in see

that spending a announced MDA time -- be program now deal move with spending all with working and the everything since forward. I X on and first off. the one, we the So in going mean, we MDA glove right hand supply seems We're the MDA I months in kicked ago, we mentioned of we're chain that as is lot to well.

you something And So long on or for working there we've ask hasn't there would time. alterations been been has any -- plan. this the the I is look, in there think answer And a been no.

in things like. So of I'd what program terms pretty say, looks set well are, the

million order program. sort all I said XXX kicked kind in of as to mean, going USD the that's committed already so off And I then backlog, and far of think as well.And we've got magnitude we've backlog around of

and to be do And we Our ramping first then. expect backlog is mid-XXXX. launch between now

a and see amount announced I we're in with of that gratifying to now engaged it's right been community There's now. Lightspeed, interest we've the huge look, think program. the customer that, that

additional customer and commitments be over I exactly expectation next that any -- that that we're backlog signing think that We're be not the next that able we'll will course year. But to like. that we'll the we'll discussions throughout looks course the announce there having my on about things of sort with year, is on be that of folks, what based of guidance as... commitments update giving customer

which you've Right, before. said

or you fruit, commitments that and thinking the you you at may people terms conversations, at market in different looked those the about think were of size these verticals, the when terms you are this the of kind going in about applications of constellation what -- do verticals, from think all initially low-hanging gravitate enterprise your that you the otherwise business to next year? see are when what to So applications we of some

say, are services. connectivity with to edge aeronautical we're and that ISPs. with operators in. verticals I'd like real day, every exactly right? always a It's for engaging in No. back we've expected maritime markets It's -- mean, look capacity Those the these are providing Lightspeed competitive that governments. It's haul mobile network active I and have

nothing our changed be to so continues expectation. And has That there.

when now to is are yes, and that expectation the so are the my again, we about things being expect and those good we'll in talk announcing we're year. some really And but -- between coming over commitments next of from, get verticals those service have traction in. course We'll where

A Caleb Henry Space. from following question Quilty is from

questions. of about couple A launch. One

up rockets XX XX there's SpaceX each. carry and to each from noticed I satellites So can

kind there math and satellites, quick been currently equals planned. what's is which of ordered than of kind Just more XXX

walk there? So having I up the launches you so permission, can was reason what's many of to know it's through wondering the kind XX for if logic? but I planned

We've be more the We've it's for have with MDA SpaceX. to terms going terms By the all proposition do for -- as listen, in we the over overall we've kind SpaceX of our the need launch overall with with of timing capacity been that So that that able that said case did, worked got expectation rockets of relationship time. we get time. committing working we've constructive we in of know, from demand-driven.SpaceX we to a just number long think the you that to the to been value of And an launches to to has we've a up. of lined compelling kind them. good that, we add when us extent we think rights satellites position very

launch those of we kind our a have ability that rockets in us what the So market wanting with the commercial a seeing partner SpaceX It is. that's over plans. to was it to allows those time of of certainty provide to we're and the line-up consistent terms our in the expand then rockets, that good constellation really with what terms function constructive commercial and having

Okay. in you you're terms of appreciate numbers guys sharing? kind I see revenue it. your segment out of that you anything Can from I something still broadcast, this quarter. didn't Is enterprise, else? break

my that for magnitude, XX% magnitude, XX% in looking Order X% I'm sort of order I'm broadcast, -- did Yes. I and my X-K. that? I of colleagues. the at I like Is like at broadcast. enterprise of mean, XX% sure, staring it's -- mean, it's But other. colleagues, know

Yes.

Okay.

there as be in it you well. will But the So X-K go.

it like have than quarter. margins better gross then And reported Telesat looks Okay. expected this for

Just wondering if sustained be see or to of bridge that to and something the change kind that's the assumption that's more expect of to needed you if third-party capacity on now going gap between that kind Lightspeed? will

Maybe the talk that take Yes. and about I'll at first Andrew can then it. crack

operating are on the margins, at for structure that old but than was. on always lower But we always been we rate had as of as as a what rate And business. the Nimiq was really would as in are And a Bell our headwinds managing as focused result, there We industry-leading cost I can. with we've tightly think X said, October. we've renewed it have sort early

kind business nicely. when your can so head up, margins there grow XXXX.The into will fixed be is, cost And you're cost ramping can't as kind a of operating is as some and true a in really revenue the revenue proportionate revenue revenues headwinds Sadly, you're of you're way. some declines, of you we when of structure beauty your facing these well converse reduce facing headwinds you

we just terms the best in So structure. to on and do as can in being definitely downward we'll can we on there's cost around some that trying through as margins, operating as heading be of going balance, manage say, next always pressure job into to the do we I'd disciplined year,

indeed we in just industry. are and next our coming highest previous investment program Dan. And OpEx And obviously, right, when the that add we investments with blast CapEx That's in year, that, through probably indeed, margins will in expenses. into see our both in CapEx then LEO, full our better around start of comments operating to course, the and

from Our Paribas. from is question following Arun Seshadri BNP

Yes.

balances. cash wanted just confirm the to I First,

the said think billion restricted CAD I billion with X.X CAD total in group. you X.X

I went Do into just that you restricted unrestricted from the is there So the the -- entities? assumption just near-term could cash the the in more inflow unrestricted group group. fund into expect C-band to the

Okay.

entities. discussions -- Bolitho. And our we unrestricted with investors. USD billion in restricted little in the went is certainly the to unrestricted that. Michael basket The proceeds consistent entities we've it's been the of general XXX fairly available bit the have entities. to proceeds X.X of C-band C-band said, cash Yes, be to So CAD we is from the million money we had in group, fund the a There to still funded unrestricted

the the can update And as the as the Got of terms terms the vendor in funding? government the contributions, updates the were of of there the additional it. bits far financing funding, -- any vendor And and Quebec any is smaller terms that Canada financing then and required? of you and in financing additional

the We yet. share When any on nailed all have that's down, terms about more information don't updates we'll it.

moving in been again, we're more doing, been about be of we've why the subject right we I year. ramping people why But of That's out a the close terms that government that that more definitive all that's and as funding in able year out. information probably late next going said to to at of with it's once ramping seems the of about financing is point, the share the it's And I'd confidence forward. we're that We at on moving well to outset hiring we're we've are, call, funding to federal time the kind said get our putting we'll reach provincial the or funding early partners CapEx and And and the the specifics in also, good up. confirmatory sit, like wrapped in that all before progress was this had But we'll going the the And to completing direction.So move QX. sign moving program. from we'll place. some diligence that whatnot. either expectation government is be I think near-term, and there share note agreements making and We the where financial all our

far as buybacks, Got see nice after the and continue the it. this then And to quarter them as quarter.

questions do thoughts the words, have sits to Do continue in group? you restricted cash -- buybacks other you there. X expect any uses around of that and other Just cash? #X. as the then usual, back And on you assume, instruments, #X, I choices that bought as primarily were by you in what could that with governed the to liquidity well? In confirm appropriate the if

Yes. the if I'll you I at it. Andrew, mean, want, take first shot

So cash I before, think been things of consistent that that the we've said business. up in to with we we restricted there always a is in And the strengthens way that make building use has mean, cash group. try

our be accretive the returns that shareholders if that of we We've achieve and number not so going kinds looking strengthen the invest it said business, a GEO we're a particularly and few would to uses past debt cash do. it quarters, for think considerable our But other that's programs, programs to do to that. including been a amount have And the business.We've To we the repurchase plan to always have the nickel compelling opportunities a expect. would haven't to that we of we're right business of closed other that business at thing if case. in we're open-minded CapEx date, over we persuaded never used about satellite the equally, looked can at

forward, we use far equally, going different strengthen open-minded I range what ways be repurchases we'll a but debt the of can considerations. that to say will about additional long so then we guess, to bought, And evaluate cash way a that it's as as business.And that other

Term that. last the of quarter the expensive one. sort liquidity, right of That's back the certainly a floats. there because over outstanding B debt bought We part out that's noted certainly that mentioned now. that's We You some Loan of more

obviously So that's consideration. a

a when do it's in different yes, all range pragmatic think say, that that. we're -- I'd And about kind of just we engage So variables we those repurchases. debt just of about

to add mean, I just comments. of a Dan. absolutely, Yes, couple

XXX said, liquidity had good cash which so will forward. generate requirements. of balances assess we cash -- do you Dan by our of is a face December about margins and XXXX, then CAD As our we're debt that's our focused. see, that business value are XX% we've But I means And that very mentioned. reduced indeed, would high, we simply pretty going very, add we and very our million kind of And amounts bonds, bought use we've attractive, which And good and we indeed, of back cash. overall as needs, since

that Got is deals kind new capacity specific of standpoint a either Last business question the to works. of the me that add working it. on just to really commitments standpoint Are any in or deals of a there in you're for already on terms you from capacity have geographic sort Lightspeed?

the verticals. each that have we're much say, users world. all the different of country just mean, existing in satellite in for with virtually those every every the the Yes. region business I Thanks But that is engagement verticals focused -- with benefit key an suffice pretty in in in the we're operator being we're in the question. engaged I already of of We're anything particular. doing world. customers wouldn't note regular to on

sign one I into no them the that talk there's have that as would we'll visibility we good we'll about so will And highlight. And material and folks them again, so do, on we announce calls then deals, that.

from question Lewis. The Kennedy Brandon Karsch is following from

should delta a I'm the point? missing a steep year-to-date, else or or the I from QX QX Is done like looks as know here. big I it Just pretty rate. Canada Bell just you've step guidance just even turning the down I there's run It to last there some from some rest sales. back this here. recent noise of looks anything equipment pretty renewal conservative view in the guidance implied revenue non-recurring decline And what is at the like this out back from If year

Yes. I'm what, top-line it's trying for Year-to-date, the year-over-year, to X% -- I on adjusted it's X% mean, quarter. the FX. decline was

the Bell. would declines by be certainly, So renewal with driven

was throughout first there this say softness that that headwind as quarters mentioned, of So and we next there of anyway, acted the will some things But I I and in kind be and would I was those would quarter we of the that that. think, the over that renewal X like. as experienced the year timing the the Bell noted have Latin America a And given on carry in year.

of a of of would will to in ramp, sort earlier our I the higher X coming as rate that quarter as comments in X. run terms we we quarter just add OpEx continue in anticipate OpEx

equation our that's the part of hence, also. So

maybe then other flagged DARPA. This different sort one-time of recognized one guess, we've sort QX And that government been U.S. with me. just LEO-related research of last a is winning lab the colleague activities. I for projects for we Yes. has year, in

I And we're at had it I think It that to. of was... -- required there's called had out, revenue think called opportunity said think we in because other the we're sort kind that I amount we that's exact work of -- doing DARPA, so that the even time And nature. is lumpier with but out we

million. XX CAD

was I mean, million It XX it's quarter. Yes. CAD significant. the in

from that that. on would do guidance the math big extrapolate a the contributor be to and if certainly, So you're trying

think still of Yes, number I I is have been my there. decline, was my it why a meaningful somewhat I that answered But which adjusting and asking. looked out like you've question

would it Then Yes. be Bell renewal. the mostly

we you said. provision OpEx the said, as as well, for And as

some bit color for GEO that just America side of the on a could as the on on provide more as general update Okay. enterprise? softness side, you And in well then enterprise Latin little

renewal. -- I like contract-by-contract Yes. I sort these mean, been things, mean, it's of up that LatAm, comes for all it's

memory had think had if over in renewal. the in ours we serves. contract up that one It particular came was a contract for I long-standing been that LatAm Peru, of quarter biggest the softness

of we Some over coming. customer them. competitors, our one the to a on they that of would commitment new once a new It had traffic satellite was that a to moved satellite be coming market. off us made online, migrated that to came that something was And expected already that of

earth value we're some I'd constellations, for a for I continues reality in why Starlink Lightspeed enterprise years back increasingly the the competitive is the So taking see performance the proposition say, yes, our so it market starting into been But more of now, segment. constellation. that. And it's the to around remains users I'd competitive. beyond the say, kind segment market. I'd step low orbit I mean, there that, featuring is impact of is the bullish you and And enterprise then broadly, from get sure, enterprise but was which market that.And advantages is that, like we're mean, that Starlink satellite certainly competitive into to competitive. say the be a just coming

competitive And more space. had one in pick-up up helpful. then and you consumer That's meaningful use into Starlink. a moving that enterprise have been more Previously, been into but on just following that last use of the cases? on more their from one, intensity up Okay. seen just pressed the of case, Have the pivot enterprise

line cruise attracting see mostly some of in this other of we the the time pretty some requirements. at the maritime think of been point space. successful sort They've I shipping it requirements and in in maritime

I'd more our competing Starlink had say, knew any for is of there. it's or services. if focus with there. is getting for think on focusing I And say, area, of activities. side, focus And we've really right been most now on the side. on be we an traction we it's good we're We but that's that not know and Lightspeed doing we'll government business. area particular the our Lightspeed, enterprise existing I consumer highlight said what before, lot But on is that some the So evident consumer and enterprise to on that that A with with they're Starlink I'd

McFadgen Cormark The Securities. from David from is following question

the question and Lightspeed funding. Just a on

press this I concluding funding else? fully that to the it's read contracts funding governments or subject when your entail provincial someone however, global down through the funded, delivery. says it also definitive Canadian Is release, with this just nailing So agreements service is

X.X we've in said It the partners Telesat's about of it's USD that here billion the got worth aggregate is in We've billion contributing. of provincial federal arrangements in X the I mean, funding main and USD with Canada. funding. that the

what in So the we it have when August that we MDA. exactly contract with And that's flagged announced is. back

Right.

global meaning Is that commitment want? talking is in service when areas that So to connectivity your you're delivery, means? what they about that provide this through

we of X.X contributing, in exactly Those funding, That's on. Telesat the then don't be system. need the USD is that CapEx focused plus know other very full us XXX billion XXX bring X another to rockets, XX coverage think and think with government said sufficient in capital XX capable -- and terms we're cash we've that words satellites I is, investments other you're make, gives provincial all the ground that a the satellites. I that to funded what with the what noted we've constellation billion will the us launching get the is infrastructure the that to capital the I USD generating. But flows satellites federal gives that global to us that plan. the launch And satellites in the first final we'll

Yes.

early this So when milestones? year, dates mean right talked away? next find closing year actually Does cash with about closing the a that give to into they're that government you mean? entered certain that going certain that Does on they've later the or you does mean based commitment to maybe what

details I we that Yes. to other mean government have that we'll to available yes, government, and need I SpaceX need make means partners, -- payments the close to for will we're the provincial that make. so committed the -- our that closed is provide the It us pay around will can mean yes, we we But exactly the once we'll what mean, that about mechanics more that funding off pay I will all financing. our be vendors. we of the federal be MDA can financing. of that funds and Those the we'll our

question following Partners. ABRY from Lapides Our from Instructions] is Matt [Operator

A couple of clarifying ones for me.

So in proceeds available that's or the what's were proceeds, CAD just the -- million is unrestricted group, to that's the used basket XXX not CAD available agreement credit of entity? into million general can clarify whether the XXX or C-band the any the available that which moved those unrestricted went you today after

assets C-band have were The sub Matt. years. and for unrestricted a of been an No, couple in

CAD XXX XXX XXX the CAD have million. is the million, anything million with The So didn't to do CAD available. it

And just current FX off you us, remind rate hedges you -- Got rates hedge on like position, can clarification. rates the on rolling the it. then and mentioned what some Appreciate looks last business? both interest interest year, for the

of spread, I balance but base the negative cash spread they mean, sure. a the rates at that with obviously, rate, which Matt, cash, flow were in to Effectively, you flow. a on that, the balances,

interest of we're exposure to need the place. not in it enough number We're have falling don't viewpoint, hedged. a from effectively, in we So years. hedged rate close a any hedges we that exchange And foreign

kind Canadian there's And mix with a there, business hedge of natural we because and of our again, dollars. receive U.S. a

then in right. not we most the that's hold there U.S. dollars And of Canadian. add I Yes, is cash would thing last our balances

Thank you.

We have this questions the time. would I Mr. no further meeting to registered like back over now to at Goldberg. turn

joining Okay. you full year numbers. Operator, we you, this speaking to forward QX and And and thank thank when again all our we us look for morning. release

much. very you thank So

participation. and ended. Please has for disconnect you. The this thank now Thank we at your you conference time, lines your