Globalstar, Inc. Announces Annual Results for 2006



    
    Service provider continues to show strong subscriber growth and annual
    increased earnings and revenue

    Highlights for 2006 Include:

    - Total number of subscribers increased during the past 12 months by 34%
to
    approximately 263,000

    - Net Income increased by 26% during 2006 compared to 2005

    - Operating Income decreased by 28% during 2006 compared to 2005 as a
    result of higher depreciation, non-cash stock compensation, and other
    non-cash charges in the fourth quarter of 2006

    - Adjusted EBITDA increased by 24% during 2006 compared to 2005

    - Service Revenue increased by 13% during 2006 compared to 2005

    - Adjusted Service Revenue increased by 19% during 2006 compared to 2005

    - Annual Churn Rate decreased to 1.1% per month in 2006 compared to 1.3%
in
    2005

    (See the chart titled "Definition of Terms and Reconciliation of Non-GAAP
    Financial Measures" found later in this release)
    

    MILPITAS, Calif., March 28 /CNW/ -- Globalstar, Inc. (Nasdaq:   GSAT), a
leading provider of mobile satellite voice and data services to businesses,
government and individuals, announced today its financial and operational
results for the three and twelve month periods ended December 31, 2006,
including continued strong annual adjusted EBITDA, service income and
subscriber growth.

    Major Company Highlights in 2006 Included:

    
     --   The granting of authority from the U.S. Federal Communications
          Commission (FCC) to offer Ancillary Terrestrial Component services
          (ATC) in the U.S. in conjunction with 11 MHz of its mobile satellite
          services spectrum.
     --   The company's acquisition of the Globalstar independent gateway
          operator in Nicaragua to provide Globalstar service throughout
          Central America.
     --   The negotiation of $300 million in debt financing consisting of a
          $50 million revolving credit facility, $100 million delayed draw
          term loan and up to $150 million uncommitted incremental term loan
          or "tack-on" facility. Combined with a commitment for $200 million
          in equity capital to be invested by an affiliate of the Thermo
          Companies, this completed a financing round of up to $500 million.
     --   The opening of a new satellite gateway ground station in Wasilla,
          Alaska.
     --   The signing of a U.S. Federal Supply Schedule Contract with the U.S.
          General Services Administration (GSA), for the purchase of
          Globalstar satellite voice and data products.
     --   The activation of the company's 250,000th subscriber.
     --   The completion of the company's initial public offering in November,
          which generated approximately $118.6 million in net proceeds before
          offering expenses.
     --   The signing of a euro 661 million (approximately $871 million)
          contract with Alcatel Alenia Space for the design, manufacture and
          delivery of 48 new satellites for the company's second-generation
          satellite constellation.
     --   The launch of the GSP-1700, the world's smallest global satellite
          handset.
    

    "2006 was a watershed year for Globalstar," said Jay Monroe, Chairman and
CEO of Globalstar, Inc.  "From completing a successful IPO to securing our
satellite constellation and space segment until 2025, Globalstar has not only
reiterated its commitment to its current customers but has laid the foundation
needed to help secure the company's long-term future.  Additional 2006
initiatives, such as launching the world's smallest global satellite telephone
to opening a new gateway and ground station in Alaska, further demonstrated
our resolve to maintain our significant leadership position as North America's
largest mobile satellite service provider."
    Globalstar ended 2006 with 262,802 total subscribers and with operating
income of $1.1 million for the fourth quarter and $15.7 million for the full
year and Adjusted EBITDA of $10.0 million for the fourth quarter and $33.8
million for the full year.
    Net loss for the fourth quarter of 2006 was $0.7 million compared to net
income of $8.0 million in the same period of 2005.  The loss for the fourth
quarter of 2006 was due to higher depreciation, non-cash stock compensation,
and other non-cash charges in the fourth quarter including the write down of
certain first-generation product inventory and certain foreign exchange losses
on Euro-denominated cash balances and transactions totaling $6.9 million.  Net
income for 2006 increased to $23.6 million compared to $18.7 million for 2005.
    Fourth quarter and annual service revenue in 2006 were $22.2 million and
$92.0 million, respectively, a decrease of nine percent and an increase of 13
percent, respectively, from service revenue for the same periods in 2005.
Adjusted service revenue (adjusted for the company's annual rate plans) was
$25.3 million for the fourth quarter of 2006 and $99.9 million for 2006, a
decrease of four percent and an increase of 19 percent, respectively, over the
same periods in 2005.  Subscriber equipment sales for the fourth quarter and
2006 were $7.0 million and $44.6 million, respectively, compared to $12.0
million and $45.7 million for the corresponding periods in 2005.  Subscriber
equipment sales in 2005 benefited from additional demand generated by
Hurricanes Katrina and Wilma during the fourth quarter.
    Annual fully diluted earnings per share (EPS) for 2006 was $0.37 compared
to $0.30 for 2005.  For the quarter ended December 31, 2006, EPS were  $(0.01)
compared to $0.13 for the same period in 2005.  The decrease in the fourth
quarter was due to higher depreciation, non-cash stock compensation, and other
non-cash charges in the fourth quarter noted earlier totaling $6.9 million.
    Key financial performance measures (see the chart titled "Definition of
Terms and Reconciliation of Non-GAAP Financial Measures" found later in this
release) for 2006 were as follows:

    
     --   Net subscriber growth of approximately 67,000 units during the year
          boosted the total number of Globalstar subscribers at December 31,
          2006 to 262,802, a 12-month increase of 34 percent.

     --   Annual Revenue in 2006 increased by $9.5 million or seven percent to
          $136.7 million compared to 2005.  Annual Adjusted Revenue in 2006
          increased by $15.2 million or 12 percent to $144.6 million compared
          to 2005.

     --   Operating income in 2006 decreased by 28 percent to $15.7 million
          compared to 2005.  The decrease in 2006 was due to higher
          depreciation, non-cash stock compensation, and other non-cash
          charges in 2006 resulting from the write down of certain first-
          generation product inventories totaling $7.2 million for the year.
          Annual Adjusted EBITDA increased by 24 percent to $33.8 million
          compared to 2005.

     --   Net income in 2006 increased by 26 percent to $23.6 million compared
          to 2005.  This increase included a net income tax benefit of $14.1
          million.

     --   The annual average monthly Churn Rate in 2006 decreased by 15
          percent to 1.1 percent compared to 2005.

    Conference Call Note
    
    As previously announced, Globalstar will conduct a conference call
scheduled for March 28, 2007 at 5:00 p.m. Eastern Time to discuss the annual
2006 results.

    
    Details are as follows:
    Earnings Call:             Dial: 866.713.8567 (US and Canada),
                               617.597.5326 (International) and
                               participant pass code # 81559092
    Audio Replay:              A replay of the earnings call will be
                               available for a limited time and can be heard
                               after 7:00 p.m. ET on March 28, 2007. Dial:
                               888-286-8010 (US and Canada), 617-801-6888
                               (International) and pass code # 10930990. An
                               audio replay will also be posted on the
                               Company website at www.globalstar.com

    About Globalstar, Inc.
    

    With over 250,000 activated satellite voice and data units, Globalstar
offers high value, high quality satellite services to commercial and
recreational users in more than 120 countries around the world. The company's
voice and data products include mobile and fixed satellite telephones, simplex
and duplex satellite data modems and flexible service packages. Many land
based and maritime industries benefit from Globalstar with increased
productivity from remote areas beyond cellular and landline service. Global
customer segments include: oil and gas, government, mining, forestry,
commercial fishing, utilities, military, transportation, heavy construction,
emergency preparedness, and business continuity as well as individual
recreational users. Globalstar data solutions are ideal for various asset
tracking, data monitoring and SCADA applications.
    For more information regarding Globalstar, please visit Globalstar's web
site at www.globalstar.com

    
    Safe Harbor Language for Globalstar Releases
    
    This press release contains certain statements such as "From completing a
successful IPO to securing our satellite constellation and space segment until
2025, Globalstar has not only reiterated its commitment to its current
customers but has laid the foundation needed to help secure the company's
long-term future," that are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements are
subject to a number of assumptions, risks and uncertainties, many of which are
beyond Globalstar's control, including demand for the Company's products and
services; problems relating to the construction, launch or in-orbit
performance of its existing and future satellites, problems relating to the
ground-based facilities operated by it or by independent gateway operators;
its ability to attract sufficient additional funding if needed to meet its
future capital requirements; competition and its competitiveness vis-a-vis
other providers of satellite and ground-based communications products and
services; the pace and effects of industry consolidation; the continued
availability of launch insurance on commercially reasonable terms, and the
effects of any insurance exclusions; changes in technology; its ability to
continue to attract and retain qualified personnel; worldwide economic,
geopolitical and business conditions and risks associated with doing business
on a global basis; and legal, regulatory, and tax developments, including
changes in domestic and international government regulation.

    Any forward-looking statements made in this press release speak as of the
date made and are not guarantees of future performance. Actual results or
developments may differ materially from the expectations expressed or implied
in the forward-looking statements, and the Company undertakes no obligation to
update any such statements. Additional information on factors that could
influence Globalstar's financial results is included in its filings with the
Securities and Exchange Commission, including its Quarterly Report on Form 10-
Q for the quarter ended September 30, 2006.



    
                               GLOBALSTAR, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except share and per share data)
                                   (Unaudited)


                              Three months ended           Year ended
                                 December 31,             December 31,
                               2005        2006          2005        2006
    Revenue:

      Service                  $24,297      $22,186      $81,472      $92,037

      Subscriber equipment      11,975        7,049       45,675       44,634

    Total revenue               36,272       29,235      127,147      136,671


    Operating expenses:

      Cost of services           6,187        7,508       25,432       28,091

      Cost of subscriber
       equipment                10,469        3,725       38,742       40,396

      Marketing, general
       and administrative        9,266       12,665       37,945       43,899

      Depreciation and
       amortization              1,018        2,255        3,044        6,679

      Impairment of assets           -        1,943          114        1,943

      Total operating
       expenses                 26,940       28,096      105,277      121,008

    Operating income             9,332        1,139       21,870       15,663

    Interest income                124          726          242        1,172

    Interest expense               (25)        (331)        (269)        (587)

    Interest rate
     derivative income
     (expense)                       -          203            -       (2,716)

    Other income
     (expense), net                 35       (2,136)        (622)      (3,980)

    Income (loss) before
     income taxes                9,466         (399)      21,221        9,552

    Income tax expense
     (benefit)                   1,475          331        2,502      (14,071)

    Net income (loss)           $7,991        $(730)     $18,719      $23,623


    Earnings (loss) per
     common share:
      Basic                      $0.13       $(0.01)       $0.30        $0.37
      Diluted                    $0.13       $(0.01)       $0.30        $0.37

    Weighted-average
     shares outstanding:
      Basic                 61,855,668   67,986,890   61,855,668   63,709,763
      Diluted               61,955,874   67,986,890   61,955,874   64,076,182

    Definition of Terms and Reconciliation of Non-GAAP Financial Measures
    
    The company utilizes certain financial measures that are widely used in
the telecommunications industry and are not calculated based on GAAP.  A
reconciliation of these measures to GAAP and a discussion of certain other
operating metrics used in the industry are presented below.


    
                               GLOBALSTAR, INC.
                      RECONCILIATION OF GAAP TO ADJUSTED /1
                        (In thousands, except Retail ARPU)
                                   (Unaudited)

                                                          Q4
                                                     Annual Plans
                                             GAAP       Adjusted  Adjusted /1
                                          Unaudited
          Consolidated Financial
    Revenue
     Service Revenue                         $22,186     $3,081     $25,267
     Equipment Revenue                         7,049        -         7,049
     Total Revenue                           $29,235     $3,081     $32,316

    Operating Expenses
     Cost of Services                          7,508        -         7,508
     Cost of Subscriber Equipment              3,725        -         3,725
     Marketing, General and
      Administrative                          12,665        -        12,665
     Depreciation & Amortization               2,255        -         2,255
     Impairment of Assets                      1,943        -         1,943
     Operating Income/(Loss)                  $1,139     $3,081      $4,220

     Interest & Derivative
      Income/(Expense), net                      598        -           598
     Other Income/(Expense)                   (2,136)       -        (2,136)
     Income Tax Expense (Benefit)                331        -           331

     Net Income/(Loss)                         $(730)    $3,081      $2,351

     EBITDA                                   $1,258     $3,081      $4,339

     Impairment of Assets                        -        1,943       1,943
     Non-Cash Stock Compensation                 -        1,185       1,185
     Other Non-Cash Charges                      -          396         396
     Foreign Exchange Loss                       -        2,136       2,136

     Adjusted EBITDA                          $1,258     $8,741      $9,999
     Adjusted EBITDA Margin                       4%                    31%

     Retail ARPU                              $50.78      $6.51      $57.29


                                 GLOBALSTAR, INC.
                      RECONCILIATION OF GAAP TO ADJUSTED /1
                        (In thousands, except Retail ARPU)
                                   (Unaudited)

                                                         2006
                                                     Annual Plans
                                              GAAP     Adjusted   Adjusted /1
                                           Unaudited
          Consolidated Financial
    Revenue
     Service Revenue                         $92,037     $7,899       $99,936
     Equipment Revenue                        44,634        -          44,634
     Total Revenue                          $136,671     $7,899      $144,570

    Operating Expenses
     Cost of Services                         28,091        -          28,091
     Cost of Subscriber Equipment             40,396        -          40,396
     Marketing, General and
      Administrative                          43,899        -          43,899
     Depreciation & Amortization               6,679        -           6,679
     Impairment of Assets                      1,943        -           1,943
     Operating Income/(Loss)                 $15,663     $7,899       $23,562

     Interest & Derivative
      Income/(Expense), net                   (2,131)       -          (2,131)
     Other Income/(Expense)                   (3,980)       -          (3,980)
     Income Tax Expense (Benefit)            (14,071)       -         (14,071)

     Net Income/(Loss)                       $23,623     $7,899       $31,522

     EBITDA                                  $18,362     $7,899       $26,261

     Impairment of Assets                        -        1,943         1,943
     Non-Cash Stock Compensation                 -        1,185         1,185
     Other Non-Cash Charges                      -          396           396
     Foreign Exchange Loss                       -        3,980         3,980

     Adjusted EBITDA                         $18,362    $15,403       $33,765
     Adjusted EBITDA Margin                      13%                      23%

     Retail ARPU                              $58.91      $5.55        $64.46


                                 GLOBALSTAR, INC.
                      RECONCILIATION OF GAAP TO ADJUSTED /1
                        (In thousands, except Retail ARPU)
                                   (Unaudited)


                                                         2005
                                                Q4                2005


                                          GAAP   Adjusted/1  GAAP   Adjusted/1

          Consolidated Financial
    Revenue
     Service Revenue                     $24,297  $26,241   $81,472   $83,715
     Equipment Revenue                    11,975   11,975    45,675    45,675
     Total Revenue                       $36,272  $38,216  $127,147  $129,390

    Operating Expenses
     Cost of Services                      6,187    6,187    25,432    25,432
     Cost of Subscriber Equipment         10,469   10,469    38,742    38,742
     Marketing, General and
      Administrative                       9,266    9,266    37,945    37,945
     Depreciation & Amortization           1,018    1,018     3,044     3,044
     Impairment of Assets                    -        -         114       114
     Operating Income/(Loss)              $9,332  $11,276   $21,870   $24,113

     Interest & Derivative
      Income/(Expense), net                   99       99       (27)      (27)
     Other Income/(Expense)                   35       35      (622)     (622)
     Income Tax Expense (Benefit)          1,475    1,475     2,502     2,502

     Net Income/(Loss)                    $7,991   $9,935   $18,719   $20,962

     EBITDA                              $10,385  $12,329   $24,292   $26,535

     Impairment of Assets                    -        -         -         114
     Non-Cash Stock Compensation             -        -         -         -
     Other Non-Cash Charges                  -        -         -         -
     Foreign Exchange Loss                   -        (35)      -         622

     Adjusted EBITDA                     $10,385  $12,294   $24,292   $27,271
     Adjusted EBITDA Margin                  29%      32%       19%       21%

     Retail ARPU                          $63.76   $70.44    $68.10    $70.05
    

    /1   Annual Plans are adjusted to reflect revenue as though they were
monthly plans.


    
     (1)  Adjusted Service Revenue, Adjusted EBITDA and Adjusted APRU are
          adjustments made to reflect the company's annual service pricing
          plans that are adjusted and reported as though they were Globalstar
          monthly service plans. Adjusted EBITDA is further adjusted to
          exclude non-cash stock compensation expense, asset impairment
          charges, foreign exchange gains/(losses) and certain other non-cash
          charges.  Management uses Adjusted figures for service revenue,
          EBITDA, and ARPU in order to manage the company's business and to
          compare its results more closely to the results of its peers.

     (2)  Average monthly revenue per user (ARPU) measures service revenues
          per month divided by the average number of retail subscribers during
          that month.  Average monthly revenue per user as so defined may not
          be similar to average monthly revenue per user as defined by other
          companies in the company's industry, is not a measurement under GAAP
          and should be considered in addition to, but not as a substitute
          for, the information contained in the company's statement of
          operations.  The company believes that average monthly revenue per
          user provides useful information concerning the appeal of its rate
          plans and service offerings and its performance in attracting and
          retaining high value customers.

     (3)  The company defines churn rate as the aggregate number of its retail
          subscribers (excluding Simplex customers and customers of the
          independent gateway operators) who cancel service during a month,
          divided by the average number of retail subscribers during the
          month.  Others in the company's industry may calculate churn rate
          differently.  Churn rate is not a measurement under GAAP and should
          be considered in addition to, but not as a substitute for, the
          information contained in the company's statement of operations.  The
          company believes that churn rate provides useful information
          concerning customer satisfaction with its services and products.

     (4)  EBITDA represents earnings before interest, income taxes,
          depreciation and amortization.  EBITDA does not represent and should
          not be considered as an alternative to GAAP measurements, such as
          net income, and the company's calculations thereof may not be
          comparable to similarly entitled measures reported by other
          companies.
    

    The company uses EBITDA as the primary measurement of its operating
performance because, by eliminating interest, taxes and the non-cash items of
depreciation and amortization, the company believes it best reflects changes
across time in the company's performance, including the effects of pricing,
cost control and other operational decisions.  The company's management uses
EBITDA for planning purposes, including the preparation of our annual
operating budget.  The company believes that EBITDA also is useful to
investors because it is frequently used by securities analysts, investors and
other interested parties in their evaluation of companies in similar
industries. As indicated, EBITDA does not include interest expense on borrowed
money or depreciation expense on our capital assets or the payment of taxes,
which are necessary elements of the company's operations.  Because EBITDA does
not account for these expenses, its utility as a measure of the company's
operating performance has material limitations.  Because of these limitations,
the company's management does not view EBITDA in isolation and also uses other
measurements, such as net income, revenues and operating profit, to measure
operating performance.


    
                               GLOBALSTAR, INC.
                      SCHEDULE OF SELECTED OPERATING METRICS
                              (Dollars In thousands)
                                   (Unaudited)

                                       Three Months Ended      Year Ended
                                           December 31         December 31
                                         2006      2005      2006      2005

     Subscribers (End of Period)        262,802   195,968   262,802   195,968

     Additions                            7,073    12,042    66,834    54,518

     Retail Churn                          1.2%      1.9%      1.1%      1.3%

     ARPU
      Retail
        GAAP                             $50.78    $63.76    $58.91    $68.10
        Adjusted                         $57.29    $70.44    $64.46    $70.05
      Wholesale
        GAAP                              $8.38    $15.85     $8.39    $10.70

     Capital expenditures               $40,143    $3,759  $107,544    $9,885

     Available liquidity /1            $399,279

     Note:
      /1   Includes cash and restricted cash on hand ($96.3 million) at
           December 31, 2006, liquidity from our credit facility ($150.0
           million) and Thermo standby commitment ($152.7 million).

    




For further information:

For further information: Dean Hirasawa of Globalstar, Inc., 
+1-408-933-4006, or Dean.hirasawa@globalstar.com Web Site:
http://www.globalstar.com/

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GLOBALSTAR, INC.

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