Globalstar reports positive adjusted EBITDA for Q4, enough liquidity

By Lisa Kerner

Charlotte, N.C., March 12 - Globalstar Inc. amended its $586.3 million senior secured facility agreement with Coface earlier this month, extending its initial repayment date to June 2013 from June 2012 and aligning covenant levels with a satellite launch schedule.

The amendment was mentioned during the company's earnings call on Monday.

Globalstar ended 2011 with $10 million of unrestricted cash and $46 million in its contingent equity account. The company has sufficient liquidity to meet its financial obligations in 2012 without the need for additional funding, according to corporate controller Rebecca Clary.

Chairman and chief executive officer Jay Monroe said the fourth-quarter results marked a turnaround for the company.

Monroe said the inflection point for Globalstar is the result of streamlined operations, new third-party agreements and other investments in operational improvements.

For the first time since the fourth quarter of 2007, Globalstar reported positive quarterly adjusted EBITDA. The figure was $1.6 million, compared with negative $4.3 million for the prior-year period.

Adjusted EBITDA was negative $3.6 million for full-year 2011, compared with negative $8.5 million in 2010.

Clary attributed the improvement to revenue growth as well as a reduction in the company's marketing, general and administrative expenses.

Fourth-quarter revenues were also up by $17.4 million, or 5%, from the fourth quarter of 2010, due mainly to higher service revenue. Total revenues increased by $4.9 million to $72.8 million during 2011 from $67.9 million in 2010.

Globalstar reported a net loss for the fourth quarter of $33.7 million, versus $18.1 million for the same period in 2010. The net loss was $54.9 million in 2011, compared with $97.5 million in 2010.

Globalstar is a Milpitas, Calif., provider of mobile satellite voice and data services.

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