Globalstar may raise some capital in 2017 and 2018, chief executive officer says

By Devika Patel

Knoxville, Tenn., Jan. 6 – Globalstar Inc. plans to raise a fair amount of capital in 2017 and 2018.

“Recently, some of [the company’s] detractors have focused on Globalstar’s capital raising needs,” executive chairman of the board of directors and chief executive officer “Jay” Monroe III said on the company’s third quarter earnings call on Friday

“The company does in fact plan to raise a modest amount of capital in 2017 and 2018.

“We’ll have to meet any unmet principal and interest needs, that is cash that’s not provided by operations and other sources,” Monroe said on the call.

Second quarter highlights

The company announced that operating cash generation was $14.9 million in the second quarter of fiscal 2017 and free cash flow generation was $13.6 million, according a press release.

For the quarter, the company recorded net income of $13.7 million, or $0.37 on a per share basis, driven primarily by adjustments to contingent consideration and operational improvements. The company recorded a net loss of $0.3 million, or $0.01 on a per share basis, in the second quarter of fiscal 2016.

The adjusted net income for the second quarter of fiscal 2017 was $6.9 million, or $0.19 per share, compared to an adjusted net income of $5.1 million, or $0.14 per share, in the second quarter of fiscal 2016.

Adjusted EBITDA in the second quarter of fiscal 2017 was $16.1 million, or $0.43 per share, compared to $13.5 million, or $0.37 per share, in the second quarter of fiscal 2016.

In the second quarter of fiscal 2017, the company generated $14.9 million in operating cash flow and $13.6 million in free cash flow. As of Nov. 30, 2016, cash and cash equivalents were $35.7 million and debt was $116.5 million.

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

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