OTTAWA, CANADA – Could 10, 2024 –Telesat (NASDAQ and TSX: TSAT), one of many world’s largest and most progressive satellite tv for pc operators, immediately introduced its monetary outcomes for the quarter ended March 31, 2024. All quantities are in Canadian {dollars} and reported below Worldwide Monetary Reporting Requirements (IFRS) except in any other case famous.
“I’m happy with our monetary and working efficiency for the primary quarter,” commented Dan Goldberg, Telesat’s President and CEO. “We stay on monitor to satisfy our 2024 steerage and, on account of our continued disciplined execution, delivered industry-leading Adjusted EBITDA margins1, excessive capability utilization, a considerable contractual backlog2 of $1.2 billion, and a money stability of $1.8 billion.”
Goldberg added: “Our focus this 12 months stays twofold. First, in our geostationary actions, maximize our Adjusted EBITDA1 and money stream by in search of to mitigate anticipated income declines and rigorously handle our legacy value construction. Second, speed up implementation and commercialization of Telesat Lightspeed now that we have now agreed to phrases with the Authorities of Canada on funding for this system. We imagine Telesat Lightspeed, our state-of-the-art Low Earth Orbit (LEO) world broadband constellation, will revolutionize broadband connectivity for enterprise and authorities customers and represents a extremely compelling development and worth creation alternative for Telesat and its stakeholders.”
For the quarter ended March 31, 2024, Telesat reported consolidated income of $152 million, a lower of 17% ($31 million) in comparison with the identical interval in 2023. The change in overseas change charges had a minimal affect. The lower was primarily attributable to a discount of providers and decrease fee on the renewal of a long-term settlement with a North American direct-to-home buyer in addition to decrease income from sure mobility and Latin American prospects and decrease gear gross sales to Canadian Authorities prospects.
Working bills for the quarter had been $47 million, a lower of 12% ($6 million) from 2023.
The change in overseas change charges had a minimal affect. The lower was primarily attributable to decrease non-cash share-based compensation and better capitalized engineering expense relative to the prior interval.
Adjusted EBITDA1 for the quarter was $111 million, a lower of 20% ($28 million). The change in overseas change charges had a minimal affect. The Adjusted EBITDA margin1 was 72.8%, in comparison with 75.7% in the identical interval in 2023.
Telesat internet loss for the quarter was $52 million in comparison with internet earnings of $28 million for a similar interval within the prior 12 months. The change was primarily attributable to a unfavorable variation within the acquire (loss) on overseas change.
Enterprise Highlights
- Authorities of Canada Funding for Telesat Lightspeed:
- On March 28, 2024, Telesat and Authorities of Canada agreed to phrases on a $2.14 billion mortgage for Telesat Lightspeed.
- Authorities of Canada to obtain warrants for 10% of the widespread shares of Telesat LEO Inc. primarily based upon an fairness valuation of US$3 billion.
- The Authorities of Canada funding is topic to sure situations, together with the entry of definitive documentation with the Authorities of Canada and Telesat’s different financing sources.
- At March 31, 2024:
- Telesat had contracted backlog2 for future providers of roughly $1.2 billion (excluding roughly $740 million in income commitments related to Telesat Lightspeed).
- Fleet utilization was 77%.
- Debt Repurchase:
- Subsequent to quarter finish and as much as Could 8, 2024, Telesat repurchased debt with a cumulative principal quantity of US$219.5 million in change for an mixture value together with accrued curiosity of US$98.9 million.
- Mixed with the debt repurchases accomplished in 2022 and 2023, Telesat has repurchased a cumulative principal quantity of US$806.5 million for an mixture value together with accrued curiosity of US$438.3 million.
- Subsequent to quarter finish and as much as Could 8, 2024, Telesat repurchased debt with a cumulative principal quantity of US$219.5 million in change for an mixture value together with accrued curiosity of US$98.9 million.
2024 Monetary Outlook
(assumes a overseas change fee of US$1=C$1.35)
For 2024, Telesat continues to count on full 12 months:
- revenues to be between $545 million and $565 million;
- Adjusted EBITDA1 to be between $340 million and $360 million, which displays Telesat Lightspeed working bills of between $80 million and $90 million; and
- money flows utilized in investing actions to be within the vary of $1,000 million to $1,400 million, which is almost all associated to anticipated Telesat Lightspeed capital expenditures.
Telesat’s quarterly report on Type 6-Okay for the quarter ended March 31, 2024, has been filed with the US Securities and Trade Fee (SEC) and the Canadian securities regulatory authorities, and could also be accessed on the SEC’s web site at www.sec.gov and on the System for Digital Doc Evaluation and Retrieval+ (SEDAR) web site at www.sedarplus.ca.
Convention Name
Telesat has scheduled a convention name on Friday, Could 10, 2024, at 10:30 a.m. ET to debate its monetary outcomes for the Quarter ended March 31, 2024. The decision will probably be hosted by Daniel S. Goldberg, President and Chief Govt Officer, and Andrew Browne, Chief Monetary Officer, of Telesat.
Dial-in Directions:
The toll-free dial-in quantity for the teleconference is +1 800 806 5484. Callers outdoors of North America ought to dial +1 416 340 2217. The entry code is 6484355 adopted by the quantity signal (#). Please enable no less than quarter-hour previous to the scheduled begin time to hook up with the teleconference. Within the occasion of technical points, please dial *0 and advise the convention name operator of the corporate title (Telesat) and the title of the moderator (Michael Bolitho).
Webcast:
The convention name can be accessed, as a pay attention in solely, at https://edge.media-server.com/mmc/p/ddumsxtm A replay of the webcast will probably be archived on Telesat’s web site below the tab “Buyers”.
Dial-in Audio Replay:
A replay of the teleconference will probably be obtainable one hour after the top of the decision on Could 10, 2024 till 11:59 p.m. ET on Could 24, 2024. To entry the replay, please name +1 800 408 3053. Callers from outdoors North America ought to dial +1 905 694 9451. The entry code is 7879436 adopted by the quantity signal (#).
