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8-K - SKYTERRA COMMUNICATIONS INC | c2261008k.htm |
Fourth Quarter
2009 Earnings
March 1, 2010
March 1, 2010
2
March
1, 2010
This
presentation may contain “Forward-Looking Statements”. All
statements other than statements of historical facts made in this
presentation regarding the prospects of our industry and our
prospects, plans, financial position and business strategy may
constitute forward-looking statements. We can give no assurance
that these expectations will prove to be correct. Factors and risks
that could cause actual results to differ materially from our
expectations are described in the most recent SkyTerra Forms 10-Q
and 10-K, on file with the SEC.
statements other than statements of historical facts made in this
presentation regarding the prospects of our industry and our
prospects, plans, financial position and business strategy may
constitute forward-looking statements. We can give no assurance
that these expectations will prove to be correct. Factors and risks
that could cause actual results to differ materially from our
expectations are described in the most recent SkyTerra Forms 10-Q
and 10-K, on file with the SEC.
3
March
1, 2010
SkyTerra
Consolidated Income Statement 4Q 2009
Three
months ended
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||||||||
December
31,
|
||||||||
2009
|
2008
|
|||||||
Revenue:
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||||||||
Service
and related revenues
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$ | 7,282 | $ | 6,678 | ||||
Equipment
sales
|
693 | 773 | ||||||
Other
revenues
|
170 | 183 | ||||||
Total
Revenue
|
8,145 | 7,634 | ||||||
Operating
expenses:
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||||||||
Cost
of equipment sold
|
718 | 714 | ||||||
Operations
and cost of services
|
19,998 | 9,228 | ||||||
Sales
and marketing
|
2,339 | 2,040 | ||||||
Research
and development
|
5,242 | 4,366 | ||||||
General
and administrative
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9,179 | 9,705 | ||||||
Depreciation
and amortization
|
8,336 | 8,142 | ||||||
Impairment
of goodwill
|
- | 10,389 | ||||||
Total
operating expenses
|
45,812 | 44,584 | ||||||
Operating
loss
|
(37,667 | ) | (36,950 | ) | ||||
Other
income (expense):
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||||||||
Interest
income
|
114 | 592 | ||||||
Interest
expense
|
(27,262 | ) | (10,262 | ) | ||||
Impairment
of investment in TerreStar Networks
|
- | (11,055 | ) | |||||
Change
in fair value of warrants
|
963 | - | ||||||
Other
income (expense), net
|
211 | (232 | ) | |||||
Loss
before provision for income taxes
|
(63,641 | ) | (57,907 | ) | ||||
(Loss)/Benefit
for income taxes
|
- | 352 | ||||||
Consolidated
net loss
|
(63,641 | ) | (57,555 | ) | ||||
Noncontrolling
interest
|
356 | 129 | ||||||
Net
Loss before extraordinary gain
|
(63,285 | ) | (57,426 | ) | ||||
Extraordinary
gain on acquistion of noncontrolling interest
|
- | 3,006 | ||||||
Net
loss
|
$ | (63,285 | ) | $ | (54,420 | ) | ||
Loss
per common share:
|
||||||||
Basic
and diluted loss per common share
|
$ | (0.59 | ) | $ | (0.51 | ) | ||
Basic
and diluted weighted average common shares
outstanding
|
107,245,115 | 106,342,215 |
4
March
1, 2010
SkyTerra
Consolidated Balance Sheet
Period
Ended December 31, 2009
|
SkyTerra
Inc
|
SkyTerra
LP
|
Eliminations
|
Consolidated
|
||||||||||||||
Assets
|
||||||||||||||||||
Cash,
cash equivalents and investments
|
$ | 13,294 | $ | 253,087 | $ | - | $ | 266,382 | ||||||||||
Accounts
receivable, net
|
- | 4,778 | - | 4,778 | ||||||||||||||
Other
current assets
|
2,283 | 27,478 | - | 29,761 | ||||||||||||||
Total
Current Assets
|
15,578 | 285,343 | - | 300,921 | ||||||||||||||
Investment
in TerreStar
|
7,370 | 7,370 | ||||||||||||||||
Investment
in SkyTerra LP
|
74,228 | (74,228 | ) | (1) | ||||||||||||||
Property
& equipment, net
|
- | 956,617 | - | 956,617 | ||||||||||||||
Other
long-term assets
|
275 | 551,263 | (31,438 | ) | (2) | 520,101 | ||||||||||||
Total
Assets
|
$ | 97,450 | $ | 1,793,224 | $ | (105,665 | ) | $ | 1,785,009 | |||||||||
Liabilities
and Stockholders Equity
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||||||||||||||||||
Current
Liabilities
|
$ | 5,488 | $ | 66,769 | $ | - | $ | 72,257 | ||||||||||
Short
term debt
|
- | 114,921 | - | 114,921 | ||||||||||||||
Long
term debt
|
- | 1,282,991 | - | 1,282,991 | ||||||||||||||
Other
long term liabilities
|
33,151 | 15,222 | (31,438 | ) | (2) | 16,935 | ||||||||||||
Total
Liabilities
|
38,639 | 1,479,903 | (31,438 | ) | 1,487,104 | |||||||||||||
Stockholders'
(deficit) equity:
|
58,811 | 313,321 | (74,228 | ) | (1) | 297,905 | ||||||||||||
Total
liabilities and stockholders equity
|
$ | 97,450 | $ | 1,793,224 | $ | (105,665 | ) | $ | 1,785,009 | |||||||||
(1)
|
Eliminate
SkyTerra Inc. warrants issued on Harbinger and Boeing debt to SkyTerra
LP.
|
(2)
|
Eliminate
intercompany note and accrued
interest.
|
5
March
1, 2010
SkyTerra Capital
Structure (1)
SkyTerra
Capitalization Structure
|
||||
SKYT
Debt :
|
||||
14% Senior Secured Discount Notes (SKYT LP)
|
724,649,255 | |||
16.5% Senior Unsecured Notes (SKYT LP)
|
179,327,167 | |||
18.0% Senior Unsecured Notes (SKYT LP)
|
379,014,731 | |||
Boeing Deferrals (SKYT LP)
|
114,921,141 | |||
SKYT Debt
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$ | 1,397,912,295 | ||
SKYT
Cash and Liquid Investments
|
$ | 266,381,579 | ||
SKYT Net Debt (1)
|
$ | 1,131,530,716 | ||
SKYT
Market Capitalization :
|
||||
SKYT Total Common Shares Outstanding
|
109,021,352 | |||
SKYT
and MSV Options (2)
|
6,112,392 | |||
SKYT Warrants
|
28,750,000 | |||
SKYT Fully Diluted Shares Outstanding
|
143,883,744 |
(1)
|
Reflects
balance sheet net of Original Issue Discount and Purchase
Accounting
|
(2)
|
Using
Treasury Method at $5.00 per
share
|
6
March
1, 2010
SkyTerra
Ownership
Voting
|
Non-Voting
|
Total
|
||||||||||
Harbinger
Share Ownership
|
22,339,283 | 29,946,362 | 52,285,645 | |||||||||
Plus: Warrants (1)
|
0 | 28,750,000 | 28,750,000 | |||||||||
Total
Ownership
|
22,339,283 | 58,696,362 | 81,035,645 | |||||||||
Escrow Shares (2)
|
2,077,533 | 7,906,737 | 9,984,270 | |||||||||
BCE
|
0 | 22,105,400 | 22,105,400 | |||||||||
Columbia
Capital
|
5,623,165 | 0 | 5,623,165 | |||||||||
Other
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19,022,872 | 0 | 19,022,872 | |||||||||
Primary
Shares Outstanding
|
49,062,853 | 88,708,499 | 137,771,352 | |||||||||
SKYT/MSV Options
(3)
|
6,112,392 | 0 | 6,112,392 | |||||||||
Fully-Diluted
Shares Outstanding
|
55,175,245 | 88,708,499 | 143,883,744 |
(1)
|
The
warrants may be exercised for voting or non-voting
shares.
|
(2)
|
Pursuant
to escrow agreements, shares are to be transferred to Harbinger upon FCC
approval.
|
(3)
|
Using
Treasury Method @ $5.00 per
share.
|
7
NextGen System
Costs ($ in mm’s)
March
1, 2010
Payments
|
Total
Est.
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|||||||||||
to
|
Estimated
|
Thru
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||||||||||
Date
|
Thru
3Q10
|
3Q10 | ||||||||||
Boeing:
|
$ | 491.9 | $ | 54.9 | $ | 546.8 | ||||||
Satellite
Base Station Development:
|
$ | 40.1 | $ | 18.6 | $ | 58.7 | ||||||
Launch
Services:
|
$ | 113.7 | $ | 39.2 | $ | 152.8 | ||||||
Insurance:
|
$ | - | $ | 70.0 | $ | 70.0 | ||||||
Chipset
Development:
|
$ | 10.0 | $ | 25.7 | $ | 35.6 | ||||||
MSS
Next Gen
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$ | 21.4 | $ | 2.7 | $ | 24.1 | ||||||
Total:
|
$ | 677.1 | $ | 211.0 | $ | 888.1 | ||||||
Net Available Cash:
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||||||||||||
Cash
on Hand (12/31/10):
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$ | 266.4 | ||||||||||
Plus:
Backstop Financing:
|
$ | 100.0 | 1 | |||||||||
Less:
Satellite System and Next Gen Costs:
|
$ | (211.0 | ) | |||||||||
Net
Available Cash:
|
$ | 155.4 | 2 |
1.
As part of the Merger Agreement with Harbinger $100 million financing postponed
until 10 days after the termination of the Merger Agreement
2.
Available to fund other operating and transaction costs, potential expenditures
beyond Q3 2010