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8-K - SKYTERRA COMMUNICATIONS INCc2261008k.htm
Fourth Quarter 2009 Earnings

March 1, 2010
 
 

 
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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.
 
 

 
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March 1, 2010
SkyTerra Consolidated Income Statement 4Q 2009
 
   
Three months ended
 
   
December 31,
 
   
2009
   
2008
 
             
Revenue: 
           
       Service and related revenues 
  $ 7,282     $ 6,678  
       Equipment sales 
    693       773  
       Other revenues 
    170       183  
Total Revenue 
    8,145       7,634  
                 
Operating expenses: 
               
       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 
    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): 
               
       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  
 
 
 

 
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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 
                                   
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.
 
 
 

 
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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 
  $ 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
 
 
 

 
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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 
    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.
 
 
 

 
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NextGen System Costs ($ in mms)
March 1, 2010
 
 
   
Payments
         
Total Est.
 
   
to
   
Estimated
   
Thru
 
   
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 
  $ 21.4     $ 2.7     $ 24.1  
                         
Total: 
  $ 677.1     $ 211.0     $ 888.1  
                         
Net Available Cash: 
                       
                         
Cash on Hand (12/31/10): 
  $ 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