There were 576 press releases posted in the last 24 hours and 171,541 in the last 365 days.

Telesat Reports Results for the Quarter Ended June 30, 2017

OTTAWA, July 25, 2017 (GLOBE NEWSWIRE) -- Telesat Canada (“Telesat”) today announced its financial results for the three and six-month periods ended June 30, 2017. All amounts are in Canadian dollars and are reported under International Financial Reporting Standards (“IFRS”) unless otherwise noted.

For the quarter ended June 30, 2017, Telesat reported consolidated revenues of $226 million, or a decline of 3% ($6 million) from the same period in 2016.  The decline in revenue was primarily due to short-term services provided to another satellite operator in the second quarter of 2016, partially offset by favorable foreign exchange rate changes on the conversion of U.S. dollar revenue, as the U.S. dollar was approximately 5% stronger on average against the Canadian dollar than it was during the second quarter of 2016.  Excluding the impact of foreign exchange rate changes, revenue decreased by 5% ($12 million) compared to the same period in 2016.

Operating expenses of $44 million for the quarter were 5% ($2 million) higher than the same period in 2016, or 2% ($1 million) higher excluding the impact of changes in foreign exchange rates.  Adjusted EBITDA1 for the quarter was $184 million, a decrease of 4% ($7 million) compared to the same period in 2016 and a decrease of 7% ($13 million) when adjusted for foreign exchange rate changes. The Adjusted EBITDA margin1 for the second quarter of 2017 was 81.3%, as compared to 82.5% in the same period in 2016.

For the six-month period ended June 30, 2017, revenue was $461 million, a decrease of 1% ($6 million) compared to the same period in 2016. When adjusted for changes in foreign exchange rates, revenues declined 2% ($9 million) compared to the same period in 2016. Operating expenses were $99 million, an increase of 11% ($10 million) from the first half of 2016.  The increase in operating expenses was due to compensation expense associated with certain payments to option holders made in connection with the cash distribution to shareholders in the first quarter of 2017.  Adjusted EBITDA1 was $376 million, a decrease of 2% ($6 million). When adjusted for foreign exchange rate changes Adjusted EBITDA1 declined by 2.5% ($10 million) compared to 2016. The Adjusted EBITDA margin1 for the first half of 2017 was 81.6%, compared to 81.9% in the same period in 2016.

Telesat’s net income for the quarter was $148 million compared to net income of $62 million for the quarter ended June 30, 2016. The $86 million difference was the result of a higher non-cash gain on foreign exchange arising principally from the translation of Telesat’s U.S. dollar denominated debt into Canadian dollars and favorable changes in the fair value of financial instruments in the second quarter of 2017.

For the six-month period ended June 30, 2017, net income was $236 million, compared to net income of $299 million for the same period in 2016. The decrease in net income for the first half of the year was principally the result of lower gains on foreign exchange in the first half of 2017, arising from the translation of Telesat’s U.S. dollar denominated debt into Canadian dollars, partially offset by favorable changes in the fair value of financial instruments.

“Lower revenue and Adjusted EBITDA1 in the second quarter compared to the same period last year is a function principally of certain short-term satellite services we provided to another satellite operator in the prior period that did not recur in the second quarter of this year,” commented Dan Goldberg, Telesat’s President and CEO. “Absent that item our results would have been more stable. Looking ahead, we are focused on increasing the utilization of our available in-orbit capacity, maintaining our operating discipline and executing on our key growth initiatives.”

Business Highlights

/EIN News/ -- •   At June 30, 2017:

  • Telesat had contracted backlog2 for future services of approximately $3.9 billion.
     
  • Fleet utilization was 94% for Telesat’s North American fleet and 64% for Telesat’s international fleet. 

Telesat’s report on Form 6-K for the quarter ended June 30, 2017, has been filed with the United States Securities and Exchange Commission (“SEC”) and may be accessed on the SEC’s website at www.sec.gov.  

Telesat has scheduled a conference call on Wednesday July 26, 2017, at 09:00 a.m. ET to discuss its financial results for the three and six month periods ended June 30, 2017.  The call will be hosted by Daniel S. Goldberg, President and Chief Executive Officer, and Michel Cayouette, Chief Financial Officer, of Telesat. 

Prior to the commencement of the call, Telesat will post a news release containing its financial results on its website (www.telesat.com) under the tab “News & Events” and the heading “News”. 

Dial-in Instructions:

The toll-free dial-in number for the teleconference is +1 (800) 377-0758.  Callers outside of North America should dial +1 (416) 340-2218. The conference reference number is 4264739.  Please allow at least 15 minutes prior to the scheduled start time to connect to the teleconference.

Dial-in Audio Replay:

A replay of the teleconference will be available one hour after the end of the call on July 26, 2017, until 11:59 p.m. ET on August 9, 2017.  To access the replay, please call +1 (800) 408-3053.  Callers outside of North America should dial +1 (905) 694-9451.  The access code is 8681512 followed by the number sign (#).

All Adjusted EBITDA, Adjusted EBITDA margins and backlog measures included in this release are non-IFRS financial measures, as described in the End Notes section of this release. For information reconciling Adjusted EBITDA and the Adjusted EBITDA margins to the most comparable IFRS financial measures, please see the consolidated financial information below.

Forward-Looking Statements Safe Harbor

This news release contains statements that are not based on historical fact and are ‘‘forward-looking statements’’ within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words “looking ahead”, “executing”, and “maintaining”, or other variations of these words or other similar expressions are intended to identify forward-looking statements and information. Actual results may differ materially from the expectations expressed or implied in the forward-looking statements as a result of known and unknown risks and uncertainties. Detailed information about some of the known risks and uncertainties is included in the “Risk Factors” section of Telesat Canada’s Annual Report on Form 20-F for the fiscal year ended December 31, 2016 which can be obtained on the SEC website at http://www.sec.gov. Known risks and uncertainties include but are not limited to: risks associated with operating satellites and providing satellite services, including satellite construction or launch delays, launch failures, in-orbit failures or impaired satellite performance, volatility in exchange rates and risks associated with domestic and foreign government regulation. The foregoing list of important factors is not exhaustive. The information contained in this news release reflects Telesat’s beliefs, assumptions, intentions, plans and expectations as of the date of this news release. Except as required by law, Telesat disclaims any obligation or undertaking to update or revise the information herein.    

About Telesat (www.telesat.com)

Telesat is a leading global satellite operator, providing reliable and secure satellite-delivered communications solutions worldwide to broadcast, telecom, corporate and government customers. Headquartered in Ottawa, Canada, with offices and facilities around the world, the company’s state-of-the-art fleet consists of 15 satellites, the Canadian payload on ViaSat-1, and two new satellites under construction. An additional two prototype satellites are under construction for launch into low earth orbit (LEO) as part of Telesat’s plans to deploy an advanced, global LEO satellite constellation offering low latency, high throughput broadband services. Telesat also manages the operations of additional satellites for third parties. Privately held, Telesat’s principal shareholders are Canada’s Public Sector Pension Investment Board and Loral Space & Communications Inc. (NASDAQ:LORL).

               
Telesat Canada
(Formerly Telesat Holdings Inc.)
Condensed Consolidated Statements of Income
For the periods ended June 30
                 
                 
    Three months   Six months
(in thousands of Canadian dollars) (unaudited)     2017       2016       2017       2016    
Revenue   $ 225,982     $ 231,686     $ 460,651     $ 466,619    
Operating expenses     (43,980 )     (42,302 )     (99,178 )     (89,149 )  
      182,002       189,384       361,473       377,470    
Depreciation     (56,129 )     (56,193 )     (112,251 )     (112,478 )  
Amortization     (6,585 )     (7,150 )     (13,172 )     (13,760 )  
Other operating gains (losses), net     3       (43 )     (21 )     (2,547 )  
Operating income     119,291       125,998       236,029       248,685    
Interest expense     (50,448 )     (46,846 )     (100,198 )     (97,065 )  
Interest and other (expense) income     (1,332 )     1,199       (1,140 )     2,374    
Gain (loss) on changes in fair value of financial instruments     1,783       (18,428 )     14,305       (24,297 )  
Gain on foreign exchange     96,106       18,977       119,593       208,499    
Income before tax     165,400       80,900       268,589       338,196    
Tax expense     (17,766 )     (19,171 )     (32,972 )     (39,101 )  
Net income   $ 147,634     $ 61,729     $ 235,617     $ 299,095    
                                   


Telesat Canada
(Formerly Telesat Holdings Inc.)
Condensed Consolidated Balance Sheets
             
             
(in thousands of Canadian dollars) (unaudited)    June 30,
2017
   December 31,
2016

             
Assets            
Cash and cash equivalents   $ 354,719   $ 782,406
Trade and other receivables     45,588     55,639
Other current financial assets     2,350     2,548
Prepaid expenses and other current assets     40,568     61,107
Total current assets     443,225     901,700
Satellites, property and other equipment     1,845,507     1,915,411
Deferred tax assets     4,506     2,844
Other long-term financial assets     50,042     35,687
Other long-term assets     3,452     3,815
Intangible assets     823,081     832,512
Goodwill     2,446,603     2,446,603
Total assets   $ 5,616,416   $ 6,138,572
             
Liabilities            
Trade and other payables   $ 29,476   $ 44,107
Other current financial liabilities     26,698     58,992
Other current liabilities     98,661     80,448
Current indebtedness     15,427     21,931
Total current liabilities     170,262     205,478
Long-term indebtedness     3,649,680     3,829,707
Deferred tax liabilities     459,463     471,233
Other long-term financial liabilities     77,711     81,252
Other long-term liabilities     362,195     356,861
Total liabilities     4,719,311     4,944,531
             
Shareholders' Equity            
Share capital     152,682     658,735
Accumulated earnings     703,480     467,863
Reserves     40,943     67,443
Total shareholders' equity     897,105     1,194,041
Total liabilities and shareholders' equity   $ 5,616,416   $ 6,138,572
             


Telesat Canada
(Formerly Telesat Holdings Inc.)
Condensed Consolidated Statements of Cash Flows
For the six months ended June 30
           
           
                   
(in thousands of Canadian dollars) (unaudited)   2017     2016  
             
Cash flows from operating activities            
Net income   $ 235,617     $ 299,095  
Adjustments to reconcile net income to cash flows from operating activities            
  Depreciation     112,251       112,478  
  Amortization     13,172       13,760  
  Tax expense     32,972       39,101  
  Interest expense     100,198       97,065  
  Interest income     (2,513 )     (3,109 )
  Gain on foreign exchange     (119,593 )     (208,499 )
  (Gain) loss on changes in fair value of financial instruments     (14,305 )     24,297  
  Share-based compensation     1,689       3,324  
  Loss on disposal of assets     21       2,547  
  Other     (21,269 )     (19,158 )
Income taxes paid, net of income taxes received     (33,047 )     (65,090 )
Interest paid, net of capitalized interest and interest received     (107,377 )     (77,388 )
Repurchase of stock options           (24,658 )
Operating assets and liabilities     54,111       71,720  
Net cash from operating activities     251,927       265,485  
             
Cash flows used in investing activities            
Satellite programs, including capitalized interest     (66,973 )     (99,523 )
Purchase of property and other equipment     (5,726 )     (3,785 )
Purchase of intangible assets     (12,653 )     (36,745 )
Net cash used in investing activities     (85,352 )     (140,053 )
             
Cash flows used in financing activities            
Repayment of indebtedness     (16,241 )     (49,824 )
Payment of debt issue costs     (42,867 )      
Return of capital to shareholders     (506,135 )      
Capital lease payments     (15 )     (15 )
Satellite performance incentive payments     (4,349 )     (3,652 )
Proceeds from exercise of stock options     77        
Settlement of derivatives     206        
Net cash used in financing activities     (569,324 )     (53,491 )
             
Effect of changes in exchange rates on cash and cash equivalents     (24,938 )     (26,398 )
             
(Decrease) increase in cash and cash equivalents     (427,687 )     45,543  
Cash and cash equivalents, beginning of period     782,406       690,726  
Cash and cash equivalents, end of period   $ 354,719     $ 736,269  
                 

Telesat’s Adjusted EBITDA margin(1)

    Three months ended June 30,   Six months ended June 30,
(in thousands of Canadian dollars) (unaudited)   2017     2016     2017     2016  
Net income   $ 147,634     $ 61,729     $ 235,617     $ 299,095  
Tax expense     17,766       19,171       32,972       39,101  
(Gain) loss on changes in fair value of financial instruments     (1,783 )     18,428       (14,305 )     24,297  
Gain on foreign exchange     (96,106 )     (18,977 )     (119,593 )     (208,499 )
Interest and other expense (income)     1,332       (1,199 )     1,140       (2,374 )
Interest expense     50,448       46,846       100,198       97,065  
Depreciation     56,129       56,193       112,251       112,478  
Amortization     6,585       7,150       13,172       13,760  
Other operating losses, net     (3 )     43       21       2,547  
Non-recurring compensation expenses(3)     845       142       12,710       1,302  
Non-cash expense related to share-based compensation     790       1,579       1,689       3,324  
Adjusted EBITDA   $ 183,637     $ 191,105     $ 375,872     $ 382,096  
                         
Revenue   $ 225,982     $ 231,686     $ 460,651     $ 466,619  
Adjusted EBITDA Margin   81.3 %     82.5 %     81.6 %     81.9 %
                                 

End Notes

1 The common definition of EBITDA is “Earnings Before Interest, Taxes, Depreciation and Amortization.” In evaluating financial performance, Telesat uses revenue and deducts certain operating expenses (including share-based compensation expense and unusual and non-recurring items, including restructuring related expenses) to obtain operating income before interest expense, taxes, depreciation and amortization (“Adjusted EBITDA”) and the Adjusted EBITDA margin (defined as the ratio of Adjusted EBITDA to revenue) as measures of Telesat’s operating performance.

Adjusted EBITDA allows Telesat and investors to compare Telesat’s operating results with that of competitors exclusive of depreciation and amortization, interest and investment income, interest expense, taxes and certain other expenses. Financial results of competitors in the satellite services industry have significant variations that can result from timing of capital expenditures, the amount of intangible assets recorded, the differences in assets’ lives, the timing and amount of investments, the effects of other income (expense), and unusual and non-recurring items. The use of Adjusted EBITDA assists Telesat and investors to compare operating results exclusive of these items. Competitors in the satellite services industry have significantly different capital structures. Telesat believes the use of Adjusted EBITDA improves comparability of performance by excluding interest expense.

Telesat believes the use of Adjusted EBITDA and the Adjusted EBITDA margin along with IFRS financial measures enhances the understanding of Telesat’s operating results and is useful to Telesat and investors in comparing performance with competitors, estimating enterprise value and making investment decisions. Adjusted EBITDA as used here may not be the same as similarly titled measures reported by competitors. Adjusted EBITDA should be used in conjunction with IFRS financial measures and is not presented as a substitute for cash flows from operations as a measure of Telesat’s liquidity or as a substitute for net income as an indicator of Telesat’s operating performance.

2 Contracted revenue backlog (‘‘backlog’’) represents Telesat’s expected future revenue from existing service contracts (without discounting for present value) including any deferred revenue that Telesat will recognize in the future in respect of cash already received. The majority of Telesat’s contracted revenue backlog is generated from contractual agreements for satellite capacity.  Backlog is not a presentation made in accordance with IFRS. The presentation of backlog is not comparable to other similarly titled measures of other companies because not all companies use identical calculations of backlog. Telesat believes the disclosure of the recognition of backlog provides information that is useful to an investor’s understanding of its expected known revenue recognition.

3 Includes severance payments and special compensation and benefit for executives and employees.

For further information: 
Michael Bolitho, Telesat, +1 (613) 748-8700 ext. 2336;  ir@telesat.com

Primary Logo