Globalstar Announces 2013 First Quarter Results

Globalstar Announces 2013 First Quarter Results

  *Total revenue grew 16% from first quarter of 2012
  *Adjusted EBITDA improved $1.1 million, or approximately 80%, from first
    quarter of 2012
  *Duplex ARPU increased 25% to $19.24 during first quarter of 2013

COVINGTON, La., May 9, 2013 (GLOBE NEWSWIRE) -- Globalstar, Inc. (OTCBB:GSAT)
today announced its financial results for the three-month period ended March
31, 2013.

FIRST QUARTER FINANCIAL REVIEW

Jay Monroe, Chairman and CEO of Globalstar, commented, "Our first quarter
results represent a very strong start to what we expect to be a pivotal year
for Globalstar. We recorded our sixth consecutive quarter of positive Adjusted
EBITDA, which nearly doubled from the first quarter of last year.
Additionally, the metrics underlying our reported results, particularly rising
Duplex ARPU, equipment sales, and minutes of use, offer strong evidence of the
revenue and earnings power that is now beginning to build with the
second-generation constellation being placed into service. Anticipating full
Duplex restoration, customers are returning in increasing numbers, and our
marketing and distribution efforts aimed at further increasing our addressable
market are uncovering tremendous new opportunities for Globalstar."

Revenue

Revenue was $19.3 million for the first quarter of 2013 compared to $16.7
million for the first quarter of 2012, an increase of approximately $2.6
million, or 16%.

Service revenue was $15.4 million for the first quarter of 2013 compared to
$12.6 million for the first quarter of 2012. The primary drivers of this
increase were growth in SPOT revenue, which increased $1.8 million, or 33%,
through growth in the average subscriber base of 20% and ARPU growth of 11%
(both excluding deactivated subscribers^1), and to a lesser extent growth in
Duplex revenue of $0.6 million, or 15%, driven by 25% growth in Duplex ARPU.
Simplex service revenue also increased $0.5 million, or 39%. Duplex service
ARPU reached $19.24, the highest level since the third quarter of 2010, as
Globalstar's network performance continues to improve, supporting higher
subscriber rate plans and further increases in usage.

Subscriber equipment sales of $3.9 million decreased 4% in the first quarter
of 2013 from the first quarter of 2012. Duplex equipment sales increased $0.4
million, or 47%, and Simplex equipment sales decreased $0.5 million, or 24%,
due primarily to the change in mix of products sold during the quarter. Sales
of SPOT equipment were relatively flat due to both reductions in unit pricing
and the change in mix of products sold during the quarter.

Net Loss

The Company reported a net loss of $25.1 million for the first quarter of 2013
compared to a net loss of $24.5 million for the first quarter of 2012.
Increased net loss was due primarily to higher depreciation expense as the
Company placed additional satellites into service and higher interest expense
as the amount of interest being capitalized decreases, offset partially by the
impact of non-cash derivative gains and losses.

Adjusted EBITDA

Adjusted EBITDA was $2.5 million for the first quarter of 2013 compared to
$1.4 million for the first quarter of 2012. This 82% improvement in Adjusted
EBITDA resulted from an increase in revenue, partially offset by an increase
in operating expenses as the Company made strategic investments in sales and
marketing initiatives.

^1Beginning in 2013, Globalstar initiated a process to deactivate certain
suspended subscribers in its SPOT subscriber base. As of March 31, 2013,
approximately 36,000 subscribers were deactivated. For purposes of calculating
a normalized subscriber and ARPU variance, these deactivated subscribers were
excluded from 2012 metrics, resulting in average subscribers of 188,480 during
the first quarter of 2012.

Liquidity

The holders of the Company's 5.75% Convertible Senior Notes ("5.75% Notes")
had the right to surrender their 5.75% Notes for purchase by Globalstar on
April 1, 2013 at an aggregate purchase price of $71.8 million. The Company did
not have sufficient funds to purchase the tendered 5.75% Notes or to make the
semi-annual payment of interest on the 5.75% Notes, also due on April 1, 2013.
Effective as of April 1, 2013, the Company entered into a forbearance
agreement (as subsequently amended, the "Forbearance Agreement") with the
holders of approximately 78% of the 5.75% Notes. Pursuant to the Forbearance
Agreement, these holders have agreed to forbear until May 13, 2013 from
exercising any of their rights and remedies under the 5.75% Notes, including
accelerating the 5.75% Notes. Globalstar is actively negotiating with the note
holders the terms of a potential debt exchange arrangement. The Company has
received initial credit committee approval from the lenders under its senior
secured credit facility to the exchange, as well as initial approval from
COFACE. Until final documentation is completed and signed and any exchange
transaction is closed, there is no assurance that an agreement will be
concluded with the note holders or that final consent from the lenders will be
obtained.

OPERATIONAL AND REGULATORY UPDATE

Second-Generation Constellation

  *All satellites launched on February 6, 2013 have been fully and
    successfully tested. Two have been placed into commercial service, two are
    scheduled to be placed into service by the end of May, and the remaining
    new satellites are on track to be placed into service by mid-summer.

Regulatory Reform for Terrestrial Authority

  *In January, Globalstar filed with the Federal Communications Commission
    ("FCC") its responses to all comments received with regard to its November
    13, 2012 Petition for Rulemaking with the FCC to obtain the regulatory
    flexibility necessary to use the Company's licensed MSS spectrum
    terrestrially to support mobile broadband applications throughout the
    United States. With the comment cycle closed, the FCC is now reviewing the
    information filed in the record of that proceeding.

Mr. Monroe concluded, "We are on track to move our remaining recently-launched
satellites into their final positions in low-earth orbit, restoring full
higher-margin Duplex service. In addition, we have five feature-rich new
products set to launch this year that are positioned to broaden our customer
appeal - two of these products will be released this month. Given our dealers'
and customers' positive reception to our new Duplex service plans that
recalibrate our pricing while offering obvious cost savings versus
competitors' rates, we are confident in building revenue and EBITDA momentum
in the second half of the year towards further acceleration in 2014. Finally,
we look forward to working with the FCC to complete our near-term plans with
regard to regulatory flexibility, which we hope can be accomplished by
year-end. We anticipate 2013 will be a decisive year for Globalstar."

CONFERENCE CALL

Globalstar plans to hold an investor conference call after the conclusion of
the debt exchange negotiations described above. Globalstar will release
dial-in information and details once the call is scheduled.

About Globalstar, Inc. Globalstar is a leading provider of mobile satellite
voice and data services. Globalstar offers these services to commercial
customers and recreational consumers in more than 120 countries around the
world. The Company's products include mobile and fixed satellite telephones,
simplex and duplex satellite data modems, flexible airtime service packages
and the SPOT family of mobile satellite consumer products including the SPOT
Satellite GPS Messenger. Many land based and maritime industries benefit from
Globalstar with increased productivity from remote areas beyond cellular and
landline service. Global customer segments include: oil and gas, government,
mining, forestry, commercial fishing, utilities, military, transportation,
heavy construction, emergency preparedness, and business continuity as well as
individual recreational users. Globalstar data solutions are ideal for various
asset and personal tracking, data monitoring and SCADA applications. Note that
all SPOT products described in this press release are the products of Spot
LLC, which is not affiliated in any manner with Spot Image of Toulouse, France
or Spot Image Corporation of Chantilly, Virginia.

For more information regarding Globalstar, please visit Globalstar's web site
at www.globalstar.com

Safe Harbor Language for Globalstar Releases

This press release contains certain statements that are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are based on current expectations
and assumptions that are subject to risks and uncertainties which may cause
actual results to differ materially from the forward-looking statements.
Forward-looking statements, such as the statements regarding our ability to
raise additional capital to pay or restructure our obligations as they come
due, develop and expand our business, pay for our anticipated capital spending
(including for future satellite procurements and launches), our ability to
manage costs, our ability to exploit and respond to technological innovation,
the effects of laws and regulations (including tax laws and regulations) and
legal and regulatory changes, the opportunities for strategic business
combinations and the effects of consolidation in our industry on us and our
competitors, our anticipated future revenues, our anticipated financial
resources, our expectations about the future operational performance of our
satellites (including their projected operational lives), the expected
strength of and growth prospects for our existing customers and the markets
that we serve, commercial acceptance of our new Simplex products, including
our SPOT satellite GPS messenger^TMproducts, problems relating to the
ground-based facilities operated by us or by independent gateway operators,
worldwide economic, geopolitical and business conditions and risks associated
with doing business on a global basis and other statements contained in this
release regarding matters that are not historical facts, involve predictions.

Any forward-looking statements made in this press release speak as of the date
made and are not guarantees of future performance. Actual results or
developments may differ materially from the expectations expressed or implied
in the forward-looking statements, and we undertake no obligation to update
any such statements. Additional information on factors that could influence
our financial results is included in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.

GLOBALSTAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(unaudited)
                                                               
                                                 Three Months Ended March 31,
                                                 2013           2012
Revenue:                                                        
Service revenues                                  $15,390      $12,627
Subscriber equipment sales                        3,943         4,111
Total revenue                                     19,333        16,738
Operating expenses:                                             
Cost of services (exclusive of depreciation,
amortization, and accretion shown separately      7,527         7,262
below)
Cost of subscriber equipment sales                2,940         2,723
Cost of subscriber equipment sales - reduction in --           249
the value of inventory
Marketing, general, and administrative            6,924         6,620
Reduction in the value of long-lived assets       --           79
Depreciation, amortization, and accretion         20,332        14,735
Total operating expenses                          37,723        31,668
Loss from operations                              (18,390)      (14,930)
Other income (expense):                                         
Interest income and expense, net of amounts       (7,752)       (3,050)
capitalized
Derivative gain (loss)                            525           (6,520)
Other                                             642           132
Total other expense                               (6,585)       (9,438)
Loss before income taxes                          (24,975)      (24,368)
Income tax expense                                103           157
Net loss                                          $(25,078)    $(24,525)
                                                               
Loss per common share:                                          
Basic                                             $(0.05)      $(0.07)
Diluted                                           (0.05)        (0.07)
                                                               
Weighted-average shares outstanding                             
Basic                                             472,187       357,418
Diluted                                           472,187       357,418


GLOBALSTAR, INC.
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
(Dollars in thousands)
(unaudited)
                                                               
                                                 Three Months Ended March 31,
                                                 2013           2012
                                                               
Net loss                                          $(25,078)    $(24,525)
                                                               
Interest income and expense, net                  7,752         3,050
Derivative (gain) loss                            (525)         6,520
Income tax expense                                103           157
Depreciation, amortization, and accretion         20,332        14,735
EBITDA                                            2,584         (63)
                                                               
Reduction in the value of long-lived assets and   --           328
inventory
Stock compensation                                373           338
Research and development                          160           115
Severance                                         5             43
Foreign exchange and other                        (642)         (132)
Thales arbitration expenses                       --           733
Adjusted EBITDA (1)                               $2,480       $1,362

(1)EBITDA represents earnings before interest, income taxes, depreciation,
amortization, accretion and derivative (gains)/losses. Adjusted EBITDA
excludes non-cash compensation expense, reduction in the value of assets,
foreign exchange (gains)/losses, R&D costs associated with the development of
new consumer products, and certain other significant charges. Management uses
Adjusted EBITDA in order to manage the Company's business and to compare its
results more closely to the results of its peers. EBITDA and Adjusted EBITDA
do not represent and should not be considered as alternatives to GAAP
measurements, such as net income. These terms, as defined by us, may not be
comparable to a similarly titled measures used by other companies.

The Company uses Adjusted EBITDA as a supplemental measurement of its
operating performance because, by eliminating interest, taxes and the non-cash
items of depreciation and amortization, the Company believes it best reflects
changes across time in the Company's performance, including the effects of
pricing, cost control and other operational decisions.The Company's
management uses Adjusted EBITDA for planning purposes, including the
preparation of its annual operating budget.The Company believes that Adjusted
EBITDA also is useful to investors because it is frequently used by securities
analysts, investors and other interested parties in their evaluation of
companies in similar industries. As indicated, Adjusted EBITDA does not
include interest expense on borrowed money or depreciation expense on our
capital assets or the payment of income taxes, which are necessary elements of
the Company's operations.Because Adjusted EBITDA does not account for these
expenses, its utility as a measure of the Company's operating performance has
material limitations.Because of these limitations, the Company's management
does not view Adjusted EBITDA in isolation and also uses other measurements,
such as net income, revenues and operating profit, to measure operating
performance.

GLOBALSTAR, INC.
SCHEDULE OF SELECTED OPERATING METRICS
(Dollars in thousands, except subscriber and ARPU data)
(unaudited)
                                              
                   Three Months Ended March 31,
                   2013                2012
                   Service   Equipment Service   Equipment
Revenue                                        
Duplex              $4,845  $1,109  $4,200  $753
SPOT                7,086    926      5,311    1,027
Simplex             1,815    1,549    1,310    2,030
IGO                 232      297      187      231
Other               1,412    62       1,619    70
                   $15,390 $3,943  $12,627 $4,111
                                              
Average Subscribers                   
Duplex              83,928            91,207   
SPOT                226,094           206,530  
Simplex             189,050           144,177  
IGO                 40,854            42,982   
                                              
ARPU (1)                                       
Duplex              $19.24           $15.35  
SPOT                10.45             8.57     
Simplex             3.20              3.03     
IGO                 1.89              1.45     

(1) Average monthly revenue per user (ARPU) measures service revenues per
month divided by the average number of subscribers during that month. Average
monthly revenue per user as so defined may not be similar to average monthly
revenue per unit as defined by other companies in the Company's industry, is
not a measurement under GAAP and should be considered in addition to, but not
as a substitute for, the information contained in the Company's statement of
income. The Company believes that average monthly revenue per unit provides
useful information concerning the appeal of its rate plans and service
offerings and its performance in attracting and retaining high value
customers.

CONTACT: Investor contact information:
         LHA
         Jody Burfening/Carolyn Capaccio
         (212) 838-3777
         ccapaccio@lhai.com

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