Globalstar Announces Third Quarter 2013 Results

Globalstar Announces Third Quarter 2013 Results

  *Total third quarter 2013 revenue was $22.5 million compared to $20.5
    million in 2012, an increase of 10%; service revenue increased 11% with
    equipment revenue increasing 6%
  *Duplex ARPU increased 29% to $24.50 during third quarter of 2013 compared
    to the third quarter of 2012; Duplex equipment revenue increased over 80%
    during the same comparable periods
  *Simplex and SPOT service revenue increased by 27% and 6%, respectively,
    during the third quarter of 2013 from the third quarter in 2012
  *COFACE senior debt facility agreement successfully amended and all events
    of default cured
  *Second-generation constellation completely in service and Duplex
    capabilities fully restored; minutes of use on the Globalstar network
    increased 23% during the third quarter of 2013 compared to the third
    quarter in 2012
  *On November 1, 2013, the Federal Communications Commission ("FCC") voted
    unanimously to release a Notice of Proposed Rulemaking ("NPRM") for
    Globalstar's provision of low power mobile broadband services over 22 MHz
    of spectrum

COVINGTON, La., Nov. 13, 2013 (GLOBE NEWSWIRE) -- Globalstar, Inc.
(OTCQB:GSAT) today announced its financial results for the three-month period
ended September 30, 2013.

THIRD QUARTER FINANCIAL REVIEW

Jay Monroe, Chairman and CEO of Globalstar, commented, "The third quarter
marked a momentous time for Globalstar as the Company achieved milestones
across our operating, financial and regulatory efforts. In August, we placed
the final satellite from our February launch into service, completing the MSS
industry's first second-generation Low Earth Orbit ("LEO") constellation years
ahead of the competition. This event not only physically restores quality
Duplex service but also symbolizes our perseverance in the face of great
challenges over the past few years. We have experienced both a material
increase in network usage and the acquisition of a growing number of new
subscribers as the combination of restored service and attractive pricing
drives increased demand. The introduction of the SPOT Global Phone helped
total Duplex equipment revenue grow 80%. We are succeeding in expanding MSS
into the nascent consumer market. Major Duplex data points including ARPU,
minutes of use, service revenue, equipment revenue and gross subscriber
additions are rebounding and provide strong evidence of our future financial
performance. The FCC's recent release of proposed new rules permitting
Globalstar to offer mobile broadband services is the culmination of a nearly
year-long effort that, once concluded, should greatly enhance Globalstar's
future profitability while meaningfully increasing the nation's spectrum
available for terrestrial broadband service and reduce acute Wi-Fi congestion.
We look forward to working through the comment cycle in collaboration with all
stakeholders to obtain a favorable FCC order."

Revenue

Revenue was $22.5 million for the third quarter of 2013 compared to $20.5
million for the third quarter of 2012, an increase of 10%, which was due to
increases in both service revenue and subscriber equipment sales.

Service revenue was $17.1 million for the third quarter of 2013 compared to
$15.4 million for the third quarter of 2012, an increase of $1.7 million, or
11%. The primary driver of this increase was growth in Duplex revenue, which
increased $1.2 million, or 25%. The growth in Duplex service revenue was due
primarily to higher usage, an increase in revenue-generating subscribers and
the continued migration of subscribers to higher rate plans that reflect
improved network performance. These factors drove a 29% increase in Duplex
ARPU to $24.50. Third quarter 2013 service revenue growth also reflected SPOT
revenue growth, which increased 6% as revenue-generating subscribers
increased. SPOT ARPU increased 13% to $10.64 due in part to deactivations of
non-revenue generating subscribers beginning in the first quarter of 2013. As
previously announced, the Company initiated a process to deactivate certain
suspended (non-paying) subscribers in its subscriber base beginning in 2013;
approximately 36,000 subscribers were deactivated during the first quarter. If
suspended subscribers were excluded from the 2012 subscriber count, average
subscribers for the third quarter of 2013 would have increased by 8%. Simplex
service revenue increased 27% due to a 24% increase in the average subscriber
base. These increases were offset slightly by a decrease in other service
revenue of $0.5 million due primarily to the timing and amount of service
revenue recognized from engineering contracts in the third quarter of 2013
compared to the third quarter of 2012.

Subscriber equipment revenue was $5.5 million in the third quarter of 2013, an
increase of 6% from the third quarter of 2012. Duplex equipment revenue
increased 80% from the third quarter of 2012 which was driven by the success
of SPOT Global Phone sales. Comparing the third quarter of 2013 to the same
period in 2012, Simplex equipment sales decreased $0.6 million and SPOT
equipment sales decreased $0.1 million. Simplex sales were impacted by the
change in the mix of products sold during the third quarter of 2013 compared
to the third quarter of 2012. SPOT sales were impacted by the delayed
introduction of SPOT Gen 3™.

Net Loss

Net loss increased during the third quarter of 2013 reflecting the substantial
impact of multiple aggregating non-cash items resulting from the Company's
debt transactions and related derivative instruments. The Company reported a
net loss of $205.0 million for the third quarter of 2013 compared to $41.2
million for the third quarter of 2012. Increased net loss was due primarily to
the impact of non-cash derivative losses driven by a significant increase in
the Company's stock price from June 30, 2013 to September 30, 2013. The
increased net loss was due also to the recognition of a non-cash loss on
extinguishment of debt of $63.6 million resulting from transactions executed
in connection with the Amended and Restated Loan Agreement with Thermo, which
was completed in July 2013 as a condition precedent to closing the Amended and
Restated COFACE Facility. Also contributing to the increased net loss was
higher interest expense as the amount of interest being capitalized decreased
and note conversion activity increased, in addition to higher depreciation
expense as the Company placed additional satellites into service.

Adjusted EBITDA

Adjusted EBITDA was $2.5 million for the third quarter of 2013 compared to
$3.1 million in the third quarter of 2012. This decrease was due to an
increase in total operating expenses of $2.6 million (excluding EBITDA
adjustments) offset partially by an increase in revenue of $2.0 million. The
increase in operating expenses was due to strategic investments made for sales
and marketing initiatives, including new product launches and the expansion of
the Company's distribution network, as well as investments in its gateway
infrastructure in anticipation of increased Duplex demand.

FINANCING UPDATE

During the third quarter, Globalstar successfully completed the amendment and
restatement of its COFACE Facility Agreement. The amended agreement provides
for a material improvement to the debt amortization schedule and covenant
levels with a total deferral of $235 million of principal payments through
2019.

OPERATIONAL AND REGULATORY UPDATE

Second-Generation Constellation

  *As previously announced, all satellites launched on February 6, 2013 have
    been placed into service, successfully completing the Company's
    second-generation constellation and fully restoring its Duplex
    capabilities.

Regulatory Reform for Terrestrial Spectrum Authority

  *On November 1, 2013, the FCC voted unanimously to release proposed rules
    that would permit Globalstar to provide low-power terrestrial mobile
    broadband services over 22 MHz of spectrum, including 11.5 MHz of
    Globalstar's licensed S‐band spectrum at 2483.5-2495 MHz, as well as the
    adjacent 10.5 MHz of unlicensed spectrum at 2473‐2483.5 MHz. The comment
    period is 75 days following the publication of the proposal in the Federal
    Register with reply comments due 30 days thereafter.

Mr. Monroe concluded, "With both the refinancings and constellation
restoration now in the rear view mirror, we are fully engaged in leveraging
our restored duplex service capability to re-acquire and retain high-value
subscribers. We can now dedicate 100% of our operational focus to driving
revenue by investing in aggressive customer acquisition and retention
strategies and continuing to develop and launch exciting new products like the
new consumer asset tracking device, SPOT Trace™. And finally, let me reiterate
how pleased we are with the proposed new rules issued by the FCC last week.
These rules are extremely positive for our future plans and hold enormous
potential for both consumers and the Company in the months and years ahead."

CONFERENCE CALL

The Company will conduct an investor conference call today at 5:00 p.m. EST to
discuss third quarter 2013 financial results.


Details are as follows:                                                      
                 5:00 p.m. EST

                 Investors and the media are encouraged to listen to the
                 call through the Investor Relations section of the
                 Company's website at www.globalstar.com/investors.
Conference Call:
                 If you would like to participate in the live question and
                 answer session following the Company's conference call,
                 please dial 1 (800) 446-2782 (US and Canada), 1 (847)
                 413-3235 (International) and use the participant pass code
                 36024771.
                 
                 A replay of the earnings call will be available for a
Audio Replay:    limited time and can be heard after 7:30 p.m. EST on
                 November 13, 2013. Dial: 1 (888) 843-7419 (US and Canada),
                 1 (630) 652-3042 (International) and pass code 3602 4771#.

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 expectations
with respect to actions by the FCC, future increases in our revenue and
profitability 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 are accurate 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 September 30,
                                             2013             2012
Revenue:                                                      
Service revenues                              $17,056        $15,368
Subscriber equipment sales                    5,493           5,169
Total revenue                                 22,549          20,537
Operating expenses:                                           
Cost of services (exclusive of depreciation,
amortization, and accretion shown separately  8,181           7,413
below)
Cost of subscriber equipment sales            4,148           4,040
Cost of subscriber equipment sales -          --             660
reduction in the value of inventory
Marketing, general, and administrative        9,079           7,425
Depreciation, amortization, and accretion     23,715          18,654
Total operating expenses                      45,123          38,192
Loss from operations                          (22,574)        (17,655)
Other expense:                                                
Loss on extinguishment of debt                (63,569)        --
Loss on equity issuance                       (2,733)         --
Interest income and expense, net of amounts   (16,901)        (6,565)
capitalized
Derivative loss                               (97,534)        (16,473)
Other                                         (1,540)         (439)
Total other expense                           (182,277)       (23,477)
Loss before income taxes                      (204,851)       (41,132)
Income tax expense                            118             56
Net loss                                      $(204,969)     $(41,188)
                                                             
Loss per common share:                                        
Basic                                         $(0.30)        $(0.10)
Diluted                                       (0.30)          (0.10)
                                                             
Weighted-average shares outstanding                           
Basic                                         673,546         394,344
Diluted                                       673,546         394,344




GLOBALSTAR, INC.
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
(Dollars in thousands)
(unaudited)
                                                     
                                Three Months Ended September 30,
                                2013                  2012
                                                     
Net loss                         $(204,969)          $(41,188)
                                                     
Interest income and expense, net 16,901               6,565
Derivative loss                  97,534               16,473
Income tax expense               118                  56
Depreciation, amortization, and  23,715               18,654
accretion
EBITDA                           (66,701)             560
                                                     
Reduction in the value of        --                  660
long-lived assets and inventory
Non-cash compensation            1,171                323
Research and development         189                  46
Foreign exchange and other       1,541                421
Thales arbitration expenses      --                  224
Loss on extinguishment of debt   63,569               --
Loss on equity issuance          2,733                --
Write off of deferred financing  --                  833
costs
Adjusted EBITDA (1)              $2,502              $3,067
                                                     
(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/(loss). 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. 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/(loss),
revenues and operating profit, to measure operating performance.




GLOBALSTAR, INC.
SCHEDULE OF SELECTED OPERATING METRICS
(Dollars in thousands, except subscriber and ARPU)
(unaudited)
                                                      
               Three Months Ended September 30,
               2013                        2012
               Service       Equipment     Service       Equipment
Revenue                                                
Duplex          $6,235      $2,124      $4,993      $1,176
SPOT            6,969        1,217        6,552        1,314
Simplex         2,147        1,856        1,690        2,429
IGO             251          189          199          355
Other           1,454        107          1,934        (105)
               $17,056     $5,493      $15,368     $5,169
                                                      
Average                                                
Subscribers
Duplex          84,821                    87,819       
SPOT            218,416                   231,310      
Simplex         215,691                   173,781      
IGO             39,859                    41,576       
                                                      
ARPU (1)                                               
Duplex          $24.50                   $18.95      
SPOT            10.64                     9.44         
Simplex         3.32                      3.24         
IGO             2.10                      1.60         
                                                      
(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:
         Email
         InvestorRelations@Globalstar.com
         Phone
         (985) 335-1538

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