Globalstar Announces 2013 Fourth Quarter and Annual Results

Globalstar Announces 2013 Fourth Quarter and Annual Results

Highlights include significant increases in total revenue; increases in Duplex
metrics such as subscriber additions, service revenue and ARPU; and a
substantial increase in adjusted EBITDA.

COVINGTON, La., March 10, 2014 (GLOBE NEWSWIRE) -- Globalstar, Inc.
(OTCQB:GSAT) today announced its financial results for the three-month and
twelve-month periods ended December 31, 2013.


Jay Monroe, Chairman and CEO of Globalstar, commented, "2013 represents a
truly historic year for Globalstar and, after a multi-year period marked by
numerous difficulties and delays, this year we were able to emerge with a
fully operational second-generation constellation, a materially improved
balance sheet and liquidity position, improved growth profile including
rapidly increasing Adjusted EBITDA and the initiation of an important
regulatory proceeding for our Terrestrial Low Power Service ("TLPS"). I am
proud of the Company's ability to navigate through many issues during 2013 and
to have successfully removed many impediments. The Company is on a renewed
path to prosperity leveraging its unique set of assets and capabilities."


Revenue was $21.0 million for the fourth quarter of 2013 compared to $19.1
million for the fourth quarter of 2012, an increase of 10%, which was due to
increases in both service revenue and subscriber equipment revenue.

Service revenue was $16.8 million for the fourth quarter of 2013 compared to
$15.3 million for the fourth quarter of 2012, an increase of $1.5 million, or
10%. The primary driver of this increase was growth in Duplex revenue, which
increased $1.5 million, or 33%. The growth in Duplex service revenue was due
to improved network performance driving higher minutes of use, a 16% increase
in revenue-generating subscribers, and an almost 90% increase in gross
activations over the fourth quarter of 2012. These factors drove a 35%
increase in Duplex ARPU to $24.97. Fourth quarter 2013 service revenue growth
also reflected, to a lesser extent, both SPOT and Simplex revenue growth,
which increased 2% and 13%, respectively. The increases in Duplex, SPOT and
Simplex service revenue were offset partially by decreases in other service
revenue. Other service revenue decreased to $1.1 million for the fourth
quarter of 2013 compared to $1.7 million for the fourth quarter of 2012, a
decrease of $0.6 million, or 33%. This decrease was due to a decline in
revenue generated from various non-core operations, including a line of
business in certain of our European markets and third party revenue as we
transition wholesale subscribers back to our network.

Subscriber equipment sales revenue was $4.2 million in the fourth quarter of
2013, an increase of 13% from the fourth quarter of 2012. Consistent with
trends the Company has experienced throughout 2013, Duplex equipment sales
revenue increased nearly 70%, or $0.6 million, from the fourth quarter of
2012, which was due to recapturing MSS market share driven by new sales of our
Duplex GSP 1700 satellite phone and the SPOT Global Phone. SPOT equipment
sales revenue also increased 30%, or $0.3 million, due in large part to the
successful introduction of SPOT Gen 3™ at the end of the third quarter 2013
and the SPOT Trace in November 2013. Comparing the fourth quarter of 2013 to
the same period in 2012, Simplex equipment sales revenue decreased $0.5
million due to the change in the mix of products sold during the respective

Net Loss

Net loss increased during the fourth quarter of 2013 reflecting the impact of
substantial non-cash charges resulting from an increase in the value of the
Company's derivative instruments, which was driven primarily from a 61%
increase in the Company's stock price during the fourth quarter of 2013. The
Company reported a net loss of $234.8 million for the fourth quarter of 2013
compared to $19.0 million for the fourth quarter of 2012. The increased net
loss was due also to several other non-cash items, such as higher interest
expense driven by decreases in the amount of interest being capitalized and
note conversion activity, as well as higher depreciation expense as the
Company placed additional satellites into service during 2013.

Adjusted EBITDA

Adjusted EBITDA was $3.9 million for the fourth quarter of 2013 compared to
$2.5 million in the fourth quarter of 2012, an increase of 58%. This increase
was due to a $1.9 million increase in revenue offset by a $0.5 million
increase in total operating expenses (excluding EBITDA adjustments). The
increase in operating expense was due primarily to investments made for sales
and marketing initiatives, including expanding the Company's distribution
network and additional advertising spend associated with new product launches.


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
    non-exclusive use of the adjacent 10.5 MHz of unlicensed spectrum at
    2473‐2483.5 MHz. The comment period ends May 5, 2014 following the
    February 24, 2014 publication of the proposal in the Federal Register with
    reply comments due June 4, 2014.

Product Developments

  *In November 2013, Globalstar introduced SPOT Trace, a consumer-focused
    anti-theft asset tracking device. SPOT Trace helps ensure cars,
    motorcycles, boats, ATVs, snowmobiles and other valuable assets are
    constantly monitored with a notification alert system when improper
    movement is detected.
  *In January 2014, Globalstar announced Sat-Fi, a revolutionary new
    technology that the Company intends to bring to market during the second
    quarter of 2014. Sat-Fi will permit customers to use their existing
    smartphones and other Wi-Fi enabled devices to communicate over
    Globalstar's satellite system.
  *In February 2014, Globalstar announced STX3, a Simplex satellite global
    transmitter featuring the world's lowest power-consuming technology for
    global M2M solutions.


Revenue increased to $82.7 million during 2013 compared to $76.3 million for
2012.Service revenue for 2013 increased 12% to $64.6 million compared to
$57.5 million in 2012 while equipment sales revenue decreased slightly to
$18.1 million from $18.9 million in 2012. Net loss increased to $591.1 million
compared to $112.2 million in 2012 due primarily to non-cash items, including
an increase in the value of the Company's derivative instruments, which was
driven by the more than 400% increase in the Company's stock price during
2013, and other non-cash debt transactions, including the recognition of
non-cash losses on extinguishment of debt resulting from transactions executed
in connection with the refinancing of its 5.75% Notes in May 2013 and the
Amended and Restated Loan Agreement with Thermo in July 2013. Net loss also
increased during 2013 due to other non-cash items, including primarily higher
interest and depreciation expense. Adjusted EBITDA during 2013 increased 21%
to $11.9 million from $9.8 million in 2012. This improvement was due to growth
in service revenue, offset partially by increases in operating costs due
primarily to strategic investments in the Company's sales and marketing
initiatives and in its gateway infrastructure.

Mr. Monroe concluded, "Globalstar is well positioned in the evolving world of
communications with a restored global constellation, new product suite and an
ongoing TLPS regulatory process which will provide the nation with an
incremental 22 MHz of terrestrial spectrum for broadband services. TLPS offers
a controlled, managed terrestrial service with superior throughput and quality
of service characteristics without the limitations of highly compromised
public Wi-Fi channels. We look forward to significant operating growth in our
Duplex, SPOT and Simplex business lines and to clearing the important
milestones of our process before the FCC."


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

Details are as follows:                                                      
Conference Call: 5:00 p.m. EDT
                 Investors and the media are encouraged to listen to the
                call through the Investor Relations section of the
                 Company's website at
                 If you would like to participate in the live question and
                 answer session following the Company's conference call,
                please dial 1 (800) 708-4540 (US and Canada), 1 (847)
                 619-6397 (International) and use the participant pass code
                 A replay of the earnings call will be available for a
Audio Replay:    limited time and can be heard after 7:30 p.m. EDT on March
                 10, 2014. Dial: 1 (888) 843-7419 (US and Canada), 1 (630)
                 652-3042 (International) and pass code 3672 1314#

About Globalstar, Inc.

Globalstar is a leading provider of mobile satellite voice and data services.
Globalstar offers these services to commercial and recreational users in more
than 120 countries around the world. The Company's products include mobile and
fixed satellite telephones, simplex and duplex satellite data modems and
flexible service packages. 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

For more information regarding Globalstar, please visit

CONTACT: Investor contact information:

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