Telesat Reports Increase Revenues for the First Quarter

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[Satellite TODAY 05-02-13] Telesat Holdings has reported consolidated revenues of CA$219 million for the first quarter of 2013, an increase of approximately 12 percent or CA$23 million compared to the same period last year. The company attributes the results to the successful deployment of the Nimiq 6 satellite in the second quarter of 2012 and higher equipment sales.

Operating expenses of CA$50 million were 40 percent (CA$33 million) lower than for the same period in 2012 related primarily, according to Telesat, to special compensation payments to executives and certain employees in connection with the cash distributions made to the company’s shareholders in 2012. Adjusted EBITDA was CA$170 million, an increase of 12 percent (CA$18 million) over the same period in 2012. The Adjusted EBITDA margin for the first quarter of 2013 was 78 percent, which is unchanged from the same period last year.

Telesat’s net loss for the quarter was $97 million compared to net income of $98 million for the first quarter 2012.

“I am very pleased with our strong performance in the first quarter of 2013,” commented Dan Goldberg, Telesat’s president and CEO. “Compared to the same period in 2012, we experienced meaningful growth in revenue and Adjusted EBITDA as a result of continued investments in our satellite fleet and discipline on the cost side of our business. With respect to investments in our fleet, we recently successfully launched our Anik G1 satellite, which has considerable expansion capacity, a significant portion of which is already contracted for the life of the satellite. We also recently re-priced certain of our term loan facilities and redeemed our 12.5 percent Notes, steps that will reduce our borrowing costs and support improvement in our cash flows. In light of the strong growth we experienced in the quarter, the anticipated near term entry into commercial service of Anik G1, and our industry-leading contractual backlog, we are well positioned to continue to grow our business this year and beyond.”