Globalstar, Inc. (NYSE:GSAT) Q1 2023 Earnings Call Transcript May 5, 2023 9:00 AM ET

Company Participants

Jay Monroe - Executive Chairman

Rebecca Clary - Vice President and Chief Financial Officer

David Kagan - Chief Executive Officer

Timothy Taylor - Vice President, Finance, Business Operations and Strategy

Kyle Pickens - Vice President of Strategy and Communications

Conference Call Participants

Mike Crawford - B. Riley Securities

Landon Park - Morgan Stanley

George Sutton - Craig Hallum Capital

Lyman Delano - Beck Mack & Oliver LLC

Operator

Good day, and thank you for standing by. Welcome to the Globalstar First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Jay Monroe.

Jay Monroe

Good morning, everyone. Thanks for joining Globalstar's first quarter 2023 investor call which will consist of a very brief opening update and then we will move directly to Q&A. Please note that today's call contains forward-looking statements intended to fall within the Safe Harbor provided under the securities laws. Factors that could cause the results to differ materially are described in the forward-looking statements and risk factors section of the Globalstar's SEC filings, including its Annual Report on Form 10-K for the financial year ended 2022, its 10-Q filed for the first quarter of 2023 in this week's earnings release.

As outlined in the release, Globalstar had record growth and revenue this quarter, led by an 80% increase in total revenue over the first quarter of 2022. Net loss decreased 83% from the first quarter of 2022, which gets us to a net loss for the quarter of $3.5 million, close to breakeven. Even this modest loss was largely driven by a $10 million nonrecurring noncash charge related to the repayment of our 2019 credit facility. So we have real cause for optimism. Consistent with this, adjusted EBITDA was up a robust 216% versus Q1 of 2022 to $32 million. And we expect growth to continue for the foreseeable future. This quarter reflects the beginning of our next chapter. We've spent years repositioning the platform, both our space and terrestrial assets, to support sustainable growth and significant cash flow generation.

We have endured many years with a capital structure overhang that was removed with the conclusion of our recent financings. As we drive many significant near term opportunities to a close, we have the runway to execute our business plans across our four pillars, wholesale, legacy, IoT and terrestrial spectrum, creating a market disruptor which will maximize the overall value. Today, we can deliver cost effective solutions that few of our competitors can. Furthermore, we plan to launch innovative products this year, like our two way module, that will build on the competitive advantages in our one way IoT market and allow us to support end user applications we couldn't have addressed previously. We have the capacity and the sales funnel for potentially millions of devices utilizing our satellite network.