Telesat Corporation (NASDAQ:TSAT) Q3 2022 Earnings Conference Call November 8, 2022 10:30 AM ET

Company Participants

Michael Bolitho - Director of Treasury and Risk Management

Daniel Goldberg - President, CEO and Director

Conference Call Participants

Brandon Karsch - Kennedy Lewis

Andrew Browne - CFO

Operator

Good morning, ladies and gentlemen. Welcome to the conference call to report the third quarter 2022 financial results for Telesat. Our speakers today will be Dan Goldberg, President and Chief Executive Officer of Telesat; and Andrew Browne, Chief Financial Officer of Telesat. I would now like to turn the meeting over to Mr. Michael Bolitho, Director of Treasury and Risk Management. Please go ahead, Mr. Bolitho.

Michael Bolitho

Thank you, and good morning. This morning, we filed our quarterly report on Form 6-K with the SEC and on SEDAR. Our remarks today may contain forward-looking statements. There are risks that Telesat's actual results may differ materially from the results contemplated by the forward-looking statements as a result of known and unknown risks and uncertainties. For a discussion of known risks, seek Telesat's annual and quarterly reports filed with the SEC, Telesat assumes no responsibility to update or revise these forward-looking statements. I will now turn the call over to Dan Goldberg, Telesat's President and Chief Executive Officer.

Daniel Goldberg

Okay. Thanks, Michael. Good morning, everyone. This morning, I'll share some thoughts on our results and give an update on the business. I'll then hand over to Andrew, who will speak to the numbers in detail, and then we'll open the call up to questions. Q3 came in very much in line with our expectations, and we continue to expect to exceed the revenue and adjusted EBITDA guidance we gave at the outset of the year. The overall operating environment feels pretty stable from a demand and pricing perspective, and I was pleased to see our capacity utilization tick up slightly in the quarter.

We disclosed last quarter that we have an anomaly on our anik f2 satellite that reduces its station-kept lifetime from 2025 and to more like the end of this year. We noted that anik f2 represents approximately 8% of our total revenue and that absent finding ways to provide continuity of service for our customers using the satellite, we anticipated revenue could be reduced by roughly one third versus what we previously expected it to be for next year 2023.

We noted also that we are working closely with our customers to evaluate and implement measures to offer them continuity of service and mitigate the adverse revenue impact on the company. I'm pleased to say that our team, working hand in glove with our customers has developed a range of plans to continue to support the services now provided on anik f2.