Telesat Corporation (NASDAQ:TSAT) Q2 2022 Earnings Conference Call August 5, 2022 10:30 AM ET
Company Participants
Michael Bolitho - Director of Treasury and Risk Management
Dan Goldberg - President, CEO and Director
Andrew Browne - CFO
Conference Call Participants
Walter Piecyk - LightShed
Mike Pace - JPMorgan
Arun Seshadri - Credit Suisse
Jason Kim - Goldman Sachs
Operator
Good morning, ladies and gentlemen. Welcome to the conference call to report the Second 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, see Telesat's annual and quarterly reports filed with the SEC and SEDAR. 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.
Dan Goldberg
Okay. Thanks, Michael. 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.
As noted in the earnings release, we're off to a good start for the year and as a result, we're able to raise our full year guidance for both revenue and adjusted EBITDA. Our confidence around this comes from securing the partial DISH renewal, reselling the portion of capacity that DISH didn't renew.
The rebound we've seen in traffic for mobility services over the course of the year, and a number of other contributors on both the revenue and expense side of the business. Pricing environment remains largely stable, and we continue to maintain relatively high utilization across the fleet.
On our last earnings call, we noted that we purchased in the open market Telesat unsecured notes with an aggregate face value of USD 60 million and that our board had authorized us to purchase up to an incremental USD100 million face value of Telesat debt which we did in Q2 last quarter. And at our board meeting yesterday we received the authority to purchase up to an additional USD100 million face value in Telesat debt. Suffice to say we think our debt is trading below fair value and that this isn't a creative way for us to use our cash.