Telesat Reports 5% Revenue Increase in 2013
Ottawa, Canada, February 24, 2014-- For the year ended December 31, 2013, Telesat reported consolidated revenues of CDN$ 897 million, an increase of approximately 6% (CDN$ 51 million) compared to 2012. When adjusted for foreign exchange rate changes, revenue increased by 5% (CDN$ 43 million) compared to 2012. The increase was mainly due to revenue earned on the Nimiq 6 and Anik G1 satellites which entered into commercial service in June 2012 and May 2013, respectively. The increase was partially offset by a decrease in revenue earned on Nimiq 1 and Nimiq 2.
Operating expenses of CDN$ 201 million were 18% ($45 million) lower than in 2012 or 19% (CDN $47 million) lower when taking into account changes in foreign exchange rates. This reduction was primarily due to compensation expenses incurred in 2012 related to special payments to certain employees of the company in connection with a cash distribution made to the Company’s shareholders, partially offset by an increase in share-based compensation expense in 2013 as a result of additional stock option awards made in the second quarter of 2013. Adjusted EBITDA was CDN$ 711 million, an increase of 9% (CDN$ 56 million) over 2012. The Adjusted EBITDA margin1 for 2013 was 79%, compared to 78% for 2012.
Telesat’s net income for 2013 was $68 million compared to net income of CDN$24 million for 2012. The favorable variation was partly due to a gain on changes in the fair value of financial instruments and a lower loss on financing in 2013 compared to 2012 as losses were recognized in 2012 on the repurchase and redemption of the 11.0% Senior Notes. Telesat’s results were also positively impacted by increased revenue, lower operating expenses and lower interest expense due to refinancing activities. The favorable variation was partially offset by a non-cash loss on foreign exchange, which was principally driven by a stronger U.S. dollar to Canadian dollar spot rate at December 31, 2013, compared to December 31, 2012, and the resulting unfavorable impact on the translation of Telesat’s U.S. dollar denominated debt.
“Telesat achieved record revenues and Adjusted EBITDA in 2013” commented Dan Goldberg, Telesat’s President and CEO. “I am pleased with our strong financial performance, the successful entry into service of our Anik G1 satellite, the procurement of the Telstar 12 VANTAGE satellite and our ability to reduce borrowing costs by re-pricing and amending our credit facilities. Our substantial investment in satellite capacity combined with our industry-leading contractual backlog provides visibility into the stability of our future revenue and cash flow and positions us well for 2014 and beyond,” he added.
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