Telesat Holdings Inc. Announced Financial Results for the Three Month and One Year Periods Ended December 31, 2009

March 3, 2010

Telesat Holdings Inc. announced its financial results for the three month and one year periods ended December 31, 2009. Unless otherwise stated herein, all amounts are in Canadian dollars.

For the one year period ended December 31, 2009, Telesat reported consolidated revenues of $787 million, an increase of approximately 11% ($76 million) compared to the same period in 2008. Increased revenues were primarily from Telesat's three new satellites (Nimiq 4 launched in late 2008 as well as Telstar 11N and Nimiq 5 launched in 2009) and foreign exchange rate movements, offset by the sale of Telesat's interest in Telstar 10, the removal of Nimiq 3 from service, and lower North American enterprise revenues. In 2009, operating expenses were approximately $37 million (14%) less than 2008, primarily as a result of lower compensation and administrative expenses and reduced revenue related expenses. Adjusted EBITDA for 2009 was $560 million, an increase of 25% ($113 million) and the Adjusted EBITDA margin was 71%, compared to 63% for 2008. Net income was $414 million, compared to a loss of $822 million in 2008. The impact on net income of a non-cash foreign exchange gain related to Telesat's U.S. dollar denominated debt, partially offset by non-cash losses on financial instruments, was $366 million, compared to a loss of $446 million in 2008. No asset impairment losses were recorded in 2009, compared to a $485 million loss in 2008.

For the three month period ended December 31, 2009, Telesat reported consolidated revenues of $195 million, a decrease of approximately 6% ($12 million) compared to the same period in 2008. The year over year decrease was primarily the result of the sale of Telesat's interest in Telstar 10, the removal of Nimiq 3 from service, lower North American enterprise revenues and foreign exchange rate movements, offset by revenues from Telstar 11N and the recently launched Nimiq 5 satellite. Adjusted EBITDA for the fourth quarter was $145 million, an increase of $10 million (8%) compared to the same quarter last year, a result of a $22 million (31%) reduction in expenses primarily related to lower revenue related expenses and certain one time reductions in compensation costs. Telesat reported net income for the three months ended December 31, 2009 of $63 million. The impact on net income of a non-cash foreign exchange gain related to Telesat's U.S. dollar denominated debt, partially offset by non-cash losses on financial instruments, was $37 million.   

"2009 was a record year for Telesat," commented Dan Goldberg, Telesat's President and CEO.  "We achieved the highest levels of revenue and EBITDA in our history, launched and brought into service two new satellites, and meaningfully increased our operating efficiencies and EBITDA margin. With the recent entry into service of Telstar 11N and Nimiq 5, the future launch of the Telstar 14R and Nimiq 6 satellites presently under construction, and our continued operating discipline and focused execution, we believe Telesat remains well positioned for 2010 and beyond."