Telesat
Reports
Results
for
Third
Quarter
and
First
Nine
Months
of
2011
November
4,
2011
Telesat
Holdings
Inc.
announced
its
financial
results
for
the
three
and
nine
month
periods
ended
September
30,
2011.
All
amounts
are
in
Canadian
dollars
and
are
reported
under
International
Financial
Reporting
Standards
(“IFRS”)
unless
otherwise
noted.
For
the
three
month
period
ended
September
30,
2011,
Telesat
reported
consolidated
revenue
of
$200
million,
a
decrease
of
approximately
4%
($9
million)
compared
to
the
same
period
in
2010.
When
adjusted
for
foreign
exchange
rate
changes
over
the
period
revenue
decreased
by
less
than
1%
($1
million)
compared
to
the
same
period
in
2010.
Adjusted
EBITDA1
for
the
third
quarter
of
2011
was
$154
million,
a
decrease
of
3%
($5
million)
compared
to
the
third
quarter
of
2010
and
an
increase
of
1%
($2
million)
when
adjusted
for
foreign
exchange
rate
changes.
The
Adjusted
EBITDA
margin1
for
the
third
quarter
was
77%
compared
to
76%
in
the
2010
period.
Telesat’s
net
loss
for
the
quarter
was
$141
million
compared
to
net
income
of
$146
million
for
the
quarter
ended
September
30,
2010.
The
change
is
mainly
due
to
fluctuations
in
foreign
exchange
rates.
Telesat’s
debt
is
primarily
denominated
in
U.S.
dollars
and,
at
the
end
of
the
third
quarter
of
2011,
the
Canadian
dollar
weakened
against
the
U.S.
dollar,
creating
a
non-cash
foreign
exchange
loss
of
$249
million
as
compared
to a
non-cash
gain
on
foreign
exchange
of
$106
million
at
the
end
of
Q3
2010
when
the
Canadian
dollar
had
strengthened
against
the
U.S.
dollar.
This
was
partly
offset
by a
non-cash
gain
of
$74
million
on
the
fair
value
of
financial
instruments
this
quarter,
as
compared
to a
non-cash
gain
of
$14
million
during
the
same
period
last
year
and
a $6
million
reduction
in
interest
expense
also
due
to
movements
in
foreign
exchange.
For
the
nine
month
period
ended
September
30,
2011,
consolidated
revenue
was
$604
million,
a
decrease
of
approximately
2%
($10
million)
compared
to
the
same
period
in
2010.
When
adjusted
for
foreign
exchange
rate
changes,
revenue
increased
by
1%
($6
million)
compared
to
the
same
period
in
2010.
Adjusted
EBITDA
was
$466
million,
an
increase
of
1%
($4
million)
over
the
same
period
in
2010
and
an
increase
of
4%
($16
million)
when
adjusted
for
foreign
exchange
rate
changes.
The
Adjusted
EBITDA
margin
was
77%
and
net
loss
was
$5
million
for
the
first
nine
months
of
2011,
compared
to
an
Adjusted
EBITDA
margin
of
75%
and
net
income
of
$163
million
in
the
prior
period.
“The
third
quarter
was
another
solid
one
for
Telesat
and
I’m
pleased
with
the
growth
in
our
Adjusted
EBITDA
and
the
expansion
of
our
Adjusted
EBITDA
margin
in
the
first
nine
months
of
the
year,”
commented
Dan
Goldberg,
Telesat’s
President
and
CEO.
“The
ViaSat-1
satellite,
of
which
Telesat
owns
the
Canadian
payload,
was
successfully
launched
last
month.
Our
long
term
agreement
with
Xplornet
to
use
ViaSat-1
will
result
in
incremental
revenue
and
EBITDA
once
the
satellite
enters
commercial
service,
which
we
expect
will
take
place
toward
the
end
of
this
year.
Looking
ahead,
we
are
focused
on
achieving
our
full
year
2011
objectives
and
on
launching
our
Nimiq
6
and
Anik
G1
satellites
next
year.”
