Telesat Reports Results for the Year Ended December 31, 2011

 

 February 22, 2012

 

Telesat Holdings Inc. announced its financial results for the three month and one year periods ended December 31, 2011. All amounts are in Canadian dollars and are reported under International Financial Reporting Standards (“IFRS”) unless otherwise noted.

 

For the year ended December 31, 2011, consolidated revenue was $808 million, a decrease of approximately 2% ($13 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. Operating expenses of $188 million were 9% ($19 million) lower than in 2010 or 7% ($14 million) lower when taking into account changes in foreign exchange rates, primarily as a result of greater operating efficiencies. Adjusted EBITDA1 was $623 million, an increase of 1% ($4 million) over the same period in 2010 and an increase of 3% ($18 million) when adjusted for foreign exchange rate changes. The Adjusted EBITDA margin1 for 2011 was 77% compared to 75% for 2010. 

 

Telesat’s net income for the year was $237 million compared to a net income of $286 million for the prior year. The $49 million variation in net income was primarily due to a net decrease of $133 million in non cash items such as gains/losses on foreign exchange and changes in fair value of financial instruments. These losses were partially offset by higher operating gains due to the receipt of insurance proceeds in relation to Telstar 14R/Estrela do Sul 2, as well as lower interest and tax expense.

 

For the three month period ended December 31, 2011, Telesat reported consolidated revenue of $205 million, a decrease of approximately 1% ($2 million) compared to the same period in 2010.  When adjusted for foreign exchange rate changes revenue remained unchanged compared to the same period in 2010. Adjusted EBITDA of $157 million for the fourth quarter of 2011 also remained unchanged when compared to the fourth quarter of 2010 but increased by 1% ($1 million) when adjusted for foreign exchange rate changes. The Adjusted EBITDA margin was 77% and net income was $242 million for the fourth quarter of 2011, compared to an Adjusted EBITDA margin of 76% and net income of $124 million for the same period in 2010. 

 

“I am very pleased with our financial and operating performance in 2011,” commented Dan Goldberg, Telesat’s President and CEO. “Notwithstanding the significant contracted rate reduction we experienced mid-year on one of our North American DTH satellites, and taking into account changes in exchange rates, we grew our revenue, reduced our operating expenses, and increased our Adjusted EBITDA and Adjusted EBITDA margin relative to the prior year. We also launched and brought into service two new satellites – Telstar 14R and ViaSat-1 – and made substantial progress on the construction of Nimiq 6 and Anik G1, satellites we expect to launch later this year. In light of the significant investments we are making in our fleet and our industry-leading contractual backlog, we are well positioned to grow our business in 2012 and the years beyond.”