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Telesat Reports Results for
the Quarter Ended June 30,
2016
July 26,
2016
Telesat Holdings
Inc. announced its
consolidated financial
results for the three and
six month periods ended June
30, 2016. All amounts are in
Canadian dollars and are
reported under International
Financial Reporting
Standards (“IFRS”) unless
otherwise noted.
For the quarter
ended June 30,
2016, Telesat reported
revenues of $232 million, an
increase of approximately 2%
($5 million) compared to the
same period in 2015. During
the quarter, the U.S. dollar
was approximately 4%
stronger than it was during
the second quarter of 2015
and, as a result, there was
a favorable impact on the
conversion of U.S. dollar
denominated revenues. When
adjusted for foreign
exchange rate changes,
revenue was largely
unchanged (an increase of $1
million) compared to the
same period in 2015.
Operating expenses
of $42 million for the
quarter were 5% ($2 million)
lower than the same period
in 2015, and 7% ($3 million)
lower when taking into
account changes in foreign
exchange rates. Adjusted
EBITDA1 for the
quarter was $191 million, an
increase of 3% ($6 million)
compared to the same period
in 2015 and an increase of
2% ($3 million) when
adjusted for foreign
exchange rate changes. The
Adjusted EBITDA margin1 improved
to 82.5% in the second
quarter of 2016 from 81.4%
during the same period in
2015.
For the six month
period ended June 30, 2016,
revenue was $467 million, an
increase of 2% ($11 million)
compared to the same period
in 2015. During the first
half of 2016, the U.S.
dollar was 8% stronger than
it was during the first half
of 2015. When adjusted for
changes in foreign exchange
rates, revenues were
essentially unchanged (a
decrease of $2 million)
compared to the same period
in 2015. Operating expenses
were $89 million, unchanged
from the first half of 2015
or 2% ($2 million) lower
when adjusted for foreign
exchange rate
changes. Adjusted EBITDA1 was
$382 million, an increase of
3% ($11 million) compared to
the same period in 2015 and
unchanged when adjusted for
foreign exchange rate
changes. The Adjusted EBITDA
margin1 for the
first half of 2016 was
81.9%, compared to 81.4% in
the same period in 2015.
Telesat’s net
income for the quarter was
$62 million compared to net
income of $56 million for
the quarter ended June 30,
2015. The $6 million
difference was principally
the result of higher revenue
and lower operating expenses
for the quarter ended June
30, 2016, as compared to the
same period in 2015,
combined with favorable
changes in the fair value of
financial instruments and a
lower tax expense, which
were offset by unfavorable
changes in the gain on
foreign exchange and higher
depreciation expense. For
the six month period ended
June 30, 2016, net income
was $299 million, compared
to a net loss of $98 million
for the same period in 2015.
The increase in net income
for the first half of the
year was principally the
result of a gain on foreign
exchange in the first
quarter of 2016 arising from
the translation
of Telesat’s U.S. dollar
denominated debt into
Canadian dollars.
“I am very pleased
with our second quarter
results,” commented Dan
Goldberg, Telesat’s President
and CEO. “Compared to
the same period last year
and adjusting for foreign
exchange rate changes,
revenue was stable,
operating expenses were 7%
lower, Adjusted EBITDA1 was
2% higher, and our Adjusted
EBITDA margin1 was
slightly higher at
82.5%. Although headwinds
persist in certain markets
we serve, our solid
performance for the quarter
and year to date highlights
the broad strength and
stability of our overall
business, which is
underpinned by our industry
leading contractual backlog
to revenue ratio. Looking
ahead, we remain focused on
the sale of our available
in-orbit capacity, the
construction of Telstar 19
VANTAGE and Telstar 18
VANTAGE, and the further
development of certain other
important growth initiatives.”
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