NewSat Announces 30 June 2012 Year End Results
27 August 2012
NewSat Limited Australia's satellite company, is pleased to report the Company's performance for the year ending 30 June 2012.
Financial Highlights
. Revenue from ordinary activities of $37.2 million, up 29% from $28.8 million in FY2011
. Gross Margin of $15.9 million, up 23% from $12.9 million in FY2011
. Positive EBITDA of $3.9 million, up 111% on FY2011
. Net Profit of $2.3 million, up 619% from $0.3 million in FY2011
. Positive operating cash flow of $4.9 million
. Cash and cash equivalents of $3.8 million
Operational Highlights
. 306 new teleport business contracts signed during the period with an average value of over $40,000 per annum
. Major contract wins across oil, gas, mining, maritime, construction and government
sectors, domestically and internationally
. A number of significant contracts with US based system integrators to provide satellite
communications to US government agencies in the Middle East
. A number of high profile infrastructure contracts across Australia, Papua New Guinea
and Timor Leste
. Monthly Recurring Revenue of the teleport business has increased during the period by
24% from $2.5 million per month to $3.1 million per month
. Growing Monthly Recurring Revenue generated through new contracts (incremental to
existing contract base) and high levels of customer retention over the 2012 financial year
. NewSat's teleports were rated Top 3 in the world at the World Teleport Association's
2012 Awards for Excellence, and NewSat was the only Australasian company to
feature
. NewSat Founder and CEO, Adrian Ballintine, was appointed to the Board of Directors
for the World Teleport Association, joining an elite group of international Directors
Jabiru Satellite Program
. Acquired rights to 7 premium orbital slots for development, as announced to the market
in February 2011
. Acquired the rights to an additional orbital slot and expanded frequencies in the existing
7 slots
. Signed a total of US$601 million in binding pre-launch customer contracts for Jabiru
satellite capacity. Customers include MEASAT, Trustcomm, 3A Technologies and
Quicklink Communications
. Commenced construction of Jabiru-1 by signing contract in December 2011 with
Lockheed Martin to build satellite. The Preliminary Design Review phase was completed
in June 2012
. Commenced construction of the satellite launch vehicle by signing agreement in March
2012 with Arianespace and reserving 2014 launch window for Jabiru-1
. Received final approval from Ex-Im Bank for a US$280 million direct loan in July 2012.
The funding commitment is subject to customary closing conditions
. Received a promesse de garantie of US$102.74 million from COFACE, the export credit
agency acting on behalf of the French government, in July 2012. The promesse de garantie
will be used to support a syndicated debt facility. Further funding in the order of US$200
million is well progressed in approximate equal parts of mezzanine debt and equity
. Finalised Jabiru-2 satellite venture with MEASAT in February 2012. Jabiru-2, scheduled
to launch in 2013, will further enhance the profitability and growth of NewSat's core teleport
business
. Continued developmental work on satellites beyond Jabiru-1 and Jabiru-2
Outlook
. NewSat's core teleport business continued its strong growth, with significant increases
in revenue, gross margin, EBITDA and net profit. The outlook for FY2013 looks very
promising, with strong demand for mission critical communications across Australasia,
South Asia and the Middle East expected to continue .
. NewSat's strategic growth project, the Jabiru Satellite Program, continued to achieve key milestones towards the launch of Jabiru-1 in 2014. US$380 million in export credit agency debt funding from Ex-Im Bank and COFACE has been secured and further funding of US$200 million is well progressed. Demand for Jabiru satellite capacity continues to grow, with binding pre-launch customer contracts now at US$601 million and a future sales pipeline of over US$500 million across the Jabiru fleet
In commenting on the 30 June 2012 year end results Adrian Ballintine, NewSat Founder and CEO said: "NewSat's core teleport business recorded another year of significant growth. Our disciplined focus on high value and growth markets, along with increased productivity and cost control, has enabled the Company to build on and improve all key financial metrics. Revenue grew +29% and EBITDA was up +111%, along with significant improvements to gross margin and Monthly Recurring Revenues. NewSat signed 306 new high grade
contracts domestically and internationally, with a large portion of growth generated across
the Middle East. Whilst generating new business, we continue to retain 99% of our existing contract base. Our continued focus on service and quality is well respected within
the industry, including recognition by the World Teleport Association, who ranked NewSat
in the Top 3 independent teleports in the world."
"The Jabiru-1 satellite project continues to achieve key milestones towards launch. To date we have signed over US$600 million in binding pre-launch customer contracts and secured US$380 million in export credit agency debt funding. A further US$200 million in funding is well progressed and is likely to be half subordinated mezzanine debt, half equity. Lockheed Martin, is more than six months into the satellite build and recently achieved a significant construction milestone with the completion of the Preliminary Design Review. The Jabiru-1 satellite project is on track for launch in 2014."
"The NewSat business is in a strong position. We have a profitable and award winning core teleport business which generates growing Monthly Recurring Revenues and kick-started the 2013 financial year with the largest ever single contract for the Wheatstone Project. Demand for satellite communications continues its resilient global growth. Our enterprise and government customers are increasingly demanding faster speeds, higher quality and secure communications to support their mission critical business activities. NewSat's first satellite, Jabiru-1, is expected to generate more than US$3 billion over the 15 year life of the satellite at 70% utilisation, creating a step change in earnings and EBITDA margins."
