{"id":450435,"date":"2021-03-04T07:03:47","date_gmt":"2021-03-04T12:03:47","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=450435"},"modified":"2021-03-04T07:03:47","modified_gmt":"2021-03-04T12:03:47","slug":"telesat-reports-results-for-the-quarter-and-year-ended-december-31-2020","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/telesat-reports-results-for-the-quarter-and-year-ended-december-31-2020\/","title":{"rendered":"Telesat Reports Results for the Quarter and Year Ended December 31, 2020"},"content":{"rendered":"
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OTTAWA, March 04, 2021 (GLOBE NEWSWIRE) — Telesat today announced its financial results for the three-month and one-year periods ended December 31, 2020. All amounts are in Canadian dollars and reported under International Financial Reporting Standards (\u201cIFRS\u201d) unless otherwise noted.<\/p>\n

For the year ended December 31, 2020, Telesat reported consolidated revenue of $820 million, a decrease of 10% ($90 million) compared to the same period in 2019. When adjusted for changes in foreign exchange rates, revenue decreased 10% ($87 million) compared to 2019. The revenue decrease was due to lower short-term services provided to other satellite operators, a reduction of service for a broadcast customer, the completion of the non-cash amortization of a significant financing component of an agreement, and the impact of the COVID-19 pandemic, particularly on customers serving the aeronautical and maritime markets. Operating expenses were $181 million, an increase of 9% ($15 million) from 2019. Operating expenses increased because of higher bad debt expense related to customers impacted by the COVID-19 pandemic, higher professional fees related to Telesat\u2019s proposed roll-up transaction, higher in-orbit insurance expense, and higher wages due principally to increased headcount to support the development of the Telesat Lightspeed Low Earth Orbit (LEO) satellite constellation. Foreign exchange rate changes did not have a material impact on operating expenses. Adjusted EBITDA1 <\/sup>was $653 million, a decrease of 14% ($109 million) or, when adjusted for foreign exchange rates, a decrease of 14% ($106 million). The Adjusted EBITDA margin1<\/sup> for 2020 was 79.6%, compared to 83.7% in 2019.<\/p>\n

For the year ended December 31, 2020, net income was $246 million, compared to net income of $187 million for 2019. The increase in net income for the year was principally the result of a 2019 loss on refinancing which did not re-occur in 2020, lower interest expense and a lower non-cash loss on financial instruments, partially offset by lower operating income and lower non-cash foreign exchange gains arising from the translation of Telesat\u2019s U.S. dollar denominated debt into Canadian dollars.<\/p>\n

For the quarter ended December 31, 2020, consolidated revenue was $202 million, a decrease of 8% ($18 million) compared to the same period in 2019. Adjusted for foreign exchange rate changes, revenue declined 7% ($16 million). The decrease was primarily due to the non-re-occurrence in 2020 of short-term services provided to other satellite operators.<\/p>\n

Operating expenses of $47 million for the quarter were 7% ($3 million) lower than the same period in 2019. Adjusted EBITDA1<\/sup> for the quarter was $160 million, a decrease of 8% ($15 million) compared to the same period in 2019. Adjusted for changes in foreign exchange rates, Adjusted EBITDA1<\/sup> declined by 7% ($13 million) compared to the fourth quarter of 2019. The Adjusted EBITDA margin1<\/sup> for the fourth quarter of 2020 was 79.5%, compared to 79.6% in the same period in 2019.<\/p>\n

Telesat\u2019s net income for the quarter was $255 million compared to net income of $3 million for the quarter ended December 31, 2019. The $253 million difference was the result of a non-re-occurring loss on refinancing in 2019, higher non-cash gains on foreign exchange arising principally from the translation of Telesat\u2019s U.S. dollar denominated debt into Canadian dollars in the fourth quarter of 2020, and lower interest expense.<\/p>\n

\u201cOur full year results reflect certain factors that we anticipated, namely the non-renewal in late 2019 of a contract with a North American DTH customer and the end of the revenue amortization period of a contract with another customer, as well as certain factors that we did not anticipate, namely a paucity of opportunities to provide short-term satellite services to other satellite operators and the COVID-19 pandemic,\u201d commented Dan Goldberg, Telesat\u2019s President and CEO.\u00a0\u201cThese anticipated and unanticipated factors account for our reduced revenue and Adjusted EBITDA1<\/sup>. Having said that, we continued to generate strong cash flows and maintained high operating margins and a substantial contractual backlog, which provides high visibility into our future performance.\u201d<\/p>\n

Goldberg added: \u201cI am particularly pleased with the progress we made last year and in the past few weeks on laying the foundations for our future growth, including our recent announcement that we selected Thales Alenia Space to build our revolutionary Lightspeed global broadband LEO satellite constellation and the announcement that the Government of Quebec will be making a significant investment in that important program. Lightspeed will give Telesat and our customers a decisive competitive advantage in serving the enterprise broadband connectivity market, helping to bridge the digital divide around the world and fueling our growth for years to come. I am also pleased with the progress we are making in transforming Telesat into a publicly listed company and in extracting value from our desirable C-band spectrum rights, both of which will help us fund our compelling growth plans. In sum, last year was a productive one for Telesat and we remain focused on maintaining the strong momentum we have as we execute our growth plans going forward.\u201d<\/p>\n

\n Business Highlights<\/strong>\n <\/p>\n

\u2022 At December 31, 2020:<\/p>\n