MCLEAN, Va., Feb. 28, 2019 /PRNewswire/ -- Iridium
Communications Inc. (Nasdaq: IRDM) ("Iridium") today reported
financial results for the fourth quarter of 2018 and issued its
full-year 2019 guidance. Net loss was $7.6 million, or $0.09 per diluted share, for the fourth quarter
of 2018, as compared to net income of $141.9
million, or $1.10 per diluted
share, for the fourth quarter of 2017. This decrease in net
income was primarily the result of a reduced income tax benefit
compared to the year-ago period and an increase in net interest
expense. Operational EBITDA ("OEBITDA")(1) for the
fourth quarter was $75.5 million, as
compared to $63.7 million for the
prior-year period, representing a year-over-year increase of 19%
and an OEBITDA margin(1) of 57%. OEBITDA primarily
benefitted from the recognition of revenue from hosted payload and
other data services, telephony pricing action and growth in the
Company's Internet of Things ("IoT") data business.
Iridium reported fourth-quarter total revenue of $132.2 million, which consisted of $107.3 million of service revenue and
$24.9 million of revenue related to
equipment sales and engineering and support projects. Total
revenue increased 14% versus the comparable period of 2017, while
service revenue grew 17% from the year-ago period. Service
revenue, which represents primarily recurring revenue from
Iridium's growing subscriber base, was 81% of total revenue for the
fourth quarter of 2018.
The Company ended the quarter with 1,121,000 total billable
subscribers, which compares to 969,000 for the year-ago period and
is up from 1,092,000 for the quarter ended September 30, 2018. Total billable
subscribers grew 16% year-over-year, driven by growth in commercial
IoT.
Full-Year 2018 Iridium Business Highlights
For the full year, Iridium reported net loss of $13.4 million, or $0.22 per diluted share attributable to common
stockholders, as compared to net income of $233.9 million, or $1.82 per diluted share attributable to common
stockholders for 2017. This decrease in net income was
primarily the result of a reduced income tax benefit compared to
the prior year and a $95.9 million
increase in depreciation and amortization expense. The
Company reported 2018 total revenue of $523.0 million, which was up 17% from the
year-ago period. Total revenue included $406.8 million of service revenue and
$116.2 million of revenue related to
equipment sales and engineering and support projects. OEBITDA
for 2018 was $302.0 million, a 14%
increase from $265.6 million in the
prior year, representing an OEBITDA margin of 58%. Capital
expenditures were $391.3 million for
the full-year 2018.
"2018 was an outstanding year for Iridium. Our company
delivered service revenue growth of 17% and equally impressive
subscriber growth of 16% to end the year with more than 1.1 million
active users. Our core business has never been stronger, and
momentum in commercial IoT continues to fuel innovation and new
applications, which are driving new commercial partnerships and
subscriber growth. We achieved our highest revenue growth as
a public company and our best OEBITDA growth in seven years," said
Matt Desch, CEO, Iridium.
Desch continued, "With the completion of the Iridium® NEXT
upgrade of our constellation, our financial transformation is well
underway. Having now completed an intense period of capital
investment, we are turning our attention to a new growth phase for
the company that should deliver new sources of revenue and OEBITDA
growth, supporting significant free cash flow that can benefit
shareholders."
Commenting on Iridium CertusSM, Desch said, "Feedback
on our new broadband service, Iridium Certus, which launched in
January, has been overwhelmingly positive. This broadband
service sets a new benchmark in L-band connectivity for performance
and reliability and has already attracted new service providers to
invest and build innovative applications for this global
platform."
Desch concluded, "We are proud to have completed our
constellation upgrade. The expanded capabilities of these
satellites bolster our market leadership position and extend our
offering of new, more powerful satellite solutions to customers
that depend on real-time, mission critical connectivity and remote
information."
Fourth-Quarter Iridium Business Highlights
Service – Commercial
Commercial service remained the largest part of Iridium's
business, representing 65% of the Company's total revenue during
the fourth quarter. The Company's commercial customer base is
diverse and includes markets such as maritime, aviation, oil and
gas, mining, recreation, forestry, construction, transportation and
emergency services. These customers rely on Iridium's
products and services as critical to their daily operations and
integral to their communications and business infrastructure.
- Commercial service revenue was $85.3
million, up 23% from last year's comparable period due to
revenue from hosted payload and other data services, telephony
pricing action and increased IoT revenues.
- Commercial voice and data subscribers rose from the year-ago
period to 361,000 customers. Commercial voice and data
average revenue per user ("ARPU") was $45 during the fourth quarter, compared to
$42 in last year's comparable period,
as a result of the rollout of new pricing plans in 2018.
Commercial IoT data subscribers grew 27% from the year-ago
period to 647,000 customers, driven by continued strength in
consumer personal communications and tracking devices.
Commercial IoT data ARPU was $12 in
the fourth quarter, compared to $13
in last year's comparable period.
- Iridium's commercial business ended the quarter with 1,008,000
billable subscribers, which compares to 869,000 for the prior-year
quarter and is up from 979,000 for the quarter ended September 30, 2018. IoT data subscribers
represented 64% of billable commercial subscribers at the end of
the quarter, an increase from 59% at the end of the prior-year
period.
- Hosted payload and other data service revenue increased by
$9.7 million, or 212%, from the prior
year primarily due to increased hosting and data services and an
increase in satellite time and location service.
Service – U.S. Government
Iridium's voice and data solutions improve situational awareness
for military personnel and track critical assets in tough
environments around the globe, providing a unique value proposition
that is not easily duplicated. The Company operates
through two contracts previously managed by Defense
Information Systems Agency ("DISA") and now managed by Air Force
Space Command, which include a $400
million, five-year, fixed-price Enhanced Mobile Satellite
Services ("EMSS") agreement for satellite communications services
and a $38 million multi-year Gateway
Maintenance and Support Services ("GMSS") contract to support and
maintain the Department of Defense's ("DoD") dedicated gateway.
The EMSS contract has been extended for an additional six
months to April 2019, at the rate
that was in effect during 2018. The Company has begun
discussions with the U.S. government on a new EMSS contract, which
it expects to enter into in 2019 prior to the expiration of the
extended agreement.
- Government service revenue was $22.0
million, consistent with the prior-year period, as the final
step up in the fixed fee under the Company's EMSS contract with the
U.S. government occurred in October
2015.
- Iridium's U.S. government business ended the quarter with
113,000 subscribers, which compares to 100,000 for the prior-year
quarter and is unchanged from 113,000 for the quarter ended
September 30, 2018. Government voice
and data subscribers increased 4% from the year-ago period to
54,000 as of December 31, 2018. IoT
data subscribers increased 23% year-over-year and represented 52%
of government subscribers at year-end.
Equipment
- Equipment revenue was $20.1
million during the fourth quarter, up 4% from the prior-year
period.
- The Company forecasts lower equipment sales in 2019 as a result
of a more normalized level of handset sales.
Engineering & Support
- Engineering and support revenue was $4.8
million during the fourth quarter, up 3% from the prior-year
quarter, primarily due to the episodic nature of
government-sponsored projects.
Capital expenditures were $96.5
million for the fourth quarter and primarily related to
spending for the Company's next-generation satellite constellation,
Iridium NEXT. The Company ended the fourth quarter with
credit facility gross debt of $1.7
billion and a cash and cash equivalents balance of
$273.4 million. Net debt was
$1.6 billion, calculated as
$1.7 billion of credit facility gross
debt and $360.0 million of gross
unsecured notes, less $273.4 million
of cash and cash equivalents, and $191.9
million in restricted cash.
In December 2018, Aireon LLC,
Iridium's primary hosted payload customer, entered into a credit
facility that enabled a $35.0 million
hosting fee payment to Iridium. This is in addition to the
$8.1 million payment that was made
earlier in the year. Excluding accrued interest, Aireon's
remaining hosting fee account payable to Iridium was $156.9 million at December
31, 2018.
Iridium's net leverage was 5.2 times OEBITDA at December 31, 2018. The company expects net
leverage to improve to approximately 4.5 times OEBITDA at year-end
2019, assuming no change in the Company's capital structure, after
having reached a peak net leverage ratio of 5.6 times OEBITDA in
the first quarter of 2018.
In 2018, Iridium completed its analysis of the effect of the Tax
Cuts and Jobs Act of 2017. As a result of this analysis and
other developments, the Company now expects it will have negligible
cash taxes through approximately 2023. Thereafter, the
Company's cash tax liability is expected to gradually increase
until Iridium reaches the statutory tax level. The Company's
previous outlook was for negligible cash taxes through
approximately 2020.
2019 Outlook
The Company issued its full-year 2019 outlook for total service
revenue, OEBITDA and net leverage and currently expects:
- Total service revenue of approximately $440 million for the full-year 2019.
- Full-year 2019 OEBITDA between $325
million and $335 million.
OEBITDA for 2018 was $302.0
million.
- Net leverage of approximately 4.5x OEBITDA at the end of
2019.
Non-GAAP Financial Measures & Definitions
In addition to disclosing financial results that are determined
in accordance with U.S. GAAP, the Company provides Operational
EBITDA and Operational EBITDA margin, which are non-GAAP financial
measures, as supplemental measures to help investors evaluate the
Company's fundamental operational performance. Operational
EBITDA represents earnings before interest, income taxes,
depreciation and amortization, Iridium NEXT revenue and expenses
(for periods prior to the deployment of Iridium NEXT only), loss
from investment in Aireon, share-based compensation expenses, the
impact of purchase accounting, and non-cash gain from the Boeing
transaction. Iridium NEXT revenue and expenses were excluded
from Operational EBITDA through 2017. Beginning in 2018,
Iridium NEXT revenues and recurring Iridium NEXT expenses
(recurring Iridium NEXT expenses are not part of the approximately
$3 billion construction cost of
Iridium NEXT (the "Construction Costs")) were no longer excluded in
calculating Operational EBITDA. U.S. GAAP requires that
certain of the Construction Costs be expensed. These certain
Construction Costs, which beginning in 2018 principally consisted
of in-orbit insurance, will continue to be excluded from the
calculation of Operational EBITDA through the first quarter of
2020. The Company also presents Operational EBITDA expressed
as a percentage of GAAP revenue, or Operational EBITDA
margin. Operational EBITDA, along with its related measure,
Operational EBITDA margin, does not represent, and should not be
considered, an alternative to U.S. GAAP measurements such as net
income or loss, and the Company's calculations thereof may not be
comparable to similarly titled measures reported by other
companies. By eliminating interest, income taxes,
depreciation and amortization, Iridium NEXT revenue and expenses
(for periods prior to the deployment of Iridium NEXT only), loss
from investment in Aireon, share-based compensation expenses, the
impact of purchase accounting, and non-cash gain from the Boeing
transaction, the Company believes the result is a useful measure
across time in evaluating its fundamental core operating
performance. Management also uses Operational EBITDA to
manage the business, including in preparing its annual operating
budget, debt covenant compliance, financial projections and
compensation plans. The Company believes that Operational
EBITDA is also useful to investors because similar measures are
frequently used by securities analysts, investors and other
interested parties in their evaluation of companies in similar
industries. However, there is no standardized measurement of
Operational EBITDA, and Operational EBITDA as the Company presents
it may not be comparable with similarly titled non-GAAP financial
measures used by other companies. As indicated, Operational
EBITDA does not include interest expense on borrowed money, the
payment of income taxes, amortization of the Company's
definite-lived intangible assets, or depreciation expense on the
Company's capital assets, which are necessary elements of the
Company's operations. It also excludes expenses in connection
with the development, deployment and financing of Iridium NEXT and
the loss from investment in Aireon. Since Operational EBITDA
does not account for these and other expenses, its utility as a
measure of the Company's operating performance has material
limitations. Due to these limitations, the Company's
management does not view Operational EBITDA in isolation, but also
uses other measurements, such as net income, revenues and operating
profit, to measure operating performance. Please refer to the
schedule below for a reconciliation of consolidated GAAP net income
to Operational EBITDA and Iridium's Investor Relations webpage at
www.iridium.com for a discussion and reconciliation of this
and other non-GAAP financial measures. We do not provide a
forward-looking reconciliation of expected full-year 2019
Operational EBITDA guidance as the amount and significance of
special items required to develop meaningful comparable GAAP
financial measures cannot be estimated at this time without
unreasonable efforts.
|
Iridium
Communications Inc.
|
|
Supplemental
Reconciliation of GAAP Net Income (Loss) to Operational
EBITDA
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
GAAP net income
(loss)
|
$
(7,582)
|
|
$
141,877
|
|
$
(13,384)
|
|
$
233,856
|
Interest (income)
expense, net
|
25,146
|
|
(1,417)
|
|
62,441
|
|
(4,328)
|
Income tax
benefit
|
(17,290)
|
|
(154,479)
|
|
(7,265)
|
|
(114,284)
|
Depreciation and
amortization
|
67,111
|
|
65,615
|
|
218,207
|
|
122,266
|
Iridium NEXT
expenses, net
|
4,417
|
|
7,965
|
|
27,606
|
|
23,316
|
Share-based
compensation
|
3,665
|
|
4,119
|
|
14,408
|
|
15,806
|
Non-cash gain on
Boeing transaction
|
-
|
|
-
|
|
-
|
|
(11,003)
|
Operational
EBITDA
|
$
75,467
|
|
$
63,680
|
|
$
302,013
|
|
$
265,629
|
Conference Call Information
As previously announced, the Company will host a conference call
to discuss its results at 8:30 a.m. Eastern
Time on Thursday, February 28, 2019. Callers should
dial 1-412-902-6740 to access the call. The conference call
will also be simultaneously webcast on Iridium's Investor Relations
webpage at www.iridium.com. An archive of the webcast will be
available following the live conference call.
About Iridium Communications Inc.
Iridium® is the only mobile voice and data satellite
communications network that spans the entire globe. Iridium
enables connections between people, organizations and assets to and
from anywhere, in real time. Together with its ecosystem of
partner companies, Iridium delivers an innovative and rich
portfolio of reliable solutions for markets that require truly
global communications. The company recently completed its
next-generation satellite network replacement campaign.
Iridium Communications Inc. is headquartered in McLean, Va., U.S.A., and its common stock
trades on the Nasdaq Global Select Market under the ticker symbol
IRDM. For more information about Iridium products, services
and partner solutions, visit www.iridium.com.
Forward-Looking Statements
Statements in this press release that are not purely
historical facts may constitute forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements regarding Iridium's
expectations with respect to total service revenue growth, OEBITDA
and leverage for 2019; cash taxes over the
longer-term; anticipated equipment revenue, and prospects
for new sources of revenue, OEBITDA growth, generation of free cash
flow and benefits to shareholders. Forward-looking
statements can be identified by the words "anticipates," "may,"
"can," "believes," "expects," "projects," "intends," "likely,"
"will," "to be" and other expressions that are predictions or
indicate future events, trends or prospects. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or
achievements of Iridium to differ materially from any future
results, performance or achievements expressed or implied by such
forward-looking statements. These risks and uncertainties include,
but are not limited to, uncertainties regarding customer demand for
Iridium's products and services, including demand from the U.S.
government; Iridium's ability to maintain the health, capacity and
content of its satellite constellation, and the development of and
market for Iridium's products and services, as well as general
industry and economic conditions, and competitive, legal,
governmental and technological factors. Other factors that could
cause actual results to differ materially from those indicated by
the forward-looking statements include those factors listed under
the caption "Risk Factors" in the Company's Form 10-K for the year
ended December 31, 2018, filed with
the Securities and Exchange Commission ("SEC") on February 28, 2019, as well as other filings
Iridium makes with the SEC from time to time. There is no
assurance that Iridium's expectations will be realized. If one or
more of these risks or uncertainties materialize, or if Iridium's
underlying assumptions prove incorrect, actual results may vary
materially from those expected, estimated or projected. Iridium's
forward-looking statements are based on information available to it
as of the date of this press release and speak only as of the date
of this press release, and Iridium undertakes no obligation to
update forward-looking statements.
Investor
Contact:
|
Press
Contact:
|
|
|
Kenneth
Levy
|
Jordan
Hassin
|
Iridium
Communications Inc.
|
Iridium
Communications Inc.
|
+1 (703)
287-7570
|
+1 (703)
287-7421
|
ken.levy@iridium.com
|
jordan.hassin@iridium.com
|
Iridium
Communications Inc.
|
|
|
|
Condensed
Consolidated Statements of Operations
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
2018
|
|
2017
|
Revenue:
|
|
|
|
Service
revenue
|
|
|
|
Commercial
|
$
85,308
|
|
$
69,437
|
Government
|
22,000
|
|
22,000
|
Total service
revenue
|
107,308
|
|
91,437
|
Subscriber
equipment
|
20,071
|
|
19,377
|
Engineering and
support service
|
4,786
|
|
4,655
|
Total
revenue
|
132,165
|
|
115,469
|
|
|
|
|
Operating
expenses:
|
|
|
|
Cost of services
(exclusive of depreciation and amortization)
|
22,194
|
|
21,187
|
Cost of subscriber
equipment sales
|
11,950
|
|
11,287
|
Research and
development
|
7,222
|
|
5,025
|
Selling, general and
administrative
|
23,830
|
|
26,306
|
Depreciation and
amortization
|
67,111
|
|
65,614
|
Total operating
expenses
|
132,307
|
|
129,419
|
Operating
income
|
(142)
|
|
(13,950)
|
|
|
|
|
Other income
(expense), net:
|
|
|
|
Interest income
(expense), net
|
(25,146)
|
|
1,417
|
Other income
(expense), net
|
416
|
|
(69)
|
Total other income
(expense), net
|
(24,730)
|
|
1,348
|
|
|
|
|
Loss before income
taxes
|
(24,872)
|
|
(12,602)
|
Income tax
benefit
|
17,290
|
|
154,479
|
Net income
(loss)
|
(7,582)
|
|
141,877
|
Series A preferred
stock dividends, undeclared
|
-
|
|
1,750
|
Series B preferred
stock dividends, undeclared
|
2,097
|
|
2,109
|
Net income (loss)
attributable to common stockholders
|
$
(9,679)
|
|
$
138,018
|
|
|
|
|
Operational
EBITDA
|
$
75,467
|
|
$
63,680
|
Iridium
Communications Inc.
|
|
|
|
Condensed
Consolidated Statements of Operations
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
Year Ended December
31,
|
|
2018
|
|
2017
|
Revenue:
|
|
|
|
Service
revenue
|
|
|
|
Commercial
|
$
318,757
|
|
$
261,735
|
Government
|
88,000
|
|
88,000
|
Total service
revenue
|
406,757
|
|
349,735
|
Subscriber
equipment
|
97,848
|
|
77,119
|
Engineering and
support service
|
18,403
|
|
21,192
|
Total
revenue
|
523,008
|
|
448,046
|
|
|
|
|
Operating
expenses:
|
|
|
|
Cost of services
(exclusive of depreciation and amortization)
|
86,016
|
|
80,396
|
Cost of subscriber
equipment sales
|
56,857
|
|
44,445
|
Research and
development
|
22,429
|
|
15,247
|
Selling, general and
administrative
|
97,846
|
|
84,405
|
Depreciation and
amortization
|
218,207
|
|
122,266
|
Total operating
expenses
|
481,355
|
|
346,759
|
|
|
|
|
Gain on Boeing
transaction
|
-
|
|
14,189
|
|
|
|
|
Operating
income
|
41,653
|
|
115,476
|
|
|
|
|
Other income
(expense), net:
|
|
|
|
Interest income
(expense), net
|
(62,441)
|
|
4,328
|
Other income
(expense), net
|
139
|
|
(232)
|
Total other income
(expense), net
|
(62,302)
|
|
4,096
|
|
|
|
|
Income (loss) before
income taxes
|
(20,649)
|
|
119,572
|
Income tax
benefit
|
7,265
|
|
114,284
|
Net income
(loss)
|
(13,384)
|
|
233,856
|
Series A preferred
stock dividends, declared and paid excluding cumulative
dividends
|
1,750
|
|
1,750
|
Series B preferred
stock dividends, declared and paid excluding cumulative
dividends
|
2,109
|
|
2,109
|
Series A preferred
stock dividends, undeclared
|
-
|
|
5,250
|
Series B preferred
stock dividends, undeclared
|
6,290
|
|
6,327
|
Net income (loss)
attributable to common stockholders
|
$
(23,533)
|
|
$
218,420
|
|
|
|
|
Operational
EBITDA
|
$
302,013
|
|
$
265,629
|
Iridium
Communications Inc.
|
|
|
|
|
|
|
|
|
|
|
|
Summary Revenue and
OEBITDA Highlights
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
Year Ended December
31,
|
|
|
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue(1)
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
Voice and data and
IoT data service
|
|
|
|
|
|
|
|
|
|
|
|
Voice and
data
|
$
49,267
|
|
$
45,354
|
|
9%
|
|
$
193,176
|
|
$
177,685
|
|
9%
|
IoT
data(2)
|
21,804
|
|
19,525
|
|
12%
|
|
85,054
|
|
74,142
|
|
15%
|
Hosted payload and
other data service (3)
|
14,237
|
|
4,558
|
|
212%
|
|
40,527
|
|
9,908
|
|
309%
|
Total commercial data
service
|
85,308
|
|
69,437
|
|
23%
|
|
318,757
|
|
261,735
|
|
22%
|
|
|
|
|
|
|
|
|
|
|
|
|
Government service
revenue(4)
|
22,000
|
|
22,000
|
|
0%
|
|
88,000
|
|
88,000
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total service
revenue
|
107,308
|
|
91,437
|
|
17%
|
|
406,757
|
|
349,735
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscriber
equipment
|
20,071
|
|
19,377
|
|
4%
|
|
97,848
|
|
77,119
|
|
27%
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering and
support(5)
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
174
|
|
1,119
|
|
-84%
|
|
716
|
|
3,109
|
|
-77%
|
Government
|
4,612
|
|
3,536
|
|
30%
|
|
17,687
|
|
18,083
|
|
-2%
|
Total engineering and
support
|
4,786
|
|
4,655
|
|
3%
|
|
18,403
|
|
21,192
|
|
-13%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
132,165
|
|
$
115,469
|
|
14%
|
|
$
523,008
|
|
$
448,046
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operational
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Operational
EBITDA
|
$
75,467
|
|
$
63,680
|
|
19%
|
|
$
302,013
|
|
$
265,629
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
(6)
|
$
96,533
|
|
$
109,395
|
|
|
|
$
391,262
|
|
$
400,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt
(7)
|
$
1,579,582
|
|
$
1,455,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents, and marketable securities
|
$
273,352
|
|
$
297,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
facility
|
$
1,684,869
|
|
$
1,800,000
|
|
|
|
|
|
|
|
|
Deferred financing
costs
|
(80,130)
|
|
(96,445)
|
|
|
|
|
|
|
|
|
Credit facility,
net
|
$
1,604,739
|
|
$
1,703,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Service revenue
consists of primarily subscription-based services which often
generate a long-term recurring revenue stream from
subscribers.
|
|
|
(2)
|
IoT data service
provides a two-way short burst data transmission between Iridium
Communications Inc.'s network and a telemetry unit, which may be
located, for example, on a container in transit or a buoy
monitoring oceanographic conditions.
|
|
|
(3)
|
Hosted payload and
other services consist primarily of services that do not have
traditional billable subscribers. Hosted payload services consist
of hosting and data services to our payload customers, Aireon and
Harris. Other services include primarily Iridium Communications
Inc.'s one-way satellite timing, location, and authentication
services (STL) which provides position, navigation and timing
technology.
|
|
|
(4)
|
Government service
revenue consists of voice and IoT data subscription-based services
provided to agencies of the U.S. government through prime contracts
or subcontracts.
|
|
|
(5)
|
Engineering and
support includes maintenance services to the U.S. government's
dedicated gateway in Hawaii and engineering services to assist
customers in developing new technologies for use on Iridium
Communications Inc.'s satellite system.
|
|
|
(6)
|
Capital expenditures
based on cash spent in the respective period.
|
|
|
(7)
|
Net debt is
calculated by taking the sum of the gross credit facility and gross
high yield notes, less cash and cash equivalents, marketable
securities, and the debt service reserve for the credit
facility.
|
Iridium
Communications Inc.
|
|
|
|
|
|
|
|
|
|
|
|
Subscriber
Highlights
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except
ARPU)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December
31,
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
% Change
|
|
|
|
|
|
|
Billable
Subscribers (1) (2)
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
Voice and data and
IoT data service
|
|
|
|
|
|
|
|
|
|
|
|
Voice and
data
|
361
|
|
359
|
|
1%
|
|
|
|
|
|
|
IoT data
|
647
|
|
510
|
|
27%
|
|
|
|
|
|
|
Total commercial
voice and data and IoT data service
|
1,008
|
|
869
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government
|
|
|
|
|
|
|
|
|
|
|
|
Voice and data and
IoT data service
|
|
|
|
|
|
|
|
|
|
|
|
Voice and
data
|
54
|
|
52
|
|
4%
|
|
|
|
|
|
|
IoT data
|
59
|
|
48
|
|
23%
|
|
|
|
|
|
|
Total government
voice and data and IoT data service
|
113
|
|
100
|
|
13%
|
|
|
|
|
|
|
Total billable
subscribers
|
1,121
|
|
969
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
Year Ended December
31,
|
|
|
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
Net Billable
Subscriber Additions From Prior Quarter
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
Voice and data and
IoT data service
|
|
|
|
|
|
|
|
|
|
|
|
Voice and
data
|
(6)
|
|
(9)
|
|
33%
|
|
2
|
|
6
|
|
-67%
|
IoT data
|
35
|
|
24
|
|
46%
|
|
137
|
|
97
|
|
41%
|
Total commercial
voice and data and IoT data service
|
29
|
|
15
|
|
93%
|
|
139
|
|
103
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
Government
|
|
|
|
|
|
|
|
|
|
|
|
Voice and data and
IoT data service
|
|
|
|
|
|
|
|
|
|
|
|
Voice and
data
|
(2)
|
|
3
|
|
-167%
|
|
2
|
|
8
|
|
-75%
|
IoT data
|
2
|
|
2
|
|
0%
|
|
11
|
|
8
|
|
38%
|
Total government
voice and data and IoT data service
|
-
|
|
5
|
|
-100%
|
|
13
|
|
16
|
|
-19%
|
Total net billable
subscriber additions
|
29
|
|
20
|
|
45%
|
|
152
|
|
119
|
|
28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
|
Year Ended December
31,
|
|
|
|
2018
|
|
2017
|
|
% Change
|
|
2018
|
|
2017
|
|
% Change
|
ARPU
(2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
Voice and
data
|
$
45
|
|
$
42
|
|
7%
|
|
$
45
|
|
$
42
|
|
7%
|
IoT data
|
$
12
|
|
$
13
|
|
-8%
|
|
$
12
|
|
$
13
|
|
-8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Subscribers as of the
end of the respective period.
|
|
|
(2)
|
Billable subscriber
and ARPU data is not applicable for Hosted payload and other data
service revenue items and is excluded from presentation
above.
|
|
|
(3)
|
Average monthly
revenue per unit, or ARPU, is calculated by dividing revenue in the
respective period by the average of the number of billable
subscribers at the beginning of the period
and the number of billable subscribers at the end of the period and
then dividing the result by the number of months in the
period.
|
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SOURCE Iridium Communications Inc.