Globalstar, a Covington satellite telephone services provider, reported a fourth-quarter loss of $234.8 million, or 36 cents per share, compared to $19 million, or 5 cents per share, a year ago.
For the year, Globalstar reported a loss of $591.1 million, or 96 cents per share, compared to $112.2 million, or 29 cents per share, in 2012.
However, the company increased revenue for the quarter and the year to $21 million, up from $19.1 million, and $82.7 million, from $76.3 million, respectively.
Globalstar’s results fell short of Wall Street’s expectations. Analysts surveyed by Thomson Reuters forecast a loss of 5 cents per share for the quarter and 23 cents for the year. However, Globalstar’s revenue met analysts’ projections.
Globalstar said its 2013 losses increased primarily because of non-cash items. Those included a $179.1 million fourth-quarter loss that resulted from an increase in the value of the company’s derivatives. The derivative loss was $306 million for the year. Derivatives’ values are determined by fluctuations in the underlying asset, in this case primarily Globalstar’s stock. The stock’s value increased 61 percent in the fourth quarter and 400 percent for the year.
Globalstar also reported $109.1 million in costs to retire debt.
Jay Monroe, Globalstar chairman and CEO, said 2013 was a historic year for the company. It established its second-generation satellite network, restructured debt, lined up financing and won Federal Communications Commission review of its proposal to offer wireless Internet service.
Globalstar stock was down 3 cents a share Tuesday to $2.53.