Globalstar, the Covington satellite telephone services provider, reported second-quarter earnings of $204.8 million, or 17 cents per diluted share, compared with a $433.7 million loss, or 48 cents per share, the year before.
The company’s quarterly numbers were boosted by a $237 million non-cash derivative gain.
The company’s adjusted earnings before interest, taxes, depreciation and amortization were $3.2 million for the quarter, compared with $5 million in the second quarter of 2014. A reduction in revenue, caused by decreased selling prices for Globalstar’s Duplex equipment, along with a change in exchange rates caused by the stronger U.S. dollar, led to the change.
Company officials have said EBITDA is the measuring stick satellite phone companies use because they are severely affected by depreciation of their equipment.
Globalstar said revenue for the quarter was $23 million, compared with $24 million in the second quarter of 2014. At the same time, the number of total subscribers to Globalstar’s phone service rose by 12 percent to nearly 673,000. The company added 24,000 subscribers during the quarter and has seen the total number of subscribers increase by more than 72,000 in the past year, said Jay Monroe, chairman and CEO of Globalstar.
Analysts polled by Thomson Reuters expected the company to report a loss of 2 cents per share on revenue of $25.6 million for the second quarter.
Globalstar stock was up 9 cents a share to $1.99 Monday, a 4.7 percent increase.
The company also announced Monday it had reached a deal with Terrapin Opportunity, a California-based angel investor, to buy up to $75 million in Globalstar stock over the next two years. The company signed a similar agreement with Terrapin on Dec. 31, 2012, to buy up to $30 million in stock over a two year period.
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