Telesat president and CEO Dan Goldberg said Thursday he is pleased with the company’s performance after its 2014 fourth-quarter and year-end results showed the satellite service provider’s bottom line is holding steady.
“Through careful and focused execution, we achieved stable revenues, reduced operating expenses, modestly increased adjusted EBITDAand expanded our adjusted EBITDA margin relative to 2013,” Mr. Goldberg said in a statement.
The company reported consolidated revenue of $227 million for the three quarters ending Dec. 31, 2014, up one per cent from the same quarter last year. Consolidated revenue for the year was up three per cent to $923 million.
Converting the company’s American revenue to Canadian dollars boosted the bottom line, as revenue was unchanged when adjusted for foreign exchange rate changes.
Operating expenses were down eight per cent to $46 million in the quarter and decreased six per cent to $188 million for the year.
Adjusted EBITDAfor the fourth quarter was $183 million, up three per cent from the same quarter last year. For the year, adjusted EBITDA was $746 million, five per cent higher than in 2013.
The Adjusted EBITDA margin was 81 per cent for the fourth quarter and for the year, compared with 79 per cent for the fourth quarter and year-end of 2013.
Telesat reported a net income of $13 million in 2014, down $55 million from the year before, due in large part to a stronger American dollar. The company said increased revenue as well as lower operating and interest expenses limited the impact of the foreign exchange loss on net income.
Mr. Goldberg said the company’s contractual backlog, which was around $4.5 billion as of Dec. 31, 2014, means good things for Telesat’s future.
“Our industry-leading contractual backlog provides visibility into the stability of our future revenue and cash flow, and anticipated growing demand for satellite services positions us well to expand our activities going forward,” he said.