Telesat(US:TSAT)2025-03-27 11:02Financial Performance - For the year ended December 31, 2024, Telesat reported consolidated revenue of $571 million, a decrease of 19% ($133 million) compared to the prior year[2]. - Adjusted EBITDA for the full year 2024 was $384 million, a decrease of 28% ($150 million), with an Adjusted EBITDA margin of 67.2%, down from 75.8% in 2023[4]. - Telesat had a net loss of $302 million for the year, compared to net income of $583 million for the prior year, primarily due to foreign exchange impacts and higher impairment charges[5]. - For the quarter ended December 31, 2024, consolidated revenue was $128 million, a decrease of 23% ($38 million) compared to the same period in 2023[6]. - Adjusted EBITDA for the quarter was $73 million, a decrease of 40% ($50 million), with an Adjusted EBITDA margin of 57.4%, down from 74.3% in the same period in 2023[8]. - Revenue for Q4 2024 was $127,995,000, a decrease of 22.8% from $165,901,000 in Q4 2023[22]. - Operating income for Q4 2024 was $(227,528,000), compared to $(9,668,000) in Q4 2023, indicating a significant decline[22]. - Net loss attributable to Telesat Corporation shareholders for the year 2024 was $(126,311,000), compared to a profit of $10,465,000 in 2023[22]. - Adjusted EBITDA for the year 2024 was $383,737,000, down from $533,702,000 in 2023, reflecting a decrease of 28.0%[27]. - Adjusted EBITDA margin for Q4 2024 was 57.4%, compared to 74.3% in Q4 2023, showing a decline in profitability[27]. Future Projections - For 2025, Telesat expects revenue between $405 million and $425 million, with Adjusted EBITDA projected between $170 million and $190 million[18]. - Telesat anticipates a substantial decrease in consolidated Adjusted EBITDA for 2025, down 53% at the mid-point of guidance compared to 2024[2]. Financial Position - Total assets increased to $6,945,179,000 in 2024 from $6,313,368,000 in 2023, representing a growth of 10.0%[23]. - Cash and cash equivalents decreased significantly to $552,064,000 in 2024 from $1,669,089,000 in 2023, a decline of 66.9%[24]. - Long-term indebtedness decreased to $3,096,615,000 in 2024 from $3,197,019,000 in 2023, a reduction of 3.1%[23]. - Total liabilities increased to $4,448,474,000 in 2024 from $3,914,385,000 in 2023, an increase of 13.6%[23]. - Telesat Corporation's total shareholders' equity rose to $2,496,705,000 in 2024 from $2,398,983,000 in 2023, an increase of 4.1%[23]. Contracted Revenue Backlog - Telesat's contracted backlog for future services was approximately $1.1 billion as of December 31, 2024[10]. - The contracted revenue backlog represents Telesat's expected future revenue from existing service contracts, primarily from satellite capacity agreements[29]. - The majority of Telesat's contracted revenue backlog is derived from contractual agreements for satellite capacity[29]. - The backlog calculation adheres to revenue recognition policies under IFRS 15, without discounting for present value[29]. Financial Metrics and Definitions - Telesat utilizes Adjusted EBITDA and Adjusted EBITDA margin to enhance understanding of operating results and facilitate comparisons with competitors[29]. - Adjusted EBITDA and Adjusted EBITDA margin are not substitutes for cash flows from operations or net income as indicators of liquidity and operating performance, respectively[29]. - Severance payments and special compensation for executives and employees are included in the financial metrics[29].