Globalstar Inc (GSAT)

[E E Euthanasia]

CC excerpts vis-a-vis TLPS & liquidity issues:

Jay Monroe - Chairman & CEO

... At the outset of today's call, I'd like to provide an update on the FCC proceeding. As most of you fully understand and appreciate, a successful approval remains our number one priority and together with our team of advisors, we are unrelentingly focused on this process daily. Recently, we submitted a full-term Ex Parte, responding to the latest interference report filed by Microsoft in September. I encourage everyone to read our technical report carefully. It fully details the flawed methodology used which renders Microsoft's conclusions completely unreliable.

As explained in our response, the opposition's methodology included an extreme test set up and technical parameters that would never occur in any real-world deployment. On the contrary, when interference testing is conducted using accurate real-world assumptions as we did and we submitted on our Ex Parte and has been confirmed in multiple tests and various environments in the past which are also on the record, it is conclusive that TLPS peacefully coexist with unlicensed operations. We trust that the commission will look past these absurd tests from those with obvious competitive interest and will instead rely on the credible technical work conducted by respected engineers which over the years of analysis and tests has consistently proven that TLPS poses no risk whatsoever to such services as Bluetooth and 2.4 Wi-Fi systems.

The commission should be commended for continuing to move the order forward without being paralyzed by engineering studies submitted by incumbent operators with purely competitive motivations. There has been significant activity on our part recently and for those checking the FCC website [ https://www.fcc.gov/ecfs/search/filings?proceedings_name=13-213&sort=date_disseminated,DESC ], you can expect new Ex Partes to appear shortly. We are committed to working every day to develop a compromise that provides the company with a favorable majority FCC vote resulting in a business model that will produce deployments that intensively uses spectrum for the benefit of all consumers.

There is still work to be done for sure, but I can tell you that neither I, nor our management team are quitters and we will continue to work directly with all involved parties to complete this process. TLPS is rooted in good policy that can provide material benefits to American consumers by increasing broadband options. We are not in contradiction with, but rather in sync with good public policy and are therefore confident that we will forge a solution leading to a successful outcome.

I regret that we will not be able to take questions on the proceeding during the Q&A portion of the call given the sensitive time in the process, but I hope my statements on this subject this afternoon are helpful to understanding the current events. When the proceeding finishes and in ordered issues, we look forward to holding a separate call dedicated to the approval's implications for our business...

Rebecca Clary - VP & CFO

... Although adjusted EBITDA has continued to increase significantly when compared to the prior year, we do not currently project that it will reach the levels required by our facility agreements or in the next 12 months without revenue contribution from sources incremental to our current business operations. However, our facility agreement provide for mechanism referred to as equity share of contributions which permits us to use amounts raised from issuing equity and certain covenant calculation, allowing us to maintain compliance and periods when adjusted EBITDA falls below the required level.

As of September 30, 2016, we were in compliance with all covenants and utilizing the equity share mechanism, we believe we will maintain compliance by using funds from our current Terrapin agreement and other sources not yet fully arranged. Our current sources of liquidity include cash flows from operations, a cash balance of just under $13 million and availability under our common stock purchase agreement with Terrapin of $31.5 million. A longer term source of liquidity includes the $38 million we currently have held in a debt service reserve account which can only be used for principal and interest payments due under the facility.

Projected contractual obligations over the next 12 months consist primarily of debt service payments due in December 2016 and June 2017. These amounts include principal payments due under the facility agreement of $38 million and interest payments due under the facility in subordinated notes of $21 million. We also have contractual obligations related to our second generation ground infrastructure and other ground-related cash obligation, which we expect will be approximately $7 million in aggregates during the next 12 months. We expect to pay half of this during the fourth quarter upon final acceptance of the work completed by Hughes and Ericsson...

http://seekingalpha.com/article/4019348-globalstars-gsat-ceo-jay-monroe-q3-2016-results-earnings-call-transcript?part=single

the 10-Q Quarterly Report -- with all its exhibits -- can be viewed on or downloaded from the SEC's website at:
https://www.sec.gov/Archives/edgar/data/1366868/000136686816000193/0001366868-16-000193-index.htm