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Filed by Telesat Corporation
Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934
Subject Company: Loral Space & Communications Inc.
(Commission File No. 001-14180) November 16, 2021 |
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Non-Offering Prospectus
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November 16, 2021
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| | | | | A-1 | | | |
| | | | | C-1 | | | |
| | | | | C-2 | | |
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12 Months Ended
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9 Months Ended
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December 31,
2020 |
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December 31,
2019 |
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December 31,
2018 |
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September 30,
2021 |
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September 30,
2020 |
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($)
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($)
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($)
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($)
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($)
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Highest rate during the period
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| | | | 1.4496 | | | | | | 1.3600 | | | | | | 1.3642 | | | | | | 1.2856 | | | | | | 1.4496 | | |
Lowest rate during the period
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| | | | 1.2718 | | | | | | 1.2988 | | | | | | 1.2288 | | | | | | 1.2040 | | | | | | 1.2970 | | |
Average noon spot rate for the period
|
| | | | 1.3415 | | | | | | 1.3269 | | | | | | 1.2957 | | | | | | 1.2513 | | | | | | 1.3541 | | |
Rate at the end of the period
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| | | | 1.2732 | | | | | | 1.2988 | | | | | | 1.3642 | | | | | | 1.2741 | | | | | | 1.3339 | | |
Category(3)
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Number of Telesat
Options to acquire Non-Voting Participating Preferred Shares(1) |
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Exercise Price(2)
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Expiration
Date |
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Options | | | | | | | | | | | | | | | | |
All of our executive officers and past executive officers, as a group (6 in total)
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| | | | 1,705,973 | | | | | $ | 19.86 | | | |
From April 2023
to March 2024 |
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All of our directors and past directors (who are not also executive officers), as a group (nil in total)
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| | | | — | | | | | | N/A | | | |
N/A
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All other of our employees and past employees, as
a group (39 in total) |
| | | | 479,491 | | | | | $ | 21.47 | | | |
From May 2023
to July 2030 |
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Total(4) | | | | | 2,185,464 | | | | | $ | 20.21 | | | |
—
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Ratings
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Moody’s
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S&P
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Senior Notes
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Caa1
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B
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2027 Senior Secured Notes
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B1
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BB−
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2026 Senior Secured Notes
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B1
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BB−
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Page
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| | | | A-i | | | |
| | | | A-ii | | | |
| | | | A-iii | | | |
| | | | A-1 | | | |
| | | | A-9 | | | |
| | | | A-11 | | | |
| | | | A-13 | | | |
| | | | A-16 | | | |
| | | | A-60 | | | |
| | | | A-61 | | | |
| | | | A-62 | | | |
| | | | A-63 | | | |
| | | | A-65 | | | |
| | | | A-67 | | | |
| | | | A-95 | | | |
| | | | A-128 | | | |
| | | | A-155 | | | |
| | | | A-162 | | | |
| | | | A-173 | | | |
| | | | A-189 | | | |
| | | | A-190 | | | |
| | | | A-193 | | | |
| | | | A-194 | | | |
| | | | A-204 | | | |
| | | | F-1 | | |
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Years ended December 31,
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Nine months ended
September 30, |
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(in CAD$ millions)
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2016(1)
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2017(1)
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2018(1)
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2019(1)
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2020
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2020
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2021
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Statement of Income (Loss) Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Broadcast
|
| | | $ | 486.5 | | | | | $ | 472.8 | | | | | $ | 455.1 | | | | | $ | 444.5 | | | | | $ | 411.4 | | | | | $ | 309.8 | | | | | $ | 293.2 | | |
Enterprise
|
| | | | 420.1 | | | | | | 430.3 | | | | | | 428.2 | | | | | | 444.7 | | | | | | 389.7 | | | | | | 293.6 | | | | | | 267.7 | | |
Consulting and other
|
| | | | 24.3 | | | | | | 24.3 | | | | | | 19.6 | | | | | | 21.7 | | | | | | 19.4 | | | | | | 15.2 | | | | | | 9.8 | | |
Total operating revenues
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| | | | 930.9 | | | | | | 927.4 | | | | | | 902.9 | | | | | | 910.9 | | | | | | 820.5 | | | | | | 618.6 | | | | | | 570.7 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses
|
| | | | (174.9) | | | | | | (187.7) | | | | | | (185.8) | | | | | | (165.5) | | | | | | (180.9) | | | | | | (133.7) | | | | | | (146.9) | | |
Depreciation
|
| | | | (224.8) | | | | | | (221.1) | | | | | | (224.9) | | | | | | (243.0) | | | | | | (216.9) | | | | | | (166.8) | | | | | | (153.4) | | |
Amortization
|
| | | | (27.7) | | | | | | (26.3) | | | | | | (24.3) | | | | | | (23.3) | | | | | | (17.2) | | | | | | (12.9) | | | | | | (12.1) | | |
Other operating (losses) gains, net
|
| | | | (2.6) | | | | | | 5.9 | | | | | | 0.7 | | | | | | (0.9) | | | | | | (0.2) | | | | | | (0.2) | | | | | | (0.7) | | |
Operating income:
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| | | | 500.9 | | | | | | 498.2 | | | | | | 468.7 | | | | | | 478.3 | | | | | | 405.3 | | | | | | 304.9 | | | | | | 257.6 | | |
Other (expenses) income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (198.8) | | | | | | (200.1) | | | | | | (237.8) | | | | | | (258.3) | | | | | | (203.8) | | | | | | (155.9) | | | | | | (139.2) | | |
Loss on refinancing
|
| | | | (31.9) | | | | | | — | | | | | | — | | | | | | (151.9) | | | | | | — | | | | | | — | | | | | | — | | |
Interest and other income
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| | | | 6.1 | | | | | | 3.0 | | | | | | 16.5 | | | | | | 20.0 | | | | | | 5.2 | | | | | | 6.7 | | | | | | 2.9 | | |
Gain (loss) on changes in fair value of financial
instruments |
| | | | 7.9 | | | | | | 60.3 | | | | | | (18.2) | | | | | | (49.7) | | | | | | (13.1) | | | | | | (38.9) | | | | | | (20.4) | | |
Gain (loss) on foreign
exchange |
| | | | 92.6 | | | | | | 223.9 | | | | | | (259.1) | | | | | | 163.8 | | | | | | 47.6 | | | | | | (99.1) | | | | | | 7.3 | | |
Tax (expense) recovery
|
| | | | (83.9) | | | | | | (80.2) | | | | | | (61.1) | | | | | | (15.1) | | | | | | 4.4 | | | | | | (27.1) | | | | | | (47.6) | | |
Net income (loss)
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| | | $ | 292.9 | | | | | $ | 505.1 | | | | | $ | (90.9) | | | | | $ | 187.2 | | | | | $ | 245.6 | | | | | $ | (9.4) | | | | | $ | 60.6 | | |
Statement of Cash Flows Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash generated from operating activities
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| | | $ | 527.4 | | | | | $ | 486.7 | | | | | $ | 466.3 | | | | | $ | 375.6 | | | | | $ | 372.4 | | | | | $ | 299.7 | | | | | $ | 250.1 | | |
Net cash used in investing activities
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| | | $ | (286.1) | | | | | $ | (164.6) | | | | | $ | (103.3) | | | | | $ | (39.6) | | | | | $ | (93.0) | | | | | $ | (78.1) | | | | | $ | (124.3) | | |
Net cash (used in) generated from financing activities
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| | | $ | (139.8) | | | | | $ | (588.8) | | | | | $ | (114.2) | | | | | $ | (40.3) | | | | | $ | (450.2) | | | | | $ | (21.2) | | | | | $ | 606.2 | | |
Balance Sheet Data (end of period):
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
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| | | $ | 782.4 | | | | | $ | 479.0 | | | | | $ | 768.4 | | | | | $ | 1,027.2 | | | | | $ | 818.4 | | | | | $ | 1,242.3 | | | | | $ | 1,558.6 | | |
Total assets
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| | | $ | 6,138.6 | | | | | $ | 5,697.6 | | | | | $ | 5,884.5 | | | | | $ | 5,922.0 | | | | | $ | 5,581.2 | | | | | $ | 5,991.5 | | | | | $ | 6,245.1 | | |
Total indebtedness (including current portion)
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| | | $ | 3,851.6 | | | | | $ | 3,543.4 | | | | | $ | 3,724.2 | | | | | $ | 3,712.8 | | | | | $ | 3,187.2 | | | | | $ | 3,788.1 | | | | | $ | 3,805.3 | | |
Total shareholders’ equity
|
| | | $ | 1,194.0 | | | | | $ | 1,142.8 | | | | | $ | 1,093.0 | | | | | $ | 1,245.3 | | | | | $ | 1,459.9 | | | | | $ | 1,267.2 | | | | | $ | 1,552.5 | | |
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December 31,
|
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September 30,
2021 |
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(in thousands of US$)
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2016
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2017
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2018
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2019
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2020
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Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 37,458 | | | | | $ | 255,139 | | | | | $ | 256,947 | | | | | $ | 259,067 | | | | | $ | 31,631 | | | | | $ | 19,986 | | |
Total assets
|
| | | | 264,231 | | | | | | 374,711 | | | | | | 330,300 | | | | | | 390,810 | | | | | | 254,469 | | | | | | 293,448 | | |
Non-current liabilities
|
| | | | 87,692 | | | | | | 80,261 | | | | | | 28,666 | | | | | | 35,289 | | | | | | 40,095 | | | | | | 39,881 | | |
Total liabilities
|
| | | | 93,820 | | | | | | 84,113 | | | | | | 32,734 | | | | | | 40,783 | | | | | | 44,936 | | | | | | 52,174 | | |
Loral shareholders’ equity
|
| | | | 170,411 | | | | | | 290,598 | | | | | | 297,566 | | | | | | 350,027 | | | | | | 209,533 | | | | | | 241,274 | | |
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Years ended December 31,
|
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Nine Months Ended
September 30, |
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(in thousands of US$, except per share amounts)
|
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2016
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2017
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2018
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2019
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2020
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2020
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2021
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Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loss from continuing operations before
income taxes and equity in net income (loss) of affiliates |
| | | $ | (8,001) | | | | | $ | (8,770) | | | | | $ | (5,259) | | | | | $ | (5,495) | | | | | $ | (10,737) | | | | | $ | (4,735) | | | | | $ | (19,222) | | |
Income tax (provision)
benefit |
| | | | (28,507) | | | | | | (73,108) | | | | | | 39,348 | | | | | | (6,153) | | | | | | (12,886) | | | | | | (956) | | | | | | 1,252 | | |
(Loss) income from continuing operations before equity in net income (loss) of affiliates
|
| | | | (36,508) | | | | | | (81,878) | | | | | | 34,089 | | | | | | (11,648) | | | | | | (23,623) | | | | | | (5,691) | | | | | | (17,970) | | |
Equity in net income (loss) of affiliates
|
| | | | 84,078 | | | | | | 216,347 | | | | | | (24,412) | | | | | | 101,403 | | | | | | 116,716 | | | | | | 9,086 | | | | | | 44,969 | | |
Income from continuing operations
|
| | | | 47,570 | | | | | | 134,469 | | | | | | 9,677 | | | | | | 89,755 | | | | | | 93,093 | | | | | | 3,395 | | | | | | 26,999 | | |
Loss from discontinued operations, net
of tax |
| | | | (370) | | | | | | (5) | | | | | | (63) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income attributable to common shareholders
|
| | | | 47,200 | | | | | | 134,464 | | | | | | 9,614 | | | | | | 89,755 | | | | | | 93,093 | | | | | | 3,395 | | | | | | 26,999 | | |
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Years ended December 31,
|
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Nine Months Ended
September 30, |
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(in thousands of US$, except per share amounts)
|
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2016
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2017
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2018
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2019
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2020
|
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2020
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2021
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Earnings per common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 1.54 | | | | | $ | 4.35 | | | | | $ | 0.31 | | | | | $ | 2.90 | | | | | $ | 3.01 | | | | | $ | 0.11 | | | | | $ | 0.87 | | |
Diluted
|
| | | $ | 1.50 | | | | | $ | 4.30 | | | | | $ | 0.31 | | | | | $ | 2.88 | | | | | $ | 2.98 | | | | | $ | 0.11 | | | | | $ | 0.83 | | |
Dividend per share
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 7.00 | | | | | $ | 5.50 | | | | | $ | — | | |
Other Financial Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash (used in) provided by operating activities
|
| | | $ | (21,249) | | | | | $ | (24,700) | | | | | $ | 1,812 | | | | | $ | 2,126 | | | | | $ | (10,907) | | | | | $ | (5,511) | | | | | $ | (11,645) | | |
Net cash (used in) provided by investing
activities |
| | | $ | (5) | | | | | $ | 242,685 | | | | | $ | (4) | | | | | $ | (6) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Net cash used in financing activities
|
| | | $ | (141) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | (216,529) | | | | | $ | (170,130) | | | | | $ | — | | |
(in CAD$ millions)
|
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For the year ended
December 31, 2020 |
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For the nine months
ended September 30, 2021 |
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Statement of income data: | | | | | | | | | | | | | |
Operating revenues: | | | | | | | | | | | | | |
Broadcast
|
| | | $ | 411.4 | | | | | $ | 293.2 | | |
Enterprise
|
| | | | 389.7 | | | | | | 267.7 | | |
Consulting and other
|
| | | | 19.4 | | | | | | 9.8 | | |
Total operating revenues
|
| | | | 820.5 | | | | | | 570.7 | | |
Operating expenses: | | | | | | | | | | | | | |
Operating expenses
|
| | | | (222.3) | | | | | | (156.4) | | |
Depreciation
|
| | | | (217.7) | | | | | | (154.0) | | |
Amortization
|
| | | | (17.2) | | | | | | (12.1) | | |
Other operating losses, net
|
| | | | (0.2) | | | | | | (0.7) | | |
Operating income
|
| | | | 363.1 | | | | | | 247.5 | | |
Other (expenses) income: | | | | | | | | | | | | | |
Interest expense
|
| | | | (204.6) | | | | | | (139.7) | | |
Interest and other income
|
| | | | 6.6 | | | | | | 2.9 | | |
Loss on changes in fair value of financial instruments
|
| | | | (13.1) | | | | | | (20.4) | | |
Gain on foreign exchange
|
| | | | 47.6 | | | | | | 7.3 | | |
Tax expense
|
| | | | (11.9) | | | | | | (45.9) | | |
Net income
|
| | | $ | 187.7 | | | | | $ | 51.7 | | |
Net income attributable to: | | | | | | | | | | | | | |
Owners
|
| | | $ | 51.5 | | | | | $ | 14.1 | | |
Non-controlling interest
|
| | | $ | 136.2 | | | | | $ | 37.6 | | |
Balance sheet data (end of period): | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | | | | | | $ | 1,538.4 | | |
Total assets
|
| | | | | | | | | $ | 6,263.0 | | |
Total liabilities
|
| | | | | | | | | $ | 4,749.8 | | |
Total shareholders’ equity
|
| | | | | | | | | $ | 1,513.2 | | |
For the year ended December 31, 2020 (in CAD$ millions)
|
| |
Telesat
Corporation |
| |
Telesat
Partnership |
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Statement of income data: | | | | | | | | | | | | | |
Operating revenues: | | | | | | | | | | | | | |
Broadcast
|
| | | $ | — | | | | | $ | 411.4 | | |
Enterprise
|
| | | | — | | | | | | 389.7 | | |
Consulting and other
|
| | | | — | | | | | | 19.4 | | |
Total operating revenues
|
| | | | — | | | | | | 820.5 | | |
Operating expenses:
|
| | | | | | | | | | | | |
Operating expenses
|
| | | | — | | | | | | (222.3) | | |
Depreciation
|
| | | | — | | | | | | (217.7) | | |
Amortization
|
| | | | — | | | | | | (17.2) | | |
Other operating losses, net
|
| | | | — | | | | | | (0.2) | | |
Operating income
|
| | | | — | | | | | | 363.1 | | |
Operating (expense) income:
|
| | | | | | | | | | | | |
Interest expense
|
| | | | — | | | | | | (204.6) | | |
Equity in net income of affiliates
|
| | | | 2.3 | | | | | | — | | |
Interest and other income
|
| | | | — | | | | | | 6.6 | | |
Loss on changes in fair value of financial instruments
|
| | | | — | | | | | | (13.1) | | |
Loss on changes in fair value of LP Units
|
| | | | — | | | | | | (185.4) | | |
Gain on foreign exchange
|
| | | | — | | | | | | 47.6 | | |
Tax expense
|
| | | | — | | | | | | (11.9) | | |
Net income
|
| | | $ | 2.3 | | | | | $ | 2.3 | | |
For the nine months ended September 30, 2021 (in CAD$ millions)
|
| |
Telesat
Corporation |
| |
Telesat
Partnership |
| ||||||
Statement of income data: | | | | | | | | | | | | | |
Operating revenues: | | | | | | | | | | | | | |
Broadcast
|
| | | $ | — | | | | | $ | 293.2 | | |
Enterprise
|
| | | | — | | | | | | 267.7 | | |
Consulting and other
|
| | | | — | | | | | | 9.8 | | |
Total operating revenues
|
| | | | — | | | | | | 570.7 | | |
Operating expenses:
|
| | | | | | | | | | | | |
Operating expenses
|
| | | | — | | | | | | (156.4) | | |
Depreciation
|
| | | | — | | | | | | (154.0) | | |
Amortization
|
| | | | — | | | | | | (12.1) | | |
Other operating losses, net
|
| | | | — | | | | | | (0.7) | | |
Operating income
|
| | | | — | | | | | | 247.5 | | |
Operating (expense) income:
|
| | | | | | | | | | | | |
Interest expense
|
| | | | — | | | | | | (139.7) | | |
Equity in net income of affiliates
|
| | | | 0.6 | | | | | | — | | |
Interest and other income
|
| | | | — | | | | | | 2.9 | | |
Loss on changes in fair value of financial instruments
|
| | | | — | | | | | | (20.4) | | |
Loss on changes in fair value of LP Units
|
| | | | — | | | | | | (51.1) | | |
Gain on foreign exchange
|
| | | | — | | | | | | 7.3 | | |
Tax expense
|
| | | | — | | | | | | (45.9) | | |
Net income
|
| | | $ | 0.6 | | | | | $ | 0.6 | | |
(in millions of Canadian dollars)
|
| |
Telesat Canada
|
| |
Loral
|
| |
Telesat
Corporation |
| |||||||||
Cash
|
| | | $ | 1,558.6 | | | | | $ | 25.3 | | | | | $ | 1,538.4 | | |
Total current portion of long-term debt and leases | | | | | | | | | | | | | | | | | | | |
Current secured guaranteed indebtedness
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Current unsecured guaranteed indebtedness
|
| | | | — | | | | | | — | | | | | | — | | |
Current unguaranteed lease liabilities
|
| | | | 1.9 | | | | | | — | | | | | | 1.9 | | |
Total non-current debt and leases | | | | | | | | | | | | | | | | | | | |
Secured guaranteed long-term indebtedness
|
| | | | 3,110.2 | | | | | | — | | | | | | 3,110.2 | | |
Unsecured guaranteed long-term indebtedness
|
| | | | 697.4 | | | | | | — | | | | | | 697.4 | | |
Long-term unguaranteed lease liabilities
|
| | | | 31.6 | | | | | | — | | | | | | 31.6 | | |
Total debt
|
| | | | 3,841.1 | | | | | | — | | | | | | 3,841.1 | | |
Shareholders’ equity | | | | | | | | | | | | | | | | | | | |
Common shares
|
| | | | 26.6 | | | | | | — | | | | | | 46.6 | | |
Voting participating preferred shares
|
| | | | 48.2 | | | | | | — | | | | | | — | | |
Non-voting participating preferred shares
|
| | | | 80.9 | | | | | | — | | | | | | — | | |
Voting common stock
|
| | | | — | | | | | | 0.3 | | | | | | — | | |
Non-voting common stock
|
| | | | — | | | | | | 0.1 | | | | | | — | | |
Paid in capital
|
| | | | — | | | | | | 1,293.4 | | | | | | — | | |
Treasury stock
|
| | | | — | | | | | | (12.2) | | | | | | — | | |
Accumulated earnings (deficit)
|
| | | | 1,327.1 | | | | | | (912.7) | | | | | | 352.3 | | |
Reserves
|
| | | | 69.7 | | | | | | (62.9) | | | | | | 19.1 | | |
Non-controlling interest
|
| | | | — | | | | | | — | | | | | | 1,095.2 | | |
Total shareholders’ equity
|
| | | | 1,552.5 | | | | | | 306.0 | | | | | | 1,513.2 | | |
Total capitalization
|
| | | $ | 5,393.6 | | | | | $ | 306.0 | | | | | $ | 5,354.3 | | |
(in millions of Canadian dollars)
|
| |
Telesat Canada
|
| |
Loral
|
| |
Telesat
Partnership |
| |
Telesat
Corporation |
| ||||||||||||
Cash
|
| | | $ | 1,558.6 | | | | | $ | 25.3 | | | | | $ | 1,538.4 | | | | | $ | — | | |
Total current portion of long-term debt and leases | | | | | | | | | | | | | | | | | | | | | | | | | |
Current secured guaranteed indebtedness
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Current unsecured guaranteed indebtedness
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Current unguaranteed lease liabilities
|
| | | | 1.9 | | | | | | — | | | | | | 1.9 | | | | | | — | | |
Total non-current debt and leases | | | | | | | | | | | | | | | | | | | | | | | | | |
Secured guaranteed long-term indebtedness
|
| | | | 3,110.2 | | | | | | — | | | | | | 3,110.2 | | | | | | — | | |
Unsecured guaranteed long-term indebtedness
|
| | | | 697.4 | | | | | | — | | | | | | 697.4 | | | | | | — | | |
Long-term unguaranteed lease liabilities
|
| | | | 31.6 | | | | | | — | | | | | | 31.6 | | | | | | — | | |
Partnership units liability
|
| | | | — | | | | | | — | | | | | | 1,486.5 | | | | | | — | | |
Total debt
|
| | | | 3,841.1 | | | | | | — | | | | | | 5,327.6 | | | | | | — | | |
Shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | |
Common shares/partnership units
|
| | | | 26.6 | | | | | | — | | | | | | 11.1 | | | | | | 11.1 | | |
Voting participating preferred shares
|
| | | | 48.2 | | | | | | — | | | | | | — | | | | | | — | | |
Non-voting participating preferred shares
|
| | | | 80.9 | | | | | | — | | | | | | — | | | | | | — | | |
Voting common stock
|
| | | | — | | | | | | 0.3 | | | | | | — | | | | | | — | | |
Non-voting common stock
|
| | | | — | | | | | | 0.1 | | | | | | — | | | | | | — | | |
Paid in capital
|
| | | | — | | | | | | 1,293.4 | | | | | | — | | | | | | — | | |
Treasury stock
|
| | | | — | | | | | | (12.2) | | | | | | — | | | | | | — | | |
Accumulated earnings (deficit)
|
| | | | 1,327.1 | | | | | | (912.7) | | | | | | 14.9 | | | | | | — | | |
Reserves
|
| | | | 69.7 | | | | | | (62.9) | | | | | | 0.9 | | | | | | — | | |
Total shareholders’ equity
|
| | | | 1,552.5 | | | | | | 306.0 | | | | | | 26.9 | | | | | | 11.1 | | |
Total capitalization
|
| | | $ | 5,393.6 | | | | | $ | 306.0 | | | | | $ | 5,354.5 | | | | | $ | 11.1 | | |
(in millions of Canadian dollars)
|
| |
Loral
|
| |
Reclassifications
|
| |
Historical Loral
|
| |||||||||
Income tax refund receivable
|
| | | $ | 1.7 | | | | | $ | (1.7) | | | | | $ | — | | |
Other current financial assets
|
| | | $ | — | | | | | $ | 0.4 | | | | | $ | 0.4 | | |
Prepaid expenses and other current assets
|
| | | $ | — | | | | | $ | 2.8 | | | | | $ | 2.8 | | |
Other current assets
|
| | | $ | 1.5 | | | | | $ | (1.5) | | | | | $ | — | | |
Right-of-use-asset
|
| | | $ | 0.2 | | | | | $ | (0.2) | | | | | $ | — | | |
Satellites, property and other equipment
|
| | | $ | — | | | | | $ | 0.2 | | | | | $ | 0.2 | | |
Trade and other payables
|
| | | $ | — | | | | | $ | 12.5 | | | | | $ | 12.5 | | |
Accrued employment costs
|
| | | $ | 12.4 | | | | | $ | (12.4) | | | | | $ | — | | |
Other current liabilities
|
| | | $ | 3.2 | | | | | $ | (0.1) | | | | | $ | 3.1 | | |
Pension and other post-retirement liabilities
|
| | | $ | 24.4 | | | | | $ | (24.4) | | | | | $ | — | | |
Other long-term liabilities
|
| | | $ | 26.2 | | | | | $ | 24.4 | | | | | $ | 50.6 | | |
Accumulated deficit
|
| | | $ | (890.3) | | | | | $ | (22.4) | | | | | $ | (912.7) | | |
Reserves
|
| | | $ | — | | | | | $ | (62.9) | | | | | $ | (62.9) | | |
Accumulated other comprehensive loss
|
| | | $ | (85.3) | | | | | $ | 85.3 | | | | | $ | — | | |
(in millions of Canadian dollars)
|
| |
Loral
|
| |
Reclassifications
|
| |
Historical Loral
|
| |||||||||
Operating expenses
|
| | | $ | — | | | | | $ | (15.8) | | | | | $ | (15.8) | | |
General and administrative expenses
|
| | | $ | (9.0) | | | | | $ | 9.0 | | | | | $ | — | | |
Recovery of affiliate doubtful receivable
|
| | | $ | 7.8 | | | | | $ | (7.8) | | | | | $ | — | | |
Other expense
|
| | | $ | (14.6) | | | | | $ | 14.6 | | | | | $ | — | | |
(in millions of Canadian dollars)
|
| |
Loral
|
| |
Reclassifications
|
| |
Historical Loral
|
| |||||||||
Operating expenses
|
| | | $ | — | | | | | $ | (24.1) | | | | | $ | (24.1) | | |
General and administrative expenses
|
| | | $ | (15.5) | | | | | $ | 15.5 | | | | | $ | — | | |
Other expense
|
| | | $ | (8.6) | | | | | $ | 8.6 | | | | | $ | — | | |
| | |
Telesat
Corporation |
| |
Historical
Telesat |
| |
Historical
Loral |
| |
Inducement
payment adjustment |
| |
Closing
payment mechanism adjustment |
| |
Subtotal
|
| |
Transaction
accounting adjustments |
| | | | |
Telesat
Corporation Pro Forma |
| ||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | — | | | | | $ | 1,558.6 | | | | | $ | 25.3 | | | | | $ | (12.7) | | | | | $ | (13.0) | | | | | $ | 1,558.2 | | | | | $ | (19.8) | | | |
(1.2.1), (1.3)
|
| | | $ | 1,538.4 | | |
Trade and other receivables
|
| | | | — | | | | | | 56.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | 56.0 | | | | | | — | | | | | | | | | 56.0 | | |
Other current financial assets
|
| | | | — | | | | | | 0.5 | | | | | | 0.4 | | | | | | — | | | | | | — | | | | | | 0.9 | | | | | | — | | | | | | | | | 0.9 | | |
Prepaid expenses and other current
assets |
| | | | — | | | | | | 38.1 | | | | | | 2.8 | | | | | | — | | | | | | — | | | | | | 40.9 | | | | | | — | | | | | | | | | 40.9 | | |
Total current assets
|
| | | | — | | | | | | 1,653.2 | | | | | | 28.5 | | | | | | (12.7) | | | | | | (13.0) | | | | | | 1,656.0 | | | | | | (19.8) | | | | | | | | | 1,636.2 | | |
Satellites, property and other
equipment |
| | | | — | | | | | | 1,286.4 | | | | | | 0.2 | | | | | | — | | | | | | — | | | | | | 1,286.6 | | | | | | (0.2) | | | |
(1.1.1)
|
| | | | 1,286.4 | | |
Deferred tax assets
|
| | | | — | | | | | | 62.5 | | | | | | 37.2 | | | | | | — | | | | | | — | | | | | | 99.7 | | | | | | (2.3) | | | |
(1.5)
|
| | | | 97.4 | | |
Other long-term financial assets
|
| | | | — | | | | | | 16.9 | | | | | | — | | | | | | — | | | | | | — | | | | | | 16.9 | | | | | | — | | | | | | | | | 16.9 | | |
Other long-term assets
|
| | | | — | | | | | | 13.5 | | | | | | — | | | | | | — | | | | | | — | | | | | | 13.5 | | | | | | — | | | | | | | | | 13.5 | | |
Intangible assets
|
| | | | — | | | | | | 766.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | 766.0 | | | | | | — | | | | | | | | | 766.0 | | |
Goodwill
|
| | | | — | | | | | | 2,446.6 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,446.6 | | | | | | — | | | | | | | | | 2,446.6 | | |
Investments
|
| | | | — | | | | | | — | | | | | | 306.3 | | | | | | — | | | | | | — | | | | | | 306.3 | | | | | | (306.3) | | | |
(1.4)
|
| | | | — | | |
Total assets
|
| | | $ | — | | | | | $ | 6,245.1 | | | | | $ | 372.2 | | | | | $ | (12.7) | | | | | $ | (13.0) | | | | | $ | 6,591.6 | | | | | $ | (328.6) | | | | | | | | $ | 6,263.0 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade and other payables
|
| | | $ | — | | | | | $ | 33.5 | | | | | $ | 12.5 | | | | | $ | — | | | | | $ | — | | | | | $ | 46.0 | | | | | $ | (8.8) | | | |
(1.3)
|
| | | $ | 37.2 | | |
Other current financial liabilities
|
| | | | — | | | | | | 63.4 | | | | | | — | | | | | | — | | | | | | — | | | | | | 63.4 | | | | | | — | | | | | | | | | 63.4 | | |
Other current liabilities
|
| | | | — | | | | | | 91.3 | | | | | | 3.1 | | | | | | — | | | | | | — | | | | | | 94.4 | | | | | | (0.2) | | | |
(1.1.1)
|
| | | | 94.2 | | |
Total current liabilities
|
| | |
|
—
|
| | | |
|
188.2
|
| | | |
|
15.6
|
| | | | | — | | | | | | — | | | | |
|
203.8
|
| | | |
|
(9.0)
|
| | | | | | |
|
194.8
|
| |
Long-term indebtedness
|
| | | | — | | | | | | 3,805.3 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,805.3 | | | | | | — | | | | | | | | | 3,805.3 | | |
Deferred tax liabilities
|
| | | | — | | | | | | 290.3 | | | | | | — | | | | | | — | | | | | | — | | | | | | 290.3 | | | | | | — | | | | | | | | | 290.3 | | |
Other long-term financial liabilities
|
| | | | — | | | | | | 25.2 | | | | | | — | | | | | | — | | | | | | — | | | | | | 25.2 | | | | | | — | | | | | | | | | 25.2 | | |
Other long-term liabilities
|
| | | | — | | | | | | 383.6 | | | | | | 50.6 | | | | | | — | | | | | | — | | | | | | 434.2 | | | | | | — | | | | | | | | | 434.2 | | |
Total liabilities
|
| | |
|
—
|
| | | |
|
4,692.6
|
| | | |
|
66.2
|
| | | | | — | | | | | | — | | | | |
|
4,758.8
|
| | | |
|
(9.0)
|
| | | | | | |
|
4,749.8
|
| |
Shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Share capital
|
| | | | — | | | | | | 155.7 | | | | | | 1,281.6 | | | | | | — | | | | | | — | | | | | | 1,437.3 | | | | | | (1,390.7) | | | |
(1.2.2)
|
| | | | 46.6 | | |
Accumulated earnings (deficit)
|
| | | | — | | | | | | 1,327.1 | | | | | | (912.7) | | | | | | (12.7) | | | | | | (13.0) | | | | | | 388.7 | | | | | | (36.4) | | | |
(1.1.3), (1.2.3),
(1.3) |
| | | | 352.3 | | |
Reserves
|
| | | | — | | | | | | 69.7 | | | | | | (62.9) | | | | | | — | | | | | | — | | | | | | 6.8 | | | | | | 12.3 | | | |
(1.1.3), (1.2.4)
|
| | | | 19.1 | | |
Non-controlling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,095.2 | | | |
(1.2.5)
|
| | | | 1,095.2 | | |
Total shareholders’ equity
|
| | | | — | | | | | | 1,552.5 | | | | | | 306.0 | | | | | | (12.7) | | | | | | (13.0) | | | | | | 1,832.8 | | | | | | (319.6) | | | | | | | | | 1,513.2 | | |
Total liabilities and shareholders’
equity |
| | | $ | — | | | | | $ | 6,245.1 | | | | | $ | 372.2 | | | | | $ | (12.7) | | | | | $ | (13.0) | | | | | $ | 6,591.6 | | | | | $ | (328.6) | | | | | | | | $ | 6,263.0 | | |
| | |
Telesat
Corporation |
| |
Historical
Telesat |
| |
Historical
Loral |
| |
Transaction
accounting adjustments(1) |
| | | | |
Telesat
Corporation Pro Forma |
| |||||||||||||||
Revenue
|
| | | $ | — | | | | | $ | 570.7 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 570.7 | | |
Operating expenses
|
| | | | — | | | | | | (146.9) | | | | | | (24.1) | | | | | | 14.6 | | | |
(1.1.1), (1.1.2), (1.2), (1.3)
|
| | | | (156.4) | | |
Depreciation
|
| | | | — | | | | | | (153.4) | | | | | | — | | | | | | (0.6) | | | |
(1.1.1)
|
| | | | (154.0) | | |
Amortization
|
| | | | — | | | | | | (12.1) | | | | | | — | | | | | | — | | | | | | | | | (12.1) | | |
Other operating losses, net
|
| | | | — | | | | | | (0.7) | | | | | | — | | | | | | — | | | | | | | | | (0.7) | | |
Operating income
|
| | | | — | | | | | | 257.6 | | | | | | (24.1) | | | | | | 14.0 | | | | | | | | | 247.5 | | |
Interest expense
|
| | | | — | | | | | | (139.2) | | | | | | — | | | | | | (0.5) | | | |
(1.1.2)
|
| | | | (139.7) | | |
Equity in net income of
affiliates |
| | | | — | | | | | | — | | | | | | 56.4 | | | | | | (56.4) | | | |
(1.4)
|
| | | | — | | |
Interest and other income
|
| | | | — | | | | | | 2.9 | | | | | | — | | | | | | — | | | | | | | | | 2.9 | | |
Loss on changes in fair value of financial instruments
|
| | | | — | | | | | | (20.4) | | | | | | — | | | | | | — | | | | | | | | | (20.4) | | |
Gain on foreign exchange
|
| | | | — | | | | | | 7.3 | | | | | | — | | | | | | — | | | | | | | | | 7.3 | | |
Income before tax
|
| | | | — | | | | | | 108.2 | | | | | | 32.3 | | | | | | (42.9) | | | | | | | | | 97.6 | | |
Tax (expense) recovery
|
| | | | — | | | | | | (47.6) | | | | | | 1.6 | | | | | | 0.1 | | | |
(1.1.2)
|
| | | | (45.9) | | |
Net income
|
| | | $ | — | | | | | $ | 60.6 | | | | | $ | 33.9 | | | | | $ | (42.8) | | | | | | | | $ | 51.7 | | |
Net income per share(1.5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | — | | | | | $ | 0.51 | | | | | $ | 1.09 | | | | | $ | 0.31 | | | | | | | | $ | 1.04 | | |
Diluted
|
| | | $ | — | | | | | $ | 0.49 | | | | | $ | 1.05 | | | | | $ | 0.31 | | | | | | | | $ | 0.91 | | |
Weighted average outstanding shares(1.5)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 50 | | | | | | 119,796,321 | | | | | | 30,932,751 | | | | | | (137,175,100) | | | | | | | | | 13,554,022 | | |
Diluted
|
| | | | 50 | | | | | | 124,648,499 | | | | | | 31,031,668 | | | | | | (140,119,334) | | | | | | | | | 15,560,883 | | |
| | |
Telesat
Corporation |
| |
Historical
Telesat |
| |
Historical
Loral |
| |
Transaction
accounting adjustments(1) |
| | | | |
Telesat
Corporation Pro Forma |
| |||||||||||||||
Revenue
|
| | | $ | — | | | | | $ | 820.5 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 820.5 | | |
Operating expenses
|
| | | | — | | | | | | (180.9) | | | | | | (15.8) | | | | | | (25.6) | | | |
(1.1.1), (1.1.2), (1.2), (1.3)
|
| | | | (222.3) | | |
Depreciation
|
| | | | — | | | | | | (216.9) | | | | | | — | | | | | | (0.8) | | | |
(1.1.1)
|
| | | | (217.7) | | |
Amortization
|
| | | | — | | | | | | (17.2) | | | | | | — | | | | | | — | | | | | | | | | (17.2) | | |
Other operating losses, net
|
| | | | — | | | | | | (0.2) | | | | | | — | | | | | | — | | | | | | | | | (0.2) | | |
Operating income
|
| | | | — | | | | | | 405.3 | | | | | | (15.8) | | | | | | (26.4) | | | | | | | | | 363.1 | | |
Interest expense
|
| | | | — | | | | | | (203.8) | | | | | | — | | | | | | (0.8) | | | |
(1.1.1), (1.1.2)
|
| | | | (204.6) | | |
Equity in net income of
affiliates |
| | | | — | | | | | | — | | | | | | 156.7 | | | | | | (156.7) | | | |
(1.4)
|
| | | | — | | |
Interest and other income
|
| | | | — | | | | | | 5.2 | | | | | | 1.4 | | | | | | — | | | | | | | | | 6.6 | | |
Loss on changes in fair value of financial instruments
|
| | | | — | | | | | | (13.1) | | | | | | — | | | | | | — | | | | | | | | | (13.1) | | |
Gain on foreign exchange
|
| | | | — | | | | | | 47.6 | | | | | | — | | | | | | — | | | | | | | | | 47.6 | | |
Income before tax
|
| | | | — | | | | | | 241.2 | | | | | | 142.3 | | | | | | (183.9) | | | | | | | | | 199.6 | | |
Tax recovery (expense)
|
| | | | — | | | | | | 4.4 | | | | | | (17.3) | | | | | | 1.0 | | | |
(1.1.2)
|
| | | | (11.9) | | |
Net income
|
| | | $ | — | | | | | $ | 245.6 | | | | | $ | 125.0 | | | | | $ | (182.9) | | | | | | | | $ | 187.7 | | |
Net income per share(1.5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | — | | | | | $ | 2.05 | | | | | $ | 4.04 | | | | | $ | 1.33 | | | | | | | | $ | 3.79 | | |
Diluted
|
| | | $ | — | | | | | $ | 1.93 | | | | | $ | 4.01 | | | | | $ | 1.29 | | | | | | | | $ | 3.06 | | |
Weighted average outstanding shares(1.5)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 50 | | | | | | 119,780,531 | | | | | | 30,932,751 | | | | | | (137,114,294) | | | | | | | | | 13,599,038 | | |
Diluted
|
| | | | 50 | | | | | | 127,532,262 | | | | | | 31,020,000 | | | | | | (141,747,158) | | | | | | | | | 16,805,154 | | |
| | |
Nine months ended
September 30, 2021 |
| |
Year ended
December 31, 2020 |
| ||||||
Operating expenses
|
| | | $ | (0.6) | | | | | $ | (0.9) | | |
Depreciation
|
| | | $ | 0.6 | | | | | $ | 0.8 | | |
Interest expense
|
| | | $ | — | | | | | $ | 0.1 | | |
| | |
Nine months ended
September 30, 2021 |
| |
Year ended
December 31, 2020 |
| ||||||
Operating expenses
|
| | | $ | (0.2) | | | | | $ | 1.3 | | |
Interest expense
|
| | | $ | 0.5 | | | | | $ | 0.7 | | |
Tax expense
|
| | | $ | (0.1) | | | | | $ | (0.4) | | |
|
Cash and cash equivalents
|
| | | $ | (25.7) | | |
|
Share capital (net of eliminations)
|
| | | $ | (1,390.7) | | |
|
Accumulated earnings (net of eliminations)
|
| | | $ | (62.1) | | |
|
Reserves (net of eliminations)
|
| | | $ | 12.3 | | |
|
Non-controlling interest
|
| | | $ | 1,095.2 | | |
|
Historical share capital of Telesat
|
| | | | | | | | | | | | | | | $ | 155.7 | | |
|
Historical share capital of Loral
|
| | | | | | | | | | | | | | | | 1,281.6 | | |
| | | | | | | | | | | | | | | | | | 1,437.3 | | |
| Transaction accounting adjustments: | | | | | | | | | | | | | | | | | | | |
|
Issuance of Class A&B shares of Telesat Corporation for existing management shareholders
|
| | | | (i) | | | | | | 4.8 | | | | | | | | |
|
Issuance of Class B variable voting shares of Telesat Corporation to some
former Loral stockholders |
| | | | (ii) | | | | | | 35.5 | | | | | | | | |
|
Issuance of Class C shares of Telesat Corporation for Red Isle
|
| | | | (i) | | | | | | 6.3 | | | | | | | | |
|
Issuance of Class B LP units of Telesat Partnership
|
| | | | (ii) | | | | | | 49.4 | | | | | | | | |
|
Issuance of Class C LP units of Telesat Partnership
|
| | | | (ii) | | | | | | 59.7 | | | | | | | | |
|
Elimination of share capital of Telesat & Loral
|
| | | | | | | | | | | | | | | | (1,437.3) | | |
|
Total transaction accounting adjustments
|
| | | | | | | | | | | | | | | | (1,281.6) | | |
|
Total pro forma share capital (net of elimination)
|
| | | | | | | | | | | | | | | $ | 155.7 | | |
|
Pro forma share capital attributable to owners
|
| | | | | | | | | | | | | | | $ | 46.6 | | |
|
Pro forma share capital attributable to non-controlling interest
|
| | | | | | | | | | | | | | | $ | 109.1 | | |
| | |
Telesat
Capitalization Pre-Conversion |
| | | | | | | |
Telesat Corporation
Capitalization Post Conversion |
| ||||||
| | |
Shares
Pre-Conversion* |
| |
Conversion
Ratio |
| |
Class A, Class B
and Class C Shares or Class A, B or C Units |
| |||||||||
Voting Participating Preferred Shares
|
| | | | 7,034,444 | | | | | | 0.4136 | | | | | | 2,909,446 | | |
Non-Voting Participating Preferred Shares
|
| | | | 38,508,717 | | | | | | 0.4136 | | | | | | 15,926,045 | | |
Common Shares
|
| | | | 74,252,460 | | | | | | 0.4136 | | | | | | 30,709,556 | | |
| | | | | 119,795,621 | | | | | | | | | | | | 49,545,047 | | |
| | |
Class A, Class B
or Class C Shares |
| |
Class A, Class B or
Class C Units |
| ||||||
Telesat Corporation
|
| | | | 13,554,022 | | | | | | — | | |
Telesat Partnership LP
|
| | | | — | | | | | | 35,991,025 | | |
| | |
Nine months ended
September 30, 2021 |
| |
Year ended
December 31, 2020 |
| ||||||
Operating expenses
|
| | | $ | (13.8) | | | | | $ | 25.3 | | |
Numerator (in millions of Canadian dollars)
|
| |
Nine months ended
September 30, 2021 |
| |
Year ended
December 31, 2020 |
| ||||||
Net income
|
| | | $ | 51.7 | | | | | $ | 187.7 | | |
Net income attributable to owners
|
| | | $ | 14.1 | | | | | $ | 51.5 | | |
Net income attributable to non-controlling interests
|
| | | $ | 37.6 | | | | | $ | 136.2 | | |
Denominator | | | | | | | | | | | | | |
Weighted average common shares outstanding – basic(i)
|
| | | | 13,554,022 | | | | | | 13,599,038 | | |
Effect of dilutive securities(i)
|
| | | | 2,006,861 | | | | | | 3,206,116 | | |
Weighted average common shares outstanding – dilutive securities
|
| | | | 15,560,883 | | | | | | 16,805,154 | | |
Earnings per shares – basic
|
| | | $ | 1.04 | | | | | $ | 3.79 | | |
Earnings per share – dilutive securities
|
| | | $ | 0.91 | | | | | $ | 3.06 | | |
| | |
Telesat
Corporation |
| |
Historical
Telesat |
| |
Historical
Loral |
| |
Transaction
Accounting Adjustments |
| | | | |
Subtotal
|
| |
Equity
consolidation adjustments(1.6) |
| |
Telesat
Corporation Pro Forma |
| |||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | — | | | | | $ | 1,558.6 | | | | | $ | 25.3 | | | | | $ | — | | | | | | | | $ | 1,583.9 | | | | | $ | (1,583.9) | | | | | $ | — | | |
Trade and other receivables
|
| | | | — | | | | | | 56.0 | | | | | | — | | | | | | — | | | | | | | | | 56.0 | | | | | | (56.0) | | | | | | — | | |
Other current financial assets
|
| | | | — | | | | | | 0.5 | | | | | | 0.4 | | | | | | — | | | | | | | | | 0.9 | | | | | | (0.9) | | | | | | — | | |
Prepaid expenses and other current assets
|
| | | | — | | | | | | 38.1 | | | | | | 2.8 | | | | | | — | | | | | | | | | 40.9 | | | | | | (40.9) | | | | | | — | | |
Total current assets
|
| | | | — | | | | | | 1,653.2 | | | | | | 28.5 | | | | | | — | | | | | | | | | 1,681.7 | | | | | | (1,681.7) | | | | | | — | | |
Satellites, property and other equipment
|
| | | | — | | | | | | 1,286.4 | | | | | | 0.2 | | | | | | (0.2) | | | |
(1.1.1)
|
| | | | 1,286.4 | | | | | | 1,286.4 | | | | | | — | | |
Deferred tax assets
|
| | | | — | | | | | | 62.5 | | | | | | 37.2 | | | | | | (2.3) | | | |
(1.4)
|
| | | | 97.4 | | | | | | (97.4) | | | | | | — | | |
Other long-term financial
assets |
| | | | — | | | | | | 16.9 | | | | | | — | | | | | | — | | | | | | | | | 16.9 | | | | | | (16.9) | | | | | | — | | |
Other long-term assets
|
| | | | — | | | | | | 13.5 | | | | | | — | | | | | | — | | | | | | | | | 13.5 | | | | | | (13.5) | | | | | | — | | |
Intangible assets
|
| | | | — | | | | | | 766.0 | | | | | | — | | | | | | — | | | | | | | | | 766.0 | | | | | | (766.0) | | | | | | — | | |
Goodwill
|
| | | | — | | | | | | 2,446.6 | | | | | | — | | | | | | — | | | | | | | | | 2,446.6 | | | | | | (2,446.6) | | | | | | — | | |
Investments
|
| | | | — | | | | | | — | | | | | | 306.3 | | | | | | (295.2) | | | |
(1.3)
|
| | | | 11.1 | | | | | | — | | | | | | 11.1 | | |
Total assets
|
| | | $ | — | | | | | $ | 6,245.1 | | | | | $ | 372.2 | | | | | $ | (297.7) | | | | | | | | $ | 6,319.6 | | | | | $ | (6,308.5) | | | | | $ | 11.1 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade and other payables
|
| | | $ | — | | | | | $ | 33.5 | | | | | $ | 12.5 | | | | | $ | — | | | | | | | | $ | 46.0 | | | | | $ | (46.0) | | | | | $ | — | | |
Other current financial
liabilities |
| | | | — | | | | | | 63.4 | | | | | | — | | | | | | — | | | | | | | | | 63.4 | | | | | | (63.4) | | | | | | — | | |
Other current liabilities
|
| | | | — | | | | | | 91.3 | | | | | | 3.1 | | | | | | (0.2) | | | |
(1.1.1)
|
| | | | 94.2 | | | | | | (94.2) | | | | | | — | | |
Total current liabilities
|
| | | | — | | | | | | 188.2 | | | | | | 15.6 | | | | | | (0.2) | | | | | | | | | 203.6 | | | | | | (203.6) | | | | | | — | | |
Long-term indebtedness
|
| | | | — | | | | | | 3,805.3 | | | | | | — | | | | | | — | | | | | | | | | 3,805.3 | | | | | | (3,805.3) | | | | | | — | | |
Deferred tax liabilities
|
| | | | — | | | | | | 290.3 | | | | | | — | | | | | | — | | | | | | | | | 290.3 | | | | | | (290.3) | | | | | | — | | |
Other long-term financial liabilities
|
| | | | — | | | | | | 25.2 | | | | | | — | | | | | | — | | | | | | | | | 25.2 | | | | | | (25.2) | | | | | | — | | |
Other long-term liabilities
|
| | | | — | | | | | | 383.6 | | | | | | 50.6 | | | | | | — | | | | | | | | | 434.2 | | | | | | 434.2 | | | | | | — | | |
Total liabilities
|
| | | | — | | | | | | 4,692.6 | | | | | | 66.2 | | | | | | (0.2) | | | | | | | | | 4,758.6 | | | | | | (4,758.6) | | | | | | — | | |
Shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Share capital
|
| | | | — | | | | | | 155.7 | | | | | | 1,281.6 | | | | | | (1,270.5) | | | |
(1.2.1), (1.3)
|
| | | | 166.8 | | | | | | (155.7) | | | | | | 11.1 | | |
Accumulated earnings
(deficit) |
| | | | — | | | | | | 1,327.1 | | | | | | (912.7) | | | | | | 910.1 | | | |
(1.1.3), (1.2.2), (1.3)
|
| | | | 1,324.5 | | | | | | (1,324.5) | | | | | | — | | |
Reserves
|
| | | | — | | | | | | 69.7 | | | | | | (62.9) | | | | | | 62.9 | | | |
(1.1.3), (1.2.3), (1.3)
|
| | | | 69.7 | | | | | | (69.7) | | | | | | — | | |
Total shareholders’ equity
|
| | | | — | | | | | | 1,552.5 | | | | | | 306.0 | | | | | | (297.5) | | | | | | | | | 1,561.0 | | | | | | (1,549.9) | | | | | | 11.1 | | |
Total liabilities and shareholders’
equity |
| | | $ | — | | | | | $ | 6,245.1 | | | | | $ | 372.2 | | | | | $ | (297.7) | | | | | | | | $ | 6,319.6 | | | | | $ | (6,308.5) | | | | | $ | 11.1 | | |
| | |
Telesat
Corporation |
| |
Historical
Telesat |
| |
Historical
Loral |
| |
Transaction
accounting adjustments(1) |
| | | | |
Equity
accounting adjustments(1.6) |
| |
Telesat
Corporation Pro Forma |
| ||||||||||||||||||
Revenue
|
| | | $ | — | | | | | $ | 570.7 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | (570.7) | | | | | $ | — | | |
Operating expenses
|
| | | | — | | | | | | (146.9) | | | | | | (24.1) | | | | | | 14.6 | | | |
(1.1.1), (1.1.2), (1.5)
|
| | | | 156.4 | | | | | | — | | |
Depreciation
|
| | | | — | | | | | | (153.4) | | | | | | — | | | | | | (0.6) | | | |
(1.1.1)
|
| | | | 154.0 | | | | | | — | | |
Amortization
|
| | | | — | | | | | | (12.1) | | | | | | — | | | | | | — | | | | | | | | | 12.1 | | | | | | — | | |
Other operating losses,
net |
| | | | — | | | | | | (0.7) | | | | | | — | | | | | | — | | | | | | | | | 0.7 | | | | | | — | | |
Operating income
|
| | | | — | | | | | | 257.6 | | | | | | (24.1) | | | | | | 14.0 | | | | | | | | | (247.5) | | | | | | — | | |
Interest expense
|
| | | | — | | | | | | (139.2) | | | | | | — | | | | | | (0.5) | | | |
(1.1.2)
|
| | | | 139.7 | | | | | | — | | |
Equity in net income of affiliates
|
| | | | — | | | | | | — | | | | | | 56.4 | | | | | | (56.4) | | | |
(1.3)
|
| | | | 0.6 | | | | | | 0.6 | | |
Interest and other income
|
| | | | — | | | | | | 2.9 | | | | | | | | | | | | — | | | | | | | | | (2.9) | | | | | | — | | |
Loss on changes in fair value of financial instruments
|
| | | | — | | | | | | (20.4) | | | | | | — | | | | | | — | | | | | | | | | 20.4 | | | | | | — | | |
Gain on foreign exchange
|
| | | | — | | | | | | 7.3 | | | | | | — | | | | | | — | | | | | | | | | (7.3) | | | | | | — | | |
Income before tax
|
| | | | — | | | | | | 108.2 | | | | | | 32.3 | | | | | | (42.9) | | | | | | | | | (97.0) | | | | | | 0.6 | | |
Tax recovery (expense)
|
| | | | — | | | | | | (47.6) | | | | | | 1.6 | | | | | | 0.1 | | | |
(1.1.2)
|
| | | | 45.9 | | | | |
|
—
|
| |
Net income
|
| | | $ | — | | | | | $ | 60.6 | | | | | $ | 33.9 | | | | | $ | (42.8) | | | | | | | | $ | (51.1) | | | | | $ | 0.6 | | |
Net income per share(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | — | | | | | $ | 0.51 | | | | | $ | 1.09 | | | | | $ | 0.29 | | | | | | | | | — | | | | | $ | 1.04 | | |
Diluted
|
| | | $ | — | | | | | $ | 0.49 | | | | | $ | 1.05 | | | | | $ | 0.28 | | | | | | | | | — | | | | | $ | 0.23 | | |
Weighted average outstanding shares
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 50 | | | | | | 119,796,321 | | | | | | 30,932,751 | | | | | | (150,156,676) | | | | | | | | | — | | | | | | 572,446 | | |
Diluted
|
| | | | 50 | | | | | | 124,648,499 | | | | | | 31,031,668 | | | | | | (153,100,910) | | | | | | | | | — | | | | | | 2,579,307 | | |
| | |
Telesat
Corporation |
| |
Historical
Telesat |
| |
Historical
Loral |
| |
Transaction
accounting adjustments(1) |
| | | | |
Equity
accounting adjustments(1.6) |
| |
Telesat
Corporation Pro Forma |
| ||||||||||||||||||
Revenue
|
| | | $ | — | | | | | $ | 820.5 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | (820.5) | | | | | $ | — | | |
Operating expenses
|
| | | | — | | | | | | (180.9) | | | | | | (15.8) | | | | | | (25.6) | | | |
(1.1.1), (1.1.2), (1.5)
|
| | | | 222.3 | | | | | | — | | |
Depreciation
|
| | | | — | | | | | | (216.9) | | | | | | — | | | | | | (0.8) | | | |
(1.1.1)
|
| | | | 217.7 | | | | | | — | | |
Amortization
|
| | | | — | | | | | | (17.2) | | | | | | — | | | | | | — | | | | | | | | | 17.2 | | | | | | — | | |
Other operating losses,
net |
| | | | — | | | | | | (0.2) | | | | | | — | | | | | | — | | | | | | | | | 0.2 | | | | | | — | | |
Operating income
|
| | |
|
—
|
| | | |
|
405.3
|
| | | |
|
(15.8)
|
| | | |
|
(26.4)
|
| | | | | | |
|
(363.1)
|
| | | | | — | | |
Interest expense
|
| | | | — | | | | | | (203.8) | | | | | | — | | | | | | (0.8) | | | |
(1.1.1), (1.1.2)
|
| | | | 204.6 | | | | | | — | | |
Equity in net income of affiliates
|
| | | | — | | | | | | — | | | | | | 156.7 | | | | | | (156.7) | | | |
(1.3)
|
| | | | 2.3 | | | | | | 2.3 | | |
Interest and other income
|
| | | | — | | | | | | 5.2 | | | | | | 1.4 | | | | | | — | | | | | | | | | (6.6) | | | | | | — | | |
Loss on changes in fair value of financial instruments
|
| | | | — | | | | | | (13.1) | | | | | | — | | | | | | — | | | | | | | | | 13.1 | | | | | | — | | |
Gain on foreign exchange
|
| | | | — | | | | | | 47.6 | | | | | | — | | | | | | — | | | | | | | | | (47.6) | | | | | | — | | |
Income before tax
|
| | | | — | | | | | | 241.2 | | | | | | 142.3 | | | | | | (183.9) | | | | | | | | | (197.3) | | | | | | 2.3 | | |
Tax recovery (expense)
|
| | | | — | | | | | | 4.4 | | | | | | (17.3) | | | | | | 1.0 | | | |
(1.1.2)
|
| | | | 11.9 | | | | | | — | | |
Net income
|
| | | $ | — | | | | | $ | 245.6 | | | | | $ | 125.0 | | | | | $ | (182.9) | | | | | | | | $ | (185.4) | | | | | $ | 2.3 | | |
Net income per share(2)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | — | | | | | $ | 2.05 | | | | | $ | 4.04 | | | | | $ | 1.22 | | | | | | | | | — | | | | | $ | 3.79 | | |
Diluted
|
| | | $ | — | | | | | $ | 1.93 | | | | | $ | 4.01 | | | | | $ | 1.18 | | | | | | | | | — | | | | | $ | 0.61 | | |
Weighted average outstanding shares
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 50 | | | | | | 119,780,531 | | | | | | 30,932,751 | | | | | | (150,095,870) | | | | | | | | | — | | | | | | 617,462 | | |
Diluted
|
| | | | 50 | | | | | | 127,532,262 | | | | | | 31,020,000 | | | | | | (154,728,734) | | | | | | | | | — | | | | | | 3,823,578 | | |
| | |
Nine months ended
September 30, 2021 |
| |
Year ended
December 31, 2020 |
| ||||||
Operating expenses
|
| | | $ | (0.6) | | | | | $ | (0.9) | | |
Depreciation
|
| | | $ | 0.6 | | | | | $ | 0.8 | | |
Interest expense
|
| | | $ | — | | | | | $ | 0.1 | | |
| | |
Nine months ended
September 30, 2021 |
| |
Year ended
December 31, 2020 |
| ||||||
Operating expenses
|
| | | $ | (0.2) | | | | | $ | 1.3 | | |
Interest expense
|
| | | $ | 0.5 | | | | | $ | 0.7 | | |
Tax expense
|
| | | $ | (0.1) | | | | | $ | (0.4) | | |
|
Historical share capital of Telesat
|
| | | | | | | | | | | | | | | $ | 155.7 | | |
|
Historical share capital of Loral
|
| | | | | | | | | | | | | | | | 1,281.6 | | |
| | | | | | | | | | | | | | | | | | 1,437.3 | | |
| Transaction accounting adjustments: | | | | | | | | | | | | | | | |||||
|
Issuance of Class A&B shares of Telesat Corporation for existing management shareholders
|
| | | | (i) | | | | | | 4.8 | | | | |||||
|
Issuance of Class C shares of Telesat Corporation for Red Isle
|
| | | | (ii) | | | | | | 6.3 | | | | |||||
|
Elimination of share capital of Telesat & Loral
|
| | | | (iii) | | | | | | (1,437.3) | | | | |||||
|
Total transaction accounting adjustments
|
| | | | | | | | | | | | | | | | (1,426.2) | | |
|
Total pro forma share capital (net of elimination)
|
| | | | | | | | | | | | | | | $ | 11.1 | | |
| | |
Telesat
Capitalization Pre-Conversion |
| | | | | | | |
Telesat Corporation /
Partnership Capitalization Post Conversion |
| ||||||
| | |
Shares
Pre-Conversion* |
| |
Conversion
Ratio |
| |
Class A, Class B
and Class C Shares or Class A, B or C Units |
| |||||||||
Voting Participating Preferred Shares
|
| | | | 7,034,444 | | | | | | 0.4136 | | | | | | 2,909,446 | | |
Non-Voting Participating Preferred Shares
|
| | | | 38,508,717 | | | | | | 0.4136 | | | | | | 15,926,045 | | |
Common Shares
|
| | | | 74,252,460 | | | | | | 0.4136 | | | | | | 30,709,556 | | |
| | | | | 119,795,621 | | | | | | | | | | | | 49,545,047 | | |
| | |
Class A, Class B
or Class C Shares |
| |
Class A, Class B
or Class C Units |
| ||||||
Telesat Corporation
|
| | | | 572,446 | | | | | | — | | |
Telesat Partnership
|
| | | | — | | | | | | 48,972,601 | | |
| | |
Nine months ended
September 30, 2021 |
| |
Year ended
December 31, 2020 |
| ||||||
Operating expenses
|
| | | $ | (13.8) | | | | | $ | 25.3 | | |
| | |
Nine months ended
September 30, 2021 |
| |
Year ended
December 31, 2020 |
| ||||||
Numerator (in millions of Canadian dollars) | | | | | | | | | | | | | |
Net income
|
| | | $ | 0.6 | | | | | $ | 2.3 | | |
Denominator | | | | | | | | | | | | | |
Weighted average common shares outstanding – basic(i)
|
| | | | 572,446 | | | | | | 617,462 | | |
Effect of dilutive securities(i)
|
| | | | 2,006,861 | | | | | | 3,206,116 | | |
Weighted average common shares outstanding – dilutive securities
|
| | | | 2,579,307 | | | | | | 3,823,578 | | |
Earnings per shares – basic
|
| | | $ | 1.04 | | | | | $ | 3.79 | | |
Earnings per share – dilutive securities
|
| | | $ | 0.23 | | | | | $ | 0.61 | | |
| | |
Telesat
Partnership |
| |
Historical
Telesat |
| |
Historical
Loral |
| |
Inducement
payment adjustment |
| |
Closing
payment mechanism adjustment |
| |
Subtotal
|
| |
Transaction
accounting adjustments |
| | | | |
Telesat
Partnership Pro Forma |
| ||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | — | | | | | $ | 1,558.6 | | | | | $ | 25.3 | | | | | $ | (12.7) | | | | | $ | (13.0) | | | | | $ | 1,558.2 | | | | | $ | (19.8) | | | |
(1.2.1), (1.3)
|
| | | $ | 1,538.4 | | |
Trade and other receivables
|
| | | | — | | | | | | 56.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | 56.0 | | | | | | — | | | | | | | | | 56.0 | | |
Other current financial assets
|
| | | | — | | | | | | 0.5 | | | | | | 0.4 | | | | | | — | | | | | | — | | | | | | 0.9 | | | | | | — | | | | | | | | | 0.9 | | |
Prepaid expenses and other current
assets |
| | | | — | | | | | | 38.1 | | | | | | 2.8 | | | | | | — | | | | | | — | | | | | | 40.9 | | | | | | — | | | | | | | | | 40.9 | | |
Total current assets
|
| | | | — | | | | | | 1,653.2 | | | | | | 28.5 | | | | | | (12.7) | | | | | | (13.0) | | | | | | 1,656.0 | | | | | | (19.8) | | | | | | | | | 1,636.2 | | |
Satellites, property and other equipment
|
| | | | — | | | | | | 1,286.4 | | | | | | 0.2 | | | | | | — | | | | | | — | | | | | | 1,286.6 | | | | | | (0.2) | | | |
(1.1.1)
|
| | | | 1,286.4 | | |
Deferred tax assets
|
| | | | — | | | | | | 62.5 | | | | | | 37.2 | | | | | | — | | | | | | — | | | | | | 99.7 | | | | | | (2.3) | | | |
(1.5)
|
| | | | 97.4 | | |
Other long-term financial assets
|
| | | | — | | | | | | 16.9 | | | | | | — | | | | | | — | | | | | | — | | | | | | 16.9 | | | | | | — | | | | | | | | | 16.9 | | |
Other long-term assets
|
| | | | — | | | | | | 13.5 | | | | | | — | | | | | | — | | | | | | — | | | | | | 13.5 | | | | | | — | | | | | | | | | 13.5 | | |
Intangible assets
|
| | | | — | | | | | | 766.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | 766.0 | | | | | | — | | | | | | | | | 766.0 | | |
Goodwill
|
| | | | — | | | | | | 2,446.6 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,446.6 | | | | | | — | | | | | | | | | 2,446.6 | | |
Investments
|
| | | | — | | | | | | — | | | | | | 306.3 | | | | | | — | | | | | | — | | | | | | 306.3 | | | | | | (306.3) | | | |
(1.4)
|
| | | | — | | |
Total Assets
|
| | | $ | — | | | | | $ | 6,245.1 | | | | | $ | 372.2 | | | | | $ | (12.7) | | | | | $ | (13.0) | | | | | $ | 6,591.6 | | | | | $ | (328.6) | | | | | | | | $ | 6,263.0 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade and other payables
|
| | | $ | — | | | | | $ | 33.5 | | | | | $ | 12.5 | | | | | $ | — | | | | | $ | — | | | | | $ | 46.0 | | | | | $ | (8.8) | | | |
(1.3)
|
| | | $ | 37.2 | | |
Other current financial liabilities
|
| | | | — | | | | | | 63.4 | | | | | | — | | | | | | — | | | | | | — | | | | | | 63.4 | | | | | | — | | | | | | | | | 63.4 | | |
Other current liabilities
|
| | | | — | | | | | | 91.3 | | | | | | 3.1 | | | | | | — | | | | | | — | | | | | | 94.4 | | | | | | (0.2) | | | |
(1.1.1)
|
| | | | 94.2 | | |
Total current liabilities
|
| | |
|
—
|
| | | |
|
188.2
|
| | | |
|
15.6
|
| | | | | — | | | | | | — | | | | |
|
203.8
|
| | | |
|
(9.0)
|
| | | | | | |
|
194.8
|
| |
Long-term indebtedness
|
| | | | — | | | | | | 3,805.3 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,805.3 | | | | | | — | | | | | | | | | 3,805.3 | | |
Deferred tax liabilities
|
| | | | — | | | | | | 290.3 | | | | | | — | | | | | | — | | | | | | — | | | | | | 290.3 | | | | | | — | | | | | | | | | 290.3 | | |
Other long-term financial
liabilities |
| | | | — | | | | | | 25.2 | | | | | | — | | | | | | — | | | | | | — | | | | | | 25.2 | | | | | | — | | | | | | | | | 25.2 | | |
Other long-term liabilities
|
| | | | — | | | | | | 383.6 | | | | | | 50.6 | | | | | | — | | | | | | — | | | | | | 434.2 | | | | | | — | | | | | | | | | 434.2 | | |
Partnership units liability
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,486.3 | | | |
(1.2.5)
|
| | | | 1,486.3 | | |
Total liabilities
|
| | |
|
—
|
| | | |
|
4,692.6
|
| | | |
|
66.2
|
| | | | | — | | | | | | — | | | | |
|
4,758.8
|
| | | |
|
1,477.3
|
| | | | | | |
|
6,236.1
|
| |
Shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Share capital/Partnership
Interest |
| | | | — | | | | | | 155.7 | | | | | | 1,281.6 | | | | | | — | | | | | | — | | | | | | 1,437.3 | | | | | | (1,426.2) | | | |
(1.2.2)
|
| | | | 11.1 | | |
Accumulated earnings (deficit)
|
| | | | — | | | | | | 1,327.1 | | | | | | (912.7) | | | | | | (12.7) | | | | | | (13.0) | | | | | | 388.7 | | | | | | (373.8) | | | |
(1.1.3), (1.2.3), (1.3)
|
| | | | 14.9 | | |
Reserves
|
| | | | — | | | | | | 69.7 | | | | | | (62.9) | | | | | | — | | | | | | — | | | | | | 6.8 | | | | | | (5.9) | | | |
(1.1.3), (1.2.4)
|
| | | | 0.9 | | |
Total shareholders’ equity
|
| | | | — | | | | | | 1,552.5 | | | | | | 306.0 | | | | | | (12.7) | | | | | | (13.0) | | | | | | 1,832.8 | | | | | | (1,805.9) | | | | | | | | | 26.9 | | |
Total liabilities and shareholders’ equity
|
| | | $ | — | | | | | $ | 6,245.1 | | | | | $ | 372.2 | | | | | $ | (12.7) | | | | | $ | (13.0) | | | | | $ | 6,591.6 | | | | | $ | (328.6) | | | | | | | | $ | 6,263.0 | | |
| | |
Telesat
Partnership |
| |
Historical
Telesat |
| |
Historical
Loral |
| |
Transaction
accounting adjustments(1) |
| | | | |
Telesat
Partnership Pro Forma |
| |||||||||||||||
Revenue
|
| | | $ | — | | | | | $ | 570.7 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 570.7 | | |
Operating expenses
|
| | | | — | | | | | | (146.9) | | | | | | (24.1) | | | | | | 14.6 | | | |
(1.1.1), (1.1.2), (1.3)
|
| | | | (156.4) | | |
Depreciation
|
| | | | — | | | | | | (153.4) | | | | | | — | | | | | | (0.6) | | | |
(1.1.1)
|
| | | | (154.0) | | |
Amortization
|
| | | | — | | | | | | (12.1) | | | | | | — | | | | | | — | | | | | | | | | (12.1) | | |
Other operating losses, net
|
| | | | — | | | | | | (0.7) | | | | | | — | | | | | | — | | | | | | | | | (0.7) | | |
Operating income
|
| | | | — | | | | | | 257.6 | | | | | | (24.1) | | | | | | 14.0 | | | | | | | | | 247.5 | | |
Interest expense
|
| | | | — | | | | | | (139.2) | | | | | | — | | | | | | (0.5) | | | |
(1.1.2)
|
| | | | (139.7) | | |
Equity in net income of
affiliates |
| | | | — | | | | | | — | | | | | | 56.4 | | | | | | (56.4) | | | |
(1.4)
|
| | | | — | | |
Interest and other income
|
| | | | — | | | | | | 2.9 | | | | | | — | | | | | | — | | | | | | | | | 2.9 | | |
Loss on changes in fair value of financial instruments
|
| | | | — | | | | | | (20.4) | | | | | | — | | | | | | — | | | | | | | | | (20.4) | | |
Loss on changes in fair value of LP Units
|
| | | | — | | | | | | — | | | | | | — | | | | | | (51.1) | | | |
(1.2.5)
|
| | | | (51.1) | | |
Gain on foreign exchange
|
| | | | — | | | | | | 7.3 | | | | | | — | | | | | | — | | | | | | | | | 7.3 | | |
Income before tax
|
| | | | — | | | | | | 108.2 | | | | | | 32.3 | | | | | | (94.0) | | | | | | | | | 46.5 | | |
Tax (expense) recovery
|
| | | | — | | | | | | (47.6) | | | | | | 1.6 | | | | | | 0.1 | | | |
(1.1.2)
|
| | | | (45.9) | | |
Net income
|
| | | $ | — | | | | | $ | 60.6 | | | | | $ | 33.9 | | | | | $ | (93.9) | | | | | | | | $ | 0.6 | | |
| | |
Telesat
Partnership |
| |
Historical
Telesat |
| |
Historical
Loral |
| |
Transaction
accounting adjustments(1) |
| | | | |
Telesat
Partnership Pro Forma |
| |||||||||||||||
Revenue
|
| | | $ | — | | | | | $ | 820.5 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 820.5 | | |
Operating expenses
|
| | | | — | | | | | | (180.9) | | | | | | (15.8) | | | | | | (25.6) | | | |
(1.1.1), (1.1.2), (1.3)
|
| | | | (222.3) | | |
Depreciation
|
| | | | — | | | | | | (216.9) | | | | | | — | | | | | | (0.8) | | | |
(1.1.1)
|
| | | | (217.7) | | |
Amortization
|
| | | | — | | | | | | (17.2) | | | | | | — | | | | | | — | | | | | | | | | (17.2) | | |
Other operating losses, net
|
| | | | — | | | | | | (0.2) | | | | | | — | | | | | | — | | | | | | | | | (0.2) | | |
Operating income
|
| | |
|
—
|
| | | |
|
405.3
|
| | | |
|
(15.8)
|
| | | |
|
(26.4)
|
| | |
(1.1.1)
|
| | |
|
363.1
|
| |
Interest expense
|
| | | | — | | | | | | (203.8) | | | | | | — | | | | | | (0.8) | | | |
(1.1.2)
|
| | | | (204.6) | | |
Equity in net income of
affiliates |
| | | | — | | | | | | — | | | | | | 156.7 | | | | | | (156.7) | | | |
(1.4)
|
| | | | — | | |
Interest and other income
|
| | | | — | | | | | | 5.2 | | | | | | 1.4 | | | | | | — | | | | | | | | | 6.6 | | |
Loss on changes in fair value of financial instruments
|
| | | | — | | | | | | (13.1) | | | | | | — | | | | | | — | | | | | | | | | (13.1) | | |
Loss on changes in fair value of LP Units
|
| | | | — | | | | | | — | | | | | | — | | | | | | (185.4) | | | |
(1.2.5)
|
| | | | (185.4) | | |
Gain on foreign exchange
|
| | | | — | | | | | | 47.6 | | | | | | — | | | | | | — | | | | | | | | | 47.6 | | |
Income before tax
|
| | | | — | | | | | | 241.2 | | | | | | 142.3 | | | | | | (369.3) | | | | | | | | | 14.2 | | |
Tax recovery (expense)
|
| | | | — | | | | | | 4.4 | | | | | | (17.3) | | | | | | 1.0 | | | |
(1.1.2)
|
| | | | (11.9) | | |
Net income
|
| | | $ | — | | | | | $ | 245.6 | | | | | $ | 125.0 | | | | | $ | (368.3) | | | | | | | | $ | 2.3 | | |
| | |
Nine months ended
September 30, 2021 |
| |
Year ended
December 31, 2020 |
| ||||||
Operating expenses
|
| | | $ | (0.6) | | | | | $ | (0.9) | | |
Depreciation
|
| | | $ | 0.6 | | | | | $ | 0.8 | | |
Interest expense
|
| | | $ | — | | | | | $ | 0.1 | | |
| | |
Nine months ended
September 30, 2021 |
| |
Year ended
December 31, 2020 |
| ||||||
Operating expenses
|
| | | $ | (0.2) | | | | | $ | 1.3 | | |
Interest expense
|
| | | $ | 0.5 | | | | | $ | 0.7 | | |
Tax expense
|
| | | $ | (0.1) | | | | | $ | (0.4) | | |
|
Cash and cash equivalents
|
| | | $ | (25.7) | | |
|
Partnership Interest (net of eliminations)
|
| | | $ | (1,426.2) | | |
|
Accumulated earnings (net of eliminations)
|
| | | $ | (399.5) | | |
|
Reserves (net of eliminations)
|
| | | $ | (5.9) | | |
|
Partnership units liability
|
| | | $ | 1,486.3 | | |
|
Historical share capital of Telesat
|
| | | | | | | | | | | | $ | 155.7 | | |
|
Historical share capital of Loral
|
| | | | | | | | | | | | | 1,281.6 | | |
| | | | | | | | | | | | | | | 1,437.3 | | |
| Transaction accounting adjustments: | | | | | | | | | | | | | | | | |
|
Issuance of GP units of Telesat Partnership
|
| |
(i),(ii)
|
| | | | 11.1 | | | | | | | | |
|
Elimination of share capital of Telesat & Loral
|
| | | | | | | (1,437.3) | | | | | | | | |
|
Total transaction accounting adjustments
|
| | | | | | | | | | | | | (1,426.2) | | |
|
Total pro forma partnership interest (net of elimination)
|
| | | | | | | | | | | | $ | 11.1 | | |
| | |
General
Partnership Units |
| |
Class A, Class B or
Class C Units |
| ||||||
Telesat Partnership
|
| | | | 572,446 | | | | | | 48,972,600 | | |
| | |
Nine months ended
September 30, 2021 |
| |
Year ended
December 31, 2020 |
| ||||||
Operating expenses
|
| | | $ | (13.8) | | | | | $ | 25.3 | | |
| 1962 | | | Telstar 1, built by Telesat Canada’s predecessors at AT&T and Bell Laboratories, successfully delivered the first live intercontinental satellite TV transmission between Europe and the United States; | |
| 1972 | | | Telesat Canada launched Anik A1, the world’s first commercial domestic communications satellite in geostationary orbit; | |
| 1978 | | | Telesat Canada launched the first commercial Ku-band satellite on which was offered the first DTH television service, laying the groundwork for the global DTH industry; | |
| 1981 | | | Telesat Canada co-located two satellites in a single orbital slot for the first time, now a widely-used industry practice; | |
|
1996
|
| | Telesat Canada was the first to provide internet access to Internet Service Providers (“ISPs”) over satellite; | |
| 2004 | | | Telesat Canada launched Anik F2, the first satellite to successfully commercialize DTH consumer Ka-band broadband services; | |
| 2009 | | | Telesat Canada launched Telstar 11N, the first satellite to provide Ku-band coverage of the Atlantic Ocean from the Arctic Circle to the Equator; | |
| 2013 | | | Telesat Canada launched Anik G1, the first commercial satellite with substantial X-band coverage of the Pacific Ocean, including Hawaii, to serve the Canadian and other governments; | |
| 2015 | | | Telesat Canada launched Telstar 12 VANTAGE, the first satellite combining high-throughput satellite (“HTS”) spot beams and conventional broad beams, giving customers the ability to maximize throughput, lower cost per bit and meet growing demand for bandwidth intensive applications; | |
| 2018 | | | Telesat Canada launched its Phase 1 LEO satellite, the start of Telesat Lightspeed, leveraging Telesat Canada’s innovative, patent-pending design and international priority spectrum rights among commercial Ka-band LEO systems (including SpaceX, Amazon and OneWeb), and provided the first high-speed broadband connectivity from LEO; | |
| 2019 | | | Telesat Canada conducted the world’s first 5G backhaul demonstration over LEO satellite in partnership with Vodafone and the University of Surrey; | |
| 2020 | | | Telesat Canada and the Government of Canada finalize $600 million agreement to bridge Canada’s digital divide with Telesat’s Low Earth Orbit satellite constellation; and | |
|
2021
|
| | Telesat Lightspeed to receive $1.44 billion investment from the Government of Canada, $400 million investment from the Government of Québec and has entered into a $109 million contract with the Government of Ontario towards universal broadband. | |
Region
|
| |
Revenues for
twelve months ended September 30, 2021 (C$ millions) |
| |||
North America
|
| | | $ | 633.1 | | |
Latin America and Caribbean
|
| | | $ | 56.7 | | |
Asia and Australia
|
| | | $ | 39.6 | | |
Europe, Middle East and Africa
|
| | | $ | 43.2 | | |
| | | |
Orbital Location
Regions Covered |
| |
Launch Date
|
| |
Manufacturer’s
End-of-Service Life |
| |
End-of-Orbital
Maneuver Life (1) |
| |
Model
|
|
| Anik F1 | | |
109.2° WL Caribbean
|
| |
Nov 2000
|
| |
2016
|
| |
2022(2)
|
| | BSS702 (Boeing) | |
| Anik F1R | | | 107.3° WL North America | | |
Sep 2005
|
| |
2020
|
| |
2022(3)
|
| | E3000 (EADS Astrium) | |
| Anik F2 | | | 111.1° WL Canada, Continental United States | | |
Jul 2004
|
| |
2019
|
| |
2026(4)
|
| | BSS702 (Boeing) | |
| Anik F3 | | | 118.7° WL Canada, Continental United States | | |
Apr 2007
|
| |
2022
|
| |
2026
|
| | E3000 (EADS Astrium) | |
| Anik G1 | | | 107.3° WL Canada South America | | |
Apr 2013
|
| |
2028
|
| |
2039
|
| | SS/L 1300 | |
| Nimiq 1(5) | | | Not Applicable(6) | | |
May 1999
|
| |
2011
|
| |
2021(2)
|
| | A2100 AX (Lockheed Martin) | |
| Nimiq 2(5) | | | Not Applicable(6) | | |
Dec 2002
|
| |
2015
|
| |
2024(2)
|
| | A2100 AX (Lockheed Martin) | |
| Nimiq 4 | | | 82° WL Canada | | |
Sep 2008
|
| |
2023
|
| |
2027
|
| | E3000 (EADS Astrium) | |
| | | |
Orbital Location
Regions Covered |
| |
Launch Date
|
| |
Manufacturer’s
End-of-Service Life |
| |
End-of-Orbital
Maneuver Life (1) |
| |
Model
|
|
| Nimiq 5 | | | 72.7° WL Canada, Continental United States | | |
Sep 2009
|
| |
2024
|
| |
2036
|
| | SS/L 1300 | |
| Nimiq 6 | | | 91.1° WL Canada | | |
May 2012
|
| |
2027
|
| |
2046
|
| | SS/L 1300 | |
| Telstar 11N | | | 37.55° WL North and Central America, Europe, Africa and the maritime Atlantic Ocean region | | |
Feb 2009
|
| |
2024
|
| |
2026
|
| | SS/L 1300 | |
| Telstar 12 VANTAGE | | | 15° WL Eastern United States, SE Canada, Europe, Russia, Middle East, South Africa, portions of South and Central America | | |
Nov 2015
|
| |
2030
|
| |
2032
|
| | E3000 (Airbus) | |
| Telstar 14R/Estrela do Sul 2 | | | 63° WL Brazil and portions of Latin America, North America, Atlantic Ocean | | |
May 2011
|
| |
2026
|
| |
2025
|
| | SS/L 1300 | |
| Telestar 18 VANTAGE(7) | | |
138° EL India, South East Asia, Indonesia/Malaysia, China, Australia/
New Zealand, North Pacific and Hawaii
|
| |
Sep 2018
|
| |
2033
|
| |
2040
|
| | SS/L 1300 | |
| Telstar 19 VANTAGE | | | 63° WL Brazil and portions of Latin America, North America, Atlantic Ocean, Caribbean | | |
Jul 2018
|
| |
2033
|
| |
2037
|
| | SS/L 1300 | |
| LEO 1 | | | NGSO polar | | |
Jan 2018
|
| |
2021
|
| |
N/A(8)
|
| | SSTL | |
Earth stations
|
| |
Owned or leased property
|
|
Victoria, British Columbia, Canada | | | Leased | |
Calgary, Alberta, Canada | | | Owned | |
Hague, Saskatchewan, Canada | | | Leased | |
Winnipeg, Manitoba, Canada | | | Owned | |
Montreal, Quebec, Canada | | | Owned | |
Mount Jackson, Virginia, U.S. | | | Owned | |
Middleton, Virginia, U.S. | | | Leased | |
Belo Horizonte, Brazil | | | Owned | |
Iqaluit, Nunavut, Canada | | | Leased | |
Fort McMurray, Alberta, Canada | | | Leased | |
Saskatoon, Saskatchewan, Canada | | | Leased | |
St. John’s, Newfoundland, Canada | | | Leased | |
Kapolei, Hawaii, U.S. | | | Third party site | |
Aflenz, Austria | | | Third party site | |
Perth, Australia | | | Third party site | |
Jakarta, Indonesia | | | Third party site | |
| | |
September 30,
2021 |
| |
September 30,
2020 |
| |
December 31,
2020 |
| |
December 31,
2019 |
| |
December 31,
2018 |
| |||||||||||||||
US$ to CAD$ spot rate
|
| | | | 1.2680 | | | | | | 1.3319 | | | | | | 1.2725 | | | | | | 1.2990 | | | | | | 1.3637 | | |
US$ to CAD$ average rate for the year ended
|
| | | | — | | | | | | — | | | | | | 1.3425 | | | | | | 1.3289 | | | | | | 1.2912 | | |
US$ to CAD$ average rate for the nine months ended.
|
| | | | 1.2542 | | | | | | 1.3495 | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Nine Months ended September 30,
|
| |
Year ended December 31,
|
| |
% Increase (Decrease)
|
| |||||||||||||||||||||||||||||||||||||||
(in millions of Canadian
dollars except percentages) |
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2021 vs.
2020 |
| |
2020 vs.
2019 |
| |
2019 vs.
2018 |
| ||||||||||||||||||||||||
Broadcast
|
| | | $ | 293.2 | | | | | $ | 309.8 | | | | | $ | 411.4 | | | | | $ | 444.5 | | | | | $ | 455.1 | | | | | | (5.3)% | | | | | | (7.4)% | | | | | | (2.3)% | | |
Enterprise
|
| | | | 267.7 | | | | | | 293.6 | | | | | | 389.7 | | | | | | 444.7 | | | | | | 428.2 | | | | | | (8.8)% | | | | | | (12.4)% | | | | | | 3.9% | | |
Consulting and other
|
| | | | 9.8 | | | | | | 15.2 | | | | | | 19.4 | | | | | | 21.7 | | | | | | 19.6 | | | | | | (35.3)% | | | | | | (10.7)% | | | | | | 10.7% | | |
Revenue
|
| | | $ | 570.7 | | | | | $ | 618.6 | | | | | $ | 820.5 | | | | | $ | 910.9 | | | | | $ | 902.9 | | | | | | (7.7)% | | | | | | (9.9)% | | | | | | 0.9% | | |
| | |
Nine Months ended September 30,
|
| |
Year ended December 31,
|
| |
% Increase (Decrease)
|
| |||||||||||||||||||||||||||||||||||||||
(in millions of Canadian
dollars except percentages) |
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2021 vs.
2020 |
| |
2020 vs.
2019 |
| |
2019 vs.
2018 |
| ||||||||||||||||||||||||
Depreciation
|
| | | $ | 153.4 | | | | | $ | 166.8 | | | | | $ | 216.9 | | | | | $ | 243.0 | | | | | $ | 224.9 | | | | | | (8.0)% | | | | | | (10.7)% | | | | | | 8.1% | | |
Amortization
|
| | | | 12.1 | | | | | | 12.9 | | | | | | 17.2 | | | | | | 23.3 | | | | | | 24.3 | | | | | | (6.6)% | | | | | | (26.1)% | | | | | | (4.2)% | | |
Operating expenses
|
| | | | 146.9 | | | | | | 133.7 | | | | | | 180.9 | | | | | | 165.5 | | | | | | 185.8 | | | | | | 9.9% | | | | | | 9.3% | | | | | | (10.9)% | | |
Other operating losses
(gains), net |
| | | | 0.8 | | | | | | 0.2 | | | | | | 0.2 | | | | | | 0.9 | | | | | | (0.7) | | | | | | 215.9% | | | | | | (75.1)% | | | | | | (216.0)% | | |
Total expenses
|
| | | $ | 313.2 | | | | | $ | 313.7 | | | | | $ | 415.2 | | | | | $ | 432.6 | | | | | $ | 434.2 | | | | | | (0.2)% | | | | | | (4.0)% | | | | | | (0.4)% | | |
| | |
Nine Months ended September 30,
|
| |
Year ended December 31,
|
| |
% Increase (Decrease)
|
| |||||||||||||||||||||||||||||||||||||||
(in millions of Canadian
dollars except percentages) |
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2021 vs.
2020 |
| |
2020 vs.
2019 |
| |
2019 vs.
2018 |
| ||||||||||||||||||||||||
Compensation and employee benefits
|
| | | $ | 88.7 | | | | | $ | 64.0 | | | | | $ | 89.9 | | | | | $ | 87.9 | | | | | $ | 98.4 | | | | | | 38.6% | | | | | | 2.2% | | | | | | (10.6)% | | |
Other operating expenses
|
| | | | 36.0 | | | | | | 47.0 | | | | | | 57.6 | | | | | | 40.3 | | | | | | 45.6 | | | | | | (23.4)% | | | | | | 42.9% | | | | | | (11.5)% | | |
Cost of sales
|
| | | | 22.2 | | | | | | 22.7 | | | | | | 33.4 | | | | | | 37.2 | | | | | | 41.9 | | | | | | (2.2)% | | | | | | (10.4)% | | | | | | (11.1)% | | |
Operating expenses
|
| | | $ | 146.9 | | | | | $ | 133.7 | | | | | $ | 180.9 | | | | | $ | 165.5 | | | | | $ | 185.8 | | | | | | 9.9% | | | | | | 9.3% | | | | | | (10.9)% | | |
| | |
Nine Months ended September 30,
|
| |
Year ended December 31,
|
| |
% Increase (Decrease)
|
| |||||||||||||||||||||||||||||||||||||||
(in millions of Canadian
dollars except percentages) |
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2021 vs.
2020 |
| |
2020 vs.
2019 |
| |
2019 vs.
2018 |
| ||||||||||||||||||||||||
Debt service costs
|
| | | $ | 121.0 | | | | | $ | 134.8 | | | | | $ | 175.9 | | | | | $ | 226.6 | | | | | $ | 223.9 | | | | | | (10.3)% | | | | | | (22.4)% | | | | | | 1.2% | | |
Interest expense on significant financing component
|
| | | | 14.3 | | | | | | 17.0 | | | | | | 22.4 | | | | | | 25.5 | | | | | | 27.4 | | | | | | (15.7)% | | | | | | (12.0)% | | | | | | (6.9)% | | |
Interest expense on
satellite performance incentive payments |
| | | | 1.7 | | | | | | 2.3 | | | | | | 2.9 | | | | | | 3.5 | | | | | | 4.1 | | | | | | (24.0)% | | | | | | (17.1)% | | | | | | (14.5)% | | |
Interest expense on employee benefit plans
|
| | | | 1.0 | | | | | | 0.8 | | | | | | 1.2 | | | | | | 1.3 | | | | | | 1.5 | | | | | | 24.3% | | | | | | (12.7)% | | | | | | (10.0)% | | |
Interest expense on
leases |
| | | | 1.1 | | | | | | 1.0 | | | | | | 1.3 | | | | | | 1.3 | | | | | | — | | | | | | 12.4% | | | | | | 4.7% | | | | | | (100.0)% | | |
Capitalized interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (19.1) | | | | | | — | | | | | | — | | | | | | (100.0)% | | |
Interest expense
|
| | | $ | 139.2 | | | | | $ | 155.9 | | | | | $ | 203.8 | | | | | $ | 258.3 | | | | | $ | 237.8 | | | | | | (10.8)% | | | | | | (21.2)% | | | | | | (8.6)% | | |
| | |
Nine Months ended September 30,
|
| |
Years ended December 31,
|
| ||||||||||||||||||||||||
(in millions of Canadian dollars)
|
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||
Interest and other income
|
| | | $ | 2.8 | | | | | $ | 6.7 | | | | | $ | 5.2 | | | | | $ | 20.0 | | | | | $ | 16.5 | | |
| | |
Nine Months ended September 30,
|
| |
Years ended December 31,
|
| ||||||||||||||||||||||||
(in millions of Canadian dollars)
|
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||
(Loss) gains on changes in fair value of financial
instruments |
| | | $ | (20.4) | | | | | $ | (38.9) | | | | | $ | (13.1) | | | | | $ | (49.7) | | | | | $ | (18.2) | | |
Gain (loss) on foreign exchange
|
| | | $ | 7.3 | | | | | $ | (99.1) | | | | | $ | 47.6 | | | | | $ | 163.8 | | | | | $ | (259.1) | | |
| | |
Nine Months ended September 30,
|
| |
Years ended December 31,
|
| ||||||||||||||||||||||||
(in millions of Canadian dollars)
|
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||
Current tax expense
|
| | | $ | 64.9 | | | | | $ | 51.6 | | | | | $ | 77.1 | | | | | $ | 71.2 | | | | | $ | 98.8 | | |
Deferred tax recovery
|
| | | | (17.3) | | | | | | (24.5) | | | | | | (81.5) | | | | | | (56.1) | | | | | | (37.8) | | |
Tax expense (recovery)
|
| | | $ | 47.6 | | | | | $ | 27.1 | | | | | $ | (4.4) | | | | | $ | 15.1 | | | | | $ | 61.1 | | |
(in millions of Canadian dollars)
|
| |
Remaining
2021 |
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
Thereafter
|
| ||||||||||||||||||
Backlog
|
| | | $ | 168.2 | | | | | $ | 551.3 | | | | | $ | 448.2 | | | | | $ | 310.0 | | | | | $ | 217.7 | | | | | $ | 557.0 | | |
(in millions of Canadian dollars)
|
| |
Nine Months
ended September 30, 2021 |
| |
Year ended
December 31, 2020 |
| |
Year ended
December 31, 2019 |
| |||||||||
Satellites, property and other equipment
|
| | | $ | 120.0 | | | | | $ | 83.1 | | | | | $ | — | | |
Intangible assets
|
| | | | — | | | | | | — | | | | | | 23.4 | | |
Total capital expenditures
|
| | | | 120.0 | | | | | | 83.1 | | | | | | 23.4 | | |
Operating expenses
|
| | | | 22.5 | | | | | | 21.1 | | | | | | 7.1 | | |
Total costs incurred
|
| | | $ | 142.6 | | | | | $ | 104.2 | | | | | $ | 30.5 | | |
(in millions of Canadian dollars)
|
| |
Nine Months
ended September 30, 2021 |
| |
Year ended
December 31, 2020 |
| |
Year ended
December 31, 2019 |
| |||||||||
Satellites, property and other equipment
|
| | | $ | 6.9 | | | | | $ | 8.0 | | | | | $ | — | | |
Intangible assets
|
| | | | — | | | | | | — | | | | | | 3.3 | | |
Total claims against capital expenditures
|
| | | | 6.9 | | | | | | 8.0 | | | | | | 3.3 | | |
Operating expenses
|
| | | | 3.5 | | | | | | 4.0 | | | | | | 1.7 | | |
Total claims
|
| | | $ | 10.4 | | | | | $ | 12.0 | | | | | $ | 5.0 | | |
(in millions of Canadian dollars)
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
Thereafter
|
| |
Total
|
| |||||||||||||||||||||
Satellite performance incentive payments, including interest
|
| | | $ | 9.3 | | | | | $ | 8.4 | | | | | $ | 7.5 | | | | | $ | 5.9 | | | | | $ | 3.1 | | | | | $ | 13.1 | | | | | $ | 47.3 | | |
Senior Secured Credit Facilities, Senior Secured Notes and Senior Notes(1)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,184.8 | | | | | | 3,184.8 | | |
Interest on long-term indebtedness
|
| | | | 129.6 | | | | | | 129.4 | | | | | | 129.4 | | | | | | 129.5 | | | | | | 128.4 | | | | | | 182.3 | | | | | | 828.5 | | |
Interest rate swaps
|
| | | | 12.7 | | | | | | 5.6 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 18.3 | | |
Lease liabilities
|
| | | | 3.4 | | | | | | 3.0 | | | | | | 3.0 | | | | | | 2.8 | | | | | | 2.5 | | | | | | 27.8 | | | | | | 42.6 | | |
Property lease commitments(2)
|
| | | | 1.1 | | | | | | 1.1 | | | | | | 1.1 | | | | | | 1.1 | | | | | | 1.0 | | | | | | 12.5 | | | | | | 17.8 | | |
Commitments for capital expenditures(2)
|
| | | | 155.3 | | | | | | 35.1 | | | | | | 86.8 | | | | | | — | | | | | | — | | | | | | — | | | | | | 277.2 | | |
Other operating commitments(2)
|
| | | | 32.7 | | | | | | 6.5 | | | | | | 5.0 | | | | | | 4.2 | | | | | | 3.8 | | | | | | 11.4 | | | | | | 63.7 | | |
Contributions to employment benefit plans
|
| | | | 4.0 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4.0 | | |
Decommissioning liabilities
|
| | | | 2.4 | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.1 | | | | | | 2.4 | | | | | | 4.9 | | |
Customer and other deposits
|
| | | | 1.3 | | | | | | — | | | | | | 0.1 | | | | | | — | | | | | | 0.1 | | | | | | 0.1 | | | | | | 1.6 | | |
Other financial liabilities, including interest
|
| | | | 2.1 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2.1 | | |
| | | | $ | 353.9 | | | | | $ | 189.0 | | | | | $ | 232.8 | | | | | $ | 143.5 | | | | | $ | 139.0 | | | | | $ | 3,434.5 | | | | | $ | 4,492.7 | | |
| | |
Nine months ended
September 30, |
| |
Years ended
December 31, |
| ||||||||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||
Revenue
|
| | | | 53.1% | | | | | | 53.8% | | | | | | 52.9% | | | | | | 52.7% | | | | | | 50.4% | | |
Operating expenses
|
| | | | 33.8% | | | | | | 44.2% | | | | | | 45.6% | | | | | | 39.2% | | | | | | 29.7% | | |
Interest on Telesat’s indebtedness
|
| | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | |
(In millions of Canadian dollars)
|
| | | | | | |
Revenue
|
| | | $ | 15.1 | | |
Operating expenses
|
| | | $ | 2.5 | | |
Interest on Telesat’s indebtedness
|
| | | $ | 2.5 | | |
(In millions of Canadian dollars)
|
| | | | | | |
Revenue
|
| | | $ | 21.7 | | |
Operating expenses
|
| | | $ | 4.1 | | |
Interest on Telesat’s indebtedness
|
| | | $ | 8.8 | | |
(CAD$ millions)
|
| |
Q4
2021 |
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
Thereafter
|
| ||||||||||||||||||
U.S. TLB Facility
|
| | | $ | 1,969.0 | | | | | $ | 1,969.0 | | | | | $ | 1,969.0 | | | | | $ | 1,969.0 | | | | | $ | 1,969.0 | | | | | $ | 1,969.0 | | |
Senior Notes
|
| | | | 697.4 | | | | | | 697.4 | | | | | | 697.4 | | | | | | 697.4 | | | | | | 697.4 | | | | | | 697.4 | | |
Senior Secured Notes
|
| | | | 507.2 | | | | | | 507.2 | | | | | | 507.2 | | | | | | 507.2 | | | | | | 507.2 | | | | | | 507.2 | | |
2026 Senior Secured Notes
|
| | | | 634.0 | | | | | | 634.0 | | | | | | 634.0 | | | | | | 634.0 | | | | | | 634.0 | | | | | | 634.0 | | |
U.S. dollar-denominated debt balances
|
| | | $ | 3,807.6 | | | | | $ | 3,807.6 | | | | | $ | 3,807.6 | | | | | $ | 3,807.6 | | | | | $ | 3,807.6 | | | | | $ | 3,807.6 | | |
(CAD$ millions)
|
| |
Q4
2021 |
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
Thereafter
|
| ||||||||||||||||||
U.S. TLB Facility(1)
|
| | | $ | 1,969.0 | | | | | $ | 1,969.0 | | | | | $ | 1,969.0 | | | | | $ | 1,969.0 | | | | | $ | 1,969.0 | | | | | $ | 1,969.0 | | |
Interest rate derivative variable to fixed(2)
|
| | | | (570.6) | | | | | | (570.6) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Debt exposed to variable interest rate after interest rate derivatives
|
| | | $ | 1,398.4 | | | | | $ | 1,398.4 | | | | | $ | 1,969.0 | | | | | $ | 1,969.0 | | | | | $ | 1,969.0 | | | | | $ | 1,969.0 | | |
(in millions of Canadian dollars)
|
| |
Twelve months
ended September 30, 2021 |
| |||
Net income
|
| | | $ | 315.6 | | |
Impact of unrestricted subsidiaries
|
| | | | 444.1 | | |
Consolidated income for Covenant Purposes
|
| | | | 759.7 | | |
Plus: | | | | | | | |
Income taxes (Note 1)
|
| | | | (405.8) | | |
Interest expense (Note 1)
|
| | | | 162.2 | | |
Depreciation and amortization expense (Note 1)
|
| | | | 218.7 | | |
Non-cash share-based compensation and pension expense
|
| | | | 52.5 | | |
Debt issue costs
|
| | | | 6.8 | | |
Other
|
| | | | 35.8 | | |
Increased (decreased) by: | | | | | | | |
Non-cash losses on changes in fair value of financial instruments and swap obligations and cash gains on the value of swap obligations
|
| | | | (5.4) | | |
Non-cash losses resulting from changes in foreign exchange rates
|
| | | | (161.9) | | |
Consolidated EBITDA for Covenant Purposes
|
| | | $ | 662.7 | | |
(in $ millions)
|
| |
As at
September 30, 2021 |
| |||
U.S. dollar-denominated debt | | | | | | | |
Term Loan B U.S. Facility (US$)
|
| | | $ | 1,552.8 | | |
6.5% Senior Notes (US$)
|
| | | | 550.0 | | |
4.875% Senior Secured Notes (US$)
|
| | | | 400.0 | | |
5.625% Senior Secured Notes (US$)
|
| | | | 500.0 | | |
| | | | | 3,002.8 | | |
Foreign exchange adjustment
|
| | | | 804.8 | | |
Subtotal (CAD$)
|
| | | | 3,807.6 | | |
Deferred financing costs and prepayment options (CAD$)
|
| | | | (2.3) | | |
Indebtedness | | | | $ | 3,805.3 | | |
(in CAD $ millions)
|
| | | | | | |
Indebtedness
|
| | | $ | 3,805.3 | | |
Adjustments for covenant purposes: | | | | | | | |
Deferred financing costs and prepayment options (CAD$)
|
| | | | 2.3 | | |
Add: lease liabilities
|
| | | | 33.4 | | |
Consolidated Total Debt
|
| | | | 3,841.0 | | |
Less: cash and cash equivalents (max. $100 million US$)
|
| | | | (126.8) | | |
Consolidated Total Debt for Covenant Purposes
|
| | | $ | 3,714.2 | | |
Consolidated Total Debt
|
| | | $ | 3,841.0 | | |
Less: unsecured debt (6.5% Senior Notes)
|
| | | | (697.4) | | |
Consolidated Total Secured Debt
|
| | | | 3,143.6 | | |
Less: cash and cash equivalents (max. $100 million US$)
|
| | | | (126.8) | | |
Consolidated Total Secured Debt for Covenant Purposes
|
| | | $ | 3,016.8 | | |
Balance Sheet Data as of September 30, 2021
(in millions of Canadian dollars) |
| |
Issuer and
Restricted Subsidiaries |
| |
Unrestricted
Subsidiaries |
| |
Consolidating
Adjustments |
| |
Consolidated
|
| ||||||||||||
Current assets
|
| | | $ | 1,122.4 | | | | | $ | 549.7 | | | | | $ | (18.9) | | | | | $ | 1,653.2 | | |
Total assets
|
| | | $ | 7,560.5 | | | | | $ | 2,613.4 | | | | | $ | (3,928.8) | | | | | $ | 6,245.1 | | |
Current liabilities
|
| | | $ | 171.2 | | | | | $ | 36.0 | | | | | $ | (18.9) | | | | | $ | 188.2 | | |
Long-term debt, including current portion
|
| | | $ | 3,805.3 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,805.3 | | |
Total liabilities
|
| | | $ | 4,674.8 | | | | | $ | 457.3 | | | | | $ | (439.5) | | | | | $ | 4,692.6 | | |
Shareholder’s equity
|
| | | $ | 2,885.6 | | | | | $ | 2,156.2 | | | | | $ | (3,489.3) | | | | | $ | 1,552.5 | | |
Statement of Income Data for the nine months ended
September 30, 2021 (in millions of Canadian dollars) |
| |
Issuer and
Restricted Subsidiaries |
| |
Unrestricted
Subsidiaries |
| |
Consolidating
Adjustments |
| |
Consolidated
|
| ||||||||||||
Revenue
|
| | | $ | 597.6 | | | | | $ | 5.7 | | | | | $ | (32.6) | | | | | $ | 570.7 | | |
Operating expenses
|
| | | | (158.6) | | | | | | (20.9) | | | | | | 32.6 | | | | | | (146.9) | | |
Depreciation
|
| | | | (153.0) | | | | | | (0.8) | | | | | | 0.4 | | | | | | (153.4) | | |
Amortization
|
| | | | (12.1) | | | | | | (0.2) | | | | | | 0.2 | | | | | | (12.1) | | |
Other operating losses, net
|
| | | | (0.8) | | | | | | — | | | | | | — | | | | | | (0.8) | | |
Operating income (loss)
|
| | | | 273.2 | | | | | | (16.2) | | | | | | 0.6 | | | | | | 257.6 | | |
Loss from equity investments
|
| | | | (62.9) | | | | | | — | | | | | | 62.9 | | | | | | — | | |
Interest expense
|
| | | | (139.1) | | | | | | — | | | | | | — | | | | | | (139.2) | | |
Interest and other income
|
| | | | 1.9 | | | | | | 0.8 | | | | | | — | | | | | | 2.8 | | |
Loss on changes in fair value of financial instruments
|
| | | | (20.4) | | | | | | — | | | | | | — | | | | | | (20.4) | | |
Gain (loss) on foreign exchange
|
| | | | 5.2 | | | | | | (7.8) | | | | | | 10.0 | | | | | | 7.3 | | |
Income (loss) before tax
|
| | | | 57.9 | | | | | | (23.2) | | | | | | 73.5 | | | | | | 108.2 | | |
Tax expense
|
| | | | (29.7) | | | | | | (39.7) | | | | | | 21.9 | | | | | | (47.6) | | |
Net income (loss)
|
| | | $ | 28.2 | | | | | $ | (62.9) | | | | | $ | 95.3 | | | | | $ | 60.6 | | |
Balance Sheet Data as of December 31, 2020
(In millions of Canadian dollars) |
| |
Issuer and
Restricted Subsidiaries |
| |
Unrestricted
Subsidiaries |
| |
Consolidating
Adjustments |
| |
Consolidated
|
| ||||||||||||
Current assets
|
| | | $ | 228.0 | | | | | $ | 690.2 | | | | | $ | (24.6) | | | | | $ | 893.6 | | |
Total assets
|
| | | $ | 7,692.0 | | | | | $ | 2,560.7 | | | | | $ | (4,671.5) | | | | | $ | 5,581.2 | | |
Current liabilities
|
| | | $ | 143.9 | | | | | $ | 42.9 | | | | | $ | (24.6) | | | | | $ | 162.1 | | |
Long-term debt, including current portion
|
| | | $ | 3,187.2 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,187.2 | | |
Total liabilities
|
| | | $ | 4,100.6 | | | | | $ | 425.2 | | | | | $ | (404.5) | | | | | $ | 4,121.3 | | |
Shareholder’s equity
|
| | | $ | 3,591.4 | | | | | $ | 2,135.5 | | | | | $ | (4,267.0) | | | | | $ | 1,459.9 | | |
Statement of Income Data for the year ended
December 31, 2020 (In millions of Canadian dollars) |
| |
Issuer and
Restricted Subsidiaries |
| |
Unrestricted
Subsidiaries |
| |
Consolidating
Adjustments |
| |
Consolidated
|
| ||||||||||||
Revenue
|
| | | $ | 844.7 | | | | | $ | 0.4 | | | | | $ | (24.7) | | | | | $ | 820.5 | | |
Operating expenses
|
| | | | (179.5) | | | | | | (26.1) | | | | | | 24.7 | | | | | | (180.9) | | |
Depreciation
|
| | | | (216.6) | | | | | | (0.3) | | | | | | — | | | | | | (216.9) | | |
Amortization
|
| | | | (17.2) | | | | | | — | | | | | | — | | | | | | (17.2) | | |
Other operating gains (losses), net
|
| | | | 1,730.9 | | | | | | — | | | | | | (1,731.1) | | | | | | (0.2) | | |
Operating income (loss)
|
| | | | 2,162.4 | | | | | | (26.0) | | | | | | (1,731.1) | | | | | | 405.3 | | |
Income from equity investments
|
| | | | (405.1) | | | | | | — | | | | | | 405.1 | | | | | | — | | |
Interest expense
|
| | | | (203.7) | | | | | | — | | | | | | — | | | | | | (203.8) | | |
Interest and other income
|
| | | | 1.5 | | | | | | 3.7 | | | | | | — | | | | | | 5.2 | | |
Loss on changes in fair value of financial instruments
|
| | | | (13.1) | | | | | | — | | | | | | — | | | | | | (13.1) | | |
Gain on foreign exchange
|
| | | | 47.6 | | | | | | — | | | | | | — | | | | | | 47.6 | | |
Income (loss) before tax
|
| | | | 1,589.6 | | | | | | (22.3) | | | | | | (1,326.1) | | | | | | 241.2 | | |
Tax (expense) recovery
|
| | | | (70.3) | | | | | | (382.8) | | | | | | 457.4 | | | | | | 4.4 | | |
Net income (loss)
|
| | | $ | 1,519.3 | | | | | $ | (405.1) | | | | | $ | (868.6) | | | | | $ | 245.6 | | |
Name
|
| |
Province/State and
Country of Residence |
| |
Age
|
| |
Position
|
| |
Telesat Corporation
Shares (on fully exchanged and converted basis)(4) |
| |
Principal Occupation for
the Last 5 Years |
|
Directors | | | | | | | | | | | | | | | | |
Ms. Mélanie Bernier(2) | | |
Montreal,
Quebec, Canada |
| |
46
|
| |
Director
|
| |
—
|
| |
Senior Vice President and Chief Legal Officer, PSP Investments
|
|
Mr. Michael Boychuk(2) | | |
Baie-D-Urfe, Quebec, Canada
|
| |
66
|
| |
Director
|
| |
—
|
| |
Director of Corus Entertainment, Laurentian Bank and GDI ITF
|
|
Mr. Jason A. Caloras(1) | | |
Brooklyn, NY, USA
|
| |
36
|
| |
Director
|
| |
—
|
| |
Principal, MHR Fund Management
|
|
Ms. Jane Craighead
|
| |
Elizabethtown, Ontario, Canada
|
| |
62
|
| |
Director
|
| |
—
|
| |
Retired; Previously Senior Vice President Global Human Resources, Scotiabank
|
|
Mr. Richard Fadden | | |
Ottawa, Ontario, Canada
|
| |
70
|
| |
Director
|
| |
—
|
| |
Corporate Director/Advisor
|
|
Mr. Daniel Goldberg | | |
Ottawa, Ontario, Canada
|
| |
56
|
| |
Director
|
| |
103,403 (0.21%)
|
| |
Chief Executive Officer, Telesat Canada
|
|
Mr. Henry Intven | | |
Victoria, British Columbia, Canada
|
| |
73
|
| |
Director
|
| |
—
|
| |
Principal, Haro Strait Consulting Inc
|
|
Dr. Mark H. Rachesky(1) | | |
New York, NY, USA
|
| |
62
|
| |
Director
|
| |
—
|
| |
Founder and Chief Investment Officer, MHR Fund Management LLC
|
|
Mr. Guthrie Stewart(2) | | |
Westmount, Quebec, Canada
|
| |
66
|
| |
Director
|
| |
—
|
| |
Executive, PSP Investments
|
|
Mr. Michael B. Targoff(1) | | |
New York, NY, USA
|
| |
77
|
| |
Director
|
| |
—
|
| |
Vice Chairman, Loral Space & Communications Inc.
|
|
Name
|
| |
Province/State and
Country of Residence |
| |
Age
|
| |
Position
|
| |
Telesat Corporation
Shares (on fully exchanged and converted basis)(4) |
| |
Principal Occupation for
the Last 5 Years |
|
Senior Management | | | | | | | | | | | | | | | | |
Mr. Daniel Goldberg(3) | | |
Ottawa, Ontario, Canada
|
| |
56
|
| |
President and Chief Executive Officer
|
| |
(see above)
|
| |
Chief Executive Officer, Telesat Canada
|
|
Ms. Michèle Beck | | |
Ottawa, Ontario, Canada
|
| |
56
|
| |
Senior Vice President, Canadian Sales
|
| |
—
|
| |
Senior Vice President, Canadian Sales, Telesat Canada
|
|
Mr. Andrew Browne | | |
Ottawa, Ontario, Canada
|
| |
66
|
| |
Chief Financial Officer
|
| |
—
|
| |
Chief Financial Officer, Telesat Canada; Chief Financial Officer of SES S.A.
|
|
Mr. Christopher S. DiFrancesco | | |
North Gower, Ontario, Canada
|
| |
58
|
| |
Vice President, General Counsel and Secretary
|
| |
—
|
| |
Vice President, General Counsel and Secretary, Telesat Canada
|
|
Mr. Glenn Katz | | |
Philadelphia, PA, USA
|
| |
59
|
| |
Chief Commercial Officer
|
| |
—
|
| |
Senior Vice President and General Manager, Comcast Business Enterprise Solutions
|
|
Mr. John Flaherty | | |
Ottawa, Ontario, Canada
|
| |
56
|
| |
Vice President, Business Planning and Marketing
|
| |
—
|
| |
Vice President, Business Planning and Marketing, Telesat Canada
|
|
Mr. Erwin Hudson
|
| |
Asheville, NC, USA
|
| |
65
|
| |
Vice President, Telesat Lightspeed System Development
|
| |
—
|
| |
Vice President, Telesat Lightspeed System Development, Telesat Canada
|
|
Mr. Michael C. Schwartz | | |
Ottawa, Ontario, Canada
|
| |
57
|
| |
Senior Vice President, Corporate & Business Development
|
| |
—
|
| |
Senior Vice President, Corporate & Business Development, Telesat Canada
|
|
Mr. David N. Wendling | | |
Ottawa, Ontario, Canada
|
| |
59
|
| |
Chief Technical Officer
|
| |
—
|
| |
Chief Technical Officer, Telesat Canada
|
|
(in thousands of Canadian dollars)
|
| |
Fiscal 2020
|
| |
Fiscal 2019
|
| ||||||
Audit fees(1)
|
| | | $ | 923 | | | | | $ | 911 | | |
Audit-related fees(2)
|
| | | | 229 | | | | | | 326 | | |
Tax fees(3)
|
| | | | 130 | | | | | | 181 | | |
All other fees(4)
|
| | | | 4 | | | | | | 4 | | |
Total fees paid
|
| | | $ | 1,286 | | | | | $ | 1,422 | | |
Adjusted EBITDA Performance
|
| |
Performance Bonus
|
|
<95% of target amount | | | Nil | |
95% of target amount | | | Bonus equal to 50% of Target Bonus | |
97.5% of target amount | | | Bonus equal to 75% of Target Bonus | |
100% of target amount | | | Bonus equal to 100% of Target Bonus | |
102.5% of target amount | | | Bonus equal to 150% of Target Bonus | |
≥105% of target amount | | | Bonus equal to 200% of Target Bonus | |
Event
|
| |
Provisions
|
|
Termination for cause | | | Immediate forfeiture of all vested and unvested options. | |
Resignation, retirement and termination other than for cause | | | Forfeiture of all unvested options and expiry of vested options the earlier of the original expiry date and 90 days after resignation, retirement or termination. | |
Death or long-term disability | | | Forfeiture of all unvested options and expiry of vested options the earlier of the original expiry date and 12 months after date of death or long-term disability. | |
Death | | | Continued vesting of unvested options for a period of 12 months and expiry of vested options, including those that vest during such 12 month period, the earlier of the original expiry date and 12 months after date of death or long-term disability. | |
Name and Principal Position
|
| |
Fiscal
Year |
| |
Salary(1)
($) |
| |
Share-based
Awards(2) ($) |
| |
Non-equity Incentive
Plan Compensation ($) |
| |
Long-
term incentive plans ($) |
| |
Pension
Value(5) ($) |
| |
All Other
Compensation(6) ($) |
| |
Total
Compensation ($) |
| ||||||||||||||||||||||||||||||
|
Option-
Based Awards(3) ($) |
| |
Annual
incentive plan(4) ($) |
| ||||||||||||||||||||||||||||||||||||||||||||||||||
Daniel S. Goldberg,
President and Chief Executive Officer(7) |
| | | | 2020 | | | | | | 1,300,500 | | | | | | — | | | | | | — | | | | | | 1,300,500 | | | | | | — | | | | | | 955,000 | | | | | | 885,445(8) | | | | | | 4,441,445 | | |
| | | 2019 | | | | | | 1,275,000 | | | | | | — | | | | | | — | | | | | | 2,550,000 | | | | | | — | | | | | | 646,000 | | | | | | 1,998,365 | | | | | | 6,469,365 | | | ||
| | | 2018 | | | | | | 1,032,265 | | | | | | 5,188,000 | | | | | | — | | | | | | 1,662,750 | | | | | | — | | | | | | 708,000 | | | | | | 8,583,139 | | | | | | 17,174,154 | | | ||
Andrew Browne,
Chief Financial Officer |
| | | | 2020 | | | | | | 709,830 | | | | | | — | | | | | | — | | | | | | 599,101 | | | | | | — | | | | | | — | | | | | | 150,561(9) | | | | | | 1,459,492 | | |
| | | 2019 | | | | | | 23,646(10) | | | | | | — | | | | | | — | | | | | | 82,611 | | | | | | — | | | | | | — | | | | | | 1,017 | | | | | | 107,274 | | | ||
| | | 2018 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | ||
Michael Schwartz,
Senior Vice President |
| | | | 2020 | | | | | | 669,134 | | | | | | — | | | | | | — | | | | | | 585,225 | | | | | | — | | | | | | 488,000 | | | | | | 387,163(11) | | | | | | 2,129,522 | | |
| | | 2019 | | | | | | 656,014 | | | | | | — | | | | | | — | | | | | | 1,312,028 | | | | | | — | | | | | | 417,000 | | | | | | 382,063 | | | | | | 2,767,105 | | | ||
| | | 2018 | | | | | | 643,151 | | | | | | — | | | | | | — | | | | | | 855,519 | | | | | | — | | | | | | 448,000 | | | | | | 371,496 | | | | | | 2,318,166 | | | ||
Erwin Hudson,
Vice President, Telesat Lightspeed System Development |
| | | | 2020 | | | | | | 467,095 | | | | | | — | | | | | | — | | | | | | 227,505 | | | | | | — | | | | | | 139,000 | | | | | | 118,701(12) | | | | | | 952,301 | | |
| | | 2019 | | | | | | 440,745 | | | | | | — | | | | | | — | | | | | | 397,953 | | | | | | — | | | | | | 127,000 | | | | | | 70,623 | | | | | | 1,036,321 | | | ||
| | | 2018 | | | | | | 432,126 | | | | | | — | | | | | | — | | | | | | 259,489 | | | | | | — | | | | | | 130,000 | | | | | | 235,299 | | | | | | 1,056,914 | | | ||
David Wendling,
Chief Technology Officer |
| | | | 2020 | | | | | | 300,000 | | | | | | — | | | | | | — | | | | | | 168,071 | | | | | | — | | | | | | 138,000 | | | | | | 136,871(13) | | | | | | 742,942 | | |
| | | 2019 | | | | | | 249,481 | | | | | | — | | | | | | — | | | | | | 224,533 | | | | | | — | | | | | | 119,000 | | | | | | 136,830 | | | | | | 729,844 | | | ||
| | | 2018 | | | | | | 244,589 | | | | | | — | | | | | | — | | | | | | 146,409 | | | | | | — | | | | | | 130,000 | | | | | | 308,642 | | | | | | 829,640 | | |
Name and Principal Position
|
| |
Event
|
| |
Severance(1)
($) |
| |
Options
($) |
| |
Other
Payments ($) |
| |
Total
($) |
| ||||||||||||
Daniel S. Goldberg
President and Chief Executive Officer |
| | Termination without cause or resignation with good reason | | | | | 13,476,750 | | | | | | —(2) | | | | | | 437,559 | | | | | | 13,914,309(3) | | |
Andrew Browne
Chief Financial Officer |
| | Termination without cause or resignation with good reason | | | | | 4,934,694 | | | | | | — | | | | | | 241,533 | | | | | | 5,176,227 | | |
Michael Schwartz
Senior Vice President, Corporate and Business Development |
| | Termination without cause or resignation with good reason | | | | | 5,999,247 | | | | | | — | | | | | | 331,246 | | | | | | 6,330,493 | | |
Erwin Hudson
Vice President, Telesat Lightspeed System Development |
| | Termination without cause or resignation with good reason | | | | | 848,966 | | | | | | — | | | | | | 98,477 | | | | | | 947,443 | | |
David Wendling
Chief Technology Officer |
| | Termination without cause or resignation with good reason | | | | | 824,533 | | | | | | —(2) | | | | | | 37,704 | | | | | | 862,237(3) | | |
| | |
Option-based Awards
|
| |
Shared-based Awards
|
| |||||||||||||||||||||||||||||||||
Name and Principal Position
|
| |
Number of
Common Shares underlying unexercised options(1) |
| |
Option
exercise price ($) |
| |
Option
expiration date |
| |
Value of
unexercised in-the-money options ($) |
| |
Number of
Shares that have not vested(1) |
| |
Market or
payout value of share-based awards that have not vested ($) |
| | | | | | | |||||||||||||||
Daniel S. Goldberg
President and Chief Executive Officer |
| | | | 1,077,520 | | | | | | —(1) | | | |
4-Apr-23
|
| | | | —(2) | | | | | | 66,666 | | | | | | —(2) | | | | | | — | | |
Andrew Browne
Chief Financial Officer |
| | | | — | | | | | | — | | | |
—
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Michael Schwartz
Senior Vice President |
| | | | — | | | | | | — | | | |
—
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Erwin Hudson
Vice President, Telesat Lightspeed System Development |
| | | | — | | | | | | — | | | |
—
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
David Wendling
Chief Technology Officer |
| | | | 173,972 | | | | | | —(1) | | | |
30-Aug-23
|
| | | | —(2) | | | | | | — | | | | | | — | | | | | | — | | |
Name and Principal Position
|
| |
Option-Based Awards –
Value Expected to be Vested During the Year ($) |
| |
Share-Based Awards –
Value Expected to be Vested During the Year ($) |
| |
Non-equity incentive plan
compensation – Value earned during the year ($) |
| |||||||||
Daniel S. Goldberg,
President and Chief Executive Officer |
| | | | — | | | | | | —(1) | | | | |
|
—
|
| |
Andrew Browne,
Chief Financial Officer |
| | | | — | | | | | | — | | | | | | — | | |
Michael Schwartz,
Senior Vice President |
| | | | — | | | | | | — | | | | | | — | | |
Erwin Hudson,
Vice President, Telesat Lightspeed System Development |
| | | | — | | | | | | — | | | | | | — | | |
David Wendling,
Chief Technology Officer |
| | | | —(1) | | | | | | — | | | | | | — | | |
Name and
Principal Position |
| |
Number of
years of credited service(1) (#) |
| |
Annual benefits
payable ($) |
| |
Closing
present value of defined benefit obligation ($) |
| |
Compensatory
change ($) |
| |
Non-
compensatory change(2) ($) |
| |
Opening
present value defined of benefit obligation(3) ($) |
| ||||||||||||||||||||||||
|
At year
end(1) |
| |
At age 65
|
| ||||||||||||||||||||||||||||||||||||||
Daniel S. Goldberg,
President and Chief Executive Officer |
| | | | 14.3 | | | | | | 633,000 | | | | | | 1,046,000 | | | | | | 12,713,000 | | | | | | 955,000 | | | | | | 2,363,000 | | | | | | 16,031,000 | | |
Andrew Browne,
Chief Financial Officer |
| | | | 1.1 | | | | | | 24,000 | | | | | | 24,000 | | | | | | 26,000 | | | | | | 0 | | | | | | 477,000 | | | | | | 503,000 | | |
Michael Schwartz,
Senior Vice President, Corporate and Business Development |
| | | | 8.9 | | | | | | 198,000 | | | | | | 389,000 | | | | | | 3,388,000 | | | | | | 488,000 | | | | | | 502,000 | | | | | | 4,378,000 | | |
Erwin Hudson,
Telesat Lightspeed System Development |
| | | | 3.7 | | | | | | 42,000 | | | | | | 42,000 | | | | | | 539,000 | | | | | | 139,000 | | | | | | 244,000 | | | | | | 922,000 | | |
David Wendling,
Chief Technology Officer |
| | | | 28.3 | | | | | | 190,000 | | | | | | 236,000 | | | | | | 3,754,000 | | | | | | 138,000 | | | | | | 1,318,000 | | | | | | 5,210,000 | | |
Type of Fee
|
| |
Position
|
| |
Amount(1)
|
|
Board Retainer | | | Board Member | | | $75,000 | |
| | | | | |
$100,000 Telesat
Corporation DSU Award(2) |
|
Committee Retainer
|
| |
Audit Committee Chair
|
| |
$25,000
|
|
| Audit Committee Member | | | $10,000 | | ||
| Compensation Committee Chair | | | $15,000 | | ||
| Compensation Committee Member | | | $7,500 | | ||
|
Nominating Committee Chair and Members
|
| | Nil | | ||
| Lead Director | | | N/A | | ||
Meeting Fees | | | Board and Committee Meetings | | | Nil | |
| | |
Telesat Corporation Shares (on fully exchanged
and converted basis)(1) |
| |||||||||
Name of beneficial owner
|
| |
Number
|
| |
%(2)
|
| ||||||
PSP Investments
|
| | | | 18,211,203(3) | | | | | | 36.8% | | |
MHR
|
| | | | 18,050,092 | | | | | | 36.4% | | |
Class
|
| |
Voting For Directors
|
| |
All Other Votes
|
| |
Second Tabulation
Votes |
|
Class A Shares
|
| | 1 vote per share | | | 1 vote per share | | | 1 vote per share | |
Class B Variable Voting Shares
|
| | 1 vote per share; provided that any voting power of a single holder in excess of one-third of the outstanding voting power of the Telesat Corporation Shares and Telesat Partnership Units (via the Special Voting Shares) and the Golden Share Canadian Votes (described below under “— Golden Share Mechanic”) will effectively be transferred to the Golden Share. | | | 1 vote per share | | |||
Class C Fully Voting Common Shares
|
| | 1 vote per share | | | 1 vote per share | | | 1 vote per share | |
Class C Limited Voting Common Shares
|
| | No votes | | | 1 vote per share | | | 1 vote per share | |
Class A Units (voted via the Class A Special Voting Share)
|
| | 1 vote per unit | | | 1 vote per unit | | | 1 vote per unit | |
Class
|
| |
Voting For Directors
|
| |
All Other Votes
|
| |
Second Tabulation
Votes |
|
Class B Units (voted via the Class B Special Voting Share)
|
| | 1 vote per unit; provided that any voting power of a single holder in excess of one-third of the outstanding voting power of the Telesat Corporation Shares and Telesat Partnership Units (via the Special Voting Shares) and the Golden Share Canadian Votes (described below under “— Golden Share Mechanic”) will effectively be transferred to the Golden Share. | | | 1 vote per unit | | |||
Class C Units (voted via the Class C Special Voting Share)
|
| | Limited votes to ensure compliance with restrictions applicable to PSP Investments pursuant to its constating legislation. | | | 1 vote per unit | | |||
Golden Share
|
| |
A number of votes equal to the sum of:
|
| |
No votes
|
| |||
| A number of votes such that the votes cast by the holders of Class A Shares and Class A Units, Class C Shares and Class C Units, and the Golden Share represent a simple majority of the votes cast; and | | | | | |||||
| The number of votes transferred from the Class B Variable Voting Shares and Class B Units, if applicable. | | | | |
Date of Issue
|
| |
Security(1),(2),(3)
|
| |
Number of Securities
Issued or Sold |
| |
Issue Price/Exercise
Price per Security |
| |||||||||
N/A | | | | | Nil | | | | | | Nil | | | | | $ | N/A | | |
| | | | | | | | | | | | | | | | | | | |
Date of Issue
|
| |
Security
|
| |
Number of Securities
Issued or Sold |
| |
Issue Price/Exercise
Price per Security(1) |
|
November 12, 2020
|
| |
GP Units
|
| |
50
|
| |
$10.00
|
|
November 12, 2020
|
| |
Class X Units(1)
|
| |
10
|
| |
$10.00
|
|
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | |
| | | | | F-24 | | | |
| | | | | F-26 | | | |
| | | | | F-27 | | | |
| | | | | F-28 | | | |
| | | | | F-30 | | | |
| | | | | F-31 | | | |
| | | | | F-32 | | |
| | | | | F-76 | | | |
| | | | | F-77 | | |
| | | | | F-79 | | | |
| | | | | F-79 | | | |
| | | | | F-80 | | | |
| | | | | F-81 | | |
| | | | | F-83 | | | |
| | | | | F-84 | | |
| | | | | F-86 | | | |
| | | | | F-86 | | | |
| | | | | F-87 | | | |
| | | | | F-88 | | |
| | | | | F-90 | | | |
| | | | | F-91 | | | |
| | | | | F-92 | | | |
| | | | | F-93 | | | |
| | | | | F-94 | | | |
| | | | | F-115 | | |
| | | | | F-130 | | | |
| | | | | F-147 | | | |
| | | | | F-163 | | |
| | | | | F-165 | | | |
| | | | | F-166 | | | |
| | | | | F-167 | | | |
| | | | | F-168 | | | |
| | | | | F-169 | | | |
| | | | | F-170 | | | |
| | | | | F-196 | | |
| | | | | F-197 | | | |
| | | | | F-198 | | | |
| | | | | F-199 | | | |
| | | | | F-200 | | | |
| | | | | F-201 | | | |
| | | | | F-202 | | | |
| | | | | F-224 | | |
| | | | | | | | |
Three months
|
| |
Nine months
|
| ||||||||||||||||||
(in thousands of Canadian dollars)
|
| |
Notes
|
| |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| |||||||||||||||
Revenue
|
| | | | 5 | | | | | $ | 192,335 | | | | | $ | 202,053 | | | | | $ | 570,715 | | | | | $ | 618,560 | | |
Operating expenses
|
| | | | 6 | | | | | | (49,691) | | | | | | (42,185) | | | | | | (146,921) | | | | | | (133,712) | | |
Depreciation
|
| | | | | | | | | | (50,663) | | | | | | (55,597) | | | | | | (153,402) | | | | | | (166,819) | | |
Amortization
|
| | | | | | | | | | (3,988) | | | | | | (4,289) | | | | | | (12,051) | | | | | | (12,906) | | |
Other operating losses, net
|
| | | | | | | | | | (30) | | | | | | (34) | | | | | | (777) | | | | | | (246) | | |
Operating income
|
| | | | | | | | | | 87,963 | | | | | | 99,948 | | | | | | 257,564 | | | | | | 304,877 | | |
Interest expense
|
| | | | 7 | | | | | | (50,691) | | | | | | (50,116) | | | | | | (139,153) | | | | | | (155,917) | | |
Interest and other income
|
| | | | | | | | | | 1,013 | | | | | | 875 | | | | | | 2,786 | | | | | | 6,667 | | |
Gain (loss) on changes in fair value of financial instruments
|
| | | | | | | | | | 971 | | | | | | 5,715 | | | | | | (20,357) | | | | | | (38,884) | | |
(Loss) gain on foreign exchange
|
| | | | | | | | | | (68,411) | | | | | | 66,334 | | | | | | 7,343 | | | | | | (99,088) | | |
(Loss) income before tax
|
| | | | | | | | | | (29,155) | | | | | | 122,756 | | | | | | 108,183 | | | | | | 17,655 | | |
Tax expense
|
| | | | 8 | | | | | | (12,764) | | | | | | (15,736) | | | | | | (47,591) | | | | | | (27,100) | | |
Net (loss) income
|
| | | | | | | | | $ | (41,919) | | | | | $ | 107,020 | | | | | $ | 60,592 | | | | | $ | (9,445) | | |
| | |
Three months
|
| |
Nine months
|
| ||||||||||||||||||
(in thousands of Canadian dollars)
|
| |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Net (loss) income
|
| | | $ | (41,919) | | | | | $ | 107,020 | | | | | $ | 60,592 | | | | | $ | (9,445) | | |
Other comprehensive income (loss)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Items that may be reclassified into profit or loss
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | 29,235 | | | | | | (26,745) | | | | | | (1,816) | | | | | | 24,181 | | |
Other comprehensive income (loss)
|
| | | | 29,235 | | | | | | (26,745) | | | | | | (1,816) | | | | | | 24,181 | | |
Total comprehensive (loss) income
|
| | | $ | (12,684) | | | | | $ | 80,275 | | | | | $ | 58,776 | | | | | $ | 14,736 | | |
(in thousands of Canadian dollars)
|
| |
Common
shares |
| |
Preferred
shares |
| |
Total
share capital |
| |
Accumulated
earnings |
| |
Equity-
settled employee benefits reserve |
| |
Foreign
currency translation reserve |
| |
Total
reserves |
| |
Total
shareholders’ equity |
| ||||||||||||||||||||||||
Balance as at January 1, 2020
|
| | | $ | 26,580 | | | | | $ | 128,315 | | | | | $ | 154,895 | | | | | $ | 1,031,055 | | | | | $ | 74,877 | | | | | $ | (15,502) | | | | | $ | 59,375 | | | | | $ | 1,245,325 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (9,445) | | | | | | — | | | | | | — | | | | | | — | | | | | | (9,445) | | |
Other comprehensive income, net of
tax of $nil |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 24,181 | | | | | | 24,181 | | | | | | 24,181 | | |
Share-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,160 | | | | | | — | | | | | | 7,160 | | | | | | 7,160 | | |
Balance as at September 30, 2020
|
| | | $ | 26,580 | | | | | $ | 128,315 | | | | | $ | 154,895 | | | | | $ | 1,021,610 | | | | | $ | 82,037 | | | | | $ | 8,679 | | | | | $ | 90,716 | | | | | $ | 1,267,221 | | |
Balance as at October 1, 2020
|
| | | $ | 26,580 | | | | | $ | 128,315 | | | | | $ | 154,895 | | | | | $ | 1,021,610 | | | | | $ | 82,037 | | | | | $ | 8,679 | | | | | $ | 90,716 | | | | | $ | 1,267,221 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 255,023 | | | | | | — | | | | | | — | | | | | | — | | | | | | 255,023 | | |
Issuance of share capital on settlement of restricted share units
|
| | | | — | | | | | | 803 | | | | | | 803 | | | | | | — | | | | | | (1,729) | | | | | | — | | | | | | (1,729) | | | | | | (926) | | |
Other comprehensive loss, net of tax recovery of $3,584
|
| | | | — | | | | | | — | | | | | | — | | | | | | (10,109) | | | | | | — | | | | | | (56,603) | | | | | | (56,603) | | | | | | (66,712) | | |
Share-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,340 | | | | | | — | | | | | | 5,340 | | | | | | 5,340 | | |
Dividends declared on Director Voting Preferred Shares
|
| | | | — | | | | | | — | | | | | | — | | | | | | (10) | | | | | | — | | | | | | — | | | | | | — | | | | | | (10) | | |
Balance as at December 31, 2020
|
| | | $ | 26,580 | | | | | $ | 129,118 | | | | | $ | 155,698 | | | | | $ | 1,266,514 | | | | | $ | 85,648 | | | | | $ | (47,924) | | | | | $ | 37,724 | | | | | $ | 1,459,936 | | |
Balance as at January 1, 2021
|
| | | $ | 26,580 | | | | | $ | 129,118 | | | | | $ | 155,698 | | | | | $ | 1,266,514 | | | | | $ | 85,648 | | | | | $ | (47,924) | | | | | $ | 37,724 | | | | | $ | 1,459,936 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 60,592 | | | | | | — | | | | | | — | | | | | | — | | | | | | 60,592 | | |
Issuance of share capital on exercise
of stock options |
| | | | — | | | | | | 16 | | | | | | 16 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 16 | | |
Other comprehensive loss, net of tax of $nil
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,816) | | | | | | (1,816) | | | | | | (1,816) | | |
Share-based compensation
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 33,758 | | | | | | — | | | | | | 33,758 | | | | | | 33,758 | | |
Balance as at September 30, 2021
|
| | | $ | 26,580 | | | | | $ | 129,134 | | | | | $ | 155,714 | | | | | $ | 1,327,106 | | | | | $ | 119,406 | | | | | $ | (49,740) | | | | | $ | 69,666 | | | | | $ | 1,552,486 | | |
(in thousands of Canadian dollars)
|
| |
Notes
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Assets | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | | | $ | 1,558,638 | | | | | $ | 818,378 | | |
Trade and other receivables
|
| | | | | | | 55,985 | | | | | | 51,928 | | |
Other current financial assets
|
| | | | | | | 474 | | | | | | 448 | | |
Prepaid expenses and other current assets
|
| | | | | | | 38,103 | | | | | | 22,861 | | |
Total current assets
|
| | | | | | | 1,653,200 | | | | | | 893,615 | | |
Satellites, property and other equipment
|
| |
5,9
|
| | | | 1,286,390 | | | | | | 1,318,526 | | |
Deferred tax assets
|
| | | | | | | 62,523 | | | | | | 79,912 | | |
Other long-term financial assets
|
| | | | | | | 16,918 | | | | | | 53,425 | | |
Other long-term assets
|
| |
5
|
| | | | 13,410 | | | | | | 9,922 | | |
Intangible assets
|
| |
5
|
| | | | 766,031 | | | | | | 779,190 | | |
Goodwill
|
| | | | | | | 2,446,603 | | | | | | 2,446,603 | | |
Total assets
|
| | | | | | $ | 6,245,075 | | | | | $ | 5,581,193 | | |
Liabilities | | | | | | | | | | | | | | | | |
Trade and other payables
|
| | | | | | $ | 33,508 | | | | | $ | 30,091 | | |
Other current financial liabilities
|
| | | | | | | 63,433 | | | | | | 35,880 | | |
Other current liabilities
|
| | | | | | | 91,294 | | | | | | 96,155 | | |
Total current liabilities
|
| | | | | | | 188,235 | | | | | | 162,126 | | |
Long-term indebtedness
|
| |
11
|
| | | | 3,805,313 | | | | | | 3,187,152 | | |
Deferred tax liabilities
|
| | | | | | | 290,282 | | | | | | 325,893 | | |
Other long-term financial liabilities
|
| | | | | | | 25,172 | | | | | | 35,499 | | |
Other long-term liabilities
|
| | | | | | | 383,587 | | | | | | 410,587 | | |
Total liabilities
|
| | | | | | | 4,692,589 | | | | | | 4,121,257 | | |
Shareholders’ Equity | | | | | | | | | | | | | | | | |
Share capital
|
| |
12
|
| | | | 155,714 | | | | | | 155,698 | | |
Accumulated earnings
|
| | | | | | | 1,327,106 | | | | | | 1,266,514 | | |
Reserves
|
| | | | | | | 69,666 | | | | | | 37,724 | | |
Total shareholders’ equity
|
| | | | | | | 1,552,486 | | | | | | 1,459,936 | | |
Total liabilities and shareholders’ equity
|
| | | | | | $ | 6,245,075 | | | | | $ | 5,581,193 | | |
(in thousands of Canadian dollars)
|
| |
Notes
|
| |
2021
|
| |
2020
|
| |||||||||
Cash flows generated from operating activities | | | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | | | | | | | $ | 60,592 | | | | | $ | (9,445) | | |
Adjustments to reconcile net income (loss) to cash flows generated from operating activities
|
| | | | | | | | | | | | | | | | | | |
Depreciation
|
| | | | | | | | | | 153,402 | | | | | | 166,819 | | |
Amortization
|
| | | | | | | | | | 12,051 | | | | | | 12,906 | | |
Tax expense
|
| | | | | | | | | | 47,591 | | | | | | 27,100 | | |
Interest expense
|
| | | | | | | | | | 139,153 | | | | | | 155,917 | | |
Interest income
|
| | | | | | | | | | (3,197) | | | | | | (6,761) | | |
(Gain) loss on foreign exchange
|
| | | | | | | | | | (7,343) | | | | | | 99,088 | | |
Loss on changes in fair value of financial instruments
|
| | | | | | | | | | 20,357 | | | | | | 38,884 | | |
Share-based compensation
|
| | | | | | | | | | 33,758 | | | | | | 7,160 | | |
Loss on disposal of assets
|
| | | | | | | | | | 777 | | | | | | 246 | | |
Other
|
| | | | | | | | | | (45,397) | | | | | | (45,474) | | |
Income taxes paid, net of income taxes received
|
| | | | 17 | | | | | | (71,644) | | | | | | (35,221) | | |
Interest paid, net of interest received
|
| | | | 17 | | | | | | (87,213) | | | | | | (120,576) | | |
Operating assets and liabilities
|
| | | | 17 | | | | | | (2,753) | | | | | | 9,046 | | |
Net cash generated from operating activities
|
| | | | | | | | | | 250,134 | | | | | | 299,689 | | |
Cash flows used in investing activities | | | | | | | | | | | | | | | | | | | |
Purchases for satellite programs
|
| | | | | | | | | | (97,131) | | | | | | (64,810) | | |
Purchase of property and other equipment
|
| | | | | | | | | | (27,202) | | | | | | (13,235) | | |
Purchase of intangible assets
|
| | | | | | | | | | — | | | | | | (30) | | |
Net cash used in investing activities
|
| | | | | | | | | | (124,333) | | | | | | (78,075) | | |
Cash flows generated from (used in) financing activities | | | | | | | | | | | | | | | | | | | |
Proceeds from indebtedness
|
| | | | 17 | | | | | | 619,900 | | | | | | — | | |
Repayment of indebtedness
|
| | | | 17 | | | | | | — | | | | | | (19,197) | | |
Payment of debt issue costs
|
| | | | 17 | | | | | | (6,834) | | | | | | — | | |
Payments of principal on lease liabilities
|
| | | | 17 | | | | | | (1,780) | | | | | | (1,215) | | |
Satellite performance incentive payments
|
| | | | 17 | | | | | | (5,092) | | | | | | (6,877) | | |
Proceeds from exercise of stock options
|
| | | | 16 | | | | | | — | | | | | | | | |
Government grant received
|
| | | | | | | | | | — | | | | | | 6,120 | | |
Net cash generated from (used in) financing activities
|
| | | | | | | | | | 606,210 | | | | | | (21,169) | | |
Effect of changes in exchange rates on cash and cash equivalents
|
| | | | | | | | | | 8,249 | | | | | | 14,648 | | |
Increase in cash and cash equivalents
|
| | | | | | | | | | 740,260 | | | | | | 215,093 | | |
Cash and cash equivalents, beginning of period
|
| | | | | | | | | | 818,378 | | | | | | 1,027,222 | | |
Cash and cash equivalents, end of period
|
| | | | | | | | | $ | 1,558,638 | | | | | $ | 1,242,315 | | |
| | |
Three months ended
September 30, |
| |
Nine months ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Broadcast
|
| | | $ | 97,408 | | | | | $ | 103,221 | | | | | $ | 293,229 | | | | | $ | 309,773 | | |
Enterprise
|
| | | | 91,126 | | | | | | 93,487 | | | | | | 267,675 | | | | | | 293,634 | | |
Consulting and other
|
| | | | 3,801 | | | | | | 5,345 | | | | | | 9,811 | | | | | | 15,153 | | |
Revenue
|
| | | $ | 192,335 | | | | | $ | 202,053 | | | | | $ | 570,715 | | | | | $ | 618,560 | | |
| | |
Three months ended
September 30, |
| |
Nine months ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Broadcast
|
| | | $ | 52 | | | | | $ | 704 | | | | | $ | 67 | | | | | $ | 704 | | |
Enterprise
|
| | | | 1,337 | | | | | | 668 | | | | | | 8,552 | | | | | | 7,775 | | |
Total equipment sales
|
| | | $ | 1,389 | | | | | $ | 1,372 | | | | | $ | 8,619 | | | | | $ | 8,479 | | |
| | |
Three months ended
September 30, |
| |
Nine months ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Canada
|
| | | $ | 78,589 | | | | | $ | 89,625 | | | | | $ | 249,032 | | | | | $ | 270,062 | | |
United States
|
| | | | 77,856 | | | | | | 76,767 | | | | | | 217,277 | | | | | | 233,543 | | |
Latin America & Caribbean
|
| | | | 13,242 | | | | | | 15,006 | | | | | | 41,921 | | | | | | 49,236 | | |
Europe, Middle East & Africa
|
| | | | 14,279 | | | | | | 10,522 | | | | | | 32,823 | | | | | | 34,284 | | |
Asia & Australia
|
| | | | 8,369 | | | | | | 10,133 | | | | | | 29,662 | | | | | | 31,435 | | |
Revenue
|
| | | $ | 192,335 | | | | | $ | 202,053 | | | | | $ | 570,715 | | | | | $ | 618,560 | | |
As at,
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Canada
|
| | | $ | 651,269 | | | | | $ | 624,303 | | |
Europe, Middle East & Africa
|
| | | | 576,195 | | | | | | 619,959 | | |
United States
|
| | | | 56,356 | | | | | | 71,659 | | |
All others
|
| | | | 2,570 | | | | | | 2,605 | | |
Satellites, property and other equipment
|
| | | $ | 1,286,390 | | | | | $ | 1,318,526 | | |
As at,
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Canada
|
| | | $ | 708,440 | | | | | $ | 718,880 | | |
United States
|
| | | | 6,111 | | | | | | 38,448 | | |
Latin America & Caribbean
|
| | | | 38,204 | | | | | | 15,114 | | |
All others
|
| | | | 13,276 | | | | | | 6,748 | | |
Intangible assets
|
| | | $ | 766,031 | | | | | $ | 779,190 | | |
As at,
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Canada
|
| | | $ | 13,090 | | | | | $ | 9,470 | | |
Europe, Middle East & Africa
|
| | | | 320 | | | | | | 452 | | |
Other long-term assets
|
| | | $ | 13,410 | | | | | $ | 9,922 | | |
| | |
Three months ended
September 30, |
| |
Nine months ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Compensation and employee benefits(a)
|
| | | $ | 28,421 | | | | | $ | 20,520 | | | | | $ | 88,699 | | | | | $ | 63,983 | | |
Other operating expenses(b)
|
| | | | 13,766 | | | | | | 14,674 | | | | | | 36,034 | | | | | | 47,032 | | |
Cost of sales(c)
|
| | | | 7,504 | | | | | | 6,991 | | | | | | 22,188 | | | | | | 22,697 | | |
Operating expenses
|
| | | $ | 49,691 | | | | | $ | 42,185 | | | | | $ | 146,921 | | | | | $ | 133,712 | | |
| | |
Three months ended
September 30, |
| |
Nine months ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Interest on indebtedness
|
| | | $ | 41,179 | | | | | $ | 37,777 | | | | | $ | 110,356 | | | | | $ | 127,004 | | |
Interest on derivative instruments
|
| | | | 3,587 | | | | | | 5,498 | | | | | | 10,627 | | | | | | 7,841 | | |
Interest on satellite performance incentive payments
|
| | | | 557 | | | | | | 714 | | | | | | 1,719 | | | | | | 2,262 | | |
Interest on significant financing component
|
| | | | 4,669 | | | | | | 5,544 | | | | | | 14,348 | | | | | | 17,022 | | |
Interest on employee benefit plans
|
| | | | 323 | | | | | | 260 | | | | | | 971 | | | | | | 781 | | |
Interest on leases
|
| | | | 376 | | | | | | 323 | | | | | | 1,132 | | | | | | 1,007 | | |
Interest expense
|
| | | $ | 50,691 | | | | | $ | 50,116 | | | | | $ | 139,153 | | | | | $ | 155,917 | | |
| | |
Three months ended
September 30, |
| |
Nine months ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Current tax expense
|
| | | $ | 23,253 | | | | | $ | 23,354 | | | | | $ | 64,906 | | | | | $ | 51,612 | | |
Deferred tax recovery
|
| | | | (10,489) | | | | | | (7,618) | | | | | | (17,315) | | | | | | (24,512) | | |
Tax expense
|
| | | $ | 12,764 | | | | | $ | 15,736 | | | | | $ | 47,591 | | | | | $ | 27,100 | | |
| | |
Three months ended
September 30, |
| |
Nine months ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Income (loss) before tax
|
| | | $ | (29,155) | | | | | $ | 122,756 | | | | | $ | 108,183 | | | | | $ | 17,655 | | |
Multiplied by the statutory income tax rates
|
| | | | 26.46% | | | | | | 26.49% | | | | | | 26.46% | | | | | | 26.49% | | |
| | | | | (7,714) | | | | | | 32,518 | | | | | | 28,625 | | | | | | 4,677 | | |
Income tax recorded at rates different from the Canadian tax
rate |
| | | | (2,087) | | | | | | (3,221) | | | | | | (35,904) | | | | | | (10,591) | | |
Permanent differences
|
| | | | 14,150 | | | | | | (6,763) | | | | | | 19,960 | | | | | | 18,018 | | |
Effect on deferred tax balances due to the change in income tax rates
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,155) | | |
Effect of temporary differences not recognized as deferred tax assets
|
| | | | 10,538 | | | | | | (6,297) | | | | | | 40,057 | | | | | | 15,654 | | |
Change in estimates related to prior period
|
| | | | 29 | | | | | | — | | | | | | (2,090) | | | | | | — | | |
Other
|
| | | | (2,152) | | | | | | (501) | | | | | | (3,057) | | | | | | 497 | | |
Tax expense
|
| | | $ | 12,764 | | | | | $ | 15,736 | | | | | $ | 47,591 | | | | | $ | 27,100 | | |
Effective income tax rate
|
| | | | (43.78)% | | | | | | 12.82% | | | | | | 43.99% | | | | | | 153.50% | | |
|
Remaining 2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
Thereafter
|
| |
Total
|
| ||||||||||||||||||
|
$822
|
| | | $ | 3,331 | | | | | $ | 3,273 | | | | | $ | 3,130 | | | | | $ | 2,854 | | | | | $ | 35,650 | | | | | $ | 49,060 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Senior Secured Credit Facilities | | | | | | | | | | | | | |
Revolving Credit Facility
|
| | | $ | — | | | | | $ | — | | |
Term Loan B – U.S. Facility (September 30, 2021 and December 31, 2020 – US$1,552,815)
|
| | | | 1,968,969 | | | | | | 1,975,957 | | |
6.5% Senior Notes (US$550,000)
|
| | | | 697,400 | | | | | | 699,875 | | |
5.625% Senior Secured Notes (US$500,000)
|
| | | | 634,000 | | | | | | — | | |
4.875% Senior Secured Notes (US$400,000)
|
| | | | 507,200 | | | | | | 509,000 | | |
| | | | | 3,807,569 | | | | | | 3,184,832 | | |
Deferred financing costs, prepayment options and loss on repayment
|
| | | | (2,256) | | | | | | 2,320 | | |
| | | | | 3,805,313 | | | | | | 3,187,152 | | |
Less: current indebtedness
|
| | | | — | | | | | | — | | |
Long-term indebtedness
|
| | | $ | 3,805,313 | | | | | $ | 3,187,152 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||||||||||||||
| | |
Number of
shares |
| |
Stated
value |
| |
Number of
shares |
| |
Stated
value |
| ||||||||||||
Common Shares
|
| | | | 74,252,460 | | | | | $ | 26,580 | | | | | | 74,252,460 | | | | | $ | 26,580 | | |
Voting Participating Preferred Shares
|
| | | | 7,034,444 | | | | | | 48,246 | | | | | | 7,034,444 | | | | | | 48,246 | | |
Non-Voting Participating Preferred Shares
|
| | | | 38,508,717 | | | | | | 80,878 | | | | | | 38,508,117 | | | | | | 80,862 | | |
Director Voting Preferred Shares
|
| | | | 1,000 | | | | | | 10 | | | | | | 1,000 | | | | | | 10 | | |
Share capital
|
| | | | | | | | | $ | 155,714 | | | | | | | | | | | $ | 155,698 | | |
| | |
Carrying
amount |
| |
Contractual
cash flows (undiscounted) |
| |
Remaining
2021 |
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
Thereafter
|
| ||||||||||||||||||||||||
Trade and other payables
|
| | | $ | 33,508 | | | | | $ | 33,508 | | | | | $ | 33,508 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Customer
and other deposits |
| | | | 1,913 | | | | | | 1,913 | | | | | | 1,439 | | | | | | 17 | | | | | | 111 | | | | | | 17 | | | | | | 186 | | | | | | 143 | | |
Satellite performance incentive payments
|
| | | | 32,673 | | | | | | 40,253 | | | | | | 2,408 | | | | | | 8,330 | | | | | | 7,491 | | | | | | 5,898 | | | | | | 3,122 | | | | | | 13,004 | | |
Other financial liabilities
|
| | | | 2,183 | | | | | | 2,183 | | | | | | 2,183 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Interest rate
swaps |
| | | | 7,415 | | | | | | 7,489 | | | | | | 1,888 | | | | | | 5,601 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Indebtedness(1) | | | | | 3,851,990 | | | | | | 4,747,648 | | | | | | 70,758 | | | | | | 163,365 | | | | | | 163,365 | | | | | | 163,455 | | | | | | 162,415 | | | | | | 4,024,290 | | |
| | | | $ | 3,929,682 | | | | | $ | 4,832,994 | | | | | $ | 112,184 | | | | | $ | 177,313 | | | | | $ | 170,967 | | | | | $ | 169,370 | | | | | $ | 165,723 | | | | | $ | 4,037,437 | | |
| | |
Interest
payable |
| |
Interest
payments |
| ||||||
Satellite performance incentive payments
|
| | | $ | 384 | | | | | $ | 7,826 | | |
Indebtedness
|
| | | $ | 44,421 | | | | | $ | 940,079 | | |
As at September 30, 2021
|
| |
FVTPL
|
| |
Amortized
cost |
| |
Total
|
| |
Fair value
|
| |
Fair value
hierarchy |
| ||||||||||||
Cash and cash equivalents
|
| | | $ | — | | | | | $ | 1,558,638 | | | | | $ | 1,558,638 | | | | | $ | 1,558,638 | | | |
Level 1
|
|
Trade and other receivables
|
| | | | — | | | | | | 55,985 | | | | | | 55,985 | | | | | | 55,985 | | | |
(3)
|
|
Other current financial assets
|
| | | | — | | | | | | 474 | | | | | | 474 | | | | | | 474 | | | |
Level 1
|
|
Other long-term financial assets(1)
|
| | | | 1,394 | | | | | | 15,524 | | | | | | 16,918 | | | | | | 16,918 | | | |
Level 1,
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Level 2
|
|
Trade and other payables
|
| | | | — | | | | | | (33,508) | | | | | | (33,508) | | | | | | (33,508) | | | |
(3)
|
|
Other current financial liabilities
|
| | | | (7,415) | | | | | | (56,018) | | | | | | (63,433) | | | | | | (65,135) | | | |
Level 2
|
|
Other long-term financial liabilities
|
| | | | — | | | | | | (25,172) | | | | | | (25,172) | | | | | | (25,423) | | | |
Level 2
|
|
Indebtedness(2) | | | | | — | | | | | | (3,807,569) | | | | | | (3,807,569) | | | | | | (3,459,216) | | | |
Level 2
|
|
| | | | $ | (6,021) | | | | | $ | (2,291,646) | | | | | $ | (2,297,667) | | | | | $ | (1,951,267) | | | | | |
As at December 31, 2020
|
| |
FVTPL
|
| |
Amortized
cost |
| |
Total
|
| |
Fair value
|
| |
Fair value
hierarchy |
| ||||||||||||
Cash and cash equivalents
|
| | | $ | — | | | | | $ | 818,378 | | | | | $ | 818,378 | | | | | $ | 818,378 | | | |
Level 1
|
|
Trade and other receivables
|
| | | | — | | | | | | 51,928 | | | | | | 51,928 | | | | | | 51,928 | | | |
(3)
|
|
Other current financial assets
|
| | | | — | | | | | | 448 | | | | | | 448 | | | | | | 448 | | | |
Level 1
|
|
Other long-term financial assets(1)
|
| | | | 30,266 | | | | | | 23,159 | | | | | | 53,425 | | | | | | 53,425 | | | |
Level 1,
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Level 2
|
|
Trade and other payables
|
| | | | — | | | | | | (30,091) | | | | | | (30,091) | | | | | | (30,091) | | | |
(3)
|
|
Other current financial liabilities
|
| | | | (12,581) | | | | | | (23,299) | | | | | | (35,880) | | | | | | (37,921) | | | |
Level 2
|
|
Other long-term financial liabilities
|
| | | | (5,448) | | | | | | (30,051) | | | | | | (35,499) | | | | | | (36,357) | | | |
Level 2
|
|
Indebtedness(2) | | | | | — | | | | | | (3,184,832) | | | | | | (3,184,832) | | | | | | (3,214,543) | | | |
Level 2
|
|
| | | | $ | 12,237 | | | | | $ | (2,374,360) | | | | | $ | (2,362,123) | | | | | $ | (2,394,733) | | | | | |
As at
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Term Loan B – U.S. Facility – Senior Secured Credit Facilities
|
| | | | 90.00% | | | | | | 98.88% | | |
6.5% Senior Notes
|
| | | | 86.87% | | | | | | 104.76% | | |
4.875% Senior Secured Notes
|
| | | | 92.53% | | | | | | 103.64% | | |
5.625% Senior Secured Notes
|
| | | | 96.53% | | | | | | — | | |
As at September 30, 2021
|
| |
Other
long-term financial assets |
| |
Other
current financial liabilities |
| |
Total
|
| |||||||||
Interest rate swaps
|
| | | $ | — | | | | | $ | (7,415) | | | | | $ | (7,415) | | |
Prepayment options
|
| | | | 1,394 | | | | | | — | | | | | | 1,394 | | |
| | | | $ | 1,394 | | | | | $ | (7,415) | | | | | $ | (6,021) | | |
As at December 31, 2020
|
| |
Other
long-term financial assets |
| |
Other
current financial liabilities |
| |
Other
long-term financial liabilities |
| |
Total
|
| ||||||||||||
Interest rate swaps
|
| | | $ | — | | | | | $ | (12,581) | | | | | $ | (5,448) | | | | | $ | (18,029) | | |
Prepayment options
|
| | | | 30,266 | | | | | | — | | | | | | — | | | | | | 30,266 | | |
| | | | $ | 30,266 | | | | | $ | (12,581) | | | | | $ | (5,448) | | | | | $ | 12,237 | | |
|
Fair value, December 31, 2020 and January 1, 2021
|
| | | $ | 12,237 | | |
| Derivative recognized at inception | | | | | | | |
|
Prepayment options – 5.625% Senior Secured Notes (Note 11)
|
| | | | 1,896 | | |
| Unrealized (losses) gains on derivatives | | | | | | | |
|
Prepayment options
|
| | | | (30,848) | | |
|
Interest rate swaps
|
| | | | 10,491 | | |
|
Impact of foreign exchange
|
| | | | 203 | | |
|
Fair value, June 30, 2021
|
| | | $ | (6,021) | | |
| | |
2021
|
| |
2020
|
| ||||||||||||||||||
Three months ended September 30,
|
| |
Pension
|
| |
Other
|
| |
Pension
|
| |
Other
|
| ||||||||||||
Operating expenses
|
| | | $ | 1,973 | | | | | $ | 41 | | | | | $ | 1,797 | | | | | $ | 37 | | |
Interest expense
|
| | | $ | 185 | | | | | $ | 138 | | | | | $ | 106 | | | | | $ | 154 | | |
| | |
2021
|
| |
2020
|
| ||||||||||||||||||
Nine months ended September 30,
|
| |
Pension
|
| |
Other
|
| |
Pension
|
| |
Other
|
| ||||||||||||
Operating expenses
|
| | | $ | 5,920 | | | | | $ | 124 | | | | | $ | 5,391 | | | | | $ | 109 | | |
Interest expense
|
| | | $ | 557 | | | | | $ | 414 | | | | | $ | 318 | | | | | $ | 463 | | |
As at
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Pension benefits
|
| | | $ | 24,151 | | | | | $ | 22,070 | | |
Other post-employment benefits
|
| | | | 25,709 | | | | | | 25,914 | | |
Accrued benefit liabilities
|
| | | $ | 49,860 | | | | | $ | 47,984 | | |
As at September 30,
|
| |
2021
|
| |
2020
|
| ||||||
Cash
|
| | | $ | 1,473,049 | | | | | $ | 910,852 | | |
Short-term investments(1)
|
| | | | 85,589 | | | | | | 331,463 | | |
Cash and cash equivalents
|
| | | $ | 1,558,638 | | | | | $ | 1,242,315 | | |
Nine months ended September 30,
|
| |
2021
|
| |
2020
|
| ||||||
Income taxes paid
|
| | | $ | (71,690) | | | | | $ | (35,620) | | |
Income taxes received
|
| | | | 46 | | | | | | 399 | | |
| | | | $ | (71,644) | | | | | $ | (35,221) | | |
Nine months ended September 30,
|
| |
2021
|
| |
2020
|
| ||||||
Interest paid
|
| | | $ | (90,367) | | | | | $ | (128,955) | | |
Interest received
|
| | | | 3,154 | | | | | | 8,379 | | |
| | | | $ | (87,213) | | | | | $ | (120,576) | | |
| | |
Indebtedness
|
| |
Satellite
performance incentive payments |
| |
Leases
|
| |||||||||
Balance as at January 1, 2021
|
| | | $ | 3,187,152 | | | | | $ | 37,574 | | | | | $ | 29,051 | | |
Cash inflows
|
| | | | 619,900 | | | | | | — | | | | | | — | | |
Cash outflows
|
| | | | — | | | | | | (5,092) | | | | | | (1,780) | | |
Amortization of deferred financing costs, prepayment options and loss
on repayment |
| | | | 362 | | | | | | — | | | | | | — | | |
Debt issue costs
|
| | | | (6,834) | | | | | | — | | | | | | — | | |
Prepayment option at inception – 5.625% Senior Secured Notes
|
| | | | 1,896 | | | | | | — | | | | | | — | | |
Interest accrued
|
| | | | — | | | | | | — | | | | | | 1,132 | | |
Interest paid
|
| | | | — | | | | | | — | | | | | | (1,132) | | |
Non-cash additions
|
| | | | — | | | | | | — | | | | | | 7,323 | | |
Non-cash disposals
|
| | | | — | | | | | | — | | | | | | (939) | | |
Impact of foreign exchange
|
| | | | 2,837 | | | | | | (193) | | | | | | (235) | | |
Balance as at September 30, 2021
|
| | | $ | 3,805,313 | | | | | $ | 32,289 | | | | | $ | 32,420 | | |
| | |
Satellite
performance incentive payments |
| |
Leases
|
| |
Satellite
performance incentive payments |
| |||||||||
Balance as at January 1, 2020
|
| | | $ | 3,712,799 | | | | | $ | 46,951 | | | | | $ | 28,582 | | |
Cash outflows
|
| | | | (19,197) | | | | | | (6,877) | | | | | | (1,215) | | |
Amortization of deferred financing costs and prepayment options
|
| | | | 314 | | | | | | — | | | | | | — | | |
Interest accrued
|
| | | | — | | | | | | — | | | | | | 1,007 | | |
Interest paid
|
| | | | — | | | | | | — | | | | | | (1,317) | | |
Non-cash additions
|
| | | | — | | | | | | — | | | | | | 2,592 | | |
Other
|
| | | | — | | | | | | 148 | | | | | | (77) | | |
Impact of foreign exchange
|
| | | | 94,177 | | | | | | 1,246 | | | | | | 150 | | |
Balance as at September 30, 2020
|
| | | $ | 3,788,093 | | | | | $ | 41,468 | | | | | $ | 29,722 | | |
Nine months ended September 30,
|
| |
2021
|
| |
2020
|
| ||||||
Trade and other receivables
|
| | | $ | 8,035 | | | | | $ | (7,865) | | |
Financial assets
|
| | | | 2,351 | | | | | | 1,291 | | |
Other assets
|
| | | | (14,773) | | | | | | 1,578 | | |
Trade and other payables
|
| | | | 3,679 | | | | | | (4,018) | | |
Financial liabilities
|
| | | | 2,869 | | | | | | (219) | | |
Other liabilities
|
| | | | (4,914) | | | | | | 18,279 | | |
| | | | $ | (2,753) | | | | | $ | 9,046 | | |
Nine months ended September 30,
|
| |
2021
|
| |
2020
|
| ||||||
Satellites, property and other equipment
|
| | | $ | 656 | | | | | $ | 4,148 | | |
| | |
Remaining
2021 |
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
Thereafter
|
| |
Total
|
| |||||||||||||||||||||
Property leases
|
| | | $ | 367 | | | | | $ | 1,168 | | | | | $ | 1,153 | | | | | $ | 1,139 | | | | | $ | 1,058 | | | | | $ | 13,658 | | | | | $ | 18,543 | | |
Capital commitments
|
| | | | 57,401 | | | | | | 22,068 | | | | | | 40,919 | | | | | | 48,374 | | | | | | 12,553 | | | | | | — | | | | | | 181,315 | | |
Other operating commitments
|
| | | | 13,580 | | | | | | 8,385 | | | | | | 5,789 | | | | | | 4,801 | | | | | | 4,287 | | | | | | 11,417 | | | | | | 48,259 | | |
| | | | $ | 71,348 | | | | | $ | 31,621 | | | | | $ | 47,861 | | | | | $ | 54,314 | | | | | $ | 17,898 | | | | | $ | 25,075 | | | | | $ | 248,117 | | |
| | |
Sale of goods and services
|
| |
Purchase of goods and services
|
| ||||||||||||||||||
Three months ended September 30,
|
| |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Revenue
|
| | | $ | 31 | | | | | $ | 33 | | | | | $ | — | | | | | $ | — | | |
Operating expenses
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,564 | | | | | $ | 1,668 | | |
| | |
Sale of goods and services
|
| |
Purchase of goods and services
|
| ||||||||||||||||||
Nine months ended September 30,
|
| |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Revenue
|
| | | $ | 94 | | | | | $ | 101 | | | | | $ | — | | | | | $ | — | | |
Operating expenses
|
| | | $ | — | | | | | $ | — | | | | | $ | 4,703 | | | | | $ | 5,061 | | |
| | |
Amounts owed by related parties
|
| |
Amounts owed to related parties
|
| ||||||||||||||||||
As at
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||||||||
Current receivables/payables
|
| | | $ | 131 | | | | | $ | — | | | | | $ | — | | | | | $ | 105 | | |
(in thousands of Canadian dollars)
|
| |
Notes
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Revenue
|
| |
5
|
| | | $ | 820,468 | | | | | $ | 910,893 | | | | | $ | 902,932 | | |
Operating expenses
|
| |
6
|
| | | | (180,874) | | | | | | (165,499) | | | | | | (185,827) | | |
Depreciation
|
| | | | | | | (216,885) | | | | | | (242,966) | | | | | | (224,851) | | |
Amortization
|
| | | | | | | (17,195) | | | | | | (23,277) | | | | | | (24,305) | | |
Other operating (losses) gains, net
|
| |
7
|
| | | | (215) | | | | | | (862) | | | | | | 743 | | |
Operating income
|
| | | | | | | 405,299 | | | | | | 478,289 | | | | | | 468,692 | | |
Interest expense
|
| |
8
|
| | | | (203,760) | | | | | | (258,261) | | | | | | (237,786) | | |
Loss on refinancing
|
| |
23
|
| | | | — | | | | | | (151,919) | | | | | | — | | |
Interest and other income
|
| | | | | | | 5,196 | | | | | | 20,043 | | | | | | 16,498 | | |
Loss on changes in fair value of financial instruments
|
| | | | | | | (13,115) | | | | | | (49,672) | | | | | | (18,205) | | |
Gain (loss) on foreign exchange
|
| | | | | | | 47,605 | | | | | | 163,840 | | | | | | (259,079) | | |
Income (loss) before tax
|
| | | | | | | 241,225 | | | | | | 202,320 | | | | | | (29,880) | | |
Tax recovery (expense)
|
| |
9
|
| | | | 4,353 | | | | | | (15,122) | | | | | | (61,056) | | |
Net income (loss)
|
| | | | | | $ | 245,578 | | | | | $ | 187,198 | | | | | $ | (90,936) | | |
(in thousands of Canadian dollars)
|
| |
Notes
|
| |
2020
|
| |
2019
|
| |
2018
|
| ||||||||||||
Net income (loss)
|
| | | | | | | | | $ | 245,578 | | | | | $ | 187,198 | | | | | $ | (90,936) | | |
Other comprehensive (loss) income
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Items that may be reclassified into profit or loss
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | | | | | | | (32,422) | | | | | | (50,465) | | | | | | 44,459 | | |
Items that will not be reclassified into profit or loss
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Actuarial (losses) gains on employee benefit plans
|
| | | | 29 | | | | | | (13,693) | | | | | | 1,134 | | | | | | 7,755 | | |
Tax recovery (expense)
|
| | | | | | | | | | 3,584 | | | | | | (403) | | | | | | (2,031) | | |
Other comprehensive (loss) income
|
| | | | | | | | | | (42,531) | | | | | | (49,734) | | | | | | 50,183 | | |
Total comprehensive income (loss)
|
| | | | | | | | | $ | 203,047 | | | | | $ | 137,464 | | | | | $ | (40,753) | | |
(in thousands of
Canadian dollars) |
| |
Notes
|
| |
Common
shares |
| |
Preferred
shares |
| |
Total
share capital |
| |
Accumulated
earnings |
| |
Equity-
settled employee benefits reserve |
| |
Foreign
currency translation reserve |
| |
Total
reserves |
| |
Total
shareholders’ equity |
| |||||||||||||||||||||||||||
Balance as at January 1,
2018 |
| | | | | | | | | $ | 26,580 | | | | | $ | 126,102 | | | | | $ | 152,682 | | | | | $ | 968,408 | | | | | $ | 31,549 | | | | | $ | (9,818) | | | | | $ | 21,731 | | | | | $ | 1,142,821 | | |
Net loss
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (90,936) | | | | | | — | | | | | | — | | | | | | — | | | | | | (90,936) | | |
Issuance of share capital on
exercise of stock appreciation rights |
| | | | 24 | | | | | | — | | | | | | 1,024 | | | | | | 1,024 | | | | | | (1,079) | | | | | | (339) | | | | | | — | | | | | | (339) | | | | | | (394) | | |
Cumulative effect adjustment
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (38,516) | | | | | | — | | | | | | 322 | | | | | | 322 | | | | | | (38,194) | | |
Other comprehensive income, net of tax expense of $2,031
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,724 | | | | | | — | | | | | | 44,459 | | | | | | 44,459 | | | | | | 50,183 | | |
Share-based
compensation |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 29,505 | | | | | | — | | | | | | 29,505 | | | | | | 29,505 | | |
Balance as at December 31, 2018
|
| | | | | | | | | $ | 26,580 | | | | | $ | 127,126 | | | | | $ | 153,706 | | | | | $ | 843,601 | | | | | $ | 60,715 | | | | | $ | 34,963 | | | | | $ | 95,678 | | | | | $ | 1,092,985 | | |
Balance as at January 1,
2019 |
| | | | | | | | | $ | 26,580 | | | | | $ | 127,126 | | | | | $ | 153,706 | | | | | $ | 843,601 | | | | | $ | 60,715 | | | | | $ | 34,963 | | | | | $ | 95,678 | | | | | $ | 1,092,985 | | |
Net income
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | 187,198 | | | | | | — | | | | | | — | | | | | | — | | | | | | 187,198 | | |
Dividends declared on Director Voting Preferred shares
|
| | | | 24 | | | | | | — | | | | | | — | | | | | | — | | | | | | (20) | | | | | | — | | | | | | — | | | | | | — | | | | | | (20) | | |
Issuance of share capital on
exercise of stock appreciation rights |
| | | | 24 | | | | | | — | | | | | | 385 | | | | | | 385 | | | | | | (455) | | | | | | (144) | | | | | | — | | | | | | (144) | | | | | | (214) | | |
Issuance of share capital on
settlement of restricted share units |
| | | | 24 | | | | | | — | | | | | | 804 | | | | | | 804 | | | | | | — | | | | | | (1,729) | | | | | | — | | | | | | (1,729) | | | | | | (925) | | |
Other comprehensive
income (loss), net of tax expense of $403 |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | 731 | | | | | | — | | | | | | (50,465) | | | | | | (50,465) | | | | | | (49,734) | | |
Share-based
compensation |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,035 | | | | | | — | | | | | | 16,035 | | | | | | 16,035 | | |
Balance as at December 31, 2019
|
| | | | | | | | | $ | 26,580 | | | | | $ | 128,315 | | | | | $ | 154,895 | | | | | $ | 1,031,055 | | | | | $ | 74,877 | | | | | $ | (15,502) | | | | | $ | 59,375 | | | | | $ | 1,245,325 | | |
Balance as at January 1,
2020 |
| | | | | | | | | $ | 26,580 | | | | | $ | 128,315 | | | | | $ | 154,895 | | | | | $ | 1,031,055 | | | | | $ | 74,877 | | | | | $ | (15,502) | | | | | $ | 59,375 | | | | | $ | 1,245,325 | | |
Net income
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | 245,578 | | | | | | — | | | | | | — | | | | | | — | | | | | | 245,578 | | |
Dividends declared on Director Voting Preferred shares
|
| | | | 24 | | | | | | — | | | | | | — | | | | | | — | | | | | | (10) | | | | | | — | | | | | | — | | | | | | — | | | | | | (10) | | |
(in thousands of
Canadian dollars) |
| |
Notes
|
| |
Common
shares |
| |
Preferred
shares |
| |
Total
share capital |
| |
Accumulated
earnings |
| |
Equity-
settled employee benefits reserve |
| |
Foreign
currency translation reserve |
| |
Total
reserves |
| |
Total
shareholders’ equity |
| |||||||||||||||||||||||||||
Issuance of share capital on
settlement of restricted share units |
| | | | 24 | | | | | | — | | | | | | 803 | | | | | | 803 | | | | | | — | | | | | | (1,729) | | | | | | — | | | | | | (1,729) | | | | | | (926) | | |
Other comprehensive loss, net of tax recovery of $3,584
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (10,109) | | | | | | — | | | | | | (32,422) | | | | | | (32,422) | | | | | | (42,531) | | |
Share-based
compensation |
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,500 | | | | | | — | | | | | | 12,500 | | | | | | 12,500 | | |
Balance as at December 31, 2020
|
| | | | | | | | | $ | 26,580 | | | | | $ | 129,118 | | | | | $ | 155,698 | | | | | $ | 1,266,514 | | | | | $ | 85,648 | | | | | $ | (47,924) | | | | | $ | 37,724 | | | | | $ | 1,459,936 | | |
|
(in thousands of Canadian dollars)
|
| |
Notes
|
| |
December 31, 2020
|
| |
December 31, 2019
|
| ||||||
Assets | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| |
30
|
| | | $ | 818,378 | | | | | $ | 1,027,222 | | |
Trade and other receivables
|
| |
10
|
| | | | 51,928 | | | | | | 64,062 | | |
Other current financial assets
|
| |
11
|
| | | | 448 | | | | | | 210 | | |
Prepaid expenses and other current assets
|
| |
12
|
| | | | 22,861 | | | | | | 43,724 | | |
Total current assets
|
| | | | | | | 893,615 | | | | | | 1,135,218 | | |
Satellites, property and other equipment
|
| |
5, 15
|
| | | | 1,318,526 | | | | | | 1,458,933 | | |
Deferred tax assets
|
| |
9
|
| | | | 79,912 | | | | | | 12,412 | | |
Other long-term financial assets
|
| |
13
|
| | | | 53,425 | | | | | | 57,730 | | |
Other long-term assets
|
| |
5, 14
|
| | | | 9,922 | | | | | | 8,264 | | |
Intangible assets
|
| |
5, 16
|
| | | | 779,190 | | | | | | 802,791 | | |
Goodwill
|
| |
17
|
| | | | 2,446,603 | | | | | | 2,446,603 | | |
Total assets
|
| | | | | | $ | 5,581,193 | | | | | $ | 5,921,951 | | |
Liabilities | | | | | | | | | | | | | | | | |
Trade and other payables
|
| |
18
|
| | | $ | 30,091 | | | | | $ | 26,247 | | |
Other current financial liabilities
|
| |
19
|
| | | | 35,880 | | | | | | 38,281 | | |
Other current liabilities
|
| |
20
|
| | | | 96,155 | | | | | | 72,315 | | |
Current indebtedness
|
| |
23
|
| | | | — | | | | | | 24,408 | | |
Total current liabilities
|
| | | | | | | 162,126 | | | | | | 161,251 | | |
Long-term indebtedness
|
| |
23
|
| | | | 3,187,152 | | | | | | 3,688,391 | | |
Deferred tax liabilities
|
| |
9
|
| | | | 325,893 | | | | | | 348,762 | | |
Other long-term financial liabilities
|
| |
21
|
| | | | 35,499 | | | | | | 42,511 | | |
Other long-term liabilities
|
| |
22
|
| | | | 410,587 | | | | | | 435,711 | | |
Total liabilities
|
| | | | | | | 4,121,257 | | | | | | 4,676,626 | | |
Shareholders’ Equity | | | | | | | | | | | | | | | | |
Share capital
|
| |
24
|
| | | | 155,698 | | | | | | 154,895 | | |
Accumulated earnings
|
| | | | | | | 1,266,514 | | | | | | 1,031,055 | | |
Reserves
|
| | | | | | | 37,724 | | | | | | 59,375 | | |
Total shareholders’ equity
|
| | | | | | | 1,459,936 | | | | | | 1,245,325 | | |
Total liabilities and shareholders’ equity
|
| | | | | | $ | 5,581,193 | | | | | $ | 5,921,951 | | |
(in thousands of Canadian dollars)
|
| |
Notes
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Cash flows from operating activities | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | | | | $ | 245,578 | | | | | $ | 187,198 | | | | | $ | (90,936) | | |
Adjustments to reconcile net income (loss) to cash flows from operating activities
|
| | | | | | | | | | | | | | | | | | | | | |
Depreciation
|
| | | | | | | 216,885 | | | | | | 242,966 | | | | | | 224,851 | | |
Amortization
|
| | | | | | | 17,195 | | | | | | 23,277 | | | | | | 24,305 | | |
Tax (recovery) expense
|
| | | | | | | (4,353) | | | | | | 15,122 | | | | | | 61,056 | | |
Interest expense
|
| | | | | | | 203,760 | | | | | | 258,261 | | | | | | 237,786 | | |
Interest income
|
| | | | | | | (7,668) | | | | | | (20,268) | | | | | | (12,415) | | |
(Gain) loss on foreign exchange
|
| | | | | | | (47,605) | | | | | | (163,840) | | | | | | 259,079 | | |
Loss on changes in fair value of financial instruments
|
| | | | | | | 13,115 | | | | | | 49,672 | | | | | | 18,205 | | |
Share-based compensation
|
| |
28
|
| | | | 12,500 | | | | | | 16,035 | | | | | | 29,505 | | |
Loss on disposal of assets
|
| |
7
|
| | | | 215 | | | | | | 862 | | | | | | 353 | | |
Loss on refinancing
|
| |
23
|
| | | | — | | | | | | 151,919 | | | | | | — | | |
Other
|
| | | | | | | (58,784) | | | | | | (100,078) | | | | | | (91,580) | | |
Income taxes paid, net of income taxes received
|
| |
30
|
| | | | (53,443) | | | | | | (95,455) | | | | | | (106,308) | | |
Interest paid, net of capitalized interest and interest received
|
| |
30
|
| | | | (179,972) | | | | | | (176,112) | | | | | | (176,417) | | |
Operating assets and liabilities
|
| |
30
|
| | | | 15,018 | | | | | | (13,942) | | | | | | 88,813 | | |
Net cash from operating activities
|
| | | | | | | 372,441 | | | | | | 375,617 | | | | | | 466,297 | | |
Cash flows used in investing activities | | | | | | | | | | | | | | | | | | | | | | |
Satellite programs, including capitalized interest
|
| | | | | | | (75,902) | | | | | | (3,668) | | | | | | (67,387) | | |
Purchase of property and other equipment
|
| | | | | | | (17,060) | | | | | | (8,345) | | | | | | (15,997) | | |
Purchase of intangible assets
|
| | | | | | | (30) | | | | | | (27,597) | | | | | | (19,923) | | |
Net cash used in investing activities
|
| | | | | | | (92,992) | | | | | | (39,610) | | | | | | (103,307) | | |
Cash flows used in financing activities | | | | | | | | | | | | | | | | | | | | | | |
Repayment of indebtedness
|
| |
30
|
| | | | (453,592) | | | | | | (3,743,465) | | | | | | (94,951) | | |
Proceeds from indebtedness
|
| |
30
|
| | | | — | | | | | | 3,786,082 | | | | | | — | | |
Payment of early redemption premium
|
| |
23
|
| | | | — | | | | | | (43,940) | | | | | | — | | |
Payment of debt issue costs
|
| |
30
|
| | | | — | | | | | | (28,082) | | | | | | (10,190) | | |
Payments of principal on lease liabilities
|
| |
30
|
| | | | (1,793) | | | | | | (1,252) | | | | | | (29) | | |
Satellite performance incentive payments
|
| |
30
|
| | | | (9,031) | | | | | | (9,644) | | | | | | (9,037) | | |
Government grant received
|
| | | | | | | 14,185 | | | | | | — | | | | | | — | | |
Dividends paid on Director Voting preferred shares
|
| |
24
|
| | | | (10) | | | | | | (20) | | | | | | — | | |
Net cash used in financing activities
|
| | | | | | | (450,241) | | | | | | (40,321) | | | | | | (114,207) | | |
Effect of changes in exchange rates on cash and cash equivalents
|
| | | | | | | (38,052) | | | | | | (36,897) | | | | | | 40,605 | | |
(Decrease) increase in cash and cash equivalents
|
| | | | | | | (208,844) | | | | | | 258,789 | | | | | | 289,388 | | |
Cash and cash equivalents, beginning of year
|
| | | | | | | 1,027,222 | | | | | | 768,433 | | | | | | 479,045 | | |
Cash and cash equivalents, end of year
|
| |
30
|
| | | $ | 818,378 | | | | | $ | 1,027,222 | | | | | $ | 768,433 | | |
| | |
Years
|
|
Satellites
|
| |
12 to 15
|
|
Right-of-use assets
|
| |
2 to 27
|
|
Property and other equipment
|
| |
3 to 30
|
|
| | |
Years
|
|
Revenue backlog
|
| |
17
|
|
Customer relationships
|
| |
20 to 21
|
|
Customer contracts
|
| |
15
|
|
Concession rights
|
| |
5 to 15
|
|
Transponder rights
|
| |
16
|
|
Patents
|
| |
18
|
|
Years ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Broadcast
|
| | | $ | 411,407 | | | | | $ | 444,478 | | | | | $ | 455,125 | | |
Enterprise
|
| | | | 389,696 | | | | | | 444,732 | | | | | | 428,226 | | |
Consulting and other
|
| | | | 19,365 | | | | | | 21,683 | | | | | | 19,581 | | |
Revenue
|
| | | $ | 820,468 | | | | | $ | 910,893 | | | | | $ | 902,932 | | |
Years ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Broadcast
|
| | | $ | 1,300 | | | | | $ | 233 | | | | | $ | 315 | | |
Enterprise
|
| | | | 13,693 | | | | | | 8,323 | | | | | | 23,639 | | |
Total equipment sales
|
| | | $ | 14,993 | | | | | $ | 8,556 | | | | | $ | 23,954 | | |
Years ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Canada
|
| | | $ | 362,939 | | | | | $ | 395,235 | | | | | $ | 417,692 | | |
United States
|
| | | | 307,433 | | | | | | 329,634 | | | | | | 318,779 | | |
Europe, Middle East & Africa
|
| | | | 44,710 | | | | | | 50,911 | | | | | | 61,317 | | |
Latin America & Caribbean
|
| | | | 64,024 | | | | | | 73,120 | | | | | | 75,011 | | |
Asia & Australia
|
| | | | 41,362 | | | | | | 61,993 | | | | | | 30,133 | | |
Revenue
|
| | | $ | 820,468 | | | | | $ | 910,893 | | | | | $ | 902,932 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Canada
|
| | | $ | 624,303 | | | | | $ | 682,518 | | |
Europe, Middle East & Africa
|
| | | | 619,959 | | | | | | 685,562 | | |
United States
|
| | | | 71,659 | | | | | | 88,360 | | |
All others
|
| | | | 2,605 | | | | | | 2,493 | | |
Satellites, property and other equipment
|
| | | $ | 1,318,526 | | | | | $ | 1,458,933 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Canada
|
| | | $ | 718,880 | | | | | $ | 733,880 | | |
United States
|
| | | | 38,448 | | | | | | 39,395 | | |
Latin America & Caribbean
|
| | | | 15,114 | | | | | | 21,908 | | |
All others
|
| | | | 6,748 | | | | | | 7,608 | | |
Intangible assets
|
| | | $ | 779,190 | | | | | $ | 802,791 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Canada
|
| | | $ | 9,470 | | | | | $ | 7,624 | | |
Europe, Middle East & Africa
|
| | | | 452 | | | | | | 640 | | |
Other long-term assets
|
| | | $ | 9,922 | | | | | $ | 8,264 | | |
Years ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Compensation and employee benefits(a)
|
| | | $ | 89,882 | | | | | $ | 87,943 | | | | | $ | 98,350 | | |
Other operating expenses(b)
|
| | | | 57,622 | | | | | | 40,332 | | | | | | 45,596 | | |
Cost of sales(c)
|
| | | | 33,370 | | | | | | 37,224 | | | | | | 41,881 | | |
Operating expenses
|
| | | $ | 180,874 | | | | | $ | 165,499 | | | | | $ | 185,827 | | |
Years ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Loss on disposal of assets
|
| | | $ | (215) | | | | | $ | (862) | | | | | $ | (353) | | |
Other
|
| | | | — | | | | | | — | | | | | | 1,096 | | |
Other operating (losses) gains, net
|
| | | $ | (215) | | | | | $ | (862) | | | | | $ | 743 | | |
Years ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Interest on indebtedness
|
| | | $ | 164,253 | | | | | $ | 239,805 | | | | | $ | 231,015 | | |
Interest on derivative instruments
|
| | | | 11,625 | | | | | | (13,191) | | | | | | (7,105) | | |
Interest on satellite performance incentive payments
|
| | | | 2,930 | | | | | | 3,536 | | | | | | 4,134 | | |
Interest on significant financing component
|
| | | | 22,434 | | | | | | 25,484 | | | | | | 27,374 | | |
Interest on employee benefit plans (Note 29)
|
| | | | 1,169 | | | | | | 1,339 | | | | | | 1,488 | | |
Interest on leases
|
| | | | 1,349 | | | | | | 1,288 | | | | | | — | | |
Capitalized interest (Note 15)
|
| | | | — | | | | | | — | | | | | | (19,120) | | |
Interest expense
|
| | | $ | 203,760 | | | | | $ | 258,261 | | | | | $ | 237,786 | | |
Years ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Current tax expense
|
| | | $ | 77,138 | | | | | $ | 71,202 | | | | | $ | 98,841 | | |
Deferred tax recovery
|
| | | | (81,491) | | | | | | (56,080) | | | | | | (37,785) | | |
Tax (recovery) expense
|
| | | $ | (4,353) | | | | | $ | 15,122 | | | | | $ | 61,056 | | |
Year ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Income (loss) before tax
|
| | | $ | 241,225 | | | | | $ | 202,320 | | | | | $ | (29,880) | | |
Multiplied by the statutory income tax rates
|
| | | | 26.46% | | | | | | 26.56% | | | | | | 26.59% | | |
| | | | | 63,828 | | | | | | 53,736 | | | | | | (7,945) | | |
Income tax recorded at rates different from the Canadian tax rate
|
| | | | (22,875) | | | | | | (13,017) | | | | | | (10,823) | | |
Permanent differences
|
| | | | 1,548 | | | | | | (6,760) | | | | | | 50,458 | | |
Effect on deferred tax balances due to changes in income tax rates
|
| | | | (885) | | | | | | (2,829) | | | | | | (427) | | |
Effect of temporary differences not recognized as deferred
tax assets |
| | | | (43,941) | | | | | | (16,681) | | | | | | 35,416 | | |
Previously unrecognized tax losses and credits
|
| | | | — | | | | | | — | | | | | | (6,110) | | |
Change in estimates related to prior period(1)
|
| | | | (1,467) | | | | | | (311) | | | | | | — | | |
Other(1) | | | | | (561) | | | | | | 984 | | | | | | 487 | | |
Tax (recovery) expense
|
| | | $ | (4,353) | | | | | $ | 15,122 | | | | | $ | 61,056 | | |
Effective income tax rate
|
| | | | (1.80)% | | | | | | 7.47% | | | | | | (204.34)% | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Deferred tax assets | | | | | | | | | | | | | |
Foreign tax credits
|
| | | $ | 6,558 | | | | | $ | 5,710 | | |
Corporate interest restriction
|
| | | | — | | | | | | 11,393 | | |
Financing charges
|
| | | | 12,004 | | | | | | 17,152 | | |
Deferred revenue
|
| | | | 11,127 | | | | | | 13,071 | | |
Loss carry forwards
|
| | | | 29,715 | | | | | | 29,351 | | |
Employee benefits
|
| | | | 12,438 | | | | | | 8,282 | | |
Reserves
|
| | | | 1,222 | | | | | | — | | |
Other
|
| | | | 2,531 | | | | | | 2,209 | | |
Total deferred tax assets
|
| | | $ | 75,595 | | | | | $ | 87,168 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Deferred tax liabilities | | | | | | | | | | | | | |
Capital assets
|
| | | $ | (149,214) | | | | | $ | (178,317) | | |
Intangible assets
|
| | | | (158,957) | | | | | | (237,269) | | |
Unrealized foreign exchange gains
|
| | | | (13,405) | | | | | | (7,932) | | |
Total deferred tax liabilities
|
| | | $ | (321,576) | | | | | $ | (423,518) | | |
Deferred tax liabilities, net
|
| | | $ | (245,981) | | | | | $ | (336,350) | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Trade receivables
|
| | | $ | 47,368 | | | | | $ | 53,893 | | |
Less: Allowance for doubtful accounts
|
| | | | (7,257) | | | | | | (1,779) | | |
Net trade receivables
|
| | | | 40,111 | | | | | | 52,114 | | |
Other receivables
|
| | | | 11,817 | | | | | | 11,948 | | |
Trade and other receivables
|
| | | $ | 51,928 | | | | | $ | 64,062 | | |
Years ended December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Allowance for doubtful accounts, beginning of year
|
| | | $ | 1,779 | | | | | $ | 5,136 | | |
Provisions for impaired receivables
|
| | | | 6,069 | | | | | | 604 | | |
Receivables written off
|
| | | | (146) | | | | | | (4,899) | | |
Impact of foreign exchange
|
| | | | (445) | | | | | | 938 | | |
Allowance for doubtful accounts, end of year
|
| | | $ | 7,257 | | | | | $ | 1,779 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Security deposits
|
| | | $ | 448 | | | | | $ | 210 | | |
Other current financial assets
|
| | | $ | 448 | | | | | $ | 210 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Prepaid expenses
|
| | | $ | 5,942 | | | | | $ | 12,896 | | |
Income tax recoverable
|
| | | | 3,116 | | | | | | 26,730 | | |
Inventory(a) | | | | | 5,224 | | | | | | 3,556 | | |
Deferred charges(b)
|
| | | | 278 | | | | | | 307 | | |
Other
|
| | | | 8,301 | | | | | | 235 | | |
Prepaid expenses and other current assets
|
| | | $ | 22,861 | | | | | $ | 43,724 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Long-term receivables
|
| | | $ | 17,298 | | | | | $ | 18,932 | | |
Security deposits
|
| | | | 5,861 | | | | | | 5,977 | | |
Derivative assets (Note 27)
|
| | | | 30,266 | | | | | | 32,821 | | |
Other long-term financial assets
|
| | | $ | 53,425 | | | | | $ | 57,730 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Prepaid expenses
|
| | | $ | 452 | | | | | $ | 640 | | |
Deferred charges (Note 12)
|
| | | | 775 | | | | | | 1,039 | | |
Income tax recoverable
|
| | | | 8,418 | | | | | | 6,283 | | |
Other
|
| | | | 277 | | | | | | 302 | | |
Other long-term assets
|
| | | $ | 9,922 | | | | | $ | 8,264 | | |
| | |
Satellites
|
| |
Property and
other equipment |
| |
Right-of-use
assets(1) |
| |
Assets under
construction |
| |
Total
|
| |||||||||||||||
Cost as at January 1, 2019
|
| | | $ | 3,669,570 | | | | | $ | 255,055 | | | | | $ | — | | | | | $ | 11,137 | | | | | $ | 3,935,762 | | |
Cumulative effect adjustment(3)
|
| | | | — | | | | | | (474) | | | | | | 26,732 | | | | | | — | | | | | | 26,258 | | |
Additions
|
| | | | — | | | | | | 797 | | | | | | 2,798 | | | | | | 7,843 | | | | | | 11,438 | | |
Disposals/retirements
|
| | | | (77,322) | | | | | | (7,306) | | | | | | (104) | | | | | | — | | | | | | (84,732) | | |
Reclassifications and transfers from assets under construction
|
| | | | — | | | | | | 7,652 | | | | | | — | | | | | | (7,652) | | | | | | — | | |
Impact of foreign exchange
|
| | | | (39,133) | | | | | | (1,486) | | | | | | (285) | | | | | | (153) | | | | | | (41,057) | | |
Cost as at December 31, 2019
|
| | | | 3,553,115 | | | | | | 254,238 | | | | | | 29,141 | | | | | | 11,175 | | | | | | 3,847,669 | | |
Additions(2) | | | | | — | | | | | | 1,635 | | | | | | 6,813 | | | | | | 87,444 | | | | | | 95,892 | | |
Disposals/retirements
|
| | | | (93,755) | | | | | | (3,285) | | | | | | — | | | | | | — | | | | | | (97,040) | | |
Reclassifications and transfers from assets under construction
|
| | | | — | | | | | | 4,463 | | | | | | — | | | | | | (4,463) | | | | | | — | | |
Impact of foreign exchange
|
| | | | (16,028) | | | | | | (1,259) | | | | | | (438) | | | | | | (4,402) | | | | | | (22,127) | | |
Cost as at December 31, 2020
|
| | | $ | 3,443,332 | | | | | $ | 255,792 | | | | | $ | 35,516 | | | | | $ | 89,754 | | | | | $ | 3,824,394 | | |
Accumulated depreciation and impairment as
at January 1, 2019 |
| | | $ | (2,072,796) | | | | | $ | (159,927) | | | | | $ | — | | | | | $ | — | | | | | $ | (2,232,723) | | |
Cumulative effect adjustment(3)
|
| | | | — | | | | | | 92 | | | | | | — | | | | | | — | | | | | | 92 | | |
Depreciation
|
| | | | (225,675) | | | | | | (14,890) | | | | | | (2,401) | | | | | | — | | | | | | (242,966) | | |
Disposals/retirements
|
| | | | 77,322 | | | | | | 6,379 | | | | | | — | | | | | | — | | | | | | 83,701 | | |
Impact of foreign exchange
|
| | | | 2,328 | | | | | | 798 | | | | | | 34 | | | | | | — | | | | | | 3,160 | | |
Accumulated depreciation and impairment as
at December 31, 2019 |
| | | | (2,218,821) | | | | | | (167,548) | | | | | | (2,367) | | | | | | — | | | | | | (2,388,736) | | |
Depreciation
|
| | | | (200,041) | | | | | | (13,644) | | | | | | (3,200) | | | | | | — | | | | | | (216,885) | | |
Disposals/retirements
|
| | | | 93,755 | | | | | | 3,007 | | | | | | — | | | | | | — | | | | | | 96,762 | | |
Impact of foreign exchange
|
| | | | 2,178 | | | | | | 705 | | | | | | 108 | | | | | | — | | | | | | 2,991 | | |
Accumulated depreciation and impairment as
at December 31, 2020 |
| | | $ | (2,322,929) | | | | | $ | (177,480) | | | | | $ | (5,459) | | | | | $ | — | | | | | $ | (2,505,868) | | |
Net carrying values
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As at December 31, 2019
|
| | | $ | 1,334,294 | | | | | $ | 86,690 | | | | | $ | 26,774 | | | | | $ | 11,175 | | | | | $ | 1,458,933 | | |
As at December 31, 2020
|
| | | $ | 1,120,403 | | | | | $ | 78,312 | | | | | $ | 30,057 | | | | | $ | 89,754 | | | | | $ | 1,318,526 | | |
| | |
Orbital
slots |
| |
Trade
name |
| |
Intellectual
property |
| |
Total
indefinite life intangible assets |
| ||||||||||||
Cost as at January 1, 2019
|
| | | $ | 609,995 | | | | | $ | 17,000 | | | | | $ | 47,049 | | | | | $ | 674,044 | | |
Additions(1) | | | | | — | | | | | | — | | | | | | 20,137 | | | | | | 20,137 | | |
Disposals/retirements
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Impact of foreign exchange
|
| | | | (1,974) | | | | | | — | | | | | | (1,364) | | | | | | (3,338) | | |
Cost as at December 31, 2019 and January 1, 2020
|
| | | | 608,021 | | | | | | 17,000 | | | | | | 65,822 | | | | | | 690,843 | | |
Additions
|
| | | | — | | | | | | — | | | | | | 5 | | | | | | 5 | | |
Disposals/retirements
|
| | | | — | | | | | | — | | | | | | (229) | | | | | | (229) | | |
Impact of foreign exchange
|
| | | | (808) | | | | | | — | | | | | | (757) | | | | | | (1,565) | | |
Cost as at December 31, 2020
|
| | | $ | 607,213 | | | | | $ | 17,000 | | | | | $ | 64,841 | | | | | $ | 689,054 | | |
Accumulated impairment as at January 1, 2019
|
| | | $ | (1,100) | | | | | $ | — | | | | | $ | — | | | | | $ | (1,100) | | |
Impairment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Accumulated impairment as at December 31, 2019 and January 1, 2020
|
| | | | (1,100) | | | | | | — | | | | | | — | | | | | | (1,100) | | |
Impairment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Accumulated impairment as at December 31, 2020
|
| | | $ | (1,100) | | | | | $ | — | | | | | $ | — | | | | | $ | (1,100) | | |
Net carrying values | | | | | | | | | | | | | | | | | | | | | | | | | |
As at December 31, 2019
|
| | | $ | 606,921 | | | | | $ | 17,000 | | | | | $ | 65,822 | | | | | $ | 689,743 | | |
As at December 31, 2020
|
| | | $ | 606,113 | | | | | $ | 17,000 | | | | | $ | 64,841 | | | | | $ | 687,954 | | |
| | |
Revenue
backlog |
| |
Customer
relationships |
| |
Customer
contracts |
| |
Transponder
rights |
| |
Concession
rights |
| |
Other
|
| |
Total finite
life intangible assets |
| |||||||||||||||||||||
Cost as at January 1, 2019
|
| | | $ | 235,955 | | | | | $ | 198,727 | | | | | $ | 23,142 | | | | | $ | 16,718 | | | | | $ | 32,874 | | | | | $ | 59 | | | | | $ | 507,475 | | |
Additions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 162 | | | | | | — | | | | | | 162 | | |
Disposals/retirements
|
| | | | (11,051) | | | | | | — | | | | | | (10,284) | | | | | | — | | | | | | (290) | | | | | | — | | | | | | (21,625) | | |
Impact of foreign exchange
|
| | | | (1,240) | | | | | | (251) | | | | | | — | | | | | | — | | | | | | (2,598) | | | | | | — | | | | | | (4,089) | | |
Cost as at December 31, 2019 and January 1, 2020
|
| | | | 223,664 | | | | | | 198,476 | | | | | | 12,858 | | | | | | 16,718 | | | | | | 30,148 | | | | | | 59 | | | | | | 481,923 | | |
Additions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 24 | | | | | | — | | | | | | 24 | | |
Disposals/retirements
|
| | | | — | | | | | | (3,943) | | | | | | (240) | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,183) | | |
Impact of foreign exchange
|
| | | | — | | | | | | 12 | | | | | | — | | | | | | — | | | | | | (7,258) | | | | | | — | | | | | | (7,246) | | |
Cost as at December 31, 2020
|
| | | $ | 223,664 | | | | | $ | 194,545 | | | | | $ | 12,618 | | | | | $ | 16,718 | | | | | $ | 22,914 | | | | | $ | 59 | | | | | $ | 470,518 | | |
Accumulated amortization and impairment as at January 1, 2019
|
| | | $ | (207,770) | | | | | $ | (130,564) | | | | | $ | (12,116) | | | | | $ | (11,866) | | | | | $ | (6,912) | | | | | $ | (37) | | | | | $ | (369,265) | | |
Amortization
|
| | | | (7,291) | | | | | | (7,495) | | | | | | (5,119) | | | | | | (1,078) | | | | | | (2,291) | | | | | | (3) | | | | | | (23,277) | | |
Disposals/retirements
|
| | | | 11,051 | | | | | | — | | | | | | 10,284 | | | | | | — | | | | | | 234 | | | | | | — | | | | | | 21,569 | | |
Impact of foreign exchange
|
| | | | 1,227 | | | | | | 142 | | | | | | — | | | | | | — | | | | | | 729 | | | | | | — | | | | | | 2,098 | | |
Accumulated amortization and impairment as at December 31, 2019 and January 1, 2020
|
| | | | (202,783) | | | | | | (137,917) | | | | | | (6,951) | | | | | | (12,944) | | | | | | (8,240) | | | | | | (40) | | | | | | (368,875) | | |
Amortization
|
| | | | (6,198) | | | | | | (6,847) | | | | | | (834) | | | | | | (1,078) | | | | | | (2,235) | | | | | | (3) | | | | | | (17,195) | | |
Disposals/retirements
|
| | | | — | | | | | | 3,943 | | | | | | 240 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,183 | | |
Impact of foreign exchange
|
| | | | — | | | | | | (70) | | | | | | — | | | | | | — | | | | | | 2,675 | | | | | | — | | | | | | 2,605 | | |
Accumulated amortization and impairment as at
December 31, 2020 |
| | | $ | (208,981) | | | | | $ | (140,891) | | | | | $ | (7,545) | | | | | $ | (14,022) | | | | | $ | (7,800) | | | | | $ | (43) | | | | | $ | (379,282) | | |
Net carrying values | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As at December 31, 2019
|
| | | $ | 20,881 | | | | | $ | 60,559 | | | | | $ | 5,907 | | | | | $ | 3,774 | | | | | $ | 21,908 | | | | | $ | 19 | | | | | $ | 113,048 | | |
As at December 31, 2020
|
| | | $ | 14,683 | | | | | $ | 53,654 | | | | | $ | 5,073 | | | | | $ | 2,696 | | | | | $ | 15,114 | | | | | $ | 16 | | | | | $ | 91,236 | | |
| | |
As at December 31, 2020
|
| |
As at December 31, 2019
|
| ||||||||||||||||||||||||||||||
| | |
Cost
|
| |
Accumulated
amortization and impairment |
| |
Net carrying
value |
| |
Cost
|
| |
Accumulated
amortization and impairment |
| |
Net carrying
value |
| ||||||||||||||||||
Indefinite life intangibles
|
| | | $ | 689,054 | | | | | $ | (1,100) | | | | | $ | 687,954 | | | | | $ | 690,843 | | | | | $ | (1,100) | | | | | $ | 689,743 | | |
Finite life intangibles
|
| | | | 470,518 | | | | | | (379,282) | | | | | | 91,236 | | | | | | 481,923 | | | | | | (368,875) | | | | | | 113,048 | | |
Total intangibles
|
| | | $ | 1,159,572 | | | | | $ | (380,382) | | | | | $ | 779,190 | | | | | $ | 1,172,766 | | | | | $ | (369,975) | | | | | $ | 802,791 | | |
| | |
Years
|
|
Revenue backlog
|
| |
4
|
|
Customer relationships
|
| |
6 to 8
|
|
Customer contracts
|
| |
6
|
|
Transponder rights
|
| |
2
|
|
Concession rights
|
| |
2 to 11
|
|
Patent
|
| |
5
|
|
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Trade payables
|
| | | $ | 5,393 | | | | | $ | 4,561 | | |
Other payables and accrued liabilities(a)
|
| | | | 24,698 | | | | | | 21,686 | | |
Trade and other payables
|
| | | $ | 30,091 | | | | | $ | 26,247 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Derivative liabilities (Note 27)
|
| | | $ | 12,581 | | | | | $ | 3,206 | | |
Security deposits
|
| | | | 1,141 | | | | | | 1,277 | | |
Satellite performance incentive payments
|
| | | | 7,996 | | | | | | 9,608 | | |
Interest payable(a)
|
| | | | 12,046 | | | | | | 20,563 | | |
Other
|
| | | | 2,116 | | | | | | 3,627 | | |
Other current financial liabilities
|
| | | $ | 35,880 | | | | | $ | 38,281 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Deferred revenue (Note 22)
|
| | | $ | 81,759 | | | | | $ | 65,704 | | |
Decommissioning liabilities (Note 22)
|
| | | | 790 | | | | | | 826 | | |
Uncertain tax positions
|
| | | | 1,315 | | | | | | 1,315 | | |
Income taxes payable
|
| | | | 7,326 | | | | | | 118 | | |
Lease liabilities
|
| | | | 2,131 | | | | | | 1,866 | | |
Other
|
| | | | 2,834 | | | | | | 2,486 | | |
Other current liabilities
|
| | | $ | 96,155 | | | | | $ | 72,315 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Derivative liabilities (Note 27)
|
| | | $ | 5,448 | | | | | $ | 4,710 | | |
Security deposits
|
| | | | 473 | | | | | | 458 | | |
Satellite performance incentive payments
|
| | | | 29,578 | | | | | | 37,343 | | |
Other long-term financial liabilities
|
| | | $ | 35,499 | | | | | $ | 42,511 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Deferred revenue(b)
|
| | | $ | 332,363 | | | | | $ | 374,642 | | |
Accrued benefit liabilities (Note 29)
|
| | | | 47,984 | | | | | | 32,074 | | |
Uncertain tax positions
|
| | | | 175 | | | | | | 175 | | |
Decommissioning liabilities(a)
|
| | | | 3,145 | | | | | | 2,104 | | |
Lease liabilities(c)
|
| | | | 26,920 | | | | | | 26,716 | | |
Other long-term liabilities
|
| | | $ | 410,587 | | | | | $ | 435,711 | | |
|
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
Thereafter
|
| |
Total
|
|
|
$642
|
| |
$518
|
| |
$435
|
| |
$305
|
| |
$217
|
| |
$569
|
| |
$2,686
|
|
|
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
Thereafter
|
| |
Total
|
|
|
$3,388
|
| |
$3,032
|
| |
$2,981
|
| |
$2,795
|
| |
$2,518
|
| |
$27,840
|
| |
$42,554
|
|
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Senior Secured Credit Facilities(a)
|
| | | | | | | | | | | | |
Revolving Credit Facility
|
| | | $ | — | | | | | $ | — | | |
Term Loan B – U.S. Facility (December 31, 2020 – US$1,552,815,
December 31, 2019 – US$1,908,500) |
| | | | 1,975,957 | | | | | | 2,479,142 | | |
Senior Notes (US$550,000)(b)
|
| | | | 699,875 | | | | | | 714,450 | | |
Senior Secured Notes (US$400,000)(c)
|
| | | | 509,000 | | | | | | 519,600 | | |
| | | | | 3,184,832 | | | | | | 3,713,192 | | |
Less: deferred financing costs and prepayment options(d)
|
| | | | 2,320 | | | | | | (393) | | |
| | | | | 3,187,152 | | | | | | 3,712,799 | | |
Less: current indebtedness
|
| | | | — | | | | | | (24,408) | | |
Long-term indebtedness
|
| | | $ | 3,187,152 | | | | | $ | 3,688,391 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Short-term deferred financing costs
|
| | | $ | — | | | | | $ | 3,385 | | |
Long-term deferred financing costs
|
| | | | 24,888 | | | | | | 24,934 | | |
| | | | $ | 24,888 | | | | | $ | 28,319 | | |
Short-term prepayment options
|
| | | $ | — | | | | | $ | (3,001) | | |
Long-term prepayment options
|
| | | | (24,925) | | | | | | (24,925) | | |
| | | | $ | (24,925) | | | | | $ | (27,926) | | |
Short-term loss on repayment
|
| | | $ | — | | | | | $ | — | | |
Long-term loss on repayment
|
| | | | (2,283) | | | | | | — | | |
| | | | $ | (2,283) | | | | | $ | — | | |
Deferred financing costs, prepayment options and loss on repayment
|
| | | $ | (2,320) | | | | | $ | 393 | | |
| | |
2020
|
| |
2019
|
| ||||||||||||||||||
As at December 31,
|
| |
Number of
shares |
| |
Stated value
|
| |
Number of
shares |
| |
Stated value
|
| ||||||||||||
Common Shares
|
| | | | 74,252,460 | | | | | $ | 26,580 | | | | | | 74,252,460 | | | | | $ | 26,580 | | |
Voting Participating Preferred Shares
|
| | | | 7,034,444 | | | | | | 48,246 | | | | | | 7,034,444 | | | | | | 48,246 | | |
Non-Voting Participating Preferred Shares
|
| | | | 38,508,117 | | | | | | 80,862 | | | | | | 38,477,137 | | | | | | 80,059 | | |
Director Voting Preferred Shares
|
| | | | 1,000 | | | | | | 10 | | | | | | 1,000 | | | | | | 10 | | |
Share capital
|
| | | | | | | | | $ | 155,698 | | | | | | | | | | | $ | 154,895 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Shareholders’ equity (excluding reserves)
|
| | | $ | 1,422,212 | | | | | $ | 1,185,950 | | |
Debt financing (excluding deferred financing costs, prepayment options and loss on repayment (December 31, 2019 – deferred financing costs and prepayment options))
|
| | | $ | 3,184,832 | | | | | $ | 3,713,192 | | |
| | |
Carrying
amount |
| |
Contractual
cash flows (undiscounted) |
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
Thereafter
|
| ||||||||||||||||||||||||
Trade and other payables
|
| | | $ | 30,091 | | | | | $ | 30,091 | | | | | $ | 30,091 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Customer and other deposits
|
| | | | 1,614 | | | | | | 1,614 | | | | | | 1,270 | | | | | | 17 | | | | | | 83 | | | | | | 17 | | | | | | 83 | | | | | | 144 | | |
Satellite performance incentive payments
|
| | | | 37,948 | | | | | | 47,296 | | | | | | 9,316 | | | | | | 8,360 | | | | | | 7,518 | | | | | | 5,918 | | | | | | 3,133 | | | | | | 13,051 | | |
Other financial liabilities
|
| | | | 2,116 | | | | | | 2,116 | | | | | | 2,116 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Interest rate swaps
|
| | | | 18,029 | | | | | | 18,330 | | | | | | 12,709 | | | | | | 5,621 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Indebtedness(1) | | | | | 3,196,504 | | | | | | 4,013,282 | | | | | | 129,552 | | | | | | 129,359 | | | | | | 129,358 | | | | | | 129,453 | | | | | | 128,404 | | | | | | 3,367,156 | | |
| | | | $ | 3,286,302 | | | | | $ | 4,112,729 | | | | | $ | 185,054 | | | | | $ | 143,357 | | | | | $ | 136,959 | | | | | $ | 135,388 | | | | | $ | 131,620 | | | | | $ | 3,380,351 | | |
| | |
Interest
payable |
| |
Interest
payments |
|
Satellite performance incentive payments
|
| |
$374
|
| |
$9,558
|
|
Indebtedness
|
| |
$11,672
|
| |
$828,450
|
|
As at December 31, 2020
|
| |
FVTPL
|
| |
Amortized cost
|
| |
Total
|
| |
Fair value
|
| |
Fair value
hierarchy |
| ||||||||||||
Cash and cash equivalents
|
| | | $ | — | | | | | $ | 818,378 | | | | | $ | 818,378 | | | | | $ | 818,378 | | | |
Level 1
|
|
Trade and other receivables
|
| | | | — | | | | | | 51,928 | | | | | | 51,928 | | | | | | 51,928 | | | |
(3)
|
|
Other current financial assets
|
| | | | — | | | | | | 448 | | | | | | 448 | | | | | | 448 | | | |
Level 1
|
|
Other long-term financial assets(1)
|
| | | | 30,266 | | | | | | 23,159 | | | | | | 53,425 | | | | | | 53,425 | | | |
Level 1,
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Level 2
|
|
Trade and other payables
|
| | | | — | | | | | | (30,091) | | | | | | (30,091) | | | | | | (30,091) | | | |
(3)
|
|
Other current financial liabilities
|
| | | | (12,581) | | | | | | (23,299) | | | | | | (35,880) | | | | | | (37,921) | | | |
Level 2
|
|
Other long-term financial liabilities
|
| | | | (5,448) | | | | | | (30,051) | | | | | | (35,499) | | | | | | (36,357) | | | |
Level 2
|
|
Indebtedness(2) | | | | | — | | | | | | (3,184,832) | | | | | | (3,184,832) | | | | | | (3,214,543) | | | |
Level 2
|
|
| | | | $ | 12,237 | | | | | $ | (2,374,360) | | | | | $ | (2,362,123) | | | | | $ | (2,394,733) | | | | | |
As at December 31, 2019
|
| |
FVTPL
|
| |
Amortized cost
|
| |
Total
|
| |
Fair value
|
| |
Fair value
hierarchy |
| ||||||||||||
Cash and cash equivalents
|
| | | $ | — | | | | | $ | 1,027,222 | | | | | $ | 1,027,222 | | | | | $ | 1,027,222 | | | |
Level 1
|
|
Trade and other receivables
|
| | | | — | | | | | | 64,062 | | | | | | 64,062 | | | | | | 64,062 | | | |
(3)
|
|
Other current financial assets
|
| | | | — | | | | | | 210 | | | | | | 210 | | | | | | 210 | | | |
Level 1
|
|
Other long-term financial assets(1)
|
| | | | 32,821 | | | | | | 24,909 | | | | | | 57,730 | | | | | | 57,730 | | | |
Level 1,
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Level 2
|
|
Trade and other payables
|
| | | | — | | | | | | (26,247) | | | | | | (26,247) | | | | | | (26,247) | | | |
(3)
|
|
Other current financial liabilities
|
| | | | (3,206) | | | | | | (35,075) | | | | | | (38,281) | | | | | | (40,748) | | | |
Level 2
|
|
Other long-term financial liabilities
|
| | | | (4,710) | | | | | | (37,801) | | | | | | (42,511) | | | | | | (42,493) | | | |
Level 2
|
|
Indebtedness(2) | | | | | — | | | | | | (3,713,192) | | | | | | (3,713,192) | | | | | | (3,760,656) | | | |
Level 2
|
|
| | | | $ | 24,905 | | | | | $ | (2,695,912) | | | | | $ | (2,671,007) | | | | | $ | (2,720,920) | | | | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Term Loan B – U.S. Facility – Senior Secured Credit Facilities
|
| | | | 98.88% | | | | | | 100.25% | | |
Senior Notes
|
| | | | 104.76% | | | | | | 104.25% | | |
Senior Secured Notes
|
| | | | 103.64% | | | | | | 102.10% | | |
As at December 31, 2020
|
| |
Other long-
term financial assets |
| |
Other
current financial liabilities |
| |
Other long-
term financial liabilities |
| |
Total
|
| ||||||||||||
Interest rate swaps
|
| | | $ | — | | | | | $ | (12,581) | | | | | $ | (5,448) | | | | | $ | (18,029) | | |
Prepayment options
|
| | | | 30,266 | | | | | | — | | | | | | — | | | | | | 30,266 | | |
| | | | $ | 30,266 | | | | | $ | (12,581) | | | | | $ | (5,448) | | | | | $ | 12,237 | | |
As at December 31, 2019
|
| |
Other long-
term financial assets |
| |
Other
current financial liabilities |
| |
Other long-
term financial liabilities |
| |
Total
|
| ||||||||||||
Interest rate swaps
|
| | | $ | — | | | | | $ | (3,206) | | | | | $ | (4,710) | | | | | $ | (7,916) | | |
Prepayment options
|
| | | | 32,821 | | | | | | — | | | | | | — | | | | | | 32,821 | | |
| | | | $ | 32,821 | | | | | $ | (3,206) | | | | | $ | (4,710) | | | | | $ | 24,905 | | |
|
Fair value, December 31, 2018 and January 1, 2019
|
| | | $ | 46,795 | | |
| Derivatives recognized at inception | | | | | | | |
|
Prepayment option – Senior Notes
|
| | | | 17,829 | | |
|
Prepayment option – Senior Secured Notes
|
| | | | 10,562 | | |
| Unrealized gains (losses) on derivatives | | | | | | | |
|
Interest rate floor
|
| | | | 5,368 | | |
|
Prepayment options
|
| | | | (12,391) | | |
|
Interest rate swaps
|
| | | | (42,649) | | |
|
Impact of foreign exchange
|
| | | | (609) | | |
|
Fair value, December 31, 2019
|
| | | | 24,905 | | |
| Unrealized losses on derivatives | | | | | | | |
|
Prepayment options
|
| | | | (2,308) | | |
|
Interest rate swaps
|
| | | | (10,807) | | |
|
Impact of foreign exchange
|
| | | | 447 | | |
|
Fair value, December 31, 2020
|
| | | $ | 12,237 | | |
Year authorized
|
| |
Quantity
|
| |||
2008
|
| | | | 8,824,646 | | |
2013
|
| | | | 4,036,729 | | |
2015
|
| | | | 62,404 | | |
2017
|
| | | | 350,000 | | |
2018
|
| | | | 3,280,000 | | |
2019
|
| | | | 500,000 | | |
2020
|
| | | | 451,266 | | |
| | |
Time vesting
option plans |
| |
Performance vesting
option plans |
| ||||||||||||||||||
| | |
Number of
options |
| |
Weighted
average exercise price |
| |
Number of
options |
| |
Weighted
average exercise price |
| ||||||||||||
Outstanding at December 31, 2018 and January 1, 2019
|
| | | | 7,102,864 | | | | | $ | 25.56 | | | | | | 432,102 | | | | | $ | 11.07 | | |
Granted
|
| | | | 522,372 | | | | | | | | | | | | — | | | | | | | | |
Forfeited
|
| | | | (62,499) | | | | | | | | | | | | — | | | | | | | | |
Exercised (Note 24)
|
| | | | (18,120) | | | | | | | | | | | | (22,149) | | | | | | | | |
Expired
|
| | | | — | | | | | | | | | | | | — | | | | | | | | |
Outstanding at December 31, 2019 and January 1, 2020
|
| | | | 7,544,617 | | | | | $ | 25.63 | | | | | | 409,953 | | | | | $ | 11.07 | | |
Granted
|
| | | | 650,000 | | | | | | | | | | | | — | | | | | | | | |
Forfeited
|
| | | | (246,049) | | | | | | | | | | | | (3,691) | | | | | | | | |
Exercised
|
| | | | — | | | | | | | | | | | | — | | | | | | | | |
Expired
|
| | | | — | | | | | | | | | | | | — | | | | | | | | |
Outstanding at December 31, 2020
|
| | | | 7,948,568 | | | | | $ | 25.83 | | | | | | 406,262 | | | | | $ | 11.07 | | |
|
Outstanding, January 1, 2019
|
| | | | 200,000 | | |
|
Settled
|
| | | | (66,667) | | |
|
Outstanding, December 31, 2019 and January 1, 2020
|
| | | | 133,333 | | |
|
Settled
|
| | | | (66,667) | | |
|
Outstanding, December 31, 2020
|
| | | | 66,666 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Time vesting option plans
|
| | | | 5,779,565 | | | | | | 4,762,335 | | |
Performance vesting option plans
|
| | | | 406,266 | | | | | | 409,953 | | |
Weighted average remaining life
|
| |
6 years
|
| |
7 years
|
|
Years ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Operating expenses
|
| | | $ | 12,500 | | | | | $ | 16,035 | | | | | $ | 29,505 | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Dividend yield
|
| | | | —% | | | | | | —% | | | | | | —% | | |
Expected volatility
|
| | | | 32.7% | | | | | | 32.4% | | | | | | 31.7% | | |
Risk-free interest rate
|
| | | | 2.79% | | | | | | 2.93% | | | | | | 2.94% | | |
Expected life (years)
|
| | | | 10 | | | | | | 10 | | | | | | 10 | | |
| | |
Pension plans
|
| |
Other post-employment benefit plans
|
| ||||||||||||||||||||||||||||||
Years ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2020
|
| |
2019
|
| |
2018
|
| ||||||||||||||||||
Consolidated statements of income (loss) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses
|
| | | $ | 7,188 | | | | | $ | 6,198 | | | | | $ | 6,345 | | | | | $ | 145 | | | | | $ | 116 | | | | | $ | 276 | | |
Interest expense
|
| | | $ | 423 | | | | | $ | 524 | | | | | $ | 658 | | | | | $ | 746 | | | | | $ | 815 | | | | | $ | 830 | | |
Consolidated statements of comprehensive
income (loss) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Actuarial losses (gains) on employee benefit plans
|
| | | $ | 11,390 | | | | | $ | (3,325) | | | | | $ | (4,555) | | | | | $ | 2,303 | | | | | $ | 2,191 | | | | | $ | (3,200) | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Pension benefits
|
| | | $ | 22,070 | | | | | $ | 8,566 | | |
Other post-employment benefits
|
| | | | 25,914 | | | | | | 23,508 | | |
Accrued benefit liabilities
|
| | | $ | 47,984 | | | | | $ | 32,074 | | |
| | |
2020
|
| |
2019
|
| ||||||||||||||||||
As at December 31,
|
| |
Pension
|
| |
Other
|
| |
Pension
|
| |
Other
|
| ||||||||||||
Present value of funded obligations
|
| | | $ | 375,222 | | | | | $ | — | | | | | $ | 331,737 | | | | | $ | — | | |
Fair value of plan assets
|
| | | | (354,385) | | | | | | — | | | | | | (324,257) | | | | | | — | | |
| | | | | 20,837 | | | | | | — | | | | | | 7,480 | | | | | | — | | |
Present value of unfunded obligations
|
| | | | 1,233 | | | | | | 25,914 | | | | | | 1,086 | | | | | | 23,508 | | |
Accrued benefit liabilities
|
| | | $ | 22,070 | | | | | $ | 25,914 | | | | | $ | 8,566 | | | | | $ | 23,508 | | |
| | |
Pension
|
| |
Other
|
| |
Total
|
| |||||||||
Change in benefit obligations | | | | | | | | | | | | | | | | | | | |
Benefit obligation, January 1, 2020
|
| | | $ | 332,823 | | | | | $ | 23,508 | | | | | $ | 356,331 | | |
Current service cost
|
| | | | 6,695 | | | | | | 145 | | | | | | 6,840 | | |
Interest expense
|
| | | | 10,723 | | | | | | 746 | | | | | | 11,469 | | |
Remeasurements | | | | | | | | | | | | | | | | | | | |
Actuarial losses arising from plan experience
|
| | | | 2,212 | | | | | | 184 | | | | | | 2,396 | | |
Actuarial losses from change in demographic assumptions
|
| | | | — | | | | | | 11 | | | | | | 11 | | |
Actuarial losses from changes in financial assumptions
|
| | | | 33,278 | | | | | | 2,108 | | | | | | 35,386 | | |
Benefits paid
|
| | | | (10,294) | | | | | | (726) | | | | | | (11,020) | | |
Contributions by plan participants
|
| | | | 1,018 | | | | | | — | | | | | | 1,018 | | |
Foreign exchange
|
| | | | — | | | | | | (62) | | | | | | (62) | | |
Benefit obligation, December 31, 2020
|
| | | | 376,455 | | | | | | 25,914 | | | | | | 402,369 | | |
Change in fair value of plan assets | | | | | | | | | | | | | | | | | | | |
Fair value of plan assets, January 1, 2020
|
| | | | (324,257) | | | | | | — | | | | | | (324,257) | | |
Contributions by plan participants
|
| | | | (1,018) | | | | | | — | | | | | | (1,018) | | |
Contributions by employer
|
| | | | (5,497) | | | | | | (726) | | | | | | (6,223) | | |
Interest income
|
| | | | (10,300) | | | | | | — | | | | | | (10,300) | | |
Benefits paid
|
| | | | 10,294 | | | | | | 726 | | | | | | 11,020 | | |
Remeasurements | | | | | | | | | | | | | | | | | | | |
Return on plan assets, excluding interest income
|
| | | | (24,100) | | | | | | — | | | | | | (24,100) | | |
Administrative costs
|
| | | | 493 | | | | | | — | | | | | | 493 | | |
Fair value of plan assets, December 31, 2020
|
| | | | (354,385) | | | | | | — | | | | | | (354,385) | | |
Accrued benefit liabilities, December 31, 2020
|
| | | $ | 22,070 | | | | | $ | 25,914 | | | | | $ | 47,984 | | |
Change in benefit obligations | | | | | | | | | | | | | | | | | | | |
Benefit obligation, January 1, 2019
|
| | | $ | 293,969 | | | | | $ | 21,330 | | | | | $ | 315,299 | | |
Current service cost
|
| | | | 5,701 | | | | | | 116 | | | | | | 5,817 | | |
Interest expense
|
| | | | 11,241 | | | | | | 815 | | | | | | 12,056 | | |
Remeasurements | | | | | | | | | | | | | | | | | | | |
Actuarial losses arising from plan experience
|
| | | | 1,773 | | | | | | 235 | | | | | | 2,008 | | |
Actuarial losses from change in demographic assumptions
|
| | | | — | | | | | | 16 | | | | | | 16 | | |
Actuarial losses from changes in financial assumptions
|
| | | | 28,531 | | | | | | 1,940 | | | | | | 30,471 | | |
Benefits paid
|
| | | | (9,483) | | | | | | (758) | | | | | | (10,241) | | |
Contributions by plan participants
|
| | | | 1,091 | | | | | | — | | | | | | 1,091 | | |
Foreign exchange
|
| | | | — | | | | | | (186) | | | | | | (186) | | |
Benefit obligation, December 31, 2019
|
| | | | 332,823 | | | | | | 23,508 | | | | | | 356,331 | | |
| | |
Pension
|
| |
Other
|
| |
Total
|
| |||||||||
Change in fair value of plan assets | | | | | | | | | | | | | | | | | | | |
Fair value of plan assets, January 1, 2019
|
| | | | (283,064) | | | | | | — | | | | | | (283,064) | | |
Contributions by plan participants
|
| | | | (1,091) | | | | | | — | | | | | | (1,091) | | |
Contributions by employer
|
| | | | (5,736) | | | | | | (758) | | | | | | (6,494) | | |
Interest income
|
| | | | (10,717) | | | | | | — | | | | | | (10,717) | | |
Benefits paid
|
| | | | 9,483 | | | | | | 758 | | | | | | 10,241 | | |
Remeasurements | | | | | | | | | | | | | | | | | | | |
Return on plan assets, excluding interest income
|
| | | | (33,629) | | | | | | — | | | | | | (33,629) | | |
Administrative costs
|
| | | | 497 | | | | | | — | | | | | | 497 | | |
Fair value of plan assets, December 31, 2019
|
| | | | (324,257) | | | | | | — | | | | | | (324,257) | | |
Accrued benefit liabilities, December 31, 2019
|
| | | $ | 8,566 | | | | | $ | 23,508 | | | | | $ | 32,074 | | |
|
| | |
Pension
|
| |
Other
|
| ||||||
2021
|
| | | $ | 11,519 | | | | | $ | 901 | | |
2022
|
| | | $ | 12,096 | | | | | $ | 936 | | |
2023
|
| | | $ | 12,790 | | | | | $ | 972 | | |
2024
|
| | | $ | 13,558 | | | | | $ | 1,008 | | |
2025
|
| | | $ | 14,433 | | | | | $ | 1,044 | | |
2026 to 2030
|
| | | $ | 80,999 | | | | | $ | 6,620 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| ||||||
Equity securities | | | | | | | | | | | | | |
Canada
|
| | | | 22.9% | | | | | | 22.3% | | |
United States
|
| | | | 19.7% | | | | | | 19.8% | | |
International (other than United States)
|
| | | | 14.3% | | | | | | 14.1% | | |
Fixed income instruments | | | | | | | | | | | | | |
Canada
|
| | | | 41.0% | | | | | | 41.2% | | |
Cash and cash equivalents | | | | | | | | | | | | | |
Canada
|
| | | | 2.1% | | | | | | 2.6% | | |
| | |
Pension
|
| |
Other
|
| |
Pension
|
| |
Other
|
|
As at December 31,
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2019
|
|
Actuarial benefit obligation | | | | | | | | | | | | | |
Discount rate
|
| |
2.60%
|
| |
2.00% to 2.60%
|
| |
3.20%
|
| |
2.95% to 3.20%
|
|
Benefit costs for the year ended | | | | | | | | | | | | | |
Discount rate
|
| |
3.20%
|
| |
2.95% to 3.20%
|
| |
3.90%
|
| |
3.90% to 4.00%
|
|
Future salary growth
|
| |
2.50%
|
| |
N/A
|
| |
2.50%
|
| |
N/A
|
|
Health care cost trend rate
|
| |
N/A
|
| |
3.49% to 5.49%
|
| |
N/A
|
| |
3.49% to 5.49%
|
|
Other medical trend rates
|
| |
N/A
|
| |
4.00% to 4.56%
|
| |
N/A
|
| |
4.00% to 4.56%
|
|
| | |
Pension
|
| |
Other
|
| ||||||||||||||||||
As at December 31, 2020
|
| |
1% increase
|
| |
1% decrease
|
| |
1% increase
|
| |
1% decrease
|
| ||||||||||||
Discount rate
|
| | | $ | (53,058) | | | | | $ | 67,549 | | | | | $ | (3,486) | | | | | $ | 4,351 | | |
Future salary growth
|
| | | $ | 10,423 | | | | | $ | (9,165) | | | | | | N/A | | | | | | N/A | | |
Medical and dental trend rates
|
| | | | N/A | | | | | | N/A | | | | | $ | 2,222 | | | | | $ | (1,839) | | |
| | |
Pension
|
| |
Other
|
| ||||||||||||||||||
As at December 31, 2019
|
| |
1% increase
|
| |
1% decrease
|
| |
1% increase
|
| |
1% decrease
|
| ||||||||||||
Discount rate
|
| | | $ | (45,385) | | | | | $ | 57,745 | | | | | $ | (2,751) | | | | | $ | 3,576 | | |
Future salary growth
|
| | | $ | 9,856 | | | | | $ | (8,874) | | | | | | N/A | | | | | | N/A | | |
Medical and dental trend rates
|
| | | | N/A | | | | | | N/A | | | | | $ | 2,018 | | | | | $ | (1,531) | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Cash
|
| | | $ | 687,967 | | | | | $ | 542,537 | | | | | $ | 342,874 | | |
Short-term investments(1)
|
| | | | 130,411 | | | | | | 484,685 | | | | | | 425,559 | | |
Cash and cash equivalents
|
| | | $ | 818,378 | | | | | $ | 1,027,222 | | | | | $ | 768,433 | | |
Years ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Income taxes paid
|
| | | $ | (53,842) | | | | | $ | (101,952) | | | | | $ | (109,193) | | |
Income taxes received
|
| | | | 399 | | | | | | 6,497 | | | | | | 2,885 | | |
| | | | $ | (53,443) | | | | | $ | (95,455) | | | | | $ | (106,308) | | |
Years ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Interest paid
|
| | | $ | (188,969) | | | | | $ | (195,671) | | | | | $ | (207,339) | | |
Interest received
|
| | | | 8,997 | | | | | | 19,559 | | | | | | 11,802 | | |
Capitalized interest
|
| | | | — | | | | | | — | | | | | | 19,120 | | |
| | | | $ | (179,972) | | | | | $ | (176,112) | | | | | $ | (176,417) | | |
| | |
Indebtedness
|
| |
Satellite
performance incentive payments |
| |
Lease
liabilities |
| |||||||||
Balance as at January 1, 2020
|
| | | $ | 3,712,799 | | | | | $ | 46,951 | | | | | $ | 28,582 | | |
Cash outflows
|
| | | | (453,592) | | | | | | (9,031) | | | | | | (1,793) | | |
Loss on repayment (Note 23)
|
| | | | 2,284 | | | | | | — | | | | | | — | | |
Amortization of deferred financing costs, prepayment options and loss on repayment
|
| | | | 428 | | | | | | — | | | | | | — | | |
Non-cash additions
|
| | | | — | | | | | | — | | | | | | 2,788 | | |
Interest paid
|
| | | | — | | | | | | — | | | | | | (1,649) | | |
Interest accrued
|
| | | | — | | | | | | — | | | | | | 1,349 | | |
Other
|
| | | | — | | | | | | 182 | | | | | | (91) | | |
Impact of foreign exchange
|
| | | | (74,767) | | | | | | (528) | | | | | | (135) | | |
Balance as at December 31, 2020
|
| | | $ | 3,187,152 | | | | | $ | 37,574 | | | | | $ | 29,051 | | |
| | |
Indebtedness
|
| |
Satellite
performance incentive payments |
| |
Lease
liabilities |
| |||||||||
Balance as at January 1, 2019
|
| | | $ | 3,724,228 | | | | | $ | 58,913 | | | | | $ | 369 | | |
Cash outflows
|
| | | | (3,743,465) | | | | | | (9,644) | | | | | | (1,252) | | |
Cash inflows
|
| | | | 3,786,082 | | | | | | — | | | | | | — | | |
Write-off of deferred financing costs, interest rate floor, prepayment option and net gain on repricing/repayment (Note 23)
|
| | | | 107,065 | | | | | | — | | | | | | — | | |
Amortization of deferred financing costs, interest rate floor, prepayment options and net gain on repricing/repayment
|
| | | | 22,461 | | | | | | — | | | | | | — | | |
Debt issue costs
|
| | | | (28,082) | | | | | | — | | | | | | — | | |
Debt issue costs accrued
|
| | | | (573) | | | | | | | | | | | | | | |
Prepayment option at inception – Senior Notes
|
| | | | 17,829 | | | | | | — | | | | | | — | | |
Prepayment option at inception – Senior Secured Notes
|
| | | | 10,562 | | | | | | — | | | | | | — | | |
Cumulative effect adjustment
|
| | | | — | | | | | | — | | | | | | 26,851 | | |
Non-cash additions
|
| | | | — | | | | | | — | | | | | | 2,775 | | |
Interest paid
|
| | | | — | | | | | | — | | | | | | (984) | | |
Interest accrued
|
| | | | — | | | | | | — | | | | | | 1,288 | | |
Other
|
| | | | — | | | | | | 296 | | | | | | (236) | | |
Impact of foreign exchange
|
| | | | (183,308) | | | | | | (2,614) | | | | | | (229) | | |
Balance as at December 31, 2019
|
| | | $ | 3,712,799 | | | | | $ | 46,951 | | | | | $ | 28,582 | | |
| | |
Indebtedness
|
| |
Satellite
performance incentive payments |
| |
Capital
leases |
| |||||||||
Balance as at January 1, 2018
|
| | | $ | 3,543,377 | | | | | $ | 62,961 | | | | | $ | 369 | | |
Debt repricing costs
|
| | | | (10,190) | | | | | | — | | | | | | — | | |
Cash outflows
|
| | | | (94,951) | | | | | | (9,037) | | | | | | (29) | | |
Amortization of deferred financing costs, interest rate floor, prepayment option and net gain on repricing/repayment
|
| | | | 22,497 | | | | | | — | | | | | | — | | |
Loss on voluntary payment (Note 23)
|
| | | | 2,828 | | | | | | — | | | | | | — | | |
Gain on repricing (Note 24)
|
| | | | (6,901) | | | | | | — | | | | | | — | | |
Cumulative effect adjustment (Note 23)
|
| | | | (36,072) | | | | | | — | | | | | | — | | |
Other
|
| | | | — | | | | | | 191 | | | | | | — | | |
Impact of foreign exchange
|
| | | | 303,640 | | | | | | 4,798 | | | | | | 29 | | |
Balance as at December 31, 2018
|
| | | $ | 3,724,228 | | | | | $ | 58,913 | | | | | $ | 369 | | |
As at December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Trade and other receivables
|
| | | $ | (4,173) | | | | | $ | (16,113) | | | | | $ | 22,056 | | |
Financial assets
|
| | | | 161 | | | | | | (3,897) | | | | | | (210) | | |
Other assets
|
| | | | (7,286) | | | | | | (13,183) | | | | | | 371 | | |
Trade and other payables
|
| | | | 1,860 | | | | | | 1,685 | | | | | | (4,695) | | |
Financial liabilities
|
| | | | (651) | | | | | | (2,125) | | | | | | (1,026) | | |
Other liabilities
|
| | | | 25,107 | | | | | | 19,691 | | | | | | 72,317 | | |
| | | | $ | 15,018 | | | | | $ | (13,942) | | | | | $ | 88,813 | | |
Years ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Satellites, property and other equipment
|
| | | $ | 2,963 | | | | | $ | 29,234 | | | | | $ | 3,795 | | |
Intangible assets
|
| | | $ | — | | | | | $ | (3,263) | | | | | $ | 3,635 | | |
| | |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025
|
| |
Thereafter
|
| |
Total
|
| |||||||||||||||||||||
Property leases
|
| | | $ | 1,141 | | | | | $ | 1,079 | | | | | $ | 1,065 | | | | | $ | 1,051 | | | | | $ | 969 | | | | | $ | 12,455 | | | | | $ | 17,760 | | |
Capital commitments
|
| | | | 32,055 | | | | | | 35,057 | | | | | | 86,785 | | | | | | — | | | | | | — | | | | | | — | | | | | | 153,897 | | |
Other operating commitments
|
| | | | 32,681 | | | | | | 6,483 | | | | | | 5,000 | | | | | | 4,244 | | | | | | 3,808 | | | | | | 11,438 | | | | | | 63,654 | | |
| | | | $ | 65,877 | | | | | $ | 42,619 | | | | | $ | 92,850 | | | | | $ | 5,295 | | | | | $ | 4,777 | | | | | $ | 23,893 | | | | | $ | 235,311 | | |
Company
|
| |
Country
|
| |
Method of Consolidation
|
| |
% voting rights
|
|
Infosat Communications LP
|
| |
Canada
|
| |
Fully consolidated
|
| |
100
|
|
Telesat Spectrum General Partnership
|
| |
Canada
|
| |
Fully consolidated
|
| |
100
|
|
Telesat LEO Holdings Inc.
|
| |
Canada
|
| |
Fully consolidated
|
| |
100
|
|
Telesat Technology Corporation
|
| |
Canada
|
| |
Fully consolidated
|
| |
100
|
|
Telesat Spectrum Corporation
|
| |
Canada
|
| |
Fully consolidated
|
| |
100
|
|
Telesat Spectrum Holdings Corporation
|
| |
Canada
|
| |
Fully consolidated
|
| |
100
|
|
Skynet Satellite Corporation
|
| |
United States
|
| |
Fully consolidated
|
| |
100
|
|
Telesat Network Services, Inc.
|
| |
United States
|
| |
Fully consolidated
|
| |
100
|
|
The SpaceConnection Inc.
|
| |
United States
|
| |
Fully consolidated
|
| |
100
|
|
Telesat Satellite LP
|
| |
United States
|
| |
Fully consolidated
|
| |
100
|
|
Telesat LEO Inc.
|
| |
United States
|
| |
Fully consolidated
|
| |
100
|
|
Telesat US Services, LLC
|
| |
United States
|
| |
Fully consolidated
|
| |
100
|
|
Infosat Able Holdings, Inc.
|
| |
United States
|
| |
Fully consolidated
|
| |
100
|
|
Telesat Brasil Capacidade de Satélites Ltda.
|
| |
Brazil
|
| |
Fully consolidated
|
| |
100
|
|
Telesat (IOM) Limited
|
| |
Isle of Man
|
| |
Fully consolidated
|
| |
100
|
|
Telesat International Limited
|
| |
United Kingdom
|
| |
Fully consolidated
|
| |
100
|
|
Year ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Short-term benefits (including salaries)
|
| | | $ | 13,058 | | | | | $ | 11,051 | | | | | $ | 16,853 | | |
Special payments(1)
|
| | | | 710 | | | | | | 948 | | | | | | 2,904 | | |
Post-employment benefits
|
| | | | 2,180 | | | | | | 2,773 | | | | | | 2,510 | | |
Share-based payments
|
| | | | 12,373 | | | | | | 15,649 | | | | | | 29,016 | | |
| | | | $ | 28,321 | | | | | $ | 30,421 | | | | | $ | 51,283 | | |
| | |
Sale of goods and services,
interest income |
| |
Purchase of goods and services,
interest expense |
| ||||||||||||||||||||||||||||||
Years ended December 31,
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2020
|
| |
2019
|
| |
2018
|
| ||||||||||||||||||
Revenue
|
| | | $ | 133 | | | | | $ | 133 | | | | | $ | 128 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Operating expenses
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 6,712 | | | | | $ | 6,645 | | | | | $ | 6,456 | | |
| | |
Amounts owed by related
parties |
| |
Amounts owed to
related parties |
| ||||||||||||||||||
At December 31,
|
| |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Current receivables/payables
|
| | | $ | — | | | | | $ | — | | | | | $ | 105 | | | | | $ | 204 | | |
(in Canadian dollars)
|
| |
Note
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| |||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | | | | | | | $ | 500 | | | | | $ | 500 | | |
Shareholder’s equity | | | | | | | | | | | | | | | | | | | |
Share capital
|
| | | | 4 | | | | | $ | 500 | | | | | $ | 500 | | |
(in Canadian dollars)
|
| |
Note
|
| | | | | | | |||
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | | | | | | | $ | 500 | | |
Shareholder’s equity | | | | | | | | | | | | | |
Share capital
|
| | | | 4 | | | | | $ | 500 | | |
(in Canadian dollars)
|
| |
Note
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| |||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | | | | | | | $ | 472 | | | | | $ | 600 | | |
Investment in Loral Space & Communications, Inc.
|
| | | | 4 | | | | | | 128 | | | | | | — | | |
| | | | | | | | | | $ | 600 | | | | | $ | 600 | | |
Partners’ capital | | | | | | | | | | | | | | | | | | | |
Partners’ capital
|
| | | | 5 | | | | | $ | 600 | | | | | $ | 600 | | |
| | |
Number of
partnership units |
| |
Stated value
|
| ||||||
General partnership units
|
| | | | 50 | | | | | $ | 500 | | |
Class X LP units
|
| | | | 10 | | | | | | 100 | | |
Partners’ capital
|
| | | | | | | | |
$
|
600
|
| |
(in Canadian dollars)
|
| |
Note
|
| | | | | | | |||
Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | | | | | | | $ | 600 | | |
Partners’ capital | | | | | | | | | | | | | |
Partners’ capital
|
| | | | 4 | | | | | $ | 600 | | |
| | |
Number of
partnership units |
| |
Standard
value |
| ||||||
General partnership units
|
| | | | 50 | | | | | $ | 500 | | |
Class X LP units
|
| | | | 10 | | | | | | 100 | | |
Partners’ capital
|
| | | | | | | | | $ | 600 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
ASSETS
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 19,986 | | | | | $ | 31,631 | | |
Income tax refund receivable
|
| | | | 1,299 | | | | | | 1,228 | | |
Other current assets
|
| | | | 1,194 | | | | | | 1,232 | | |
Total current assets
|
| | | | 22,479 | | | | | | 34,091 | | |
Right-of-use asset
|
| | | | 159 | | | | | | 342 | | |
Investments in affiliates
|
| | | | 241,499 | | | | | | 192,664 | | |
Deferred tax assets
|
| | | | 29,280 | | | | | | 27,339 | | |
Other assets
|
| | | | 31 | | | | | | 33 | | |
Total assets
|
| | | $ | 293,448 | | | | | $ | 254,469 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accrued employment costs
|
| | | $ | 9,759 | | | | | $ | 2,839 | | |
Other current liabilities
|
| | | | 2,534 | | | | | | 2,002 | | |
Total current liabilities
|
| | | | 12,293 | | | | | | 4,841 | | |
Pension and other post-retirement liabilities
|
| | | | 19,214 | | | | | | 20,181 | | |
Other liabilities
|
| | | | 20,667 | | | | | | 19,914 | | |
Total liabilities
|
| | | | 52,174 | | | | | | 44,936 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Shareholders’ Equity: | | | | | | | | | | | | | |
Preferred stock, $0.01 par value; 10,000,000 shares authorized
|
| | | | — | | | | | | — | | |
Series A junior participating preferred stock, $0.01 par value, 50,000 shares
authorized, no shares issued and outstanding |
| | | | — | | | | | | — | | |
Series B preferred stock, $0.01 par value, 5 shares authorized, 5 issued and
outstanding |
| | | | — | | | | | | — | | |
Common Stock:
|
| | | | | | | | | | | | |
Voting common stock, $0.01 par value; 50,000,000 shares authorized, 21,581,572 issued
|
| | | | 216 | | | | | | 216 | | |
Non-voting common stock, $0.01 par value; 20,000,000 shares authorized 9,505,673 issued and outstanding
|
| | | | 95 | | | | | | 95 | | |
Paid-in capital
|
| | | | 1,019,988 | | | | | | 1,019,988 | | |
Treasury stock (at cost), 154,494 shares of voting common stock
|
| | | | (9,592) | | | | | | (9,592) | | |
Accumulated deficit
|
| | | | (702,203) | | | | | | (729,202) | | |
Accumulated other comprehensive loss
|
| | | | (67,230) | | | | | | (71,972) | | |
Total shareholders’ equity
|
| | | | 241,274 | | | | | | 209,533 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 293,448 | | | | | $ | 254,469 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
General and administrative expenses
|
| | | $ | (8,745) | | | | | $ | (1,725) | | | | | $ | (12,374) | | | | | $ | (5,174) | | |
Recovery of affiliate doubtful receivable
|
| | | | — | | | | | | 5,854 | | | | | | — | | | | | | 5,854 | | |
Operating (loss) income
|
| | | | (8,745) | | | | | | 4,129 | | | | | | (12,374) | | | | | | 680 | | |
Interest and investment income
|
| | | | 2 | | | | | | 16 | | | | | | 5 | | | | | | 1,045 | | |
Interest expense
|
| | | | (8) | | | | | | (9) | | | | | | (19) | | | | | | (20) | | |
Other expense
|
| | | | (2,362) | | | | | | (2,300) | | | | | | (6,834) | | | | | | (6,440) | | |
(Loss) income before income taxes and equity in net (loss) income of affiliates
|
| | | | (11,113) | | | | | | 1,836 | | | | | | (19,222) | | | | | | (4,735) | | |
Income tax benefit (provision)
|
| | | | 829 | | | | | | (309) | | | | | | 1,252 | | | | | | (956) | | |
(Loss) income before equity in net (loss) income of affiliates
|
| | | | (10,284) | | | | | | 1,527 | | | | | | (17,970) | | | | | | (5,691) | | |
Equity in net (loss) income of affiliates
|
| | | | (14,924) | | | | | | 49,645 | | | | | | 44,969 | | | | | | 9,086 | | |
Net (loss) income
|
| | | | (25,208) | | | | | | 51,172 | | | | | | 26,999 | | | | | | 3,395 | | |
Other comprehensive income (loss), net of tax
|
| | | | 8,343 | | | | | | (7,220) | | | | | | 4,742 | | | | | | 6,891 | | |
Comprehensive (loss) income
|
| | | $ | (16,865) | | | | | $ | 43,952 | | | | | $ | 31,741 | | | | | $ | 10,286 | | |
Net (loss) income per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (0.81) | | | | | $ | 1.65 | | | | | $ | 0.87 | | | | | $ | 0.11 | | |
Diluted
|
| | | $ | (0.81) | | | | | $ | 1.64 | | | | | $ | 0.83 | | | | | $ | 0.11 | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 30,933 | | | | | | 30,933 | | | | | | 30,933 | | | | | | 30,933 | | |
Diluted
|
| | | | 30,933 | | | | | | 31,026 | | | | | | 31,032 | | | | | | 31,017 | | |
| | |
Common Stock
|
| |
Paid-In
Capital |
| |
Treasury Stock
Voting |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Loss |
| |
Shareholders’
Equity |
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Voting
|
| |
Non-Voting
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
Issued |
| |
Amount
|
| |
Shares
Issued |
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020
|
| | | | 21,582 | | | | | $ | 216 | | | | | | 9,506 | | | | | $ | 95 | | | | | $ | 1,019,988 | | | | | | 154 | | | | | $ | (9,592) | | | | | $ | (605,766) | | | | | $ | (54,914) | | | | | $ | 350,027 | | |
Net loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (47,777) | | | | | | | | | | | | | | |
Other comprehensive income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 14,111 | | | | | | | | |
Comprehensive loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (33,666) | | |
Common dividend paid ($5.50 per share)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (170,130) | | | | | | | | | | | | (170,130) | | |
Balance, June 30, 2020
|
| | | | 21,582 | | | | | | 216 | | | | | | 9,506 | | | | | | 95 | | | | | | 1,019,988 | | | | | | 154 | | | | | | (9,592) | | | | | | (823,673) | | | | | | (40,803) | | | | | | 146,231 | | |
Net income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 51,172 | | | | | | | | | | | | | | |
Other comprehensive loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (7,220) | | | | | | | | |
Comprehensive income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 43,952 | | |
Balance, September 30, 2020
|
| | | | 21,582 | | | | | | 216 | | | | | | 9,506 | | | | | | 95 | | | | | | 1,019,988 | | | | | | 154 | | | | | | (9,592) | | | | | | (772,501) | | | | | | (48,023) | | | | | | 190,183 | | |
Net income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 89,698 | | | | | | | | | | | | | | |
Other comprehensive loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (23,949) | | | | | | | | |
Comprehensive income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 65,749 | | |
Common dividend paid ($1.50 per share)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (46,399) | | | | | | | | | | | | (46,399) | | |
Balance, December 31, 2020
|
| | | | 21,582 | | | | | | 216 | | | | | | 9,506 | | | | | | 95 | | | | | | 1,019,988 | | | | | | 154 | | | | | | (9,592) | | | | | | (729,202) | | | | | | (71,972) | | | | | | 209,533 | | |
Net income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 52,207 | | | | | | | | | | | | | | |
Other comprehensive loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (3,601) | | | | | | | | |
Comprehensive income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 48,606 | | |
Balance, June 30, 2021
|
| | | | 21,582 | | | | | | 216 | | | | | | 9,506 | | | | | | 95 | | | | | | 1,019,988 | | | | | | 154 | | | | | | (9,592) | | | | | | (676,995) | | | | | | (75,573) | | | | | | 258,139 | | |
Net loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (25,208) | | | | | | | | | | | | | | |
Other comprehensive income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 8,343 | | | | | | | | |
Comprehensive loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (16,865) | | |
Balance, Sept 30, 2021
|
| | | | 21,582 | | | | | $ | 216 | | | | | | 9,506 | | | | | $ | 95 | | | | | $ | 1,019,988 | | | | | | 154 | | | | | $ | (9,592) | | | | | $ | (702,203) | | | | | $ | (67,230) | | | | | $ | 241,274 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 26,999 | | | | | $ | 3,395 | | |
Adjustments to reconcile net income to net cash used in operating activities | | | | | | | | | | | | | |
Non-cash operating items (Note 2)
|
| | | | (46,042) | | | | | | (14,231) | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Other current assets
|
| | | | 38 | | | | | | 6,010 | | |
Accrued employment costs and other current liabilities
|
| | | | 7,645 | | | | | | (117) | | |
Income tax refund receivable, net of payable
|
| | | | (72) | | | | | | (945) | | |
Pension and other post-retirement liabilities
|
| | | | (966) | | | | | | (1,833) | | |
Other liabilities
|
| | | | 753 | | | | | | 2,170 | | |
Net cash used in operating activities
|
| | | | (11,645) | | | | | | (5,551) | | |
Financing activities: | | | | | | | | | | | | | |
Dividend paid
|
| | | | — | | | | | | (170,130) | | |
Net cash used in financing activities
|
| | | | — | | | | | | (170,130) | | |
Cash, cash equivalents and restricted cash – period decrease
|
| | | | (11,645) | | | | | | (175,681) | | |
Cash, cash equivalents and restricted cash (Note 2) – beginning of year
|
| | | | 31,935 | | | | | | 259,371 | | |
Cash, cash equivalents and restricted cash (Note 2) – end of period
|
| | | $ | 20,290 | | | | | $ | 83,690 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Cash and cash equivalents
|
| | | $ | 19,986 | | | | | $ | 31,631 | | |
Restricted cash included in other current assets
|
| | | | 304 | | | | | | 304 | | |
Cash, cash equivalents and restricted cash shown in the statement of cash flows
|
| | | $ | 20,290 | | | | | $ | 31,935 | | |
| | |
September 30, 2021
|
| |
December 31, 2020
|
| ||||||||||||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds
|
| | | $ | 18,170 | | | | | $ | — | | | | | $ | — | | | | | $ | 29,166 | | | | | $ | — | | | | | $ | — | | |
Other current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Indemnification – Sale of SSL
|
| | | | — | | | | | | — | | | | | | 598 | | | | | | — | | | | | | — | | | | | | 598 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Indemnification – Globalstar do Brasil S.A.
|
| | | $ | — | | | | | $ | — | | | | | $ | 145 | | | | | $ | — | | | | | $ | — | | | | | $ | 145 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Non-cash operating items: | | | | | | | | | | | | | |
Equity in net income of affiliates
|
| | | $ | (44,969) | | | | | $ | (9,086) | | |
Deferred taxes
|
| | | | (2,175) | | | | | | (253) | | |
Depreciation
|
| | | | 2 | | | | | | 3 | | |
Right-of-use asset, net of lease liability
|
| | | | (10) | | | | | | (4) | | |
Recovery of affiliate doubtful receivable
|
| | | | — | | | | | | (5,854) | | |
Amortization of prior service credit and actuarial loss
|
| | | | 1,110 | | | | | | 963 | | |
Net non-cash operating items
|
| | | $ | (46,042) | | | | | $ | (14,231) | | |
Supplemental information: | | | | | | | | | | | | | |
Interest paid
|
| | | $ | 19 | | | | | $ | 20 | | |
Income tax refunds
|
| | | $ | 2 | | | | | $ | 178 | | |
Income tax payments
|
| | | $ | 242 | | | | | $ | 190 | | |
| | |
Pension and
Other Post-retirement Benefits |
| |
Equity in
Telesat-related Other Comprehensive Loss |
| |
Accumulated
Other Comprehensive Loss |
| |||||||||
Balance, January 1, 2020
|
| | | $ | (16,167) | | | | | $ | (38,747) | | | | | $ | (54,914) | | |
Other comprehensive loss before reclassification
|
| | | | (3,852) | | | | | | (14,232) | | | | | | (18,084) | | |
Amounts reclassified from accumulated other comprehensive
loss |
| | | | 1,026 | | | | | | — | | | | | | 1,026 | | |
Net current-period other comprehensive loss
|
| | | | (2,826) | | | | | | (14,232) | | | | | | (17,058) | | |
Balance, December 31, 2020
|
| | | | (18,993) | | | | | | (52,979) | | | | | | (71,972) | | |
Other comprehensive income before reclassification
|
| | | | — | | | | | | 3,864 | | | | | | 3,864 | | |
Amounts reclassified from accumulated other comprehensive
loss |
| | | | 878 | | | | | | — | | | | | | 878 | | |
Net current-period other comprehensive income
|
| | | | 878 | | | | | | 3,864 | | | | | | 4,742 | | |
Balance, September 30, 2021
|
| | | $ | (18,115) | | | | | $ | (49,115) | | | | | $ | (67,230) | | |
| | |
Three Months Ended September 30,
|
| |||||||||||||||||||||||||||||||||
| | |
2021
|
| |
2020
|
| ||||||||||||||||||||||||||||||
| | |
Before-Tax
Amount |
| |
Tax
Provision |
| |
Net-of-Tax
Amount |
| |
Before-Tax
Amount |
| |
Tax
(Provision) Benefit |
| |
Net-of-Tax
Amount |
| ||||||||||||||||||
Amortization of prior service credits and net actuarial loss
|
| | | $ | 370(a) | | | | | $ | (76) | | | | | $ | 294 | | | | | $ | 321(a) | | | | | $ | (68) | | | | | $ | 253 | | |
Equity in Telesat-related other comprehensive income (loss)
|
| | | | 8,052 | | | | | | (3) | | | | | | 8,049 | | | | | | (7,477) | | | | | | 4 | | | | | | (7,473) | | |
Other comprehensive income (loss)
|
| | | $ | 8,422 | | | | | $ | (79) | | | | | $ | 8,343 | | | | | $ | (7,156) | | | | | $ | (64) | | | | | $ | (7,220) | | |
| | |
Nine Months Ended September 30,
|
| |||||||||||||||||||||||||||||||||
| | |
2021
|
| |
2020
|
| ||||||||||||||||||||||||||||||
| | |
Before-Tax
Amount |
| |
Tax
Provision |
| |
Net-of-Tax
Amount |
| |
Before-Tax
Amount |
| |
Tax
Provision |
| |
Net-of-Tax
Amount |
| ||||||||||||||||||
Amortization of prior service credits and net actuarial loss
|
| | | $ | 1,110(a) | | | | | $ | (232) | | | | | $ | 878 | | | | | $ | 963(a) | | | | | $ | (202) | | | | | $ | 761 | | |
Equity in Telesat-related other comprehensive income
|
| | | | 3,866 | | | | | | (2) | | | | | | 3,864 | | | | | | 6,132 | | | | | | (2) | | | | | | 6,130 | | |
Other comprehensive income
|
| | | $ | 4,976 | | | | | $ | (234) | | | | | $ | 4,742 | | | | | $ | 7,095 | | | | | $ | (204) | | | | | $ | 6,891 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Restricted cash (see Note 2)
|
| | | $ | 304 | | | | | $ | 304 | | |
Indemnification receivable from SSL for pre-closing taxes (see Note 13)
|
| | | | 598 | | | | | | 598 | | |
Due from affiliates
|
| | | | 17 | | | | | | 88 | | |
Prepaid expenses
|
| | | | 275 | | | | | | 240 | | |
Other
|
| | | | — | | | | | | 2 | | |
| | | | $ | 1,194 | | | | | $ | 1,232 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Telesat
|
| | | $ | 241,499 | | | | | $ | 192,664 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Telesat
|
| | | $ | (14,924) | | | | | $ | 49,645 | | | | | $ | 44,969 | | | | | $ | 9,086 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Balance Sheet Data: | | | | | | | | | | | | | |
Current assets
|
| | | $ | 1,304,567 | | | | | $ | 703,210 | | |
Total assets
|
| | | | 4,501,504 | | | | | | 3,943,875 | | |
Current liabilities
|
| | | | 150,873 | | | | | | 129,849 | | |
Long-term debt
|
| | | | 2,979,716 | | | | | | 2,483,256 | | |
Total liabilities
|
| | | | 3,597,358 | | | | | | 3,140,747 | | |
Shareholders’ equity
|
| | | | 904,146 | | | | | | 803,128 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | $ | 153,334 | | | | | $ | 152,081 | | | | | $ | 457,052 | | | | | $ | 460,407 | | |
Operating expenses
|
| | | | (33,099) | | | | | | (32,325) | | | | | | (115,594) | | | | | | (101,106) | | |
Depreciation and amortization
|
| | | | (43,410) | | | | | | (44,888) | | | | | | (131,977) | | | | | | (133,336) | | |
Other operating expense
|
| | | | (23) | | | | | | (26) | | | | | | (587) | | | | | | (182) | | |
Operating income
|
| | | | 76,802 | | | | | | 74,842 | | | | | | 208,894 | | | | | | 225,783 | | |
Interest expense
|
| | | | (40,501) | | | | | | (37,715) | | | | | | (111,517) | | | | | | (115,947) | | |
Foreign exchange (loss) gain
|
| | | | (55,138) | | | | | | 48,943 | | | | | | 908 | | | | | | (74,387) | | |
Gain (loss) on financial instruments
|
| | | | 3,955 | | | | | | 246 | | | | | | 7,749 | | | | | | (11,643) | | |
Other (loss) income
|
| | | | (88) | | | | | | 527 | | | | | | (1,164) | | | | | | 4,865 | | |
Income tax provision
|
| | | | (10,590) | | | | | | (9,053) | | | | | | (38,273) | | | | | | (18,509) | | |
Net (loss) income
|
| | | $ | (25,560) | | | | | $ | 77,790 | | | | | $ | 66,597 | | | | | $ | 10,162 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Operating lease liability
|
| | | $ | 152 | | | | | $ | 345 | | |
Due to affiliate
|
| | | | 106 | | | | | | 98 | | |
Accrued professional fees
|
| | | | 1,850 | | | | | | 1,287 | | |
Pension and other post-retirement liabilities
|
| | | | 83 | | | | | | 82 | | |
Accrued liabilities
|
| | | | 343 | | | | | | 190 | | |
| | | | $ | 2,534 | | | | | $ | 2,002 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Current income tax provision
|
| | | $ | (294) | | | | | $ | (262) | | | | | $ | (923) | | | | | $ | (1,209) | | |
Deferred income tax benefit (provision)
|
| | | | 1,123 | | | | | | (47) | | | | | | 2,175 | | | | | | 253 | | |
Income tax benefit (provision)
|
| | | $ | 829 | | | | | $ | (309) | | | | | $ | 1,252 | | | | | $ | (956) | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Current provision for UTPs
|
| | | $ | (257) | | | | | $ | (244) | | | | | $ | (753) | | | | | $ | (1,052) | | |
Deferred benefit for UTPs
|
| | | | 52 | | | | | | 50 | | | | | | 115 | | | | | | 222 | | |
Tax provision for UTPs
|
| | | $ | (205) | | | | | $ | (194) | | | | | $ | (638) | | | | | $ | (830) | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Indemnification liabilities – other (see Note 13)
|
| | | $ | 145 | | | | | $ | 145 | | |
Liabilities for uncertain tax positions
|
| | | | 20,522 | | | | | | 19,769 | | |
| | | | $ | 20,667 | | | | | $ | 19,914 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||
| | |
2020
|
| |
2021
|
| |
2020
|
| |||||||||
Net income – basic
|
| | | $ | 51,172 | | | | | $ | 26,999 | | | | | $ | 3,395 | | |
Less: Adjustment for dilutive effect of Telesat stock options
|
| | | | (257) | | | | | | (1,129) | | | | | | (46) | | |
Net income – diluted
|
| | | $ | 50,915 | | | | | $ | 25,870 | | | | | $ | 3,349 | | |
| | |
Three Months
Ended September 30, 2020 |
| |
Nine Months Ended
September 30, |
| ||||||||||||
| | |
2021
|
| |
2020
|
| ||||||||||||
Weighted average common shares outstanding
|
| | | | 30,933 | | | | | | 30,933 | | | | | | 30,933 | | |
Unconverted restricted stock units
|
| | | | 93 | | | | | | 99 | | | | | | 84 | | |
Common shares outstanding for diluted earnings per share
|
| | | | 31,026 | | | | | | 31,032 | | | | | | 31,017 | | |
| | |
Three Months
Ended September 30, 2021 |
| |||
Unconverted restricted stock units
|
| | | | 99 | | |
| | |
Pension Benefits
Three Months Ended September 30, |
| |
Other Benefits
Three Months Ended September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Service cost(1)
|
| | | $ | 176 | | | | | $ | 176 | | | | | $ | — | | | | | $ | — | | |
Interest cost(2)
|
| | | | 377 | | | | | | 441 | | | | | | 3 | | | | | | 4 | | |
Expected return on plan assets(2)
|
| | | | (684) | | | | | | (663) | | | | | | — | | | | | | — | | |
Amortization of net actuarial loss (gain)(2)
|
| | | | 370 | | | | | | 322 | | | | | | — | | | | | | (1) | | |
Net periodic cost
|
| | | $ | 239 | | | | | $ | 276 | | | | | $ | 3 | | | | | $ | 3 | | |
| | |
Pension Benefits
Nine Months Ended September 30, |
| |
Other Benefits
Nine Months Ended September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Service cost(1)
|
| | | $ | 528 | | | | | $ | 528 | | | | | $ | — | | | | | $ | — | | |
Interest cost(2)
|
| | | | 1,130 | | | | | | 1,324 | | | | | | 9 | | | | | | 12 | | |
Expected return on plan assets(2)
|
| | | | (2,051) | | | | | | (1,989) | | | | | | — | | | | | | — | | |
Amortization of net actuarial loss (gain)(2)
|
| | | | 1,110 | | | | | | 966 | | | | | | — | | | | | | (3) | | |
Net periodic cost
|
| | | $ | 717 | | | | | $ | 829 | | | | | $ | 9 | | | | | $ | 9 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
Rent Expense
|
| | | $ | 160 | | | | | $ | 174 | | | | | $ | 494 | | | | | $ | 521 | | |
|
Operating lease payments – (October 1, 2021 to December 31, 2021)
|
| | | | 153 | | |
|
Less: Future interest
|
| | | | 1 | | |
|
Operating lease liability
|
| | | $ | 152 | | |
| Amounts recognized in Balance Sheet | | | | | | | |
|
Other current liabilities
|
| | | $ | 152 | | |
| | |
Three Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(In thousands)
|
| |||||||||
General and administrative expenses
|
| | | $ | (8,745) | | | | | $ | (1,725) | | |
Recovery of affiliate doubtful receivable
|
| | | | — | | | | | | 5,854 | | |
Operating (loss) income
|
| | | $ | (8,745) | | | | | $ | 4,129 | | |
| | |
Three Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Other expense
|
| | | $ | 2,362 | | | | | $ | 2,300 | | |
| | |
Three Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Income tax benefit (provision)
|
| | | $ | 829 | | | | | $ | (309) | | |
| | |
Three Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Telesat
|
| | | $ | (14,924) | | | | | $ | 49,645 | | |
| | |
Three Months Ended
September 30, |
| |
Three Months Ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
| | |
(In Canadian dollars)
|
| |
(In U.S. dollars)
|
| ||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | | 193,110 | | | | | | 202,830 | | | | | | 153,334 | | | | | | 152,081 | | |
Operating expenses
|
| | | | (41,735) | | | | | | (43,088) | | | | | | (33,099) | | | | | | (32,325) | | |
Depreciation and amortization
|
| | | | (54,679) | | | | | | (59,884) | | | | | | (43,410) | | | | | | (44,888) | | |
Other operating expense
|
| | | | (30) | | | | | | (34) | | | | | | (23) | | | | | | (26) | | |
Operating income
|
| | | | 96,666 | | | | | | 99,824 | | | | | | 76,802 | | | | | | 74,842 | | |
Interest expense
|
| | | | (50,981) | | | | | | (50,288) | | | | | | (40,501) | | | | | | (37,715) | | |
Foreign exchange (loss) gain
|
| | | | (68,965) | | | | | | 66,909 | | | | | | (55,138) | | | | | | 48,943 | | |
Gain on financial instruments
|
| | | | 4,970 | | | | | | 419 | | | | | | 3,955 | | | | | | 246 | | |
Other (loss) income
|
| | | | (112) | | | | | | 678 | | | | | | (88) | | | | | | 527 | | |
Income tax provision
|
| | | | (13,356) | | | | | | (12,140) | | | | | | (10,590) | | | | | | (9,053) | | |
Net (loss) income
|
| | | | (31,778) | | | | | | 105,402 | | | | | | (25,560) | | | | | | 77,790 | | |
Average exchange rate for translating Canadian dollars to U.S.
dollars ( 1 U.S. dollar equals) |
| | | | 1.2597 | | | | | | 1.3345 | | | | | | | | | | | | | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(In thousands)
|
| |||||||||
General and administrative expenses
|
| | | $ | (12,374) | | | | | $ | (5,174) | | |
Recovery of affiliate doubtful receivable
|
| | | | — | | | | | | 5,854 | | |
Operating (loss) income
|
| | | $ | (12,374) | | | | | $ | 680 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Interest and investment income
|
| | | $ | 5 | | | | | $ | 1,045 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Other expense
|
| | | $ | 6,834 | | | | | $ | 6,440 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Income tax benefit (provision)
|
| | | $ | 1,252 | | | | | $ | (956) | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Telesat
|
| | | $ | 44,969 | | | | | $ | 9,086 | | |
| | |
Nine Months Ended
September 30, 2021 |
| |||||||||
| | |
(In thousands)
|
| |||||||||
Balance, January 1, 2021
|
| | | | | | | | | $ | 192,664 | | |
Components of equity in net income of Telesat:
|
| | | | | | | | | | | | |
Equity in net income of Telesat
|
| | | $ | 41,713 | | | | | | | | |
Eliminations of affiliate transactions and related amortization
|
| | | | 3,256 | | | | | | 44,969 | | |
Equity in Telesat-related other comprehensive income
|
| | | | | | | | | | 3,866 | | |
Balance, September 30, 2021
|
| | | | | | | | | $ | 241,499 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||||||||
| | |
(In Canadian dollars)
|
| |
(In U.S. dollars)
|
| ||||||||||||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets
|
| | | | 1,654,493 | | | | | | 894,835 | | | | | | 1,304,567 | | | | | | 703,210 | | |
Total assets
|
| | | | 5,708,944 | | | | | | 5,018,579 | | | | | | 4,501,504 | | | | | | 3,943,875 | | |
Current liabilities
|
| | | | 191,342 | | | | | | 165,233 | | | | | | 150,873 | | | | | | 129,849 | | |
Long-term debt
|
| | | | 3,778,967 | | | | | | 3,159,944 | | | | | | 2,979,716 | | | | | | 2,483,256 | | |
Total liabilities
|
| | | | 4,562,279 | | | | | | 3,996,600 | | | | | | 3,597,358 | | | | | | 3,140,747 | | |
Shareholders’ equity
|
| | | | 1,146,665 | | | | | | 1,021,979 | | | | | | 904,146 | | | | | | 803,128 | | |
Period end exchange rate for translating
Canadian dollars to U.S. dollars (1 U.S. dollar equals) |
| | | | 1.2680 | | | | | | 1.2725 | | | | | | | | | | | | | | |
| | |
Nine Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||
| | |
(In Canadian dollars)
|
| |
(In U.S. dollars)
|
| ||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | | 573,005 | | | | | | 620,890 | | | | | | 457,052 | | | | | | 460,407 | | |
Operating expenses
|
| | | | (144,920) | | | | | | (136,347) | | | | | | (115,594) | | | | | | (101,106) | | |
Depreciation and amortization
|
| | | | (165,460) | | | | | | (179,812) | | | | | | (131,977) | | | | | | (133,336) | | |
Other operating expense
|
| | | | (735) | | | | | | (246) | | | | | | (587) | | | | | | (182) | | |
Operating income
|
| | | | 261,890 | | | | | | 304,485 | | | | | | 208,894 | | | | | | 225,783 | | |
Interest expense
|
| | | | (139,809) | | | | | | (156,363) | | | | | | (111,517) | | | | | | (115,947) | | |
Foreign exchange gain (loss)
|
| | | | 1,138 | | | | | | (100,315) | | | | | | 908 | | | | | | (74,387) | | |
Gain (loss) on financial instruments
|
| | | | 9,715 | | | | | | (15,701) | | | | | | 7,749 | | | | | | (11,643) | | |
Other (loss) income
|
| | | | (1,460) | | | | | | 6,558 | | | | | | (1,164) | | | | | | 4,865 | | |
Income tax provision
|
| | | | (47,982) | | | | | | (24,961) | | | | | | (38,273) | | | | | | (18,509) | | |
Net income
|
| | | | 83,492 | | | | | | 13,703 | | | | | | 66,597 | | | | | | 10,162 | | |
Average exchange rate for translating Canadian dollars to U.S. dollars (1 U.S. dollar equals)
|
| | | | 1.2542 | | | | | | 1.3495 | | | | | | | | | | | | | | |
| | | | | | | | | | | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
Maturity
|
| |
Currency
|
| |||||||||||||||
| | | | | | | | | | | |
(In thousands)
|
| |||||||||
Senior Secured Credit Facilities: | | | | | | | | | | | | | | | | | | | | | | |
Revolving credit facility
|
| | | | December 2024 | | | |
USD or CAD equivalent
|
| | | $ | — | | | | | $ | — | | |
Term Loan B – U.S. facility
|
| | | | December 2026 | | | |
USD
|
| | | | 1,552,815 | | | | | | 1,552,815 | | |
6.5% Senior notes
|
| | | | October 2027 | | | |
USD
|
| | | | 550,000 | | | | | | 550,000 | | |
| | | | | | | | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
Maturity
|
| |
Currency
|
| ||||||||||||
| | | | | | | | |
(In thousands)
|
| |||||||||
5.625% Senior secured notes
|
| |
December 2026
|
| |
USD
|
| | | | 500,000 | | | | | | — | | |
4.875% Senior secured notes
|
| |
June 2027
|
| |
USD
|
| | | | 400,000 | | | | | | 400,000 | | |
| | | | | | | | | | | 3,002,815 | | | | | | 2,502,815 | | |
Deferred financing costs and prepayment options
|
| | | | | | | | | | (1,779) | | | | | | 1,824 | | |
Total debt under international financial
reporting standards |
| | | | | | | | | | 3,001,036 | | | | | | 2,504,639 | | |
U.S. GAAP adjustments
|
| | | | | | | | | | (21,320) | | | | | | (21,383) | | |
Total debt under U.S. GAAP
|
| | | | | | | | | | 2,979,716 | | | | | | 2,483,256 | | |
Current portion
|
| | | | | | | | | | — | | | | | | — | | |
Long term portion
|
| | | | | | | | | $ | 2,979,716 | | | | | $ | 2,483,256 | | |
|
| | |
Year Ended December 31,
|
| | |||||||||||
| | |
2020
|
| |
2019
|
| | ||||||||
| | |
(In thousands)
|
| | | | |||||||||
General and administrative expenses
|
| | | $ | (6,717) | | | | | $ | (6,612) | | | | ||
Recovery of affiliate doubtful receivable
|
| | | | 5,854 | | | | | | — | | | | ||
Operating loss
|
| | | $ | (863) | | | | | $ | (6,612) | | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Interest and investment income
|
| | | $ | 1,050 | | | | | $ | 5,727 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Other expense
|
| | | $ | 10,898 | | | | | $ | 4,586 | | |
| | |
Year Ended December 31,
|
| | |||||||||||
| | |
2020
|
| |
2019
|
| | ||||||||
| | |
(In thousands)
|
| | | | |||||||||
Income tax provision
|
| | | $ | (12,886) | | | | | $ | (6,153) | | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Telesat
|
| | | $ | 116,716 | | | | | $ | 101,403 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||||||||
| | |
2020
|
| |
2019
|
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Opening Balance, January 1,
|
| | | | | | | | | $ | 90,184 | | | | | | | | | | | $ | 24,574 | | |
Components of equity in net income of Telesat: | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity in net income of Telesat
|
| | | $ | 111,892 | | | | | | | | | | | $ | 97,856 | | | | | | | | |
Eliminations of affiliate transactions and related amortization
|
| | | | 4,824 | | | | | | 116,716 | | | | | | 3,547 | | | | | | 101,403 | | |
Equity in Telesat-related other comprehensive loss
|
| | | | | | | | | | (14,236) | | | | | | | | | | | | (35,793) | | |
Ending balance, December 31,
|
| | | | | | | | | $ | 192,664 | | | | | | | | | | | $ | 90,184 | | |
| | |
December 31,
|
| |
December 31,
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(In Canadian dollars)
|
| |
(In U.S. dollars)
|
| ||||||||||||||||||
Balance Sheet Data: | | | | | | | | | | | |||||||||||||||
Current assets
|
| | | | 894,835 | | | | | | 1,139,605 | | | | | | 703,210 | | | | | $ | 877,294 | | |
Total assets
|
| | | | 5,018,579 | | | | | | 5,365,307 | | | | | | 3,943,875 | | | | | | 4,130,337 | | |
Current liabilities
|
| | | | 165,233 | | | | | | 161,357 | | | | | | 129,849 | | | | | | 124,217 | | |
Long-term debt, including current portion
|
| | | | 3,159,944 | | | | | | 3,684,873 | | | | | | 2,483,256 | | | | | | 2,836,700 | | |
Total liabilities
|
| | | | 3,996,600 | | | | | | 4,552,467 | | | | | | 3,140,747 | | | | | | 3,504,594 | | |
Shareholders’ equity
|
| | | | 1,021,979 | | | | | | 812,840 | | | | | | 803,128 | | | | | | 625,743 | | |
Period end exchange rate for translating Canadian dollars to U.S. dollars (1 U.S. dollar equals)
|
| | | | 1.2725 | | | | | | 1.2990 | | | | | | | | | | | | | | |
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||
| | |
(In thousands)
|
| |||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Cash equivalents: Money market funds
|
| | | $ | 29,166 | | | | | $ | — | | | | | $ | — | | |
Other current assets: | | | | | | | | | | | | | | | | | | | |
Indemnification – Sale of SSL
|
| | | $ | — | | | | | $ | — | | | | | $ | 598 | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Long term liabilities: | | | | | | | | | | | | | | | | | | | |
Indemnification – Globalstar do Brasil S.A.
|
| | | $ | — | | | | | $ | — | | | | | $ | 145 | | |
| | | | | | | | |
December 31,
|
| |||||||||
| | |
Maturity
|
| |
Currency
|
| |
2020
|
| |
2019
|
| ||||||
| | | | | | | | |
(in thousands)
|
| |||||||||
Senior secured credit facilities: | | | | | | | | | | | | | | | | | | | |
Revolving credit facility
|
| | | | |
USD or CAD
|
| | | | — | | | | | | — | | |
| | |
December 2024
|
| |
equivalent
|
| | | | | | | | | | | | |
Term Loan B – U.S. facility
|
| |
December 2026
|
| |
USD
|
| | | $ | 1,552,815 | | | | | $ | 1,908,500 | | |
6.5% Senior notes
|
| |
October 2027
|
| |
USD
|
| | | | 550,000 | | | | | | 550,000 | | |
4.875% Senior secured notes
|
| |
June 2027
|
| |
USD
|
| | | | 400,000 | | | | | | 400,000 | | |
| | | | | | | | | | | 2,502,815 | | | | | | 2,858,500 | | |
Deferred financing costs and prepayment options
|
| | | | | | | | | | 1,824 | | | | | | (302) | | |
Total debt under international financial reporting standards
|
| | | | | | | | | | 2,504,639 | | | | | | 2,858,198 | | |
U.S. GAAP adjustments
|
| | | | | | | | | | (21,383) | | | | | | (21,498) | | |
Total debt under U.S. GAAP
|
| | | | | | | | | | 2,483,256 | | | | | | 2,836,700 | | |
Current portion
|
| | | | | | | | | | — | | | | | | 16,480 | | |
Long term portion
|
| | | | | | | | | $ | 2,483,256 | | | | | $ | 2,820,220 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
| | |
(In thousands)
|
| |||||||||
General and administrative expenses
|
| | | $ | 6,612 | | | | | $ | 6,534 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Interest and investment income
|
| | | $ | 5,727 | | | | | $ | 4,746 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Other expense
|
| | | $ | 4,586 | | | | | $ | 3,445 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Income tax (provision) benefit
|
| | | $ | (6,153) | | | | | $ | 39,348 | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Telesat
|
| | | $ | 101,403 | | | | | $ | (24,412) | | |
| | |
Year Ended December 31,
|
| |||||||||||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Opening Balance, January 1,
|
| | | | | | | | | $ | 24,574 | | | | | | | | | | | $ | 53,430 | | |
Components of equity in net income (loss) of Telesat: | | | | | | ||||||||||||||||||||
Equity in net income (loss) of Telesat
|
| | | $ | 97,856 | | | | | | | | | | | $ | (25,603) | | | | | | | | |
Eliminations of affiliate transactions and related amortization
|
| | | | 3,547 | | | | | | 101,403 | | | | | | 1,191 | | | | | | (24,412) | | |
Equity in Telesat related other comprehensive (loss) income: | | | | | | ||||||||||||||||||||
Prior years(1)
|
| | | | (22,056) | | | | | | | | | | | | — | | | | | | | | |
Current year
|
| | | | (13,737) | | | | | | (35,793) | | | | | | 22,033 | | | | | | 22,033 | | |
Cumulative effect adjustment of accounting change(2)
|
| | | | | | | | | | — | | | | | | | | | | | | (26,477) | | |
Ending balance, December 31,
|
| | | | | | | | | $ | 90,184 | | | | | | | | | | | $ | 24,574 | | |
| | |
Year Ended December 31,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(In Canadian dollars)
|
| |
(In U.S. dollars)
|
| ||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenues
|
| | | | 914,000 | | | | | | 902,932 | | | | | | 687,868 | | | | | | 699,596 | | |
Operating expenses
|
| | | | (172,431) | | | | | | (177,335) | | | | | | (129,770) | | | | | | (137,400) | | |
Depreciation, amortization and stock-based compensation
|
| | | | (282,069) | | | | | | (265,165) | | | | | | (212,282) | | | | | | (205,451) | | |
Other operating (expense) income
|
| | | | (862) | | | | | | 743 | | | | | | (649) | | | | | | 576 | | |
Operating income
|
| | | | 458,638 | | | | | | 461,175 | | | | | | 345,167 | | | | | | 357,321 | | |
| | |
Year Ended December 31,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(In Canadian dollars)
|
| |
(In U.S. dollars)
|
| ||||||||||||||||||
Interest expense
|
| | | | (247,670) | | | | | | (228,281) | | | | | | (186,394) | | | | | | (176,873) | | |
Loss on refinancing
|
| | | | (114,493) | | | | | | — | | | | | | (86,166) | | | | | | — | | |
Foreign exchange gain (loss)
|
| | | | 162,109 | | | | | | (262,008) | | | | | | 122,002 | | | | | | (203,005) | | |
(Loss) gain on financial instruments
|
| | | | (55,859) | | | | | | 20,386 | | | | | | (42,039) | | | | | | 15,795 | | |
Other income
|
| | | | 21,738 | | | | | | 14,629 | | | | | | 16,360 | | | | | | 11,335 | | |
Income tax provision
|
| | | | (16,929) | | | | | | (58,625) | | | | | | (12,741) | | | | | | (45,423) | | |
Net income (loss)
|
| | | | 207,534 | | | | | | (52,724) | | | | | | 156,189 | | | | | | (40,850) | | |
Average exchange rate for translating Canadian dollars to U.S. dollars (1 U.S. dollar equals)
|
| | | | 1.3289 | | | | | | 1.2912 | | | | | | | | | | | | | | |
| | |
December 31,
|
| |
December 31,
|
| ||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(In Canadian dollars)
|
| |
(In U.S. dollars)
|
| ||||||||||||||||||
Balance Sheet Data: | | | | | | ||||||||||||||||||||
Current assets
|
| | | | 1,139,605 | | | | | | 856,575 | | | | | | 877,294 | | | | | | 628,125 | | |
Total assets
|
| | | | 5,365,307 | | | | | | 5,376,860 | | | | | | 4,130,337 | | | | | | 3,942,847 | | |
Current liabilities
|
| | | | 161,357 | | | | | | 190,100 | | | | | | 124,217 | | | | | | 139,401 | | |
Long-term debt, including current portion
|
| | | | 3,684,873 | | | | | | 3,770,084 | | | | | | 2,836,700 | | | | | | 2,764,599 | | |
Total liabilities
|
| | | | 4,552,467 | | | | | | 4,738,181 | | | | | | 3,504,594 | | | | | | 3,474,504 | | |
Shareholders’ equity
|
| | | | 812,840 | | | | | | 638,679 | | | | | | 625,743 | | | | | | 468,343 | | |
Period end exchange rate for translating Canadian dollars
to U.S. dollars (1 U.S. dollar equals) |
| | | | 1.2990 | | | | | | 1.3637 | | | | |
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||
| | |
(In thousands)
|
| |||||||||||||||
Assets | | | | | |||||||||||||||
Cash equivalents: Money market funds
|
| | | $ | 256,915 | | | | | $ | — | | | | | $ | — | | |
Other current assets: | | | | | |||||||||||||||
Indemnification - Sale of SSL
|
| | | $ | — | | | | | $ | — | | | | | $ | 598 | | |
Liabilities | | | | | |||||||||||||||
Long term liabilities: | | | | | |||||||||||||||
Indemnification - Globalstar do Brasil S.A.
|
| | | $ | — | | | | | $ | — | | | | | $ | 145 | | |
| | |
Maturity
|
| |
Currency
|
| |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||
| | | | | | | | |
(In thousands)
|
| |||||||||
Former senior secured credit facilities:
|
| | | | | | | | | | | | | | | | | | |
Revolving credit facility
|
| | | | |
USD or CAD equivalent
|
| | | $ | — | | | | | $ | — | | |
Term Loan B – U.S. facility
|
| | | | |
USD
|
| | | | — | | | | | | 2,326,049 | | |
8.875% Senior notes
|
| | | | |
USD
|
| | | | — | | | | | | 500,000 | | |
Senior secured credit facilities: | | | | | | ||||||||||||||
Revolving credit facility
|
| |
December 2024
|
| |
USD or CAD equivalent
|
| | | | — | | | | | | — | | |
Term Loan B – U.S. facility
|
| |
December 2026
|
| |
USD
|
| | | | 1,908,500 | | | | | | — | | |
6.5% Senior notes
|
| | October 2027 | | |
USD
|
| | | | 550,000 | | | | | | — | | |
4.875% Senior secured notes
|
| | June 2027 | | |
USD
|
| | | | 400,000 | | | | | | — | | |
| | | | | | | | | | | 2,858,500 | | | | | | 2,826,049 | | |
Less: Deferred financing costs and
prepayment options |
| | | | | | | | | | (302) | | | | | | (95,076) | | |
Total debt under international financial reporting standards
|
| | | | | | | | | | 2,858,198 | | | | | | 2,730,973 | | |
U.S. GAAP adjustments
|
| | | | | | | | | | (21,498) | | | | | | 33,626 | | |
Total debt under U.S. GAAP
|
| | | | | | | | | | 2,836,700 | | | | | | 2,764,599 | | |
Current portion
|
| | | | | | | | | | 16,480 | | | | | | 5,784 | | |
Long term portion
|
| | | | | | | | | $ | 2,820,220 | | | | | $ | 2,758,815 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
ASSETS
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 31,631 | | | | | $ | 259,067 | | |
Income tax refund receivable
|
| | | | 1,228 | | | | | | 576 | | |
Other current assets
|
| | | | 1,232 | | | | | | 1,322 | | |
Total current assets
|
| | | | 34,091 | | | | | | 260,965 | | |
Right-of-use asset
|
| | | | 342 | | | | | | 988 | | |
Income tax refund receivable, non-current
|
| | | | — | | | | | | 387 | | |
Investments in affiliates
|
| | | | 192,664 | | | | | | 90,184 | | |
Deferred tax assets
|
| | | | 27,339 | | | | | | 37,945 | | |
Other assets
|
| | | | 33 | | | | | | 341 | | |
Total assets
|
| | | $ | 254,469 | | | | | $ | 390,810 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accrued employment costs
|
| | | $ | 2,839 | | | | | $ | 2,611 | | |
Other current liabilities
|
| | | | 2,002 | | | | | | 2,883 | | |
Total current liabilities
|
| | | | 4,841 | | | | | | 5,494 | | |
Pension and other post-retirement liabilities
|
| | | | 20,181 | | | | | | 17,447 | | |
Other liabilities
|
| | | | 19,914 | | | | | | 17,842 | | |
Total liabilities
|
| | | | 44,936 | | | | | | 40,783 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Shareholders’ Equity: | | | | | | | | | | | | | |
Preferred stock, $0.01 par value; 10,000,000 shares authorized
|
| | | | — | | | | | | — | | |
Series A junior participating preferred stock, $0.01 par value, 50,000 shares
authorized, no shares issued and outstanding |
| | | | — | | | | | | — | | |
Series B preferred stock, $0.01 par value, 5 shares authorized, 5 and nil issued and outstanding
|
| | | | — | | | | | | — | | |
Common Stock:
|
| | | | | | | | | | | | |
Voting common stock, $0.01 par value; 50,000,000 shares authorized, 21,581,572 issued
|
| | | | 216 | | | | | | 216 | | |
Non-voting common stock, $0.01 par value; 20,000,000 shares authorized, 9,505,673 issued and outstanding
|
| | | | 95 | | | | | | 95 | | |
Paid-in capital
|
| | | | 1,019,988 | | | | | | 1,019,988 | | |
Treasury stock (at cost), 154,494 shares of voting common stock
|
| | | | (9,592) | | | | | | (9,592) | | |
Accumulated deficit
|
| | | | (729,202) | | | | | | (605,766) | | |
Accumulated other comprehensive loss
|
| | | | (71,972) | | | | | | (54,914) | | |
Total shareholders’ equity
|
| | | | 209,533 | | | | | | 350,027 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 254,469 | | | | | $ | 390,810 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
General and administrative expenses
|
| | | $ | (6,717) | | | | | $ | (6,612) | | |
Recovery of affiliate doubtful receivable
|
| | | | 5,854 | | | | | | — | | |
Operating loss
|
| | | | (863) | | | | | | (6,612) | | |
Interest and investment income
|
| | | | 1,050 | | | | | | 5,727 | | |
Interest expense
|
| | | | (26) | | | | | | (24) | | |
Other expense
|
| | | | (10,898) | | | | | | (4,586) | | |
Loss before income taxes and equity in net income of affiliates
|
| | | | (10,737) | | | | | | (5,495) | | |
Income tax provision
|
| | | | (12,886) | | | | | | (6,153) | | |
Loss before equity in net income of affiliates
|
| | | | (23,623) | | | | | | (11,648) | | |
Equity in net income of affiliates
|
| | | | 116,716 | | | | | | 101,403 | | |
Net income
|
| | | $ | 93,093 | | | | | $ | 89,755 | | |
Net income per share: | | | | | | | | | | | | | |
Basic
|
| | | $ | 3.01 | | | | | $ | 2.90 | | |
Diluted
|
| | | $ | 2.98 | | | | | $ | 2.88 | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | |
Basic
|
| | | | 30,933 | | | | | | 30,933 | | |
Diluted
|
| | | | 31,020 | | | | | | 31,008 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net income
|
| | | $ | 93,093 | | | | | $ | 89,755 | | |
Other comprehensive loss, net of tax: | | | | | | | | | | | | | |
Pension and other post-retirement benefits
|
| | | | (2,826) | | | | | | (1,511) | | |
Proportionate share of Telesat other comprehensive loss
|
| | | | (14,232) | | | | | | (35,783) | | |
Other comprehensive loss, net of tax
|
| | | | (17,058) | | | | | | (37,294) | | |
Comprehensive income
|
| | | $ | 76,035 | | | | | $ | 52,461 | | |
| | |
Common Stock
|
| |
Paid-In
Capital |
| |
Treasury Stock
Voting |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Loss |
| |
Shareholders’
Equity |
| ||||||||||||||||||||||||||||||||||||||||||
|
Voting
|
| |
Non-Voting
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Shares
Issued |
| |
Amount
|
| |
Shares
Issued |
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2019
|
| | | | 21,582 | | | | | $ | 216 | | | | | | 9,506 | | | | | $ | 95 | | | | | $ | 1,019,988 | | | | | | 154 | | | | | $ | (9,592) | | | | | $ | (695,521) | | | | | $ | (17,620) | | | | | $ | 297,566 | | |
Net income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 89,755 | | | | | | | | | | | | | | |
Other comprehensive loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (37,294) | | | | | | | | |
Comprehensive income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 52,461 | | |
Balance, December 31, 2019
|
| | | | 21,582 | | | | | | 216 | | | | | | 9,506 | | | | | | 95 | | | | | | 1,019,988 | | | | | | 154 | | | | | | (9,592) | | | | | | (605,766) | | | | | | (54,914) | | | | | | 350,027 | | |
Net income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 93,093 | | | | | | — | | | | | | — | | |
Other comprehensive loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (17,058) | | | | | | | | |
Comprehensive income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 76,035 | | |
Common dividend paid ($7.00 per
share) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (216,529) | | | | | | — | | | | | | (216,529) | | |
Balance, December 31, 2020
|
| | | | 21,582 | | | | | $ | 216 | | | | | | 9,506 | | | | | $ | 95 | | | | | $ | 1,019,988 | | | | | | 154 | | | | | $ | (9,592) | | | | | $ | (729,202) | | | | | $ | (71,972) | | | | | $ | 209,533 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 93,093 | | | | | $ | 89,755 | | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
| | | | | | | | | | | | |
Non-cash operating items (Note 2)
|
| | | | (109,911) | | | | | | (97,384) | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Other current assets
|
| | | | 6,248 | | | | | | 98 | | |
Accrued employment costs and other current liabilities
|
| | | | 322 | | | | | | 93 | | |
Income taxes payable and receivable
|
| | | | (938) | | | | | | 4,387 | | |
Pension and other post-retirement liabilities
|
| | | | (2,138) | | | | | | (633) | | |
Other liabilities
|
| | | | 2,417 | | | | | | 3,998 | | |
Net cash (used in) provided by operating activities – continuing operations
|
| | | | (10,907) | | | | | | 314 | | |
Net cash provided by operating activities – discontinued operations
|
| | | | — | | | | | | 1,812 | | |
Net cash (used in) provided by operating activities
|
| | | | (10,907) | | | | | | 2,126 | | |
Investing activities: | | | | | | | | | | | | | |
Capital expenditures
|
| | | | — | | | | | | (6) | | |
Net cash used in investing activities – continuing operations
|
| | | | — | | | | | | (6) | | |
Net cash used in investing activities – discontinued operations
|
| | | | — | | | | | | — | | |
Net cash used in investing activities
|
| | | | — | | | | | | (6) | | |
Financing activities: | | | | | | | | | | | | | |
Dividends paid
|
| | | | (216,529) | | | | | | — | | |
Net cash used in financing activities – continuing operations
|
| | | | (216,529) | | | | | | — | | |
Net cash used in financing activities – discontinued operations
|
| | | | — | | | | | | — | | |
Net cash used in financing activities
|
| | | | (216,529) | | | | | | — | | |
Cash, cash equivalents and restricted cash – period (decrease) increase
|
| | | | (227,436) | | | | | | 2,120 | | |
Cash, cash equivalents and restricted cash – beginning of year
|
| | | | 259,371 | | | | | | 257,251 | | |
Cash, cash equivalents and restricted cash – end of year
|
| | | $ | 31,935 | | | | | $ | 259,371 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash and cash equivalents
|
| | | $ | 31,631 | | | | | $ | 259,067 | | |
Restricted cash included in other current assets
|
| | | | 304 | | | | | | — | | |
Restricted cash included in other assets
|
| | | | — | | | | | | 304 | | |
Cash, cash equivalents and restricted cash shown in the statement of cash flows
|
| | | $ | 31,935 | | | | | $ | 259,371 | | |
| | |
December 31, 2020
|
| |
December 31, 2019,
|
| ||||||||||||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds
|
| | | $ | 29,166 | | | | | $ | — | | | | | $ | — | | | | | $ | 256,915 | | | | | $ | — | | | | | $ | — | | |
Other current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Indemnification – Sale of SSL
|
| | | $ | — | | | | | $ | — | | | | | $ | 598 | | | | | $ | — | | | | | $ | — | | | | | $ | 598 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long term liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Indemnification – Globalstar do Brasil S.A.
|
| | | $ | — | | | | | $ | — | | | | | $ | 145 | | | | | $ | — | | | | | $ | — | | | | | $ | 145 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Non-cash operating items | | | | | | | | | | | | | |
Equity in net income of affiliates
|
| | | $ | (116,716) | | | | | $ | (101,403) | | |
Recovery of affiliate doubtful receivable
|
| | | | (5,854) | | | | | | — | | |
Deferred taxes
|
| | | | 11,362 | | | | | | 2,987 | | |
Depreciation
|
| | | | 4 | | | | | | 15 | | |
Right-of-use asset, net of lease liability
|
| | | | (6) | | | | | | 9 | | |
Amortization of prior service credit and actuarial loss
|
| | | | 1,299 | | | | | | 1,008 | | |
Net non-cash operating items – continuing operations
|
| | | $ | (109,911) | | | | | $ | (97,384) | | |
Supplemental information: | | | | | | | | | | | | | |
Interest paid – continuing operations
|
| | | $ | 26 | | | | | $ | 24 | | |
Income tax refunds
|
| | | $ | 178 | | | | | $ | 5,547 | | |
Income tax payments
|
| | | $ | 252 | | | | | $ | 288 | | |
| | |
Pension
and Other Post-retirement Benefits |
| |
Equity in
Telesat-related Other Comprehensive Loss |
| |
Accumulated
Other Comprehensive Loss |
| |||||||||
Balance, January 1, 2019
|
| | | $ | (14,656) | | | | | $ | (2,964) | | | | | $ | (17,620) | | |
Other comprehensive loss before reclassification
|
| | | | (2,307) | | | | | | (35,783) | | | | | | (38,090) | | |
Amounts reclassified from accumulated other comprehensive
loss |
| | | | 796 | | | | | | — | | | | | | 796 | | |
Net current-period other comprehensive loss
|
| | | | (1,511) | | | | | | (35,783) | | | | | | (37,294) | | |
Balance, December 31, 2019
|
| | | | (16,167) | | | | | | (38,747) | | | | | | (54,914) | | |
Other comprehensive loss before reclassification
|
| | | | (3,852) | | | | | | (14,232) | | | | | | (18,084) | | |
Amounts reclassified from accumulated other comprehensive
loss |
| | | | 1,026 | | | | | | — | | | | | | 1,026 | | |
Net current-period other comprehensive loss
|
| | | | (2,826) | | | | | | (14,232) | | | | | | (17,058) | | |
Balance, December 31, 2020
|
| | | $ | (18,993) | | | | | $ | (52,979) | | | | | $ | (71,972) | | |
| | |
Before-Tax
Amount |
| |
Tax
Benefit (Provision) |
| |
Net-of-Tax
Amount |
| |||||||||
Year ended December 31, 2020 | | | | | | | | | | | | | | | | | | | |
Pension and other post-retirement benefits:
|
| | | | | | | | | | | | | | | | | | |
Net actuarial loss and prior service credits
|
| | | $ | (4,877) | | | | | $ | 1,025 | | | | | $ | (3,852) | | |
Amortization of prior service credits and net actuarial loss
|
| | | | 1,299(a) | | | | | | (273) | | | | | | 1,026 | | |
Pension and other post-retirement benefits
|
| | | | (3,578) | | | | | | 752 | | | | | | (2,826) | | |
Equity in Telesat-related other comprehensive loss
|
| | | | (14,236) | | | | | | 4 (b) | | | | | | (14,232) | | |
Other comprehensive loss
|
| | | $ | (17,814) | | | | | $ | 756 | | | | | $ | (17,058) | | |
Year ended December 31, 2019 | | | | | | | | | | | | | | | | | | | |
Pension and other post-retirement benefits:
|
| | | | | | | | | | | | | | | | | | |
Net actuarial loss and prior service credits
|
| | | $ | (2,921) | | | | | $ | 614 | | | | | $ | (2,307) | | |
Amortization of prior service credits and net actuarial loss
|
| | | | 1,008(a) | | | | | | (212) | | | | | | 796 | | |
Pension and other post-retirement benefits
|
| | | | (1,913) | | | | | | 402 | | | | | | (1,511) | | |
Equity in Telesat-related other comprehensive loss
|
| | | | (35,793) | | | | | | 10(b) | | | | | | (35,783) | | |
Other comprehensive loss
|
| | | $ | (37,706) | | | | | $ | 412 | | | | | $ | (37,294) | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Restricted cash (see Note 2)
|
| | | $ | 304 | | | | | $ | — | | |
Indemnification receivable from SSL for pre-closing taxes (see Note 13)
|
| | | | 598 | | | | | | 598 | | |
Due from affiliates
|
| | | | 88 | | | | | | 186 | | |
Prepaid expenses
|
| | | | 240 | | | | | | 164 | | |
Other
|
| | | | 2 | | | | | | 374 | | |
| | | | $ | 1,232 | | | | | $ | 1,322 | | |
| | |
December 31,
|
| | |||||||||||
| | |
2020
|
| |
2019
|
| | ||||||||
Telesat
|
| | | $ | 192,664 | | | | | $ | 90,184 | | | | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Telesat
|
| | | $ | 116,716 | | | | | $ | 101,403 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Statement of Operations Data: | | | | | | | | | | | | | |
Revenues
|
| | | $ | 613,866 | | | | | $ | 687,868 | | |
Operating expenses
|
| | | | (136,262) | | | | | | (141,136) | | |
Depreciation and amortization
|
| | | | (174,526) | | | | | | (200,838) | | |
Impairment of intangible asset
|
| | | | (3,410) | | | | | | — | | |
Other operating expense
|
| | | | (160) | | | | | | (649) | | |
Operating income
|
| | | | 299,508 | | | | | | 345,245 | | |
Interest expense
|
| | | | (152,236) | | | | | | (186,394) | | |
Loss on refinancing
|
| | | | — | | | | | | (86,166) | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Foreign exchange gain
|
| | | | 35,655 | | | | | | 122,002 | | |
Loss on financial instruments
|
| | | | (13,305) | | | | | | (42,039) | | |
Other income
|
| | | | 5,294 | | | | | | 16,282 | | |
Income tax benefit (provision)
|
| | | | 3,721 | | | | | | (12,741) | | |
Net income
|
| | | $ | 178,637 | | | | | $ | 156,189 | | |
|
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Balance Sheet Data: | | | | | | | | | | | | | |
Current assets
|
| | | $ | 703,210 | | | | | $ | 877,294 | | |
Total assets
|
| | | | 3,943,875 | | | | | | 4,130,337 | | |
Current liabilities
|
| | | | 129,849 | | | | | | 124,217 | | |
Long-term debt, including current portion
|
| | | | 2,483,256 | | | | | | 2,836,700 | | |
Total liabilities
|
| | | | 3,140,747 | | | | | | 3,504,594 | | |
Shareholders’ equity
|
| | | | 803,128 | | | | | | 625,743 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Operating lease liability
|
| | | $ | 345 | | | | | $ | 652 | | |
Due to affiliate
|
| | | | 98 | | | | | | 5 | | |
Accrued professional fees
|
| | | | 1,287 | | | | | | 1,419 | | |
Pension and other post-retirement liabilities
|
| | | | 82 | | | | | | 77 | | |
Income taxes payable
|
| | | | — | | | | | | 673 | | |
Accrued liabilities
|
| | | | 190 | | | | | | 57 | | |
| | | | $ | 2,002 | | | | | $ | 2,883 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Current: | | | | | | | | | | | | | |
U.S. federal
|
| | | $ | (1,299) | | | | | $ | (2,918) | | |
State and local
|
| | | | 25 | | | | | | 2 | | |
Foreign
|
| | | | (250) | | | | | | (250) | | |
Total current
|
| | | | (1,524) | | | | | | (3,166) | | |
Deferred: | | | | | | | | | | | | | |
U.S. federal
|
| | | | (11,334) | | | | | | (2,990) | | |
State and local
|
| | | | (28) | | | | | | 3 | | |
Total deferred
|
| | | | (11,362) | | | | | | (2,987) | | |
Total income tax provision
|
| | | $ | (12,886) | | | | | $ | (6,153) | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Unrecognized tax benefits
|
| | | $ | (1,118) | | | | | $ | (2,467) | | |
Interest expense
|
| | | | (1,299) | | | | | | (1,570) | | |
Total
|
| | | $ | (2,417) | | | | | $ | (4,037) | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Deferred tax benefit for adjustments in other comprehensive loss (see Note 3)
|
| | | $ | 756 | | | | | $ | 412 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
U.S. Statutory Federal Corporate Income Tax Rate
|
| | | | 21% | | | | | | 21% | | |
Tax benefit
|
| | | $ | 2,255 | | | | | $ | 1,154 | | |
Permanent adjustments which change statutory amounts: | | | | | | | | | | | | | |
State and local income taxes, net of federal income tax
|
| | | | (77) | | | | | | 107 | | |
Equity in net income of affiliates
|
| | | | (17,185) | | | | | | (5,055) | | |
Federal provision for unrecognized tax benefits
|
| | | | (1,138) | | | | | | (1,226) | | |
Nondeductible expenses
|
| | | | (2,380) | | | | | | (695) | | |
Change in valuation allowance
|
| | | | 69 | | | | | | (118) | | |
Income tax credits
|
| | | | 5,820 | | | | | | — | | |
Foreign income taxes
|
| | | | (250) | | | | | | (250) | | |
Other, net
|
| | | | — | | | | | | (70) | | |
Total income tax provision
|
| | | $ | (12,886) | | | | | $ | (6,153) | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Balance at January 1
|
| | | $ | 43,037 | | | | | $ | 43,055 | | |
Decreases as a result of statute expirations
|
| | | | — | | | | | | (18) | | |
Balance at December 31
|
| | | $ | 43,037 | | | | | $ | 43,037 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforwards
|
| | | $ | 23,020 | | | | | $ | 34,294 | | |
Foreign tax credit carryforwards
|
| | | | 126,007 | | | | | | 126,007 | | |
Compensation and benefits
|
| | | | 701 | | | | | | 961 | | |
Indemnification liabilities
|
| | | | 98 | | | | | | 66 | | |
Other, net
|
| | | | 279 | | | | | | 305 | | |
Federal benefit of uncertain tax positions
|
| | | | 701 | | | | | | 428 | | |
Pension costs
|
| | | | 4,119 | | | | | | 3,375 | | |
Investments in and advances to affiliates
|
| | | | 828 | | | | | | 992 | | |
Total deferred tax assets before valuation allowance
|
| | | | 155,753 | | | | | | 166,428 | | |
Less valuation allowance
|
| | | | (128,414) | | | | | | (128,483) | | |
Deferred tax assets
|
| | | $ | 27,339 | | | | | $ | 37,945 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Operating lease liability
|
| | | $ | — | | | | | $ | 345 | | |
Indemnification liabilities – other (see Note 13)
|
| | | | 145 | | | | | | 145 | | |
Liabilities for uncertain tax positions
|
| | | | 19,769 | | | | | | 17,352 | | |
| | | | $ | 19,914 | | | | | $ | 17,842 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net income – basic
|
| | | $ | 93,093 | | | | | $ | 89,755 | | |
Less: Adjustment for dilutive effect of Telesat stock options
|
| | | | (522) | | | | | | (528) | | |
Net income – diluted
|
| | | $ | 92,571 | | | | | $ | 89,227 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Weighted average common shares outstanding
|
| | | | 30,933 | | | | | | 30,933 | | |
Weighted average unconverted restricted stock units
|
| | | | 87 | | | | | | 75 | | |
Common shares outstanding for diluted earnings per share
|
| | | | 31,020 | | | | | | 31,008 | | |
| | |
Pension Benefits
|
| |
Other Benefits
|
| ||||||||||||||||||
| | |
Year Ended December 31,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Reconciliation of benefit obligation: | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligation at beginning of period
|
| | | $ | 55,159 | | | | | $ | 49,020 | | | | | $ | 511 | | | | | $ | 479 | | |
Service cost
|
| | | | 703 | | | | | | 722 | | | | | | — | | | | | | — | | |
Interest cost
|
| | | | 1,765 | | | | | | 2,018 | | | | | | 17 | | | | | | 21 | | |
| | |
Pension Benefits
|
| |
Other Benefits
|
| ||||||||||||||||||
| | |
Year Ended December 31,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Participant contributions
|
| | | | 27 | | | | | | 25 | | | | | | — | | | | | | — | | |
Actuarial loss
|
| | | | 5,453 | | | | | | 5,256 | | | | | | 30 | | | | | | 30 | | |
Benefit payments
|
| | | | (1,926) | | | | | | (1,882) | | | | | | (19) | | | | | | (19) | | |
Obligation at December 31,
|
| | | | 61,181 | | | | | | 55,159 | | | | | | 539 | | | | | | 511 | | |
Reconciliation of fair value of plan assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value of plan assets at beginning of period
|
| | | | 38,146 | | | | | | 34,263 | | | | | | — | | | | | | — | | |
Actual return on plan assets
|
| | | | 3,257 | | | | | | 4,798 | | | | | | — | | | | | | — | | |
Employer contributions
|
| | | | 1,953 | | | | | | 942 | | | | | | 19 | | | | | | 19 | | |
Participant contributions
|
| | | | 27 | | | | | | 25 | | | | | | — | | | | | | — | | |
Benefit payments
|
| | | | (1,926) | | | | | | (1,882) | | | | | | (19) | | | | | | (19) | | |
Fair value of plan assets at December 31,
|
| | | | 41,457 | | | | | | 38,146 | | | | | | — | | | | | | — | | |
Funded status at end of period
|
| | | $ | (19,724) | | | | | $ | (17,013) | | | | | $ | (539) | | | | | $ | (511) | | |
|
| | |
Pension Benefits
|
| |
Other Benefits
|
| ||||||||||||||||||
| | |
December 31,
|
| |
December 31,
|
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Actuarial loss
|
| | | $ | (22,172) | | | | | $ | (18,613) | | | | | $ | (51) | | | | | $ | (32) | | |
| | |
Pension Benefits
December 31, |
| |
Other Benefits
December 31, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Actuarial (loss) gain during the period
|
| | | $ | (4,847) | | | | | $ | (2,891) | | | | | $ | (30) | | | | | $ | (30) | | |
Amortization of actuarial loss
|
| | | | 1,288 | | | | | | 1,006 | | | | | | 11 | | | | | | 2 | | |
Total recognized in other comprehensive (loss) income
|
| | | $ | (3,559) | | | | | $ | (1,885) | | | | | $ | (19) | | | | | $ | (28) | | |
| | |
Pension Benefits
December 31, |
| |
Other Benefits
December 31, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Current Liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 82 | | | | | $ | 77 | | |
Long-Term Liabilities
|
| | | | 19,724 | | | | | | 17,013 | | | | | | 457 | | | | | | 434 | | |
| | | | $ | 19,724 | | | | | $ | 17,013 | | | | | $ | 539 | | | | | $ | 511 | | |
| | |
Pension Benefits Year Ended
December 31, |
| |
Other Benefits Year Ended
December 31, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Service cost(1)
|
| | | $ | 703 | | | | | $ | 722 | | | | | $ | — | | | | | $ | — | | |
Interest cost(2)
|
| | | | 1,765 | | | | | | 2,018 | | | | | | 17 | | | | | | 21 | | |
Expected return on plan assets(2)
|
| | | | (2,651) | | | | | | (2,432) | | | | | | — | | | | | | — | | |
Amortization of net actuarial loss(2)
|
| | | | 1,288 | | | | | | 1,006 | | | | | | 11 | | | | | | 2 | | |
Net periodic cost
|
| | | $ | 1,105 | | | | | $ | 1,314 | | | | | $ | 28 | | | | | $ | 23 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Discount rate
|
| | | | 3.25% | | | | | | 4.25% | | |
Expected return on plan assets
|
| | | | 7.00% | | | | | | 7.25% | | |
Rate of compensation increase
|
| | | | 4.25% | | | | | | 4.25% | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Discount rate
|
| | | | 2.50% | | | | | | 3.25% | | |
Rate of compensation increase
|
| | | | 4.25% | | | | | | 4.25% | | |
| | |
December 31, 2020
Actual Allocation |
| |
Target Allocation
|
| ||||||||||||
| | |
Target
|
| |
Target Range
|
| ||||||||||||
Liquid return-seeking investments
|
| | | | 61% | | | | | | 56.5% | | | | | | 45 – 65% | | |
Alternative investments
|
| | | | 10% | | | | | | 14.5% | | | | | | 0 – 20% | | |
Fixed income investments
|
| | | | 29% | | | | | | 29.0% | | | | | | 20 – 40% | | |
| | | | | 100% | | | | | | 100% | | | | | | 100% | | |
| | |
Fair Value Measurements
|
| |||||||||||||||||||||||||||||||||
Asset Category
|
| |
Total
|
| |
Percentage
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Assets
Measured at NAV(1) |
| ||||||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
At December 31, 2020 Liquid return-seeking: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-asset fund(2)
|
| | | $ | 25,196 | | | | | | 61% | | | | | | | | | | | | | | | | | | | | | | | $ | 25,196 | | |
Fixed income securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commingled funds(3)
|
| | | | 11,881 | | | | | | 29% | | | | | | | | | | | | | | | | | | | | | | | | 11,881 | | |
Alternative investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity long/short fund(4)
|
| | | | 2,201 | | | | | | 5% | | | | | | | | | | | | | | | | | $ | 2,201 | | | | | | | | |
Private equity fund(5)
|
| | | | 22 | | | | | | 0% | | | | | | | | | | | | | | | | | | 22 | | | | | | | | |
Distressed opportunity limited partnership(6)
|
| | | | 433 | | | | | | 1% | | | | | | | | | | | | | | | | | | 433 | | | | | | | | |
Multi-strategy limited partnership(7)
|
| | | | 1,724 | | | | | | 4% | | | | | | | | | | | | | | | | | | 1,724 | | | | | | | | |
| | | | | 4,380 | | | | | | 10% | | | | | | — | | | | | | — | | | | | | 4,380 | | | | | | — | | |
| | | | $ | 41,457 | | | | | | 100% | | | | | | — | | | | | | — | | | | | $ | 4,380 | | | | | $ | 37,077 | | |
At December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liquid return-seeking: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-asset fund(2)
|
| | | $ | 23,127 | | | | | | 61% | | | | | | | | | | | | | | | | | | | | | $ | 23,127 | | | ||
Fixed income securities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commingled funds(3)
|
| | | | 11,463 | | | | | | 30% | | | | | | | | | | | | | | | | | | | | | | | | 11,463 | | |
Alternative investments:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity long/short fund(4)
|
| | | | 1,349 | | | | | | 4% | | | | | | | | | | | | | | | | | $ | 1,349 | | | | | | | | |
Private equity fund(5)
|
| | | | 48 | | | | | | 0% | | | | | | | | | | | | | | | | | | 48 | | | | | | | | |
Distressed opportunity limited partnership(6)
|
| | | | 463 | | | | | | 1% | | | | | | | | | | | | | | | | | | 463 | | | | | | | | |
Multi-strategy limited partnership(7)
|
| | | | 1,696 | | | | | | 4% | | | | | | | | | | | | | | | | | | 1,696 | | | | | | | | |
| | | | | 3,556 | | | | | | 9% | | | | | | — | | | | | | — | | | | | | 3,556 | | | | | | — | | |
| | | | $ | 38,146 | | | | | | 100% | | | | | | — | | | | | | — | | | | | $ | 3,556 | | | | | $ | 34,590 | | |
| | |
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3) |
| |||||||||||||||||||||||||||
| | |
Private
Equity Fund |
| |
Equity
Long/Short Fund |
| |
Distressed
Opportunity Ltd. Partnership |
| |
Multi
Strategy Fund |
| |
Total
|
| |||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
Balance, January 1, 2019
|
| | | $ | 76 | | | | | $ | 1,002 | | | | | $ | 463 | | | | | $ | 1,602 | | | | | $ | 3,143 | | |
Unrealized (loss) gain
|
| | | | (23) | | | | | | 347 | | | | | | — | | | | | | 94 | | | | | | 418 | | |
Sales
|
| | | | (5) | | | | | | — | | | | | | — | | | | | | — | | | | | | (5) | | |
Balance, December 31, 2019
|
| | | | 48 | | | | | | 1,349 | | | | | | 463 | | | | | | 1,696 | | | | | | 3,556 | | |
Unrealized (loss) gain
|
| | | | (26) | | | | | | 852 | | | | | | (30) | | | | | | 28 | | | | | | 824 | | |
Balance, December 31, 2020
|
| | | $ | 22 | | | | | $ | 2,201 | | | | | $ | 433 | | | | | $ | 1,724 | | | | | $ | 4,380 | | |
| | |
Pension
|
| |
Other
|
| ||||||
| | |
Benefits
|
| |
Benefits
|
| ||||||
2021
|
| | | $ | 2,323 | | | | | $ | 84 | | |
2022
|
| | | | 2,421 | | | | | | 71 | | |
2023
|
| | | | 2,573 | | | | | | 60 | | |
2024
|
| | | | 2,814 | | | | | | 49 | | |
2025
|
| | | | 2,833 | | | | | | 40 | | |
2026 to 2030
|
| | | | 15,346 | | | | | | 122 | | |
| | |
Lease
Expense |
| |||
Year ended December 31, 2020
|
| | | $ | 695 | | |
Year ended December 31, 2019
|
| | | | 677 | | |
|
2021 (January 1, 2021 through June 30, 2021)
|
| | | | 350 | | |
|
Total operating lease payments
|
| | | | 350 | | |
|
Less: Interest
|
| | | | (5) | | |
|
Operating lease liability
|
| | | $ | 345 | | |
| Amounts recognized in Balance Sheet | | | | | | | |
|
Other current liabilities
|
| | | $ | 345 | | |
| | | | | | | | |
Additions
|
| | | |||||||||||||||||||
Description
|
| |
Balance at
Beginning of Period |
| |
Charged to
Costs and Expenses |
| |
Charged to
Other Accounts |
| |
Deductions
from Allowance |
| |
Balance at
End of Period |
| |||||||||||||||
Year ended December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for affiliate receivables
|
| | | $ | 6,692 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 6,692 | | |
Deferred tax valuation allowance
|
| | | $ | 128,365 | | | | | $ | 118 | | | | | $ | — | | | | | $ | — | | | | | $ | 128,483 | | |
Year ended December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for affiliate receivables
|
| | | $ | 6,692 | | | | | $ | — | | | | | $ | — | | | | | $ | (6,552)(1) | | | | | $ | 140 | | |
Deferred tax valuation allowance
|
| | | $ | 128,483 | | | | | $ | (69) | | | | | $ | — | | | | | $ | — | | | | | $ | 128,414 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
ASSETS
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 259,067 | | | | | $ | 256,947 | | |
Income tax refund receivable
|
| | | | 576 | | | | | | 3,903 | | |
Other current assets
|
| | | | 1,322 | | | | | | 3,232 | | |
Total current assets
|
| | | | 260,965 | | | | | | 264,082 | | |
Right-of-use asset
|
| | | | 988 | | | | | | — | | |
Income tax refund receivable, non-current
|
| | | | 387 | | | | | | 774 | | |
Investments in affiliates
|
| | | | 90,184 | | | | | | 24,574 | | |
Deferred tax assets
|
| | | | 37,945 | | | | | | 40,520 | | |
Other assets
|
| | | | 341 | | | | | | 350 | | |
Total assets
|
| | | $ | 390,810 | | | | | $ | 330,300 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accrued employment costs
|
| | | $ | 2,611 | | | | | $ | 2,573 | | |
Other current liabilities
|
| | | | 2,883 | | | | | | 1,495 | | |
Total current liabilities
|
| | | | 5,494 | | | | | | 4,068 | | |
Pension and other post-retirement liabilities
|
| | | | 17,447 | | | | | | 15,167 | | |
Other liabilities
|
| | | | 17,842 | | | | | | 13,499 | | |
Total liabilities
|
| | | | 40,783 | | | | | | 32,734 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Shareholders’ Equity: | | | | | | | | | | | | | |
Preferred stock, $0.01 par value; 10,000,000 shares authorized, no shares issued and outstanding
|
| | | | — | | | | | | — | | |
Common Stock:
|
| | | | | | | | | | | | |
Voting common stock, $0.01 par value; 50,000,000 shares authorized, 21,581,572 issued
|
| | | | 216 | | | | | | 216 | | |
Non-voting common stock, $0.01 par value; 20,000,000 shares authorized, 9,505,673 issued and outstanding
|
| | | | 95 | | | | | | 95 | | |
Paid-in capital
|
| | | | 1,019,988 | | | | | | 1,019,988 | | |
Treasury stock (at cost), 154,494 shares of voting common stock
|
| | | | (9,592) | | | | | | (9,592) | | |
Accumulated deficit
|
| | | | (605,766) | | | | | | (695,521) | | |
Accumulated other comprehensive loss
|
| | | | (54,914) | | | | | | (17,620) | | |
Total shareholders’ equity
|
| | | | 350,027 | | | | | | 297,566 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 390,810 | | | | | $ | 330,300 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
General and administrative expenses
|
| | | $ | (6,612) | | | | | $ | (6,534) | | |
Operating loss
|
| | | | (6,612) | | | | | | (6,534) | | |
Interest and investment income
|
| | | | 5,727 | | | | | | 4,746 | | |
Interest expense
|
| | | | (24) | | | | | | (26) | | |
Other expense
|
| | | | (4,586) | | | | | | (3,445) | | |
Loss from continuing operations before income taxes and equity in net income (loss)
of affiliates |
| | | | (5,495) | | | | | | (5,259) | | |
Income tax (provision) benefit
|
| | | | (6,153) | | | | | | 39,348 | | |
(Loss) income from continuing operations before equity in net income (loss) of affiliates
|
| | | | (11,648) | | | | | | 34,089 | | |
Equity in net income (loss) of affiliates
|
| | | | 101,403 | | | | | | (24,412) | | |
Income from continuing operations
|
| | | | 89,755 | | | | | | 9,677 | | |
Loss from discontinued operations, net of tax
|
| | | | — | | | | | | (63) | | |
Net income
|
| | | $ | 89,755 | | | | | $ | 9,614 | | |
Net income per share: | | | | | | | | | | | | | |
Basic
|
| | | | | | | | | | | | |
Income from continuing operations
|
| | | $ | 2.9 | | | | | $ | 0.31 | | |
Loss from discontinued operations, net of tax
|
| | | | — | | | | | | — | | |
Net income
|
| | | $ | 2.9 | | | | | $ | 0.31 | | |
Diluted
|
| | | | | | | | | | | | |
Income from continuing operations
|
| | | $ | 2.88 | | | | | $ | 0.31 | | |
Loss from discontinued operations, net of tax
|
| | | | — | | | | | | — | | |
Net income
|
| | | $ | 2.88 | | | | | $ | 0.31 | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | |
Basic
|
| | | | 30,933 | | | | | | 30,933 | | |
Diluted
|
| | | | 31,008 | | | | | | 31,008 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Net income
|
| | | $ | 89,755 | | | | | $ | 9,614 | | |
Other comprehensive (loss) income, net of tax: | | | | | | | | | | | | | |
Pension and other post-retirement benefits
|
| | | | (1,511) | | | | | | 1,798 | | |
Proportionate share of Telesat other comprehensive (loss) income
|
| | | | (35,783) | | | | | | 22,033 | | |
Other comprehensive (loss) income, net of tax
|
| | | | (37,294) | | | | | | 23,831 | | |
Comprehensive income
|
| | | $ | 52,461 | | | | | $ | 33,445 | | |
| | |
Common Stock
|
| |
Paid-In
Capital |
| |
Treasury Stock
Voting |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Loss |
| |
Shareholders’
Equity |
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Voting
|
| |
Non-Voting
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
Issued |
| |
Amount
|
| |
Shares
Issued |
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2018
|
| | | | 21,582 | | | | | $ | 216 | | | | | | 9,506 | | | | | $ | 95 | | | | | $ | 1,019,988 | | | | | | 154 | | | | | $ | (9,592) | | | | | $ | (682,831) | | | | | $ | (37,278) | | | | | $ | 290,598 | | |
Net income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 9,614 | | | | | | | | | | | | | | |
Other comprehensive income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 23,831 | | | | | | | | |
Comprehensive income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 33,445 | | |
Tax Cuts and Jobs Act, reclassification tax effect
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,173 | | | | | | (4,173) | | | | | | — | | |
Cumulative effect adjustment attributable to investment in Telesat
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (26,477) | | | | | | | | | | | | (26,477) | | |
Balance, December 31, 2018
|
| | | | 21,582 | | | | | | 216 | | | | | | 9,506 | | | | | | 95 | | | | | | 1,019,988 | | | | | | 154 | | | | | | (9,592) | | | | | | (695,521) | | | | | | (17,620) | | | | | | 297,566 | | |
Net income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 89,755 | | | | | | — | | | | | | — | | |
Other comprehensive loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (37,294) | | | | | | | | |
Comprehensive income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 52,461 | | |
Balance, December 31, 2019
|
| | | | 21,582 | | | | | $ | 216 | | | | | | 9,506 | | | | | $ | 95 | | | | | $ | 1,019,988 | | | | | | 154 | | | | | $ | (9,592) | | | | | $ | (605,766) | | | | | $ | (54,914) | | | | | $ | 350,027 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Operating activities: | | | | | | | | | | | | | |
Net income
|
| | | $ | 89,755 | | | | | $ | 9,614 | | |
Loss from discontinued operations, net of tax
|
| | | | — | | | | | | 63 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | |
Non-cash operating items (Note 2)
|
| | | | (97,384) | | | | | | 34,539 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Other current assets
|
| | | | 98 | | | | | | (133) | | |
Accrued employment costs and other current liabilities
|
| | | | 93 | | | | | | 184 | | |
Income taxes payable and receivable
|
| | | | 4,387 | | | | | | 7,978 | | |
Pension and other post-retirement liabilities
|
| | | | (633) | | | | | | (2,411) | | |
Other liabilities
|
| | | | 3,998 | | | | | | (47,976) | | |
Net cash provided by operating activities – continuing operations
|
| | | | 314 | | | | | | 1,858 | | |
Net cash provided by (used in) operating activities – discontinued operations
|
| | | | 1,812 | | | | | | (46) | | |
Net cash provided by operating activities
|
| | | | 2,126 | | | | | | 1,812 | | |
Investing activities: | | | | | | | | | | | | | |
Capital expenditures
|
| | | | (6) | | | | | | (4) | | |
Net cash used in investing activities – continuing operations
|
| | | | (6) | | | | | | (4) | | |
Net cash used in investing activities – discontinued operations
|
| | | | — | | | | | | — | | |
Net cash used in investing activities
|
| | | | (6) | | | | | | (4) | | |
Cash, cash equivalents and restricted cash – period increase
|
| | | | 2,120 | | | | | | 1,808 | | |
Cash, cash equivalents and restricted cash – beginning of year
|
| | | | 257,251 | | | | | | 255,443 | | |
Cash, cash equivalents and restricted cash – end of year
|
| | | $ | 259,371 | | | | | $ | 257,251 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Cash and cash equivalents
|
| | | $ | 259,067 | | | | | $ | 256,947 | | |
Restricted cash included in other assets
|
| | | | 304 | | | | | | 304 | | |
Cash, cash equivalents and restricted cash shown in the statement
of cash flows |
| | | $ | 259,371 | | | | | $ | 257,251 | | |
| | |
December 31, 2019
|
| |
December 31, 2018,
|
| ||||||||||||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds
|
| | | $ | 256,915 | | | | | $ | — | | | | | $ | — | | | | | $ | 254,552 | | | | | $ | — | | | | | $ | — | | |
Other current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Indemnification – Sale of SSL
|
| | | $ | — | | | | | $ | — | | | | | $ | 598 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,410 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long term liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Indemnification – Globalstar do Brasil S.A.
|
| | | $ | — | | | | | $ | — | | | | | $ | 145 | | | | | $ | — | | | | | $ | — | | | | | $ | 184 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Non-cash operating items | | | | | | | | | | | | | |
Equity in net (income) loss of affiliates
|
| | | $ | (101,403) | | | | | $ | 24,412 | | |
Deferred taxes
|
| | | | 2,987 | | | | | | 9,030 | | |
Depreciation
|
| | | | 15 | | | | | | 26 | | |
Right-of-use asset, net of lease liability
|
| | | | 9 | | | | | | — | | |
Amortization of prior service credit and actuarial loss
|
| | | | 1,008 | | | | | | 1,071 | | |
Net non-cash operating items – continuing operations
|
| | | $ | (97,384) | | | | | $ | 34,539 | | |
Supplemental information: | | | | | | | | | | | | | |
Interest paid – continuing operations
|
| | | $ | 24 | | | | | $ | 26 | | |
Income tax refunds
|
| | | $ | 5,547 | | | | | $ | 8,619 | | |
Income tax payments
|
| | | $ | 288 | | | | | $ | 264 | | |
| | |
Pension and
Other Post- retirement Benefits |
| |
Equity in
Telesat- related Other Comprehensive Loss |
| |
Accumulated
Other Comprehensive Loss |
| |||||||||
Balance, January 1, 2018
|
| | | $ | (16,454) | | | | | $ | (20,824) | | | | | $ | (37,278) | | |
Other comprehensive income before reclassification
|
| | | | 953 | | | | | | 22,033 | | | | | | 22,986 | | |
Amounts reclassified from accumulated other comprehensive loss
|
| | | | 845 | | | | | | — | | | | | | 845 | | |
Net current-period other comprehensive income
|
| | | | 1,798 | | | | | | 22,033 | | | | | | 23,831 | | |
Tax Cuts and Jobs Act, reclassification of tax effect from accumulated other comprehensive loss to accumulated deficit
|
| | | | — | | | | | | (4,173) | | | | | | (4,173) | | |
Balance, December 31, 2018
|
| | | | (14,656) | | | | | | (2,964) | | | | | | (17,620) | | |
Other comprehensive loss before reclassification:
|
| | | | | | | | | | | | | | | | | | |
Prior periods (see Note 5)
|
| | | | — | | | | | | (22,050) | | | | | | (22,050) | | |
Current period
|
| | | | (2,307) | | | | | | (13,733) | | | | | | (16,040) | | |
Other comprehensive loss before reclassification
|
| | | | (2,307) | | | | | | (35,783) | | | | | | (38,090) | | |
Amounts reclassified from accumulated other comprehensive loss
|
| | | | 796 | | | | | | — | | | | | | 796 | | |
Net current-period other comprehensive loss
|
| | | | (1,511) | | | | | | (35,783) | | | | | | (37,294) | | |
Balance, December 31, 2019
|
| | | $ | (16,167) | | | | | $ | (38,747) | | | | | $ | (54,914) | | |
| | |
Before-Tax
Amount |
| |
Tax
Benefit (Provision) |
| |
Net-of-Tax
Amount |
| |||||||||
Year ended December 31, 2019 | | | | | | | | | | | | | | | | | | | |
Pension and other post-retirement benefits: | | | | | | | | | | | | | | | | | | | |
Net actuarial loss and prior service credits
|
| | | $ | (2,921) | | | | | $ | 614 | | | | | $ | (2,307) | | |
Amortization of prior service credits and net actuarial loss
|
| | | | 1,008(a) | | | | | | (212) | | | | | | 796 | | |
Pension and other post-retirement benefits:
|
| | | | (1,913) | | | | | | 402 | | | | | | (1,511) | | |
Equity in Telesat-related other comprehensive loss: | | | | | | | | | | | | | | | | | | | |
Prior periods (See Note 5)
|
| | | | (22,056) | | | | | | 6 | | | | | | (22,050) | | |
Current period
|
| | | | (13,737) | | | | | | 4 | | | | | | (13,733) | | |
Equity in Telesat-related other comprehensive loss
|
| | | | (35,793) | | | | | | 10(b) | | | | | | (35,783) | | |
Other comprehensive loss
|
| | | $ | (37,706) | | | | | $ | 412 | | | | | $ | (37,294) | | |
Year ended December 31, 2018 | | | | | | | | | | | | | | | | | | | |
Pension and other post-retirement benefits: | | | | | | | | | | | | | | | | | | | |
Net actuarial gain and prior service credits
|
| | | $ | 1,208 | | | | | $ | (255) | | | | | $ | 953 | | |
Amortization of prior service credits and net actuarial loss
|
| | | | 1,071(a) | | | | | | (226) | | | | | | 845 | | |
Pension and other post-retirement benefits:
|
| | | | 2,279 | | | | | | (481) | | | | | | 1,798 | | |
Equity in Telesat-related other comprehensive income
|
| | | | 22,033 | | | | | | —(b) | | | | | | 22,033 | | |
Other comprehensive income
|
| | | $ | 24,312 | | | | | $ | (481) | | | | | $ | 23,831 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Indemnification receivable from SSL for pre-closing taxes (see Note 13)
|
| | | $ | 598 | | | | | $ | 2,410 | | |
Due from affiliates
|
| | | | 186 | | | | | | 161 | | |
Prepaid expenses
|
| | | | 164 | | | | | | 151 | | |
Other
|
| | | | 374 | | | | | | 510 | | |
| | | | $ | 1,322 | | | | | $ | 3,232 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Telesat
|
| | | $ | 90,184 | | | | | $ | 24,574 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Telesat
|
| | | $ | 101,403 | | | | | $ | (24,412) | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Statement of Operations Data: | | | | | | | | | | | | | |
Revenues
|
| | | $ | 687,868 | | | | | $ | 699,596 | | |
Operating expenses
|
| | | | (129,770) | | | | | | (137,400) | | |
Depreciation, amortization and stock-based compensation
|
| | | | (212,282) | | | | | | (205,451) | | |
Other operating (expense) income
|
| | | | (649) | | | | | | 576 | | |
Operating income
|
| | | | 345,167 | | | | | | 357,321 | | |
Interest expense
|
| | | | (186,394) | | | | | | (176,873) | | |
Loss on refinancing
|
| | | | (86,166) | | | | | | — | | |
Foreign exchange gain (loss)
|
| | | | 122,002 | | | | | | (203,005) | | |
(Loss) gain on financial instruments
|
| | | | (42,039) | | | | | | 15,795 | | |
Other income
|
| | | | 16,360 | | | | | | 11,335 | | |
Income tax provision
|
| | | | (12,741) | | | | | | (45,423) | | |
Net income (loss)
|
| | | $ | 156,189 | | | | | $ | (40,850) | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Balance Sheet Data: | | | | | | | | | | | | | |
Current assets
|
| | | $ | 877,294 | | | | | $ | 628,125 | | |
Total assets
|
| | | | 4,130,337 | | | | | | 3,942,847 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Current liabilities
|
| | | | 124,217 | | | | | | 139,401 | | |
Long-term debt, including current portion
|
| | | | 2,836,700 | | | | | | 2,764,599 | | |
Total liabilities
|
| | | | 3,504,594 | | | | | | 3,474,504 | | |
Shareholders’ equity
|
| | | | 625,743 | | | | | | 468,343 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Operating lease liability
|
| | | | 652 | | | | | | — | | |
Due to affiliate
|
| | | $ | 5 | | | | | $ | 164 | | |
Accrued professional fees
|
| | | | 1,419 | | | | | | 1,206 | | |
Pension and other post-retirement liabilities
|
| | | | 77 | | | | | | 69 | | |
Income taxes payable
|
| | | | 673 | | | | | | — | | |
Accrued liabilities
|
| | | | 57 | | | | | | 56 | | |
| | | | $ | 2,883 | | | | | $ | 1,495 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Current: | | | | | | | | | | | | | |
U.S. federal
|
| | | $ | (2,918) | | | | | $ | 47,761 | | |
State and local
|
| | | | 2 | | | | | | 867 | | |
Foreign
|
| | | | (250) | | | | | | (250) | | |
Total current
|
| | | | (3,166) | | | | | | 48,378 | | |
Deferred: | | | | | | | | | | | | | |
U.S. federal
|
| | | | (2,990) | | | | | | (9,036) | | |
State and local
|
| | | | 3 | | | | | | 6 | | |
Total deferred
|
| | | | (2,987) | | | | | | (9,030) | | |
Total income tax (provision) benefit
|
| | | $ | (6,153) | | | | | $ | 39,348 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Unrecognized tax benefits
|
| | | $ | (2,467) | | | | | $ | 41,115 | | |
Interest expense
|
| | | | (1,570) | | | | | | 6,752 | | |
Total
|
| | | $ | (4,037) | | | | | $ | 47,867 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Tax benefit on loss from discontinued operations
|
| | | $ | — | | | | | $ | 16 | | |
Deferred tax benefit (provision) for adjustments in other comprehensive loss (see Note 3)
|
| | | | 412 | | | | | | (481) | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
U.S. Statutory Federal Corporate Income Tax Rate
|
| | | | 21% | | | | | | 21% | | |
Tax benefit
|
| | | $ | 1,154 | | | | | $ | 1,104 | | |
Permanent adjustments which change statutory amounts: | | | | | | | | | | | | | |
State and local income taxes, net of federal income tax
|
| | | | 107 | | | | | | 666 | | |
Equity in net income (loss) of affiliates
|
| | | | (5,055) | | | | | | (6,241) | | |
Federal (provision) benefit for unrecognized tax benefits
|
| | | | (1,226) | | | | | | 46,534 | | |
Nondeductible expenses
|
| | | | (695) | | | | | | (957) | | |
Change in valuation allowance
|
| | | | (118) | | | | | | (4,329) | | |
Income tax credits
|
| | | | — | | | | | | 4,554 | | |
Foreign income taxes
|
| | | | (250) | | | | | | (250) | | |
Effect of U.S. tax law changes
|
| | | | — | | | | | | (1,542) | | |
Other, net
|
| | | | (70) | | | | | | (191) | | |
Total income tax (provision) benefit
|
| | | $ | (6,153) | | | | | $ | 39,348 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Balance at January 1
|
| | | $ | 43,055 | | | | | $ | 70,410 | | |
Decreases as a result of statute expirations
|
| | | | (18) | | | | | | (27,355) | | |
Balance at December 31
|
| | | $ | 43,037 | | | | | $ | 43,055 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Operating lease liability
|
| | | $ | 345 | | | | | $ | — | | |
Indemnification liabilities – other (see Note 13)
|
| | | | 145 | | | | | | 184 | | |
Liabilities for uncertain tax positions
|
| | | | 17,352 | | | | | | 13,315 | | |
| | | | $ | 17,842 | | | | | $ | 13,499 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Income from continuing operations – basic
|
| | | $ | 89,755 | | | | | $ | 9,677 | | |
Less: Adjustment for dilutive effect of Telesat stock options
|
| | | | (528) | | | | | | — | | |
Income from continuing operations – diluted
|
| | | $ | 89,227 | | | | | $ | 9,677 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Weighted average common shares outstanding
|
| | | | 30,933 | | | | | | 30,933 | | |
Unconverted restricted stock units
|
| | | | 75 | | | | | | 75 | | |
Common shares outstanding for diluted earnings per share
|
| | | | 31,008 | | | | | | 31,008 | | |
| | |
Pension Benefits
|
| |
Other Benefits
|
| ||||||||||||||||||
| | |
Year Ended December 31,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2019
|
| |
2018
|
| ||||||||||||
Reconciliation of benefit obligation: | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligation at beginning of period
|
| | | $ | 49,020 | | | | | $ | 53,976 | | | | | $ | 479 | | | | | $ | 519 | | |
Service cost
|
| | | | 722 | | | | | | 715 | | | | | | — | | | | | | 1 | | |
Interest cost
|
| | | | 2,018 | | | | | | 1,855 | | | | | | 21 | | | | | | 18 | | |
Participant contributions
|
| | | | 25 | | | | | | 27 | | | | | | — | | | | | | 15 | | |
Actuarial loss (gain)
|
| | | | 5,256 | | | | | | (5,725) | | | | | | 30 | | | | | | (36) | | |
Benefit payments
|
| | | | (1,882) | | | | | | (1,828) | | | | | | (19) | | | | | | (38) | | |
Obligation at December 31,
|
| | | | 55,159 | | | | | | 49,020 | | | | | | 511 | | | | | | 479 | | |
Reconciliation of fair value of plan assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value of plan assets at beginning of period
|
| | | | 34,263 | | | | | | 35,640 | | | | | | — | | | | | | — | | |
Actual return on plan assets
|
| | | | 4,798 | | | | | | (1,925) | | | | | | — | | | | | | — | | |
Employer contributions
|
| | | | 942 | | | | | | 2,349 | | | | | | 19 | | | | | | 23 | | |
Participant contributions
|
| | | | 25 | | | | | | 27 | | | | | | — | | | | | | 15 | | |
Benefit payments
|
| | | | (1,882) | | | | | | (1,828) | | | | | | (19) | | | | | | (38) | | |
Fair value of plan assets at December 31,
|
| | | | 38,146 | | | | | | 34,263 | | | | | | — | | | | | | — | | |
Funded status at end of period
|
| | | $ | (17,013) | | | | | $ | (14,757) | | | | | $ | (511) | | | | | $ | (479) | | |
| | |
Pension Benefits
|
| |
Other Benefits
|
| ||||||||||||||||||
| | |
December 31,
|
| |
December 31,
|
| ||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2019
|
| |
2018
|
| ||||||||||||
Actuarial loss
|
| | | $ | (18,613) | | | | | $ | (16,728) | | | | | $ | (32) | | | | | $ | (4) | | |
| | |
Year Ended December 31,
|
| |||||||||||||||||||||
| | |
2019
|
| |
2018
|
| ||||||||||||||||||
| | |
Pension
Benefits |
| |
Other
Benefits |
| |
Pension
Benefits |
| |
Other
Benefits |
| ||||||||||||
Actuarial (loss) gain during the period
|
| | | $ | (2,891) | | | | | $ | (30) | | | | | $ | 1,172 | | | | | $ | 36 | | |
Amortization of actuarial loss
|
| | | | 1,006 | | | | | | 2 | | | | | | 1,041 | | | | | | 8 | | |
Amortization of prior service cost
|
| | | | — | | | | | | — | | | | | | — | | | | | | 22 | | |
Total recognized in other comprehensive (loss) income
|
| | | $ | (1,885) | | | | | $ | (28) | | | | | $ | 2,213 | | | | | $ | 66 | | |
| | |
Pension Benefits
|
| |
Other Benefits
|
| ||||||||||||||||||
| | |
December 31,
|
| |
December 31,
|
| ||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2019
|
| |
2018
|
| ||||||||||||
Current Liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 77 | | | | | $ | 69 | | |
Long-Term Liabilities
|
| | | | 17,013 | | | | | | 14,757 | | | | | | 434 | | | | | | 410 | | |
| | | | $ | 17,013 | | | | | $ | 14,757 | | | | | $ | 511 | | | | | $ | 479 | | |
| | |
Pension Benefits
|
| |
Other Benefits
|
| ||||||||||||||||||
| | |
Year Ended December 31,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
2019
|
| |
2018
|
| ||||||||||||
Service cost(1)
|
| | | $ | 722 | | | | | $ | 715 | | | | | $ | — | | | | | $ | 1 | | |
Interest cost(2)
|
| | | | 2,018 | | | | | | 1,855 | | | | | | 21 | | | | | | 18 | | |
Expected return on plan assets(2)
|
| | | | (2,432) | | | | | | (2,628) | | | | | | — | | | | | | — | | |
Amortization of prior service cost(2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 22 | | |
Amortization of net actuarial loss(2)
|
| | | | 1,006 | | | | | | 1,041 | | | | | | 2 | | | | | | 8 | | |
Net periodic cost
|
| | | $ | 1,314 | | | | | $ | 983 | | | | | $ | 23 | | | | | $ | 49 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Discount rate
|
| | | | 4.25% | | | | | | 3.50% | | |
Expected return on plan assets
|
| | | | 7.25% | | | | | | 7.25% | | |
Rate of compensation increase
|
| | | | 4.25% | | | | | | 4.25% | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Discount rate
|
| | | | 3.25% | | | | | | 4.25% | | |
Rate of compensation increase
|
| | | | 4.25% | | | | | | 4.25% | | |
| | |
December 31,
2019 Actual Allocation |
| |
Target Allocation
|
| ||||||||||||
|
Target
|
| |
Target
Range |
| ||||||||||||||
Liquid return-seeking investments
|
| | | | 61% | | | | | | 56.5% | | | | | | 45-65% | | |
Alternative investments
|
| | | | 9% | | | | | | 14.5% | | | | | | 0-20% | | |
Fixed income investments
|
| | | | 30% | | | | | | 29.0% | | | | | | 20-40% | | |
| | | | | 100% | | | | | | 100% | | | | | | 100% | | |
| | |
Fair Value Measurements
|
| |||||||||||||||||||||||||||||||||
Asset Category
|
| |
Total
|
| |
Percentage
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Assets
Measured at NAV(1) |
| ||||||||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||||||||||||||
At December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liquid return-seeking: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-asset fund(2)
|
| | | $ | 23,127 | | | | | | 61% | | | | | | | | | | | | | | | | | | | | | | | $ | 23,127 | | |
Fixed income securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commingled funds(3)
|
| | | | 11,463 | | | | | | 30% | | | | | | | | | | | | | | | | | | | | | | | | 11,463 | | |
Alternative investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity long/short fund(4)
|
| | | | 1,349 | | | | | | 4% | | | | | | | | | | | | | | | | | $ | 1,349 | | | | | | | | |
Private equity fund(5)
|
| | | | 48 | | | | | | 0% | | | | | | | | | | | | | | | | | | 48 | | | | | | | | |
Distressed opportunity limited partnership(6)
|
| | | | 463 | | | | | | 1% | | | | | | | | | | | | | | | | | | 463 | | | | | | | | |
Multi-strategy limited partnership(7)
|
| | | | 1,696 | | | | | | 4% | | | | | | | | | | | | | | | | | | 1,696 | | | | | | | | |
| | | | | 3,556 | | | | | | 9% | | | | | | — | | | | | | — | | | | | | 3,556 | | | | | | — | | |
| | | | $ | 38,146 | | | | | | 100% | | | | | | — | | | | | | — | | | | | $ | 3,556 | | | | | $ | 34,590 | | |
At December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liquid return-seeking: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-asset fund(2)
|
| | | $ | 20,251 | | | | | | 59% | | | | | | | | | | | | | | | | | | | | | | | $ | 20,251 | | |
Fixed income securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commingled funds(3)
|
| | | | 10,869 | | | | | | 32% | | | | | | | | | | | | | | | | | | | | | | | | 10,869 | | |
Alternative investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity long/short fund(4)
|
| | | | 1,002 | | | | | | 3% | | | | | | | | | | | | | | | | | $ | 1,002 | | | | | | | | |
Private equity fund(5)
|
| | | | 76 | | | | | | 0% | | | | | | | | | | | | | | | | | | 76 | | | | | | | | |
Distressed opportunity limited partnership(6)
|
| | | | 463 | | | | | | 1% | | | | | | | | | | | | | | | | | | 463 | | | | | | | | |
Multi-strategy limited partnership(7)
|
| | | | 1,602 | | | | | | 5% | | | | | | | | | | | | | | | | | | 1,602 | | | | | | | | |
| | | | | 3,143 | | | | | | 9% | | | | | | — | | | | | | — | | | | | | 3,143 | | | | | | — | | |
| | | | $ | 34,263 | | | | | | 100% | | | | | | — | | | | | | — | | | | | $ | 3,143 | | | | | $ | 31,120 | | |
| | |
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3) |
| |||||||||||||||||||||||||||
| | |
Private
Equity Fund |
| |
Equity
Long/Short Fund |
| |
Distressed
Opportunity Ltd. Partnership |
| |
Multi
Strategy Fund |
| |
Total
|
| |||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
Balance, January 1, 2018
|
| | | $ | 83 | | | | | $ | 1,067 | | | | | $ | 504 | | | | | $ | 1,572 | | | | | $ | 3,226 | | |
Unrealized gain
|
| | | | 10 | | | | | | (65) | | | | | | (41) | | | | | | 30 | | | | | | (66) | | |
Sales
|
| | | | (17) | | | | | | — | | | | | | — | | | | | | — | | | | | | (17) | | |
Balance, December 31, 2018
|
| | | | 76 | | | | | | 1,002 | | | | | | 463 | | | | | | 1,602 | | | | | | 3,143 | | |
Unrealized gain (loss)
|
| | | | (23) | | | | | | 347 | | | | | | — | | | | | | 94 | | | | | | 418 | | |
Sales
|
| | | | (5) | | | | | | — | | | | | | — | | | | | | — | | | | | | (5) | | |
Balance, December 31, 2019
|
| | | $ | 48 | | | | | $ | 1,349 | | | | | $ | 463 | | | | | $ | 1,696 | | | | | $ | 3,556 | | |
| | |
Pension
Benefits |
| |
Other
Benefits |
| ||||||
2020
|
| | | $ | 2,103 | | | | | $ | 78 | | |
2021
|
| | | | 2,267 | | | | | | 68 | | |
2022
|
| | | | 2,368 | | | | | | 58 | | |
2023
|
| | | | 2,527 | | | | | | 50 | | |
2024
|
| | | | 2,770 | | | | | | 41 | | |
2025 to 2029
|
| | | | 14,831 | | | | | | 128 | | |
| | |
Lease
Expense |
| |||
Year ended December 31, 2019
|
| | | $ | 677 | | |
Year ended December 31, 2018
|
| | | | 680 | | |
|
2020
|
| | | $ | 701 | | |
|
2021
|
| | | | 350 | | |
|
Total operating lease payments
|
| | | | 1,051 | | |
|
Less: Interest
|
| | | | (54) | | |
|
Operating lease liability
|
| | | $ | 997 | | |
| Amounts recognized in Balance Sheet | | | | | | | |
|
Other current liabilities
|
| | | $ | 652 | | |
|
Other liabilities
|
| | | | 345 | | |
| | | | | $ | 997 | | |
| | | | | | | | |
Additions
|
| | ||||||||||||||
Description
|
| |
Balance at
Beginning of Period |
| |
Charged to
Costs and Expenses |
| |
Charged to
Other Accounts |
| |
Balance at
End of Period |
| ||||||||||||
Year ended December 31, 2018 | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for affiliate receivables
|
| | | $ | 6,692 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,692 | | |
Deferred tax valuation allowance
|
| | | $ | 124,036 | | | | | $ | 4,329 | | | | | $ | — | | | | | $ | 128,365 | | |
Year ended December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for affiliate receivables
|
| | | $ | 6,692 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,692 | | |
Deferred tax valuation allowance
|
| | | $ | 128,365 | | | | | $ | 118 | | | | | $ | — | | | | | $ | 128,483 | | |
|
(signed) “Daniel Goldberg”
|
| |
(signed) “Andrew Browne”
|
|
|
Chief Executive Officer
|
| |
Chief Financial Officer
|
|
|
On Behalf of the Board of Directors
|
| |||
|
(signed) “Henry Intven”
Director |
| |
(signed) “Richard Fadden”
Director |
|
|
(signed) “Daniel Goldberg”
|
| |
(signed) “Andrew Browne”
|
|
|
Chief Executive Officer of its general partner
Telesat Corporation |
| |
Chief Financial Officer of its general partner
Telesat Corporation |
|
|
On Behalf of the Board of Directors of its general partner,
Telesat Corporation |
| |||
|
(signed) “Henry Intven”
Director |
| |
(signed) “Richard Fadden”
Director |
|
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