-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QWugKC+ibqr7wVbfZp8D4nlkfcNYq5f3io2KA4AS2bOq7C84JwkUhSfw9S84+kpO pXEkwESyLyghUzt4DqxlJQ== 0000950123-97-009658.txt : 19971117 0000950123-97-009658.hdr.sgml : 19971117 ACCESSION NUMBER: 0000950123-97-009658 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GLOBALSTAR TELECOMMUNICATIONS LTD CENTRAL INDEX KEY: 0000933401 STANDARD INDUSTRIAL CLASSIFICATION: RADIO TELEPHONE COMMUNICATIONS [4812] IRS NUMBER: 133795510 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-25456 FILM NUMBER: 97721354 BUSINESS ADDRESS: STREET 1: 600 THIRD AVENUE STREET 2: 36TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10016 BUSINESS PHONE: 2126971105 MAIL ADDRESS: STREET 1: 600 THIRD AVENUE CITY: NEW YORK STATE: NY ZIP: 10016 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GLOBALSTAR LP CENTRAL INDEX KEY: 0001037927 STANDARD INDUSTRIAL CLASSIFICATION: RADIO TELEPHONE COMMUNICATIONS [4812] IRS NUMBER: 133759024 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 333-25461 FILM NUMBER: 97721355 BUSINESS ADDRESS: STREET 1: 3200 ZARKEN R STREET 2: PO BOX 640670 CITY: SAN JOSE STATE: CA ZIP: 95164 BUSINESS PHONE: 4084735550 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GLOBALSTAR CAPITAL CORP CENTRAL INDEX KEY: 0001037991 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 333-25461-01 FILM NUMBER: 97721356 BUSINESS ADDRESS: STREET 1: 3200 ZANKER ROAD CITY: SAN JOSE STATE: CA ZIP: 95164 BUSINESS PHONE: 4084735550 10-Q 1 FORM 10-Q 1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 ------------------------ FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997 GLOBALSTAR TELECOMMUNICATIONS LIMITED CEDAR HOUSE 41 CEDAR AVENUE HAMILTON HM12, BERMUDA TELEPHONE: (441) 295-2244 COMMISSION FILE NUMBER 0-25456 JURISDICTION OF INCORPORATION: BERMUDA IRS IDENTIFICATION NUMBER: 13-3795510 ------------------------ GLOBALSTAR, L.P. GLOBALSTAR CAPITAL CORPORATION 3200 ZANKER ROAD PO BOX 640670 SAN JOSE, CA 95164 COMMISSION FILE NUMBERS: 333-25461 333-25461-01 JURISDICTION OF INCORPORATION: DELAWARE IRS IDENTIFICATION NUMBERS: 13-3759824 13-3876323 The registrants have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months or such shorter period as the registrants were required to file such reports and have been subject to such filing requirements for the past 90 days or such shorter period. As of October 31, 1997, there were 30,636,750 shares of Globalstar Telecommunications Limited common stock outstanding. ================================================================================ 2 PART I. FINANCIAL INFORMATION GLOBALSTAR TELECOMMUNICATIONS LIMITED CONDENSED BALANCE SHEETS (In thousands, except share data)
DECEMBER 31, 1996 SEPTEMBER 30, ------------ 1997 (Note) ------------- (Unaudited) ASSETS Investment in Globalstar, L.P.: Redeemable preferred partnership interests........................ $ 302,826 $302,037 Ordinary partnership interests.................................... 303,568 158,038 Ordinary partnership warrants..................................... 12,210 22,601 -------- -------- Total assets.............................................. $ 618,604 $482,676 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Interest payable.................................................. $ 1,679 $ 1,679 Convertible preferred equivalent obligations ($310,000 principal amount)........................................................... 301,147 300,358 Commitments and contingencies (Note 5) Shareholders' equity: Common stock, $1.00 par value, 200,000,000 and 60,000,000 shares authorized (30,635,752 and 10,000,000 issued and outstanding) at September 30, 1997 and December 31, 1996, respectively...... 30,635 10,000 Paid-in capital................................................... 318,626 175,750 Warrants.......................................................... 12,210 22,601 Accumulated deficit............................................... (45,693) (27,712) -------- -------- Total shareholders' equity..................................... 315,778 180,639 -------- -------- Total liabilities and shareholders' equity................ $ 618,604 $482,676 ======== ========
- --------------- Note: The December 31, 1996 balance sheet has been derived from audited financial statements at that date. See notes to condensed financial statements. 1 3 GLOBALSTAR TELECOMMUNICATIONS LIMITED CONDENSED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------- --------------------- 1997 1996 1997 1996 ------- ------- -------- -------- Equity in net loss applicable to ordinary partnership interests of Globalstar, L.P........ $ 7,278 $ 3,345 $ 17,981 $ 10,569 Dividend income on Globalstar, L.P. redeemable preferred partnership interests................. (5,301) (5,300) (15,902) (12,019) Interest expense on convertible preferred equivalent obligations.......................... 5,301 5,300 15,902 12,019 ------- ------- -------- -------- Net loss.......................................... $ 7,278 $ 3,345 $ 17,981 $ 10,569 ======= ======= ======== ======== Net loss per share................................ $ 0.24 $ 0.17 $ 0.66 $ 0.53 ======= ======= ======== ======== Weighted average shares used in computing net loss per share....................................... 30,633 20,000 27,041 20,000 ======= ======= ======== ========
See notes to condensed financial statements. 2 4 GLOBALSTAR TELECOMMUNICATIONS LIMITED CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
NINE MONTHS ENDED ---------------------------------------- SEPTEMBER 30, 1997 SEPTEMBER 30, 1996 ------------------ ------------------ Cash flows from operating activities: Net loss.................................................. $ (17,981) $ (10,569) Equity in net loss of Globalstar, L.P..................... 17,981 10,569 Increase in redemption value of redeemable preferred partnership interests.................................. (789) (595) Dividends accrued on redeemable preferred partnership interests in excess of cash received................... -- (1,676) Amortization of convertible preferred equivalent obligations issue costs................................ 789 595 Change in operating liability: Interest payable....................................... -- 1,676 --------- --------- Net cash provided by (used in) operating activities......... -- -- --------- --------- Investing activities: Purchase of warrants in Globalstar, L.P................... (12,210) -- Purchase of ordinary partnership interests in Globalstar, L.P.................................................... (140,910) -- Purchase of redeemable preferred partnership interests in Globalstar, L.P........................................ -- (299,500) --------- --------- Net cash used in investing activities....................... (153,120) (299,500) Financing activities: Proceeds from issuance of warrants in connection with sale of Globalstar, L.P.'s senior notes..................... 12,210 -- Proceeds from exercise of guarantee warrants.............. 110,911 -- Proceeds from exercise of GTL rights...................... 29,976 -- Proceeds from exercise of GTL stock options............... 23 -- Payment of debt offering costs............................ -- (10,500) Sale of convertible preferred equivalent obligations...... -- 310,000 --------- --------- Net cash provided by financing activities................... 153,120 299,500 --------- --------- Net increase in cash and cash equivalents................... -- -- Cash and cash equivalents, beginning of period.............. -- -- --------- --------- Cash and cash equivalents, end of period.................... $ -- $ -- ========= =========
See notes to condensed financial statements. 3 5 GLOBALSTAR TELECOMMUNICATIONS LIMITED NOTES TO CONDENSED FINANCIAL STATEMENTS 1. The accompanying unaudited condensed financial statements have been prepared by Globalstar Telecommunications Limited (the "Company" or "GTL") pursuant to the rules of the Securities and Exchange Commission ("SEC") and, in the opinion of the Company, include all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of financial position, results of operations and cash flows. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules. The Company believes that the disclosures made are adequate to keep the information presented from being misleading. The results of operations for the three and nine months ended September 30, 1997 are not necessarily indicative of the results to be expected for the full year. It is suggested that these financial statements be read in conjunction with the audited financial statements and notes thereto included in the Company's latest Annual Report on Form 10-K. 2. ORGANIZATION AND BUSINESS On November 23, 1994, GTL was incorporated as an exempted company under the Companies Act 1981 of Bermuda. On February 14, 1995, the Company completed an initial public offering of 20,000,000 shares of common stock (as adjusted for two-for-one stock split, see Note 3) resulting in net proceeds of $185,750,000. Effective February 22, 1995, the Company purchased 21.3% of the ordinary partnership interests of Globalstar, L.P. ("Globalstar"), with the net proceeds of the initial public offering. GTL's financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company's sole business is acting as a general partner of Globalstar, a development stage limited partnership, which is building and is preparing to launch and operate a worldwide, low-earth orbit satellite-based wireless digital telecommunications system. At September 30, 1997, GTL held 29.3% of the ordinary partnership interests and 100% of the Redeemable Preferred Partnership Interests in Globalstar, see Note 4. The Company accounts for its investment in Globalstar on an equity accounting basis, recognizing its allocated share of net loss in the period incurred. The Company's allocated share of Globalstar's net loss applicable to ordinary partnership interests from the period February 22, 1995 through September 30, 1997 was $45,693,000. 3. SHAREHOLDERS' EQUITY On May 28, 1997, GTL issued a two-for-one stock split to shareholders of record on May 12, 1997 in the form of a 100% stock dividend. Accordingly, all GTL share and per share amounts have been restated to reflect the stock split. Prior to the two-for-one stock split, GTL's equity securities and convertible securities were represented by equivalent Globalstar partnership interests on a one-for-one basis. Globalstar's partnership interests were not affected by the GTL stock split and, accordingly, GTL's equity securities and convertible securities are now represented by equivalent Globalstar partnership interests on a two-for-one basis. 4. EXERCISE OF THE GUARANTEE WARRANTS AND THE GTL RIGHTS On March 25, 1997, holders of warrants issued in connection with the Globalstar credit agreement exercised warrants to purchase 8,370,636 shares of GTL common stock for $13.25 per share (as adjusted for two-for-one stock split, see Note 3). GTL received proceeds of approximately $110.9 million. On May 5, 1997, GTL received approximately $30.0 million as a result of the exercise of rights issued to shareholders to purchase 2,262,336 shares of GTL common stock for $13.25 per share (as adjusted for two-for-one stock split, see Note 3). GTL used the proceeds from the warrants and rights to purchase 5,316,486 Globalstar ordinary partnership interests for $26.50 per interest, increasing GTL's holdings of Globalstar's ordinary partnership interests from 10,000,000 (21.3%) to 15,316,486 (29.3%). 4 6 GLOBALSTAR TELECOMMUNICATIONS LIMITED NOTES TO CONDENSED FINANCIAL STATEMENTS -- (CONTINUED) 5. SENIOR NOTES AND WARRANTS On February 13, 1997, GTL and Globalstar sold units consisting of $500 million aggregate principal amount of Globalstar's 11 3/8% Senior Notes due 2004 and warrants to purchase 2,064,500 shares of GTL common stock (as adjusted for two-for-one stock split, see Note 3) in a private offering. The notes are senior in right of payment to the redeemable preferred partnership interests, and may not be redeemed prior to February 2002 and are subject to a prepayment premium prior to 2004. Interest is paid semi-annually. The warrants are exercisable on or after February 19, 1998 at a price of $34.787 per share (as adjusted for two-for-one stock split, see Note 3) and expire on February 15, 2004. The warrants represent approximately 1.7% of Globalstar's total partnership interests on a fully diluted basis. Any proceeds from the exercise of the warrants will be used to purchase Globalstar ordinary partnership interests. On June 13, 1997, Globalstar sold $325 million principal amount of 11 1/4% Senior Notes due 2004 in a private offering. The notes are senior in right of payment to the Redeemable Preferred Partnership Interests, and may not be redeemed prior to June 2002 and are subject to a prepayment premium prior to 2004. Interest is paid semi-annually. The indentures for the notes contain certain covenants that among other things limit the ability of Globalstar to incur additional debt, issue preferred stock, or pay dividends and certain distributions. In certain limited circumstances involving a change of control of Globalstar, as defined, each Note is redeemable at the option of the holder for 101% of the principal amount plus accrued interest. Globalstar will use the net proceeds of approximately $786 million from the offerings, for the construction and deployment of the Globalstar System. 6. STOCK OPTION TRANSACTIONS The Company and Globalstar have agreed that upon the exercise of options under the GTL 1994 Stock Option Plan by optionees who are employees of Globalstar or any of its controlling entities, Globalstar will issue to the Company one Globalstar ordinary partnership interest for every two shares of common stock issued to the optionee (as adjusted for two-for-one stock split, see Note 3). During the third quarter, the Company issued 2,780 shares of common stock to optionees at a price of $8.3125 per share. The Company purchased 1,390 Globalstar ordinary partnership interests with the proceeds from the issuance of the common stock. 7. SUBSEQUENT EVENTS On October 29, 1997, Globalstar sold $325 million principal amount of 10 3/4% Senior Notes due 2004 in a private offering. The notes are senior in right of payment to the redeemable preferred partnership interests and may not be redeemed prior to November 2002 and are subject to a prepayment premium prior to 2004. Interest is payable semi-annually. The indenture for the notes contains certain covenants that, among other things, limit the ability of Globalstar to incur additional debt, issue preferred stock, or pay dividends and certain distributions. In certain limited circumstances involving a change of control of Globalstar, as defined, each note is redeemable at the option of the holder at 101% of the principal amount plus accrued interest. Globalstar will use the net proceeds of approximately $320 million for the construction and deployment of the Globalstar System. On November 11, 1997, Globalstar announced that it has rescheduled the launch of its first four satellites to the first week of February 1998. The eight-week postponement was adopted to allow for further testing and rehearsals of the tracking, telemetry and control (TT&C) ground equipment that will monitor the launch and 5 7 GLOBALSTAR TELECOMMUNICATIONS LIMITED NOTES TO CONDENSED FINANCIAL STATEMENTS -- (CONTINUED) deployment of the Globalstar satellites. The postponement was adopted in order to assure an adequate period of time to complete testing of Globalstar's TT&C function prior to the initial launch and was not related to any segment performance issue. All other elements of the project including system design, satellite and CDMA technology, gateway design and handset production remain on schedule and meet or exceed critical performance criteria. Globalstar now expects to begin commercial service no later than in the first quarter of 1999 following the launch of 44 satellites during 1998. The remaining 12 satellites will be launched in early 1999 as scheduled. The first four Globalstar satellites are at the Cape Canaveral launch site and four additional satellites for the second launch have successfully completed integration and testing. In addition, satellite and major subsystem assembly, integration and testing necessary for the first Zenit launch is underway. The first four Globalstar gateways are completed and ready to support the first launch. Progress on the construction of an additional 34 gateways continues as originally scheduled. 6 8 GLOBALSTAR, L.P. (A DEVELOPMENT STAGE LIMITED PARTNERSHIP) CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except partnership interest data)
SEPTEMBER 30, DECEMBER 31, 1997 1996 ------------- ------------ (UNAUDITED) (NOTE) ASSETS Current assets: Cash and cash equivalents......................................... $ 350,059 $ 21,180 Other current assets.............................................. 25,972 606 ---------- -------- Total current assets...................................... 376,031 21,786 Property and equipment, net......................................... 2,067 1,720 Globalstar System Under Construction: Space segment..................................................... 1,039,209 730,513 Ground segment.................................................... 305,377 160,520 ---------- -------- 1,344,586 891,033 Additional satellite spares......................................... 80,011 -- Deferred FCC license costs.......................................... 10,066 8,690 Deferred financing costs............................................ 15,867 19,577 Other assets........................................................ 806 107 ---------- -------- Total assets.............................................. $ 1,829,434 $942,913 ========== ======== LIABILITIES AND PARTNERS' CAPITAL Current liabilities: Accounts payable.................................................. $ 3,853 $ 4,401 Payable to affiliates............................................. 111,285 63,937 Accrued expenses.................................................. 4,208 6,929 Accrued interest on senior notes.................................. 17,773 -- ---------- -------- Total current liabilities................................. 137,119 75,267 Deferred revenues................................................... 23,652 23,652 Vendor financing liability.......................................... 186,470 130,694 Borrowings under long-term revolving credit facility................ -- 96,000 Deferred interest payable........................................... 411 77 Senior notes payable ($500,000 principal amount).................... 474,582 -- Senior notes payable ($325,000 principal amount).................... 302,814 -- Commitments and contingencies (Note 7) Redeemable preferred partnership interests (4,769,230 outstanding $310,000 redemption value)........................................ 302,826 302,037 Ordinary partners' capital: Ordinary partnership interests (52,317,876 and 47,000,000 outstanding at September 30, 1997 and December 31, 1996, respectively).................................................. 389,350 292,585 Warrants.......................................................... 12,210 22,601 ---------- -------- Total ordinary partners' capital............................... 401,560 315,186 ---------- -------- Total liabilities and partners' capital................... $ 1,829,434 $942,913 ========== ========
- --------------- Note: The December 31, 1996 balance sheet has been derived from audited consolidated financial statements at that date. See notes to condensed consolidated financial statements. 7 9 GLOBALSTAR, L.P. (A DEVELOPMENT STAGE LIMITED PARTNERSHIP) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per interest data) (Unaudited)
CUMULATIVE THREE MONTHS ENDED NINE MONTHS ENDED MARCH 23, 1994 SEPTEMBER 30, SEPTEMBER 30, (COMMENCEMENT OF ------------------ ------------------ OPERATIONS) TO 1997 1996 1997 1996 SEPTEMBER 30, 1997 ------- ------- ------- ------- ------------------ Operating expenses: Development costs..................... $20,013 $ 7,257 $47,823 $32,397 $174,108 Marketing, general and administrative..................... 6,237 4,687 17,790 12,400 60,783 ------- ------- ------- ------- -------- Total operating expenses...... 26,250 11,944 65,613 44,797 234,891 Interest income......................... 6,690 1,522 13,799 6,050 33,950 ------- ------- ------- ------- -------- Net loss................................ 19,560 10,422 51,814 38,747 200,941 Preferred distribution and related increase in redeemable preferred partnership interests................. 5,300 5,300 15,901 12,019 33,224 ------- ------- ------- ------- -------- Net loss applicable to ordinary partnership interests................. $24,860 $15,722 $67,715 $50,766 $234,165 ======= ======= ======= ======= ======== Net loss per ordinary partnership interest.............................. $ 0.48 $ 0.33 $ 1.34 $ 1.08 ======= ======= ======= ======= Weighted average interests used in computing net loss per ordinary partnership interest.................. 52,317 47,000 50,520 47,000 ======= ======= ======= =======
See notes to condensed consolidated financial statements. 8 10 GLOBALSTAR, L.P. (A DEVELOPMENT STAGE LIMITED PARTNERSHIP) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
CUMULATIVE NINE MONTHS ENDED MARCH 23, 1994 SEPTEMBER 30, (COMMENCEMENT OF ---------------------- OPERATIONS) TO 1997 1996 SEPTEMBER 30, 1997 --------- --------- ------------------ Cash flows from operating activities: Net loss.............................................................. $ (51,814) $ (38,747) $ (200,941) Deferred revenues..................................................... -- 1,739 23,652 Stock compensation transactions....................................... 969 -- 1,286 Depreciation and amortization......................................... 4,412 4,412 10,783 Changes in operating assets and liabilities: Other current assets................................................ (25,366) (140) (25,972) Other assets........................................................ (699) -- (806) Accounts payable.................................................... (1,708) 2,513 1,510 Payable to affiliates............................................... 3,286 (9,972) 4,597 Accrued expenses.................................................... (2,721) (423) 4,208 --------- --------- ----------- Net cash used in operating activities................................... (73,641) (40,618) (181,683) --------- --------- ----------- Investing activities: Globalstar System under construction.................................. (450,097) (354,900) (1,341,130) Payable to affiliates for Globalstar System under construction........ 44,062 33,065 97,888 Capitalized interest payable.......................................... 18,107 -- 18,184 Accounts payable...................................................... 1,160 (521) 1,835 Vendor financing liability............................................ 55,776 68,317 186,470 --------- --------- ----------- Cash used for Globalstar System....................................... (330,992) (254,039) (1,036,753) Additional satellite spares........................................... (80,011) -- (80,011) Purchases of property and equipment................................... (1,049) (665) (3,991) Deferred FCC license costs............................................ (1,376) (1,125) (7,831) Purchases of investments.............................................. -- -- (126,923) Maturity of investments............................................... -- -- 126,923 --------- --------- ----------- Net cash used in investing activities................................... (413,428) (255,829) (1,128,586) --------- --------- ----------- Financing activities: Net proceeds from issuance of $500,000 11 3/8% Senior Notes........... 472,090 -- 472,090 Proceeds from warrants issued in connection with $500,000 11 3/8% Senior Notes........................................................ 12,210 -- 12,210 Net proceeds from issuance of $325,000 11 1/4% Senior Notes........... 301,850 -- 301,850 Proceeds from exercise of warrants.................................... 140,887 -- 140,887 Proceeds from sale of partnership interests associated with exercise of stock options.................................................... 23 -- 23 Deferred financing costs.............................................. -- (250) (2,125) Proceeds of capital subscriptions receivable.......................... -- -- 282,441 Payment of accrued capital raising costs.............................. -- -- (2,400) Sale of partnership interests to GTL.................................. -- -- 185,750 Sale of redeemable preferred partnership interests to GTL............. -- 299,500 299,500 Distributions on redeemable preferred partnership interests........... (15,112) (9,795) (29,945) Prepaid interest on redeemable preferred partnership interests........ -- 47 47 Borrowings under long-term revolving credit facility.................. 65,000 10,000 171,000 Repayment of borrowings under long-term revolving credit facility..... (161,000) (10,000) (171,000) --------- --------- ----------- Net cash provided by financing activities............................... 815,948 289,502 1,660,328 --------- --------- ----------- Net increase in cash and cash equivalents............................... 328,879 (6,945) 350,059 Cash and cash equivalents, beginning of period.......................... 21,180 71,602 -- --------- --------- ----------- Cash and cash equivalents, end of period................................ $ 350,059 $ 64,657 $ 350,059 ========= ========= =========== Noncash transactions: Payable to affiliates................................................. $ 9,308 =========== Accrual of capital raising costs...................................... $ 2,400 =========== Deferred FCC license costs............................................ $ 2,235 =========== Warrants issued in exchange for debt guarantee........................ $ 22,601 =========== Increase in redemption value of preferred partnership interests....... $ 789 $ 2,271 $ 3,326 ========= ========= =========== Increase in carrying value of senior notes............................ $ 3,456 $ 3,456 ========= ===========
See notes to condensed consolidated financial statements. 9 11 GLOBALSTAR, L.P. (A DEVELOPMENT STAGE LIMITED PARTNERSHIP) NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. The accompanying unaudited condensed consolidated financial statements have been prepared by Globalstar, L.P. ("Globalstar") pursuant to the rules of the Securities and Exchange Commission ("SEC") and, in the opinion of Globalstar, include all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of financial position, results of operations and cash flows. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules. Globalstar believes that the disclosures made are adequate to keep the information presented from being misleading. The results of operations for the three and nine months ended September 30, 1997 are not necessarily indicative of the results to be expected for the full year. It is suggested that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for Globalstar Telecommunications Limited ("GTL"). 2. ORGANIZATION AND BUSINESS Globalstar, founded by Loral Space & Communications Ltd. ("Loral") and QUALCOMM Incorporated ("Qualcomm"), is building, and is preparing to launch and operate a worldwide, low-earth orbit satellite-based wireless digital telecommunications system (the "Globalstar System"). Globalstar, a Delaware limited partnership with a December 31 fiscal year end, was formed in November 1993. It had no activities until March 23, 1994, when it received capital subscriptions for $275 million and commenced operations. The accompanying condensed consolidated financial statements reflect the operations of Globalstar from that date. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Development Stage Company Globalstar is devoting substantially all of its present efforts to the design, licensing, construction, testing and financing of the Globalstar System, and establishing its business. Its planned principal operations have not commenced. Accordingly, Globalstar is a development stage company as defined in Statement of Financial Accounting Standards No. 7 "Accounting and Reporting by Development Stage Enterprises." Globalstar may encounter problems, delays and expenses, many of which may be beyond Globalstar's control. These may include, but are not limited to, problems related to technical development of the system, testing, regulatory compliance, manufacturing and assembly, the competitive and regulatory environment in which Globalstar will operate, marketing problems and costs and expenses that may exceed current estimates. There can be no assurance that substantial delays in any of the foregoing matters would not delay Globalstar's achievement of profitable operations. Notes Payable Interest accrues on the $500 million and $325 million principal amount Senior Notes at 11 3/8% and 11 1/4% per annum, respectively. Globalstar is increasing the carrying value of the senior notes payable to their ultimate redemption value. Reclassifications Certain reclassifications have been made to conform prior amounts to the current period presentation. 10 12 GLOBALSTAR, L.P. (A DEVELOPMENT STAGE LIMITED PARTNERSHIP) NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 4. GLOBALSTAR SYSTEM UNDER CONSTRUCTION Total System Cost On November 11, 1997, Globalstar announced that it has rescheduled the launch of its first four satellites to the first week of February 1998. The eight-week postponement was adopted to allow for further testing and rehearsals of the tracking, telemetry and control (TT&C) ground equipment that will monitor the launch and deployment of the Globalstar satellites. The postponement was adopted in order to assure an adequate period of time to complete testing of Globalstar's TT&C function prior to the initial launch and was not related to any segment performance issue. All other elements of the project including system design, satellite and CDMA technology, gateway design and handset production remain on schedule and meet or exceed critical performance criteria. Globalstar now expects to begin commercial service no later than in the first quarter of 1999 following the launch of 44 satellites during 1998. The remaining 12 satellites will be launched in early 1999 as scheduled. The first four Globalstar satellites are at the Cape Canaveral launch site and four additional satellites for the second launch have successfully completed integration and testing. In addition, satellite and major subsystem assembly, integration and testing necessary for the first Zenit launch is underway. The first four Globalstar gateways are completed and ready to support the first launch. Progress on the construction of an additional 34 gateways continues as originally scheduled. Globalstar's current budgeted expenditures for the design, construction and deployment of the Globalstar System, including working capital, cash interest on anticipated borrowings and operating expenses after giving effect to the rescheduled launch is approximately $2.7 billion. Most of the ground segment costs are incurred under a cost-plus contract with Qualcomm. As a result of added enhanced capabilities, additional test requirements and cost growth in the development of the ground system, ground segment costs have increased. As a result of cost containment and arrangements with Qualcomm for $100 million of contract payment deferrals, Globalstar expects the total ground segment expenditure to be $710 million, net of such deferrals, through the In-Service Date. In addition, Globalstar has agreed to purchase from SS/L eight additional spare satellites at a cost estimated at $175 million. Further, in order to accelerate the deployment of gateways around the world Globalstar has agreed to finance approximately $80 million of the cost of up to 32 of the 38 initial gateways ordered by Globalstar service providers. Globalstar expects to recover its investment in this gateway financing program from the resale of the gateways to service providers. Actual amounts may vary from these estimates and additional funds would be required in the event of unforeseen delays, cost overruns, launch failures or other technological risks or adverse regulatory developments, or to meet unanticipated expenses. As of October 31, 1997, Globalstar has raised or received financing commitments for approximately $2.6 billion. 5. PARTNERSHIP INTERESTS On May 28, 1997, GTL issued a two-for-one stock split. Prior to the two-for-one stock split, GTL's equity securities and convertible securities were represented by equivalent Globalstar partnership interests on a one-for-one basis. Globalstar's partnership interests were not affected by the GTL stock split and, accordingly, GTL's equity securities and convertible securities are now represented by equivalent Globalstar partnership interests on a two-for-one basis. 11 13 GLOBALSTAR, L.P. (A DEVELOPMENT STAGE LIMITED PARTNERSHIP) NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 6. EXERCISE OF GUARANTEE WARRANTS AND GTL RIGHTS On March 25, 1997, holders of warrants issued in connection with the Globalstar credit agreement exercised warrants to purchase 8,370,636 shares of GTL common stock for $13.25 per share (as adjusted for two-for-one stock split, see Note 5). GTL received proceeds of approximately $110.9 million. On May 5, 1997, GTL received proceeds of approximately $30.0 million as a result of the exercise of rights to purchase 2,262,336 shares of GTL common stock for $13.25 per share (as adjusted for two-for-one stock split, see Note 5). GTL used the proceeds from the warrants and the rights to purchase 5,316,486 Globalstar ordinary partnership interests for $26.50 per interest, increasing GTL's holdings of Globalstar's ordinary partnership interests from 21.3% to 29.3%. 7. SENIOR NOTES AND WARRANTS On February 13, 1997, GTL and Globalstar sold units consisting of $500 million aggregate principal amount of Globalstar's 11 3/8% Senior Notes due 2004 and warrants to purchase 2,064,500 shares of GTL common stock (as adjusted for two-for-one stock split, see Note 5) in a private offering. The notes are senior in right of payment to the redeemable preferred partnership interests, and may not be redeemed prior to February 2002 and are subject to a prepayment premium prior to 2004. Interest is paid semi-annually. The warrants are exercisable on or after February 19, 1998 at a price of $34.787 per share (as adjusted for two-for-one stock split, see Note 5) and expire on February 15, 2004. The warrants represent approximately 1.7% of Globalstar's total partnership interests on a fully diluted basis. Any proceeds from the exercise of the warrants will be used to purchase Globalstar ordinary partnership interests. On June 13, 1997, Globalstar sold $325 million principal amount of 11 1/4% Senior Notes due 2004 in a private offering. The notes are senior in right of payment to the redeemable preferred partnership interests, and may not be redeemed prior to June 2002 and are subject to a prepayment premium prior to 2004. Interest is paid semi-annually. The indentures for the notes contain certain covenants that, among other things, limit the ability of Globalstar to incur additional debt, issue preferred stock, or pay dividends and certain distributions. In certain limited circumstances involving a change of control of Globalstar, as defined, each note is redeemable at the option of the holder for 101% of the principal amount plus accrued interest. Globalstar will use the net proceeds of approximately $786 million from the offerings for the construction and deployment of the Globalstar System. 8. STOCK OPTION TRANSACTIONS The Company and Globalstar have agreed that upon the exercise of options under the GTL 1994 Stock Option Plan by optionees who are employees of Globalstar or any of its controlling entities, Globalstar will issue to the Company one Globalstar ordinary partnership interest for every two shares of common stock issued to the optionee (as adjusted for two-for-one stock split, see Note 5). During the third quarter, the Company issued 2,780 shares of common stock to optionees at a price of $8.3125 per share. The Company purchased 1,390 Globalstar ordinary partnership interests with the proceeds from the issuance of the common stock. 9. SUBSEQUENT EVENTS On October 29, 1997, Globalstar sold $325 million principal amount of 10 3/4% Senior Notes due 2004 in a private offering. The notes are senior in right of payment to the redeemable preferred partnership interests and 12 14 GLOBALSTAR, L.P. (A DEVELOPMENT STAGE LIMITED PARTNERSHIP) NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) may not be redeemed prior to November 2002 and are subject to a prepayment premium prior to 2004. Interest is payable semi-annually. The indenture for the notes contains certain covenants that, among other things, limit the ability of Globalstar to incur additional debt, issue preferred stock, or pay dividends and certain distributions. In certain limited circumstances involving a change of control of Globalstar, as defined, each note is redeemable at the option of the holder at 101% of the principal amount plus accrued interest. Globalstar will use the net proceeds of approximately $320 million for the construction and deployment of the Globalstar System. 13 15 GLOBALSTAR CAPITAL CORPORATION (A WHOLLY-OWNED SUBSIDIARY OF GLOBALSTAR, L.P.) BALANCE SHEETS
MARCH 31, DECEMBER 31, 1997 1997 ----------- ------------ (Unaudited) ASSETS Receivable from Parent.............................................. $ 1,000 $1,000 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Commitments and Contingencies (Note 2) Stockholder's equity Common stock, par value $.10; 1,000 shares authorized, 100 shares issued and outstanding......................................... $ 10 $ 10 Paid-in capital................................................... 990 990 --------- ------- -- $ 1,000 $1,000 ========= =========
See notes to Balance Sheets. 14 16 GLOBALSTAR CAPITAL CORPORATION (A WHOLLY-OWNED SUBSIDIARY OF GLOBALSTAR, L.P.) NOTES TO BALANCE SHEET 1. ORGANIZATION Globalstar Capital Corporation ("Globalstar Capital"), a wholly-owned subsidiary of Globalstar, L.P. ("Globalstar") was formed on July 24, 1995 for the primary purpose of serving as a co-issuer and co-obligor with respect to certain debt obligations of Globalstar. 2. COMMITMENTS AND CONTINGENCIES Globalstar Capital is a co-obligor on the following Globalstar borrowings: 11 3/8% $500 MILLION SENIOR NOTES DUE 2004 On February 13, 1997, Globalstar sold $500 million aggregate principal amount of its 11 3/8% Senior Notes due 2004 in a private offering. The notes are senior in right of payment to Globalstar's Redeemable Preferred Partnership Interests, and may not be redeemed prior to February 2002 and are subject to a prepayment premium prior to 2004. Interest is paid semi-annually. 11 1/4% $325 MILLION SENIOR NOTES DUE 2004 On June 13, 1997, Globalstar sold $325 million principal amount of 11 1/4% Senior Notes due 2004 in a private offering. The notes are senior in right of payment to the redeemable preferred partnership interests, and may not be redeemed prior to June 2002 and are subject to a prepayment premium prior to 2004. Interest is paid semi-annually. The indentures for the 11 3/8% Senior Notes and the 11 1/4% Senior Notes contain certain covenants that, among other things, limit the ability of Globalstar to incur additional debt, issue preferred stock, or pay dividends and certain distributions. In certain limited circumstances involving a change of control of Globalstar, as defined, each note is redeemable at the option of the holder for 101% of the principal amount plus accrued interest. Globalstar Capital is a guarantor of a $250 million credit agreement between Globalstar and a group of banks. At June 30, 1997, there were no borrowings outstanding under this agreement. At December 31, 1996 approximately $96 million was outstanding under this agreement. 3. SUBSEQUENT EVENT On October 29, 1997, Globalstar Capital and Globalstar co-issued $325 million principal amount of 10 3/4% Senior Notes due 2004 under terms generally consistent with the 11 3/8% Senior Notes and 11 1/4% Senior Notes. 15 17 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GTL is a holding company that acts as a general partner of Globalstar and has no other business. The Company's sole asset is its investment in Globalstar and GTL's results of operations reflect its share of the results of operations of Globalstar on an equity accounting basis. Accordingly, management's discussion and analysis addresses the financial condition and results of operations of Globalstar. Except for the historical information contained herein, the matters discussed in this Management's Discussion and Analysis of Financial Condition and Results of Operations, and elsewhere in this Form 10-Q, are forward-looking statements that involve risks and uncertainties, many of which may be beyond Globalstar's control. These may include, but are not limited to, problems relating to technical development of the system, testing, regulatory compliance, manufacturing and assembly, the competitive and regulatory environment in which Globalstar will operate, marketing problems and costs and expenses that may exceed current estimates. The actual results that Globalstar achieves may differ materially from any forward-looking statements due to such risks and uncertainties. See the section of GTL's annual report on Form 10-K for the fiscal year ended December 31, 1996 entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations -- Certain Factors That May Affect Future Results" and the section of Globalstar's prospectus dated July 16, 1997, entitled "Risk Factors." On November 11, 1997, Globalstar announced that it has rescheduled the launch of its first four satellites to the first week of February 1998. The eight-week postponement was adopted to allow for further testing and rehearsals of the tracking, telemetry and control (TT&C) ground equipment that will monitor the launch and deployment of the Globalstar satellites. The postponement was adopted to assure an adequate period of time to complete testing of Globalstar's TT&C function prior to the initial launch and was not related to any segment performance issue. All other elements of the project including system design, satellite and CDMA technology, gateway design and handset production remain on schedule and meet or exceed critical performance criteria. Globalstar now expects to begin commercial service no later than in the first quarter of 1999 following the launch of 44 satellites during 1998. The remaining 12 satellites will be launched in early 1999 as scheduled. The first four Globalstar satellites are at the Cape Canaveral launch site and four additional satellites for the second launch have successfully completed integration and testing. In addition, satellite and major subsystem assembly, integration and testing necessary for the first Zenit launch is underway. The first four Globalstar gateways are completed and ready to support the first launch. Progress on the construction of an additional 34 gateways continues as originally scheduled. LIQUIDITY AND CAPITAL RESOURCES At September 30, 1997, cash and cash equivalents increased to $350.1 million from $21.2 million at December 31, 1996. The net increase is a result of the net proceeds of $773.9 million received from issuance of Globalstar's 11 1/4% and 11 3/8% Senior Notes, $12.2 million received from the sale of warrants to GTL and, $140.9 million received from the exercise of the Guarantee Warrants and GTL Rights by GTL, offset by expenditures for the Globalstar System Under Construction of $331.0 million, expenditures for the additional spare satellites of $80.0 million, net cash used in operating activities of $73.6 million, preferred distributions on the Redeemable Preferred Partnership Interests of $15.1 million and net repayments of debt of $96.0 million. Accounts payable, payables to affiliates and accrued expenses and interest have increased by $61.8 million from $75.3 million at December 31, 1996 to $137.1 million at September 30, 1997, as a result of the timing of payments to Globalstar contractors and accrued interest on the senior notes. Through September 30, 1997, Globalstar incurred costs of approximately $1.5 billion for the design and construction of the space and ground segments. Costs incurred to date during fiscal year 1997 were approximately $504 million. 16 18 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS -- CONTINUED Globalstar's current budgeted expenditures for the design, construction and deployment of the Globalstar System, including working capital, cash interest on anticipated borrowings and operating expenses, after giving effect to the rescheduled launch is approximately $2.7 billion. Most of the ground segment costs are incurred under a cost-plus contract with Qualcomm. As a result of added enhanced capabilities, additional test requirements and cost growth in the development of the ground system, ground segment costs have increased. As a result of cost containment and arrangements with Qualcomm for $100 million of contract payment deferrals, Globalstar expects the total ground segment expenditure to be $710 million, net of such deferrals, through the In-Service Date. Globalstar has also agreed to purchase from SS/L eight additional spare satellites at a cost estimated at $175 million. Further, in order to accelerate the deployment of gateways around the world, Globalstar has agreed to finance approximately $80 million of the cost of up to 32 of the 38 initial gateways ordered by Globalstar service providers. Globalstar expects to recover its investment in this gateway financing program from the resale of the gateways to service providers. As of October 31, 1997, Globalstar had raised or received commitments for approximately $2.6 billion. RESULTS OF OPERATIONS Globalstar is a development stage partnership and has not commenced commercial operations. For the period March 23, 1994 (commencement of operations) to September 30, 1997, Globalstar has recorded cumulative net losses applicable to ordinary partnership interests of $234.2 million. The net loss applicable to ordinary partnership interests for the nine months ended September 30, 1997 increased to $67.7 million as compared to $50.8 million for the nine months ended September 30, 1996. The net loss increased primarily as a result of increased activity in the development of Globalstar user terminals, increased in-house engineering and marketing efforts and a full nine months distribution on the RPPI's in 1997, versus a distribution for seven months in 1996, as the RPPI's were issued in March 1996, offset by increased interest income. The net loss applicable to ordinary partnership interests for the three months ended September 30, 1997 increased to $24.9 million from $15.7 million in the prior year primarily due to increased activity in the development of Globalstar user terminals and Globalstar's continuing in-house engineering and marketing efforts. Globalstar is expending significant funds for the design, construction, testing and deployment of the Globalstar System and expects such losses to continue until commencement of commercial operations. Globalstar has earned interest income of $34.0 million on cash balances and short term investments since commencement of operations. Interest income during the nine months ended September 30, 1997 was $13.8 million as compared to $6.1 million for the nine months ended September 30, 1996. Interest income during the three months ended September 30, 1997 was $6.7 million as compared to $1.5 million for the three months ended September 30, 1996. Interest income for the current period increased as a result of higher average cash balances outstanding during 1997. Operating Expenses. Globalstar's development costs since commencement of operations were $174.1 million. Development costs during the nine months ended September 30, 1997 were $47.8 million as compared to $32.4 million for the nine months ended September 30, 1996. Development costs during the three months ended September 30, 1997 were $20.0 million as compared to $7.3 million for the three months ended September 30, 1996. Development costs for the current period increased as a result of increased activity in the development of Globalstar user terminals. Marketing, general and administrative expenses since commencement of operations were 460.8 million and were $17.8 million and $12.4 million for the nine months ended September 30, 1997 and 1996, respectively. Marketing, general and administrative expenses were $6.2 million and $4.7 million for the three months ended September 30, 1997 and 1996, respectively. The increase in marketing, general and administrative expenses is primarily the result of an increase in the number of employees as Globalstar gears up for operations and increased advertising costs. 17 19 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS -- CONTINUED Depreciation. Globalstar intends to capitalize all costs, including interest as applicable, associated with the design, construction and deployment of the Globalstar System, except costs associated with the development of the Globalstar user terminals and certain technologies under a cost sharing arrangement with Qualcomm. Globalstar will not record depreciation expense on the Globalstar System Under Construction until the commencement of commercial operations, as assets are placed into service. Income Taxes. Globalstar was organized as a limited partnership. As such, no income tax provision (benefit) is included in the accompanying financial statements since U.S. income taxes are the responsibility of its partners. Generally, taxable income (loss), deductions and credits of Globalstar will be passed through to its partners. FINANCIAL ACCOUNTING PRONOUNCEMENTS In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128 "Earnings Per Share" ("SFAS 128"), which is required to be adopted for fiscal periods ending after December 15, 1997. SFAS 128 establishes the accounting standards for computing and presenting earnings per share. The Company believes that the adoption of SFAS 128 will not have a material effect on the reported loss per share or loss per interest of GTL or Globalstar, respectively. 18 20 PART II -- OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits The following exhibits are filed as part of this report: Exhibit 12 -- Statement Regarding Computation of Ratios Exhibit 27 -- Financial Data Schedule (b) Reports on Form 8-K None SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. GLOBALSTAR TELECOMMUNICATIONS LIMITED GLOBALSTAR, L.P. GLOBALSTAR CAPITAL CORPORATION ------------------------------------------ Registrants Nicholas C. Moren ------------------------------------------ Treasurer (Principal Financial Officer) and Registrants' Authorized Officer Date: November 14, 1997 19 21 EXHIBIT INDEX Exhibit 12 -- Statement Regarding Computation of Ratios Exhibit 27.1 -- Financial Data Schedule Exhibit 27.2 -- Financial Data Schedule Exhibit 27.3 -- Financial Data Schedule EX-12 2 STATEMENT REGARDING COMPUTATION OF RATIOS 1 EXHIBIT 12 STATEMENT REGARDING COMPUTATION OF RATIOS (IN THOUSANDS, EXCEPT RATIOS) GLOBALSTAR TELECOMMUNICATIONS LIMITED RATIO OF EARNINGS TO FIXED CHARGES
NINE MONTHS ENDED SEPTEMBER 30, 1997 ------------------ Earnings Net loss............................................................... $(17,981) Add: Equity in loss of Globalstar, L.P............................ 17,981 Interest expense............................................. 15,902 --------- Earnings available to cover fixed charges................................... $ 15,902 ========= Fixed charges -- interest expense........................................... $ 15,902 ========= Ratio of earnings to fixed charges.......................................... 1x =========
- --------------- (1) The earnings of GTL available to cover fixed charges, consist solely of dividends from Globalstar, L.P. on the Redeemable Preferred Partnership Interests held by GTL. GLOBALSTAR, L.P. DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES
CUMULATIVE MARCH 23, 1994 NINE MONTHS (COMMENCEMENT OF ENDED OPERATIONS) TO SEPTEMBER 30, 1997 SEPTEMBER 30, 1997 ------------------ ------------------ Net loss.................................................... $(51,814) $ (200,941) Dividends on Redeemable Preferred Partnership Interests..... (15,901) (33,224) -------- --------- Deficiency of earnings to cover fixed charges............... $(67,715) $ (234,165) ======== =========
20 EX-27.1 3 FINANCIAL DATA SCHEDULE
5 This schedule contains summary consolidated financial information extracted from the financial statements of Globalstar Telecommunications Limited for the quarter ended September 30, 1997 and is qualified in its entirety by reference to such financial statements. 0000933401 GLOBALSTAR TELECOMMUNICATIONS LIMITED 1,000 9-MOS DEC-31-1997 SEP-30-1997 0 0 0 0 0 0 0 0 618,604 1,679 0 0 301,147 30,635 285,143 618,604 0 0 0 0 0 0 15,902 (17,981) 0 (17,981) 0 0 0 (17,981) (0.66) (0.66)
EX-27.2 4 FINANCIAL DATA SCHEDULE
5 This schedule contains summary consolidated financial information extracted from the financial statements of Globalstar, L.P. for the quarter ended September 30, 1997 and is qualified in its entirety by reference to such financial statements. 0001037927 GLOBALSTAR, L.P. 1,000 9-MOS DEC-31-1997 SEP-30-1997 350,059 0 0 0 0 25,972 1,428,588 1,924 1,829,434 137,119 777,396 0 302,826 401,560 0 1,829,434 0 13,799 65,613 65,613 0 0 0 (51,814) 0 (51,814) 0 0 0 (67,715) (1.34) (1.34)
EX-27.3 5 FINANCIAL DATA SCHEDULE
5 This schedule contains summary consolidated financial information extracted from the financial statements of Globalstar Capital Corporation for the quarter ended September 30, 1997 and is qualified in its entirety by reference to such financial statements. 0001037991 GLOBALSTAR CAPITAL CORPORATION 1,000 9-MOS DEC-31-1997 SEP-30-1997 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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