Telesat Reports Q3 Results
Telesat Canada, a wholly owned subsidiary of
BCE Inc., announced today its unaudited financial results for the third quarter ending September 30, 2006. The company, which owns and operates
satellites serving the Americas and provides a wide range of consulting services, maintained strong revenue and profitability.
Telesat's third-quarter operating revenue of $113.5 million represented a 1% increase from $112.2 million in the same period of 2005. The company posted net earnings applicable to common shares of $19.8 million, 22% lower than the $25.3 million in the third quarter of 2005 as a result of higher operating expenses and amortization expenses.
Included in operating expenses are certain
one-time charges to compensation resulting from executive changes in September 2006. Without these one-time expenses, the company's third quarter net
earnings applicable to common shares would have decreased by 2% from the same period in 2005.
For the first nine months of 2006, operating revenue totaled $351.0 million (2005: $357.2 million). Net earnings applicable to common shares were $84.4 million (2005: $71.1 million). Cash flows from operating activities were $171.5 million for the first nine months of 2006, compared to
$175.2 million for the same period in 2005, a decrease of $3.7 million or 2%.
The decrease is mainly due to the special one-time compensation arrangements for both the new and outgoing Presidents.
Highlights for the third quarter included:
- President and CEO retires: On September 11, Telesat announced the retirement of Larry Boisvert as president and CEO. Mr. Boisvert has
been with the company for nearly 34 years, the last 13 as president. He will continue to provide advisory services to BCE over the upcoming months.
- New president and CEO appointed: Telesat announced the appointment of Daniel S. Goldberg as the company's new president and CEO. Mr.
Goldberg, formerly president and CEO of SES New Skies, has 15 years' experience in the communications sector. Over the past six years, Mr.
Goldberg helped launch two successful initial public offerings (IPOs) and concluded two private sale transactions.
- Preliminary prospectus and registration filed: On September 18, Telesat Holding Inc. filed a preliminary prospectus and a registration statement in both Canada and the United States for an
IPO of non-voting shares. Prior to completion of the offering, Telesat Holding Inc. will incur certain indebtedness, the net proceeds of which, together with the net proceeds of the offering,
will be distributed to its shareholder, BCE Inc. Once complete, Telesat Holding Inc. will become the parent of Telesat Canada.
- Anik F3 nearing launch: The launch of Telesat's Anik F3 satellite remains tentatively scheduled for early next year; a firm launch date
is not expected before year-end. The satellite is scheduled for post-storage testing prior to shipment to the launch site in Baikonur.
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