Telesat(TSAT) - 2021 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2021, Telesat reported consolidated revenue of $758 million, a decrease of 8% ($62 million) compared to 2020[3]. - Adjusted EBITDA for full year 2021 was $603 million, a decrease of 8% ($50 million), with an Adjusted EBITDA margin of 79.6%[5]. - For the quarter ended December 31, 2021, Telesat reported consolidated revenue of $187 million, a decrease of 7% ($14 million) compared to the same period in 2020[7]. - Revenue for Q4 2021 was $187.5 million, a decrease of 7.4% from $201.9 million in Q4 2020[25]. - Total revenue for the year 2021 was $758.2 million, down 7.6% from $820.5 million in 2020[25]. - Adjusted EBITDA for the year 2021 was $603.3 million, down 7.7% from $653.4 million in 2020[28]. - Adjusted EBITDA margin for Q4 2021 was 77.5%, slightly lower than 79.5% in Q4 2020[28]. Cash and Assets - Telesat ended 2021 with over $1.4 billion in cash and a substantial contractual backlog of $2.1 billion[3]. - Cash and cash equivalents increased to $1.45 billion in 2021 from $818.4 million in 2020, representing a growth of 77.0%[26]. - Total assets rose to $6.37 billion in 2021, up from $5.58 billion in 2020, marking an increase of 14.1%[26]. - Long-term indebtedness increased to $3.79 billion in 2021 from $3.19 billion in 2020, an increase of 19.0%[26]. Operating Expenses - Operating expenses for full year 2021 were $234 million, an increase of 29% ($53 million) from 2020, primarily due to higher non-cash share-based compensation[4]. Future Outlook - Telesat expects its full year 2022 revenues to be between $720 million and $740 million, and Adjusted EBITDA to be between $525 million and $545 million[11]. - Telesat's cash flows used in investing activities for 2022 are expected to be in the range of $100 million to $120 million[12]. Project Developments - Telesat has made significant progress on the Telesat Lightspeed constellation, with investments of $1.44 billion from the Government of Canada and $400 million from the Government of Quebec[3]. - The company recognized $108.5 million related to Phase I accelerated clearing payments for repurposing of U.S. C-band spectrum in 2021[15]. - Fleet utilization was reported at 80% as of December 31, 2021[15]. - Telesat's contracted revenue backlog reflects expected future revenue from existing service contracts, indicating strong future revenue potential[32]. Income Metrics - Operating income for Q4 2021 was $154.3 million, compared to $100.4 million in Q4 2020, reflecting a significant increase of 53.5%[25]. - Net income for Q4 2021 was $97.2 million, a decrease of 61.9% from $255.0 million in Q4 2020[25].