Globalstar Offering Presentation April 2008 Safe Harbor Statement
This presentation contains certain statements that are, or may deemed to be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, including demand for our products and services, including commercial acceptance of our new Simplex products, including our SPOT™ Satellite Messenger, and the ability to retain and migrate our two-way communications services subscribers to our second-generation constellation when it is deployed; problems relating to the construction, launch or in-orbit performance of our existing and future satellites, including the effects of the degrading ability of our first-generation satellite constellation to support two-way communication; problems relating to the ground-based facilities operated by us or by independent gateway operators; our ability to attract sufficient additional funding to meet our future capital requirements including procurement and deployment of our second-generation constellation; our competitiveness vis-a-vis other providers of satellite and ground- based communications products and services; the pace and effects of industry consolidation; the continued availability of launch insurance on commercially reasonable terms, and the effects of any insurance exclusions; changes in technology; our ability to continue to attract and retain qualified personnel; worldwide economic, geopolitical and business conditions and risks associated with doing business on a global basis; and legal, regulatory, and tax developments, including changes in domestic and international government regulation.
Any forward-looking statements made in this presentation speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and we undertake no obligation to update any such statements. Additional information on factors that could influence our financial results is included in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
We have filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents we have filed with the SEC for more complete information about us and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov . Alternatively, we can arrange to send you the prospectus if you request it by calling Merrill Lynch, Pierce, Fenner & Smith Incorporated toll-free at 1-800-248-3580 or Deutsche Bank Securities Inc. toll free at 1-800-503-4611.
1 Table of Contents
1. Offering Summary
2. Company Overview
3. Network and Spectrum Assets
4. Financial Summary
Appendix
2 Offering Summary Offering Summary
Common Stock Offering Convertible Senior Unsecured Notes Offering (Pursuant to Share Lending Agreement)
Issuer: Globalstar, Inc. Offering Size: Approximately 15 to 20 million shares
Offering Size: $135 million (plus $15 million greenshoe) Merrill Lynch will use shares borrowed from Globalstar and offered in registered Maturity: 20 Years stock offering to facilitate the Use of Proceeds: establishment of hedge positions by Optional Redemption investors in the notes. Globalstar will Callable at any time after Year 5 not receive any proceeds from common Issuer: stock sales
Investor: Putable on every 5th anniversary The stock loan facility will be outstanding Term of Stock Loan until the notes are retired. At Coupon: 5.25% to 5.75% Facility: termination, Merrill Lynch will return shares borrowed to Globalstar [ ]% of proceeds placed in escrow Coupon account with trustee to fund first six semi- Collateralization: Sole Bookrunner: Merrill Lynch & Co. annual interest payments
Conversion 45% to 50% Premium: Incremental Share Equals 45% to 50% of the base Refer to Appendix for more details Factor: conversion rate To fund escrow account and portion of the cost of the build-out and launch of Use of Proceeds: Second-Generation satellite constellation and ground infrastructure and for general corporate purposes
Joint Bookrunners: Merrill Lynch & Co. and Deutsche Bank Securities
3 Senior Management Team
Jay Monroe Chairman and Chief Executive Officer
Tony Navarra President, Global Operations
Fuad Ahmad Vice President and Chief Financial Officer
4 Company Overview Investment Highlights
OperationalOperational GlobalGlobal WirelessWireless andand SatelliteSatellite CommunicaCommunicationstions BusinessBusiness
Industry-LeadingIndustry-Leading Second-GenerationSecond-Generation SatelliteSatellite ConsteConstellationllation inin ConstructionConstruction
SignificantSignificant GrowthGrowth OpportunitiesOpportunities throughthrough SPOT™SPOT™ Satel Satellitelite MessengerMessenger
AttractiveAttractive SpectrumSpectrum AssetsAssets withwith RoadmapRoadmap toto UnlockUnlock VValuealue
ExperiencedExperienced ManagementManagement TeamTeam andand CommittedCommitted PrincipalPrincipal StockholderStockholder
5 Experienced Management Team Also Stakeholders
ThermoThermo / / PublicPublic and and ManagementManagement QualcommQualcomm
62% 38%
PremierPremier Management Management Team Team ThermoThermo Commitment Commitment Years of Industry Name Title Experience Experience Long-term investment philosophy
Jay Chairman, CEO 25 Invested ~$400 million to date Monroe $200 million of purchases conducted President, Tony at $16.17 / share Global 35 Navarra Operations
Fuad Vice President, Transworld 18 Ahmad CFO Telecommunications
6 Operational Wireless Business with Unique Spectrum Assets
GlobalGlobal WirelessWireless andand SatelliteSatellite U.S.U.S. SpectrumSpectrum OpportunityOpportunity CommunicationsCommunications CompanyCompany A leading global provider of mobile satellite 25.225 MHz of contiguous spectrum in two voice and data services blocks at L-band and S-band Services being used for various 19.275 MHz available for ATC applications 11 MHz approved and licensed SPOT™ global satellite messenger presents immense growth opportunity 8.275 MHz expected near-term Rapidly growing asset tracking services First-Generation constellation is ATC capable as demonstrated by Open Approximately 284k subscribers as of 12/31/07 Range agreement 2007 Adjusted Revenue and Adjusted EBITDA of (1) $102.2 million and $21.8 million respectively InternationalInternational SpectrumSpectrum OpportunityOpportunity First-Generation LEO constellation currently consisting of approximately 48 satellites Up to 27.85 MHz available internationally Second-Generation constellation to be launched European Conference of Postal and beginning in the second half of 2009 Telecommunications Administrations (CEPT) licensed its first hybrid ATC system Canada currently considering ATC-like implementation (1) 2007 GAAP Revenue and GAAP EBITDA of $98.4 million and ($2.8) million respectively. EBITDA adjustment of $24.7 million includes non-cash items for impairment of assets, stock compensation, foreign exchange gain, annual compensation plan adjustments and other one-time non-recurring charges. 7 Blue Chip Customer Base with Longstanding Relationships
DiversifiedDiversified Customer Customer Base Base (1)(1) GlobalGlobal Revenue Revenue by by ProductProduct Type Type
Other (3) Uncategorized Government IGO Simplex 7% 20% 4% 5% 26% Satellite Data Modem Transportation 2% 2% Construction 3% Fixed 8% Mobile Voice 3% and Data Utilities 4% (2) 16% Other 4% 74% 5% 8% 9% Natural Resources Recreation & Personal Oil & Gas Telecommunications Maritime & Fishing
CustomersCustomers
(1) Based on North American customers. (2) Includes aviation, education, entertainment and financial. (3) Includes engineering services, accessories and other miscellaneous items. 8 Why Customers Choose and Remain With Globalstar
Only satellite network operator to use Qualcomm CDMA technology, which Superior Voice permits the dynamic selection of the strongest signal available and produces a Quality superior audio quality No noticeable latency compared to competitors’ systems
Retaining customers and expanding addressable market through attractive pricing Attractive Unlimited minutes for a low monthly fee vs. per-minute pricing plans offered by Pricing competition Low handset acquisition cost leads to lower retail pricing
OSAT (Optimum Satellite Availability Tool) allows customers to determine when to reliably use their Globalstar phones Customer- Focused Tools 95%+ call success rate when customers use OSAT Store and forward capabilities allow customers to develop their own duplex data solutions to send data over the Globalstar network
Senior management focus on customer retention incentives and programs Industry-Leading Customer Service Strategic priority to retain core network of duplex voice and data customers
9 Innovative Products and Services
Mobile and Fixed Voice and Data SPOT™ Satellite Messenger Focused Consumer
First Responders and Asset Tracking Aviation and Maritime Solutions Focused Business Commercial/Industrial
10 Established Distribution Channels
DuplexDuplex Voice Voice / /Data Data ExtensiveExtensive Distribution Distribution Network Network andand Simplex Simplex Distribution Distribution
Targeted, optimized distribution network tailored to No. of Distribution Pts. each vertical and geographic region 789 800 Over 25 dedicated distribution managers who manage agents, dealers and resellers
~800 distribution points 700
71% in U.S. and Canada 602
20% in Europe 600 9% in Central/South America
63 resellers and targeted value-added resellers, or VARs in the U.S. 500
Nine IGOs serving approximately 60 countries
400 2004 Current
11 SPOT™: “Game Changing” Consumer Product
UntappedUntapped Market Market Opportunity Opportunity StrongStrong Market Market AcceptanceAcceptance SPOT™ is the first ever global satellite messenger Avid anglers, hikers, climbers, hunters, campers and CRN Top 20 @ CES 2008 boaters Ranked #10 out of a total of Estimated 50 million potential consumers in 20,000 products on exhibition North America (1) Targeted 2-3% market penetration over the next few years Disaster preparedness - ~24 million target market Cabela’s Buyers’ Choice Gold Medal 50,000 U.S. search/rescue missions each year Life-saving events involving SPOT™ have highlighted SPOT™ overcomes limitations of GPS navigation the product utility systems and wireless networks Four rescue missions affecting a dozen lives
SPOT™ Distribution in Place and Growing
No. of Distribution Pts. SPOT™ being sold in 2,000 distribution points, 10,000+ including “Big Box” retailers 10,000
Best Buy Canada, Circuit City Canada, 7,500 Amazon.com, Bass Pro, West Marine, REI, 5,000 Cabela’s, Joe’s, Big 5, Boater’s World, Gander 5,000 Mountain, and Eddie Bauer in place 2,000 Plan to roll-out additional 8,000 distribution points 2,500 through 2009 0 Current Q2 2008E 2009E (1) Source: Globalstar marketing study with Moroch / Experian. 12 SPOT™: Making News and Saving Lives
RecentRecent Recognition Recognition SPOT™SPOT™ Website Website
www.findmespot.com “Many people will buy SPOT ™ simply for its 911 button, as an insurance policy on fluky cellphone service ” - The Mossberg Solution, WSJ, January 30, 2008
“SPOT ™ Satellite Messenger … brings a little celestial high-tech to the common hiker ” - New York Times, January 24, 2008
The Mike Brady Story The Bertsch Story
“SPOT ™ saved my life. If my brother hadn ’t bought me “I can rest easily knowing that Brian [Natalie ’s husband] will SPOT ™ to check-in with him before I left (for Alaska), I have SPOT ™ with him every time he snowmobiles because of might not be here right now. ” the safety capabilities and peace of mind it gives me. ” - Mike Brady - Natalie Bertsch 13 SPOT™: High Incremental Profit with Significant Growth Potential
Illustrative EBITDA Contribution / Subscriber Equipment Annual Service Revenue $115 $135 (1) Cost 82 13 Incremental Gross Profit $33 $122 Less: Acquisition Cost (33) – EBITDA Contribution – $122
(2) Illustrative Annual EBITDA Impact ($MM) Steady State Market Cost of Acquisition per Sub Subscribers (MM) Penetration (3) $25 $30 $50 $75 0.5 1% $61 $61 $60 $58 1.0 2% 122 122 119 116 1.5 3% 184 183 179 175 2.0 4% 245 244 239 233
2%2% market market penetration penetration of of North North AmericaAmerica alone alone would would resultresult in in $100+ $100+ million million in in recurring recurring EBITDA EBITDA (3)(3)
(1) Based on current experience, with approximately 70% of the customers subscribing to the $150 plan and 30% of the customers subscribing to the $100 plan. (2) Illustrative economics shown for steady state no. of units, assuming 1% churn per month. (3) Based on 50 million North American avid outdoor consumer market. Source: Globalstar marketing study with Moroch / Experian. 14 Consolidation of IGOs and Deployment of Simplex
IllustrativeIllustrativeIGOIGO Consolidation Consolidation Consolidation Consolidation Strategy Strategy Economics Economics Consolidation of IGOs improves economics Improves economies of scale and drives higher growth Expands ARPU for IGO customers by ~10x and EBITDA per IGO customer by ~5x Allows consolidated entities to leverage Globalstar’s greater financial, operating and technical resources Globalstar can use its expanded territory to better position consolidated entities to market their services directly to multinational customers
MeaningfulMeaningful Wholesale Wholesale Simplex Simplex Growth Growth
Introduction of new and innovative products by integrators using Globalstar’s Simplex services Data modems using GPS-based position location and asset tracking Satellite data modems capable of providing data monitoring information from remote regions World’s smallest asset tracking modem introduced in Q1 2008 Expansion of Simplex service coverage into high-growth markets of South America and South Asia
15 Network and Spectrum Assets Global and Expanding Footprint
NetworkNetwork SummarySummary DuplexDuplex FootprintFootprint
Satellite Constellation Core network requires 32 satellites 48 Low Earth Orbit (LEO) satellites in operational constellation
Gateways Primary Globalstar Service Area Fringe Globalstar Service Area Extended Globalstar Service Area Anticipated Future Coverage Areas for 25 gateways located across the world Nigeria / Singapore Gateways – 12 are owned by Globalstar and SimplexSimplex // SPOT™SPOT™ 13 by IGOs Two gateways currently under construction in Singapore and Nigeria
Note: Depictions of anticipated future coverage areas are conceptual estimates only. 99% or better probability of successfully Reduced or no coverage available within a Actual geographic coverage areas may differ once future gateways are installed sending a single message within 20 minutes 20-minute period and become operational. 96% to 99% probability of successfully No coverage in this area sending a single message within 20 minutes 16 Second-Generation Satellite Constellation Overview
OnOn Budget Budget / / On On Time Time SuperiorSuperior Constellation Constellation vs. vs. First-Generation First-Generation
Contract signed with Thales Alenia Space to First Generation Second Generation construct 48 low-earth orbit satellites for
€667.6 million Satellite Life (years) 7.5 15 Two thirds of the way through development Cost Per Satellite (1) ~$20mm ~$19mm and construction, with satellite deliveries scheduled to start Q3 2009 and full coverage expected in 2010 Data Speeds Uplink 9.6 kbps 256 kbps New constellation life expected to be 15 Downlink 9.6 kbps 1 Mbps years and allows for additional functionality
including higher data speeds System Throughput – + 40% Higher Extends expected constellation life to Supporting Network CDMA IP-Based WCDMA beyond 2025 Dual-mode, Quad-mode, Handsets/Devices Current products and services compatible cellular frequency multi-frequency with Second-Generation system Arianespace launch services contract signed Supported Applications Voice, Text Voice, SMS, Push to Talk, Video for $210 million Second-Generation Constellation Provides Superior Functionality at One-Third of the Cost of First-Generation Constellation (2)
(1) First Generation cost shown in current dollars, assuming 2% inflation rate. (2) Calculated on an annual dollar per throughput basis.
17 Attractive Spectrum Assets
WirelessWireless Spectrum Spectrum Frequencies Frequencies GlobalstarGlobalstar Global Global Spectrum Spectrum Detail Detail
Cellular Phone L-Band S-Band 600 Service 806 to 902 MHz MSV/Inmarsat 900 Personal Communications 1610 MHz Services (PCS) Globalstar (1) 1850 to 1990 MHz 1,200 11.35 MHz ICO/Terrestar L-Band 1,600 Sirius/XM 1621.35 MHz 2483.5 MHz Iridium 1,800 Globalstar MSV/Inmarsat 16.50 MHz 2,100 2500 MHz S-Band BRS 2,400 Clearwire 2500 to 2690 MHz Sprint Nextel 2,700
ATC Authorized L-Band S-Band Total U.S. MHz-POPs (bn)
Current 5.50 MHz 5.50 MHz 11.00 MHz 3.3
Additional Proposed 2.275 MHz 6.00 MHz 8.275 MHz 2.5
Total 7.775 MHz 11.50 MHz 19.275 MHz 5.8
(1) Globalstar domestic L-Band authority at 8.725 MHz.
18 Superior Spectrum Position
North America
Amount of 27.85 (1) 5.5 (2) 28 20 (3) 28 20 (3) Spectrum (MHz)
ATC Licensed Yes (4) No No No Yes No and Capable
Satellite Coverage
Satellites in Orbit
(1) U.S. allocation is 25.225 MHz. (2) U.S. allocation is 8.75 MHz. (3) Subject to further FCC regulatory approvals. (4) 11 MHz has been approved for ATC in the U.S. Additional 8.275 MHz proposed by recent FCC NPRM.
19 ATC Timeline and Approval Process
Feb. 2003 Jan. 2006 Jun. 2006 Oct. 2007 Nov. 2007 2008
FCC requests public FCC adopts Globalstar rules permitting FCC grants comment on whether Globalstar enters into satellite service Globalstar Globalstar should be petitions FCC agreement with Expected FCC providers to authorization to authorized to provide ATC to authorize use Open Range decision on establish ATC operate ATC service on an additional of remaining allowing use of additional 8.275 networks, but network initially 8.275 MHz. Company has spectrum for spectrum for MHz spectrum operators must over 11 MHz of certified operations without ATC rural wireless spectrum interference to adjacent comply with broadband gating criteria services
FCC’s ATC gating criteria creates a barrier to entry
Satellite coverage throughout U.S. Globalstar is the only company that can provide Integrated satellite and terrestrial ATC service with existing constellation service Spare satellite
20 First ATC Player with Contract to Unlock Value (Cont’d)
OpenOpen Range Range AgreementAgreement Economics Economics
Entered into agreement on October 31, 2007
Initial term of 30 years with 10-year renewal option Annual payment of $4.8 million in year 1 increasing to $10.1 million in year 6 Assumes coverage of 6 million POPs from year 1 through 5 and 12.5 million POPs in year 6 and thereafter
The agreement is contingent on various conditions including final authority from the FCC for additional ATC spectrum
EstablishingEstablishing Spectrum Spectrum Valuation Valuation Floor Floor
Minimum Lease Payments Minimum Lease Payments + (No Subscriber Revenue Share ) Subscriber Revenue Share (1)
Implied $ / MHz-POP $0.15 - $0.20 $0.30 - $0.40
(1) At assumed Open Range subscriber projections and cost of capital of 9-12% and shown for 19.275 MHz ATC spectrum. Assumes coverage of 6 million POPs in years 1 through 5 and 12.5 million POPs in year 6 and thereafter.
22 Financial Summary Historical Financials
SubscribersSubscribers (000s) (000s)
284 263 300 196 200 141 110 100
0 2003 2004 2005 2006 2007
AdjustedAdjusted Revenue Revenue Growth Growth (1)(1) (2) (2) AdjustedAdjusted EBITDA EBITDA (2)(2) (3) (3) $33.8 $160.0 $144.6 $40.0 $129.4 $27.3 $30.0 $21.8 $120.0 $44.6 $102.2 $84.4 $45.7 $20.0 $20.1 $4.5 $80.0 $60.2 $10.0 $26.4 $17.8 $99.9 $0.0 $40.0 $83.7 $82.1 $57.9 ($10.0) $42.4 ($12.9) $0.0 ($20.0) 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
Service Equipment Note: All dollars in millions. (1) Revenue from annual service plans is adjusted to reflect revenue as though payments are received on a monthly basis. (2) Please see Appendix for reconciliation between GAAP revenue and GAAP EBITDA and Adjusted Revenue and Adjusted EBITDA. (3) Based on adjusted revenue and excludes asset impairment and other non-recurring and non-cash charges.
25 Historical Operating Metrics
AdjustedAdjusted Retail Retail ARPUARPU (1)(1) MonthlyMonthly Churn Churn
$80.00 3.0%
$70.05 $69.05 $67.93 $70.00 $64.46 2.5%
$60.00
$48.55 2.0% $50.00 1.8%
(2) 1.5% $40.00 1.5% 1.3%
` $30.00 1.0% 1.1% $20.00 0.9%
0.5% $10.00
$0.00 0.0% 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007
(1) Revenue from annual service plans is adjusted to reflect revenue as though payments are received on a monthly basis. (2) 2004 churn incorporates clean-up of 4,000 accounts post-restructuring in April.
26 Fully Funded Business Plan
SourcesSources of of Capital Capital CapitalizationCapitalization
Actual Pro Forma Total Cash as of 12/31/07 $118 (3) 12/31/07 12/31/07 Thermo Credit Facility 100 Cash (4) $38 $168 Proceeds from $150mm Convertible Issue (1) 144
(2) Required Operating Cash Flow ('08 - '10) 259 Thermo Revolver $50 $50
Total $621 Convertible Debt (3) - 135 Total Debt $50 $185
Book Value of Equity 406 406
UsesUses of of Capital Capital (’08 (’08 - - ’10) ’10) Total Capitalization $456 $591
(5) (6) Second-Generation Satellites and Related Costs $391 Current Future Second-Generation Launch and Related Costs 230 Total Debt / MHz-POP $0.05 $0.05 Total $621
Note: Dollars in millions. (1) Includes $15 million underwriters’ over-allotment option. Proceeds are net of fee. Escrow amounts included in required operating cash flow. (2) Required cash flow to fund procurement and launch of Second-Generation constellation and related ground facilities. (3) Pro forma for $135 million convertible debt offering, which excludes $15 million underwriters’ over-allotment option. (4) Excludes restricted cash of $81 million, which is dedicated towards the company’s second-generation capex and government securities pledged for holders of the notes. Excludes proceeds from assumed $15 million Underwriters’ over-allotment option. (5) Includes $100 million Thermo term loan in Jan. ‘08. Based on 11 MHz of ATC authority. (6) Includes $100 million Thermo term loan in Jan. ’08. Assumes 19.275 MHz of total ATC authority.
27 Value Creation Timeline
Operational Global Wireless Business
11 MHz of ATC Approved Spectrum Market Recognition of Core Business Value
Continued SPOT™ Other U.S. ATC Success Opportunities
Additional 8.275 Open Range International ATC MHz of ATC Grant Deployment Opportunities
Today Near-Term Medium-Term Long-Term
28 Appendix Stock Loan Facility: Initial Transaction Flows
“Normal” Process Stock Borrow Facility
Convertible Debt Convertible Debt Convertible Convertible 1 1 investors investors $ $ s re ha Stock Loan S 2 Stock AT an 2 S o GSAT Loan Agreement G L $ 3 of ck Stock n 4 to ur S et R
GSAT Stock Lending Shareholders Equity Market 3 Equity Market $
GSAT issues Convertible Debt 1 1 ML, DB act as underwriters GSAT issues Convertible Debt ML, DB act as underwriters Convertible investors borrow shares from GSAT Shareholders willing 2 2 to lend their GSAT shares ML enters into stock loan agreement with GSAT. ML borrows GSAT stock (new shares) The lenders can receive the stock back at any time
Upon lending shares, shareholders do not have the right to vote 3 ML sells borrowed shares to equity investors the shares Registered offering fully discloses stock lending arrangement Registration statement covers loan of shares to ML, sale of shares
Convertible investors short the GSAT shares into the equity market to by ML, and Convertible Debt establish their hedge against the convertible position 3 The largest amount occurs the day of marketing 4 ML enters into swap with hedge funds Hedge Fund is “synthetically” short
Hedge Fund has term borrow source
29 Stock Loan Facility: Ongoing Flows
Cash Flows during Term
Swap Interest Dividends Convertible Dividends Investors
If dividend is paid during term, convertible investors owe dividend amount to ML and ML pays dividend amount to GSAT
Maturity
Conversion Shares or Par $ 1
2 GSAT shares Swap Settlement Convertible 3 Investors 1 If the convertible is in-the-money, investors receive shares (or cash, at GSAT's option) Shares $ If the convertible is out-of-the money, investors get cash 2 ML and convertible investors settle swap Equity Market 3 ML delivers shares to GSAT
30 Adjusted Revenue and Adjusted EBITDA Reconciliation
20032003 20042004 20052005 20062006 20072007 RevenueRevenue $60.2$60.2 $84.4 $84.4 $127.1 $127.1 $136.7 $136.7 $98.4 $98.4 AnnualAnnual Plans Plans Adjustment Adjustment –– – – 2.2 2.2 7.9 7.9 3.8 3.8 AdjustedAdjusted Revenue Revenue $60.2$60.2 $84.4 $84.4 $129.4 $129.4 $144.6 $144.6 $102.2 $102.2
NetNet Income Income ($266.4)($266.4) $0.4 $0.4 $18.7 $18.7 $23.6 $23.6 ($27.9) ($27.9) IncomeIncome Tax Tax (Benefit) (Benefit) 0.10.1 (4.3) (4.3) 2.5 2.5 (14.1) (14.1) 2.9 2.9 InterestInterest Income Income (0.0)(0.0) (0.1) (0.1) (0.2) (0.2) (1.2) (1.2) (3.2) (3.2) InterestInterest Expense Expense 1.61.6 1.4 1.4 0.3 0.3 0.6 0.6 9.0 9.0 InterestInterest Rate Rate Derivative Derivative Loss Loss ------2.72.7 3.2 3.2 DepreciationDepreciation & & Amortization Amortization 31.6 31.6 2.0 2.0 3.0 3.0 6.7 6.7 13.1 13.1 EBITDAEBITDA ($233.0)($233.0) ($0.7) ($0.7) $24.3 $24.3 $18.4 $18.4 ($2.8) ($2.8)
AdjustmentAdjustment ImpairmentImpairment of of Assets Assets $211.9$211.9 $0.1 $0.1 $0.1 $0.1 $1.9 $1.9 $19.1 $19.1 Non-cashNon-cash Stock Stock Compensation Compensation ------1.21.2 10.1 10.1 OtherOther One-time One-time Non-recurring Non-recurring Charges Charges 8.3 8.3 5.1 5.1 -- 0.40.4 0.3 0.3 ForeignForeign Exchange Exchange Loss Loss (Gain) (Gain) ---- 0.60.6 4.0 4.0 (8.7) (8.7) (1) (1) 2.2 7.9 3.8 AnnualAnnual Plans Plans Adjustments Adjustments ---- 2.2 7.9 3.8 SubtotalSubtotal $220.2$220.2 $5.2 $5.2 $3.0 $3.0 $15.4 $15.4 $24.7 $24.7
AdjustedAdjusted EBITDA EBITDA ($12.9)($12.9) $4.5 $4.5 $27.3 $27.3 $33.8 $33.8 $21.8 $21.8 Note: All dollars in millions. (1) Annual plans are adjusted to reflect revenue as though they were monthly plans.
31