Today, Iridium Communications has released its 10-K report. The company provides mobile voice and data communications services and products to businesses, governments, non-governmental organizations, and consumers worldwide. It offers a range of services including mobile voice and data satellite communications, push-to-talk, broadband data, and Internet of Things (IoT) services. The company has reported an annual revenue of $656.5 million, representing a 3.6% increase from the previous year. However, the company's shares have moved -13.0% on the market, and are now trading at a price of $30.48.
Key Financial Highlights: Total revenue for the year ended December 31, 2022, was $656.5 million, a 3.6% increase from the previous year. Service revenue represented 74% of total revenue for both 2022 and 2023. The company recognized revenue from hosted payloads, satellite time and location services, and other services. Iridium Communications had approximately 2,279,000 billable subscribers worldwide, an increase of 280,000, or 14%, from the previous year. * The company entered into agreements for launch and related services, with a contract price of approximately $40.0 million in the aggregate.
Debt and Financing: Iridium Communications refinanced its previously existing term loan resulting in total borrowing of $1,500.0 million. The company also has an accompanying $100.0 million revolving loan. * Total interest incurred during the years ended December 31, 2023, 2022, and 2021 was $102.3 million, $72.1 million, and $72.8 million, respectively.
Challenges and Uncertainties: The company faces challenges and uncertainties in operating its business, including maintaining the health and capacity of its satellites, competition from other mobile satellite service providers, regulatory requirements, reliance on a global supply chain, and reliance on a few significant customers, particularly agencies of the U.S. government.
For more information, read the company's full 10-K submission here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $523,008 | $560,444 | $583,439 | $614,500 | $721,034 | $789,819 |
| Operating Margins | 8% | 2% | 6% | 8% | 11% | 7% |
| Net Margins | -3% | -28% | -10% | -2% | 1% | -3% |
| Net Income (k) | -$13,384 | -$161,999 | -$56,054 | -$9,319 | $8,722 | -$23,416 |
| Net Interest Expense (k) | -$55,149 | -$115,396 | -$94,271 | -$73,906 | -$65,089 | -$89,373 |
| Depreciation & Amort. (k) | $218,207 | $297,705 | $303,174 | $305,431 | $303,484 | $342,958 |
| Diluted Shares (k) | 10,898 | 125,167 | 133,491 | 133,530 | 130,134 | 125,176 |
| Earnings Per Share | -$1.23 | -$1.33 | -$0.42 | -$0.07 | $0.07 | -$0.19 |
| EPS Growth | n/a | -8.13% | 68.42% | 83.33% | 200.0% | -371.43% |
| Avg. Price | $16.34 | $23.47 | $26.98 | $41.05 | $37.35 | $35.04 |
| P/E Ratio | -74.27 | -17.65 | -64.24 | -586.43 | 533.57 | -194.67 |
| Free Cash Flow (k) | -$268,769 | $80,324 | $211,078 | $260,727 | $273,462 | $233,581 |
| EV / EBITDA | 12.16 | 13.6 | 14.75 | 19.35 | 16.12 | 14.68 |
| Total Debt (k) | $1,829,737 | $1,776,370 | $1,630,366 | $1,614,500 | $1,503,700 | $1,481,000 |
| Net Debt / EBITDA | 5.99 | 5.04 | 4.11 | 3.68 | 3.51 | 3.56 |
| Current Ratio | 1.49 | 3.01 | 3.08 | 3.9 | 2.16 | 2.13 |
