Press Releases
Telesat reports year-end results for 2000
BCE-owned satellite operator's earnings grow 53%; revenue grows 13%.
, a wholly owned subsidiary of BCE Inc., today announced its financial results for the fiscal year ending December 31, 2000. The results show a 13% increase in consolidated revenue and a 53% increase in net earnings.
Total 2000 consolidated revenue increased by $30.5 million to a record $272.4 million. The increase is mainly attributable to a full year of revenue from the Nimiq Direct Broadcast Satellite, additional US revenue from the Ford Motor Company's satellite network, and equipment sales.
Net earnings for 2000 were $47.4 million, a $16.4 million (53%) increase over 1999. Cash generated from operations ($66.2 million) was essentially unchanged from the previous year.
Highlights of 2000 included:
- The successful launch of Telesat's Anik F1 satellite on November 21, 2000, which subsequently began commercial operations in February 2001.
- Start of construction of the Anik F2 satellite by Boeing Satellite Systems International, Inc., with an Arianespace launch scheduled for late 2002.
- The authorization by Industry Canada to operate a Direct Broadcast Satellite (DBS) at the 82 degrees WL orbital position.
- An agreement with WildBlue Communications Inc. to use the Ka-band multimedia capacity on Anik F2 in exchange for cash payments in excess of $200 million and an ownership stake for Telesat in the Colorado-based company.
- The signing of a fifteen-year contract with XM Satellite Radio Inc. to manage the satellite-based infrastructure for its service and the construction of its satellite control centres.
- A contract with ATCO Frontec to provide satellite communications services, including six ground terminals for Bosnia, for the Department of National Defence.
- Securing landing rights for the Anik F1 satellite in a number of South American countries, including Brazil, Venezuela and Chile.
- An FCC regulatory ruling in December 2000 granting full access to the US fixed satellite telecommunications market for the Anik F1 satellite.
In the past two years, Telesat has doubled its satellite capacity with the successful launch of Nimiq in 1999 and Anik F1 in 2000. In addition to providing enhanced Canadian coverage, Anik F1's footprint extends throughout the United States, Mexico and South America. This new capacity and coverage will allow Telesat to become a major satellite player on both continents.
About Telesat
Telesat is the world's most experienced commercial satellite operator. The company made history in 1972 with the launch of the first domestic commercial communications satellite in geostationary orbit. Based in Ottawa, Canada, Telesat now provides telecommunications and broadcast distribution services in the Americas and is a leading consultant, operator and partner in satellite ventures around the globe. Telesat is a wholly owned subsidiary of BCE Inc., one of the world's leading telecommunications companies.
For more information:
Ted Ignacy
Telesat
(613) 748-0123
Dan Tisch or Josh Cobden
Environics Communications
(416) 920-9000, ext. 260/275 (media only)
TELESAT CANADA |
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Consolidated Cash Flow Statement |
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for the year ended December 31, 2000 |
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(in $ millions) |
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2000 |
1999 |
|||||
Cash flows from operating activities |
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Net earnings |
47.4 |
31.0 |
||||
Items not affecting cash: |
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Depreciation |
73.2 |
66.0 |
||||
Capitalized interest |
(22.7) |
(21.0) |
||||
Net change in customer prepayments and deferred interest |
(3.8) |
(3.7) |
||||
Future / deferred income taxes |
(33.4) |
(27.8) |
||||
Other |
5.5 |
22.1 |
||||
66.2 |
66.6 |
|||||
Cash flows from financing activities |
||||||
Increase (decrease) in debt |
72.9 |
(54.6) |
||||
Deposits and prepayments on future satellites |
83.2 |
(0.7) |
||||
Dividends |
(2.7) |
(2.7) |
||||
Satellite performance incentive payments |
(0.7) |
(0.6) |
||||
152.7 |
(58.6) |
|||||
Cash flows from investing activities |
||||||
Proceeds on disposal of assets |
5.7 |
- |
||||
Proceeds on Nimiq transponders |
- |
151.9 |
||||
Satellite programs |
(178.2) |
(161.0) |
||||
Property additions |
(27.0) |
(15.1) |
||||
Investment in TMI Communications and Co. |
(0.2) |
- |
||||
(199.7) |
(24.2) |
|||||
Increase (decrease) in cash and cash equivalents |
19.2 |
(16.2) |
||||
Cash and cash equivalents, beginning of period |
(8.0) |
8.2 |
||||
Cash and cash equivalents, end of period |
11.2 |
(8.0) |
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