…and issued its outlook for the full-year 2012. Net income was $8.4 million, or $0.11 per diluted share, for the fourth quarter of 2011, as compared to $10.1 million, or $0.14 per diluted share, for the fourth quarter of 2010. Operational EBITDA (“OEBITDA”)(1) for the fourth quarter was $44.3 million, as compared to $42.3 million for the prior-year period, representing year-over-year growth of 5 percent and an OEBITDA margin(1) of 47 percent. OEBITDA benefited from solid growth in commercial service and government service revenue.
Iridium reported fourth-quarter total revenue of $95.0 million, which consisted of $66.6 million of service revenue and $28.4 million of equipment, engineering and support revenue. Total revenue grew 8 percent versus the comparable period of 2010, while service revenue increased 11 percent from the year-ago period. Service revenue, which represents primarily recurring revenue from Iridium’s growing subscriber base, was 70 percent of total revenue for the fourth quarter of 2011. The Company ended the quarter with 523,000 total billable subscribers, which compares to 427,000 for the year-ago period and 508,000 for the quarter ended September 30, 2011. Total billable subscribers grew 22 percent year-over-year, driven by strength across all primary product lines.
Capital expenditures were $119.1 million for the fourth quarter and primarily related to spending for the Company’s next-generation satellite constellation, Iridium NEXT, and upgraded ground network infrastructure at its commercial gateway. The Company ended the fourth quarter with a cash and cash equivalents balance of $136.4 million and gross debt of $417.1 million. Net debt was $253.8 million.
“2011 was a record year for Iridium as we reached important milestones for subscriber, service revenue and cash flow growth,” said Matt Desch, CEO, Iridium. “Our ongoing success is rooted in having a superior network, unmatched capabilities in the highest growth segments of our market and a sustainable set of product-related competitive advantages anchored by a motivated partner channel. 2012 is shaping up to be another year of growth as we expect to cross the $200 million Operational EBITDA threshold on our way to launching Iridium NEXT.” To read the entire financial report, access this direct link.
