Iridium Communications Inc. (NASDAQ:IRDM) Q2 2020 Earnings Conference Call - Final Transcript

Jul 28, 2020 • 08:30 am ET


Iridium Communications Inc. (NASDAQ:IRDM) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Iridium Communications Second Quarter Earnings Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

At this time, I'd like to turn the conference call over to Ken Levy, VP of Investor Relations. Sir, please go ahead.

Kenneth Levy

Thank you, Jamie. Good morning and welcome to Iridium's second quarter 2020 earnings call. Joining me on this morning's call are our CEO, Matt Desch; and our CFO, Tom Fitzpatrick. Today's call will begin with a discussion of our Q2 results followed by Q&A. I trust you've had the opportunity to review this morning's earnings release, which is available in the Investor Relations section of Iridium's website.

Before I turn things over to Matt, I'd like to caution all participants that our call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical fact and include statements about our future expectations, plans and prospects. Such forward-looking statements are based upon our current beliefs and expectations and are subject to risks, which could cause actual results to differ from forward-looking statements. Such risks are more fully discussed in our filings with the Securities and Exchange Commission.

Our remarks today should be considered in light of such risks. Forward-looking statements presented -- represent our views only as of today. And while we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views or expectations change.

During the call, we'll also be referring to certain non-GAAP financial measures, including operational EBITDA and pro forma free cash flow, free cash flow yield, and free cash flow conversion. These non-GAAP financial measures are not prepared in accordance with Generally Accepted Accounting Principles. Please refer to today's earnings release and on the Investor Relations web section for a further explanation of our non-GAAP financial measures and a reconciliation to the most directly comparable GAAP measures.With that let me turn things over to Matt.

Matthew J. Desch

Thanks, Ken. Good morning, everyone. Not clear that 2020 will be defined by the Coronavirus, while this global pandemic continues to create uncertainty for many industries and Iridium has felt the effects too. We are fortunate to operate a wholesale business and provide mission critical services remain pretty resilient.

Since the initial period following the lockdowns in mid-March, we have seen sequential monthly improvement in our business lines. Subscriber growth in May was better than April and June was better than May, and this trend has now continued into July. Overall, results in the second quarter were flat, compared to last year, which frankly was a good outcome given where the quarter begin.

During the past three months, we've also started to get improved visibility across our partners channels to better assess what we think the full-year impact of the Coronavirus will be on our business. This improved visibility gives us confidence in revising our full-year