Telesat Corp (TSAT) 2024 Q2 法說會逐字稿

Good morning, ladies and gentleman, and welcome to the conference call to report the second quarter 2024 financial result from Telesat. Our speakers today will be Dan Goldberg, President and Chief Executive Officer of Telesat; and Andrew Browne, Chief Financial Officer of Telesat.

早安，女士們、先生們，歡迎參加 Telesat 報告 2024 年第二季財務業績的電話會議。今天我們的演講者是 Telesat 總裁兼執行長 Dan Goldberg；安德魯布朗 (Andrew Browne)，Telesat 財務長。

I would now like to turn the meeting over to Mr. James Ratcliffe, Vice President of Investor Relations. Please go ahead, Mr. Ratcliffe.

現在我想將會議轉交給投資者關係副總裁詹姆斯·拉特克利夫 (James Ratcliffe) 先生。請繼續，拉特克利夫先生。

Thank you, Paul, and good morning, everyone. This morning, we filed our quarterly report for the period ending June 30, 2024, on Form 6-K with the SEC and on SEDAR Plus. Our remarks today may contain forward-looking statements. There are risks that Telesat's actual results may differ materially from the results contemplated by the forward-looking statements as a result of known and unknown risks and uncertainties. For a discussion of known risks, please see Telesat's annual report and updates filed with the SEC.

謝謝你，保羅，大家早安。今天早上，我們以 6-K 表形式向 SEC 和 SEDAR Plus 提交了截至 2024 年 6 月 30 日期間的季度報告。我們今天的言論可能包含前瞻性陳述。由於已知和未知的風險和不確定性，Telesat 的實際結果可能與前瞻性陳述預期的結果有重大差異。有關已知風險的討論，請參閱 Telesat 向 SEC 提交的年度報告和更新。

Telesat assumes no responsibility to update or revise these forward-looking statements. I will now turn the call over to Dan Goldberg, Telesat's President and Chief Executive Officer.

Telesat 不承擔更新或修改這些前瞻性聲明的責任。我現在將把電話轉給 Telesat 總裁兼執行長 Dan Goldberg。

Okay. Thanks, James, and good morning to everyone. Q2 and the first six months of this year have unfolded consistent with our expectations. As a result, we're reaffirming all of our guidance for the year and keeping focused to make sure we meet those objectives. When we hosted our first quarter call in early May, we indicated we were seeking to conclude our Lightspeed funding agreements with the governments of Canada and Quebec by the end of this summer.

好的。謝謝詹姆斯，大家早安。第二季和今年前六個月的情況符合我們的預期。因此，我們重申了今年的所有指導，並繼續專注於確保實現這些目標。當我們在五月初舉辦第一季電話會議時，我們表示我們正在尋求在今年夏末之前與加拿大和魁北克政府達成 Lightspeed 融資協議。

This is obviously a key priority for us. I'm happy to say that we've had good and sustained engagement with government representatives, and we are optimistic that we remain on track to achieve this timing. We'll make a separate announcement once the definitive funding agreements are concluded. Beyond that, we're making strong progress executing on the Lightspeed program. As MDA, our prime satellite contractor, noted on its earnings call last week, they've now selected and onboarded 90% of the suppliers for the Lightspeed program, and they remain on track for their full-year ramp-up plan.

這顯然是我們的首要任務。我很高興地說，我們與政府代表進行了良好且持續的接觸，並且我們樂觀地認為，我們仍然有望實現這一目標。一旦達成最終的融資協議，我們將另行發佈公告。除此之外，我們在 Lightspeed 計畫的執行上也取得了巨大進展。正如我們的主要衛星承包商 MDA 在上週的財報電話會議上指出的那樣，他們現在已經為 Lightspeed 計劃選擇並接納了 90% 的供應商，並且他們仍然按計劃實施全年的提升計劃。

We've increased our own headcount since the start of the year by nearly 20% as we staff up to execute on Lightspeed, and the team is making excellent progress on the program. As we noted in today's earnings release, our focus this year remains twofold. For our GEO activities, the emphasis is on maximizing EBITDA and cash flow by doing what we can to mitigate anticipated revenue declines and rigorously managing our cost structure. And on LEO, it's all about execution, closing our funding agreements, staffing up, building out all the various elements of the Lightspeed network, including the satellite, the ground infrastructure, and the software that we need, and commercializing it in the key verticals we're focused on. I'm very pleased with the progress we're making in all of those areas.

自今年年初以來，我們已經將自己的員工人數增加了近 20%，因為我們正在增加人員來執行 Lightspeed，而團隊在該計劃上取得了出色的進展。正如我們在今天的財報中指出的那樣，我們今年的重點仍然是雙重的。對於我們的 GEO 活動，重點是透過盡我們所能減輕預期收入下降並嚴格管理我們的成本結構，最大限度地提高 EBITDA 和現金流。在 LEO 上，一切都與執行有關，完成我們的融資協議，配備人員，構建 Lightspeed 網路的所有各個元素，包括衛星、地面基礎設施和我們需要的軟體，並將其在關鍵垂直領域商業化我們專注於。我對我們在所有這些領域取得的進展感到非常滿意。

We're hugely bullish on our prospects in the market, as well as our ability to deliver an extraordinary value proposition for our customers, and significant value creation for our shareholders. With that, I'll hand over to Andrew and then look forward to taking any questions.

我們非常看好我們的市場前景，以及我們為客戶提供非凡價值主張和為股東創造重大價值的能力。接下來，我將把工作交給安德魯，然後期待回答任何問題。

Thank you, Dan, and good morning, everyone. I would now like to focus on highlights from this morning's press release and filings. In the second quarter of 2024, Telesat reported consolidated revenues of $152 million and adjusted EBITDA of $103 million. The first six months of 2024, the company generated $66 million in cash from operations ending the second quarter with $1.4 billion of cash.

謝謝丹，大家早安。我現在想專注於今天上午的新聞稿和文件中的要點。2024 年第二季度，Telesat 報告合併收入為 1.52 億美元，調整後 EBITDA 為 1.03 億美元。2024 年前六個月，該公司從營運中產生了 6,600 萬美元現金，截至第二季末，該公司現金為 14 億美元。

For the second quarter of 2024, and compared to the same period in 2023, revenues decreased by $27 million to $152 million, operating expenses increased by $5 million to $56 million, and adjusted EBITDA decreased by $35 million to $103 million.

2024 年第二季度，與 2023 年同期相比，營收減少 2,700 萬美元，至 1.52 億美元，營運費用增加 500 萬美元，至 5,600 萬美元，調整後 EBITDA 減少 3,500 萬美元，至 1.03 億美元。

The adjusted EBITDA margin was 67.8% as compared to 77.1% in the first quarter of 2023. The revenue decrease for the quarter was primarily due to reduction in services and a low rate on the renewal of a long-term agreement with a North American direct-to-home customer, as well as lower revenues from certain mobility and Latin American customers. The increase in operating expenses is primarily due to higher wages and benefits, bad debt expense and costs associated with consulting contracts, partially offset by lower non-cash share-based compensation and higher capitalized engineering expense associated with Telesat Lightspeed.

調整後 EBITDA 利潤率為 67.8%，而 2023 年第一季為 77.1%。本季營收下降的主要原因是服務減少、與北美直接到戶客戶的長期協議續約率較低，以及某些行動和拉丁美洲客戶的收入下降。營運費用的增加主要是由於工資和福利、壞帳費用以及與諮詢合約相關的成本增加，但部分被非現金股份薪資的減少以及與 Telesat Lightspeed 相關的資本化工程費用的增加所抵消。

Interest expense decreased by $7 million during the second quarter when compared to the same period in 2023, the decrease in interest expense was primarily due to the repurchase of notes and term loan B. This was partially offset by an increase in the interest rate in the US term loan facility. In the second quarter, we recorded a loss in foreign exchange of $34 million. as compared to a gain of $67 million in the second quarter of 2023.

與 2023 年同期相比，第二季利息支出減少了 700 萬美元，利息支出的減少主要是由於回購票據和定期貸款 B。第二季度，我們錄得外匯損失3,400萬美元。相比之下，2023 年第二季收益為 6,700 萬美元。

The loss of the three months ended June '24 was mainly the result of the strengthening US dollar, the Canadian dollar spot rate, to the quarter as compared to the spot rate as of December 31, 2023, and the resulting unfavorable impact on the translation of our US dollar denominated debt. Our net income for the second quarter was $129 million compared to a net income of $519 million for the same period in the prior year. The change was primarily due to the one-time recognition of C-band clearing income in the second quarter of 2023, along with the impact of the foreign exchange loss, as I had mentioned earlier.

截至 2024 年 6 月的三個月的虧損主要是由於與截至 2023 年 12 月 31 日的即期匯率相比，本季度美元、加元即期匯率走強，以及由此對換算產生的不利影響我們的美元計價債務。我們第二季的淨利潤為 1.29 億美元，而去年同期的淨利潤為 5.19 億美元。這項變更主要是由於2023年第二季一次性確認C波段清算收入，以及我之前提到的外匯損失的影響。

For the six months ended June 30, 2024, cash inflows from operating activities were $66 million, and capital expenditures were $334 million in the same period, almost all of which were related to Telesat Lightspeed. Actual cash used in investment activities was $220 million in the first six months of the year, certain capital expenditures were incurred late in the second quarter and subsequently accrued. This is reflected in the increase in trade and other payables at quarter end.

截至2024年6月30日的六個月，經營活動現金流入為6,600萬美元，同期資本支出為3.34億美元，幾乎全部與Telesat Lightspeed有關。今年前六個月投資活動實際使用的現金為2.2億美元，某些資本支出在第二季末發生並隨後提列。這反映在季末貿易和其他應付款項的增加。

Guidance. As you will also have noted in our earnings release this morning, we have reaffirmed our 2024 guidance. This guidance assumes a Canadian dollar to US dollar exchange rate of Canadian 1.35%. For 2024, Telesat still expects its full-year revenues to be between $545 million and $565 million.

指導。正如您在今天早上的財報中所注意到的，我們重申了 2024 年的指導方針。本指引假設加幣兌美元匯率為 1.35%。對於2024年，Telesat仍預計全年收入在5.45億美元至5.65億美元之間。

In terms of operating expenses, excluding share-based compensation, we are still looking to spend between $80 billion to $90 billion, attributed to Telesat Lightspeed. Adjusted EBITDA, Telesat still expects to be between $340 million to $360 million.

就營運支出而言，不包括以股份為基礎的薪酬，我們仍預計在 Telesat Lightspeed 上支出 800 億至 900 億美元。調整後的 EBITDA，Telesat 仍預計在 3.4 億至 3.6 億美元之間。

As promised, we are also showing our GEO and LEO results separately, and as reflected in Note 4 of our financial statements filed on Form 6-K. In respect to expected capital expenditures, we continue to expect our 2024 cash flows used in investing activities to be in the range of $1 billion to $1.4 billion, which is nearly all related to expected Telesat Lightspeed CapEx.

正如承諾的那樣，我們還分別展示了 GEO 和 LEO 結果，如 6-K 表格中提交的財務報表附註 4 所示。就預期資本支出而言，我們繼續預期 2024 年用於投資活動的現金流量將在 10 億至 14 億美元之間，幾乎全部與預期的 Telesat Lightspeed 資本支出有關。

To meet our expected cash requirements for the next 12 months, including interest payments and capital expenditures, we have approximately $1.4 billion of cash in short-term investments at the end of June, as well as approximately USD200 million of borrowing capacity available under a revolving credit facility. Approximately $1.2 billion in cash was held in our unrestricted subsidiaries at the end of the quarter. In addition, we continue to generate a significant amount of cash from our ongoing operating activities. At the end of the second quarter, total leverage ratio as calculated under the terms of the amended senior secured credit facilities was [5.61x]. Telesat is in compliance with all the covenants in our credit agreements and indentures.

為了滿足未來 12 個月的預期現金需求，包括利息支付和資本支出，截至 6 月底，我們擁有約 14 億美元的短期投資現金，以及約 2 億美元的循環借款能力信貸便利。截至本季末，我們的非受限子公司持有約 12 億美元現金。此外，我們繼續從持續的經營活動中產生大量現金。第二季末，根據修訂後的優先擔保信貸額度計算的總槓桿率為[5.61x]。Telesat 遵守我們信貸協議和契約中的所有約定。

In terms of our debt repurchases, we repurchased year-to-date an amount of USD262 million at a cost of USD120 million, including accrued interest. This includes an amount of USD43 million purchased after quarter end. Combined with the debt repurchases completed in 2022 and 2023, we've now repurchased a total principal amount of USD849 million at a cost of USD459 million, including accrued interest. This also results in interest savings of approximately $55 million annually. Including the repayment in 2020 of approximately USD356 million of term loan B, our overall debt has been reduced now by approximately 26% of $1.2 billion.

債務回購方面，年初至今，我們回購了2.62億美元，成本為1.2億美元，其中包括應計利息。其中包括季度末後購買的 4,300 萬美元。加上2022年和2023年完成的債務回購，我們目前回購本金總額為8.49億美元，成本為4.59億美元，其中包括應計利息。這也導致每年節省約 5500 萬美元的利息。包括2020年償還約3.56億美元的定期貸款B在內，我們的整體債務現已減少約12億美元的26%。

A reconciliation between our financial statements and financial covenant calculations is provided in the report we filed this morning. Our 6-K provides the unaudited interim condensed consolidated financial information in MD&A. The non-guarantor subsidiary shown are essentially unrestricted subsidiary with minor differences. So that concludes prepared remarks for the call, and I would be very happy to answer any questions you may have.

我們今天早上提交的報告中提供了我們的財務報表和財務契約計算之間的核對錶。我們的 6-K 在 MD&A 中提供未經審計的中期簡明合併財務資訊。所示的非擔保子公司本質上是非限制性子公司，僅有細微差別。為電話會議準備的發言就到此結束，我很樂意回答您可能提出的任何問題。

So with that, I will turn back to the operator for the question and answer session and thank you.

因此，我將返回接線員進行問答環節，並向您表示感謝。

Thank you very much. (Operator Instructions)

非常感謝。（操作員說明）

Edison Yu, Deutsche Bank.

於愛迪生，德意志銀行。

Good morning. Thank you for taking our questions. First, just want to clarify that the negotiations are on track. Are you basically saying that it will conclude in the next couple of weeks based on your kind of end of the summer timeline?

早安.感謝您接受我們的提問。首先，我想澄清一下，談判正在步入正軌。您基本上是說，根據您的夏季結束時間表，它將在接下來的幾週內結束？

Yes, that's effectively right. Our expectation is that in the next couple of weeks we will conclude the agreements and make a separate announcement about that.

是的，這實際上是正確的。我們的期望是，在接下來的幾週內，我們將達成協議並就此單獨發佈公告。

And I guess, is there anything that still needs to be worked out? Or is this sort of more the right people got to make the right signatures? Or is there anything kind of outstanding?

我想，還有什麼需要解決的嗎？或者說，這是更合適的人做出正確的簽名嗎？或是有什麼特別突出的地方嗎？

Yes. No. As I said in my prepared remarks, we've had really good engagement with the government representatives. These are representatives from the Government of Canada and the Government of Quebec. There are a good number of agreements that need to get concluded in order to document all the different features of the funding arrangements.

是的。不。正如我在準備好的演講中所說，我們與政府代表進行了良好的接觸。他們是加拿大政府和魁北克政府的代表。為了記錄融資安排的所有不同特徵，需要簽訂大量協議。

At this point in time, there's -- I don't see any significant impediments or obstacles in getting this done in the coming weeks. And so, yes, we're just -- it's a big funding arrangement with multiple agreements and we're just working through all that. But there's nothing, yes, kind of extraordinary about what remains to get done.

目前，我認為在未來幾週內完成這項工作沒有任何重大障礙或障礙。所以，是的，我們只是——這是一項涉及多項協議的大型融資安排，我們正在努力解決所有這些問題。但是，是的，剩下的工作並沒有什麼特別之處。

Just switching to the guidance on the CapEx obviously implies a pretty substantial step up, even at the low-end range. I guess, how do we think about what determines if you end up close to $1 billion, close to $1.4 billion? And what sort of drive to delta?

即使在低端範圍內，只要切換到資本支出指導，顯然就意味著相當大的進步。我想，我們如何看待決定你最終是否接近 10 億美元、接近 14 億美元的因素？去三角洲需要什麼樣的駕駛方式？

Andrew, do you want to take that?

安德魯，你想接受嗎？

Yes, sure. That if you look at our flow of CapEx in the second quarter, it's approximately about $309 million or so. So if you kind of multiply that by 3, you actually get, get to $1 billion from a mathematical perspective. So that's why we feel pretty comfortable where we are with the range.

是的，當然。如果你看一下我們第二季的資本支出流量，你會發現大約是 3.09 億美元左右。因此，如果你將其乘以 3，從數學角度來看，你實際上會得到 10 億美元。這就是為什麼我們對這個系列感到非常滿意。

Yes. And maybe I would just add that, it's a sign that the program is on track. I mentioned again in my prepared remarks that MDA who's the prime and is going to be the beneficiary of so much of our capital spending this year and next, they've done a great job of getting all their suppliers online. They're placing orders and they're moving out exactly as we would like them to. And so, yes, we felt everything we're seeing tells us that we're going to be tracking the guidance.

是的。也許我只想補充一點，這是該計劃步入正軌的標誌。我在準備好的發言中再次提到，MDA 是主要的，並將成為我們今年和明年大量資本支出的受益者，他們在讓所有供應商上線方面做得很好。他們正在下訂單，並且正在按照我們的要求搬走。所以，是的，我們覺得我們所看到的一切都告訴我們，我們將跟踪指導。

And as Andrew said, there was a big spend in Q2 and everything we're seeing is showing good progress and that our suppliers will achieve the milestones they need to achieve in order to unlock the payments that we've sort of budgeted for.

正如安德魯所說，第二季度支出很大，我們看到的一切都顯示出良好的進展，我們的供應商將實現他們需要實現的里程碑，以便解鎖我們預算中的付款。

And thank you. I'll jump back in the queue.

謝謝你。我會跳回到隊列中。

Okay. Thanks.

好的。謝謝。

David McFadgen, Cormark Securities.

大衛‧麥克法德根 (David McFadgen)，Cormark 證券公司。

And a couple of questions. Can you just give us an update on where you stand with respect to negotiating that one DTH customer? I think the contract is up for renewal this fall.

還有幾個問題。您能否向我們介紹一下您在與 DTH 客戶談判方面的最新立場？我認為合約將於今年秋天續簽。

Yes. Thanks, David. So just for everyone's benefit, we've got a renewal with EchoStar on our Nimiq 5 satellite that comes up in early October, and we've said that on our last [two] calls, I think, that we've been engaged with EchoStar. So we're not done yet. I've mentioned before, we know EchoStar well.

是的。謝謝，大衛。因此，為了大家的利益，我們在 10 月初與 Nimiq 5 衛星上的 EchoStar 進行了續訂，我認為，在我們的最後 [兩次] 通話中，我們已經說過，我們一直在與迴聲星。所以我們還沒完成。我之前提到過，我們很了解 EchoStar。

We have a good relationship with them. We've done business with them for a very long time. So we've certainly had a number of exchanges, but we're not done yet. So my expectation, obviously, with this renewal coming up in about two months' time, we'll be landing on a resolution pretty soon.

我們和他們關係很好。我們與他們做生意已經很久了。所以我們確實進行了多次交流，但我們還沒有完成。因此，顯然，我的期望是，隨著大約兩個月後的續約，我們很快就會達成一項決議。

Certainly, I think that by the time we do our Q3 call, we'll be able to provide a lot of detail around where we landed. But at this point in time, still having discussions with them.

當然，我認為當我們進行第三季電話會議時，我們將能夠提供有關我們著陸地點的大量詳細資訊。但此時此刻，仍在與他們進行討論。

Okay. And maybe a couple of questions on Lightspeed. So in terms of definitive agreements, you were saying that you expect to have them sign by the end of summer. Is that with both the Government of Canada and the Government of Quebec? Because I think in the past you were primarily referring to the Government of Canada.

好的。也許還有一些關於 Lightspeed 的問題。因此，就最終協議而言，您說希望他們在夏末之前簽署。加拿大政府和魁北克政府都是這樣嗎？因為我認為您過去主要指的是加拿大政府。

Yes, no, it's our expectation that it'll be with both of them. And again, it's why it's taken a little while. Again, we're tracking the timeframe that we had envisioned a few months ago when we put out our Q1 numbers. But because it is the Government of Canada, it is the Government of Quebec. We also have this vendor financing.

是的，不，我們期望他們兩個都會在一起。再說一遍，這就是為什麼花了一點時間的原因。再次，我們正在追蹤幾個月前發布第一季數據時設想的時間框架。但因為它是加拿大政府，所以它是魁北克政府。我們也有這種供應商融資。

And so there -- all of that needs to get done, it takes a little bit longer than if it were, one, just a purely commercial kind of funding syndicate. And two, yes, with these government funding, there are, yes, it's kind of special consideration. So yes, it'll be with the Government of Canada, with the Government of Quebec. And it all feels like it's moving in the right direction. I have to say, just because I'm a former lawyer, it ain't over till it's over, but we're highly confident that that we're going to get there in the coming weeks.

因此，所有這些都需要完成，比純粹的商業融資集團需要更長的時間。第二，是的，有了這些政府資助，有，是的，這是一種特殊的考慮。所以，是的，這將與加拿大政府和魁北克政府合作。一切感覺都在朝著正確的方向發展。我必須說，僅僅因為我是一名前律師，一切都還沒結束，但我們非常有信心在未來幾週內實現這一目標。

Okay. And then can you update us on your total spend to date on Lightspeed?

好的。那麼您能否向我們介紹您迄今為止在 Lightspeed 上的總支出？

Andrew?

安德魯？

And for looking up to the half year, as we said, we've spent $334 million in total, of which cash was $220. And the balance has indeed been reflected in the accounts payable that we see on the balance sheet.

展望半年，正如我們所說，我們總共花了 3.34 億美元，其中現金為 220 美元。而餘額確實已經反映在我們在資產負債表上看到的應付帳款中。

And those are Canadian dollars, right, Andrew, just --?

這些是加元，對吧，安德魯，只是——？

Yes, correct. Canadian dollars. Correct.

是的，正確。加元。正確的。

So I think the budget for Lightspeed is $3.5 billion. Well, that's the [US] number. And so that's -- so you spent CAD334 million so far on the project? All in?

所以我認為Lightspeed的預算是35億美元。嗯，那是[美國]號碼。到目前為止，您在該專案上花費了 3.34 億加元？都在嗎？

Yes.

是的。

Wait. No, no, no. We -- that's just what we've done so far this year. Yes, but we've been making investments in the program for the past few years, including payments with launch providers, a lot of the nonrecurring engineering investment that's gotten made, user terminal development, just kind of across the board.

等待。不，不，不。我們——這正是我們今年迄今為止所做的事情。是的，但過去幾年我們一直在對該計劃進行投資，包括向發射提供者付款、進行的大量非經常性工程投資、用戶終端開發，等等。

So Andrew, I don't know if you want to say anything more about that.

安德魯，我不知道你是否還想對此多說一些。

Yes, no, I can. If you go all the way back to the development, back to 2020 and on a Canadian dollar basis, looking at CapEx, it's about $980 million CapEx is what we have spent doing all of the work that we have done to get where we are today.

是的，不，我可以。如果你一路回到開發，回到 2020 年，以加元為基礎，看看資本支出，資本支出約為 9.8 億美元，這是我們為達到今天的成就所做的所有工作所花費的。

And currency?

還有貨幣？

In Canadian dollars.

以加元計算。

Okay. Okay. That's great. Thank you.

好的。好的。那太棒了。謝謝。

Thank you.

謝謝。

Chris Quilty, Space.

克里斯·奎爾蒂，太空。

So congratulations. You put up better results than I was expecting for Q2, but that begets the question, you maintain full year guidance. And so did you see anything that was pulled forward into Q2? Maybe just first question.

所以恭喜你。您在第二季度的業績比我預期的要好，但這引發了一個問題，您維持全年指導。那麼您有看到任何被拉到第二季的事情嗎？也許只是第一個問題。

No. No. The quarter unfolded, yes, like we expected.

不。不。是的，這個季度的進展正如我們預期的那樣。

So I therefore kind of didn't model the back half down as much as perhaps I should have to stay at kind of the midpoint of the guidance. Putting aside Nimiq 5, which I had already accounted for, when you look at the base of the business, are there any other large contract roll offs? Or the other issues you've sort of identified Maritime and Latin America, are those getting better or worse?

因此，我沒有對後半部分進行建模，也許我應該保持在指導的中點。拋開我已經考慮過的 Nimiq 5 不談，當你看看業務基礎時，是否還有其他大型合約滾存？或者您已經確定的海事和拉丁美洲的其他問題，這些問題是變得更好還是更糟？

I think. Look, we gave guidance at the outset of the year, like in any year, there are always puts and takes. In the main, the year has been unfolding like we expected. There were some renewals that we didn't think we were going to get, that we did. There were some things that we thought would roll off in a certain timeframe.

我認為。看，我們在今年年初就給出了指導，就像在任何一年一樣，總是有投入和收穫。總體而言，這一年的進展正如我們預期的那樣。有一些我們認為不會得到的續約，但我們做到了。我們認為有些事情會在特定的時間範圍內完成。

We still think they're going to roll off, but they're rolling off a little bit later. And then equally, there are some things that played out in a way that's probably worse than what we thought. One of the things I'd note, and we flag it in the 6-K, is our customer Xplore, which is a Canadian rural broadband provider that serves its customers with a mix of satellite, terrestrial, wireless and fiber. Xplore is going through a restructuring process right now. And as a result, we bumped up our bad debt provision in the quarter and we're trimming our expectations for what we'll do with them for the rest of this year.

我們仍然認為它們會消失，但它們會晚一點消失。同樣，有些事情的發展方式可能比我們想像的更糟。我要注意的一件事是我們的客戶 Xplore，我們將其標記在 6-K 中，這是一家加拿大農村寬頻供應商，為其客戶提供衛星、地面、無線和光纖的混合服務。Xplore 目前正在經歷重組過程。因此，我們提高了本季的壞帳撥備，並降低了對今年剩餘時間處理壞帳準備的預期。

So I'd say that was one that we didn't anticipate when we gave our guidance at the outset of the year. But that's something that will be a bit of a headwind in the second half of the year and potentially next year as well.

所以我想說，這是我們在年初給出指導時沒有預料到的。但這在今年下半年甚至明年可能會帶來一些阻力。

And remind you, Dan, because that was, they bought all the Viasat and Hughes in Canadian payloads for Viasat 1 and 2. You guys were involved in the deal, if I can say, as sort of a middleman through that contract, if I remember correctly. So I wasn't expecting there was a huge revenue or margin contribution on that.

提醒你，丹，因為他們購買了加拿大 Viasat 1 和 2 號有效載荷中的所有 Viasat 和 Hughes。如果我沒記錯的話，你們作為合約的中間人參與了這筆交易。所以我沒想到這會帶來巨大的收入或利潤貢獻。

Yes, no, not really. So -- but you're right. You're right in the sense that Xplore uses satellite capacity from Telesat, Viasat and Hughes. But no, we didn't act as a middleman for any of that. We own the payload.

是的，不，不是真的。所以——但你是對的。從 Xplore 使用 Telesat、Viasat 和 Hughes 的衛星容量的意義上來說，您是對的。但不，我們沒有充當任何中間人。我們擁有有效負載。

I'm sorry, the Canadian payload for Viasat 1, and we did a long-term deal with Xplore to use that payload, but they did their own direct deals with Hughes and Viasat for their other capacity, so that doesn't flow through our P&L.

抱歉，加拿大的 Viasat 1 有效載荷，我們與 Xplore 達成了長期協議來使用該有效載荷，但他們與 Hughes 和 Viasat 就其其他容量進行了直接交易，因此不會流過我們的損益表。

Second question for Andrew. I guess, spending a $1 billion in the back half of the year is no small feat for the government, but for Telesat, that's a big chunk of money, and clearly people are not building stuff at that rate. How much of that should we think of as prepayments to -- and how does that flow through MDA to the supplier base in terms of the revenue contribution on the other side? If you can (inaudible) --

安德魯的第二個問題。我想，今年下半年花費 10 億美元對政府來說不是一件小事，但對於 Telesat 來說，這是一大筆錢，而且顯然人們並沒有以這個速度建造東西。我們應該將其中多少視為預付款——就另一方的收入貢獻而言，這些預付款如何透過 MDA 流向供應商群體？如果可以的話（聽不清楚）——

So maybe, Chris, I'll take this one, and I won't speak to MDA's revenue recognition, or I mean, talk to them about that, but our suppliers need the money. They're ordering equipment right now. I mean, don't forget, we're launching satellites two years from now, which means that those satellites are going to be getting built in the coming months. And so they're ordering, you name it, solar arrays. I'm sitting here with my CTO. Help me out, Dave, I mean.

所以，克里斯，也許我會接受這個，我不會談論 MDA 的收入確認，或者我的意思是，與他們談論這一點，但我們的供應商需要錢。他們現在正在訂購設備。我的意思是，不要忘記，我們將在兩年後發射衛星，這意味著這些衛星將在未來幾個月內建成。所以他們正在訂購太陽能電池板。我和我的首席技術長坐在這裡。幫幫我吧，戴夫，我是說。

So all of the various components on the spacecraft that...

所以航天器上的所有各種組件...

People --

人們--

Mechanical, the propulsion system, solar arrays, attitude controls, all of that.

機械、推進系統、太陽能電池陣列、姿態控制，所有這些。

100%. People are building stuff. All the supply chain is building stuff. They're ramping up. They're spending money.

100%。人們正在建造東西。所有的供應鏈都在建造東西。他們正在加速。他們在花錢。

And as much as I would like to think that everyone wants to do, tell us that, a great big favor. In my experience, all these companies want money before they start spending money. So that's the flow of funds. And here again, and I'm somebody that is always squeamish about spending money, but the reality is we're hitting the schedule and they're moving out. And the worry would be, if we weren't spending the money, then our schedule, to me and to other people that know this industry, it wouldn't be credible.

儘管我認為每個人都想做，但請告訴我們，這是一個很大的幫助。根據我的經驗，所有這些公司在開始花錢之前都需要錢。這就是資金流向。再說一遍，我是一個總是對花錢很挑剔的人，但現實是我們正在按計劃進行，而他們正在搬走。令人擔心的是，如果我們不花錢，那麼我們的日程安排對於我和其他了解這個行業的人來說是不可信的。

The reality is, yes, we're spending a lot of money over the next 24 months because people are buying stuff and building stuff, and that's exactly what's going on.

現實是，是的，我們在接下來的 24 個月裡會花費大量資金，因為人們正在購買東西並建造東西，而這正是正在發生的事情。

And speaking of stuff, I have to ask the company, but also an industry question around your selection of Tesat for your optical terminal, I think you were involved with Mynaric on a couple phases of DARPA Space Station, and obviously that technology is absolutely critical to the sort of performance and economic returns you expect. So can you perhaps give us a little soliloquy on the process there?

說到東西，我必須問公司，還有一個關於你們為光學終端選擇 Tesat 的行業問題，我認為你們參與了 DARPA 空間站的幾個階段的 Mynaric，顯然技術絕對是關鍵達到你期望的績效和經濟回報。那麼您能給我們講一下這個過程嗎？

Yes. So and our world class long standing CTO, Dave Wendling, is sitting in the room with me. But I'll take the first crack at this, Dave, and you can come around. So yes, these optical intersatellite links are a key part of the constellation. And for everything on the constellation, whether that's the onboard processor, the antennas, the digital antennas, or these optical links, we're always trying to make the right choice between cost capability and kind of reliability heritage and whatnot.

是的。我們世界級的長期技術長戴夫溫德林 (Dave Wendling) 正和我一起坐在房間裡。但我會先解決這個問題，戴夫，你可以接受。所以，是的，這些光學星間連結是該星座的關鍵部分。對於星座上的所有東西，無論是板載處理器、天線、數位天線或這些光學鏈路，我們總是試圖在成本能力和可靠性傳統等之間做出正確的選擇。

So we had -- and there are a lot of folks right now that are coming forward with good optical technology in space. We worked with MDA in making the selection. So that's something else I'd note this was kind of a joint effort, joint determination between Telesat and MDA. And the reality is we landed on Tesat because they kind of most check the box on those different variables, performance, reliability, cost, schedule, all of that. So Tesat has good heritage here.

所以我們——現在有很多人正在提出良好的太空光學技術。我們與 MDA 合作進行了選擇。所以我要指出的是，這是 Telesat 和 MDA 之間的共同努力、共同決定。事實上，我們選擇 Tesat 是因為他們大多數情況下都會檢查這些不同的變量，例如性能、可靠性、成本、進度等等。所以 Tesat 在這裡有著良好的傳統。

They have a very good, capable optical link. At the end of the day, it was a competitive process. And at the end of the day, we at MDA judged that Tesat was the best vendor for it. It's not a black mark against any of the other companies out there that are making optical links. We have a -- we felt like we had a number of good alternatives, but at the end of the day, Tesat got over the line for us.

他們擁有非常良好、功能強大的光纖鏈路。歸根究底，這是一個競爭的過程。最終，我們 MDA 判斷 Tesat 是該產品的最佳供應商。對於任何其他製造光鏈路的公司來說，這並不是一個污點。我們感覺到我們有很多不錯的選擇，但最終，Tesat 為我們超越了界限。

And Dave, I don't know if there's anything else.

戴夫，我不知道是否還有其他事情。

No, I think you said it well, Dan, I just note that was a very disciplined down selection and selection process in the final analysis end, so. And as you said, Tesat came out on top in a very tough process.

不，我認為你說得很好，丹，我只是注意到，歸根結底，這是一個非常嚴格的篩選和選擇過程，所以。正如您所說，Tesat 在一個非常艱難的過程中脫穎而出。

And final question, listening to the MDA call the other day, clearly, you're top of the heap with them, but they apparently have a new undisclosed customer that's sort of grown inside very quickly. This would lead someone to believe it might be a government customer, which tends to exert priority. Again, I'm speculating, but these are the things we've seen happen before. Do you have any concerns? I know they're ramping up to a capacity of like 2,000 satellites a year, but they're ramping up.

最後一個問題，前幾天聽 MDA 的電話，很明顯，你是他們中的佼佼者，但他們顯然有一個新的未公開客戶，而且內部增長得很快。這會讓某人相信它可能是政府客戶，而政府客戶往往會優先考慮。再說一遍，我只是在猜測，但這些都是我們以前見過的事情。有什麼顧慮嗎？我知道他們的產能正在增加到每年 2,000 顆衛星，但他們正在增加。

Is there a growing book of business turning anything for you?

是否有一本不斷增長的商業書籍可以為您帶來任何改變？

So the short answer is no. They're right down the street from us, about an hour and a half away from us. We know MDA well. Our teams are well-integrated. We've got a lot of former MDA employees here.

所以簡短的回答是否定的。他們就在我們的街上，距離我們大約一個半小時​​的路程。我們非常了解 MDA。我們的團隊非常融洽。我們這裡有很多前 MDA 員工。

They probably have a couple of former Telesat employees on their side. We have actually a really good working relationship with MDA at all the different levels, kind of throughout our organizations. We've worked with MDA for decades, not as a satellite prime, principally on the antenna side and whatnot, although they've been building satellites for years and years. So no, we don't have any concern. We're in close contact with them as they ramp-up their staff, as they ramp-up the supply chain.

他們可能有幾位前 Telesat 員工。實際上，我們與 MDA 在各個不同層級（甚至整個組織）都建立了非常良好的工作關係。我們與 MDA 合作了數十年，不是作為衛星主力，主要是在天線方面和其他方面，儘管他們多年來一直在建造衛星。所以不，我們沒有任何擔心。當他們增加員工、擴大供應鏈時，我們與他們保持密切聯繫。

We, including myself, meet with them on a regular cadence, so which is not to say that we're relaxed and complacent. This is a huge program for us. It's a huge program for them. Both of us need this program to be successful. I like that dynamic where we both have a lot of skin in the game, but no, I mean, it's something that we're going to keep monitoring very, very closely.

我們，包括我自己，定期與他們會面，所以這並不是說我們放鬆和自滿。這對我們來說是一個巨大的計劃。這對他們來說是一個巨大的計劃。我們雙方都需要這個計畫才能成功。我喜歡這種動態，我們都參與其中，但不，我的意思是，我們將繼續非常非常密切地監控這一點。

But no, I feel good right now about where they are on the ramp-up and how our teams are engaging in the like. And if we feel differently about that, we'll let you know.

但不，我現在對他們的進展以及我們的團隊如何參與類似活動感覺良好。如果我們對此有不同看法，我們會通知您。

Great. Thanks.

偉大的。謝謝。

Thanks, Chris.

謝謝，克里斯。

Walter Piecyk, LightShed.

沃爾特·皮西克，LightShed。

Dan, just a quick -- first, a quick follow-up on one of Chris's questions with regard to you have this strength in the first half of the year relative to guidance. Are you basically assuming that EchoStar is a zero in terms of revenue for the fourth quarter as they kind of work through their cash issues? Is there some probability associated with that when you put together your guidance numbers?

丹，首先，快速跟進克里斯的一個問題，關於你在今年上半年相對於指導的優勢。您是否基本上假設 EchoStar 第四季度的收入為零，因為他們正在解決現金問題？當您將指導數字放在一起時，是否存在與此相關的某種機率？

Well, when we put together our guidance, and we said this before, it captured a range of outcomes with EchoStar, and we haven't changed any of those assumptions in terms of what those range of outcomes could be. So no. The back half of the year and our thinking about it hasn't deteriorated because we've learned something new or thinking has changed about EchoStar from where we stood at the outset of the year when we gave the guidance. And I guess, the other thing I'd say is, yes, we all track what's going on in the sector, including what's going on with EchoStar. The reality is, to date, the direct-to-home satellite business is obviously still generating a significant amount of cash flow at EchoStar.

嗯，當我們整理我們的指導意見時，我們之前說過，它捕捉了 EchoStar 的一系列結果，並且我們沒有改變任何關於這些結果範圍可能是什麼的假設。所以不。今年下半年，我們對它的看法並沒有惡化，因為我們學到了一些新東西，或者對 EchoStar 的看法與年初我們給出指導時的情況相比發生了變化。我想，我想說的另一件事是，是的，我們都在追蹤該行業正在發生的事情，包括 EchoStar 的情況。現實是，迄今為止，直接入戶衛星業務顯然仍在 EchoStar 產生大量現金流。

To date, Nimiq 5 is being fully, fully used by EchoStar, my expectation is to the extent that they renew with us, then that will be a reflection that Nimiq 5 is still an important part of their distribution infrastructure, and they'll find a way to pay for that. Because it's important that they continue to provide service to their DTH customers and continue to enjoy the benefit of that cash flow. And so my expectation is they'll find a way to make sure that they're paying us. So I'm just pausing here. Are we still online?

到目前為止，Nimiq 5 正在被 EchoStar 充分、充分地使用，我的期望是他們與我們續訂，那麼這將反映出 Nimiq 5 仍然是他們分銷基礎設施的重要組成部分，他們會發現一種支付方式。因為繼續為 DTH 客戶提供服務並繼續享受現金流的好處非常重要。所以我的期望是他們會找到一種方法來確保他們向我們付款。所以我就在這裡暫停一下。我們還在線上嗎？

Okay, sorry. Our screen was flickering here. I wasn't sure if we had lost the line.

好吧，抱歉。我們的螢幕在這裡閃爍。我不確定我們是否斷線了。

Yes. I mean, I agree. I mean, look, if they have to generate some level of free cash flow in one element of the business and they can't switch off a Nimiq 5, then you got to get -- why not just put a gun to their head then and just not let them off the hook for a lower renewal?

是的。我的意思是，我同意。我的意思是，看，如果他們必須在業務的某個要素中產生一定程度的自由現金流，而他們又無法關閉Nimiq 5，那麼你就必須明白——為什麼不直接用槍指著他們的頭呢？

Well, I mean, look, with all of our customers, you try to, yes, frame things in a kind of a win-win way as best you can. You don't always get there. But we've been working with EchoStar for nearly 20 years now and we have a good relationship with them. We've talked about this before. We all know it.

嗯，我的意思是，你看，與我們所有的客戶一起，你盡可能以雙贏的方式建立事物。你並不總是能到達那裡。但我們與 EchoStar 合作已經近 20 年了，我們與他們有著良好的關係。我們之前已經討論過這個問題。我們都知道。

The direct-to-home satellite business is facing real secular headwinds. We try to work with, whether it's Bell or EchoStar or Shaw, try to work with them to sustain that business because there still are millions of households across North America that rely on those services. And so yes --.

直接入戶衛星業務正面臨真正的長期阻力。我們嘗試與貝爾、EchoStar 或 Shaw 合作，維持這項業務，因為北美仍有數百萬個家庭依賴這些服務。所以是的--.

I just feel like on this renewal, however many years it's going to be, also longevity of the stat itself, it's like this is the last one. 5 years from now, if they're a couple million subs lower, then they're not going to be maybe as nice to you as you're sounding like you want to be nice to them in this negotiation. In other words, like this, it could be the last negotiation of your 20 year relationship. So why not, like just squeezing for everything you can?

我只是覺得這次更新，無論它會持續多少年，也無論統計數據本身的壽命有多長，這就像是最後一次更新。五年後，如果他們的薪水降低了幾百萬，那麼他們可能不會像你在這次談判中聽起來想對他們友善那樣對你友善。換句話說，像這樣，這可能是你們20年關係的最後一次談判。那為什麼不呢，就像竭盡全力去爭取一切一樣呢？

Yes, I don't know. We've been doing this for a long, long time. It's not how we approach our customers in the market. And so anyway, so stay tuned. We're going to conclude one way or another our renewal discussions with them and then we'll be able to provide an update on that in a couple months time.

是的，我不知道。我們這樣做已經很久了。這不是我們在市場上對待客戶的方式。無論如何，請繼續關注。我們將以某種方式結束與他們的續約討論，然後我們將能夠在幾個月內提供最新情況。

Maybe I felt on the LEO, now the MDA is kind of talking about it more obviously, there's seemingly more confidence in the market that the project's moving forward. Has this opened up any additional presales on the enterprise side? I realize obviously the launch is still a couple of years out, but wondering if you got any kind of additional commitment.

也許我對 LEO 的感覺是，現在 MDA 對此的討論更加明顯，市場似乎對該項目的進展更有信心。這是否為企業側開闢了額外的預售？我意識到顯然該發布還需要幾年時間，但想知道您是否有任何額外的承諾。

And to that end, in terms of the market size, beyond enterprise, what Globalstar and Apple have done in this recent phone, again, getting back to the directed device, I know this is not the target market that you want, but is there any rethinking in that in terms of directed device? I mean, I think Skylo had an announcement yesterday with the new pixel phone.

為此，就市場規模而言，除了企業之外，Globalstar 和 Apple 在這款最新手機中所做的事情，再次回到定向設備，我知道這不是您想要的目標市場，但是存在嗎？定向設備方面有任何重新思考嗎？我的意思是，我認為 Skylo 昨天發布了新 Pixel 手機的公告。

It seems to be a market developing. I've been using the Globalstar stuff. It's been great in the whole coverage that exists. Just curious if your thought process has changed in terms of trying to attack that market.

這似乎是一個正在發展的市場。我一直在使用 Globalstar 的東西。現有的整個報道都很棒。只是好奇您在嘗試進攻該市場方面的思維過程是否發生了變化。

It's a great question, but no, it hasn't. The reality is the spectrum that Lightspeed's operating on the cave and spectrum is ideal for broadband connectivity, but it's not ideal for direct device providing a broadband connection, even an airband connection to a handheld smartphone, so. And we believe the market that the verticals that we're focused on are great opportunities for us. They're large, they're deep, they're fast growing. And we've optimized the constellation to serve that market.

這是一個很好的問題，但事實並非如此。現實情況是，Lightspeed 在洞穴中運行的頻譜對於寬頻連接而言是理想的頻譜，但對於提供寬頻連接的直接設備（甚至是與手持智慧型手機的空中頻段連接）來說並不理想。我們相信，我們所關注的垂直市場對我們來說是巨大的機會。它們很大，很深，而且生長得很快。我們已經優化了星座來服務該市場。

The frequencies are really well-suited to serve that market. And so, no, that remains the focus. And then as far as presales activities, Lightspeed is moving forward. I mean, if anyone still has any questions about that. Yes, I mean, I don't know what to say, but we're obviously spending money.

這些頻率確實非常適合服務該市場。所以，不，這仍然是焦點。就預售活動而言，Lightspeed 正在向前推進。我的意思是，如果有人對此仍有疑問。是的，我的意思是，我不知道該說什麼，但我們顯然在花錢。

MDA is ordering stuff and we're all ramping up our staff and I mean, Lightspeed's going forward. I think the customer community understands that. We've got salespeople and business development people running all around the world engaged with the customers that we know well in these different verticals. And so, nothing to announce right now, but --.

MDA 正在訂購東西，我們都在增加我們的員工，我的意思是，Lightspeed 正在向前發展。我認為客戶群理解這一點。我們的銷售人員和業務開發人員遍布世界各地，與我們熟悉的不同垂直領域的客戶進行交流。所以，現在沒有什麼可宣布的，但是--.

And I know you only announced, like, material contracts, but could you at least comment whether there have been incremental bookings that maybe they're not significant enough to call out (inaudible) --

我知道您只宣布了重大合同，但您至少可以評論一下是否有增量預訂，這些預訂可能還不夠重要，無法指出（聽不清楚）——

No, no, no, I mean --

不不不我是說--

But other than any booking since the last earnings call?

但除了上次財報電話會議以來的任何預訂之外？

No, no. But it wasn't our expectation that there would be any. We're having good engagement with really good prospective users in the key verticals that we're focused on, Arrow Maritime, government enterprise. It wasn't my expectation that we'd be announcing anything since putting out our Q1 numbers. The market knows what we're building.

不，不。但我們並沒有預料到會有這樣的情況。我們正在與我們重點關注的關鍵垂直行業（Arrow Maritime、政府企業）中真正優秀的潛在用戶進行良好的互動。自從發布第一季數據以來，我並不期望我們會宣布任何事情。市場知道我們正在建造什麼。

Users are excited about it. There's a clear validation that the customer community is highly receptive to LEO. You see the traction that Starlink is getting and we think that we're bringing something really compelling to the market. So anyway, stay tuned. And we'll be very transparent about the orders we're getting.

用戶對此感到興奮。客戶群對 LEO 的接受度很高，這一點已得到明確證實。您將看到 Starlink 的吸引力，我們認為我們正在為市場帶來真正引人注目的東西。所以無論如何，請繼續關注。我們將對收到的訂單非常透明。

Right now we've got about [$750 million] of take or pay commitments on Lightspeed, which we do not include when we talk about the CAD1.1 billion backlog that we report in the earnings release. The Lightspeed backlog is separate and apart from that. And we'll -- as that moves, we'll report on it and we'll talk about the wins that we have and the like.

目前，我們對 Lightspeed 做出了約 [7.5 億美元] 的照付不議的承諾，但當我們談論我們在財報中報告的 11 億加元積壓訂單時，我們並未將其包括在內。Lightspeed 待辦事項是獨立的。隨著進展，我們將對此進行報告，我們將討論我們所取得的勝利等。

Thank you.

謝謝。

Thanks.

謝謝。

Sean Mahoney, Bank of America.

肖恩·馬奧尼，美國銀行。

Yes, thanks for taking the questions. First, I noticed a large working capital outflow for the restricted group and a large working capital benefit for the unrestricted group in the quarter. So just wondering, does that reflect any intercompany flows? Or is it just a coincidence that those numbers largely offset? Or did you use the remaining unsub investment capacity as you indicated you would on the last call?

是的，感謝您提出問題。首先，我注意到本季受限制組的營運資金大量流出，而不受限制組的營運資金則大量受益。所以只是想知道，這是否反映了公司間的流動？或者這些數字很大程度上抵消了只是巧合？或者您是否按照上次通話中表示的那樣使用了剩餘的取消訂閱投資能力？

Yes. So that's the investment down from Telesat Canada into the unrestricted group. And from a timing perspective, it's just showing up top in operations. But next quarter you'll see it down as an investment in.

是的。這就是加拿大電信公司對無限制集團的投資。從時間角度來看，它只是在營運中表現出色。但下個季度你會發現它是一項投資。

Okay. Got it. Thank you. And then for GEO OpEX, Q2 was up sequentially. It seems like at least part of that was due to the bad debt expense associated with Xplore that you mentioned as well as higher professional fees. How should we think about run rate GEO OpEx? Should we look more to like Q1? Or do you expect to continue to incur higher bad debt expense with the -- with Xplore or higher professional fees for some time?

好的。知道了。謝謝。然後對於 GEO OpEX，第二季連續上升。看來至少部分原因是您提到的與 Xplore 相關的壞帳費用以及更高的專業費用。我們應該如何考慮 GEO OpEx 的運作率？我們應該更喜歡 Q1 嗎？或者您預計在一段時間內繼續因 Xplore 或更高的專業費用而產生更高的壞帳費用？

And if you look at our GEO business overall, we'll point out our actual EBITDA margin is 80%, which is pretty, pretty high, pretty significant. And we said on our last call we were expecting GEO OpEx to be down 4% in our plans and that's contained within the guidance and that's still what we are actually sticking to now.

如果你從整體上看我們的 GEO 業務，我們會發現我們的實際 EBITDA 利潤率為 80%，這是非常非常高、非常顯著的。我們在上次電話會議上表示，我們預計 GEO 營運支出將在我們的計劃中下降 4%，這已包含在指導中，而且我們現在實際上仍然堅持這一點。

On the bad debt, I just shared the bad debt amount delta is about $2 million to $3 million. So on a grand scale it's not that sort of material. But as we said in the last call, in terms of OpEx and as Dan had alluded to and spending money, we are pretty judicious on what we do and how we spend money and which is good. So as I say, that's what we said on our call. That's a review of GEO OpEx.

關於壞賬，我剛剛分享了壞帳金額增量約為 200 萬至 300 萬美元。所以從大範圍來看，它不是那種材料。但正如我們在上次電話會議中所說，就營運支出以及丹所提到的和花錢而言，我們對我們所做的事情、如何花錢以及哪些是好的方面都非常明智。正如我所說，這就是我們在電話中所說的。這是對 GEO OpEx 的評論。

Okay. Got it. And then on the bad debt expense that you mentioned. Yes, looks like it went up like $3.3 million in the quarter. So call it $1.1 million a month. Are you still recognizing revenues from Xplore and just kind of offsetting that with bad debt expense?

好的。知道了。然後就是你提到的壞帳費用。是的，看起來這個季度增加了 330 萬美元。所以稱之為每月 110 萬美元。您是否仍在確認 Xplore 的收入並用壞帳費用來抵銷？

Yes, we are currently recognizing revenue at Xplore. They're making partial payments. So we continue to recognize revenue till we know more about what their plan is go forth.

是的，我們目前正在確認 Xplore 的收入。他們正在支付部分款項。因此，我們繼續確認收入，直到我們更多地了解他們的計劃。

Okay. And can you quantify like what the remaining -- what their remaining obligations are I guess under the contract? Like how much of your backlog includes the Xplore obligations?

好的。你能量化一下合約中剩下的義務嗎？例如您的待辦事項中有多少包含 Xplore 義務？

Yes, we'll help you out there. So, John, remind me, it goes out until --?

是的，我們會幫助您。所以，約翰，提醒我，它會熄滅直到——？

January 2027.

2027 年 1 月。

Yes. So it would be '25 and '26. It's probably order of magnitude about CAD40 million of backlog that's in that CAD1.1 billion. You should also know that about a one-third of that was prepayment. And so when we recognize revenue from Xplore each quarter, about a one-third of it is just noncash deferred revenue. So that's -- but what it is, Sean.

是的。所以應該是'25和'26。這 11 億加元中的積壓訂單可能約為 4,000 萬加元。您還應該知道其中大約三分之一是預付款。因此，當我們每季確認 Xplore 的收入時，其中約三分之一隻是非現金遞延收入。這就是——但這就是事實，肖恩。

Okay, thanks. And then the last one, I know a few people have asked, so I'll just try one more time on the guidance. So the low end of this -- of the guidance implies second half revenues of about $240 million, which would be $40 million a month. And you did $305 million or about just north of $50 million per month in the first half. I know that there's the renewal with EchoStar that comes up, I think, I can't remember September, October, but in the past, you've said that those DTH birds are about $70 million a year. Could be more, could be less.

好的，謝謝。最後一個，我知道有幾個人問過，所以我會再嘗試一次指導。因此，該指引的下限意味著下半年收入約為 2.4 億美元，即每月 4,000 萬美元。上半年您的收入為 3.05 億美元，即每月約 5,000 萬美元。我知道 EchoStar 即將續約，我想，我不記得是 9 月、10 月了，但在過去，您說過那些 DTH 鳥每年大約 7000 萬美元。可以多一點，也可以少一點。

But just wondering if you could help us understand like the drop off of at least, or I guess even if you lost 100% of that EchoStar contract, it seems like you're still assuming some pretty steep declines in the rest of the business in the second half of the year.

但只是想知道你是否可以幫助我們理解至少的下降，或者我猜即使你失去了 100% 的 EchoStar 合同，看起來你仍然假設其他業務會出現一些相當急劇的下降下半年。

I'm looking at Andrew, maybe I'll take this. Yes, I guess, how we thought about the year. Certainly, we -- even if this renews, we expect that it'll be at a materially lower rate. So we've captured different outcomes with dish that explain part of the decline. We've got this issue with Xplore.

我看著安德魯，也許我會接受這個。是的，我想，我們是如何看待這一年的。當然，即使更新，我們預計利率也會大幅降低。因此，我們透過菜餚捕捉到了不同的結果，這可以解釋部分下降的原因。我們在 Xplore 中遇到了這個問題。

We'll see where we land on that. So it's things like that. I'd note also there's, we take a look at kind of all of our business activities periodically. We're giving consideration to selling kind of a non-core business that we own and that could potentially get done in the near-term. So it would be impactful for this year.

我們會看看我們會在哪裡著陸。事情就是這樣。我還要指出的是，我們會定期檢查我們所有的業務活動。我們正在考慮出售我們擁有的某種非核心業務，這可能會在短期內完成。所以這對今年來說是有影響的。

It contributes revenue, it doesn't contribute a whole lot of EBITDA to us. But that if we were to do that, would weigh somewhat on the top-line at least. So it's all those kinds of things. And then, yes, we gave a range, right? I mean, there's a low end of the range.

它貢獻了收入，但並沒有為我們貢獻大量的 EBITDA。但如果我們這樣做，至少會在某種程度上影響營收。就是這樣的事情。然後，是的，我們給了一個範圍，對嗎？我的意思是，有一個範圍的低端。

There's a high end of the range. And, yes. Andrew, do you want to add anything?

該範圍有一個高端。而且，是的。安德魯，你想補充什麼嗎？

Yes, indeed. If you look at the OpEx, as we know, we're -- as Dan said we're hiring people. So our OpEx indeed will in LEO, or investment in LEO for the people perspective, is going to increase. If you look at our segmentation, operating expenses for the six months was about $32.8 million. And our guidance was given for OpEx and LEO is between $80 million to $90 million.

是的，確實如此。如果你看看營運支出，我們知道，正如丹所說，我們正在招募人員。因此，我們在 LEO 上的營運支出，或從人們的角度來看，對 LEO 的投資，將會增加。如果你看一下我們的細分，你會發現這六個月的營運費用約為 3,280 萬美元。我們對 OpEx 和 LEO 的指引為 8,000 萬至 9,000 萬美元。

So that will also kind of play in overall as to what the increase -- potential increase in OpEx in second half versus first half. So that plays in right down to the adjusted EBITDA as well. And I will say we are prudent as well in what we do.

因此，這也將在整體上影響下半年營運支出相對上半年的潛在成長。因此，這也直接影響調整後的 EBITDA。我想說的是，我們所做的事情也是謹慎的。

And maybe one other thing James is pointing out to me that and now that we've broken out our GEO and LEO numbers separately, it's easier for you guys all to see. But we recognized revenue in LEO for the first half of the year. That -- and that's chunky nonlinear kind of revenue. It was the consulting contract that we had. I think that this one was with NASA, which there's more revenue recognition in the front part of the year than there is in the back part.

也許詹姆斯向我指出的另一件事是，現在我們已經分別列出了 GEO 和 LEO 數據，大家更容易看到。但我們確認了 LEO 上半年的收入。那是一種大量的非線性收入。這是我們的諮詢合約。我認為這是美國國家航空暨太空總署 (NASA) 的事，該公司在今年的前半段獲得的收入確認比後半段的收入要多。

Here again, it's not contributing a whole lot of EBITDA, but it'll impact the top-line. So anyway, Sean, it's kind of all those things, but there's certainly nothing that other than the Xplore restructuring that's going on, we don't know where that's going to land.

同樣，它並沒有貢獻大量的 EBITDA，但它會影響營收。所以無論如何，肖恩，所有這些事情都是如此，但除了正在進行的 Xplore 重組之外，肯定沒有什麼，我們不知道它會發生在哪裡。

There's nothing about how the second half of the year is shaping up. That's really anything different than the way we were thinking about the second half of the year at the outset of this year when we gave our guidance.

目前還不清楚今年下半年的情況如何。這與我們在今年年初給予指導時對下半年的看法確實有很大不同。

And if you look at the segmentation breakout we've done, which I think is very useful and very transparent, the numbers we just sort of are the issues we just mentioned about the OpEx and the revenues in LEO, you can actually see that quite clearly and particularly pertaining to the first three months.

如果你看看我們所做的細分突破，我認為這是非常有用且非常透明的，我們剛剛提到的有關營運支出和 LEO 收入的問題，你實際上可以看到顯然，特別是與前三個月有關。

Okay. Got it. Thank you. And then just last one from me, based on what you said, that non-core asset that you mentioned, is that in the restricted group? And can you give us any sense for order of magnitude of what you expect to sell that for? Is that like a $5 million, $10 million? Or are we talking $100 million or what's your (inaudible) --

好的。知道了。謝謝。然後我的最後一個，根據你所說的，你提到的非核心資產，是在限制組嗎？您能否告訴我們您希望出售的價格的數量級？是不是像 500 萬美元、1000 萬美元？還是我們說的是 1 億美元還是你的？（聽不清楚）——

Yes. So it's -- one, it is in the restricted group. It's not, certainly not material from an EBITDA perspective because as I mentioned, it's pretty much EBITDA neutral for us. And then in terms of top-line contribution order of magnitude, it's kind of in the CAD 10 million plus contribution top-line. So that's what it looks like.

是的。所以它——一，它屬於受限組。從 EBITDA 的角度來看，這當然不是重要的，因為正如我所提到的，它對我們來說幾乎是 EBITDA 中性的。然後就營收貢獻的數量級而言，貢獻營收約為 1,000 萬加元以上。這就是它看起來的樣子。

And then in terms of proceeds, we can't say yet because we don't have anything to share yet, but it's not going to be really material. But any proceeds that we do get from that activity, if we sell it, will come into the restricting group.

然後就收益而言，我們還不能說，因為我們還沒有任何東西可以分享，但它不會是真正重要的。但是，如果我們出售該活動，我們從該活動中獲得的任何收益都將進入限制組。

Okay. Thanks to all for me.

好的。感謝大家為我。

Okay. Thank you.

好的。謝謝。

Thank you. There are no further questions registered at this time. I will turn the call back to Dan Goldberg.

謝謝。目前沒有登記任何其他問題。我會將電話轉回丹·戈德堡。

Okay, operator, thank you very much. And thank you all for joining us this morning. And we look forward to chatting with you again when we release our Q3 numbers. So thank you very much.

好的，接線員，非常感謝您。感謝大家今天早上加入我們。我們期待在發布第三季數據時再次與您交談。非常感謝。

Thank you. The conference has now ended. Please disconnect your line at this time, and we thank you for your participation.

謝謝。會議現已結束。此時請斷開您的線路，我們感謝您的參與。