IRDM - Iridium Communications Inc. (IRDM) Q4 2023 Earnings Call Transcript

2024-02-15 12:29:07 ET

Iridium Communications, Inc. (IRDM)

Q4 2023 Earnings Conference Call

February 15, 2024, 8:30 am ET

Company Participants

Ken Levy - VP, IR

Matt Desch - CEO

Tom Fitzpatrick - CFO

Conference Call Participants

Ric Prentiss - Raymond James

Simon Flannery - Morgan Stanley

Walter Piecyk - LightShed

Edison Yu - Deutsche Bank

Chris Quilty - Quilty Space

Louie DiPalma - William Blair

Hamed Khorsand - BWS Financial

Presentation

Operator

Good morning and welcome to the Iridium Fourth Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. Please note that this event is being recorded.

I would now like to turn the conference over to Ken Levy, Vice President of Investor Relations. Please go ahead.

Ken Levy

Thanks, Megan. Good morning and welcome to Iridium's Fourth Quarter 2023 Earnings Call. Joining me on this morning's call are CEO, Matt Desch; and our CFO, Tom Fitzpatrick. Today's call will begin with a discussion of our fourth quarter results followed by Q&A. I trust you've had the opportunity to review this morning's earnings release, which is available on 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 facts 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. Any forward-looking statements 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, 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 the Investor Relations section of our website for further explanation of these non-GAAP financial measures as well as a reconciliation to the most directly comparable GAAP measures.

With that, let me turn things over to Matt.

Matt Desch

Thanks, Ken. Good morning, everyone.

As you saw from our release this morning, we finished out 2023 very well. Service revenue and operational EBITDA both were strong, and we generated more than $300 million in pro forma free cash flow for the full year....

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