SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended March 31, 1995
Commission File Number 1-4929
COMSAT CORPORATION
6560 Rock Spring Drive
Bethesda, MD 20817
(301) 214-3000
District of Columbia 52-0781863
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Indicate by check mark whether the Registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding twelve (12) months (or for such
shorter period that the Registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past ninety (90)
days. Yes X No
47,143,000 shares of the Registrant's common stock were outstanding
as of March 31, 1995.
Page 1 of 20 pages - Exhibit Index at page 14
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PART I. FINANCIAL INFORMATION
Item 1. Interim Financial Statements for the Corporation (Unaudited)
COMSAT CORPORATION AND SUBSIDIARIES
Condensed Consolidated Income Statements
(In thousands, except per share amounts)
Quarter Ended March 31,
1995 1994
----------------------
Revenues $ 207,883 $ 200,495
---------- ----------
Operating expenses:
Cost of services 121,213 114,735
Depreciation and amortization 47,378 40,279
Research and development 4,605 3,243
General and administrative 4,930 5,364
---------- ----------
Total operating expenses 178,126 163,621
---------- ----------
Operating income 29,757 36,874
Interest and other income, net 2,029 1,237
Interest expense, net of amounts
capitalized (8,875) (6,152)
---------- ----------
Income before taxes 22,911 31,959
Income tax expense (8,338) (11,778)
---------- ----------
Net income $ 14,573 $ 20,181
========== ==========
Earnings per share $ 0.31 $ 0.43
========== ==========
The accompanying notes are an integral part of these financial statements.
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COMSAT CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
1995 1994
ASSETS -------- -----------
Current assets:
Cash and cash equivalents $ 16,322 $ 18,658
Receivables 216,619 226,189
Inventories 24,380 21,933
Other 30,651 31,460
----------- ----------
Total current assets 287,972 298,240
----------- ----------
Property and equipment (net of
accumulated depreciation of
$1,022,449 in 1995 and $990,596
in 1994) 1,461,337 1,431,066
Investments 79,439 69,541
Goodwill 50,944 46,535
Franchise rights 38,634 39,119
Other assets 98,893 91,491
---------- ----------
Total assets $2,017,219 $1,975,992
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term
obligations $ 7,023 $ 7,115
Commercial paper 141,767 121,356
Accounts payable and accrued
liabilities 114,662 145,893
Due to related parties 6,838 36,750
Other 20,910 5,966
---------- ----------
Total current liabilities 291,200 317,080
---------- ----------
Long-term debt 569,440 515,542
Deferred income taxes and investment
tax credits 122,224 122,798
Accrued postretirement benefit costs 51,555 50,817
Other long-term liabilities 116,067 112,824
---------- ----------
Total liabilities 1,150,486 1,119,061
---------- ----------
Minority interest 29,020 30,015
---------- ----------
Stockholders' equity:
Common stock 314,916 312,143
Retained earnings 537,624 532,229
Treasury stock (11,795) (12,502)
Other (3,032) (4,954)
---------- ----------
Total stockholders' equity 837,713 826,916
Total liabilities and stockholders' ---------- ----------
equity $2,017,219 $1,975,992
========== ==========
The accompanying notes are an integral part of these financial statements.
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COMSAT CORPORATION AND SUBSIDIARIES
Condensed Consolidated Cash Flow Statements
(In thousands)
Quarter Ended March 31,
1995 1994
----------------------
Cash flows from operating activities:
Net income $ 14,573 $ 20,181
Adjustment for depreciation and
amortization 47,378 40,279
Changes in operating assets and
liabilities (28,270) (23,410)
Other (1,703) (6,049)
---------- ----------
Net cash provided by operating
activities 31,978 31,001
---------- ----------
Cash flows from investing activities:
Purchase of property and equipment (86,576) (85,877)
Decrease in INTELSAT ownership 12,022 7,024
Decrease (increase) in Inmarsat
ownership (9,146) 3,031
Investments in unconsolidated
businesses (11,680) (11,562)
Other (862) (6,110)
---------- ----------
Net cash used in investing activities (96,242) (93,494)
---------- ----------
Cash flows from financing activities:
Common stock issued 2,582 1,959
Cash dividends paid (9,178) (7,446)
Proceeds from issuance of long-term
debt 57,136 40,421
Repayment of long-term debt (4,137) (1,796)
Net short-term borrowings 20,412 32,505
Other (4,887) 2,244
---------- ----------
Net cash provided by financing
activities 61,928 67,887
---------- ----------
Net increase (decrease) in cash and cash
equivalents (2,336) 5,394
Cash and cash equivalents, beginning
of period 18,658 16,230
---------- ----------
Cash and cash equivalents, end of period $ 16,322 $ 21,624
========== ==========
The accompanying notes are an integral part of these financial statements.
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COMSAT CORPORATION AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
1. Financial Statement Presentation
These financial statements include the accounts of COMSAT
Corporation and its majority-owned subsidiaries (the "corporation") and
reflect all adjustments that are, in the opinion of management, necessary
to fairly present the results of the periods covered.
2. Merger with Radiation Systems, Inc.
As discussed in Note 2 to the 1994 financial statements, the
corporation consummated its merger with Radiation Systems, Inc. (RSi) in
June 1994. The merger has been accounted for as a pooling of interests.
Accordingly, the first quarter 1994 financial statements included in this
Form 10-Q have been restated to include RSi. Operating results for the
separate companies prior to the merger are as follows:
In thousands, except Quarter Ended
per share amounts March 31, 1994
-------------------- --------------
Revenues:
COMSAT $ 169,529
RSi 30,966
--------------
$ 200,495
==============
Net Income:
COMSAT $ 18,293
RSi 1,888
--------------
$ 20,181
==============
Earnings per share:
Before merger $ 0.45
After merger $ 0.43
3. INTELSAT and Inmarsat Share Changes
The corporation decreased its ownership share of INTELSAT from
20.1% at December 31, 1994 to 19.1% as of March 31, 1995. The corporation
received cash proceeds of $12.0 million and has a $5.4 million receivable
for the balance due.
The corporation increased its ownership share of Inmarsat from
22.4% at December 31, 1994 to 24.1% as of March 31, 1995. The corporation
paid $9.1 million for its increased share in Inmarsat.
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4. Inventories
Inventories, stated at the lower of cost (first-in, first-out) or
market, consist of the following (in thousands):
March 31, 1995 December 31, 1994
-------------- -----------------
Finished goods $ 5,661 $ 5,228
Work in progress 11,375 9,187
Raw materials 7,344 7,518
------------- -------------
Total $ 24,380 $ 21,933
============= =============
5. Investments
In January 1995, the corporation invested $11.4 million in a new
company that will own and operate a satellite system affiliated with
Inmarsat (see Note 8 to the 1994 financial statements). This includes
$9.4 million paid to Inmarsat for the corporation's share of Inmarsat's
investment in the venture.
6. Debt
In February 1995, INTELSAT issued $200.0 million of 8.125% Eurobond
notes due February 28, 2005. Interest is payable annually in arrears. The
corporation has recorded its share of this long-term debt.
The corporation issued two notes during the quarter under its
medium-term note program. A $5.0 million 8.5% note was issued in February
1995 and a $12.0 million 7.92% note was issued in March 1995. These notes
are due in 2007.
7. Litigation
As discussed in Note 9 to the corporation's 1994 financial
statements, the corporation is engaged in an antitrust suit filed by Pan
American Satellite (PanAmSat). Discovery in the suit ended in November
1994; however, PanAmSat has motions pending which, if granted, would result
in additional discovery. In December 1994, the corporation filed a motion
for summary judgment directed to dismissal of all claims in the complaint.
PanAmSat has opposed the motion. In the opinion of management, the claims
are without merit, and the ultimate disposition of this matter will not
have a material effect on the corporation's financial statements.
The corporation is defending a patent and copyright infringement
suit brought by Spectradyne, Inc. against its COMSAT Video Enterprises, Inc.
and On Command Video Corporation subsidiaries as discussed in Note 9 to
the 1994 financial statements. In 1994, a U.S. District Court granted
summary judgment dismissing all of these claims except one copyright issue.
The corporation believes that the suit is without merit and that the ultimate
disposition of this matter will not have a material effect on the
corporation's financial statements.
8. Subsequent Events
In May 1995, the corporation issued a $9.0 million 7.77% note and
a $16.0 million 7.7% note under its medium-term note program. These notes
are due in 2007. The corporation has $26.0 million remaining under its
medium-term note program.
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Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS FOR THE QUARTER
ENDED MARCH 31, 1995
ANALYSIS OF OPERATIONS
Consolidated Operations
Consolidated revenues for the first quarter of 1995 were $207.9
million, an increase of $7.4 million over last year's first quarter. The
International Communications, Mobile Communications and Entertainment
segments all reported solid growth in revenues whereas Technology Services
segment revenues fell from last year's level.
Operating income decreased $7.1 million from the first quarter of
1994. The Mobile Communications segment reported strong growth in operating
income which was offset by declines in operating results for the
Entertainment and Technology Services segments. Operating income for the
International Communications segment was the same as last year's first
quarter.
Interest and other income increased $0.8 million in the first quarter
of 1995, as compared to the same period last year. This year's first
quarter includes a $2.2 million gain from the sale of the corporation's
interest in a communications venture in Chile offset by a $0.9 million
accrual for a judgment in a lawsuit brought by a former employee of a
subsidiary of the corporation.
Net interest expense increased $2.7 million over last year's first
quarter. Interest expense increased 24% due to higher borrowings and
interest rates. The corporation's borrowings have increased to meet
capital expenditure and investment requirements. The weighted average
interest rate on commercial paper has almost doubled since the first
quarter of 1994 to 6.09% at March 31, 1995. Interest capitalized, primarily
on INTELSAT and Inmarsat satellite construction projects, remained relatively
even with last year's first quarter.
Segment Operating Results
As discussed in Note 15 to the 1994 financial statements, the
corporation reports operating results in four segments: International
Communications, Mobile Communications, Entertainment and Technology
Services. The method of allocating indirect corporate costs was changed
in 1995. Segment operating results for 1994 have been restated for this
change.
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Results by Segment (in millions):
Quarter Ended March 31,
1995 1994
----------------------
REVENUES
International Communications $ 70.6 $ 63.9
Mobile Communications 47.1 44.0
Entertainment 47.4 40.4
Technology Services 46.8 55.3
Eliminations and other (4.0) (3.1)
--------- ---------
Total revenues $ 207.9 $ 200.5
========= =========
OPERATING INCOME (LOSS)
International Communications $ 24.2 $ 24.2
Mobile Communications 12.6 11.5
Entertainment (3.2) 2.6
Technology Services 2.6 4.8
--------- ---------
Total segment operating income 36.2 43.1
Other corporate (6.4) (6.2)
--------- ---------
Total operating income $ 29.8 $ 36.9
========= =========
International Communications
The International Communications segment includes the results of
COMSAT World Systems (CWS) and COMSAT International Ventures (CIV). CWS's
first quarter revenues increased $1.0 million over last year's first quarter.
This was primarily attributable to growth in digital circuits and broadcast
leases which more than offset rate reductions under long-term agreements.
CWS also had higher revenues this year from additional VSAT leases and cable
restorations. CIV's revenues grew $5.8 million over the first quarter of
1994. Almost half of this growth came from improved results for the
corporation's subsidiary in Argentina. The balance of the revenue
improvement is attributable to two ventures which were not consolidated in
last year's first quarter.
Operating income for the segment was the same as last year's first
quarter. CWS's operating income increased $2.0 million due to the increase
in revenues and a decline in operating expenses offset somewhat by higher
depreciation. The decline in operating expenses was due to a reduction in
staff late last year and other cost containment measures. The increase in
depreciation was due to three new INTELSAT satellites that have been launched
and placed in service since the first quarter of 1994. CIV's operating
income fell $2.0 million primarily due to the operating losses for the newly
consolidated ventures.
Mobile Communications
Mobile Communications segment first quarter revenues increased $3.1
million over last year's first quarter. This is principally driven by
increased leased circuits and continued increases in digital terminal use.
Telephone traffic was up 8% over the first quarter of 1994. More than 5,600
digital standard M and B terminals have now been commissioned. Additionally,
revenues from service contracts with IDB and AMSC increased over last year.
Page 8
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First quarter operating income increased $1.1 million over last year's
first quarter. This was primarily attributable to the revenue growth offset
by the related increase in cost of services in addition to higher
depreciation expense related to upgrades to earth stations and a higher
share of Inmarsat's depreciation expense.
Entertainment
First quarter revenues for the Entertainment segment increased $7.0
million as compared to the same quarter last year. This is primarily
attributable to increased revenues from pay-per-view movies. The
corporation's On Command Video business (OCV) increased the number of hotel
rooms installed with its system by 140,000 rooms since March 31, 1994. The
corporation ended the quarter with 481,000 rooms installed with the OCV and
Satellite Cinema systems. Revenues for the Denver Nuggets increased slightly
over last year's first quarter. Revenues from the NBC television
distribution contract dropped by $2.9 million, as expected, as the contract
has entered an option period.
Operating results for this segment declined $5.8 million as compared
to the first quarter of 1994. This is attributable to the drop in revenues
from the NBC television distribution contract, increased depreciation from
additional OCV rooms and $2.1 million of overhead costs for Beacon
Communications Corp. (Beacon). The corporation acquired Beacon in
December 1994 as discussed in Note 6 to the 1994 financial statements.
Technology Services
Revenues for the Technology Services segment declined $8.5 million
as compared to the first quarter of 1994. Revenues increased from satellite
services for classified U.S. Government users and from earth station
component sales. Additionally, in January 1995, the corporation acquired a
manufacturer of VSAT equipment which contributed approximately $0.5 million
to revenues this quarter. These revenue improvements were exceeded by the
lack of recurring revenues from several large international and U.S.
Government projects which were completed in 1994.
Operating income for the quarter was down $2.2 million versus the
first quarter last year. This decline was primarily due to lower revenues
and to new product development costs associated with the newly acquired VSAT
business. Revenues and operating income were lower than expected due to the
cancellation late last year of an $18 million contract for satellite earth
stations in Kuwait.
Outlook
In the International segment, the corporation expects that the
results for CWS will remain strong for the remainder of 1995 although
quarterly results will be slightly less than this year's first quarter.
CIV will continue to seek new investment opportunities in emerging
countries and to utilize the corporation's expertise to market a variety
of products and services. CIV will also concentrate on the growth of its
existing ventures and anticipates continuing improvement in revenues and
operating results from these businesses.
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The corporation expects to continue to face competition in its
Mobile Communications business, however, the continued commissioning of
digital terminals should sustain the growth in digital traffic. At the same
time, the corporation is developing new products and services.
The results for the Entertainment segment in the second or third
quarter this year are expected to include the recognition of the
corporation's share of NBA expansion fees. These fees are expected to
total more than $9 million. However, collection of a portion of these fees
may be delayed until a collective bargaining agreement between the NBA and
players is signed. OCV continues to install its systems in hotel rooms at
a rapid pace. This will boost revenues and increase depreciation expense
for the remainder of the year. Beacon is expected to release a new film in
the third quarter and possibly another film in the fourth quarter. The
corporation is continuing with plans for a new arena in Denver and
anticipates breaking ground this year.
In the Technology Services segment, the corporation was successful
in winning new contracts in the first quarter this year and expects to
continue to build its contract backlog throughout the rest of the year.
Revenues and operating results are expected to improve as these new
contracts begin.
LIQUIDITY AND CAPITAL RESOURCES
The primary sources of cash in the first quarter of 1995 were
operations, borrowings and proceeds from the decrease in INTELSAT ownership.
Cash was expended primarily for property and equipment, investments in
businesses, acquisition of additional Inmarsat ownership, repayment of
long-term debt and quarterly dividends.
The corporation's working capital deficit decreased $15.6 million
from December 31, 1994 to March 31, 1995. This is attributable to a
$25.9 million decrease in current liabilities offset by a $10.3 million
decrease in current assets. The decrease in current assets is primarily
due to collections of receivables. The decrease in current liabilities
is primarily due to decreases in accounts payable and accrued liabilities
and amounts due to related parties partially offset by increases in
commercial paper borrowings and other current liabilities. Accounts payable
and accrued liabilities decreased primarily because of a reduction in
deferred revenues related to the Denver Nuggets. Receipts for season
tickets and sponsorship agreements are recorded as deferred revenues and
recognized as games are played. Additionally, accrued liabilities at
December 31, 1994 included an accrual for a $9.1 million payment in
February 1995 to terminate the corporation's lease on its former headquarters
building in Washington, D.C. Amounts due related parties decreased $29.9
million primarily due to a larger than normal payment to Inmarsat in the
first quarter for the corporation's share of satellite utilization costs.
The increase in other current liabilities is primarily due to income taxes
accrued for the first quarter.
In February 1995, INTELSAT issued $200.0 million of 8.125% notes.
The corporation has recorded its share of these notes as long-term debt.
The corporation received approximately $20.1 million of its share of the
proceeds and used this amount to repay commercial paper. The balance of
the proceeds were retained by INTELSAT for the corporation's share of
satellite construction costs.
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The corporation has access to short- and long-term financing at
favorable rates. The corporation's borrowing activities, as regulated by
the Federal Communications Commission, allow long-term borrowings up to 45%
of total capital and $200 million of short-term debt. As of March 31, 1995,
the corporation had $141.8 million in commercial paper borrowings under a
$200 million commercial paper program.
As discussed in Note 7 to the 1994 financial statements, the
corporation has a $100 million "medium-term note program." The corporation
issued $17.0 million of notes under this program during the first quarter of
1995, and another $25.0 million in May 1995. The proceeds of these notes
have been used to repay commercial paper. The corporation has $26.0 million
remaining which may be issued under this program.
The corporation plans to issue up to $150 million of long-term
securities in the second or third quarter of 1995. The proceeds would be
used primarily to repay commercial paper borrowings.
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Part II
OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
See Note 7 on page 6 of this Form 10-Q incorporated herein
by reference.
Item 2. Change in Securities
--------------------
None.
Item 3. Defaults Upon Senior Securities
-------------------------------
None.
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
None.
Item 5. Other Information
-----------------
None.
Item 6. (a) Exhibits
--------
No. 10 - Material Contracts
a. Agreement dated November 30, 1993, between Registrant
and Sprint Communications Company L.P. relating to
space segment. (Incorporated by reference to Exhibit
10(ee) to Registrant's Report on Form 10-K for the fiscal
year ended December 31, 1993.)
(i) Amendment to Agreement, dated April 1995.
No. 11 - Computation of Earnings Per Share
(b) Reports on Form 8-K
-------------------
None.
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SIGNATURES
Pursuant to the requirements on the Securities and Exchange
Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
COMSAT Corporation
By /s/ Allen E. Flower
-------------------
Allen E. Flower
Controller
Date: May 15, 1995
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EXHIBIT INDEX
Sequential
Exhibit No. Description Page Number
- ----------- ----------- -----------
10(a) Agreement dated November 30, 1993, between
Registrant and Sprint Communications Company
L.P. relating to space segment. (Incorporated by
reference to Exhibit 10(ee) to Registrant's Report
on Form 10-K for the fiscal year ended December
31, 1993.)
(i) Amendment to Agreement, dated April 1995 15
11 Computation of Earnings Per Share 20
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Exhibit 10(a)(i)
AMENDMENT TO AGREEMENT
This AMENDMENT TO AGREEMENT is made by and between Sprint
Communications Company L.P. ("SPRINT") and COMSAT Corporation
("COMSAT").
WHEREAS, SPRINT and COMSAT entered into an Agreement on
November 30, 1993 for the provision of telecommunications
services (the "1993 Agreement"), and
WHEREAS, the 1993 Agreement was submitted to the Federal
Communications Commission ("FCC") pursuant to Section 211 of the
Communications Act; and
WHEREAS, the Parties have decided to amend the 1993
Agreement in order to facilitate COMSAT's provision of additional
telecommunications services to SPRINT;
NOW, THEREFORE, in consideration of and in reliance upon the
mutual promises set forth below, the Parties hereby amend the
1993 Agreement as follows:
1. Article III of the Agreement, entitled "Definitions" is
amended by revising definition 3, "Bulk Offering," as follows:
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3. Bulk Offering. The offering by COMSAT to SPRINT
of one 36 MHz bandwidth allotment and one 18 MHz
bandwidth allotment subject to the rates, terms
and conditions specified in this Agreement, as
amended.
2. Article IV of the Agreement, entitled "Bulk Offering,"
is amended by adding the following new paragraphs:
M. In addition to the 36 MHz allotment described in
paragraph A of this Article, COMSAT agrees to provide to
SPRINT, and SPRINT agrees to lease from COMSAT for a 10-year
term, one (1) 18 MHz bandwidth allotment
[Redacted]
- Confidential Treatment -
Confidential Portion
Filed Separately with the SEC
N. COMSAT's rate for the 18 MHz allotment described
in paragraph M of this Article shall be $126,466 per month.
SPRINT hereby agrees that it will not cancel the 18 MHz
allotment described in paragraph M until at least five (5)
years after the operational start date of the lease. After
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five (5) years, COMSAT's charge for early termination of
this allotment shall be a flat fee of 270 x $6,880, plus 45%
of the balance due at the time of early termination.
O. The 18 MHz allotment described in paragraph M of
this Article shall be non-preemptible. In case of space
segment failure, this allotment shall be restored in
accordance with the procedures set forth in INTELSAT SSOG
103, Section 6, as may be amended from time to time. This
allotment may be used for any type of traffic, including
both public-switched and private line traffic and both
analog and digital traffic, provided, however, that (1)
INTELSAT's technical lease definitions, as set forth in the
IESS documents that COMSAT routinely provides to SPRINT,
shall apply to the use of this allotment, and (2) COMSAT and
INTELSAT must approve transmission plans for each circuit in
the allotment in advance of circuit activation; but such
approval shall not be unreasonably withheld or delayed. To
the extent that SPRINT elects to use this allotment for
digital public-switched traffic, it may place up to 120 of
its existing 7-year or 10-year Additional Circuits in the
allotment during the period ending six (6) months from
August 1, 1995, consistent with the terms and conditions set
forth in paragraph C of this Article.
P. The Parties recognize that, during the lease term
of the 18 MHz allotment described in paragraph M, the
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particular satellites listed in paragraph M may be replaced
by other INTELSAT satellites. In that case, a transponder
of different connectivity may be substituted for the
replaced transponder under the same terms and conditions
upon mutual agreement of the Parties.
Q. The Parties agree that the rates, early
termination charges, and other terms and conditions
specified in paragraphs M, N, O, and P of this Article shall
supersede any conflicting provisions in COMSAT World Systems
Tariff F.C.C. No. 1. All other terms and conditions for the
circuits contained in the 18 MHz allotment described in
paragraph M of this Article shall be the same as those
specified in COMSAT World Systems Tariff F.C.C. No. 1 as of
the effective date of this Agreement, and those tariff
provisions are hereby incorporated into this Agreement.
3. All other provisions of the 1993 Agreement shall be
interpreted in a manner consistent with this Amendment, but
otherwise shall remain unchanged and shall continue to have full
force and effect.
4. This Amendment to Agreement shall become effective upon
execution by authorized representatives of both Parties, and
shall be submitted to the FCC pursuant to Section 211 of the
Communications Act.
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IN WITNESS WHEREOF, each of the Parties hereto has executed
this Amendment to Agreement.
SPRINT COMMUNICATIONS COMSAT CORPORATION
COMPANY L.P.
By: /s/ Leslie R. Karr By: /s/ John H. Mattingly
------------------ ---------------------
Title: Director, SI-NDE, EMEA Title: VP and General Manager
Date: 7 April 1995 Date: 14 April 1995
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Exhibit 11
COMSAT CORPORATION AND SUBSIDIARIES
Computation of Earnings Per Share
(In thousands, except per share amounts)
Quarter Ended March 31,
1995 1994
----------------------
PRIMARY
- -------
Earnings $ 14,573 $ 20,181
========== ==========
Shares:
Weighted average number of common
shares outstanding 46,989 46,408
Add shares issuable from assumed
exercise of options 668 809
---------- ----------
Weighted average shares 47,657 47,217
========== ==========
Primary earnings per share $ 0.31 $ 0.43
========== ==========
ASSUMING FULL DILUTION
- ----------------------
Earnings $ 14,573 $ 20,181
========== ==========
Shares:
Weighted average number of common
shares outstanding 46,989 46,408
Add shares issuable from assumed
exercise of options 668 821
---------- ----------
Weighted average shares 47,657 47,229
========== ==========
Fully diluted earnings per share $ 0.31 $ 0.43
========== ==========
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