# SDA - SpeedCast International



## System (11 August 2014)

SpeedCast International is a leading global network solutions provider, enabling critical communications on land and at sea.

Providing high-quality managed network services in over 60 countries, SpeedCast leverages the latest satellite technologies for the provisioning of reliable and efficient network services to key industries such as Cellular, Maritime, Oil & Gas, Mining, Government and more…

http://www.speedcast.com


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## greggles (28 June 2018)

SpeedCast International closed up 3.49% at $6.23 today to make a new 12 month high. They've almost doubled in price in the last 10 months. A solid little performer flying under the radar.







Here's a screenshot from their FY2017 Financial Results for those unfamiliar with them.


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## So_Cynical (29 June 2018)

greggles said:


> A solid little performer flying under the radar.




They were flying under the radar in August when i added SDA to a watch list at $3.40 ~ didn't pull the trigger though, cant buy everything.


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## peter2 (28 August 2018)

Wow, hammered today after half year report. Results seemed OK to me, other than a poor performance in energy platforms (oil rig services). Expanding business with another buy-out of complementary company. I'll be putting this on my reversal watch-list, but I expect there'll be a delay before I see a setup.




ps: I stop whinging about not buying the BO at 6.20 in July 18.


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## McLovin (28 August 2018)

My five second look. I've never heard of this company. Balance sheet already fairly stretched. They've announced a big acquisition that will be funded completely by yet more debt. Looks as though they've downgraded FY18 results.

Pushing out expected recovery in energy capex is a theme amongst these o&g service companies.


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## bigdog (28 August 2018)

*Motley Fool provided writeup of todays actions*
https://www.fool.com.au/2018/08/28/...-asxsda-shares-smashed-on-guidance-downgrade/

report includes:

Here’s how Speedcast performed compared to the prior corresponding period:


Revenue grew 24% to US$304.9 million.
Underlying EBITDA increased 14% to US$60.4 million.
EBITDA margin narrowed by 180 basis points to 19.8%.
Underlying NPATA grew 37% to US$21.1 million.
Net debt increased to US$430 million.
Fully franked interim dividend of 240 Australian cents.
Outlook: Underlying FY 2018 EBITDA to be in the range of US$135 million to US$145 million.
Overall, I thought this was a solid first half performance from Speedcast with three out of its four divisions delivering robust growth compared to the prior corresponding period.

*Outlook.*

While the Energy division’s performance was disappointing, it was the company’s outlook that sent shareholders to the exits in a hurry today.
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Report did not address Speedcast to Acquire Globecomm for US$135 million.  To be funded by more bank debt.


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## McLovin (28 August 2018)

One other thing, they're quoting "less than 5x EBITDA post synergies". By my calcs, "synergies" make up about 50% of the anticipated EBITDA. Hmm...


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## aus_trader (28 August 2018)

Phew, what a drop !
Yesterday it was NTC today it's SDA.

I wonder if there is a decisive capital shift away from wireless Telecom space by a large player. Maybe they are using the results reporting day as a means to dump so there is less likely chance they'd be exposed as the culprit due to an asx 'please explain' price enquiry.


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## notting (28 August 2018)

They confirmed in May they were comfortable with consensus estimates earnings before (EBITDA) of about $US155 million.
OH NO!!! But today it gave guidance of full-year EBITDA of between $135 million and $145 million,  Hence Market meltdown!!
Loss of confidence in management honesty possibly the big dipper as well as big disappointment in first-half earnings which are 17 per cent down from energy customers due to fewer off-shore oil rigs and delays in oil projects.
It's now an undervalued high growth stock
Worth the turn around play especially given oil is looking better in the last 6 months!!


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## aus_trader (28 August 2018)

notting said:


> They confirmed in May they were comfortable with consensus estimates earnings before (EBITDA) of about $US155 million.
> OH NO!!! But today it gave guidance of full-year EBITDA of between $135 million and $145 million,  Hence Market meltdown!!
> Loss of confidence in management honesty possibly the big dipper as well as big disappointment in first-half earnings which are 17 per cent down from energy customers due to fewer off-shore oil rigs and delays in oil projects.
> It's now an undervalued high growth stock
> Worth the turn around play especially given oil is looking better in the last 6 months!!



Yes, interesting that results have not been far off and certainly not in negative territory.
But the current theme seems to be anything short seems to be kicked in the nuts...

Another one I saw today was Axsesstoday Ltd (*AXL*). Looks like a beautiful result on paper but two days of heavy falls in SP !


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## bigdog (30 August 2018)

The *Speedcast International Ltd* (ASX: SDA) share price has rebounded almost 6% higher to $4.20. 

News that three of the company’s directors have been buying shares on-market over the last 24 hours appears to have been the driver of this gain. Prior to today Speedcast’s shares were down over 40% this week after its shares were sold off due to management cutting its full year guidance.


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## tinhat (30 August 2018)

I'm seeing value opportunities opening up all over the place this reporting season. I've picked up some ECX, IRI and CL1 recently and today I bought some SDA @ $4.20. Alas, I have broken my rule once more on not catching falling knives! I would not be surprised if it got back down under $4 and if it does I will wait for a confirmation that the bottom is in on the chart and buy some more.

I'm not surprised the market punished them missing their guidance. This is a highly leveraged company with a large debt burden. I understand management expects debt/EBITDA to reach 3.3x this financial year. Using debt to fund growth through acquisition always carries considerable execution risk.


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## bigdog (27 September 2018)

The share price has increase $0.22 today at 11:30 AM

*The share price crashed on 28-08-2018 after half yearly report issued*
28/08/2018 close 4.200 volume 26,096,525
27/08/2018 close 6.710 volume 918,242

Speedcast International ((SDA)) is being punished severely by the market after delivering a downgrade to 2018 earnings estimates, as price pressures remain evident across the satellite services industry. The main driver of weakness was the energy division as an expected turnaround did not materialise.

Macquarie notes a material deterioration in market conditions, given the company stated a year ago that it expected an upswing in 12-18 months. The broker remains cautious, given the high hurdles for offshore developments.

*The only news today was*

*SDA 27/09/2018 8:25:39 AM Incremental Term Loan Pricing Announcement*

Speedcast International Limited Announces  Pricing of $175 million Incremental Term Loan

Sydney, Australia, 27 September 2018 – Speedcast International Limited (ASX: SDA) (“Speedcast”), the world’s most trusted provider of remote communication and IT solutions, today announced it has successfully priced the US$175 million incremental term loan add-on (the “Incremental Term Loan”) to its existing US$425 million US Term Loan B facility (due 2025) (the “Existing Term Loan”). The Incremental Term Loan and the Existing Term Loan will have the same terms, including interest margin, and will be priced at LIBOR plus 2.75% p.a., which is a 0.25% p.a. increase on the current interest margin under the Existing Term Loan.


*On 20/09/2018 5:16:42 PM there was ASX announcement "Change in substantial holding"

UBS Group AG and its related bodies corporate increased there shareholding which could be encouraging*


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## Miner (15 January 2019)

SDA followers
How this is looking now after dust settled ?
Still high PE but relatively much lower than other peers.
DNH
https://www.asx.com.au/asx/share-price-research/company/SDA


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## bigdog (12 February 2019)

The best performer on the ASX 200 on Tuesday has been the Speedcast International Ltd (ASX: SDA) share price which is up 4.5% on the back of no news.


Currently:


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## bigdog (2 July 2019)

Reason for big drop is ASX announcement today


2/07/2019 9:06:47 AM Speedcast updates expectations for 1H2019 and FY2019
https://www.asx.com.au/asxpdf/20190702/pdf/4469cg4jflvnlp.pdf*
*
Motley reports
https://www.fool.com.au/2019/07/02/speedcast-shares-sunk-by-profit-downgrade/*

Speedcast shares sunk by profit downgrade
Tom Richardson | July 2, 2019
*
The Speedcast International Ltd (ASX: SDA) share price could tumble today after the satellite communications business told investors it now expects adjusted calendar year 2019 EBITDA in the region of US$140 million to US$150 million, compared to prior guidance between $160 million to $171 million. 

The company also warned it expects first half 2019 adjusted EBITDA to hit between US$60 million to US$64 million, which means it will need to deliver a far stronger second half to the year to even meet its downgraded guidance. 

The company blamed the result on “evolving market conditions” and more “recent commercial developments”. Specifically it blamed delays in NBN revenues, weak market conditions in enterprise and emerging markets (EEM), and “technical difficulties causing further delays in the ramp up of the Carnival contract”.

Speedcast joins a group of tech oriented companies in the naughty corner after delivering earnings downgrades this week, with others including dark fibre business* Superloop Ltd* (ASX: SLC) and software business *Adacel Technologies Ltd* (ASX: ADA).


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## bigdog (5 July 2019)

Motley reports
https://www.fool.com.au/2019/07/04/the-embarrassing-bounce-in-the-speedcast-share-price/

*The embarrassing bounce in the Speedcast share price*
Brendon Lau | July 4, 2019 

The embattled *Speedcast International Ltd* (ASX: SDA) share price is staging a remarkable turnaround today that is likely to earn the company a speeding ticket from the share market operator *ASX Ltd* (ASX: ASX).

The Speedcast share price surged 10% to $1.89 and is the best performer on the *S&P/ASX 200* ) on Thursday

There is no new ASX announcement from Speedcast to explain sharp turnaround after the stock suffered huge losses in the previous two days that was triggered by a profit downgrade.

*The good news Speedcast forgot to tell the ASX*

The interesting thing is that the downgrade was released to the ASX but today’s share price resurrection on the back of a US contract win was not!

However, management thought it fit to issue a press release on the contract win instead and posted it on the Speedcast website. Whoever’s responsible for the satellite services group’s investor relations should be taken out back.

The press release explained that Speedcast’s subsidiary, Speedcast Government, is one of multiple parties that was awarded a US$3 billion five-year contract with the U.S. Department of Homeland Security (DHS).

“Speedcast Government is honoured to have been selected as an awardee under the TacCom II vehicle. We are committed to bringing leading-edge technologies, equipment, network and technical services to support DHS and its end users on this important program,” said Moe Abutaleb, CEO of Speedcast Government.

*Why a US$3 billion win may not be so exciting*

There’re no details on what slice of the US$3 billion pie Speedcast was awarded and maybe the amount is immaterial – hence the company’s decision not to issue an ASX announcement.

Either way, it’s a bad look for Speedcast, which on Tuesday cut its full year underlying earnings before interest, tax, depreciation and amortisation (EBITDA) guidance to between US$140 million and US$150 million from its earlier forecast of US$160 million to US$171 million.

The downgrade was due in part to weaker than expected performance from its recently acquired Globecomm business and poor performance from the commercial maritime and Enterprise and Emerging Markets (EEM) markets.

The good news is that there are better opportunities on the ASX for FY20. The experts at the Motley Fool believe that this outperforming stock will continue to charge ahead over the coming year – if not longer.


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## Miner (5 July 2019)

Good morning All
SDA after a good bounce on 4 July (a dead cat bounce ??) provided a disclosure today about its wining of US contract. Still they have not told what percentage or what value of contract out of US $3 B they have won. Market will now smell rotten fish and unfortunately for the holders, will punish this morning (probably)
https://www.asx.com.au/asx/share-price-research/company/SDA
https://www.asx.com.au/asxpdf/20190705/pdf/446dk2qq2k874m.pdf

Goldman took the opportunity to be a substantial holder by entering into buy scenario on 2nd July .
https://www.asx.com.au/asxpdf/20190705/pdf/446dk6g8zchtvw.pdf. They probably did not realise after 40% slump, SDA will go down another 16% on next day 3 July. It could be they would have bought into again on 3 July. We will learn that only on Monday 8 July announcement .
So at the moment Goldman is  a looser on a short term basis unless market picks up today again (unlikely) .
My guess, is Goldman  will just exit for a profit very soon.
https://www.asx.com.au/asxpdf/20190704/pdf/446d7q9pfx8nr7.pdf (IFL bought into - short term opportunity like Goldman) ?
https://www.asx.com.au/asxpdf/20190704/pdf/446cwhfgxdpjbf.pdf (Indus is a  US investor so why they sold out ??)
https://www.asx.com.au/asxpdf/20190704/pdf/446cwhfgxdpjbf.pdf 
Challenger sold out on 2nd July itself  https://www.asx.com.au/asxpdf/20190704/pdf/446d99hyj3qm1x.pdf (Panic sale)

04/07/2019 1.890 9.884% 1.965 1.665 25,200,112
03/07/2019 1.720 -16.505% 2.050 1.720 25,371,589
02/07/2019 2.060 -40.805% 2.400 2.040 25,572,112
01/07/2019 3.480 0% 3.635 3.480 682,232
28/06/2019 3.480 3.571% 3.530 3.395 1,005,138


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## Miner (5 July 2019)

As predicted IFL bought more to increase its holding on 3rd July by another 2% of the total stock,  when SDA had another deep.
Please do not question if they are any different than Joe Blog in the market or prudent researcher to put money. It is not their money any way  .
What they would have today, with after a little hike, SDA dipped down by another 4% ?
https://www.asx.com.au/asxpdf/20190705/pdf/446f8ft44q0qc0.pdf


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## Miner (26 July 2019)

How interesting SDA performance. Sorry, but could not see any news or update but volume of transaction is more than 10 millions with more than 8% fall. SDA has fallen more often than rose. Whats wrong with this company ? It appointed an investor relation expert whom market did not like or what ?
https://www.asx.com.au/asx/share-price-research/company/SDA
https://www.asx.com.au/asxpdf/20190726/pdf/446wx4vjnlmvzm.pdf


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## greggles (28 August 2019)

Miner said:


> SDA has fallen more often than rose. Whats wrong with this company ?




The primary concern at the moment seems to be the auditor's remarks in yesterday's 1H 2019 results that there is uncertainty of SDA's ability to continue as a going concern.

This from the SMH today:


> Shares in SpeedCast International are down a further 21 per cent today, now hitting 89¢. *Sydney Morning Herald reporter Colin Kruger *notes auditors PWC mentioned a *material uncertainty over SpeedCast's ability to continue as a going concern* in the half-year accounts, due to the $180.3 million loss, the $6.8 million cash outflows, and $654.6 million debt load.
> 
> "The Group's ability to continue as a going concern is dependent on the group having a continued appropriate level of funding from its existing lenders and creditors and/or other sources for at least the next 12 months from the date of this report," the auditors wrote.
> 
> ...




https://www.smh.com.au/business/markets/bellamys-drops-11pc-on-weak-results-20190828-h1hhzc.html


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## bigdog (28 August 2019)

In the first half of FY 2019 Speedcast posted a statutory loss after tax of $175.5 million. This was driven largely by a $154.8 million negative impact from the impairment of goodwill relating to the performance of its Non-Government operating segment. Its debt also increased to over $600 million, which is now almost triple its market capitalisation.

Very sad company where had a 12 high month of $5.13 and today low of $0.755


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## bigdog (1 January 2020)

A roughie and my top pick is SDA Speedcast for "Tipping Competition for Full CY 2020"

Speedcast was touted as an undiscovered growth stock last year. Analysts cited the company as a new age telco leading the way in satellite communication. The company’s acquisitions, contract wins, and cash flows supported a strong outlook.

The share price has plunged an incredible 40.8% in one day on the ASX to just $2.06 per share after the company updated its earnings guidance for 1H 2019 and FY 2019. The company cited several reasons for the downgrade, including; weak market conditions, expected revenue delays and lower expected earnings from its recent Globecomm acquisition.

The Speedcast share price opened the year at $2.90, had low of $0.68 and finished 2019 at $0.94 down $3.21 or 77% on the 12 month high $4.15 in April 2019.

The share price has been creeping up in the past two weeks from $0.70 to $0.94

Hopefully some good news will be presented in the August 2020 1H results!!






612


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## Sdajii (2 January 2020)

SDA was my top pick for the competition too. I honestly didn't have all that much to say about it and I've just seen bigdog has already said more than I could. Basically I chose it because it has been smashed and I see the potential for a recovery. I probably wouldn't actually want to have my own money on it right now, it seems very risky, but I'm not risking an real money and am betting on the market having been scared into overselling, and it is now recovering, potentially with a long way to go. The chart above sums it up pretty nicely. If it does sort out its dramas, keep its head above water, and be in situation normal before the end of the year it seems possible for 100%+ gains.


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## bigdog (3 February 2020)

ASX announcement 3/02/2020 9:47:50 Trading Halt

Any guess's what the problem may be (accounts/auditors)???






Share price increases for early January was encouraging!






942


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## bigdog (4 February 2020)

Two late ASX announcements yesterday




	

		
			
		

		
	
 (uplaoded)






Still flogging "the world’s most trusted provider of remote communication" !!!!

The group’s share price is down 16.85% in 2020 alone and down 88.19% since late August 2018.

SDA is one of my tips included in 2020 year tipping comp!


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## Dona Ferentes (4 February 2020)

Looking for new CEO; new regime, write-downs, asset sales, the usual.


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## bigdog (5 February 2020)

One of my four tips in Year 2020 tipping and not looking good!!

ASX announcement today requesting Voluntary Suspension from Official Quotation in relation to financial results.  Sounds like time needed to convince the auditors!

February 10!!

05/02/2020  9:04 AM   Voluntary Suspension from Official Quotation






019


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## bigdog (10 February 2020)

Announced today
10/02/2020 9:39:52 AM  *Extension of voluntary extension
*
perhaps audit issues!

tradinghaltsmelbourne@asx.com.au

Request for Extension of Suspension from Official Quotation (Speedcast International Limited)
Pursuant to ASX Listing Rule 17.2, Speedcast International Limited (Speedcast) requests an extension of the suspension from official quotation in its ordinary shares (ASX Code: SDA).

For the purpose of ASX Listing Rule 17.2, Speedcast provides the following information:
(a) On 5 February 2020, Speedcast requested the initial suspension pending an announcement by Speedcast in relation to its financial results for the year ended 31 December 2019.

(b) Speedcast requests that the suspension remain in place until the earlier of Speedcast making the announcement referred to in paragraph (a) and the commencement of trading on 27 February 2020.

(c) Speedcast expects that the suspension will be ended by it making a further announcement.

(d) Speedcast is not aware of any reason why the extension of the suspension should not be granted or of any other information necessary to inform the market about the suspension.


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## bigdog (27 February 2020)

Still having problems with their auditors!!

ASX announcement 27/02/2020 10:09:52 Request for Extension of Suspension from Official Quotation

Request for Extension of Suspension from Official Quotation (Speedcast International Limited)
Pursuant to ASX Listing Rule 17.2, Speedcast International Limited (Speedcast) requests an extension of the suspension from official quotation in its ordinary shares (ASX Code: SDA).

For the purpose of ASX Listing Rule 17.2, Speedcast provides the following information:

(a) On 5 February 2020, Speedcast requested the initial suspension pending an announcement by Speedcast in relation to its financial results for the year ended 31 December 2019, and on 10 February 2020, requested a further extension. Speedcast notes that the process of finalising its Preliminary Financial Report and Appendix 4E for the year ended 31 December 2019 (Results Update) will be delayed and the Results Update is expected to be released by, or before, 13 March 2020.

(b) Speedcast requests that the suspension remain in place until the earlier of Speedcast making the announcement referred to in paragraph (a) and the commencement of trading on 13 March 2020.

(c) Speedcast expects that the suspension will be ended by it making a further announcement.

(d) Speedcast is not aware of any reason why the extension of the suspension should not be granted or of any other information necessary to inform the market about the suspension.

288


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## bigdog (24 April 2020)

*Sdaji* SDA was one of our 2020 year share tips!!

ASX announcement 23/04/2020 6:03:41 PM Speedcast to recapitalise through chapter 11 (uploaded below)






*Speedcast files for Chapter 11 bankruptcy *
by Caleb Henry — April 23, 2020
https://spacenews.com/speedcast-files-for-chapter-11-bankruptcy/

Speedcast said it hopes to complete restructuring by the end of August

MT LAUREL, New Jersey — Speedcast International, a network services provider leasing capacity on more than 80 satellites, filed for Chapter 11 bankruptcy protection April 23, citing weakness in the cruise and oil markets.

The Australian company, which ended 2019 with $669 million in debt, said customer struggles, amplified by the coronavirus’ impact on the cruise sector, made it “impossible” to raise much-needed equity.

Speedcast filed with the U.S. Bankruptcy Court for the Southern District of Texas in hopes of completing its restructuring by the end of August. The company said it has up to $1 billion in assets and liabilities.

Speedcast said it has obtained commitments for up to $90 million debtor-in-possession financing to support operations while it restructures.

“We expect to be a stronger business partner and employer as result of the additional financing our existing lenders have committed, based on their strong belief in our go-forward potential,” Speedcast CEO Peter Shaper said in an April 23 news release.

Speedcast’s bankruptcy leaves at least 12 satellite operators with unsecured claims. The largest, Intelsat, is owed $45.2 million, followed by Inmarsat with $24.8 million in unsecured claims, and SES with $7.7 million.

Iridium, AsiaSat, Eutelsat, Telesat, Sky Perfect JSAT, AT&T, Globalstar, APT Satellite, and the Russian Satellite Communications Company all have unsecured claims with Speedcast ranging from a few hundred thousand to a few million dollars.

Speedcast said all of its business units are continuing to operate without disruption despite the bankruptcy. None of the company’s government-focused subsidiaries — UltiSat, Globecomm and others — have filed for Chapter 11, Speedcast said.

760


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## System (18 March 2021)

SDA Announcement Regarding ASX Delisting: 16 March 2021



> *Removal from Official List*
> 
> Sydney, Australia, 16 March 2021 – Speedcast International Limited (ASX: SDA), today announced that it had submitted a delisting application with the ASX, and anticipates being removed from the official list for quotation on the ASX as of close of business on Tuesday,16 March2021.
> 
> ...


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