KVH Industries, Inc., (Nasdaq:KVHI) reported financial results for
the second quarter ended June 30, 2016 today. The company will hold
a conference call to discuss these results at 10:30 a.m. ET today,
which can be accessed at investors.kvh.com. Following the call, a
replay of the webcast will be available through the company’s
website.
Recent KVH Highlights
- Selected after competitive bid to provide mini-VSAT Broadband
hardware, airtime, and value added services to a maritime fleet for
a minimum of 100 vessels.
- Announced that one of the world’s leading ship managers, Thome
Ship Management, selected KVH Media Group’s MOVIElink service for
41 vessels.
- Announced that one of the largest global transportation,
logistics and terminal companies, Orient Overseas Container Line
(OOCL), renewed its fleet-wide KVH Videotel Maritime Training
Contract.
- Sales of Inertial Measurement Units (IMUs) continued strong in
both commercial and military markets, including key sales replacing
competitors’ products.
For the second quarter of 2016, our revenues were $46.0 million,
up 2.5% from a year ago; our net loss was $0.8 million, or $0.05
per share, while non-GAAP net income was $1.2 million, or $0.08 per
share. During the same period last year, we reported a GAAP net
profit of $0.0 million, or $0.00 per share, and a non-GAAP net
income of $2.1 million, or $0.13 per share.
Non-GAAP adjusted EBITDA was $3.5 million for the second quarter
of 2016 compared to $4.6 million in the prior year quarter.
Included in non-GAAP adjusted EBITDA was $1.2 million and $1.3
million related to the amortization of intangible assets for the
three months ended June 30, 2016 and 2015, respectively.
“Overall, given the continued headwinds in the commercial
maritime markets, we are pleased with our financial results in the
second quarter, approaching the high end of the range of our
guidance for EPS and adjusted EBITDA and the midpoint for revenue,”
said Martin Kits van Heyningen, KVH’s chief executive officer. “Our
gross profit margins of 43% for the quarter were up 2% sequentially
and flat with the second quarter of 2015. We had another solid
quarter in our mini-VSAT business, with average revenue per
subscriber (ARPUs), and airtime revenues increasing sequentially,
and we came to an agreement to upgrade a customer with a large
fleet of vessels to KVH's new, high speed, usage-based service
plan, mini-VSAT Broadband 2.0.”
Financial Highlights (in millions, except per
share data)
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
GAAP
Results |
|
|
|
|
|
|
|
Revenue |
$ |
46.0 |
|
|
$ |
44.9 |
|
|
$ |
86.4 |
|
|
$ |
86.2 |
|
Net (loss) income |
$ |
(0.8 |
) |
|
$ |
0.0 |
|
|
$ |
(3.6 |
) |
|
$ |
(1.4 |
) |
Net (loss) income per
share |
$ |
(0.05 |
) |
|
$ |
0.00 |
|
|
$ |
(0.23 |
) |
|
$ |
(0.09 |
) |
|
|
|
|
|
|
|
|
Non-GAAP
Results |
|
|
|
|
|
|
|
Net income |
$ |
1.2 |
|
|
$ |
2.1 |
|
|
$ |
0.6 |
|
|
$ |
3.0 |
|
Net income per share |
$ |
0.08 |
|
|
$ |
0.13 |
|
|
$ |
0.04 |
|
|
$ |
0.19 |
|
Adjusted
EBITDA |
$ |
3.5 |
|
|
$ |
4.6 |
|
|
$ |
4.5 |
|
|
$ |
7.4 |
|
For more information regarding our non-GAAP financial measures,
see the tables at the end of this release.
Second Quarter Financial
Summary
Revenue was $46.0 million for the second quarter of 2016, an
increase of 2.5% compared to the second quarter of 2015,
notwithstanding weakness in the British Pound that negatively
impacted revenue by $0.4 million or 1.0%. Second quarter product
revenues of $20.1 million were 12.3% higher than the prior year
quarter, due to a 40.4% year-over-year increase in guidance and
stabilization product revenues, partially offset by a decrease in
sales of our mobile communications products of 2.6%. Service
revenues for the second quarter of 2016 were $25.9 million a
decrease of 3.7% compared to the second quarter of 2015. Airtime
service revenues of $16.0 million, which include mini-VSAT
Broadband airtime revenues, were down 1%, year-over-year, primarily
driven by flat mini-VSAT airtime revenues and a 28% decrease in
Inmarsat FleetBroadband revenues. Content and services revenues,
which include our entertainment, e-Learning and safety content,
were down 7.3% in the second quarter of 2016 compared to the second
quarter of 2015. British Pound weakness negatively impacted content
and service revenue by $0.4 million, or 4.5%.
Six-Months Ended June 30 Financial
Summary
For the six months ended June 30, 2016, revenue was $86.4
million, up 0.2% compared to $86.2 million for the six months ended
June 30, 2015. Weakness in the British Pound negatively impacted
revenue in 2016 by $0.9 million or 1.0%. Product revenues for the
2016 six-month period of $35.5 million, were 6.3% higher than the
comparable period last year, primarily as a result of a 24.2%
increase in guidance and stabilization product revenues
year-over-year, which was partially offset by a decrease in sales
of our mobile communications products of 2.0% year-over-year.
Service revenues for the 2016 six-month period of $50.9 million
were 3.6% lower than the comparable period last year. Airtime
service revenues in the 2016 six-month period decreased 1.6%
year-over-year while content and services revenues decreased 6.8%.
Weakness in the British Pound negatively impacted content and
service revenue by $0.9 million, or 4.5%.
The company reported a GAAP net loss of $3.6 million for the six
months ended June 30, 2016, or $0.23 per share. During the same
period last year, the company recorded a GAAP net loss of $1.4
million, or $0.09 per share. The company recorded non-GAAP net
income of $0.6 million, or $0.04 per share, for the six months
ended June 30, 2016 compared to non-GAAP net income of $3.0
million, or $0.19 per share, in the prior year period. Non-GAAP
adjusted EBITDA was $4.5 million for the six months ended June 30,
2016 compared to $7.4 million during the same period last year.
Third Quarter 2016 and Full Year 2016
Outlook
Overall KVH expects continued growth and improving profitability
for the second half of the year. We expect solid year-over-year
growth in our marine mini-VSAT business and our defense business.
For the full year, we still anticipate at least two significant
TACNAV orders that will be received and shipped during Q4.
Fulfillment of these orders are critical to meeting our full-year
guidance, which we are reaffirming as set out below. Also, a
portion of our revenues and costs are denominated in pounds
sterling, and there have recently been significant fluctuations in
currency movements relative to the U.S. dollar. Significant changes
to currency exchange rates, particularly between the U.S. dollar
and pounds sterling, may have a material impact on our
earnings.
- Revenue for the full year is projected to be in the range of
$190 million to $210 million.
- For the full year, net income is projected to be in the range
of $2.0 million to $6.7 million with GAAP diluted EPS projected to
be in the range of $0.12 to $0.42, with non-GAAP diluted EPS for
the full year projected to be in the range of $0.66 to $0.96.
Non-GAAP adjusted EBITDA is projected to be in the range of $21.0
million to $28.0 million.
- Revenue for the third quarter is projected to be in the range
of $44 million to $46 million.
- For the third quarter, net income (loss) is projected to be in
the range of a net loss of $0.5 million to net income of $0.4
million with GAAP net income (loss) per share to be in the range of
a net loss of $0.03 per share to net income of $0.02 per share and
with non-GAAP diluted net income per share for the third quarter
projected to be in the range of $0.08 to $0.13. Non-GAAP adjusted
EBITDA is projected to be in the range of $3.8 million to $5.0
million.
Other Recent Announcements
- KVH promoted Brent C. Bruun to serve as Chief Operating
Officer.
- KVH appointed John McCarthy as Interim Chief Financial Officer
after the resignation of Peter Rendall.
- KVH announced that one of the world’s leading ship managers,
Thome Ship Management, selected KVH Media Group’s MOVIElink service
for 41 vessels.
- KVH announced that one of the largest global transportation,
logistics and terminal companies, Orient Overseas Container Line
(OOCL), renewed its fleet-wide KVH Videotel Maritime Training
Contract.
- KVH announced that its content delivery service IP-MobileCast
now includes high-resolution updates from Applied Weather
Technology (AWT), a leading marine weather service provider, as a
standard feature for all subscribing customers.
Please review the corresponding press releases for more details
regarding these developments.
Conference Call Details
KVH Industries will host a conference call today at 10:30 a.m.
ET through the company’s website. The conference call can be
accessed at investors.kvh.com and listeners are welcome to submit
questions pertaining to the earnings release and conference call to
ir@kvh.com. The audio archive will also be available on the company
website within three hours of the completion of the call.
Non-GAAP Financial Measures
Provided in this release is non-GAAP financial information,
including non-GAAP net income, non-GAAP diluted EPS, and non-GAAP
adjusted EBITDA, as a supplement to the condensed financial
statements, which are prepared in accordance with generally
accepted accounting principles (“GAAP”). Management uses these
non-GAAP financial measures internally in analyzing financial
results to assess operational performance and (only in the case of
non-GAAP adjusted EBITDA) liquidity. The presentation of this
financial information is not intended to be considered in isolation
or as a substitute for the financial information prepared in
accordance with GAAP. KVH believes that both management and
investors benefit from referring to these non-GAAP financial
measures in assessing performance and when planning, forecasting,
and analyzing future periods. KVH believes these non-GAAP financial
measures are useful to investors because they allow for greater
transparency with respect to key financial metrics used in making
operating decisions and because its investors and analysts use them
to help assess the health of its business.
Some limitations of non-GAAP adjusted EBITDA, non-GAAP net
income (loss), and non-GAAP diluted EPS, include the following:
- Non-GAAP adjusted EBITDA represents net income (loss) before
interest income, interest expense, income taxes, depreciation,
amortization, stock-based compensation, acquisition-related
expenses, and adjustments resulting from the application of
purchase accounting in connection with acquisitions.
- Non-GAAP net income (loss) and basic and diluted EPS exclude
acquisition-related expenses, adjustments resulting from the
application of purchase accounting in connection with acquisitions,
adjustments related to stock-based compensation and intangible
amortization, and also excludes any discrete tax items.
Other companies, including companies in KVH’s industry, may
calculate these non-GAAP financial measures differently or not at
all, which will reduce their usefulness as a comparative
measure.
Because of these limitations, investors should consider these
non-GAAP financial measures together with other financial
performance measures, including net income (loss), diluted net
income (loss) per share, and KVH’s other financial results
presented in accordance with GAAP. See the GAAP to non-GAAP
reconciliations below for further details.
About KVH Industries, Inc.
KVH Industries is a leading manufacturer of solutions that
provide global high-speed Internet, television, and voice services
via satellite to mobile users at sea and on land and is a leading
news, music, entertainment, and training content provider to many
industries including maritime, retail, and leisure. KVH Industries
is also a premier manufacturer of high-performance sensors and
integrated inertial systems for defense and commercial guidance and
stabilization applications. KVH is based in Middletown, RI, with
research, development, and manufacturing operations in Middletown,
RI, and Tinley Park, IL. The company’s global presence includes
offices in Belgium, Brazil, Cyprus, Denmark, Hong Kong, Japan, the
Netherlands, Norway, Singapore, and the United Kingdom.
This press release contains forward-looking statements that
involve risks and uncertainties. For example, forward-looking
statements include statements regarding our financial goals for
future periods, our anticipated revenue, competitive positioning,
profitability, and product orders. The actual results could differ
materially from the statements made in this press release. Factors
that might cause these differences include, but are not limited to:
our competitive bid for the 100-vessel mini-VSAT Broadband contract
described above is presently subject only to a letter of intent,
which could expire without a definitive agreement or could result
in an agreement with less favorable terms; we may not satisfy the
minimum criteria set forth in the letter of intent; continued
adverse impacts of currency fluctuations; risks associated with the
impact of Brexit on sales and operations in the U.K. and Europe and
on the overall global economy; potential reduced sales to companies
in or dependent upon the turbulent oil and gas industry; continued
substantial fluctuations in military sales, including to foreign
customers; the unpredictability of defense budget priorities as
well as the order timing, purchasing schedules, and priorities for
defense products, including possible order cancellations; the
uncertain impact of potential budget cuts by government customers;
the impact of extended economic weakness on the sale and use of
motor vehicles and marine vessels; the need to increase sales of
the TracPhone V-IP series products and related services to improve
airtime gross margins; the need for, or delays in, qualification of
products to customer or regulatory standards; unanticipated
declines or changes in customer demand, due to economic, seasonal,
and other factors, particularly with respect to the TracPhone V-IP
series, including with respect to new pricing models; recent
increases in airtime termination rates and lower unit sales in our
mobile business; increased price and service competition in the
mobile communications market; potential increased expenses
associated with investments in new technology; exposure for
potential intellectual property infringement; potential additional
litigation expenses; fluctuations in interest rates; potential
changes in tax and accounting requirements or assessments,
including management’s assessment of the probability and effect of
future events; stock price volatility; and export restrictions,
delays in procuring export licenses, and other international risks.
These and other factors are discussed in more detail in KVH’s
Annual Report on Form 10-K filed with the Securities and Exchange
Commission on March 14, 2016. Copies are available through its
Investor Relations department and website,
http://investors.kvh.com. KVH does not assume any obligation to
update its forward-looking statements to reflect new information
and developments.
KVH Industries, Inc., has used, registered, or applied to
register its trademarks in the USA and other countries around the
world, including the following marks: KVH, KVH logo, Azimuth,
TracVision, TracPhone, Tri-Americas, CommBox, TACNAV,
IP-MobileCast, Videotel, Sailcomp, mini-VSAT Broadband and the
mini-VSAT Broadband logo, E·Core, Crewtoo, Muzo,
MOVIElink, and the banded, dome-shaped housing of its satellite
antennas. Other trademarks are the property of their respective
companies.
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
(in thousands, except per share amounts,
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
$ |
|
20,062 |
|
|
$ |
|
17,946 |
|
|
$ |
|
35,444 |
|
|
$ |
|
33,332 |
|
|
|
|
Service |
|
|
|
25,904 |
|
|
|
|
26,909 |
|
|
|
|
50,902 |
|
|
|
|
52,828 |
|
|
|
|
Net sales |
|
|
|
45,966 |
|
|
|
|
44,855 |
|
|
|
|
86,346 |
|
|
|
|
86,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of product sales |
|
|
|
12,989 |
|
|
|
|
12,017 |
|
|
|
|
23,659 |
|
|
|
|
22,502 |
|
|
|
|
Costs of service sales |
|
|
|
13,259 |
|
|
|
|
13,693 |
|
|
|
|
26,250 |
|
|
|
|
26,953 |
|
|
|
|
Research and development |
|
|
|
4,037 |
|
|
|
|
3,482 |
|
|
|
|
7,820 |
|
|
|
|
7,232 |
|
|
|
|
Sales, marketing and support |
|
|
|
9,234 |
|
|
|
|
8,282 |
|
|
|
|
17,892 |
|
|
|
|
16,362 |
|
|
|
|
General and
administrative |
|
|
|
7,140 |
|
|
|
|
7,639 |
|
|
|
|
14,792 |
|
|
|
|
15,277 |
|
|
|
|
Total costs and
expenses |
|
|
|
46,659 |
|
|
|
|
45,113 |
|
|
|
|
90,413 |
|
|
|
|
88,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
|
(693 |
) |
|
|
|
(258 |
) |
|
|
|
(4,067 |
) |
|
|
|
(2,166 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
|
118 |
|
|
|
|
144 |
|
|
|
|
223 |
|
|
|
|
292 |
|
|
|
|
Interest expense |
|
|
|
353 |
|
|
|
|
366 |
|
|
|
|
728 |
|
|
|
|
734 |
|
|
|
|
Other income, net |
|
|
|
144 |
|
|
|
|
623 |
|
|
|
|
67 |
|
|
|
|
1,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income
tax expense (benefit) |
|
|
|
(784 |
) |
|
|
|
143 |
|
|
|
|
(4,505 |
) |
|
|
|
(1,572 |
) |
|
|
|
Income tax expense (benefit) |
|
|
|
22 |
|
|
|
|
106 |
|
|
|
|
(908 |
) |
|
|
|
(187 |
) |
|
|
|
Net (loss)
Income |
|
$ |
|
(806 |
) |
|
$ |
|
37 |
|
|
$ |
|
(3,597 |
) |
|
$ |
|
(1,385 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
|
(0.05 |
) |
|
$ |
|
0.00 |
|
|
$ |
|
(0.23 |
) |
|
$ |
|
(0.09 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
15,825 |
|
|
|
|
15,629 |
|
|
|
|
15,774 |
|
|
|
|
15,584 |
|
|
|
|
Diluted |
|
|
|
15,825 |
|
|
|
|
15,780 |
|
|
|
|
15,774 |
|
|
|
|
15,584 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
(in thousands, unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
2016 |
|
2015 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Cash, cash equivalents and
marketable securities |
|
$ |
47,445 |
|
$ |
45,338 |
|
|
Accounts receivable, net |
|
|
32,588 |
|
|
43,895 |
|
|
Inventories |
|
|
21,700 |
|
|
21,589 |
|
|
Other current assets |
|
|
5,595 |
|
|
4,271 |
|
|
Total current
assets |
|
|
107,328 |
|
|
115,093 |
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
38,125 |
|
|
39,900 |
|
|
Goodwill |
|
|
33,645 |
|
|
36,747 |
|
|
Intangible assets, net |
|
|
21,879 |
|
|
26,755 |
|
|
Other non-current assets |
|
|
4,401 |
|
|
3,096 |
|
|
Non-current deferred income
taxes |
|
|
3,794 |
|
|
4,686 |
|
|
Total assets |
|
$ |
209,172 |
|
$ |
226,277 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses |
|
$ |
25,444 |
|
$ |
30,959 |
|
|
Deferred revenue |
|
|
6,408 |
|
|
5,962 |
|
|
Current portion of long-term
debt |
|
|
7,472 |
|
|
6,638 |
|
|
Total current
liabilities |
|
|
39,324 |
|
|
43,559 |
|
|
|
|
|
|
|
|
|
|
|
Other long-term liabilities |
|
|
1,200 |
|
|
1,391 |
|
|
Non-current deferred tax
liability |
|
|
4,297 |
|
|
5,097 |
|
|
Long-term debt, excluding current
portion |
|
|
54,109 |
|
|
58,054 |
|
|
Stockholders' equity |
|
|
110,242 |
|
|
118,176 |
|
|
Total liabilities and
stockholders' equity |
|
$ |
209,172 |
|
$ |
226,277 |
|
|
|
|
|
KVH INDUSTRIES, INC. AND SUBSIDIARIES |
RECONCILIATION OF GAAP NET (LOSS) INCOME TO NON-GAAP
NET INCOME |
(in thousands, unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
Net
(loss) income -
GAAP |
$ |
|
(806 |
) |
|
$ |
|
37 |
|
|
$ |
|
(3,597 |
) |
|
$ |
|
(1,385 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles |
|
|
1,250 |
|
|
|
|
1,319 |
|
|
|
|
2,533 |
|
|
|
|
2,761 |
|
|
|
|
|
|
Stock-based
compensation expense |
|
|
829 |
|
|
|
|
916 |
|
|
|
|
1,881 |
|
|
|
|
1,874 |
|
|
|
|
|
|
Tax effect on the
foregoing |
|
|
(283 |
) |
|
|
|
(311 |
) |
|
|
|
(640 |
) |
|
|
|
(637 |
) |
|
|
|
|
|
Acquisition-related
compensation |
|
|
179 |
|
|
|
|
198 |
|
|
|
|
358 |
|
|
|
|
387 |
|
|
|
|
|
|
Discrete tax expense
(benefit), net (a) |
|
|
22 |
|
|
|
|
(35 |
) |
|
|
|
31 |
|
|
|
|
15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income - Non-GAAP |
$ |
|
1,191 |
|
|
$ |
|
2,124 |
|
|
$ |
|
566 |
|
|
$ |
|
3,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per common share - Non-GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
|
0.08 |
|
|
$ |
|
0.13 |
|
|
$ |
|
0.04 |
|
|
$ |
|
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note - The impact of the change in the deferred income tax
asset valuation allowance on the number of diluted shares
outstanding did not alter the diluted net income per common share
result presented for all periods. As a result, the inconsequential
impact to the diluted share number has not been included. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Represents a change in the valuation allowance on a state
research and development tax credit, uncertain tax position
adjustments, provision to return adjustments, and
penalties. |
|
|
|
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
RECONCILIATION OF GAAP NET (LOSS) TO
NON-GAAP |
EBITDA AND NON-GAAP ADJUSTED
EBITDA |
(in thousands, unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
GAAP net (loss) income |
|
$ |
|
(806 |
) |
|
$ |
37 |
|
$ |
|
(3,597 |
) |
|
$ |
|
(1,385 |
) |
|
|
|
Income tax expense (benefit) |
|
|
|
22 |
|
|
|
106 |
|
|
|
(908 |
) |
|
|
|
(187 |
) |
|
|
|
Interest expense (income), net |
|
|
|
235 |
|
|
|
222 |
|
|
|
505 |
|
|
|
|
442 |
|
|
|
|
Depreciation and amortization |
|
|
|
3,066 |
|
|
|
3,103 |
|
|
|
6,255 |
|
|
|
|
6,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA |
|
|
|
2,517 |
|
|
|
3,468 |
|
|
|
2,255 |
|
|
|
|
5,102 |
|
|
|
|
Stock-based compensation
expense |
|
|
|
829 |
|
|
|
916 |
|
|
|
1,881 |
|
|
|
|
1,874 |
|
|
|
|
Acquisition-related
compensation |
|
|
|
179 |
|
|
|
198 |
|
|
|
358 |
|
|
|
|
387 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted EBITDA |
|
$ |
|
3,525 |
|
|
$ |
4,582 |
|
$ |
|
4,494 |
|
|
$ |
|
7,363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
NON-GAAP ADJUSTED EBITDA
GUIDANCE |
(in millions, unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter |
|
Full Year |
|
|
|
|
|
|
Fiscal 2016 (Projected) |
|
Fiscal 2016 (Projected) |
|
|
|
|
|
|
|
|
|
|
|
GAAP net (loss)
income |
|
|
$(0.5) - $0.4 |
|
$2.0 - $6.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Estimated income tax
(benefit) expense |
|
|
$(0.2) - $0.1 |
|
$1.5 - $3.8 |
|
|
|
Estimated interest
expense, net |
|
|
$ |
0.2 |
|
|
$ |
0.8 |
|
|
|
|
Estimated depreciation
and amortization (a) |
|
|
$ |
3.3 |
|
|
$ |
12.6 |
|
|
|
|
Estimated stock-based
compensation expense |
|
|
$ |
1.0 |
|
|
$ |
3.7 |
|
|
|
|
Acquisition-related
compensation |
|
|
$ |
0.0 |
|
|
$ |
0.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted
EBITDA |
|
|
$3.8 - $5.0 |
|
$21.0 - $28.0 |
|
|
|
|
|
|
|
|
|
|
|
|
(a) Reflects amortization of intangible assets resulting from
acquisitions and depreciation of fixed assets. |
|
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
NON-GAAP EPS GUIDANCE |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter |
|
Full Year |
|
|
|
|
|
|
Fiscal 2016 (Projected) |
|
Fiscal 2016 (Projected) |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
common share |
|
|
$(0.03) - $0.02 |
|
$0.12 - $0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
Estimated amortization
of intangibles (a) |
|
|
$ |
0.07 |
|
|
$ |
0.36 |
|
|
|
|
Estimated stock-based
compensation expense |
|
|
$ |
0.06 |
|
|
$ |
0.22 |
|
|
|
|
Estimated tax effect on
the foregoing |
|
|
($ |
0.02 |
) |
|
($ |
0.07 |
) |
|
|
|
Acquisition-related
compensation |
|
|
$ |
0.00 |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per
common share |
|
|
$0.08 - $0.13 |
|
$0.66 - $0.96 |
|
|
|
|
|
|
|
|
|
|
|
|
(a) Reflects amortization of intangible assets resulting from
acquisitions. |
|
|
|
|
|
Contact:
KVH Industries, Inc.
John McCarthy
401-608-8960
jfmccarthy@kvh.com
FTI Consulting
Christine Mohrmann
212-850-5600
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