KVH Industries, Inc., (Nasdaq:KVHI) reported financial results for
the quarter ended June 30, 2017 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.
Second Quarter 2017 Highlights
- Revenue for the second quarter of 2017 was $40.5 million, a
decrease of 12%, from $46.0 million in the second quarter of
2016. On a constant currency basis, revenue decreased
10%.
- In the second quarter of 2017, mini-VSAT Broadband Airtime
revenue grew $1.0 million, or 6%, compared to the second quarter of
2016. Likewise, the number of airtime subscribers also increased 6%
for this period. Usage-based airtime plans grew to 60% for all
airtime plans, helping increase airtime gross margin to a record
39%.
- AgilePlans, our new Connectivity as a Service Program, for the
commercial maritime sector, launched successfully in the quarter,
representing 20% of all mini-VSAT Broadband shipments. The revenue
recognized from AgilePlans was not significant due to the time
between shipments and activation.
- Strong inertial measurement unit (IMU) sales drove fiber optic
gyro (FOG) product revenue higher by 11% and contracted engineering
service revenue almost doubled in the second quarter of 2017
compared to the second quarter of 2016.
- Net loss in the second quarter of 2017 was $2.0 million, or
$0.12 per share, compared to net loss of $0.8 million, or $0.05 per
share, in the second quarter of 2016.
- Non-GAAP net income in the second quarter of 2017 was $0.5
million, or $0.03 per share, compared to $1.2 million, or $0.08 per
share in the second quarter of 2016.
- Non-GAAP adjusted EBITDA in the second quarter of 2017 was $2.1
million compared to $3.5 million in the second quarter of
2016.
Commenting on the quarter, Martin Kits van
Heyningen, KVH’s Chief Executive Officer, said, “We continue to be
pleased with the growth in our Airtime service revenues and
margins. We recorded another quarter of solid airtime and
subscriber growth, and achieved record airtime gross margins of
39%. In addition, we launched our new subscription-based
Connectivity as a Service Program, AgilePlans, this quarter and the
feedback we have received so far continues to be very
positive. AgilePlans represented over 38% of TracPhone V7-IP
and V11-IP maritime shipments in the second quarter.”The company
operates in two segments, mobile connectivity and inertial
navigation. Net sales for the mobile connectivity segment in the
second quarter of 2017 decreased $2.8 million, or 8%, as compared
to the second quarter of 2016 due to lower mini-VSAT Broadband
product sales due in part to the fact that, under our AgilePlans
program, we do not recognize revenue from products delivered to
customers, and lower content and training revenues driven primarily
by the weakness in the British Pound, partially offset by higher
airtime revenues. Net sales for our inertial navigation segment in
the second quarter of 2017 decreased $2.7 million, or 30%, compared
to the second quarter of 2016, driven by a $3.5 million decrease in
TACNAV sales, due to a large order that occurred in the second
quarter of 2016. This decrease was partially offset by an increase
in FOG product sales and contracted engineering services.
Financial Highlights (in millions,
except per share data)
|
|
Quarter EndedJune
30, |
|
Six Months EndedJune
30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
GAAP
Results |
|
|
|
|
|
|
|
|
Revenue |
|
$ |
40.5 |
|
|
$ |
46.0 |
|
|
$ |
80.7 |
|
|
$ |
86.4 |
|
Net loss |
|
$ |
(2.0 |
) |
|
$ |
(0.8 |
) |
|
$ |
(6.9 |
) |
|
$ |
(3.6 |
) |
Net loss per share |
|
$ |
(0.12 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP
Results |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
0.5 |
|
|
$ |
1.2 |
|
|
$ |
(0.9 |
) |
|
$ |
0.6 |
|
Net income (loss) per
share |
|
$ |
0.03 |
|
|
$ |
0.08 |
|
|
$ |
(0.05 |
) |
|
$ |
0.04 |
|
Adjusted EBITDA |
|
$ |
2.1 |
|
|
$ |
3.5 |
|
|
$ |
1.3 |
|
|
$ |
4.5 |
|
For more information regarding our non-GAAP
financial measures, see the tables at the end of this release.
Second Quarter Financial
Summary
Revenue was $40.5 million for the second quarter of
2017, a decrease of 12%, compared to the second quarter of 2016.
The British Pound negatively impacted consolidated revenue in 2017
by $0.8 million, or 2%.
Product revenues for the second quarter of $14.3
million were 29% lower than the prior year quarter, due to a
decrease in mobile connectivity product sales of $2.7 million and a
$3.0 million decrease in our inertial navigation product sales.
Mobile connectivity product sales decreased partly due to the
timing of a particularly large order received in the prior year
quarter, as well as the impact of the new AgilePlans subscription
service under which we do not recognize revenue from product sales.
We believe inclement weather, particularly in the U.S. East Coast
region, also impacted our marine business as boat owners delayed
the seasonal retrofitting of their vessels. Inertial navigation
product sales decreased due to a $3.5 million decrease in TACNAV
sales, due to a large order which occurred in the prior year
quarter, partially offset by a $0.5 million increase in FOG product
sales.
Service revenues for the second quarter were $26.2
million, an increase of 1% compared to the prior year quarter.
Airtime service revenues, which include mini-VSAT Broadband airtime
revenues, increased 6%. Content and training revenues, which
include our entertainment, e-Learning, and safety content decreased
by 9%; however, on a constant-currency basis, these revenues
increased by 1%. Weakness in the British Pound negatively impacted
content and training revenues by $0.8 million, or 10%. Our
engineering service revenues in the second quarter of 2017
increased by $0.4 million compared to the second quarter of 2016 as
a result of a substantial contract which began in the first quarter
and is expected to be completed in the third quarter of 2017.
Our operating expenses decreased $1.0 million
year-over-year to $19.4 million, primarily due to a decrease in
commissions and a decrease in unfunded engineering costs, partially
offset by an increase in consulting, salaries, and associated
compensation expenses due to increased headcount to support our
strategic initiatives.
Six Months Ended June 30 Financial
Summary
Revenue was $80.7 million for the six months ended
June 30, 2017, a decrease of 6%, compared to the six months ended
June 30, 2016. The British Pound negatively impacted consolidated
revenue in 2017 by $1.8 million, or 2%.
Product revenues for the six months ended June 30,
2017 were $29.2 million which was 18% lower than the comparable
period last year, due to a decrease in mobile connectivity product
sales of $3.7 million and a $2.6 million decrease in our inertial
navigation product sales. Mobile connectivity product sales
decreased primarily due to the decrease in the second quarter
described above. Inertial navigation product sales decreased due to
a $3.5 million decrease in TACNAV sales, due to a large order which
occurred in the second quarter of 2016 and was partially offset by
a $0.9 million increase in FOG product sales in the current
period.
Service revenues for the six months ended June 30,
2017 were $51.5 million, an increase of 1% compared to the year ago
period. Airtime service revenues, which include mini-VSAT Broadband
airtime revenues, increased 6%. Content and training revenues,
which include our entertainment, e-Learning, and safety content,
decreased by 11% and were relatively flat on a constant-currency
basis. Weakness in the British Pound negatively impacted content
and training revenues by $1.8 million, or 12%. Our engineering
service revenues in the six months ended June 30, 2017 increased by
$1.1 million compared to the six months ended June 30, 2016 as a
result of a substantial contract which began in the first quarter
and is expected to be completed in the third quarter of 2017.
Our operating expenses decreased $0.2 million
year-over-year to $40.3 million, primarily due to a decrease in
commission expense and a decrease in unfunded engineering costs
partially offset by an increase in consulting, salaries, and
associated compensation expenses due to increased headcount to
support our strategic initiatives.
Third Quarter 2017 and Full Year 2017
Outlook
We continue to expect that 2017 will be an
important year of strategic investment in certain initiatives that
we believe have the potential to result in significant revenue
growth in 2018 and beyond. We are tightening our revenue guidance,
which is now $170 million to $184 million. Our full year guidance
for EPS and EBITDA remains unchanged from the guidance provided
earlier in the year as we have aligned our costs to offset the
impact of the modest reduction in the high end of our revenue
range. Furthermore, while we remain optimistic that the large
anticipated orders for our TACNAV systems will be received in 2017
with a limited number shipping this year, we have not received
those orders at this point. We now expect the 2017 installment on
those orders to be shipped in the fourth quarter. Specifically, our
guidance for the third quarter and full year of 2017 is as
follows:
(in millions,
except per share data) |
|
Expected Range for theThird
Quarter |
|
Expected Range for theFull
Year |
|
|
From |
|
To |
|
From |
|
To |
Revenue |
|
$ |
41.0 |
|
|
$ |
43.0 |
|
|
$ |
170.0 |
|
|
$ |
184.0 |
|
GAAP EPS |
|
$ |
(0.21 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.69 |
) |
|
$ |
(0.38 |
) |
Non-GAAP EPS |
|
$ |
0.01 |
|
|
$ |
0.04 |
|
|
$ |
0.07 |
|
|
$ |
0.27 |
|
Non-GAAP Adjusted
EBITDA |
|
$ |
1.2 |
|
|
$ |
1.9 |
|
|
$ |
8.5 |
|
|
$ |
13.5 |
|
Other Recent Announcements
- KVH Announces CHARTlink for ChartCo, Delivering Charts and
Publications to Vessels at Sea Seamlessly
- KVH Announces YOURlink for Delivering Corporate Videos to
Vessels at Sea
- KVH Videotel Launches Extensive Training Suite to Address Gaps
in Seafarer Engineering Knowledge
- Smit Lamnalco Selects KVH Maritime Solution for Connectivity
and Network Management Services on its Offshore Vessels
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 be available on the
company website within three hours of the completion of the
call.
Non-GAAP Financial Measures
This release provides non-GAAP financial
information, including constant-currency revenue, 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. Constant-currency revenue is calculated on the
basis of local currency results, using foreign currency exchange
rates applicable to the earlier comparative period, and management
believes that presenting information on a constant-currency basis
helps management and investors to isolate the impact of changes in
those rates from other factors. 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. The non-GAAP financial measures used in this press
release adjust for specified items that can be highly variable or
difficult to predict. The company generally uses these non-GAAP
financial measures to facilitate management’s financial and
operational decision-making, including evaluation of the company’s
historical operating results, comparison to competitors’ operating
results, and determination of management incentive compensation.
These non-GAAP financial measures reflect an additional way of
viewing aspects of the company’s operations that, when viewed with
GAAP results and the reconciliations to corresponding GAAP
financial measures, may provide a more complete understanding of
factors and trends affecting our business.
Some limitations of non-GAAP net income (loss),
non-GAAP diluted EPS, and non-GAAP adjusted EBITDA, include the
following:
- Non-GAAP net income (loss) and diluted EPS exclude amortization
of intangibles, stock-based compensation, certain discrete tax
items, acquisition-related compensation, and other discrete
charges.
- Non-GAAP adjusted EBITDA represents net income (loss) before
interest income, interest expense, income taxes, depreciation,
amortization, stock-based compensation, acquisition-related
compensation and other discrete charges.
Other companies, including companies in our
industry, may calculate these non-GAAP financial measures
differently or not at all, which will reduce their usefulness as a
comparative measure.
Future Non-GAAP Adjustments
Future GAAP diluted EPS may be affected by changes
in ongoing assumptions and judgments, and may also be affected by
non-recurring, unusual or unanticipated charges, expenses or gains,
which are excluded in the calculation of our non-GAAP diluted EPS
guidance as described in this press release.
Because non-GAAP financial measures exclude the
effect of items that will increase or decrease our reported results
of operations, management strongly encourages investors to review
our consolidated financial statements and publicly filed reports in
their entirety. Reconciliations of the non-GAAP financial measures
to the most directly comparable GAAP financial measures are
included in the tables accompanying this release.
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, India, Japan, the Netherlands, Norway,
the Philippines, 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, the
success of our new initiatives, our anticipated revenue and
earnings and the impact of our future initiatives on revenue,
competitive positioning, profitability, and product orders. Actual
results could differ materially from the forward-looking statements
made in this press release. Factors that might cause these
differences include, but are not limited to: delays in the receipt
of anticipated orders for our products and services, including
significant orders for TACNAV products, or the potential failure of
such orders to occur at all; continued adverse impacts of currency
fluctuations, particularly the British Pound; the uncertain impact
on our overall revenues of our new AgilePlans, under which we
recognize no revenues for product sales, either at the time of
shipment or over the contract term; risks associated with the
impact of Brexit on sales and operations in the U.K. and Europe and
on the overall global economy; our ability to successfully
implement our new initiatives without unanticipated additional
expenses; 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 marine vessels
and recreational vehicles; the potential inability to increase or
maintain our market share in the market for airtime services; the
need to increase sales of the TracPhone V-IP series products and
related services to maintain and improve airtime gross margins; the
need for, or delays in, qualification of products to customer or
regulatory standards; potential declines or changes in customer
demand, due to economic, weather, 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 connectivity
market; potential increased expenses associated with investments in
new technology, including for our new high throughput satellite
service; 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 our Annual Report on Form 10-K filed with the Securities
and Exchange Commission on March 9, 2017. Copies are available
through our Investor Relations department and website,
http://investors.kvh.com. We do not assume any obligation to update
our 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 but not limited to the following marks:
KVH, TracVision, TracPhone, CommBox, TACNAV, IP-MobileCast,
Videotel, mini-VSAT Broadband, NEWSlink, KVH OneCare, and
AgilePlans by KVH. 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 EndedJune
30, |
|
Six Months EndedJune
30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Sales: |
|
|
|
|
|
|
|
|
Product |
|
$ |
14,323 |
|
|
$ |
20,062 |
|
|
$ |
29,186 |
|
|
$ |
35,444 |
|
Service |
|
26,126 |
|
|
25,904 |
|
|
51,474 |
|
|
50,902 |
|
Net sales |
|
40,449 |
|
|
45,966 |
|
|
80,660 |
|
|
86,346 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
Costs of
product sales |
|
9,295 |
|
|
12,989 |
|
|
19,834 |
|
|
23,659 |
|
Costs of
service sales |
|
13,094 |
|
|
13,259 |
|
|
26,362 |
|
|
26,250 |
|
Research
and development |
|
3,761 |
|
|
4,037 |
|
|
7,708 |
|
|
7,820 |
|
Sales,
marketing and support |
|
8,124 |
|
|
9,234 |
|
|
16,864 |
|
|
17,892 |
|
General
and administrative |
|
7,543 |
|
|
7,140 |
|
|
15,730 |
|
|
14,792 |
|
Total costs and expenses |
|
41,817 |
|
|
46,659 |
|
|
86,498 |
|
|
90,413 |
|
Loss from operations |
|
(1,368 |
) |
|
(693 |
) |
|
(5,838 |
) |
|
(4,067 |
) |
Interest
income |
|
159 |
|
|
118 |
|
|
325 |
|
|
223 |
|
Interest
expense |
|
349 |
|
|
353 |
|
|
702 |
|
|
728 |
|
Other
(expense) income, net |
|
(112 |
) |
|
144 |
|
|
(180 |
) |
|
67 |
|
Loss before income tax expense (benefit) |
|
(1,670 |
) |
|
(784 |
) |
|
(6,395 |
) |
|
(4,505 |
) |
Income tax expense
(benefit) |
|
356 |
|
|
22 |
|
|
516 |
|
|
(908 |
) |
Net loss |
|
$ |
(2,026 |
) |
|
$ |
(806 |
) |
|
$ |
(6,911 |
) |
|
$ |
(3,597 |
) |
Net loss per
common share: |
|
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.23 |
) |
Weighted
average number of common shares outstanding: |
|
|
|
|
|
|
|
|
Basic and
diluted |
|
16,446 |
|
|
15,825 |
|
|
16,354 |
|
|
15,774 |
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(in thousands, unaudited) |
|
|
|
June 30,2017 |
|
December 31,2016 |
ASSETS |
|
|
|
|
Cash,
cash equivalents and marketable securities |
|
$ |
44,202 |
|
|
$ |
52,134 |
|
Accounts
receivable, net |
|
27,068 |
|
|
31,152 |
|
Inventories |
|
23,412 |
|
|
20,745 |
|
Other
current assets |
|
4,863 |
|
|
4,801 |
|
Total current assets |
|
99,545 |
|
|
108,832 |
|
Property
and equipment, net |
|
41,754 |
|
|
36,586 |
|
Goodwill |
|
32,802 |
|
|
31,343 |
|
Intangible assets, net |
|
16,657 |
|
|
17,838 |
|
Other
non-current assets |
|
5,751 |
|
|
5,134 |
|
Non-current deferred income taxes |
|
24 |
|
|
24 |
|
Total assets |
|
$ |
196,533 |
|
|
$ |
199,757 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
Accounts
payable and accrued expenses |
|
$ |
29,658 |
|
|
$ |
25,082 |
|
Deferred
revenue |
|
9,906 |
|
|
6,661 |
|
Current
portion of long-term debt |
|
2,477 |
|
|
7,900 |
|
Total current liabilities |
|
42,041 |
|
|
39,643 |
|
Other
long-term liabilities |
|
33 |
|
|
326 |
|
Non-current deferred tax liability |
|
3,302 |
|
|
3,133 |
|
Long-term
debt, excluding current portion |
|
45,815 |
|
|
50,153 |
|
Stockholders’ equity |
|
105,342 |
|
|
106,502 |
|
Total liabilities and stockholders’ equity |
|
$ |
196,533 |
|
|
$ |
199,757 |
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP
NET INCOME (LOSS) |
(in thousands, except per share amounts,
unaudited) |
|
|
|
Three Months EndedJune
30, |
|
Six Months EndedJune
30, |
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Net loss -
GAAP |
|
$ |
(2,026 |
) |
|
$ |
(806 |
) |
|
$ |
(6,911 |
) |
|
$ |
(3,597 |
) |
|
Amortization of intangibles |
|
1,102 |
|
|
1,250 |
|
|
2,170 |
|
|
2,533 |
|
|
Stock-based compensation expense |
|
852 |
|
|
829 |
|
|
1,812 |
|
|
1,881 |
|
|
Tax
effect on the foregoing |
|
(634 |
) |
|
(283 |
) |
(a) |
(1,045 |
) |
|
(640 |
) |
(a) |
Discrete
tax expense, net (b) |
|
1,274 |
|
|
22 |
|
|
3,123 |
|
|
31 |
|
|
Acquisition-related compensation |
|
— |
|
|
179 |
|
|
— |
|
|
358 |
|
|
Net income
(loss) - Non-GAAP |
|
$ |
568 |
|
|
$ |
1,191 |
|
|
$ |
(851 |
) |
|
$ |
566 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per common share - Non-GAAP: |
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
0.03 |
|
|
$ |
0.08 |
|
|
$ |
(0.05 |
) |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
16,446 |
|
|
15,825 |
|
|
16,354 |
|
|
15,744 |
|
|
Diluted |
|
16,497 |
|
|
15,867 |
|
|
16,354 |
|
|
15,886 |
|
|
(a) In 2016, consistent with the historical presentation,
this does not include the tax effect of the amortization expense
related to our intangible assets which were principally acquired in
connection with our United Kingdom acquisition with such operations
having a statutory tax rate of 20%.
(b) Represents a change in the valuation allowance on
United States net operating losses, a state research and
development tax credit, uncertain tax position 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 EndedJune
30, |
|
Six Months EndedJune
30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
GAAP net
loss |
|
$ |
(2,026 |
) |
|
$ |
(806 |
) |
|
$ |
(6,911 |
) |
|
$ |
(3,597 |
) |
Income
tax expense (benefit) |
|
356 |
|
|
22 |
|
|
516 |
|
|
(908 |
) |
Interest
expense, net |
|
190 |
|
|
235 |
|
|
377 |
|
|
505 |
|
Depreciation and amortization |
|
2,716 |
|
|
3,066 |
|
|
5,477 |
|
|
6,255 |
|
Non-GAAP
EBITDA |
|
1,236 |
|
|
2,517 |
|
|
(541 |
) |
|
2,255 |
|
Stock-based compensation expense |
|
852 |
|
|
829 |
|
|
1,812 |
|
|
1,881 |
|
Acquisition-related compensation |
|
— |
|
|
179 |
|
|
— |
|
|
358 |
|
Non-GAAP
adjusted EBITDA |
|
$ |
2,088 |
|
|
$ |
3,525 |
|
|
$ |
1,271 |
|
|
$ |
4,494 |
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
NON-GAAP EPS GUIDANCE |
(unaudited) |
|
|
|
Third
QuarterFiscal 2017 (Projected) |
|
Full
YearFiscal 2017 (Projected) |
Net loss per common
share |
|
$(0.21) - $(0.17) |
|
$(0.69) - $(0.38) |
|
|
|
|
|
Estimated amortization
of intangibles (a) |
|
$0.07 |
|
$0.28 |
Estimated stock-based
compensation expense |
|
$0.05 |
|
$0.23 |
Estimated tax
effect |
|
$(0.03) |
|
$(0.13) |
Discrete tax
adjustments (b) |
|
$0.13 - $0.12 |
|
$0.38 - $0.27 |
|
|
|
|
|
Non-GAAP net income per
common share |
|
$0.01 - $0.04 |
|
$0.07 - $0.27 |
(a) Includes amortization of intangible assets resulting
from acquisitions.
(b) Represents incremental forecasted valuation allowance
that we expect to record against additional deferred tax assets
generated in 2017.
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
NON-GAAP ADJUSTED EBITDA GUIDANCE |
(in millions, unaudited) |
|
|
|
Third
QuarterFiscal 2017 (Projected) |
|
Full
YearFiscal 2017 (Projected) |
GAAP net loss |
|
$(3.5) - $(2.8) |
|
$(11.1) - $(6.1) |
|
|
|
|
|
Estimated income tax
provision |
|
$0.5 |
|
$1.6 |
Estimated interest
expense, net |
|
$0.2 |
|
$0.7 |
Estimated depreciation
and amortization |
|
$3.1 |
|
$13.6 |
Estimated stock-based
compensation expense |
|
$0.9 |
|
$3.7 |
|
|
|
|
|
Non-GAAP adjusted
EBITDA |
|
$1.2 - $1.9 |
|
$8.5 - $13.5 |
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
QUARTER TO DATE AND YEAR TO DATE REVENUE AND
OPERATING INCOME BY SEGMENT |
(in millions except for percentages,
unaudited) |
|
Segment Net Sales |
|
Quarter EndedJune
30, |
|
Six Months EndedJune
30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Mobile connectivity sales |
|
|
|
|
|
|
|
|
Product |
|
$ |
8.9 |
|
|
$ |
11.6 |
|
|
$ |
18.7 |
|
|
$ |
22.4 |
|
Service |
|
25.2 |
|
|
25.3 |
|
|
49.6 |
|
|
49.8 |
|
Net sales |
|
$ |
34.1 |
|
|
$ |
36.9 |
|
|
$ |
68.3 |
|
|
$ |
72.2 |
|
|
|
|
|
|
|
|
|
|
Inertial navigation sales |
|
|
|
|
|
|
|
|
Product |
|
$ |
5.4 |
|
|
$ |
8.4 |
|
|
$ |
10.5 |
|
|
$ |
13.1 |
|
Service |
|
1.0 |
|
|
0.7 |
|
|
1.9 |
|
|
1.1 |
|
Net sales |
|
$ |
6.4 |
|
|
$ |
9.1 |
|
|
$ |
12.4 |
|
|
$ |
14.2 |
|
Operating
(Loss) Income |
|
Quarter EndedJune
30, |
|
Six Months EndedJune
30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Mobile
connectivity |
|
$ |
2.6 |
|
|
$ |
1.6 |
|
|
$ |
3.3 |
|
|
$ |
3.6 |
|
Inertial
navigation |
|
0.4 |
|
|
1.6 |
|
|
0.3 |
|
|
0.7 |
|
|
|
3.0 |
|
|
3.2 |
|
|
3.6 |
|
|
4.3 |
|
Unallocated |
|
(4.4 |
) |
|
(3.9 |
) |
|
(9.4 |
) |
|
(8.4 |
) |
Loss from operations |
|
$ |
(1.4 |
) |
|
$ |
(0.7 |
) |
|
$ |
(5.8 |
) |
|
$ |
(4.1 |
) |
|
|
Quarter EndedJune
30, |
|
Six Months EndedJune
30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Mobile
Connectivity Revenue Components |
|
|
|
|
|
|
|
|
Product
Sales |
|
22 |
% |
|
25 |
% |
|
23 |
% |
|
26 |
% |
mini-VSAT
Broadband Airtime |
|
41 |
% |
|
35 |
% |
|
40 |
% |
|
35 |
% |
Content
and Training |
|
20 |
% |
|
19 |
% |
|
20 |
% |
|
20 |
% |
Inertial
Navigation Revenue Components |
|
|
|
|
|
|
|
|
|
|
|
|
FOG based
G&S products |
|
12 |
% |
|
9 |
% |
|
11 |
% |
|
10 |
% |
Contact:
KVH Industries, Inc.
Donald W. Reilly
401-608-8977
dreilly@kvh.com
FTI Consulting
Christine Mohrmann
212-850-5600
KVH Industries (NASDAQ:KVHI)
Historical Stock Chart
From Jun 2024 to Jul 2024
KVH Industries (NASDAQ:KVHI)
Historical Stock Chart
From Jul 2023 to Jul 2024