KVH Industries, Inc., (Nasdaq:KVHI) reported financial results for
the quarter ended March 31, 2018 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.
First Quarter 2018 Highlights
- Record total unit shipments of VSAT products, increasing 62%
compared to the first quarter of 2017 and 50% compared to the
fourth quarter of 2017.
- AgilePlans, our new Connectivity as a Service Program for the
commercial maritime sector, increased to 67% of total commercial
maritime VSAT shipments, and 51% of the total VSAT shipments for
the quarter.
- Our fiber optic gyro (FOG) product sales were 25% higher
compared to the first quarter of 2017, the fifth consecutive
quarter of double-digit growth across a range of applications.
- Our mini-VSAT Broadband airtime revenue grew $0.6 million or
4%, compared to the first quarter of 2017, driven by a 6% increase
in subscribers, partially as a result of the introduction of
AgilePlans.
- Total revenue declined slightly in the first quarter of 2018 to
$40.1 million from $40.2 million in the first quarter of 2017,
driven in part by the continuing shift in our business model from
hardware sales to a recurring revenue model, as well as the new
revenue recognition standard. The application of the new revenue
recognition standard, Accounting Standards Codification (ASC) 606,
Revenue from Contracts with Customers, reduced our total revenue in
the first quarter of 2018 by $0.4 million, or 1%, from the revenue
we would have recognized under the prior standard.
- Net loss in the first quarter of 2018 was $3.9 million, or
$0.23 per share, compared to a net loss of $4.9 million, or $0.30
per share in the first quarter of 2017.
- Non-GAAP net loss in the first quarter of 2018 was $1.0
million, or $0.06 per share, compared to $1.3 million, or $0.08 per
share in the first quarter of 2017.
- Non-GAAP adjusted EBITDA in the first quarter of 2018 was $0.9
million, compared to a loss of $0.7 million in the first quarter of
2017.
Commenting on the quarter, Martin Kits van
Heyningen, KVH’s chief executive officer, said “2017 was an
investment year for KVH as we set in motion a number of strategic
initiatives that we believed had the potential to increase our
long-term growth across all of our markets. Our first quarter
results illustrate that these investments are enabling us to make
the transformation to growth in 2018. The AgilePlans Connectivity
as a Service Program that we launched a year ago helped drive
record quarterly mini-VSAT Broadband product shipments, and this
positive momentum has carried into our second quarter. Our airtime
revenue grew again in the first quarter as the AgilePlans program,
together with our new global HTS network, helped to increase our
subscriber base by more than 6%. In our inertial navigation
segment, our FOG business continued to grow significantly, with a
better than 25% year-over-year increase in the first quarter. At
the same time, our development of a photonic chip-based FOG remains
on track, and we expect to have a working prototype available for
testing by key driverless vehicle developers by the end of this
year.”
The company operates in two segments, mobile
connectivity and inertial navigation. Net sales for the mobile
connectivity segment decreased $1.5 million, or 4%, as compared to
the first quarter of 2017 due to lower mini-VSAT Broadband product
sales as a result of the implementation of the new ASC 606 revenue
recognition standard as well as the impact of the AgilePlans
subscription service. Partially offsetting this decrease was an
increase in our mini-VSAT Broadband airtime revenue. Net sales for
our inertial navigation segment increased $1.4 million, or 24%,
compared to the first quarter of 2017, due to an increase in FOG
sales and contracted engineering services.
Financial Highlights (in millions, except per
share data)
|
|
Quarter EndedMarch
31, |
|
|
2018 |
|
2017 |
GAAP
Results |
|
|
|
|
Revenue |
|
$ |
40.1 |
|
|
$ |
40.2 |
|
Net loss |
|
$ |
(3.9 |
) |
|
$ |
(4.9 |
) |
Net loss per diluted
share |
|
$ |
(0.23 |
) |
|
$ |
(0.30 |
) |
|
|
|
|
|
Non-GAAP
Results |
|
|
|
|
Net loss |
|
$ |
(1.0 |
) |
|
$ |
(1.3 |
) |
Net loss per diluted
share |
|
$ |
(0.06 |
) |
|
$ |
(0.08 |
) |
Adjusted EBITDA |
|
$ |
0.9 |
|
|
$ |
(0.7 |
) |
For more information regarding our non-GAAP financial measures,
see the tables at the end of this release.
First Quarter Financial Summary
Revenue was $40.1 million for the first quarter
of 2018, a decrease of less than 1% compared to $40.2 million in
the first quarter of 2017.
First quarter product revenues of $14.0 million
were 6% lower than the prior year quarter due to a $1.9 million
decrease in mobile connectivity product sales, which was partially
offset by a $1.1 million increase in inertial navigation product
sales. Mobile connectivity product sales decreased primarily due to
a $1.6 million decrease in marine product sales and a $0.3 million
decrease in land product sales. The decrease in marine product
sales was due to the impact of the AgilePlans subscription service
and the adoption of ASC 606, the latter of which reduced mini-VSAT
Broadband product sales by $0.4 million. Inertial navigation
product sales increased primarily due to an increase in FOG product
sales.
Service revenues for the first quarter of 2018
were $26.1 million, an increase of 3% compared to the first quarter
of 2017, due to a $0.4 million increase in mobile connectivity
service sales and a $0.4 million increase in inertial navigation
service sales. Airtime service revenues, which include mini-VSAT
Broadband airtime revenues, increased by 4% in the first quarter of
2018 compared to the first quarter of 2017 primarily due to a 6%
increase in subscribers. Content and training revenues, which
include our entertainment, eLearning, and safety content, decreased
by less than 1% in the first quarter of 2018 compared to the first
quarter of 2017. Our engineering service revenues increased by 27%
as a result of an engineering and services development contract
from a major U.S. defense contractor that began in the first
quarter and is expected to continue through the second quarter of
2018.
Our operating expenses decreased $0.4 million
year-over-year to $20.5 million compared to $20.9 million in the
first quarter of 2017. The key drivers were a decrease in
professional and consulting fees of $0.6 million, a $0.2 million
decrease in unfunded engineering expenses, and a $0.1 million
decrease in bad debt expense. This was partially offset by a $0.5
million increase in warranty expense.
Second Quarter 2018 and Full Year 2018
Outlook
Our guidance for the second quarter and full
year of 2018 is below. This guidance reflects the new revenue
recognition standard, ASC 606, which all U.S. public companies were
required to adopt on January 1, 2018. It should be noted that this
guidance does not include any revenue from the international
pipeline of large inertial navigation orders that we have been
anticipating.
|
|
|
|
|
(in millions,
except per share data) |
|
Second Quarter |
|
Full Year |
|
|
From |
|
To |
|
From |
|
To |
Revenue |
|
$ |
41.0 |
|
|
$ |
43.0 |
|
|
$ |
166.0 |
|
|
$ |
180.0 |
|
GAAP EPS |
|
$ |
(0.13 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.21 |
) |
Non-GAAP EPS |
|
$ |
0.02 |
|
|
$ |
0.06 |
|
|
$ |
0.12 |
|
|
$ |
0.28 |
|
Non-GAAP Adjusted
EBITDA |
|
$ |
2.0 |
|
|
$ |
3.0 |
|
|
$ |
12.0 |
|
|
$ |
16.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASC 606 requires that certain revenues that had
been recognized in prior periods be reversed as of January 1, 2018
and be recognized over time as performance obligations are met,
and, likewise, that certain currently generated revenues that would
have been recognized under previous accounting guidance instead be
deferred and recognized over time as performance obligations are
met. We expect the net impact of this change in accounting
guidance, which is reflected in the above tables, will be as
follows:
|
(in millions,
except per share data) |
|
SecondQuarter |
|
Full Year |
Revenue |
|
$ |
(1.6 |
) |
|
$ |
(4.0 |
) |
GAAP EPS |
|
$ |
(0.03 |
) |
|
$ |
(0.06 |
) |
Non-GAAP EPS |
|
$ |
(0.02 |
) |
|
$ |
(0.04 |
) |
Non-GAAP Adjusted
EBITDA |
|
$ |
(0.4 |
) |
|
$ |
(1.0 |
) |
|
|
|
|
|
|
|
|
|
Other Recent Announcements
- Per a newly released report by Euroconsult, KVH continued its
#1 leadership position in the maritime VSAT market based on total
number of units fielded, and increased its market share to 31.2% up
from 26% in the previous report four years ago.
- KVH and VectorNav Collaborate to Offer Precision Inertial
Navigation System.
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
loss, non-GAAP diluted EPS, and non-GAAP adjusted EBITDA, as a
supplement to our condensed consolidated 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. 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.
Management generally uses these non-GAAP financial measures to
facilitate financial and operational decision-making, including
evaluation of our 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 our 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, employee termination and
other non-recurring costs, certain discrete tax charges, and
foreign exchange transaction gains and losses.
- Non-GAAP adjusted EBITDA represents net income (loss) before
interest income, interest expense, income taxes, depreciation,
amortization, stock-based compensation, employee termination and
other non-recurring costs, and foreign exchange transaction gains
and losses.
These non-GAAP financial measures now exclude
the effect of foreign exchange transaction losses, which represents
a change from calculations presented in prior earnings releases. We
decided to exclude foreign exchange transaction losses because we
do not believe such gains or losses are indicative of operating
performance. 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.
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, Inc. (Nasdaq:KVHI), is a global
leader in mobile connectivity and inertial navigation systems,
innovating to enable a mobile world. The market leader in maritime
VSAT, KVH designs, manufactures, and provides connectivity and
content services globally. KVH is also a premier manufacturer of
high-performance sensors and integrated inertial systems for
defense and commercial applications. Founded in 1982, the company
is based in Middletown, RI, with research, development, and
manufacturing operations in Middletown, RI, and Tinley Park, IL,
and more than a dozen offices around the globe.
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 investment
plan, our development goals, our anticipated revenue and earnings,
the anticipated impact of ASC 606, 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: the
uncertain duration of the adverse impact on our overall revenues of
our new AgilePlans, under which we recognize no revenue for product
sales, either at the time of shipment or over the contract term;
increased costs arising from the new HTS network; the impact of
recent changes in revenue recognition and lease accounting
standards; including potential changes in the interpretation of
those standards; the uncertain impact of tax reform and federal
budget deficits; unanticipated obstacles in our photonic chip and
other product development efforts; 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; 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 and HTS 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-related, seasonal, and
other factors, particularly with respect to the TracPhone V-IP and
HTS series, including with respect to new pricing models; increased
price and service competition in the mobile connectivity 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 our Annual Report on Form
10-K filed with the Securities and Exchange Commission on March 2,
2018. 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
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands, except per share amounts,
unaudited) |
|
|
|
|
|
Three Months
EndedMarch 31, |
|
|
2018 |
|
2017 |
Sales: |
|
|
|
|
Product |
|
$ |
13,992 |
|
|
$ |
14,863 |
|
Service |
|
26,109 |
|
|
25,348 |
|
Net sales |
|
40,101 |
|
|
40,211 |
|
Costs and
expenses: |
|
|
|
|
Costs of
product sales |
|
8,923 |
|
|
10,539 |
|
Costs of
service sales |
|
13,816 |
|
|
13,268 |
|
Research
and development |
|
3,934 |
|
|
3,947 |
|
Sales,
marketing and support |
|
8,941 |
|
|
8,740 |
|
General
and administrative |
|
7,667 |
|
|
8,187 |
|
Total costs and expenses |
|
43,281 |
|
|
44,681 |
|
Loss from operations |
|
(3,180 |
) |
|
(4,470 |
) |
Interest
income |
|
148 |
|
|
166 |
|
Interest
expense |
|
409 |
|
|
353 |
|
Other
expense, net |
|
(274 |
) |
|
(68 |
) |
Loss before income tax
expense |
|
(3,715 |
) |
|
(4,725 |
) |
Income tax expense |
|
178 |
|
|
160 |
|
Net loss |
|
$ |
(3,893 |
) |
|
$ |
(4,885 |
) |
Net loss per
common share: |
|
|
|
|
Basic and
diluted |
|
$ |
(0.23 |
) |
|
$ |
(0.30 |
) |
Weighted
average number of common shares outstanding: |
|
|
|
|
Basic and
diluted |
|
16,742 |
|
|
16,261 |
|
|
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS(in thousands, unaudited) |
|
|
|
March 31,2018 |
|
December 31,2017 |
ASSETS |
|
|
|
|
Cash,
cash equivalents and marketable securities |
|
$ |
41,100 |
|
|
$ |
42,915 |
|
Accounts
receivable, net |
|
28,550 |
|
|
28,316 |
|
Inventories |
|
23,327 |
|
|
22,732 |
|
Other
current assets and contract assets |
|
7,724 |
|
|
3,816 |
|
Total current assets |
|
100,701 |
|
|
97,779 |
|
Property
and equipment, net |
|
48,145 |
|
|
43,521 |
|
Goodwill |
|
34,996 |
|
|
33,872 |
|
Intangible assets, net |
|
14,587 |
|
|
15,120 |
|
Other
non-current assets and contract assets |
|
12,709 |
|
|
5,927 |
|
Non-current deferred income taxes |
|
214 |
|
|
20 |
|
Total assets |
|
$ |
211,352 |
|
|
$ |
196,239 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
Accounts
payable and accrued expenses |
|
$ |
34,916 |
|
|
$ |
33,948 |
|
Contract
liabilities |
|
11,973 |
|
|
— |
|
Deferred
revenue |
|
— |
|
|
6,919 |
|
Current
portion of long-term debt |
|
2,484 |
|
|
2,482 |
|
Total current liabilities |
|
49,373 |
|
|
43,349 |
|
Other
long-term liabilities |
|
2,414 |
|
|
19 |
|
Long-term
contract liabilities |
|
8,301 |
|
|
— |
|
Non-current deferred tax liability |
|
2,729 |
|
|
2,634 |
|
Long-term
debt, excluding current portion |
|
41,701 |
|
|
44,572 |
|
Stockholders’ equity |
|
106,834 |
|
|
105,665 |
|
Total liabilities and stockholders’
equity |
|
$ |
211,352 |
|
|
$ |
196,239 |
|
|
|
|
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIESRECONCILIATION OF GAAP NET LOSS TO
NON-GAAP NET LOSS(in thousands, except per share
amounts, unaudited) |
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
2018 |
|
2017 |
Net loss –
GAAP |
|
$ |
(3,893 |
) |
|
$ |
(4,885 |
) |
Amortization of intangibles |
|
1,097 |
|
|
1,068 |
|
Stock-based compensation expense |
|
853 |
|
|
960 |
|
Employee
termination and other non-recurring costs |
|
195 |
|
|
— |
|
Foreign
exchange transaction loss (a) |
|
299 |
|
|
115 |
|
Tax
effect on the foregoing |
|
(486 |
) |
|
(434 |
) |
Discrete
tax expense, net (b) |
|
953 |
|
|
1,849 |
|
Net loss -
Non-GAAP |
|
$ |
(982 |
) |
|
$ |
(1,327 |
) |
|
|
|
|
|
Net loss per
common share - Non-GAAP: |
|
|
|
|
Basic and
diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.08 |
) |
|
|
|
|
|
Weighted
average number of common shares outstanding: |
|
|
|
|
Basic and
diluted |
|
16,742 |
|
|
16,261 |
|
(a) We changed our definition of
non-GAAP net loss and non-GAAP net loss per common share to exclude
the impacts of realized and unrealized foreign exchange transaction
gains and losses since such gains and losses are not indicative of
operating performance in any particular period. If we had presented
non-GAAP net loss and non-GAAP net loss per common share consistent
with our prior practice, the non-GAAP net loss and non-GAAP net
loss per common share would have been $0.2 million and $0.01 per
share, respectively, greater than the amounts reported in the table
for the three months ended March 31, 2018 and $0.1 million and
$0.01 per share, respectively, greater than the amounts reported in
the table for the three months ended March 31, 2017.
(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
SUBSIDIARIESRECONCILIATION OF GAAP NET LOSS TO
NON-GAAPEBITDA AND NON-GAAP ADJUSTED
EBITDA(in thousands, unaudited) |
|
|
|
|
|
Three Months EndedMarch
31, |
|
|
2018 |
|
2017 |
GAAP net
loss |
|
$ |
(3,893 |
) |
|
$ |
(4,885 |
) |
Income
tax expense |
|
178 |
|
|
160 |
|
Interest
expense, net |
|
261 |
|
|
187 |
|
Depreciation and amortization |
|
3,050 |
|
|
2,761 |
|
Non-GAAP
EBITDA |
|
(404 |
) |
|
(1,777 |
) |
Stock-based compensation expense |
|
853 |
|
|
960 |
|
Employee
termination and other non-recurring costs |
|
|
195 |
|
|
— |
|
Foreign
exchange transaction loss (a) |
|
|
299 |
|
|
|
115 |
|
Non-GAAP
adjusted EBITDA |
|
$ |
943 |
|
|
$ |
(702 |
) |
(a) We changed our definition of
non-GAAP adjusted EBITDA to exclude the impacts of realized and
unrealized foreign exchange transaction gains and losses since such
gains and losses are not indicative of operating performance in any
particular period. If we had presented non-GAAP adjusted EBITDA
consistent with our prior practice, non-GAAP adjusted EBITDA would
have been $0.3 million and $0.1 million lower than the amounts
presented in the table for the three months ended March 31, 2018
and 2017, respectively.
|
|
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIESFIRST QUARTER REVENUE AND OPERATING
LOSS BY SEGMENT(in millions except for
percentages, unaudited) |
|
|
|
Segment Net
Sales |
|
Three Months EndedMarch
31, |
|
|
2018 |
|
2017 |
Mobile
connectivity sales |
|
|
|
|
Product |
|
$ |
7.9 |
|
|
$ |
9.8 |
|
Service |
|
24.8 |
|
|
24.4 |
|
Net sales |
|
$ |
32.7 |
|
|
$ |
34.2 |
|
|
|
|
|
|
Inertial
navigation sales |
|
|
|
|
Product |
|
$ |
6.1 |
|
|
$ |
5.0 |
|
Service |
|
1.3 |
|
|
0.9 |
|
Net sales |
|
$ |
7.4 |
|
|
$ |
5.9 |
|
Operating
Loss |
|
Three Months EndedMarch
31, |
|
|
2018 |
|
2017 |
Mobile
connectivity |
|
$ |
1.1 |
|
|
$ |
0.6 |
|
Inertial
navigation |
|
0.3 |
|
|
(0.1 |
) |
|
|
1.4 |
|
|
0.5 |
|
Unallocated |
|
(4.6 |
) |
|
(5.0 |
) |
Loss from operations |
|
$ |
(3.2 |
) |
|
$ |
(4.5 |
) |
|
|
Three Months EndedMarch
31, |
|
|
2018 |
|
2017 |
|
|
(percentage of total revenue) |
Mobile
Connectivity Revenue Components |
|
|
|
|
Product
sales |
|
20 |
% |
|
25 |
% |
mini-VSAT
Broadband airtime |
|
41 |
% |
|
40 |
% |
Content
and training |
|
19 |
% |
|
19 |
% |
Inertial
Navigation Revenue Components |
|
|
|
|
FOG-based
products |
|
13 |
% |
|
11 |
% |
Tactical
navigation products |
|
2 |
% |
|
2 |
% |
|
|
|
|
|
|
|
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIESNON-GAAP EPS
GUIDANCE(unaudited) |
|
|
|
Second QuarterFiscal 2018 (Projected) |
|
Full
YearFiscal 2018 (Projected) |
Net loss per common
share |
|
$(0.13) - $(0.08) |
|
$(0.44) - $(0.21) |
|
|
|
|
|
Estimated amortization
of intangibles (a) |
|
$0.06 |
|
$0.23 |
Estimated stock-based
compensation expense |
|
$0.06 |
|
$0.22 |
Estimated tax
effect |
|
$(0.02) |
|
$(0.09) |
Discrete tax
adjustments (b) |
|
$0.05 - $0.04 |
|
$0.20 - $0.13 |
|
|
|
|
|
Non-GAAP net income per
common share (c) |
|
$0.02 - $0.06 |
|
$0.12 - $0.28 |
- Includes amortization of intangible assets resulting from
acquisitions.
- Represents incremental forecasted valuation allowance that the
company expects to record against additional deferred tax assets
generated in 2018.
- Assumes no significant change in realized and unrealized
foreign exchange transaction gains and losses.
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIESNON-GAAP ADJUSTED EBITDA
GUIDANCE(in millions, unaudited) |
|
|
|
Second Quarter
Fiscal 2018 (Projected) |
|
Full
YearFiscal 2018 (Projected) |
GAAP net loss |
|
$(2.9) - $(1.9) |
|
$(7.5) - $(3.5) |
|
|
|
|
|
Estimated income tax
provision |
|
$0.3 |
|
$0.9 |
Estimated interest
expense, net |
|
$0.2 |
|
$0.9 |
Estimated depreciation
and amortization (a) |
|
$3.4 |
|
$14.0 |
Estimated stock-based
compensation expense |
|
$1.0 |
|
$3.7 |
|
|
|
|
|
Non-GAAP adjusted
EBITDA(b) |
|
$2.0 - $3.0 |
|
$12.0 - $16.0 |
- Reflects amortization of intangible assets resulting from
acquisitions and depreciation of fixed assets.
- Assumes no significant change in realized and unrealized
foreign exchange transaction gains and losses.
|
|
|
|
|
Contact: |
|
KVH
Industries, Inc. |
|
FTI
Consulting |
|
|
Donald W.
Reilly |
|
Christine
Mohrmann |
|
|
401-608-8977 |
|
212-850-5600 |
|
|
dreilly@kvh.com |
|
|
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