CHICAGO, Aug. 7, 2017 /PRNewswire/ -- Gogo (NASDAQ: GOGO),
the leading global provider of broadband connectivity products and
services for aviation, today announced its financial results for
the quarter ended June 30, 2017.
Second Quarter 2017 Consolidated Financial Results
- Revenue increased to $172.8
million, up 17% from Q2 2016. Service revenue increased to
$154.1 million, up 21% from Q2 2016,
on a 9% increase in commercial aircraft online to 3,109, a 17%
increase in ATG business aircraft online to 4,453, and increased
customer usage across all segments.
- Net loss increased to $44.2
million, a 10% increase from Q2 2016, and Adjusted
EBITDA(1) decreased to $9.9
million, down 31% from Q2 2016. Both net loss and Adjusted
EBITDA in Q2 2017 included $14.0
million in increased costs related to the launch of 2Ku
service for new and existing airline partners, OEM 2Ku programs,
and costs associated with the development of Gogo's next generation
ATG solution.
- Capital expenditures increased to $74.1
million from $47.6 million in
Q2 2016. Cash CapEx(1) increased to $65.6 million from $39.8
million in Q2 2016 due to an increase in success-based
airborne equipment purchases in advance of heavy 2Ku installations
in the second half of 2017.
"We launched 2Ku service on five new airlines in the quarter and
are on plan to meet our targeted increase in installations during
the second half of the year," said Michael
Small, Gogo's President and CEO. "While these installs
require up-front investment, they will all produce positive returns
in the future."
"Our planned increase in investments in the second quarter lay
the foundation for future growth in revenue and profitability,"
said Barry Rowan, Gogo's Executive
Vice President and CFO. "We expect Adjusted EBITDA to increase
substantially in the second half of 2017 and into 2018, and we are
on track to generate positive free cash flow in 2019."
Second Quarter 2017 Business Segment Financial
Results
Commercial Aviation - North
America (CA-NA)
CA-NA connectivity take rate rose more than 20% in the quarter,
increasing ARPA to more than $141,000
on an annualized basis.
- Aircraft online reached 2,791, up 195 aircraft from Q2 2016. As
of June 30, 2017, CA-NA had
approximately 740 aircraft awarded for installation or
conversion to 2Ku, 60 of which are net new aircraft.
- Total revenue increased to $101.0
million, up 9% from Q2 2016, primarily driven by higher
aircraft online.
- Segment profit decreased to $16.2
million, down 13% from Q2 2016, primarily due to costs
associated with launching 2Ku service and the development
of its next generation ATG solution. Segment profit as a
percentage of segment revenue was 16% in Q2 2017, down from 20% in
Q2 2016.
Commercial Aviation - Rest of World (CA-ROW)
CA-ROW revenue doubled year-over-year for the second consecutive
quarter and ARPA grew 56% to more than $226,000 on an annualized basis as passenger
demand continued to grow.
- Aircraft online reached 318, up 69 aircraft from Q2 2016.
CA-ROW had approximately 620 net new 2Ku awarded but not yet
installed aircraft as of June 30,
2017.
- Total revenue increased to $14.1
million, up 145% from Q2 2016, driven primarily by higher
ARPA and an increase in aircraft online.
- Segment loss increased to $31.4
million from $23.3 million in
Q2 2016, as a result of launching 2Ku service on several new
airline partners and advancing OEM programs.
Business Aviation (BA)
BA service revenue grew 30% with segment profit increasing 33%
and segment profit margin expanding to 44%. This growth
demonstrates the continued strong demand for Gogo's ATG systems and
services in the large and growing market opportunity of more than
20,000 North American business and turboprop aircraft.
- Service revenue increased to $42.2
million, up 30% from Q2 2016, driven primarily by a 17%
increase in ATG systems online and a 14% increase in average
monthly service revenue per ATG unit online.
- Equipment revenue decreased to $15.6
million, down $1.1 million
from Q2 2016.
- Total segment revenue increased to $57.8
million, up 18% from Q2 2016.
- Segment profit increased to $25.2
million, up 33% from Q2 2016. Segment profit as a percentage
of segment revenue was 44% in Q2 2017, up from 39% in Q2 2016, on
an increased mix of higher margin service revenue and lower
engineering, design and development expenses.
Recent Developments
- Launched 2Ku service on five airlines: Air Canada Rouge,
British Airways, JTA, Virgin Atlantic, and Virgin Australia.
- The first OEM installation of 2Ku on an Airbus A350 has been
completed and is ready for delivery to Delta.
- Next generation ATG achieved speeds of 134Mbps in the lab and
remains on track for its expected deployment in 2018, and Gogo
introduced a new satellite modem capable of delivering more than 16
times the throughput of the existing satellite modem.
- BA launched its connected aircraft services platform,
introduced new Smart Cabin Services (SCS) and partnered with
Rockwell Collins to deliver real-time moving maps for its customers
via the newly launched platform.
Business Outlook
Gogo reaffirms all 2017 and long-term guidance previously
provided in the fourth quarter 2016 earnings press release. The
Company expects:
- 2017 2Ku installations of 450 to 550 aircraft, including
approximately 150 in CA-ROW.
- Total revenue at the high end of guidance range of $670 million to $695 million.
- Adjusted EBITDA at the low end of guidance range of
$60 million to $75 million, as a
result of investments in launching 2Ku service for new and
existing airline partners, OEM programs, and development of Gogo's
next generation ATG solution. Adjusted EBITDA is expected to
increase substantially in the second half of 2017 and in 2018.
- Gross capital expenditures of $290
million to $330 million and Cash CapEx of $230 million to $260 million, of which
approximately 70% is related to success-based airborne equipment
purchases.
(1) See Non-GAAP Financial Measures below
Conference Call
The second quarter conference call will be held on August 7th, 2017 at 8:30 a.m. ET. A live webcast of the conference
call, as well as a replay, will be available online on the Investor
Relations section of the company's website at
http://ir.gogoair.com. Participants can also access the call by
dialing (844) 464-3940 (within the United
States and Canada) or (765)
507-2646 (international dialers) and entering conference ID number
54679937.
Non-GAAP Financial Measures
We report certain non-GAAP financial measurements, including
Adjusted EBITDA and Cash CapEx in the supplemental tables
below. Management uses Adjusted EBITDA and Cash CapEx for
business planning purposes, including managing our business against
internally projected results of operations and measuring our
performance and liquidity. These supplemental performance measures
also provide another basis for comparing period to period results
by excluding potential differences caused by non-operational and
unusual or non-recurring items. These supplemental performance
measurements may vary from and may not be comparable to similarly
titled measures by other companies. Adjusted EBITDA and Cash CapEx
are not recognized measurements under accounting principles
generally accepted in the United
States, or GAAP, and when analyzing our performance with
Adjusted EBITDA or liquidity with Cash CapEx, as applicable,
investors should (i) evaluate each adjustment in our reconciliation
to net loss attributable to common stock, and the explanatory
footnotes regarding those adjustments, (ii) use Adjusted EBITDA in
addition to, and not as an alternative to, net loss attributable to
common stock as a measure of operating results, and (iii) use Cash
CapEx in addition to, and not as an alternative to, consolidated
capital expenditures when evaluating our liquidity. No
reconciliation of the forecasted range for Adjusted EBITDA for
fiscal 2017 is included in this release because we are unable to
quantify certain amounts that would be required to be included in
the corresponding GAAP measure without unreasonable efforts and we
believe such reconciliation would imply a degree of precision that
would be confusing or misleading to investors. In particular, we
are not able to provide a reconciliation for the forecasted range
of Adjusted EBITDA due to variability in the timing of aircraft
installations and deinstallations impacting depreciation expense
and amortization of deferred airborne leasing proceeds.
Cautionary Note Regarding Forward-Looking Statements
Certain disclosures in this press release and related
comments by our management include forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements include, without
limitation, statements regarding our business outlook, industry,
business strategy, plans, goals and expectations concerning our
market position, international expansion, future technologies,
future operations, margins, profitability, future efficiencies,
capital expenditures, liquidity and capital resources and other
financial and operating information. When used in this discussion,
the words "anticipate," "assume," "believe," "budget," "continue,"
"could," "estimate," "expect," "intend," "may," "plan,"
"potential," "predict," "project," "should," "will," "future" and
the negative of these or similar terms and phrases are intended to
identify forward-looking statements in this press release.
Forward-looking statements reflect our current expectations
regarding future events, results or outcomes. These expectations
may or may not be realized. Although we believe the expectations
reflected in the forward-looking statements are reasonable, we can
give you no assurance these expectations will prove to have been
correct. Some of these expectations may be based upon assumptions,
data or judgments that prove to be incorrect. Actual events,
results and outcomes may differ materially from our expectations
due to a variety of known and unknown risks, uncertainties and
other factors. Although it is not possible to identify all of these
risks and factors, they include, among others, the following: the
loss of, or failure to realize benefits from, agreements with our
airline partners or any failure to renew any existing agreements
upon expiration or termination; the failure to maintain airline
satisfaction with our equipment or our service; any inability to
timely and efficiently deploy our 2Ku service or develop and deploy
our next-generation ATG solution or other components of our
technology roadmap for any reason, including regulatory delays or
failures, or delays on the part of any of our suppliers, some of
whom are single source, or the failure by our airline partners to
roll out equipment upgrades, new services or adopt new technologies
in order to support increased network capacity demands; the timing
of deinstallation of our equipment from aircraft, including
deinstallations resulting from aircraft retirements and other
deinstallations permitted by certain airline contract provisions;
the loss of relationships with original equipment manufacturers or
dealers; our ability to develop or purchase ATG and satellite
network capacity sufficient to accommodate current and expected
growth in passenger demand in North
America and internationally as we expand; our reliance on
third-party suppliers, some of whom are single source, for
satellite capacity and other services and the equipment we use to
provide services to commercial airlines and their passengers and
business aviation customers; unfavorable economic conditions in the
airline industry and/or the economy as a whole; our ability to
expand our international or domestic operations, including our
ability to grow our business with current and potential future
airline partners; an inability to compete effectively with other
current or future providers of in-flight connectivity services and
other products and services that we offer, including on the basis
of price, service performance and line-fit availability; our
ability to successfully develop and monetize new products and
services such as Gogo Vision and Gogo TV, including those that were
recently released, are currently being offered on a limited or
trial basis, or are in various stages of development; our ability
to certify and install our equipment and deliver our products and
services, including newly developed products and services, on
schedules consistent with our contractual commitments to customers;
the failure of our equipment or material defects or errors in our
software resulting in recalls or substantial warranty claims; a
revocation of, or reduction in, our right to use licensed spectrum,
the availability of other air-to-ground spectrum to a competitor or
the repurposing by a competitor of other spectrum for air-to-ground
use; our use of open source software and licenses; the effects of
service interruptions or delays, technology failures and equipment
failures or malfunctions arising from defects or errors in our
software or defects in or damage to our equipment; the limited
operating history of our CA-ROW segment; contract changes and
implementation issues resulting from decisions by airlines to
transition from the retail model to the airline directed model;
increases in our projected capital expenditures due to, among other
things, unexpected costs incurred in connection with the roll-out
of our technology roadmap or our international expansion;
compliance with U.S. and foreign government regulations and
standards, including those related to regulation of the Internet,
including e-commerce or online video distribution changes, and the
installation and operation of satellite equipment and our ability
to obtain and maintain all necessary regulatory approvals to
install and operate our equipment in the
United States and foreign jurisdictions; our, or our
technology suppliers', inability to effectively innovate; costs
associated with defending pending or future intellectual property
infringement and other litigation or claims; our ability to protect
our intellectual property; breaches of the security of our
information technology network, resulting in unauthorized access to
our customers' credit card information or other personal
information; any negative outcome or effects of future litigation;
our substantial indebtedness; limitations and restrictions in the
agreements governing our indebtedness and our ability to service
our indebtedness; our ability to obtain additional financing on
acceptable terms or at all; fluctuations in our operating results;
our ability to attract and retain customers and to capitalize on
revenue from our platform; the demand for and market acceptance of
our products and services; changes or developments in the
regulations that apply to us, our business and our industry,
including changes or developments affecting the ability of
passengers or airlines to use our in-flight connectivity services,
including the recent U.S. and U.K. bans on the use of certain
personal devices such as laptops and tablets on certain aircraft
flying certain routes; a future act or threat of terrorism,
cyber-security attack or other events that could result in adverse
regulatory changes or developments as referenced above, or
otherwise adversely affect our business and industry; our ability
to attract and retain qualified employees, including key personnel;
the effectiveness of our marketing and advertising and our ability
to maintain and enhance our brands; our ability to manage our
growth in a cost-effective manner and integrate and manage
acquisitions; compliance with anti-corruption laws and regulations
in the jurisdictions in which we operate, including the Foreign
Corrupt Practices Act and the (U.K.) Bribery Act 2010; restrictions
on the ability of U.S. companies to do business in foreign
countries, including, among others, restrictions imposed by the
U.S. Office of Foreign Assets Control; difficulties in collecting
accounts receivable; our ability to successfully implement our new
enterprise resource planning system and other improvements to
systems and procedures needed to support our growth.
Additional information concerning these and other factors can
be found under the caption "Risk Factors" in our Annual Report on
Form 10-K for the year ended December 31,
2016 filed with the Securities and Exchange Commission on
February 27, 2017 and in our
quarterly report on Form 10-Q for the quarter ended March 31, 2017 as filed with the SEC on
May 4, 2017.
Any one of these factors or a combination of these factors
could materially affect our financial condition or future results
of operations and could influence whether any forward-looking
statements contained in this report ultimately prove to be
accurate. Our forward-looking statements are not guarantees of
future performance, and you should not place undue reliance on
them. All forward-looking statements speak only as of the date made
and we undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
About Gogo
Gogo is the in-flight internet company. We are the leading
global provider of broadband connectivity products and services for
aviation. We design and source innovative network solutions that
connect aircraft to the Internet, and develop software and
platforms that enable customizable solutions for and by our
aviation partners. Once connected, we provide industry
leading reliability around the world. Our mission is to help
aviation go farther by making planes fly smarter, so our aviation
partners perform better and their passengers travel happier.
You can find Gogo's products and services on thousands of
aircraft operated by the leading global commercial airlines and
thousands of private aircraft, including those of the largest
fractional ownership operators. Gogo is headquartered in
Chicago, IL with additional
facilities in Broomfield, CO and
locations across the globe. Connect with us at gogoair.com.
Investor Relations
Contact:
|
Media Relations
Contact:
|
Varvara
Alva
|
Meredith
Payette
|
312-517-6460
|
312-517-6216
|
ir@gogoair.com
|
pr@gogoair.com
|
|
|
|
|
Gogo Inc. and
Subsidiaries
|
|
Unaudited
Condensed Consolidated Statements of Operations
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
|
For the Six
Months
|
|
|
Ended June
30,
|
|
|
Ended June
30,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
$
|
154,076
|
|
|
$
|
127,587
|
|
|
$
|
300,571
|
|
|
$
|
246,307
|
|
Equipment
revenue
|
|
18,724
|
|
|
|
19,952
|
|
|
|
37,635
|
|
|
|
42,978
|
|
Total
revenue
|
|
172,800
|
|
|
|
147,539
|
|
|
|
338,206
|
|
|
|
289,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service
revenue (exclusive of items shown below)
|
|
69,127
|
|
|
|
53,396
|
|
|
|
133,940
|
|
|
|
108,250
|
|
Cost of equipment
revenue (exclusive of items shown below)
|
|
14,649
|
|
|
|
12,477
|
|
|
|
26,297
|
|
|
|
26,225
|
|
Engineering, design
and development
|
|
35,685
|
|
|
|
24,718
|
|
|
|
71,949
|
|
|
|
46,366
|
|
Sales and
marketing
|
|
16,564
|
|
|
|
16,750
|
|
|
|
30,959
|
|
|
|
31,492
|
|
General and
administrative
|
|
23,549
|
|
|
|
22,388
|
|
|
|
46,098
|
|
|
|
43,377
|
|
Depreciation and
amortization
|
|
30,562
|
|
|
|
24,906
|
|
|
|
60,997
|
|
|
|
49,263
|
|
Total operating
expenses
|
|
190,136
|
|
|
|
154,635
|
|
|
|
370,240
|
|
|
|
304,973
|
|
Operating
loss
|
|
(17,336)
|
|
|
|
(7,096)
|
|
|
|
(32,034)
|
|
|
|
(15,688)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income)
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
(771)
|
|
|
|
(166)
|
|
|
|
(1,316)
|
|
|
|
(212)
|
|
Interest
expense
|
|
27,226
|
|
|
|
17,557
|
|
|
|
54,169
|
|
|
|
33,853
|
|
Loss on extinguishment
of debt
|
|
-
|
|
|
|
15,406
|
|
|
|
-
|
|
|
|
15,406
|
|
Adjustment of deferred
financing costs
|
|
-
|
|
|
|
77
|
|
|
|
-
|
|
|
|
(792)
|
|
Other (income)
expense
|
|
56
|
|
|
|
3
|
|
|
|
94
|
|
|
|
(171)
|
|
Total other
expense
|
|
26,511
|
|
|
|
32,877
|
|
|
|
52,947
|
|
|
|
48,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(43,847)
|
|
|
|
(39,973)
|
|
|
|
(84,981)
|
|
|
|
(63,772)
|
|
Income tax
provision
|
|
362
|
|
|
|
221
|
|
|
|
595
|
|
|
|
528
|
|
Net
loss
|
$
|
(44,209)
|
|
|
$
|
(40,194)
|
|
|
$
|
(85,576)
|
|
|
$
|
(64,300)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to common stock per share—basic and
diluted
|
$
|
(0.56)
|
|
|
$
|
(0.51)
|
|
|
$
|
(1.08)
|
|
|
$
|
(0.82)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares—basic and diluted
|
|
79,334
|
|
|
|
78,849
|
|
|
|
79,237
|
|
|
|
78,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gogo Inc. and
Subsidiaries
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
(in thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
December
31,
|
|
|
2017
|
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
96,416
|
|
|
$
|
117,302
|
|
Short-term
investments
|
|
283,241
|
|
|
|
338,477
|
|
Total cash, cash
equivalents and short-term investments
|
|
379,657
|
|
|
|
455,779
|
|
Accounts receivable,
net of allowances of $657 and $499, respectively
|
|
87,097
|
|
|
|
73,743
|
|
Inventories
|
|
52,041
|
|
|
|
50,266
|
|
Prepaid expenses and
other current assets
|
|
20,870
|
|
|
|
24,942
|
|
Total current
assets
|
|
539,665
|
|
|
|
604,730
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
583,245
|
|
|
|
519,810
|
|
Intangible assets,
net
|
|
90,296
|
|
|
|
85,175
|
|
Goodwill
|
|
620
|
|
|
|
620
|
|
Long-term restricted
cash
|
|
6,873
|
|
|
|
7,773
|
|
Other non-current
assets
|
|
56,557
|
|
|
|
28,088
|
|
Total non-current
assets
|
|
737,591
|
|
|
|
641,466
|
|
Total
assets
|
$
|
1,277,256
|
|
|
$
|
1,246,196
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' deficit
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
29,471
|
|
|
$
|
31,689
|
|
Accrued
liabilities
|
|
148,569
|
|
|
|
132,055
|
|
Accrued airline
revenue share
|
|
15,504
|
|
|
|
15,521
|
|
Deferred
revenue
|
|
36,817
|
|
|
|
32,722
|
|
Deferred airborne
lease incentives
|
|
35,342
|
|
|
|
36,277
|
|
Current portion of
long-term debt and capital leases
|
|
2,613
|
|
|
|
2,799
|
|
Total current
liabilities
|
|
268,316
|
|
|
|
251,063
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
880,371
|
|
|
|
800,715
|
|
Deferred airborne
lease incentives
|
|
117,459
|
|
|
|
135,879
|
|
Deferred tax
liabilities
|
|
8,791
|
|
|
|
8,264
|
|
Other non-current
liabilities
|
|
118,833
|
|
|
|
90,668
|
|
Total non-current
liabilities
|
|
1,125,454
|
|
|
|
1,035,526
|
|
Total
liabilities
|
|
1,393,770
|
|
|
|
1,286,589
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies (Note 11)
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Stockholders'
deficit
|
|
|
|
|
|
|
|
Common
stock
|
|
9
|
|
|
|
9
|
|
Additional
paid-in-capital
|
|
888,100
|
|
|
|
879,135
|
|
Accumulated other
comprehensive loss
|
|
(1,673)
|
|
|
|
(2,163)
|
|
Accumulated
deficit
|
|
(1,002,950)
|
|
|
|
(917,374)
|
|
Total stockholders'
deficit
|
|
(116,514)
|
|
|
|
(40,393)
|
|
Total liabilities
and stockholders' deficit
|
$
|
1,277,256
|
|
|
$
|
1,246,196
|
|
|
|
|
|
|
|
|
|
See the Notes to
Unaudited Condensed Consolidated Financial
Statements
|
|
|
|
|
|
|
|
Gogo Inc. and
Subsidiaries
|
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
|
(in
thousands)
|
|
|
|
|
|
|
For the Six
Months
|
|
|
Ended June
30,
|
|
|
2017
|
|
|
2016
|
|
Operating
activities:
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(85,576)
|
|
|
$
|
(64,300)
|
|
Adjustments to
reconcile net loss to cash used in operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
60,997
|
|
|
|
49,263
|
|
Loss on asset
disposals/abandonments
|
|
3,477
|
|
|
|
924
|
|
Deferred income
taxes
|
|
527
|
|
|
|
420
|
|
Stock-based
compensation expense
|
|
9,724
|
|
|
|
7,986
|
|
Loss of extinguishment
of debt
|
|
-
|
|
|
|
15,406
|
|
Amortization of
deferred financing costs
|
|
1,799
|
|
|
|
2,163
|
|
Accretion and
amortization of debt discount and premium
|
|
9,142
|
|
|
|
8,508
|
|
Adjustment of deferred
financing costs
|
|
-
|
|
|
|
(792)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(13,316)
|
|
|
|
4,409
|
|
Inventories
|
|
(1,775)
|
|
|
|
(4,155)
|
|
Prepaid expenses and
other current assets
|
|
4,468
|
|
|
|
(12,428)
|
|
Accounts
payable
|
|
1,444
|
|
|
|
(1,598)
|
|
Accrued
liabilities
|
|
2,830
|
|
|
|
(2,873)
|
|
Deferred airborne
lease incentives
|
|
6,374
|
|
|
|
8,374
|
|
Deferred
revenue
|
|
5,024
|
|
|
|
14,235
|
|
Deferred
rent
|
|
103
|
|
|
|
443
|
|
Accrued airline
revenue share
|
|
(27)
|
|
|
|
1,005
|
|
Accrued
interest
|
|
963
|
|
|
|
3,012
|
|
Other non-current
assets and liabilities
|
|
(3,790)
|
|
|
|
(5,641)
|
|
Net cash used in
operating activities
|
|
2,388
|
|
|
|
24,361
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
Proceeds from the sale
of property and equipment
|
|
-
|
|
|
|
1
|
|
Purchases of property
and equipment
|
|
(128,892)
|
|
|
|
(71,048)
|
|
Acquisition of
intangible assets—capitalized software
|
|
(16,851)
|
|
|
|
(13,993)
|
|
Purchases of
short-term investments
|
|
(193,845)
|
|
|
|
(259,068)
|
|
Redemptions of
short-term investments
|
|
249,081
|
|
|
|
99,886
|
|
(Decrease) increase in
restricted cash
|
|
500
|
|
|
|
(14)
|
|
Net cash used in
investing activities
|
|
(90,007)
|
|
|
|
(244,236)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
Proceeds from the
issuance of senior secured notes
|
|
70,200
|
|
|
|
525,000
|
|
Payments on amended
and restated credit agreement
|
|
-
|
|
|
|
(310,132)
|
|
Payment of issuance
costs
|
|
(1,485)
|
|
|
|
(10,610)
|
|
Payments on capital
leases
|
|
(1,540)
|
|
|
|
(1,218)
|
|
Stock-based
compensation activity
|
|
(759)
|
|
|
|
(346)
|
|
Net cash provided
by financing activities
|
|
66,416
|
|
|
|
202,694
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
317
|
|
|
|
(233)
|
|
|
|
|
|
|
|
|
|
Decrease in cash
and cash equivalents
|
|
(20,886)
|
|
|
|
(17,414)
|
|
Cash and cash
equivalents at beginning of period
|
|
117,302
|
|
|
|
147,342
|
|
Cash and cash
equivalents at end of period
|
$
|
96,416
|
|
|
$
|
129,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gogo Inc. and
Subsidiaries
|
|
Supplemental
Information – Key Operating Metrics
|
|
Commercial
Aviation North America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
|
For the Six
Months
|
|
|
Ended June
30,
|
|
|
Ended June
30
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft online (at
period end)
|
|
2,791
|
|
|
|
2,596
|
|
|
|
2,791
|
|
|
|
2,596
|
|
Aircraft equivalents
(average during the period)
|
|
2,816
|
|
|
|
2,622
|
|
|
|
2,794
|
|
|
|
2,567
|
|
Average monthly
service revenue per aircraft equivalent (ARPA)
|
$
|
11,784
|
|
|
$
|
11,483
|
|
|
$
|
11,789
|
|
|
$
|
11,314
|
|
Gross passenger
opportunity (GPO) (in thousands)
|
|
108,480
|
|
|
|
100,458
|
|
|
|
204,088
|
|
|
|
190,461
|
|
Total average revenue
per session (ARPS)
|
$
|
10.86
|
|
|
$
|
12.94
|
|
|
$
|
11.01
|
|
|
$
|
12.99
|
|
Connectivity take
rate
|
|
7.7
|
%
|
|
|
6.3
|
%
|
|
|
8.0
|
%
|
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Aviation Rest of World
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
|
For the Six
Months
|
|
|
Ended June
30,
|
|
|
Ended June
30,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft online (at
period end)
|
|
318
|
|
|
|
249
|
|
|
|
318
|
|
|
|
249
|
|
Aircraft equivalents
(average during the period)
|
|
247
|
|
|
|
196
|
|
|
|
227
|
|
|
|
186
|
|
ARPA
|
$
|
18,872
|
|
|
$
|
12,065
|
|
|
$
|
17,932
|
|
|
$
|
11,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Aircraft online. We define aircraft online as the total
number of commercial aircraft on which our equipment is installed
and service has been made commercially available as of the last day
of each period presented. We assign aircraft to CA-NA or
CA-ROW at the time of contract signing as follows: (i) all aircraft
operated by North American airlines and under contract for ATG or
ATG-4 service are assigned to CA-NA, (ii) all aircraft operated by
North American airlines and under a contract for satellite service
are assigned to CA-NA or CA-ROW based on whether the routes flown
by such aircraft under the contract are anticipated to be
predominantly within or outside of North
America at the time the contract is signed, and (iii) all
aircraft operated by non-North American airlines and under a
contract are assigned to CA-ROW.
- Aircraft equivalents. We define aircraft equivalents for
a segment as the total number of commercial aircraft online (as
defined above) multiplied by the percentage of flights flown by
such aircraft within the scope of that segment, rounded to the
nearest whole aircraft and expressed as an average of the month end
figures for each month in the period. This methodology takes
into account the fact that during a particular period certain
aircraft may fly routes outside the scope of the segment to which
they are assigned for purposes of the calculation of aircraft
online.
- Average monthly service revenue per aircraft equivalent
("ARPA"). We define ARPA for a segment as the aggregate
service revenue plus monthly service fees, some of which are
reported as a reduction to cost of service revenue for that segment
for the period divided by the number of months in the period, and
further divided by the number of aircraft equivalents (as defined
above) for that segment during the period.
- Gross passenger opportunity ("GPO"). We define
GPO as the aggregate number of passengers who board commercial
aircraft on which Gogo service has been available at any time
during the period presented. When actual passenger counts
are available directly from our airline partners, we aggregate such
counts across flights on Gogo-equipped aircraft. When not
available directly from our airline partners, we estimate
GPO. Estimated GPO is calculated by first estimating the
number of flights occurring on each Gogo-equipped aircraft, then
multiplying by the number of seats on that aircraft, and finally
multiplying by a seat factor that is determined from historical
information provided to us in arrears by our airline
partners. The estimated number of flights is derived from
real-time flight information provided to our front-end systems by
Air Radio Inc. (ARINC), direct airline feeds and supplementary
third-party data sources. These aircraft-level estimates are
then aggregated with any available airline-provided passenger
counts to obtain total GPO.
- Total average revenue per session ("ARPS"). We define
ARPS as revenue from Passenger Connectivity, excluding non-session
related revenue, divided by the total number of sessions during the
period. A session, or a "use" of Passenger Connectivity, is defined
as the use by a unique passenger of Passenger Connectivity on a
flight segment. Multiple logins or purchases under the same user
name during one flight segment count as only one session.
- Connectivity take rate. We define connectivity take rate
as the number of sessions during the period expressed as a
percentage of GPO. Included in our connectivity take-rate
calculation are sessions for which we did not receive revenue,
including those provided pursuant to free promotional campaigns
and, to a lesser extent, as a result of complimentary passes
distributed by our customer service representatives for unforeseen
technical issues. For the periods listed above, the number of
sessions for which we did not receive revenue was not
material.
Business
Aviation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
|
For the Six
Months
|
|
|
Ended June
30,
|
|
|
Ended June
30,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft online (at
period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Satellite
|
|
5,464
|
|
|
|
5,458
|
|
|
|
5,464
|
|
|
|
5,458
|
|
ATG
|
|
4,453
|
|
|
|
3,795
|
|
|
|
4,453
|
|
|
|
3,795
|
|
Average monthly
service revenue per aircraft online
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Satellite
|
$
|
236
|
|
|
$
|
226
|
|
|
$
|
230
|
|
|
$
|
220
|
|
ATG
|
|
2,872
|
|
|
|
2,529
|
|
|
|
2,835
|
|
|
|
2,514
|
|
Units Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Satellite
|
|
99
|
|
|
|
108
|
|
|
|
187
|
|
|
|
241
|
|
ATG
|
|
197
|
|
|
|
191
|
|
|
|
386
|
|
|
|
393
|
|
Average equipment
revenue per unit sold (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Satellite
|
$
|
42
|
|
|
$
|
44
|
|
|
$
|
44
|
|
|
$
|
43
|
|
ATG
|
|
52
|
|
|
|
57
|
|
|
|
54
|
|
|
|
58
|
|
- Satellite aircraft online. We define satellite aircraft
online as the total number of business aircraft for which we
provide satellite services as of the last day of each period
presented.
- ATG aircraft online. We define ATG aircraft online as
the total number of business aircraft for which we provide ATG
services as of the last day of each period presented.
- Average monthly service revenue per satellite aircraft
online. We define average monthly service revenue per satellite
aircraft online as the aggregate satellite service revenue for the
period divided by the number of months in the period, divided by
the number of satellite aircraft online during the period
(expressed as an average of the month end figures for each month in
such period).
- Average monthly service revenue per ATG aircraft online.
We define average monthly service revenue per ATG aircraft online
as the aggregate ATG service revenue for the period divided by the
number of months in the period, divided by the number of ATG
aircraft online during the period (expressed as an average of the
month end figures for each month in such period).
- Units sold. We define units sold as the number of
satellite or ATG units for which we recognized revenue during the
period. In the three and six months ended June 30, 2017, we recognized revenue on 3 Gogo
Biz 4G units that were previously deferred.
- Average equipment revenue per satellite unit sold. We
define average equipment revenue per satellite unit sold as the
aggregate equipment revenue earned from all satellite units sold
during the period, divided by the number of satellite units
sold.
- Average equipment revenue per ATG unit sold. We define
average equipment revenue per ATG unit sold as the aggregate
equipment revenue from all ATG units sold during the period,
divided by the number of ATG units sold.
|
|
|
Gogo Inc. and
Subsidiaries
|
Supplemental
Information – Segment Revenue and Segment Profit
(Loss)(1)
|
(in thousands,
Unaudited)
|
|
|
|
For the Three
Months Ended
|
|
|
June 30,
2017
|
|
|
CA-NA
|
|
|
CA-ROW
|
|
|
BA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
|
98,679
|
|
|
$
|
13,188
|
|
|
$
|
42,209
|
|
Equipment
revenue
|
|
|
2,272
|
|
|
|
885
|
|
|
|
15,567
|
|
Total
revenue
|
|
$
|
100,951
|
|
|
$
|
14,073
|
|
|
$
|
57,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
(loss)
|
|
$
|
16,191
|
|
|
$
|
(31,403)
|
|
|
$
|
25,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
|
June 30,
2016
|
|
|
CA-NA
|
|
|
CA-ROW
|
|
|
BA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
|
89,808
|
|
|
$
|
5,376
|
|
|
$
|
32,403
|
|
Equipment
revenue
|
|
|
2,879
|
|
|
|
368
|
|
|
|
16,705
|
|
Total
revenue
|
|
$
|
92,687
|
|
|
$
|
5,744
|
|
|
$
|
49,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
(loss)
|
|
$
|
18,641
|
|
|
$
|
(23,300)
|
|
|
$
|
19,016
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
|
June 30,
2017
|
|
|
CA-NA
|
|
|
CA-ROW
|
|
|
BA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
|
195,824
|
|
|
$
|
22,556
|
|
|
$
|
82,191
|
|
Equipment
revenue
|
|
|
3,943
|
|
|
|
1,803
|
|
|
|
31,889
|
|
Total
revenue
|
|
$
|
199,767
|
|
|
$
|
24,359
|
|
|
$
|
114,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
(loss)
|
|
$
|
27,350
|
|
|
$
|
(57,958)
|
|
|
$
|
51,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
|
June 30,
2016
|
|
|
CA-NA
|
|
|
CA-ROW
|
|
|
BA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
|
173,217
|
|
|
$
|
9,978
|
|
|
$
|
63,112
|
|
Equipment
revenue
|
|
|
6,517
|
|
|
|
371
|
|
|
|
36,090
|
|
Total
revenue
|
|
$
|
179,734
|
|
|
$
|
10,349
|
|
|
$
|
99,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
(loss)
|
|
$
|
32,457
|
|
|
$
|
(43,021)
|
|
|
$
|
39,240
|
|
|
|
(1)
|
Segment profit (loss)
is defined as net income (loss) attributable to common stock before
interest expense, interest income, income taxes, depreciation and
amortization, certain non-cash charges (including amortization of
deferred airborne lease incentives and stock compensation expense)
and other income (expense).
|
|
|
|
Gogo Inc. and
Subsidiaries
|
Supplemental
Information – Segment Cost of Service
Revenue(1)
|
(in thousands,
Unaudited)
|
|
|
For the Three
Months
|
|
Ended June
30,
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
CA-NA
|
$
|
37,954
|
|
|
$
|
33,797
|
BA
|
|
9,877
|
|
|
|
8,898
|
CA-ROW
|
|
21,296
|
|
|
|
10,701
|
Total
|
$
|
69,127
|
|
|
$
|
53,396
|
|
|
|
|
For the Six
Months
|
|
Ended June
30,
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
CA-NA
|
$
|
74,701
|
|
|
$
|
70,371
|
BA
|
|
19,386
|
|
|
|
17,317
|
CA-ROW
|
|
39,853
|
|
|
|
20,562
|
Total
|
$
|
133,940
|
|
|
$
|
108,250
|
|
|
|
|
|
|
|
(1) Excludes
depreciation and amortization expense.
|
|
|
Gogo Inc. and
Subsidiaries
|
Supplemental
Information – Segment Cost of Equipment
Revenue(1)
|
(in thousands,
Unaudited)
|
|
|
For the Three
Months
|
|
Ended June
30,
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
CA-NA
|
$
|
3,214
|
|
|
$
|
2,862
|
BA
|
|
10,600
|
|
|
|
9,365
|
CA-ROW
|
|
835
|
|
|
|
250
|
Total
|
$
|
14,649
|
|
|
$
|
12,477
|
|
|
|
|
|
|
|
|
For the Six
Months
|
|
Ended June
30,
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
CA-NA
|
$
|
4,581
|
|
|
$
|
6,809
|
BA
|
|
20,237
|
|
|
|
19,166
|
CA-ROW
|
|
1,479
|
|
|
|
250
|
Total
|
$
|
26,297
|
|
|
$
|
26,225
|
|
|
|
|
|
|
|
(1) Excludes
depreciation and amortization expense.
|
|
|
|
|
|
|
Gogo Inc. and
Subsidiaries
|
|
Reconciliation of
GAAP to Non-GAAP Measures
|
|
(in thousands,
except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
|
For the Six
Months
|
|
|
Ended June
30,
|
|
|
Ended June
30,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to common stock (GAAP)
|
$
|
(44,209)
|
|
|
$
|
(40,194)
|
|
|
$
|
(85,576)
|
|
|
$
|
(64,300)
|
|
Interest
expense
|
|
27,226
|
|
|
|
17,557
|
|
|
|
54,169
|
|
|
|
33,853
|
|
Interest
income
|
|
(771)
|
|
|
|
(166)
|
|
|
|
(1,316)
|
|
|
|
(212)
|
|
Income tax
provision
|
|
362
|
|
|
|
221
|
|
|
|
595
|
|
|
|
528
|
|
Depreciation and
amortization
|
|
30,562
|
|
|
|
24,906
|
|
|
|
60,997
|
|
|
|
49,263
|
|
EBITDA
|
|
13,170
|
|
|
|
2,324
|
|
|
|
28,869
|
|
|
|
19,132
|
|
Stock-based
compensation expense
|
|
5,394
|
|
|
|
3,788
|
|
|
|
9,724
|
|
|
|
7,986
|
|
Amortization of
deferred airborne lease incentives
|
|
(8,630)
|
|
|
|
(7,241)
|
|
|
|
(17,978)
|
|
|
|
(12,885)
|
|
Loss on extinguishment
of debt
|
|
-
|
|
|
|
15,406
|
|
|
|
-
|
|
|
|
15,406
|
|
Adjustment of deferred
financing costs
|
|
-
|
|
|
|
77
|
|
|
|
-
|
|
|
|
(792)
|
|
Adjusted
EBITDA
|
$
|
9,934
|
|
|
$
|
14,354
|
|
|
$
|
20,615
|
|
|
$
|
28,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
CAPEX:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated capital
expenditures (GAAP) (1)
|
$
|
(74,135)
|
|
|
$
|
(47,615)
|
|
|
$
|
(145,743)
|
|
|
$
|
(85,041)
|
|
Change in deferred
airborne lease incentives (2)
|
|
(111)
|
|
|
|
683
|
|
|
|
3,505
|
|
|
|
8,344
|
|
Amortization of
deferred airborne lease incentives (2)
|
|
8,608
|
|
|
|
7,175
|
|
|
|
17,917
|
|
|
|
12,761
|
|
Cash CAPEX
|
$
|
(65,638)
|
|
|
$
|
(39,757)
|
|
|
$
|
(124,321)
|
|
|
$
|
(63,936)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
See unaudited
condensed consolidated statements of cash flows.
|
(2)
|
Excludes deferred
airborne lease incentives and related amortization associated with
STCs for the three and six month periods ended June 30, 2017 and
2016 as STC costs are expensed as incurred as part of Engineering,
Design and Development.
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ending
|
|
|
|
December 31,
2017
|
|
|
Cash CapEx
Guidance:
|
Low
|
|
|
High
|
|
|
Consolidated capital
expenditures (GAAP)
|
$
|
(290,000)
|
|
|
$
|
(330,000)
|
|
|
Deferred airborne
lease incentives
|
|
60,000
|
|
|
|
70,000
|
|
|
Cash CapEx
|
$
|
(230,000)
|
|
|
$
|
(260,000)
|
|
|
|
|
(3)
|
See unaudited
condensed consolidated statements of cash flows.
|
(4)
|
Excludes deferred
airborne lease incentives and related amortization associated with
STCs for the three month periods ended June 30, 2017 and 2016 as
STC costs are expensed as incurred as part of Engineering, Design
and Development.
|
Definition of Non-GAAP Measures
EBITDA represents net income (loss) attributable to common stock
before income taxes, interest income, interest expense,
depreciation expense and amortization of other intangible
assets.
Adjusted EBITDA represents EBITDA adjusted for (i) stock-based
compensation expense, (ii) amortization of deferred airborne lease
incentives (iii) loss on extinguishment of debt and (iv) adjustment
of deferred financing costs. Our management believes that the use
of Adjusted EBITDA eliminates items that, management believes, have
less bearing on our operating performance, thereby highlighting
trends in our core business which may not otherwise be apparent. It
also provides an assessment of controllable expenses, which are
indicators management uses to determine whether current spending
decisions need to be adjusted in order to meet financial goals and
achieve optimal financial performance.
We believe the exclusion of stock-based compensation expense
from Adjusted EBITDA is appropriate given the significant variation
in expense that can result from using the Black-Scholes model to
determine the fair value of such compensation. The fair value of
our stock options is determined using the Black-Scholes model and
varies based on fluctuations in the assumptions used in this model,
including inputs that are not necessarily directly related to the
performance of our business, such as the expected volatility, the
risk-free interest rate and the expected life of the options.
Therefore, we believe the exclusion of this cost provides a clearer
view of the operating performance of our business. Further, stock
option grants made at a certain price and point in time do not
necessarily reflect how our business is performing at any
particular time. While we believe that investors should have
information about any dilutive effect of outstanding options and
the cost of that compensation, we also believe that stockholders
should have the ability to consider our performance using a
non-GAAP financial measure that excludes these costs and that
management uses to evaluate our business.
We believe the exclusion of the amortization of deferred
airborne lease incentives from Adjusted EBITDA is useful as it
allows an investor to view operating performance across time
periods in a manner consistent with how management measures segment
profit and loss (see Note 14, "Business Segments and Major
Customers," for a description of segment profit (loss) in our
unaudited condensed consolidated financial statements). Management
evaluates segment profit and loss in this manner, excluding the
amortization of deferred airborne lease incentives, because such
presentation reflects operating decisions and activities from the
current period, without regard to the prior period decision or the
form of connectivity agreements. See "—Key Components of
Consolidated Statements of Operations—Cost of Service
Revenue—Commercial Aviation North America and Rest of World" in our
2016 10-K for a discussion of the accounting treatment of deferred
airborne lease incentives.
We believe it is useful to an understanding of our operating
performance to exclude the loss on extinguishment of debt and
adjustment of deferred financing costs from Adjusted EBITDA because
of the non-recurring nature of these charges.
We also present Adjusted EBITDA as a supplemental performance
measure because we believe that this measure provides investors,
securities analysts and other users of our financial statements
with important supplemental information with which to evaluate our
performance and to enable them to assess our performance on the
same basis as management.
Cash CAPEX represents capital expenditures net of airborne
equipment proceeds received from the airlines and incentives paid
to us by landlords under certain facilities leases. We believe Cash
CAPEX provides a more representative indication of our liquidity
requirements with respect to capital expenditures, as under certain
agreements with our airline partners we are reimbursed for all or a
substantial portion of the cost of our airborne equipment, thereby
reducing our cash capital requirements.
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SOURCE Gogo