CARLSBAD, Calif., Feb. 7, 2019 /PRNewswire/ -- Viasat Inc. (NASDAQ:
VSAT), a global communications company, today announced
financial results for the fiscal third quarter ended December 31, 2018.
"We are continuing to execute on our objective of converting
prior growth investments in advanced networking capabilities,
aviation type approvals, new geographic markets and the ViaSat-2
satellite and network infrastructure into strong revenue and
Adjusted EBITDA gains in fiscal year 2019 and beyond," said
Mark Dankberg, Viasat chairman and
CEO. "Third quarter revenue and Adjusted EBITDA surged as we
executed on our substantial new contract awards for our latest
generation commercial IFC and government networking products. Many
of those product shipments translate directly or indirectly to
ongoing services revenue in future periods. Satellite services
revenues reached record levels on an expanding set of vertical
markets, and generated significant earnings gains compared to the
prior year period, as well as this fiscal year's second quarter.
Record year-to-date new contract awards and a favorable
book-to-bill ratio, combined with nascent offerings in attractive
growth markets, indicate opportunities for sustained revenue and
Adjusted EBITDA growth through the balance of fiscal year 2019,
into fiscal year 2020, and beyond."
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Results
|
|
|
|
|
|
|
(In millions, except
per share data)
|
Q3
FY19
|
Q3
FY18
|
Year-Over-Year
Change
|
First 9
Months
FY19
|
First 9
Months
FY18
|
Year-Over-Year
Change
|
Revenues
|
$554.7
|
$381.8
|
45%
|
$1,511.0
|
$1,155.0
|
31%
|
Net
loss1
|
($10.4)
|
($24.6)
|
-58%
|
($70.1)
|
($47.4)
|
48%
|
Non-GAAP net income
(loss)1
|
$6.9
|
($2.4)
|
*
|
($19.5)
|
$5.3
|
*
|
Adjusted
EBITDA
|
$108.7
|
$56.2
|
93%
|
$231.1
|
$179.4
|
29%
|
Diluted per share net
loss1
|
($0.17)
|
($0.42)
|
-60%
|
($1.17)
|
($0.81)
|
44%
|
Non-GAAP diluted per
share net income (loss)1
|
$0.12
|
($0.04)
|
*
|
($0.33)
|
$0.09
|
*
|
Fully diluted
weighted average shares2
|
60.2
|
58.6
|
3%
|
59.7
|
58.2
|
3%
|
|
|
|
|
|
|
|
New contract
awards3
|
$448.6
|
$436.0
|
3%
|
$1,756.9
|
$1,262.6
|
39%
|
Sales
backlog4
|
$1,827.8
|
$1,128.7
|
62%
|
$1,827.8
|
$1,128.7
|
62%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Results
|
|
|
|
|
|
|
(In
millions)
|
Q3
FY19
|
Q3
FY18
|
Year-Over-Year
Change
|
First 9
Months
FY19
|
First 9
Months
FY18
|
Year-Over-Year
Change
|
Satellite
Services
|
|
|
|
|
|
|
New contract
awards3
|
$185.4
|
$149.3
|
24%
|
$503.6
|
$448.3
|
12%
|
Revenues
|
$177.7
|
$144.5
|
23%
|
$494.2
|
$444.3
|
11%
|
Operating
(loss) profit5
|
($10.2)
|
$1.7
|
*
|
($65.0)
|
$33.1
|
*
|
Adjusted
EBITDA
|
$56.7
|
$46.4
|
22%
|
$130.8
|
$163.9
|
-20%
|
|
|
|
|
|
|
|
Commercial
Networks
|
|
|
|
|
|
|
New contract
awards
|
$107.4
|
$87.3
|
23%
|
$344.7
|
$184.4
|
87%
|
Revenues
|
$127.0
|
$55.5
|
129%
|
$336.6
|
$157.1
|
114%
|
Operating
loss5
|
($31.2)
|
($53.5)
|
-42%
|
($117.4)
|
($179.0)
|
-34%
|
Adjusted
EBITDA
|
($17.0)
|
($38.0)
|
-55%
|
($74.3)
|
($133.0)
|
-44%
|
|
|
|
|
|
|
|
Government
Systems
|
|
|
|
|
|
|
New contract
awards
|
$155.8
|
$199.4
|
-22%
|
$908.6
|
$629.9
|
44%
|
Revenues
|
$250.1
|
$181.8
|
38%
|
$680.3
|
$553.6
|
23%
|
Operating
profit5
|
$49.9
|
$29.7
|
68%
|
$119.7
|
$96.5
|
24%
|
Adjusted
EBITDA
|
$69.0
|
$47.8
|
44%
|
$174.7
|
$148.5
|
18%
|
|
|
|
|
|
|
|
|
|
1
|
Attributable to
Viasat, Inc. common stockholders.
|
2
|
As the three and nine
months ended December 31, 2018 and 2017 financial information
resulted in a net loss, the weighted average number of shares used
to calculate basic and diluted net loss per share is the same, as
diluted shares would be anti-dilutive.
|
3
|
Awards exclude future
revenue under recurring consumer commitment
arrangements.
|
4
|
Amounts include
certain backlog adjustments due to contract changes and amendments.
Backlog does not include anticipated purchase orders and requests
for the installation of IFC systems or future recurring in-flight
internet service revenues under our commercial in-flight internet
agreements in our Commercial Networks and Satellite Services
segments, respectively. Starting with the first quarter of
fiscal year 2019, upon adoption of ASC 606, our backlog includes
contracts with subscribers for fixed broadband services in our
Satellite Services segment. Backlog as of December 31, 2017 does
not include contracts with our subscribers for fixed broadband
services in our Satellite Services segment.
|
5
|
Before corporate and
amortization of acquired intangible assets.
|
*
|
Percentage not
meaningful.
|
Satellite Services
The Company's Satellite Services segment achieved record revenues
of $177.7 million in the third
quarter of fiscal year 2019, representing increases of 23%
year-over-year and 9% sequentially. Both the fixed residential
broadband internet and fast-growing commercial aviation IFC
businesses hit new record highs, with the latter benefitting from a
91% increase in in-service commercial aircraft year-over-year.
Total services other than U.S. fixed broadband contributed
approximately 21% of segment revenue for the quarter, illustrating
increasing service portfolio diversification and contribution from
new international broadband business markets. The quarter also
reflected strong sequential revenue conversion into Adjusted
EBITDA, with 87% of incremental revenue converting to Adjusted
EBITDA, after excluding a $4.0
million gain associated with our ViaSat-2-related insurance
receivables. Excluding the insurance gain, operating loss decreased
43% and segment Adjusted EBITDA increased 32% from the second
quarter of fiscal year 2019, while Adjusted EBITDA rose 13%
compared to the third quarter of fiscal year 2018. Highlights for
the quarter include:
- Fixed broadband services
-
- Residential ARPU in the U.S. grew about 5% sequentially, and by
14% year-over-year, to $77.93 as U.S.
subscribers continued to adopt Viasat's premium higher speed plans.
At the close of the third quarter of fiscal year 2019, the total
number of U.S. subscribers was essentially flat on a sequential
quarter basis.
- Viasat continued to expand its presence in Mexico. The Company's Community Wi-Fi hotspots
are now within reach of over one million people in Mexico; the Company introduced Urban Wi-Fi, a
new satellite-enabled Wi-Fi service for cities throughout
Mexico; and Viasat announced a
strategic partnership with Ubix to bring high-speed satellite
internet to enterprises, businesses and federal programs across the
country.
- Mobility services
-
- At the close of the third quarter of fiscal year 2019, the
number of commercial aircraft in-service flying with Viasat's IFC
equipment nearly doubled from the prior year period to 1,123
aircraft -- an increase of 225 commercial planes or approximately
25% in just one quarter. Viasat expects to install its IFC system
on 638 additional commercial aircraft under existing
contracts.
- Following the close of the third quarter of fiscal year
2019:
-
- American Airlines and Apple announced free in-flight streaming
of Apple Music, available on all Viasat-equipped American Airlines
aircraft. This illustrates how airline partners can leverage
Viasat's scalable, high-quality, fast streaming service to create
innovative new business models to deliver the most popular internet
media and entertainment services directly to passengers' own
devices.
- Viasat announced that Neos, the Italian leisure airline,
selected Viasat's high-quality IFC service for its fleet of Boeing
787 Dreamliner aircraft.
- Today, Viasat announced an extension of its contract with
United Airlines to bring Viasat's latest generation in-flight
entertainment and connectivity (IFEC) system to an additional 34
A319 aircraft that will be joining United's Airbus fleet in the
future. Viasat will serve as the direct in-flight internet service
provider to United for these aircraft, deploying its most advanced
IFEC system, in order to provide United Airlines' customers access
to fast, reliable internet connections from the air.
- Viasat and Aeromexico announced they expanded their original
contract, with Aeromexico executing the option to increase the
total number of Viasat-equipped Boeing 737 MAX aircraft from 18 to
a total of 60 planes. This award will support Aeromexico in
delivering a top-class in-flight Wi-Fi experience across its full
fleet of Boeing 737 MAX planes.
Fiscal year-to-date, Satellite Services segment revenues reached
a new record as the total ViaSat-2 service base began to scale. In
addition to improvements sequentially for the quarter, on a
year-to-date basis operating profit and Adjusted EBITDA performance
for the segment were lower compared to the same period last year,
reflecting the higher fixed operating expenses associated with the
ViaSat-2 service launch and IFC ramp in the first half of fiscal
year 2019, as well as sales and marketing costs as the Company
expanded its highest-speed ViaSat-2 broadband service offerings
into new vertical and geographic markets throughout the fiscal year
2019 to date.
Commercial Networks
For the third quarter of fiscal year 2019, Viasat's Commercial
Networks segment revenues hit a new record, up 129% from the prior
year, as the Company's scaling IFC equipment business continued to
gain market share while executing on accelerated customer install
schedules. Segment performance also reflected healthy revenue
growth across the Company's other satellite networking and antenna
systems infrastructure businesses. The strong revenue growth and
segment operating cost decreases led to narrowed segment operating
losses and improved Adjusted EBITDA on both a sequential quarter
and year-over-year basis. Research and Development (R&D)
expense declined for the fifth consecutive quarter by $10.3 million year-over-year, as the payload
programs for the Company's first two ViaSat-3 class satellites near
final migration to the capital portion of the project. Sequential
quarter earnings performance largely improved as a result of mobile
terminal deliveries, and, to a lesser extent, reductions in segment
level R&D expenses. Highlights for the quarter include:
- In support of Viasat's customer IFC installations, third
quarter segment activities reflected a 17% sequential quarter
uptick in next-generation IFC system deliveries for commercial
aircraft, bringing total year-to-date fiscal year 2019 IFC system
shipments to 589 aircraft across ten commercial airlines.
- New contract awards surpassed $100.0
million for the third straight quarter, rising 23% versus
the same period last year.
- During the third quarter of fiscal year 2019, Viasat announced
the selection of the SpaceX Falcon Heavy for one of the ViaSat-3
launches, advancing the Company's integrated launch strategy for
its global satellite program. Also, today, Viasat announced an
agreement with Boeing Satellite Systems International for
construction of the third ViaSat-3 satellite to serve the
Asia Pacific region. The Company
expects the third ViaSat-3 satellite, when coupled with the other
two ViaSat-3 class satellites under construction, will be able to
deliver affordable connectivity worldwide.
- Fiscal year-to-date, Commercial Networks segment revenues
reached a record high, segment operating losses narrowed and
Adjusted EBITDA improved compared to the same period last year,
reflecting the same year-over-year impacts and investment trends
seen in the third quarter of fiscal year 2019.
Government Systems
Viasat's Government Systems segment achieved quarterly record
revenues, operating profit and Adjusted EBITDA for the second
consecutive quarter. Compared to the prior fiscal year third
quarter, robust third quarter fiscal year 2019 performance included
a revenue increase of 38% to $250.1
million; a 68% increase in operating profit to $49.9 million; and 44% growth in Adjusted EBITDA
to $69.0 million. Operating profit
and Adjusted EBITDA benefitted from increased sales of Viasat's
unique Non-Developmental Item (NDI) products in its datalink
product suite, as well as government satellite communication
systems products, cybersecurity offerings and information assurance
products. Highlights for the quarter include:
- Government Segment awards year-to-date hit an all-time high of
$908.6 million, growing 44%
year-over-year and surpassing levels recorded for the full fiscal
year 2018.
- Viasat was recognized with a 2018 Platinum 'ASTORS' Homeland
Security Award from American Security Today magazine,
recognizing the Company's forward-looking approach to cybersecurity
services for government and military customers.
- Viasat received an initial Low Rate Initial Production order of
1,000 National Security Agency-certified Mini Crypto devices from
the U.S. Air Force.
- During the Saber Strike 2018 exercise, Viasat's Multi-Mission
Terminal, known to the U.S. Department of Defense as the
AN/TSC-241, was shown to be battlefield-ready, making it
immediately available for use and purchase across all U.S. and Five
Eyes (FVEY) military branches.
- Viasat made new security capabilities available, including its
integrated Mobile Dynamic Defense cybersecurity software for U.S.
and FVEY naval forces and an updated KG-142 network encryptor to
support the shift to cloud-centered communications.
- Viasat's military-grade airborne terminal (MBR-4020) completed
the Army Forces Strategic Command certification process for use on
government intelligence, surveillance and reconnaissance missions
and senior leader aircraft.
- Viasat announced the availability to use secure cloud-enabled
artificial intelligence and machine learning applications over
Viasat's global satellite communications architecture and line of
sight tactical network.
- Viasat, and partner MDA, expanded its presence in Canada, establishing a repair, maintenance and
upgrade service facility for Viasat's Link 16 military
communication terminals in Halifax, Nova
Scotia.
On a fiscal year-to-date basis and for the second consecutive
quarter, Viasat's Government Systems segment achieved record
performance with revenue growth of 23% to $680.3 million, an operating profit increase of
24% to $119.7 million and an Adjusted
EBITDA increase of 18% to $174.7
million, over the same period last year.
Conference Call
Viasat will host a conference call to discuss the third quarter
of fiscal year 2019 results. Details follow:
DATE/TIME:
|
Thursday, February 7,
2019 at 5:00 p.m. Eastern Time
|
DIAL-IN:
|
(877) 640-9809 in the
U.S.; (914) 495-8528 international
|
WEBCAST:
|
investors.viasat.com.
|
REPLAY:
|
Available from 8:00
p.m. Eastern Time on Thursday, February 7 until 11:59 p.m. Eastern
Time on Friday, February 8 by dialing (855) 859-2056 for U.S.
callers and (404) 537-3406 for international callers; conference ID
2769648.
|
Forward-Looking Statements
This press release contains forward-looking statements that are
subject to the safe harbors created under the Securities Act of
1933 and the Securities Exchange Act of 1934. Forward-looking
statements include, among others, statements that refer to
opportunities, growth and outlook for fiscal year 2019 and beyond;
satellite construction and launch activities, including
commencement of construction of a third ViaSat-3 class satellite
and completion and benefits of a global ViaSat-3 constellation; the
performance and benefits of our ViaSat-2 and ViaSat-3 class
satellites; the expected completion, capacity, service, coverage,
service speeds, availability and other features of our satellites,
and the timing, cost, economics and other benefits associated
therewith; the development and performance of equipment and
hardware for the ViaSat-2 and ViaSat-3 class satellite platforms,
the timing thereof and the benefits associated
therewith; domestic and international expansion plans,
including with respect to the expansion of our footprint and
service offerings in Mexico; the
realization of IFC and IFEC investments and the number of IFC and
IFEC systems expected to be installed under existing contracts with
commercial airlines; the impacts of new contracts entered into
with, and the roll-out, ramp-up and uptake of products and services
by, and services to be offered by, our airline partners and other
customers; and the expected plans and benefits of our strategic
partnering arrangement with Ubix. Readers are cautioned that actual
results could differ materially and adversely from those expressed
in any forward-looking statements. Factors that could cause actual
results to differ include: our ability to realize the anticipated
benefits of the ViaSat-2 and ViaSat-3 class satellites; unexpected
expenses related to our satellite projects; our ability to
successfully implement our business plan for our broadband
satellite services on our anticipated timeline or at all; risks
associated with the construction, launch and operation of our
satellites, including the effect of any anomaly, operational
failure or degradation in satellite performance; our ability to
realize the anticipated benefits of our acquisitions or strategic
partnering arrangements; our ability to successfully develop,
introduce and sell new technologies, products and services; the
number of purchase orders that are submitted and accepted for the
installation of IFC or IFEC systems with respect to aircraft under
contract; audits by the U.S. government; changes in the global
business environment and economic conditions; delays in approving
U.S. government budgets and cuts in government defense
expenditures; our reliance on U.S. government contracts, and on a
small number of contracts which account for a significant
percentage of our revenues; reduced demand for products and
services as a result of continued constraints on capital spending
by customers; changes in relationships with, or the financial
condition of, key customers or suppliers; our reliance on a limited
number of third parties to manufacture and supply our products;
increased competition; introduction of new technologies and other
factors affecting the communications and defense industries
generally; the effect of adverse regulatory changes (including
changes affecting spectrum availability or permitted uses) on our
ability to sell products and services; orbital arc congestion
affecting availability of Ka-band spectrum; the effect of changes
in the way Ka-band spectrum is used by others; our level of
indebtedness and ability to comply with applicable debt covenants;
our involvement in litigation, including intellectual property
claims and litigation to protect our proprietary technology; and
our dependence on a limited number of key employees. In addition,
please refer to the risk factors contained in our SEC filings
available at www.sec.gov, including our most recent Annual Report
on Form 10-K and Quarterly Reports on Form 10-Q. Readers are
cautioned not to place undue reliance on any forward-looking
statements, which speak only as of the date on which they are made.
We undertake no obligation to update or revise any forward-looking
statements for any reason.
About Viasat
Viasat is a global communications company that believes everyone
and everything in the world can be connected. For more than 30
years, Viasat has helped shape how consumers, businesses,
governments and militaries around the world communicate. Today, the
Company is developing the ultimate global communications network to
power high-quality, secure, affordable, fast connections to impact
people's lives anywhere they are—on the ground, in the air or at
sea. To learn more about Viasat, visit: www.viasat.com, go to
Viasat's Corporate Blog, or follow the Company on social media at:
Facebook, Instagram, LinkedIn, Twitter or YouTube.
Use of Non-GAAP Financial Information
To supplement Viasat's consolidated financial statements presented
in accordance with generally accepted accounting principles (GAAP),
ViaSat uses non-GAAP net income (loss) attributable to Viasat Inc.
and Adjusted EBITDA, measures Viasat believes are appropriate to
enhance an overall understanding of Viasat's past financial
performance and prospects for the future. We believe the non-GAAP
results provide useful information to both management and investors
by excluding specific expenses that we believe are not indicative
of our core operating results. In addition, since we have
historically reported non-GAAP results to the investment community,
we believe the inclusion of non-GAAP numbers provides consistency
in our financial reporting and facilitates comparisons to the
Company's historical operating results. Further, these non-GAAP
results are among the primary indicators that management uses as a
basis for evaluating the operating performance of our segments,
allocating resources to such segments, planning and forecasting in
future periods. The presentation of this additional information is
not meant to be considered in isolation or as a substitute for
measures of financial performance prepared in accordance with GAAP.
A reconciliation of specific adjustments to GAAP results is
provided in the tables below.
Copyright © 2019 Viasat, Inc. All rights reserved. Viasat is a
registered trademark of Viasat, Inc. The Viasat logo is a trademark
of Viasat, Inc. All other product or company names mentioned are
used for identification purposes only and may be trademarks of
their respective owners.
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
December 31,
2018
|
|
December 31,
2017
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Product
revenues
|
$
301,865
|
|
$
175,957
|
|
$
800,429
|
|
$
523,858
|
Service
revenues
|
252,829
|
|
205,880
|
|
710,608
|
|
631,097
|
Total
revenues
|
554,694
|
|
381,837
|
|
1,511,037
|
|
1,154,955
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of product
revenues
|
226,020
|
|
126,437
|
|
616,368
|
|
382,932
|
Cost of service
revenues
|
176,686
|
|
137,275
|
|
523,348
|
|
410,538
|
Selling, general and
administrative
|
114,566
|
|
100,125
|
|
340,328
|
|
279,382
|
Independent research
and development
|
28,928
|
|
40,149
|
|
93,661
|
|
131,482
|
Amortization of
acquired intangible assets
|
2,487
|
|
3,177
|
|
7,375
|
|
9,757
|
Income (loss) from
operations
|
6,007
|
|
(25,326)
|
|
(70,043)
|
|
(59,136)
|
Interest (expense)
income, net
|
(14,865)
|
|
512
|
|
(40,198)
|
|
529
|
Loss on
extinguishment of debt
|
-
|
|
-
|
|
-
|
|
(10,217)
|
Loss before income
taxes
|
(8,858)
|
|
(24,814)
|
|
(110,241)
|
|
(68,824)
|
(Provision for)
benefit from income taxes
|
(3,230)
|
|
(2,172)
|
|
35,679
|
|
18,472
|
Equity in income of
unconsolidated affiliate, net
|
1,351
|
|
1,365
|
|
2,730
|
|
1,593
|
Net loss
|
(10,737)
|
|
(25,621)
|
|
(71,832)
|
|
(48,759)
|
Less: net loss
attributable to noncontrolling interests, net of tax
|
(333)
|
|
(990)
|
|
(1,694)
|
|
(1,400)
|
Net loss attributable
to Viasat Inc.
|
$
(10,404)
|
|
$
(24,631)
|
|
$
(70,138)
|
|
$
(47,359)
|
|
|
|
|
|
|
|
|
Diluted net loss per
share attributable to Viasat Inc. common stockholders
|
$
(0.17)
|
|
$
(0.42)
|
|
$
(1.17)
|
|
$
(0.81)
|
Diluted common
equivalent shares
|
60,152
|
|
58,638
|
|
59,698
|
|
58,237
|
|
|
|
|
|
|
|
|
AN ITEMIZED
RECONCILIATION BETWEEN NET INCOME (LOSS) ATTRIBUTABLE TO VIASAT
INC.
|
|
|
|
|
|
ON A GAAP BASIS
AND NON-GAAP BASIS IS AS FOLLOWS:
|
|
|
|
|
|
|
|
(In thousands,
except per share data)
|
Three months
ended
|
|
Nine months
ended
|
|
December 31,
2018
|
|
December 31,
2017
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
|
|
|
|
|
|
GAAP net loss
attributable to Viasat Inc.
|
$
(10,404)
|
|
$
(24,631)
|
|
$
(70,138)
|
|
$
(47,359)
|
Amortization of
acquired intangible assets
|
2,487
|
|
3,177
|
|
7,375
|
|
9,757
|
Stock-based
compensation expense
|
20,155
|
|
17,642
|
|
58,658
|
|
49,132
|
Loss on
extinguishment of debt
|
-
|
|
-
|
|
-
|
|
10,217
|
Income tax effect
(1)
|
(5,306)
|
|
1,383
|
|
(15,393)
|
|
(16,426)
|
Non-GAAP net income
(loss) attributable to Viasat Inc.
|
$
6,932
|
|
$
(2,429)
|
|
$
(19,498)
|
|
$
5,321
|
Non-GAAP diluted net
income (loss) per share attributable to Viasat Inc. common
stockholders
|
$
0.12
|
|
$
(0.04)
|
|
$
(0.33)
|
|
$
0.09
|
Diluted common
equivalent shares
|
60,152
|
|
58,638
|
|
59,698
|
|
58,237
|
|
|
|
|
|
|
|
|
(1)The
income tax effect is calculated using the tax rate applicable for
the non-GAAP adjustments.
|
|
|
|
|
|
|
|
|
AN ITEMIZED
RECONCILIATION BETWEEN NET INCOME (LOSS) ATTRIBUTABLE TO VIASAT
INC.
|
|
|
|
|
|
AND ADJUSTED
EBITDA IS AS FOLLOWS:
|
|
|
|
|
|
|
|
(In
thousands)
|
Three months
ended
|
|
Nine months
ended
|
|
December 31,
2018
|
|
December 31,
2017
|
|
December 31,
2018
|
|
December 31,
2017
|
|
|
|
|
|
|
|
|
GAAP net loss
attributable to Viasat Inc.
|
$
(10,404)
|
|
$
(24,631)
|
|
$
(70,138)
|
|
$
(47,359)
|
Provision for
(benefit from) income taxes
|
3,230
|
|
2,172
|
|
(35,679)
|
|
(18,472)
|
Interest expense
(income), net
|
14,865
|
|
(512)
|
|
40,198
|
|
(529)
|
Depreciation and
amortization
|
80,834
|
|
61,567
|
|
238,105
|
|
186,376
|
Stock-based
compensation expense
|
20,155
|
|
17,642
|
|
58,658
|
|
49,132
|
Loss on
extinguishment of debt
|
-
|
|
-
|
|
-
|
|
10,217
|
Adjusted
EBITDA
|
$
108,680
|
|
$
56,238
|
|
$
231,144
|
|
$
179,365
|
AN ITEMIZED
RECONCILIATION BETWEEN SEGMENT OPERATING PROFIT (LOSS)
BEFORE
|
CORPORATE AND
AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS AND ADJUSTED EBITDA IS
AS FOLLOWS:
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2018
|
|
Three months ended
December 31, 2017
|
|
|
Satellite
Services
|
|
Commercial
Networks
|
|
Government
Systems
|
|
Total
|
|
Satellite
Services
|
|
Commercial
Networks
|
|
Government
Systems
|
|
Total
|
Segment operating
(loss) profit before corporate and amortization of acquired
intangible assets
|
|
$ (10,196)
|
|
$
(31,219)
|
|
$
49,909
|
|
$
8,494
|
|
$
1,681
|
|
$
(53,505)
|
|
$
29,675
|
|
$ (22,149)
|
Depreciation(2)
|
|
51,060
|
|
5,663
|
|
9,849
|
|
66,572
|
|
35,151
|
|
7,301
|
|
9,100
|
|
51,552
|
Stock-based
compensation expense
|
|
6,250
|
|
6,842
|
|
7,063
|
|
20,155
|
|
4,394
|
|
6,660
|
|
6,588
|
|
17,642
|
Other
amortization
|
|
7,648
|
|
1,721
|
|
2,406
|
|
11,775
|
|
3,093
|
|
1,549
|
|
2,196
|
|
6,838
|
Equity in income of
unconsolidated affiliate, net
|
|
1,351
|
|
-
|
|
-
|
|
1,351
|
|
1,365
|
|
-
|
|
-
|
|
1,365
|
Noncontrolling
interests
|
|
562
|
|
-
|
|
(229)
|
|
333
|
|
754
|
|
-
|
|
236
|
|
990
|
Adjusted
EBITDA
|
|
$
56,675
|
|
$
(16,993)
|
|
$
68,998
|
|
$ 108,680
|
|
$
46,438
|
|
$
(37,995)
|
|
$
47,795
|
|
$
56,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
December 31, 2018
|
|
Nine months ended
December 31, 2017
|
|
|
Satellite
Services
|
|
Commercial
Networks
|
|
Government
Systems
|
|
Total
|
|
Satellite
Services
|
|
Commercial
Networks
|
|
Government
Systems
|
|
Total
|
Segment operating
(loss) profit before corporate and amortization of acquired
intangible assets
|
|
$ (64,971)
|
|
$
(117,424)
|
|
$
119,727
|
|
$ (62,668)
|
|
$
33,140
|
|
$
(179,007)
|
|
$
96,488
|
|
$ (49,379)
|
Depreciation(2)
|
|
151,893
|
|
16,658
|
|
27,011
|
|
195,562
|
|
106,095
|
|
20,556
|
|
26,560
|
|
153,211
|
Stock-based
compensation expense
|
|
17,276
|
|
20,706
|
|
20,676
|
|
58,658
|
|
11,842
|
|
18,740
|
|
18,550
|
|
49,132
|
Other
amortization
|
|
21,608
|
|
5,716
|
|
7,844
|
|
35,168
|
|
9,639
|
|
6,710
|
|
7,059
|
|
23,408
|
Equity in income of
unconsolidated affiliate, net
|
|
2,730
|
|
-
|
|
-
|
|
2,730
|
|
1,593
|
|
-
|
|
-
|
|
1,593
|
Noncontrolling
interests
|
|
2,269
|
|
-
|
|
(575)
|
|
1,694
|
|
1,567
|
|
-
|
|
(167)
|
|
1,400
|
Adjusted
EBITDA
|
|
$ 130,805
|
|
$
(74,344)
|
|
$
174,683
|
|
$ 231,144
|
|
$ 163,876
|
|
$
(133,001)
|
|
$
148,490
|
|
$ 179,365
|
|
(2)
Depreciation expenses not specifically recorded in a particular
segment have been allocated based on other indirect allocable
costs, which management believes is a reasonable
method.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
As
of
|
|
As
of
|
|
|
As
of
|
|
As
of
|
Assets
|
December 31,
2018
|
|
March 31,
2018
|
|
Liabilities and
Equity
|
December 31,
2018
|
|
March 31,
2018
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Current
liabilities:
|
|
|
|
Cash and cash
equivalents
|
$
43,365
|
|
$
71,446
|
|
Accounts
payable
|
$
160,850
|
|
$
157,481
|
Accounts receivable,
net
|
295,325
|
|
267,665
|
|
Accrued
liabilities
|
292,260
|
|
263,676
|
Inventories
|
230,122
|
|
196,307
|
|
Current portion
of long-term debt
|
21,755
|
|
45,300
|
Prepaid expenses and
other current assets
|
115,844
|
|
77,135
|
|
Total current
liabilities
|
474,865
|
|
466,457
|
Total current
assets
|
684,656
|
|
612,553
|
|
Senior
notes
|
691,803
|
|
690,886
|
|
|
|
|
|
Other long-term
debt
|
445,032
|
|
287,519
|
|
|
|
|
|
Other
liabilities
|
131,970
|
|
121,240
|
|
|
|
|
|
Total
liabilities
|
1,743,670
|
|
1,566,102
|
Property, equipment
and satellites, net
|
2,053,943
|
|
1,962,475
|
|
|
|
|
|
Other acquired
intangible assets, net
|
24,760
|
|
31,862
|
|
Total Viasat
Inc. stockholders' equity
|
1,880,564
|
|
1,837,166
|
Goodwill
|
121,506
|
|
121,085
|
|
Noncontrolling
interest in subsidiaries
|
5,482
|
|
10,841
|
Other
assets
|
744,851
|
|
686,134
|
|
Total
equity
|
1,886,046
|
|
1,848,007
|
Total
assets
|
$
3,629,716
|
|
$
3,414,109
|
|
Total
liabilities and equity
|
$
3,629,716
|
|
$
3,414,109
|
View original
content:http://www.prnewswire.com/news-releases/viasat-announces-third-quarter-fiscal-year-2019-results-300792051.html
SOURCE Viasat, Inc.