Accelerated Air France installationsRenewed
largest two Cruise customers under multi-year agreementsSecured new
Media & Content contract from major global airlineInitiated
Phase II of Cost Realignment Plan
Global Eagle Entertainment Inc. (Nasdaq: ENT) (“Global Eagle,” the
“Company” or “we”), a leading provider of media, content,
connectivity and data analytics to markets across air, sea and
land, today announced financial results for the fourth quarter and
full year ended December 31, 2018. For the fourth quarter of
2018, Global Eagle recorded revenue of $161 million; incurred a net
loss of $109.2 million (partially due to a non-cash impairment
charge described below) and generated Adjusted EBITDA* of $17.0
million. For full year 2018, Global Eagle recorded revenue of
$647 million; incurred a net loss of $236.6 million and generated
Adjusted EBITDA of $73.1 million.
Global Eagle’s Connectivity segment is a leading
provider of satellite-based passenger connectivity for single-aisle
airliners and broadcaster of live television to the aviation and
maritime markets. During the fourth quarter, Global Eagle continued
to build commercial and operational momentum. We accelerated
Air France installations, renewed our two largest cruise customers
under multi-year contracts and launched the next generation of our
proprietary Network Resource Management software platform which
enables unprecedented flexibility and efficiency of the underlying
drivers for user experience. In January, Air France commenced
operation of inflight connectivity services to its passengers,
supported by Global Eagle’s Ku high-throughput satellite (HTS)
network, the first HTS inflight connectivity network to span
Europe, Russia, the Nordics and Scandinavia, and North
Africa. This network is capable of delivering speeds up to
500 Mbps to each aircraft cabin.
During the fourth quarter, Global Eagle’s
market-leading Media & Content segment was approximately flat
with the prior-year quarter. We expect the new wins and
expanded relationships announced in the third quarter to positively
impact the segment’s revenue growth during the first quarter of
2019. Our Media & Content segment has recently secured a
multi-year contract award from a major global airline, previously
held by a competitor. We expect the win to positively impact
Media & Content revenue growth beginning in the third quarter
of 2019.
Building upon the operating expense savings plan
implemented throughout 2018, Global Eagle initiated the planning of
Phase II of our Cost Realignment Plan in November. This process
included a detailed review of cost of sales and operating expenses
supporting each business unit, along with accelerated integration
of global offices, software engineering and customer support teams.
We commenced implementation of the majority of the plan’s
initiatives in late February 2019. Therefore, we expect the
plan to have a positive impact on expenses beginning in the second
quarter of 2019 and building throughout the year.
“We are very proud of our commercial success and
operational execution,” commented Josh Marks, CEO of Global
Eagle. “Global Eagle is winning market share from our
competitors and delivering on our performance promises to our
customers. We see a robust RFP environment for both Content
and inflight Connectivity, where our track record of on-time
delivery, industry-leading operational performance and customer
service positions Global Eagle well for continued success. We
are focused on our customers, and are relentlessly driving a
healthy core business, profitable growth and transformation in
2019.”
“We continue to target positive free cash flow
generation in 2019. In addition to sustained revenue growth, we
recognize the importance of a lean cost structure. Phase II
of our Cost Realignment Plan will transform our Company through
more efficient staffing, consolidated engineering and customer
support, and a focus on cost controls,” said Paul Rainey, CFO of
Global Eagle. “We expect meaningful improvement to be driven
by our rigorous execution of the plan. Our initial actions
were taken in late February and will build throughout 2019.
We expect our Cost Realignment Plan to drive the Company’s
transition to positive free cash flow generation within the
year.”
Fourth Quarter Summary
- Total revenue for the fourth
quarter of 2018 was $161 million, a 0.6% increase over the
prior-year period. This increase was driven by 34.5% growth
in our Connectivity equipment sales. Revenue growth in
Connectivity equipment was driven by a ramp-up of Southwest and Air
France inflight connectivity equipment. Our Connectivity
service revenue was negatively impacted by the anticipated decline
in our African MNO business, as well as minor decline in yacht
business revenue due to unusual weather conditions in the late
fall, which resulted in fewer active ships.
- Net loss for the fourth quarter of
2018 was $109.2 million, down $25.2 million over the prior-year
period. Net loss included a $51 million non-cash impairment
of a joint venture. The impairment was related to slower than
expected adoption of growth initiatives. The improvement
versus the prior-year period was driven by the absence of $89
million goodwill impairment charge.
- Adjusted EBITDA for the fourth
quarter of 2018 was $17.0 million, which was a 13.7% decline versus
the prior-year period. Adjusted EBITDA was impacted by a
decline in gross margins partially offset by a decline in operating
expenses excluding the prior-year goodwill impairment. The
decline in gross margins was driven by increased investment in
satellite network capacity to support the ramp up of aircraft
activations. We continue to expect our Connectivity segment’s
gross margin to recover in 2019 as these aircraft are
activated.
Webcast
We will host a live webcast on Thursday, March
14, 2019 at 5:00 p.m. EDT (2:00 p.m. PDT). We will make the
webcast and accompanying slide presentation available on the
Investor Relations section of our website at
http://investors.geemedia.com/events-and-presentations. We
will maintain an archive of the webcast on our website for 30 days
following the event.
About Global Eagle
Global Eagle is a leading provider of media,
content, connectivity and data analytics to markets across air, sea
and land. Global Eagle offers a fully integrated suite of rich
media content and seamless connectivity solutions to airlines,
cruise lines, commercial ships, high-end yachts, ferries and land
locations worldwide. With approximately 1,200 employees and 50
offices on six continents, the Company delivers exceptional service
and rapid support to a diverse customer base. Find out more at:
www.GlobalEagle.com.
Contact:
Peter A. LopezVice President, Investor
Relations+1
310-740-8624investor.relations@geemedia.compr@geemedia.com
* About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with accounting principles
generally accepted in the United States, or GAAP, we present
Adjusted EBITDA, which
is a non-GAAP financial measure, as a measure
of our performance. The presentation of Adjusted EBITDA is not
intended to be considered in isolation from, or as a substitute
for, or superior to, net income (loss) or any other performance
measures derived in accordance with GAAP or as an alternative to
net cash provided by operating activities or any other measures of
our cash flows or liquidity. For a reconciliation of Adjusted
EBITDA to its most comparable measure under GAAP, please see the
table entitled “Reconciliation of
GAAP to Non-GAAP Measure” at the end of this
press release. Further, we note that Adjusted EBITDA as presented
herein is defined and calculated differently than the “Consolidated
EBITDA” definition in our senior secured credit agreement and in
our second lien notes, which Consolidated EBITDA definition we use
for financial-covenant-compliance purposes and as a measure of our
liquidity.
Adjusted EBITDA is one of the primary measures used by our
management and Board of Directors to understand and evaluate our
financial performance and operating trends, including period to
period comparisons, to prepare and approve our annual budget and to
develop short and long term operational plans. Additionally,
Adjusted EBITDA is one of the primary measures used by the
Compensation Committee of our Board of Directors to establish the
funding targets for (and subsequent funding of) our Annual
Incentive Plan bonuses for our employees. We believe our
presentation of Adjusted EBITDA is useful to investors both because
it allows for greater transparency with respect to key metrics used
by our management in their financial and operational
decision-making and because our management frequently uses it in
discussions with investors, commercial bankers, securities analysts
and other users of our financial statements.
We define Adjusted EBITDA as net income (loss) before
(a) interest expense (income), (b) income tax expense
(benefit) and (c) depreciation and amortization (including
relating to equity-method investments) and (gain) loss on disposal
and impairment of fixed assets, and we then further adjust that
result to exclude (when applicable in the period) (1) change
in fair value of financial instruments, (2) other (income)
expense, including (gains) losses from
foreign-currency-transaction (gains) and from other investments,
which include impairment charges relating to our joint ventures,
(3) goodwill impairment expense, (4) stock-based
compensation expense, (5) strategic-transaction, integration
and realignment expenses (as described below), (6) auditor and
third-party professional fees and expenses related to our
internal-control deficiencies (and the remediation thereof) and
complications in our audit process relating to our control
environment, (7) excess content expenses (as described below),
(8) non-ordinary-course legal expenses (as described
below) and (9) losses related to significant customer bankruptcies
or financial distress (as described below). Management does not
consider these items to be indicative of our core operating
results.
“Excess content expenses” includes the additional purchasing
costs that we incurred in 2017 to procure movie content for our
customers, notwithstanding that we could have procured equivalent
content under our (preferential-pricing) output arrangements with
major studios. We incurred these additional costs because we could
not timely identify and measure our movie-content expenditures and
procurement during the period due to weaknesses in our control
environment.
“Losses related to significant customer bankruptcies or
financial distress” includes (1) our provision for bad debt
associated with the bankruptcies of Air Berlin and Alitalia (two of
our Media & Content customers) in 2017 and Ocean Air (our
Media & Content and Connectivity customer) in 2018,
(2) the costs (e.g., content acquisition fees) that we
incurred to maintain service to those customers during their
bankruptcy proceedings in order to preserve the customer
relationship and (3) costs relating to providing services to
customers for whom we recognize revenue on a cash basis due to
their financial distress.
“Non-ordinary-course legal expenses” includes third-party
professional fees and expenses and estimated loss contingencies,
provisions for legal settlements and other expenses associated with
the securities class-action lawsuits filed against us in 2017,
non-ordinary-course employment, corporate and
intellectual-property-infringement disputes, and the initial setup
of our General Data Protection Regulation (GDPR) and Communications
Assistance for Law Enforcement Act (CALEA) compliance programs.
“Strategic-transaction, integration and realignment expenses”
includes (1) transaction and procurement-related expenses and
costs (including third-party professional fees) attributable to
acquisition, financing, investment and other strategic-transaction
activities (including for new product
and proof-of-concept testing), (2) integration and
realignment expenses and allowances, (3) employee-severance,
-retention and -relocation expenses, (4) purchase-accounting
adjustments for deferred revenue, costs and credits associated with
companies and businesses that we have acquired through our M&A
activities, (5) service-level-agreement penalties incurred
during our Eagle-1 migration and setup in its
new orbital slot in 2017 and (6) estimated loss contingencies,
provisions for legal settlements and other expenses related to
claims at companies or businesses that we acquired through our
M&A activities for underlying
liabilities that pre-dated our acquisition of
those companies or businesses.
Cautionary Note Regarding Forward-Looking
Statements
Certain statements in this press release may constitute
“forward-looking” statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include, without limitation, statements with respect to
our expected Adjusted EBITDA, revenue and margin growth in future
periods, our aviation-connectivity installations in future periods,
our business and financial-performance outlook, industry, business
strategy, plans, business and M&A integration activities,
operating-expense and cost-structure improvements and reductions
and our ability to execute and realize the benefits of our
cost-savings plans, international expansion, future technologies,
future operations, financial covenant compliance, margins,
profitability, future efficiencies, liquidity, ability to generate
positive cash flow from operating activities, and other financial
and operating information. 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:
- our ability to timely remediate
material weaknesses in our internal control over financial
reporting; the effect of those weaknesses on our ability to report
and forecast our operations and financial performance; and the
impact of our remediation efforts (and associated management time
and costs) on our liquidity and financial performance;
- our ability to maintain effective
disclosure controls and internal control over financial
reporting;
- our ability to execute on our
operating-expense and cost-structure realignment plan and realize
the benefits of those initiatives;
- our ability to properly implement
the new leasing standard (ASC 842);
- our dependence on the travel
industry;
- future acts or threats of
terrorism;
- our ability to obtain new customers
and renew agreements with existing customers;
- our customers’ solvency, inability
to pay and/or delays in paying us for our services;
- our ability to retain and
effectively integrate and train key members of senior
management;
- our ability to recruit, train and
retain highly skilled technical employees, particularly in our
finance and IT functions;
- negative external perceptions that
damage our reputation among potential customers, investors,
employees, advisors and vendors;
- our ability to receive the
anticipated cash distributions or other benefits from our
investment in the Wireless Maritime Services joint venture;
- customer attrition due to direct
arrangements between satellite providers and customers;
- the effect of a variety of complex
U.S. and foreign tax laws and regimes due to the global nature of
our business;
- our ability to continue to be able
to make claims for e-business and multimedia tax credits in
Canada;
- our exposure to foreign currency
risks;
- the effect of the United Kingdom’s
referendum to withdraw from the European Union;
- our dependence on our existing
relationship and agreement with Southwest Airlines;
- our need to invest in and develop
new broadband technologies and advanced communications and secure
networking systems, products and services and antenna technologies
as well as their market acceptance;
- increased demand by customers for
greater bandwidth, speed and performance and increased competition
from new technologies and market entrants;
- our reliance on “sole source”
service providers and other third parties for key components and
services that are integral to our product and service
offerings;
- the potential need to materially
increase our investments in product development and equipment
beyond our current investment expectations;
- our ability to expand our
international operations and the risks inherent in our
international operations, especially in light of current trade and
national-security disputes between the United States and China
(which may adversely impact our ability to conduct business in that
market);
- service interruptions or delays,
technology failures, damage to equipment or software defects or
errors and the resulting impact on our reputation and ability to
attract, retain and serve our customers;
- equipment failures or software
defects or errors that may damage our reputation or result in
claims in excess of our insurance or warranty coverage;
- satellite failures or degradations
in satellite performance;
- our ability to integrate businesses
or technologies we have acquired or may acquire in the future;
- increased on-board use of personal
electronic devices and content accessed and downloaded prior to
travel and our ability to compete as a content provider against
“over the top” download services and other companies that offer
in-flight entertainment products;
- pricing pressure from suppliers and
customers in our Media & Content segment and a reduction in the
aviation industry’s use of intermediary content service providers
(such as us);
- a reduction in the volume or
quality of content produced by studios, distributors or other
content providers or their refusal to license content or other
rights upon terms acceptable to us;
- a reduction or elimination of the
time between our receipt of content and it being made available to
the rental or home viewing market (i.e., the “early release
window”);
- increased competition in the
in-flight entertainment (“IFE”) and in-flight connectivity (“IFC”)
system supply chain;
- our ability to plan expenses and
forecast revenue due to the long sales cycle of many of our Media
& Content segment’s products;
- operational complexity and
increased costs related to maintaining and tracking our music
content licenses and rights related thereto;
- our use of fixed-price contracts
for satellite bandwidth and potential cost differentials that may
lead to losses if the market price for our services declines
relative to our committed cost;
- our use of fixed-price contracts in
our Media & Content segment that may lead to losses in the
future if the market price for our services declines relative to
our committed cost;
- our ability to develop new products
or enhance those we currently provide in our Media & Content
segment;
- our ability to successfully
implement a new enterprise resource planning system;
- the effect on our business and
customers due to disruption of the technology systems utilized in
our business operations;
- our ability to protect our
intellectual property;
- the effect of cybersecurity
attacks, data or privacy breaches, data or privacy theft,
unauthorized access to our internal systems or connectivity or
media and content systems, or phishing or hacking, especially in
light of recently publicized security incidents affecting our
industry and our systems;
- the costs to defend and/or settle
current and potential future civil intellectual property lawsuits
(including relating to music and other content infringement) and
related claims for indemnification;
- changes in regulations and our
ability to obtain regulatory approvals to provide our services or
to operate our business in particular countries or territorial
waters;
- compliance with U.S. and foreign
regulatory agencies, including the Federal Aviation Administration
(“FAA”), Federal Communications Commission (“FCC”), and Federal
Trade Commission (“FTC”) and their foreign equivalents in the
jurisdictions in which we and our customers operate;
- regulation by foreign government
agencies that increases our costs of providing services or requires
us to change services;
- changes in government regulation of
the Internet, including e-commerce or online video
distribution;
- our ability to comply with trade,
export, anti-money laundering and anti-bribery practices and data
protection laws, especially the U.S. Foreign Corrupt Practices Act,
the U.K. Bribery Act and GDPR;
- changes in foreign and domestic
civil aviation authorities’ orders, airworthiness directives, or
other regulations that restrict our customers’ ability to operate
aircraft on which we provide services;
- our (along with our directors’ and
officers’) exposure to civil stockholder litigation relating to our
investor disclosures and the related costs of defending and
insuring against such litigation;
- uninsured or underinsured costs
associated with stockholder litigation and any uninsured or
underinsured indemnification obligations with respect to current
and former executive officers and directors;
- limitations on our cash flow
available to make investments due to our substantial indebtedness
and our ability to generate sufficient cash flow to make payments
thereon, comply with our reporting and financial covenants, or fund
our operations;
- our ability to repay the principal
amount of our bank debt, second lien notes due June 30, 2023 (the
“Second Lien Notes”) and/or 2.75% convertible senior notes due 2035
(the “Convertible Notes”) at maturity, to raise the funds necessary
to settle conversions of our Convertible Notes or to repurchase our
Convertible Notes upon a fundamental change or on specified
repurchase dates or due to future indebtedness;
- the conditional conversion of our
Convertible Notes;
- the effect on our reported
financial results of the accounting method for our Convertible
Notes;
- the impact of the fundamental
change repurchase feature and change of control repurchase feature
of the securities purchase agreement governing our Second Lien
Notes on our price or potential as a takeover target;
- the dilution or price depression of
our common stock that may occur as a result of the conversion of
our Convertible Notes and/or Searchlight warrants;
- our ability to meet the continued
listing requirements of The Nasdaq Stock Market (“Nasdaq”), in
particular given our recent history of delinquent periodic filings
with the U.S. Securities and Exchange Commission (“SEC”) and the
need to maintain a minimum $1.00 per share stock price pursuant to
Nasdaq rules;
- conflicts between our interests and
the interests of our largest stockholders;
- volatility of the market price of
our securities;
- anti-takeover provisions contained
in our charter and bylaws;
- the dilution of our common stock if
we issue additional equity or convertible debt securities; and
- other risks and factors listed
under “Risk Factors” in our Annual Report on Form 10-K for the year
ended December 31, 2017 as filed with the SEC on April 2, 2018 and
in any subsequently filed Quarterly Reports on Form 10-Q. These
financial results should also be read in connection with the
additional information to be set forth in our Annual Report on Form
10-K that will be filed for the year ended December 31, 2018.
The forward-looking statements herein speak only as of the date
the statements are made (which is the date of this press
release). You should not put undue reliance on any
forward-looking statements. We assume no obligation to update
forward-looking statements to reflect actual results, changes in
assumptions or changes in other factors affecting forward-looking
information, except to the extent required by applicable securities
laws. If we do update one or more forward-looking statements, no
inference should be drawn that we will make additional updates with
respect to those or other forward-looking statements.
Financial Information
The table below presents financial results for
the three and twelve months ended December 31, 2018 and
2017.
Global Eagle Entertainment Inc. |
Condensed Consolidated Statements of
Operations |
(In thousands, except per share
amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended December
31, |
|
Twelve Months Ended December
31, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenue: |
|
|
|
|
|
|
|
Licensing and
services |
145,669 |
|
|
148,520 |
|
|
606,227 |
|
|
581,920 |
|
Equipment |
14,939 |
|
|
11,078 |
|
|
40,867 |
|
|
37,549 |
|
Total
revenue |
160,608 |
|
|
159,598 |
|
|
647,094 |
|
|
619,469 |
|
Cost of sales: |
|
|
|
|
|
|
|
Licensing
and services |
123,020 |
|
|
110,995 |
|
|
480,864 |
|
|
428,619 |
|
Equipment |
15,577 |
|
|
9,544 |
|
|
31,529 |
|
|
33,501 |
|
Total
cost of sales |
138,597 |
|
|
120,539 |
|
|
512,393 |
|
|
462,120 |
|
Gross
margin |
22,011 |
|
|
39,059 |
|
|
134,701 |
|
|
157,349 |
|
Operating
Expenses: |
|
|
|
|
|
|
|
Sales and
marketing |
8,104 |
|
|
10,565 |
|
|
37,624 |
|
|
40,938 |
|
Product
development |
7,033 |
|
|
8,689 |
|
|
32,740 |
|
|
35,608 |
|
General
and administrative |
34,959 |
|
|
38,842 |
|
|
134,663 |
|
|
148,221 |
|
Provision
for legal settlements |
1,451 |
|
|
650 |
|
|
1,317 |
|
|
1,435 |
|
Amortization of intangible assets |
7,889 |
|
|
11,106 |
|
|
38,440 |
|
|
43,955 |
|
Goodwill
impairment |
- |
|
|
89,000 |
|
|
- |
|
|
167,000 |
|
Total
operating expenses |
59,436 |
|
|
158,852 |
|
|
244,784 |
|
|
437,157 |
|
Loss from
operations |
(37,425 |
) |
|
(119,793 |
) |
|
(110,083 |
) |
|
(279,808 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
Interest
expense, net |
(20,818 |
) |
|
(14,519 |
) |
|
(76,218 |
) |
|
(58,454 |
) |
Loss on
extinguishment of debt |
- |
|
|
- |
|
|
- |
|
|
(14,389 |
) |
Loss from
equity method investments |
(49,921 |
) |
|
(16,334 |
) |
|
(46,310 |
) |
|
(12,424 |
) |
Change in
fair value of derivatives |
384 |
|
|
839 |
|
|
97 |
|
|
3,510 |
|
Other
(expense) income, net |
(194 |
) |
|
(478 |
) |
|
(1,017 |
) |
|
(436 |
) |
Loss before income
taxes |
(107,974 |
) |
|
(150,285 |
) |
|
(233,531 |
) |
|
(362,001 |
) |
Income
tax (benefit) expense |
1,203 |
|
|
(15,880 |
) |
|
3,068 |
|
|
(4,887 |
) |
Net loss |
(109,177 |
) |
|
(134,405 |
) |
|
(236,599 |
) |
|
(357,114 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share –
basic and diluted |
(1.19 |
) |
|
(1.51 |
) |
|
(2.59 |
) |
|
(4.07 |
) |
Weighted average shares
outstanding – basic and diluted |
91,848 |
|
|
89,222 |
|
|
91,325 |
|
|
87,733 |
|
|
|
|
|
|
|
|
|
Global Eagle Entertainment Inc. |
Condensed Consolidated Balance
Sheets |
(In thousands) |
(Unaudited) |
|
|
December 31, |
|
December 31, |
|
2018 |
|
2017 |
Assets |
|
|
|
CURRENT ASSETS: |
|
|
|
Cash and cash
equivalents |
$ |
39,154 |
|
|
$ |
48,260 |
|
Restricted cash |
|
801 |
|
|
|
3,608 |
|
Accounts
receivable, net |
|
97,623 |
|
|
|
113,545 |
|
Inventories |
|
34,649 |
|
|
|
28,352 |
|
Prepaid
expenses |
|
9,104 |
|
|
|
13,486 |
|
Other
current assets |
|
10,498 |
|
|
|
20,923 |
|
TOTAL CURRENT
ASSETS: |
|
191,829 |
|
|
|
228,174 |
|
Content
library |
|
6,966 |
|
|
|
8,686 |
|
Property,
plant and equipment, net |
|
176,577 |
|
|
|
195,029 |
|
Goodwill |
|
159,562 |
|
|
|
159,696 |
|
Intangible assets, net |
|
84,136 |
|
|
|
122,582 |
|
Equity
method investments |
|
83,135 |
|
|
|
137,299 |
|
Other
non-current assets |
|
14,882 |
|
|
|
9,118 |
|
Total Assets |
$ |
717,087 |
|
|
$ |
860,584 |
|
Liabilities and
Stockholders' Equity |
|
|
|
CURRENT
LIABILITIES: |
|
|
|
Accounts
payable and accrued liabilities |
|
177,056 |
|
|
|
205,036 |
|
Deferred
revenue |
|
7,430 |
|
|
|
6,508 |
|
Current
portion of long-term debt |
|
22,673 |
|
|
|
20,106 |
|
Other
current liabilities |
|
5,032 |
|
|
|
7,785 |
|
TOTAL CURRENT
LIABILITIES: |
|
212,191 |
|
|
|
239,435 |
|
Deferred
revenue, non-current |
|
1,116 |
|
|
|
1,079 |
|
Long-term
debt |
|
686,938 |
|
|
|
598,958 |
|
Deferred
tax liabilities |
|
8,406 |
|
|
|
16,247 |
|
Other
non-current liabilities |
|
34,771 |
|
|
|
30,340 |
|
Total
Liabilities |
|
943,422 |
|
|
|
886,059 |
|
Stockholders' Equity |
|
|
|
Common
stock |
|
10 |
|
|
|
10 |
|
Treasury
stock |
|
(30,659 |
) |
|
|
(30,659 |
) |
Additional paid-in capital |
|
814,488 |
|
|
|
779,565 |
|
Subscriptions receivable |
|
(597 |
) |
|
|
(578 |
) |
Accumulated deficit |
|
(1,009,458 |
) |
|
|
(773,791 |
) |
Accumulated other comprehensive loss |
|
(119 |
) |
|
|
(22 |
) |
Total Stockholder's
Deficit |
|
(226,335 |
) |
|
|
(25,475 |
) |
Total Liabilities and
Stockholders' Equity |
$ |
717,087 |
|
|
$ |
860,584 |
|
|
|
|
|
Global Eagle Entertainment Inc. |
Reconciliation of GAAP to Non-GAAP
Measure |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended December
31, |
|
Twelve Months Ended December
31, |
Net loss to Adjusted EBITDA
reconciliation |
2018 |
|
2017 |
|
2018 |
|
2017 |
Net
loss |
(109,177 |
) |
|
(134,405 |
) |
|
(236,599 |
) |
|
(357,114 |
) |
Interest expense, net |
20,818 |
|
|
14,519 |
|
|
76,218 |
|
|
72,843 |
|
Income tax (benefit) expense |
1,203 |
|
|
(15,880 |
) |
|
3,068 |
|
|
(4,887 |
) |
Depreciation and amortization and loss on disposal
and impairment of fixed assets |
25,954 |
|
|
26,607 |
|
|
108,180 |
|
|
99,950 |
|
Change in fair value of financial instruments |
(384 |
) |
|
(839 |
) |
|
(97 |
) |
|
(3,510 |
) |
Other expense |
53,544 |
|
|
17,189 |
|
|
54,369 |
|
|
17,147 |
|
Goodwill impairment expense |
- |
|
|
89,000 |
|
|
- |
|
|
167,000 |
|
Stock-based compensation expense |
3,025 |
|
|
3,584 |
|
|
12,817 |
|
|
7,586 |
|
Strategic-transaction, integration and realignment
expenses |
14,399 |
|
|
7,742 |
|
|
27,512 |
|
|
27,951 |
|
Internal-control and delayed audit expenses |
2,649 |
|
|
11,411 |
|
|
22,259 |
|
|
34,869 |
|
Excess content expenses |
- |
|
|
661 |
|
|
- |
|
|
2,648 |
|
Non-ordinary-course legal expenses |
2,515 |
|
|
131 |
|
|
2,924 |
|
|
1,000 |
|
Losses on significant customer bankruptcies |
2,484 |
|
|
- |
|
|
2,484 |
|
|
2,537 |
|
Adjusted
EBITDA |
17,030 |
|
|
19,720 |
|
|
73,135 |
|
|
68,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
See “About Non-GAAP Financial Measures” above,
including our definition of Adjusted EBITDA described therein.
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