CHICAGO, May 6, 2021 /PRNewswire/ -- Gogo Inc.
(NASDAQ: GOGO) ("Gogo" or the "Company"), the world's largest
provider of broadband connectivity services for the business
aviation market, today announced its financial results for the
quarter ended March 31, 2021.
Q1 2021 Highlights
- Total revenue of $73.9 million
increased 4% year-over-year
- Net loss of $5.9 million from
continuing operations compared to a net loss from continuing
operations of $9.4 million in Q1
2020, and Adjusted EBITDA(1) of $33.9 million, an increase of 25% from Q1
2020
- Total ATG aircraft online ("AOL") grew 3% year-over-year and 2%
sequentially to 5,892
- Total AVANCE units online grew more than 42%
year-over-year to 1,900. AVANCE units comprised more
than 32% of total AOL as of March 31,
2021, up from 23% as of March 31,
2020
"Gogo's continued revenue and Adjusted EBITDA growth in the
first quarter reflects the ongoing recovery in the business
aviation market as more aircraft return online," said Oakleigh Thorne, Chairman and CEO of Gogo.
"Based on our strong first quarter performance and business
momentum, we have raised 2021 guidance."
"Our enhanced financial flexibility and strong cash flow enable
us to invest in our planned 5G deployment, which will significantly
improve the performance of our proprietary ATG network, and to
drive further market penetration of our AVANCE platform," Thorne
said.
First Quarter 2021 Financial Results from Continuing
Operations
- Total revenue of $73.9 million
increased 4% compared to Q1 2020, driven by increases in both
service and equipment revenue that reflect continuing recovery in
the business aviation industry and strong sales of Gogo's AVANCE
platform.
- Service revenue of $59.4 million
increased nearly 3% compared to Q1 2020, due primarily to a 3%
increase in AOL and recognition of service revenue from the Network
Sharing Agreement with Intelsat. Service revenue increased more
than 4% sequentially, due primarily to an increase in AOL.
- Equipment revenue of $14.5
million increased 10% compared to Q1 2020, due primarily to
increased shipments of AVANCE L5.
- Combined engineering, design and development, sales and
marketing and general and administrative expenses decreased 26% to
$19.6 million from $26.5 million in Q1 2020, due primarily to
decreases in general and administrative spending.
- Adjusted EBITDA of $33.9 million
increased 25% from $27.2 million in
Q1 2020 and 76% from $19.3 million in
Q4 2020.
Comprehensive Refinancing
On April 30, 2021, Gogo completed
a comprehensive refinancing transaction, securing a 7-year
$725 million Term Loan B bearing
interest at LIBOR (with a LIBOR floor of 0.75%) plus 3.75% (the
"Term Loan") and a 5-year $100
million revolving credit facility (the "Revolver"). The
Company used the proceeds of the Term Loan and cash on hand to
redeem in full the $975 million
aggregate principal outstanding of its Senior Secured Notes due
2024 (the "Senior Secured Notes") and pay a redemption premium,
accrued interest, and transaction fees and expenses.
In addition, as previously announced, in March and April Gogo entered into separate privately
negotiated exchange agreements with certain existing holders of the
Company's 6.00% Convertible Senior Notes due 2022 (the "Convertible
Notes"), under which approximately $135
million aggregate principal amount of the Convertible Notes
were exchanged for approximately 24 million shares of Gogo common
stock. As of May 6, 2021, the Company
had approximately 109.6 million shares of common stock outstanding
and approximately $103 million
aggregate principal amount of the Convertible Notes
outstanding.
As a result of these transactions, Gogo has reduced its total
debt by $385 million and will realize
approximately $70 million in
annualized cash interest expense savings. As of May 4, 2021, Gogo had $100
million of cash and cash equivalents, $828 million of total debt outstanding and no
amounts outstanding under the Revolver.
"The completion of our comprehensive refinancing transaction has
transformed our financial profile by improving our credit rating,
reducing our leverage and interest expense, and enhancing our
financial and strategic flexibility," said Barry Rowan, Gogo's Executive Vice President and
CFO. "This milestone will accelerate our free cash flow growth and
drive value creation."
Updated 2021 Financial Guidance
- Total revenue in the range of $310
million to $325 million
- Adjusted EBITDA in the range of $115
million to $125 million,
including approximately $12 million
of 5G-related expenses and excluding approximately $4 million of non-recurring separation and
migration costs related to the sale of the CA division
- Capital expenditures in the range of $25
million to $30 million, with
the majority tied to Gogo 5G
- Free cash flow(1) in the range of
$10 million to $20 million, including cash interest payments of
approximately $71 million
Long-Term Free Cash Flow Target
Reflecting the completion of its comprehensive refinancing
transaction, the Company is also now providing a long-term free
cash flow target of approximately $100
million for the full-year 2023, following the deployment of
the Gogo 5G network in 2022, and significant growth
thereafter.
(1)
|
See "Non-GAAP
Financial Measures" below.
|
Conference Call
The Company will host its first quarter conference call on
May 6, 2021 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 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:
2187912
Non-GAAP Financial Measures
We report certain non-GAAP financial measurements,
including Adjusted EBITDA and Free Cash Flow, in the supplemental
tables below. Management uses Adjusted EBITDA and Free Cash Flow
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 used by other companies. Adjusted EBITDA and Free
Cash Flow are not recognized measurements under accounting
principles generally accepted in the
United States, or GAAP; when analyzing our performance with
Adjusted EBITDA or liquidity with Free Cash Flow, as applicable,
investors should (i) evaluate each adjustment in our
reconciliation to the corresponding GAAP measure, 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 Free Cash Flow in addition to, and not
as an alternative to, consolidated net cash provided by (used in)
operating activities when evaluating our liquidity. No
reconciliation of the forecasted range for Adjusted EBITDA for
fiscal 2021 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.
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: our
ability to attract and retain customers and generate revenue from
the provision of our connectivity and entertainment services; our
reliance on our key OEMs and dealers for equipment sales; our
ability 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 and
performance; the impact of the COVID-19 pandemic and the measures
implemented to combat it; our ability to evaluate or pursue
strategic opportunities; our reliance on third parties for
equipment and services; our ability to recruit, train and retain
highly skilled employees; the achievement of the anticipated
benefits of the sale of the CA business or our ability to operate
as a standalone business; the impact of adverse economic
conditions; our ability to develop and deploy Gogo 5G; 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 availability
of additional ATG spectrum in the United
States or internationally; 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 impact of assertions by
third parties of infringement, misappropriation or other
violations; our ability to innovate and provide products and
services; the impact of government regulation of the internet; our
possession and use of personal information; the extent of expenses
or liabilities resulting from litigation; our ability to protect
our intellectual property; our substantial indebtedness,
limitations and restrictions in the agreements governing our
current and future indebtedness and our ability to service our
indebtedness; fluctuations in our operating results; the
utilization of our tax losses; and other events beyond our control
that may result in unexpected adverse operating results.
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,
2020 as filed with the Securities and Exchange Commission
("SEC") on March 11, 2021 and our
quarterly report on Form 10-Q as filed with the SEC on May 6, 2021.
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 world's largest provider of broadband connectivity
services for the business aviation market. We offer a
customizable suite of smart cabin systems for highly integrated
connectivity, inflight entertainment and voice solutions. Gogo's
products and services are installed on thousands of business
aircraft of all sizes and mission types from turboprops to the
largest global jets, and are utilized by the largest fractional
ownership operators, charter operators, corporate flight
departments and individuals.
As of March 31, 2021, Gogo
reported 1,900 business aircraft flying with Gogo's AVANCE L5 or L3
system installed, 5,892 aircraft flying with its ATG systems
onboard, and 4,614 aircraft with satellite connectivity installed.
Connect with us at business.gogoair.com.
Investor Relations
Contact:
|
Media Relations
Contact:
|
Will
Davis
|
Dave
Mellin
|
+1
917-519-6994
|
+1
303-301-3606
|
wdavis@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
|
|
|
|
Ended March
31,
|
|
|
|
2021
|
|
|
|
2020
|
|
Revenue:
|
|
|
|
|
|
|
|
Service
revenue
|
$
|
59,355
|
|
|
$
|
57,726
|
|
Equipment
revenue
|
|
14,514
|
|
|
|
13,201
|
|
Total
revenue
|
|
73,869
|
|
|
|
70,927
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of service
revenue (exclusive of items shown below)
|
|
14,095
|
|
|
|
11,007
|
|
Cost of equipment
revenue (exclusive of items shown below)
|
|
8,282
|
|
|
|
8,511
|
|
Engineering, design
and development
|
|
5,493
|
|
|
|
7,357
|
|
Sales and
marketing
|
|
3,729
|
|
|
|
4,450
|
|
General and
administrative
|
|
10,373
|
|
|
|
14,706
|
|
Depreciation and
amortization
|
|
4,117
|
|
|
|
3,579
|
|
Total operating
expenses
|
|
46,089
|
|
|
|
49,610
|
|
Operating
income
|
|
27,780
|
|
|
|
21,317
|
|
|
|
|
|
|
|
|
|
Other (income)
expense:
|
|
|
|
|
|
|
|
Interest
income
|
|
(57)
|
|
|
|
(578)
|
|
Interest
expense
|
|
29,294
|
|
|
|
31,143
|
|
Loss on extinguishment
of debt
|
|
4,397
|
|
|
|
-
|
|
Income
expense
|
|
(5)
|
|
|
|
(1)
|
|
Total other
expense
|
|
33,629
|
|
|
|
30,564
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations before income taxes
|
|
(5,849)
|
|
|
|
(9,247)
|
|
Income tax
provision
|
|
35
|
|
|
|
141
|
|
Net loss from
continuing operations
|
|
(5,884)
|
|
|
|
(9,388)
|
|
Net loss from
discontinued operations, net of tax
|
|
(1,801)
|
|
|
|
(75,390)
|
|
Net
loss
|
$
|
(7,685)
|
|
|
$
|
(84,778)
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to common stock per share – basic and
diluted:
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
$
|
(0.07)
|
|
|
$
|
(0.12)
|
|
Net loss from
discontinued operations
|
|
(0.02)
|
|
|
|
(0.93)
|
|
Net loss
|
$
|
(0.09)
|
|
|
$
|
(1.05)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares—basic and diluted
|
|
84,649
|
|
|
|
81,205
|
|
|
|
|
|
|
|
|
|
Gogo Inc. and
Subsidiaries
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
|
December
31,
|
|
|
|
2021
|
|
|
|
2020
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
455,152
|
|
|
$
|
435,345
|
|
Accounts receivable,
net of allowances of $813 and $1,044, respectively
|
|
36,232
|
|
|
|
39,833
|
|
Inventories
|
|
28,560
|
|
|
|
28,114
|
|
Prepaid expenses and
other current assets
|
|
9,625
|
|
|
|
8,934
|
|
Total current
assets
|
|
529,569
|
|
|
|
512,226
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
61,519
|
|
|
|
63,493
|
|
Intangible assets,
net
|
|
51,128
|
|
|
|
52,693
|
|
Operating lease
right-of-use assets
|
|
32,473
|
|
|
|
33,690
|
|
Other non-current
assets, net of allowances of $375 and $375, respectively
|
|
13,043
|
|
|
|
11,486
|
|
Total non-current
assets
|
|
158,163
|
|
|
|
161,362
|
|
Total
assets
|
$
|
687,732
|
|
|
$
|
673,588
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' deficit
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
11,322
|
|
|
$
|
11,013
|
|
Accrued
liabilities
|
|
94,134
|
|
|
|
83,009
|
|
Deferred
revenue
|
|
3,759
|
|
|
|
3,113
|
|
Current portion of
long-term debt
|
|
-
|
|
|
|
341,000
|
|
Total current
liabilities
|
|
109,215
|
|
|
|
438,135
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
1,163,822
|
|
|
|
827,968
|
|
Non-current operating
lease liabilities
|
|
36,354
|
|
|
|
38,018
|
|
Other non-current
liabilities
|
|
9,844
|
|
|
|
10,581
|
|
Total non-current
liabilities
|
|
1,210,020
|
|
|
|
876,567
|
|
Total
liabilities
|
|
1,319,235
|
|
|
|
1,314,702
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Stockholders'
deficit
|
|
|
|
|
|
|
|
Common
stock
|
|
9
|
|
|
|
9
|
|
Additional paid-in
capital
|
|
1,080,305
|
|
|
|
1,088,590
|
|
Accumulated other
comprehensive loss
|
|
(912)
|
|
|
|
(1,013)
|
|
Treasury stock, at
cost
|
|
(98,857)
|
|
|
|
(98,857)
|
|
Accumulated
deficit
|
|
(1,612,048)
|
|
|
|
(1,629,843)
|
|
Total stockholders'
deficit
|
|
(631,503)
|
|
|
|
(641,114)
|
|
Total liabilities
and stockholders' deficit
|
$
|
687,732
|
|
|
$
|
673,588
|
|
|
|
|
|
|
|
|
|
Gogo Inc. and
Subsidiaries
|
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
|
(in
thousands)
|
|
|
|
|
|
|
|
For the Three
Months
|
|
|
|
Ended March
31,
|
|
|
|
2021
|
|
|
|
2020
|
|
Operating
activities from continuing operations:
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(5,884)
|
|
|
$
|
(9,388)
|
|
Adjustments to
reconcile net loss to cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
4,117
|
|
|
|
3,579
|
|
Loss on asset
disposals, abandonments and write-downs
|
|
(100)
|
|
|
|
74
|
|
Provision for expected
credit losses
|
|
15
|
|
|
|
687
|
|
Deferred income
taxes
|
|
95
|
|
|
|
45
|
|
Stock-based
compensation expense
|
|
1,849
|
|
|
|
2,322
|
|
Amortization of
deferred financing costs
|
|
1,703
|
|
|
|
1,419
|
|
Accretion and
amortization of debt discount and premium
|
|
84
|
|
|
|
3,326
|
|
Loss on settlement of
convertible notes
|
|
4,397
|
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
3,586
|
|
|
|
4,220
|
|
Inventories
|
|
(446)
|
|
|
|
(2,196)
|
|
Prepaid expenses and
other current assets
|
|
(375)
|
|
|
|
(3,872)
|
|
Contract
assets
|
|
(1,886)
|
|
|
|
(2,558)
|
|
Accounts
payable
|
|
292
|
|
|
|
6,108
|
|
Accrued
liabilities
|
|
(10,424)
|
|
|
|
(6,882)
|
|
Deferred
revenue
|
|
646
|
|
|
|
308
|
|
Accrued
interest
|
|
27,559
|
|
|
|
26,413
|
|
Other non-current
assets and liabilities
|
|
(654)
|
|
|
|
285
|
|
Net cash provided
by operating activities from continuing
operations
|
|
24,574
|
|
|
|
23,890
|
|
|
|
|
|
|
|
|
|
Investing
activities from continuing operations:
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(360)
|
|
|
|
(150)
|
|
Acquisition of
intangible assets—capitalized software
|
|
(342)
|
|
|
|
(726)
|
|
Net cash used in
investing activities from continuing
operations
|
|
(702)
|
|
|
|
(876)
|
|
|
|
|
|
|
|
|
|
Financing
activities from continuing operations:
|
|
|
|
|
|
|
|
Proceeds from credit
facility draw
|
|
-
|
|
|
|
22,000
|
|
Repurchase of
convertible notes
|
|
-
|
|
|
|
(2,498)
|
|
Payment of debt
issuance costs
|
|
(550)
|
|
|
|
-
|
|
Payments on financing
leases
|
|
(124)
|
|
|
|
-
|
|
Stock-based
compensation activity
|
|
(2,646)
|
|
|
|
(397)
|
|
Net cash provided
by (used in) financing activities from continuing
operations
|
|
(3,320)
|
|
|
|
19,105
|
|
|
|
|
|
|
|
|
|
Cash flows from
discontinued operations:
|
|
|
|
|
|
|
|
Cash provided by (used
in) operating activities
|
|
(748)
|
|
|
|
14,137
|
|
Cash used in investing
activities
|
|
-
|
|
|
|
(14,345)
|
|
Cash used in financing
activities
|
|
-
|
|
|
|
(247)
|
|
Net cash used in
discontinued operations
|
|
(748)
|
|
|
|
(455)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
3
|
|
|
|
51
|
|
|
|
|
|
|
|
|
|
Increase in cash,
cash equivalents and restricted cash
|
|
19,807
|
|
|
|
41,715
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
|
435,870
|
|
|
|
177,675
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
455,677
|
|
|
$
|
219,390
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
455,677
|
|
|
$
|
219,390
|
|
Less: current
restricted cash
|
|
525
|
|
|
|
560
|
|
Less: non-current
restricted cash
|
|
-
|
|
|
|
4,601
|
|
Cash and cash
equivalents at end of period
|
$
|
455,152
|
|
|
$
|
214,229
|
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information:
|
|
|
|
|
|
|
|
Cash paid for
interest
|
$
|
31
|
|
|
$
|
66
|
|
Gogo Inc. and
Subsidiaries
Supplemental
Information – Key Operating Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
|
|
|
|
|
|
Ended March
31,
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft online (at
period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
|
|
|
|
|
|
|
|
5,892
|
|
|
|
5,713
|
|
Satellite
|
|
|
|
|
|
|
|
|
|
4,614
|
|
|
|
4,939
|
|
Average monthly
service revenue per aircraft online
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
|
|
|
|
|
|
|
$
|
3,085
|
|
|
$
|
3,143
|
|
Satellite
|
|
|
|
|
|
|
|
|
|
239
|
|
|
|
223
|
|
Units Sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
|
|
|
|
|
|
|
|
135
|
|
|
|
125
|
|
Satellite
|
|
|
|
|
|
|
|
|
|
80
|
|
|
|
56
|
|
Average equipment
revenue per unit sold (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
|
|
|
|
|
|
|
$
|
78
|
|
|
$
|
77
|
|
Satellite
|
|
|
|
|
|
|
|
|
|
46
|
|
|
|
60
|
|
- 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. This number
excludes aircraft receiving ATG service as part of the ATG Network
Sharing Agreement with Intelsat.
- 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.
- Average monthly connectivity service revenue per ATG
aircraft online. We define average monthly connectivity service
revenue per ATG aircraft online as the aggregate ATG connectivity
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). Revenue share earned from the ATG Network
Sharing Agreement with Intelsat is excluded from this
calculation.
- 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).
- Units sold. We define units sold as the number of ATG or
satellite units for which we recognized revenue during the
period.
- 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.
- 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.
Gogo Inc. and
Subsidiaries
Supplemental
Information – Revenue and Cost of Revenue
(in thousands,
unaudited)
|
|
|
|
For the Three
Months
|
|
%
Change
|
|
|
|
|
Ended March
31,
|
|
2021
over
|
|
|
|
|
2021
|
|
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
$
|
59,355
|
|
|
$
|
57,726
|
|
2.8
|
%
|
|
Equipment
revenue
|
|
14,514
|
|
|
|
13,201
|
|
9.9
|
%
|
|
Total
revenue
|
$
|
73,869
|
|
|
$
|
70,927
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
%
Change
|
|
|
|
|
Ended March
31,
|
|
2021
over
|
|
|
|
|
2021
|
|
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service
revenue (1)
|
$
|
14,095
|
|
|
$
|
11,007
|
|
28.1
|
%
|
|
Cost of equipment
revenue (1)
|
$
|
8,282
|
|
|
$
|
8,511
|
|
(2.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes depreciation
and amortization expense.
|
Gogo Inc. and
Subsidiaries
|
|
Reconciliation of
GAAP to Non-GAAP Measures
|
|
(in thousands,
unaudited)
|
|
|
|
For the Three
Months Ended
|
|
|
|
March 31,
2021
|
|
|
|
December 31,
2020
|
|
|
|
March 31,
2020
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to common stock (GAAP)
|
$
|
(7,685)
|
|
|
$
|
845
|
|
|
$
|
(84,778)
|
|
Interest
expense
|
|
29,294
|
|
|
|
32,192
|
|
|
|
31,143
|
|
Interest
income
|
|
(57)
|
|
|
|
(33)
|
|
|
|
(578)
|
|
Income tax
provision
|
|
35
|
|
|
|
(362)
|
|
|
|
141
|
|
Depreciation and
amortization
|
|
4,117
|
|
|
|
4,049
|
|
|
|
3,579
|
|
EBITDA
|
|
25,704
|
|
|
|
36,691
|
|
|
|
(50,493)
|
|
Stock-based
compensation expense
|
|
1,849
|
|
|
|
(475)
|
|
|
|
2,322
|
|
Loss from discontinued
operations
|
|
1,801
|
|
|
|
(16,925)
|
|
|
|
75,390
|
|
Loss on settlement of
convertible notes
|
|
4,397
|
|
|
|
-
|
|
|
|
-
|
|
Separation costs
related to CA sale
|
|
145
|
|
|
|
-
|
|
|
|
-
|
|
Adjusted
EBITDA
|
$
|
33,896
|
|
|
$
|
19,291
|
|
|
$
|
27,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow:
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities (GAAP)
(1)
|
$
|
24,574
|
|
|
$
|
(15,802)
|
|
|
$
|
23,890
|
|
Consolidated capital
expenditures (1)
|
|
(702)
|
|
|
|
(2,627)
|
|
|
|
(876)
|
|
Free cash
flow
|
$
|
23,872
|
|
|
$
|
(18,429)
|
|
|
$
|
23,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See unaudited
condensed consolidated statement of cash flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gogo Inc. and
Subsidiaries
|
Reconciliation of
Estimated Full-Year GAAP Net Cash
|
Provided by
Operating Activities to Non-GAAP Measures
|
(in millions,
unaudited)
|
|
|
2021
|
|
|
|
2023
|
|
Free Cash
Flow:
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities (GAAP)
|
$
|
40
|
|
to
|
$
|
45
|
|
|
$
|
120
|
|
Consolidated capital
expenditures
|
|
(30)
|
|
to
|
|
(25)
|
|
|
|
(20)
|
|
Free cash
flow
|
$
|
10
|
|
to
|
$
|
20
|
|
|
$
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Definition of Non-GAAP Measures
EBITDA represents net loss attributable to common stock
before interest expense, interest income, income taxes and
depreciation and amortization expense.
Adjusted EBITDA represents EBITDA adjusted for (i)
stock-based compensation expense included in the results of
continuing operations, (ii) the results of discontinued operations,
including stock-based compensation expense, (iii) loss on
settlement of convertible notes and (iv) separation costs related
to the sale of CA. 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 that 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 that 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 it is useful for an understanding of our operating
performance to exclude the results of our discontinued operations
from Adjusted EBITDA because they are not part of our ongoing
operations.
We believe it is useful for an understanding of our operating
performance to exclude the loss on settlement of convertible notes
from Adjusted EBITDA because of the infrequently occurring nature
of this activity.
We believe it is useful for an understanding of our operating
performance to exclude separation costs related to the sale of CA
from Adjusted EBITDA because of the non-recurring nature of this
activity.
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.
Free Cash Flow represents net cash provided by operating
activities, less purchases of property and equipment and the
acquisition of intangible assets. We believe that Free Cash Flow
provides meaningful information regarding our liquidity.
View original
content:http://www.prnewswire.com/news-releases/gogo-announces-first-quarter-2021-financial-results-301285104.html
SOURCE Gogo Inc.