KVH Industries, Inc., (Nasdaq:KVHI) reported financial results for
the third quarter ended September 30, 2015 today. Revenue for
the third quarter of 2015 was $44.5 million, up 1% from the quarter
ended September 30, 2014. A net loss for the period of $0.5
million, or $0.03 per share, was reported. Non-GAAP net
income of $1.8 million, or $0.12 per diluted share, was also
reported. The company will hold a conference call to discuss
these results at 10:30 a.m. ET today, which can be accessed at
investors.kvh.com. Following the call, a replay of the
webcast will be available through the company’s website.
Highlights
- Subscription-based service revenue represented 61% of total
revenue in Q3, up from 58% a year ago
- Record training revenues drove our 6% year-over-year increase
in content and service revenues
- Although TACNAV revenues were down 44% year-over-year, strong
TACNAV backlog is in place for deliveries scheduled to occur in the
fourth quarter
- Record fiber optic gyro IMU sales in Q3
- Record 50% gross profit margins for services revenue
“Overall we reported solid results in the third quarter with
both revenue and EPS coming in within our previous guidance range,”
said Martin Kits van Heyningen, KVH’s chief executive
officer. “We recorded record sales of our new IMU product
line, which has been well accepted by our customers. Although
we continued to see more vessels serving the offshore oil and gas
services being laid up, other sectors, like commercial shipping and
leisure, remained strong during the quarter. We’re expecting
record revenue in the fourth quarter with strong sales of our
TACNAV products based on the current backlog.”
Financial Highlights (in millions, except per
share data)
|
Quarter
Ended |
Nine Months
Ended |
|
September
30, 2015 |
September
30, 2014 |
September
30, 2015 |
September
30, 2014 |
GAAP Results |
|
|
|
|
Revenue |
$ |
44.5 |
|
$ |
44.3 |
|
$ |
130.6 |
|
$ |
122.2 |
|
Net (loss) income |
$ |
(0.5 |
) |
$ |
0.2 |
|
$ |
(1.8 |
) |
$ |
(0.9 |
) |
Net (loss) income per diluted share |
$ |
(0.03 |
) |
$ |
0.01 |
|
$ |
(0.12 |
) |
$ |
(0.06 |
) |
|
|
|
|
|
Non-GAAP Results |
|
|
|
|
Non-GAAP net income |
$ |
1.8 |
|
$ |
3.0 |
|
$ |
4.9 |
|
$ |
4.9 |
|
Non-GAAP net income per diluted share |
$ |
0.12 |
|
$ |
0.20 |
|
$ |
0.31 |
|
$ |
0.32 |
|
Adjusted EBITDA |
$ |
4.2 |
|
$ |
5.9 |
|
$ |
11.5 |
|
$ |
10.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The adjustments reflected in our non-GAAP financial measures for
periods in 2014 have changed from our previous presentation.
For more information regarding our non-GAAP financial measures, see
the tables at the end of this release.
Third Quarter Financial Summary
Revenue was $44.5 million for the third quarter, up 1% compared
to $44.3 million in the third quarter of 2014. Third quarter
product revenues of $15.6 million were 7% lower than the prior year
quarter, primarily driven by an expected decline in TACNAV
revenues, which were down 44%. Service revenues in the third
quarter were $28.8 million, an increase of 5% compared to the third
quarter of 2014. Airtime service revenues, which include
mini-VSAT Broadband airtime revenues, were up 5%
year-over-year. Content and services revenues, which include
our entertainment and e-Learning and safety content, were up 6% in
the third quarter of 2015 compared to the third quarter of 2014,
primarily driven by higher Videotel revenues.
For the third quarter, the net loss on a GAAP basis was $0.5
million, or $0.03 per share, while non-GAAP net income was $1.8
million or $0.12 per diluted share. We did experience a
currency loss during the quarter that negatively impacted the
current quarter EPS by two cents on both a GAAP and non-GAAP
basis. During the same period last year, the company reported
GAAP net income of $0.2 million, or $0.01 per diluted share, and
non-GAAP net income of $3.0 million, or $0.20 per diluted
share.
Non-GAAP adjusted EBITDA was $4.2 million for the third quarter
of 2015 compared to $5.9 million in the prior year quarter.
Included in non-GAAP adjusted EBITDA was $1.4 million and $1.5
million related to the amortization of intangible assets for the
three months ended September 30, 2015 and 2014, respectively.
Nine Months Ended September 30 Financial
Summary
For the nine months ended September 30, 2015, revenue was $130.6
million, up 7%, compared to $122.2 million for the nine months
ended September 30, 2014. Product revenues for the 2015
nine-month period of $49.0 million were 12% lower than the
comparable period last year, which was driven primarily by a 33%
decline in guidance & stabilization product revenues
year-over-year, most notably TACNAV product revenues. Service
revenues for the 2015 nine-month period of $81.7 million were 23%
higher than the comparable period last year. Airtime service
revenues in the 2015 nine-month period increased 7% year-over-year
while content and services revenues increased 57%, reflecting the
acquisition of Videotel in July 2014.
The company reported a GAAP net loss of $1.8 million for the
nine months ended September 30, 2015, or $0.12 per share.
During the same period last year, the company recorded a GAAP net
loss of $0.9 million, or $0.06 per share. The company
recorded non-GAAP net income of $4.9 million, or $0.31 per diluted
share, for the nine months ended September 30, 2015 compared to
non-GAAP net income of $4.9 million, or $0.32 per diluted share, in
the prior year period.
Fourth Quarter 2015 Outlook
As we have previously guided, we expect to see a substantial
increase in TACNAV revenues in the fourth quarter. At this
point, all of the TACNAV in our guidance is in backlog for Q4
delivery.
A portion of our revenues and costs are denominated in pounds
sterling, and there have recently been significant fluctuations in
currency movements relative to the U.S. dollar throughout the
year. Significant changes to currency exchange rates,
particularly between the U.S. dollar and pounds sterling, may have
a material impact on our earnings. Our guidance for the
fourth quarter is as follows:
- Revenue for the fourth quarter is projected to be in the range
of $52 million to $56 million.
- For the fourth quarter, GAAP net income per diluted share is
expected to be in the range of $0.23 to $0.28. Non-GAAP net
income per diluted share is expected to be in the range of $0.38 to
$0.43. Non-GAAP adjusted EBITDA is projected to be in the
range of $10.5 million to $12.0 million.
Other Recent Announcements
- We announced that Seaspan, a leading independent owner,
operator and manager of containerships, selected our mini-VSAT
Broadband service and IP-MobileCast content delivery service for 18
of its newest vessels. Seaspan’s fleet already utilize KVH
services, including Videotel maritime training and KVH Media Group
news and movie services.
- We were selected by Italian shipbuilder, Monte Carlo Yachts, as
its preferred supplier of satellite television antenna systems for
its flagship 105-foot megayacht.
- We launched mini-VSAT Broadband 2.0, our second generation
mini-VSAT Broadband solution which has been designed to deliver
data at higher network speeds, lower price points than previous
plans, together with a new suite of tools and support options to
optimize the service.
- We announced that we won three product awards from the National
Marine Electronics Association for 2015. The three products
that won were the TracPhone V3-IP, the TracVision TV3, and the
TracVision TV-series app.
Please review the corresponding press releases for more details
regarding these developments.
Conference Call Details
KVH Industries will host a conference call today at 10:30 a.m.
ET through the company’s website. The conference call can be
accessed at investors.kvh.com and listeners are welcome to submit
questions pertaining to the earnings release and conference call to
ir@kvh.com. The audio archive will be available on the
company website within three hours of the completion of the
call.
Non-GAAP Financial Measures
We are providing non-GAAP financial information, including
non-GAAP net income (loss), non-GAAP diluted EPS, and non-GAAP
adjusted EBITDA, as a supplement to the condensed financial
statements, which are prepared in accordance with generally
accepted accounting principles (“GAAP”). Management uses
these non-GAAP financial measures internally in analyzing financial
results to assess operational performance and liquidity. The
presentation of this financial information is not intended to be
considered in isolation or as a substitute for the financial
information prepared in accordance with GAAP. KVH believes
that both management and investors benefit from referring to these
non-GAAP financial measures in assessing performance and when
planning, forecasting, and analyzing future periods. KVH
believes these non-GAAP financial measures are useful to investors
because they allow for greater transparency with respect to key
financial metrics used in making operating decisions and because
its investors and analysts use them to help assess the health of
its business.
Some limitations of non-GAAP adjusted EBITDA, non-GAAP net
income (loss), and non-GAAP diluted EPS, include the following:
- Non-GAAP adjusted EBITDA represents net income (loss) before
interest income, interest expense, taxes, depreciation,
amortization, stock-based compensation, acquisition-related
expenses, and adjustments resulting from the application of
purchase accounting in connection with acquisitions.
- Non-GAAP net income (loss) and diluted EPS exclude
acquisition-related expenses, adjustments resulting from the
application of purchase accounting in connection with acquisitions,
adjustments related to stock-based compensation and intangible
amortization, all net of tax, and also excludes any discrete tax
items.
Other companies, including companies in KVH’s industry, may
calculate these non-GAAP financial measures differently or not at
all, which will reduce their usefulness as a comparative
measure.
Because of these limitations, investors should consider these
non-GAAP financial measures together with other financial
performance measures, including net income (loss), diluted net
income (loss) per share, and KVH’s other financial results
presented in accordance with GAAP. See the GAAP to Non-GAAP
reconciliations below for further details.
About KVH Industries, Inc.
KVH Industries is a leading manufacturer of solutions that
provide global high-speed Internet, television, and voice services
via satellite to mobile users at sea and on land and is a leading
news, music, entertainment, and training content provider to many
industries including maritime, retail, and leisure. KVH
Industries is also a premier manufacturer of high-performance
sensors and integrated inertial systems for defense and commercial
guidance and stabilization applications. KVH is based in
Middletown, RI, with research, development, and manufacturing
operations in Middletown, RI, and Tinley Park, IL. The
company’s global presence includes offices in Belgium, Brazil,
Cyprus, Denmark, Hong Kong, Japan, the Netherlands, Norway,
Singapore, and the United Kingdom.
This press release contains forward-looking
statements that involve risks and uncertainties. For example,
forward-looking statements include statements regarding our
financial goals for future periods, our anticipated revenue sales
pipeline, backlog, competitive positioning, profitability, and
product orders. The actual results could differ materially
from the statements made in this press release. Factors that
might cause these differences include, but are not limited to:
continued substantial fluctuations in military sales, including to
foreign customers; the unpredectibility of defense budget
priorities as well as the order timing, purchasing schedules, and
priorities for defense products, including possible order
cancellations; the uncertain impact of potential budget cuts by
government customers; continued adverse impacts of currency
fluctuations; the impact of extended economic weakness on the sale
and use of motor vehicles and marine vessels; the need to increase
sales of the TracPhone V-IP series products and related services to
improve airtime gross margins; the need for, or delays in,
qualification of products to customer or regulatory standards;
unanticipated declines or changes in customer demand, due to
economic, seasonal, and other factors, including new pricing
models, particularly with respect to the TracPhone V-IP series;
recent increases in airtime termination rates and lower unit sales
in our mobile business; increased price and service competition in
the mobile communications market; potential reduced sales to
companies in or dependent upon the oil industry as a result of
declining oil prices; exposure for potential intellectual property
infringement; potential litigation expenses; fluctuations in
interest rates; potential changes in tax and accounting
requirements or assessments, including management’s assessment of
the probability and effect of future events; stock price
volatility; and export restrictions, delays in procuring export
licenses, and other international risks. These and other
factors are discussed in more detail in KVH’s Quarterly Report on
Form 10-Q filed with the Securities and Exchange Commission on
August 10, 2015. Copies are available through its Investor
Relations department and website, http://investors.kvh.com.
KVH does not assume any obligation to update its forward-looking
statements to reflect new information and developments.
KVH Industries, Inc., has used, registered, or
applied to register its trademarks in the USA and other countries
around the world, including the following marks: KVH, KVH logo,
Azimuth, TracVision, TracPhone, Tri-Americas, CommBox, TACNAV,
IP-MobileCast, Videotel, Sailcomp, mini-VSAT Broadband and the
mini-VSAT Broadband logo, E•Core, Crewtoo, Muzo, and the banded,
dome-shaped housing of its satellite antennas. Other
trademarks are the property of their respective companies.
|
|
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(in
thousands, except per share amounts, unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
September 30, |
|
September 30, |
|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
Sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
$ |
|
15,622 |
|
|
$ |
|
16,862 |
|
|
$ |
|
48,954 |
|
|
$ |
|
55,867 |
|
|
|
Service |
|
|
28,833 |
|
|
|
|
27,388 |
|
|
|
|
81,661 |
|
|
|
|
66,290 |
|
|
|
Net sales |
|
|
44,455 |
|
|
|
|
44,250 |
|
|
|
|
130,615 |
|
|
|
|
122,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of product sales |
|
|
10,275 |
|
|
|
|
10,769 |
|
|
|
|
32,777 |
|
|
|
|
34,179 |
|
|
|
Costs of service sales |
|
|
14,454 |
|
|
|
|
14,679 |
|
|
|
|
41,407 |
|
|
|
|
37,098 |
|
|
|
Research and development |
|
|
3,472 |
|
|
|
|
3,283 |
|
|
|
|
10,704 |
|
|
|
|
10,832 |
|
|
|
Sales, marketing and support |
|
|
7,889 |
|
|
|
|
8,105 |
|
|
|
|
24,251 |
|
|
|
|
23,252 |
|
|
|
General and
administrative |
|
|
8,159 |
|
|
|
|
6,898 |
|
|
|
|
23,436 |
|
|
|
|
17,300 |
|
|
|
Total costs and
expenses |
|
|
44,249 |
|
|
|
|
43,734 |
|
|
|
|
132,575 |
|
|
|
|
122,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
206 |
|
|
|
|
516 |
|
|
|
|
(1,960 |
) |
|
|
|
(504 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
129 |
|
|
|
|
166 |
|
|
|
|
421 |
|
|
|
|
581 |
|
|
|
Interest expense |
|
|
363 |
|
|
|
|
493 |
|
|
|
|
1,097 |
|
|
|
|
870 |
|
|
|
Other (expense) income, net |
|
|
(382 |
) |
|
|
|
(156 |
) |
|
|
|
654 |
|
|
|
|
(70 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income
tax expense (benefit) |
|
|
(410 |
) |
|
|
|
33 |
|
|
|
|
(1,982 |
) |
|
|
|
(863 |
) |
|
|
Income tax expense (benefit) |
|
|
53 |
|
|
|
|
(118 |
) |
|
|
|
(134 |
) |
|
|
|
54 |
|
|
|
Net (loss)
income |
$ |
|
(463 |
) |
|
$ |
|
151 |
|
|
$ |
|
(1,848 |
) |
|
$ |
|
(917 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
|
(0.03 |
) |
|
$ |
|
0.01 |
|
|
$ |
|
(0.12 |
) |
|
$ |
|
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
15,661 |
|
|
|
|
15,456 |
|
|
|
|
15,608 |
|
|
|
|
15,396 |
|
|
|
Diluted |
|
|
15,661 |
|
|
|
|
15,586 |
|
|
|
|
15,608 |
|
|
|
|
15,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
|
CONDENSED
CONSOLIDATED BALANCE
SHEETS |
|
(in
thousands, unaudited) |
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2015 |
|
2014 |
|
ASSETS |
|
|
|
|
|
|
Cash, cash equivalents and
marketable securities |
$ |
50,222 |
|
$ |
49,802 |
|
Accounts receivable, net |
|
38,118 |
|
|
39,936 |
|
Inventories |
|
21,193 |
|
|
17,424 |
|
Other current assets |
|
5,214 |
|
|
2,953 |
|
Deferred income taxes |
|
2,787 |
|
|
2,772 |
|
Total current
assets |
|
117,534 |
|
|
112,887 |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
41,323 |
|
|
41,696 |
|
Goodwill |
|
37,520 |
|
|
40,454 |
|
Intangible assets, net |
|
28,734 |
|
|
33,641 |
|
Other non-current assets |
|
3,331 |
|
|
4,469 |
|
Non-current deferred income
taxes |
|
2,650 |
|
|
2,690 |
|
Total assets |
$ |
231,092 |
|
$ |
235,837 |
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Accounts payable and accrued
expenses |
$ |
36,587 |
|
$ |
33,708 |
|
Deferred revenue |
|
8,035 |
|
|
7,791 |
|
Current portion of long-term
debt |
|
6,219 |
|
|
6,188 |
|
Total current
liabilities |
|
50,841 |
|
|
47,687 |
|
|
|
|
|
|
|
|
Other long-term liabilities |
|
1,374 |
|
|
1,459 |
|
Non-current deferred tax
liability |
|
5,484 |
|
|
5,464 |
|
Long-term debt, excluding current
portion |
|
60,019 |
|
|
64,687 |
|
Stockholders' equity |
|
113,374 |
|
|
116,540 |
|
Total liabilities and
stockholders' equity |
$ |
231,092 |
|
$ |
235,837 |
|
|
|
|
|
|
|
|
|
|
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
|
RECONCILIATION OF NET (LOSS) INCOME TO
NON-GAAP NET INCOME |
|
(in thousands, unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
September
30, |
|
September
30, |
|
|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
Net
(loss) income - GAAP |
$ |
|
(463 |
) |
|
$ |
|
151 |
|
|
$ |
|
(1,848 |
) |
|
$ |
|
(917 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discrete tax expense
(benefit), net (a) |
|
|
64 |
|
|
|
|
(299 |
) |
|
|
|
79 |
|
|
|
|
23 |
|
|
|
|
Stock-based
compensation expense, net of tax |
|
|
632 |
|
|
|
|
494 |
|
|
|
|
1,869 |
|
|
|
|
1,749 |
|
|
|
|
Transaction
costs related to business acquisition, net of tax (b) |
|
- |
|
|
|
|
765 |
|
|
|
|
- |
|
|
|
|
1,195 |
|
|
|
|
Acquisition-related
revenue adjustments, net of tax |
|
|
- |
|
|
|
|
419 |
|
|
|
|
- |
|
|
|
|
419 |
|
|
|
|
Acquisition-related
compensation |
|
|
194 |
|
|
|
|
- |
|
|
|
|
581 |
|
|
|
|
- |
|
|
|
|
Amortization of
intangibles |
|
|
1,409 |
|
|
|
|
1,512 |
|
|
|
|
4,170 |
|
|
|
|
2,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income - Non-GAAP |
$ |
|
1,836 |
|
|
$ |
|
3,042 |
|
|
$ |
|
4,851 |
|
|
$ |
|
4,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per common share - Non-GAAP: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
|
0.12 |
|
|
$ |
|
0.20 |
|
|
$ |
|
0.31 |
|
|
$ |
|
0.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note - The impact of the change in the deferred income
tax asset valuation allowance on the number of diluted shares
outstanding did not alter the diluted net income per common share
result presented for both periods. As a result, the inconsequential
impact to the diluted share number has not been
included.
(a) For the three and nine months ended September 30,
2015, represents a change in the valuation allowance on a state
research and development tax credit, uncertain tax position
adjustments, and an adjustment to the provision as a result of the
filing of the 2014 tax return. For the three and nine months
ended September 30, 2014, represents a change in the valuation
allowance on a state research and development tax credit, and an
adjustment to the provision as a result of the filing of the 2013
tax return.
(b) For the three and nine months ended September 30,
2014, represents the transaction cost related to the acquisition of
Super Dragon Limited and Videotel Marine Asia Limited, which closed
July 2, 2014.
|
|
KVH INDUSTRIES, INC. AND
SUBSIDIARIES |
|
RECONCILIATION OF GAAP NET (LOSS) INCOME TO
NON-GAAP |
|
EBITDA AND NON-GAAP ADJUSTED
EBITDA |
|
(in thousands, unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
|
September
30, |
|
September
30, |
|
|
|
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
|
GAAP net (loss) income |
$ |
|
(463 |
) |
|
$ |
|
151 |
|
|
$ |
|
(1,848 |
) |
|
$ |
|
(917 |
) |
|
|
|
|
Income tax expense
(benefit) |
|
|
53 |
|
|
|
|
(118 |
) |
|
|
|
(134 |
) |
|
|
|
54 |
|
|
|
|
|
Interest expense
(income), net |
|
|
234 |
|
|
|
|
327 |
|
|
|
|
676 |
|
|
|
|
289 |
|
|
|
|
|
Depreciation and
amortization (a) |
|
|
3,195 |
|
|
|
|
3,264 |
|
|
|
|
9,427 |
|
|
|
|
6,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP EBITDA |
|
|
3,019 |
|
|
|
|
3,624 |
|
|
|
|
8,121 |
|
|
|
|
6,100 |
|
|
|
|
|
Stock-based
compensation expense |
|
|
958 |
|
|
|
|
925 |
|
|
|
|
2,832 |
|
|
|
|
2,827 |
|
|
|
|
|
Transaction costs
related to business acquisition |
|
|
- |
|
|
|
|
765 |
|
|
|
|
- |
|
|
|
|
1,228 |
|
|
|
|
|
Acquisition-related
revenue adjustments |
|
|
- |
|
|
|
|
635 |
|
|
|
|
- |
|
|
|
|
635 |
|
|
|
|
|
Acquisition-related
compensation |
|
|
194 |
|
|
|
|
- |
|
|
|
|
581 |
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted EBITDA |
$ |
|
4,171 |
|
|
$ |
|
5,949 |
|
|
$ |
|
11,534 |
|
|
$ |
|
10,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes amortization of intangible assets resulting
from acquisitions.
|
|
|
|
|
KVH INDUSTRIES, INC AND
SUBSIDIARIES |
|
NON-GAAP ADJUSTED EBITDA
GUIDANCE |
|
(in millions, unaudited) |
|
|
|
|
|
|
|
Fourth Quarter |
|
Full Year |
|
|
Fiscal 2015 (Projected) |
|
Fiscal 2015 (Projected) |
|
|
|
|
|
|
GAAP net income |
$3.6 - $4.5 |
|
$1.8 - $2.7 |
|
|
|
|
|
|
Estimated income tax
expense |
$2.4 - $3.0 |
|
$2.3 - $2.9 |
|
Estimated interest
expense (income), net |
$ |
0.2 |
|
|
$ |
0.8 |
|
|
Estimated depreciation
and amortization (a) |
$ |
3.2 |
|
|
$ |
12.6 |
|
|
Estimated stock-based
compensation expense |
$ |
0.9 |
|
|
$ |
3.7 |
|
|
Acquisition-related
compensation |
$ |
0.2 |
|
|
$ |
0.8 |
|
|
|
|
|
|
|
Non-GAAP adjusted
EBITDA |
$10.5 - $12.0 |
|
$22.0 - $23.5 |
|
|
|
|
|
|
(a) Reflects amortization of intangible assets resulting
from acquisitions and depreciation of fixed assets.
|
KVH INDUSTRIES, INC AND
SUBSIDIARIES |
|
NON-GAAP EPS GUIDANCE |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
Full Year |
|
|
Fiscal 2015 (Projected) |
|
Fiscal 2015 (Projected) |
|
|
|
|
|
|
Net income per common
share |
$0.23 - $0.28 |
|
$0.11 - $0.16 |
|
|
|
|
|
|
Estimated amortization
(a) |
$ |
0.09 |
|
|
$ |
0.36 |
|
|
Estimated stock-based
compensation expense, net of tax |
$ |
0.05 |
|
|
$ |
0.15 |
|
|
Acquisition-related
compensation |
$ |
0.01 |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
Non-GAAP net income per
common share |
$0.38 - $0.43 |
|
$0.67 - $0.72 |
|
|
|
|
|
|
(a) Includes amortization of intangible assets resulting
from acquisitions.
Contact:
KVH Industries, Inc.
Peter Rendall
401-847-3327
prendall@kvh.com
FTI Consulting
Christine Mohrmann
212-850-5600
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