talksatellite   AMERICAS    

Daily news


AMERICAS
EMEA

ASIA-PACIFIC

 
 
   
 
     
     
     

 

RigNet Announces First Quarter 2018 Earnings Results


May 07, 2018

RigNet, Inc. reported results for the quarter ended March 31, 2018.

Quarterly revenue was $53.8 million representing an increase of $5.8 million, or 12.0%, compared to the prior year quarter and a decrease of $3.0 million, or 5.2%, compared to the prior quarter. Compared to the prior year quarter revenue grew in all segments: a $2.9 million increase in Apps & IoT, a $2.5 million increase in Systems Integration revenue and a $0.4 million increase in Managed Services revenue. Revenue increased due to our strategy of growth into the application layer and internet-of-things space, increased activity on Systems Integration projects and revenue from acquisitions. The revenue decrease compared to the prior quarter reflects a $2.9 million decrease in Systems Integration revenue and a $0.4 million decrease in Apps & IoT primarily due to the prior quarter having elevated equipment sales, partially offset by a $0.3 million increase in Managed Services revenue. The revenue decrease compared to the prior quarter was primarily due to decreased activity on Systems Integration projects and was also impacted by 2 fewer days (2.2%) in the first quarter than the fourth quarter.

GAAP net loss attributable to common stockholders was $5.6 million, or $0.31 per share, compared to net loss attributable to common stockholders of $2.0 million, or $0.11 per share, in the prior year quarter and net loss attributable to common stockholders of $5.7 million, or $0.31 per share, in the prior quarter.  

Quarterly Adjusted EBITDA was $7.4 million compared to $7.2 million in the prior year quarter and $8.5 million in the prior quarter. The increase compared to the prior year quarter was due primarily to increased operating activity and revenue. The decrease compared to the prior quarter was due primarily to decreased revenue.

Capital expenditures were $6.6 million compared to $3.2 million in the prior year quarter and $4.0 million in the prior quarter.  Capital expenditures increased as we invested in success-based projects. Unlevered Free Cash Flow, defined as Adjusted EBITDA less capital expenditures, was $0.8 million compared to $4.1 million in the prior year quarter and $4.6 million in the prior quarter.

In the quarter ended March 31, 2018, the Company recorded $0.8 million in acquisition costs and $0.2 million in executive departure costs. In the quarter ended December 31, 2017, the Company recorded a $0.5 million increase in fair value of an earn-out, $1.2 million in executive departure costs and $0.6 million in acquisition costs. The acquisition costs, executive departure costs and change in fair value of the earn-out are added back to net loss in our non-GAAP measures below. In the third quarter of 2017, after the acquisition of ESS, the Company reorganized its business and reportable segments into Managed Services, Apps & IoT and Systems Integration. All historical segment financial data has been recast to conform to the current presentation.  

Steven Pickett, chief executive officer and president, commented, "In the first quarter of 2018, the RigNet team delivered 12.0% revenue growth compared to the prior year quarter, two consecutive quarters of Managed Service segment revenue growth, and increased site count in all categories compared to the prior year quarter  and prior quarter. RigNet’s bundling of Applications and IoT to our core offering contributed to site count growth of 20.5% in the last 12 months.  The recent acquisitions of Auto-Comm and SAFCON will grow both our Managed Services and Systems Integration businesses and will further enhance our relationships within the oil and gas industry.”