ViaSat Announces Fourth Quarter and Fiscal Year 2012 Results
May 17, 2012
ViaSat Inc. announced financial results for the fourth quarter and fiscal year 2012. The fiscal fourth quarter results include new contract awards of $297.4 million, revenues of $240.5 million, Adjusted EBITDA of $36.9 million, non-GAAP diluted net loss attributable to ViaSat common stockholders of $0.01 per share, or $0.17 per share on a diluted GAAP basis, and cash flows from operations of $76.5 million. For the fiscal year, ViaSat reported new contract awards of over $1.0 billion, revenues of $863.6 million, Adjusted EBITDA of $149.0 million, non-GAAP diluted net income attributable to ViaSat common stockholders of $0.73 per share, or $0.17 per share on a diluted GAAP basis and cash flows from operations of $141.4 million.
"Fiscal year 2012 was a pivotal year for us with a record $1.0 billion in new contract awards, record revenue and the launch of ViaSat-1 and our new Exede(SM) by ViaSat Internet service," said Mark Dankberg, ViaSat CEO and chairman. "As disclosed previously, the delay in the launch of ViaSat-1 significantly impacted earnings in the Satellite Services segment leading to a net loss for the quarter. But, excluding the Satellite Services segment, earnings in the Government Systems and Commercial Networks segments combined grew substantially for both the fourth quarter and the fiscal year as a whole. As we add new Exede Internet subscribers, we are now poised to obtain the benefits in our Satellite Services segment. With the Exede service now available in all 50 states and a company-record sales backlog, we have a healthy outlook for fiscal year 2013."
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Financial Results (1)
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(In millions, except per share data)
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Q4 FY12
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Q4 FY11
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FY12
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FY11
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Revenues
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$240.5
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$216.4
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$863.6
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$802.2
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Adjusted EBITDA (2)
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$36.9
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$42.8
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$149.0
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$160.8
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Net (loss) income (3)
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($7.4)
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$12.1
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$7.5
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$36.1
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Diluted per share net (loss) income (3)
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($0.17)
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$0.28
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$0.17
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$0.84
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Non-GAAP net (loss) income (3,4)
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($0.6)
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$18.0
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$32.1
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$59.9
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Non-GAAP diluted per share net (loss) income (3,4)
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($0.01)
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$0.41
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$0.73
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$1.39
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Fully diluted weighted average shares (6)
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42.9
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43.6
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44.2
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43.1
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New contract awards
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$297.4
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$271.0
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$1,008.6
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$853.5
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Sales backlog (5)
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$618.5
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$528.7
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$618.5
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$528.7
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(1) ViaSat uses a 52 or 53 week fiscal year which ends on the Friday closest to March 31. ViaSat quarters for fiscal year 2012 ended on July 1, 2011, September 30, 2011, December 30, 2011, and March 30, 2012.
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(2) Adjusted EBITDA represents net income (loss) attributable to ViaSat Inc. before interest, taxes, depreciation and amortization, adjusted to exclude the effects of non-cash stock-based compensation expense and acquisition related expenses. A reconciliation of specific adjustments to GAAP results for these periods is included in the table titled "An Itemized Reconciliation Between Net Income (Loss) Attributable to ViaSat Inc. and Adjusted EBITDA" contained in this release. A description of our use of non-GAAP information is provided below under "Use of Non-GAAP Financial Information."
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(3) Attributable to ViaSat Inc. common stockholders.
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(4) All non-GAAP net income (loss) numbers have been adjusted to exclude the effects of amortization of acquired intangible assets, acquisition related expenses, and non-cash stock-based compensation expenses, net of tax. A reconciliation of specific adjustments to GAAP results for these periods is included in the table titled "An Itemized Reconciliation Between Net Income (Loss) Attributable to ViaSat Inc. on a GAAP Basis and Non-GAAP Basis" contained in this release. A description of our use of non-GAAP information is provided below under "Use of Non-GAAP Financial Information."
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(5) Amounts include certain backlog adjustments due to contract changes and amendments.
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(6) As the fourth quarter fiscal year 2012 financial information results in a net loss, the weighted average number of shares used to calculate basic and diluted income per share are the same, as diluted shares would be anti-dilutive.
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Segment Results
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(In millions)
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Q4 FY12
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Q4 FY11
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FY12
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FY11
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Satellite Services
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New contract awards
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$54.6
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$67.2
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$222.1
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$239.2
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Revenues
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$54.7
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$59.4
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$222.7
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$235.0
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Adjusted EBITDA
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$8.3
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$27.8
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$63.1
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$103.0
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Commercial Networks
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New contract awards
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$152.1
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$70.9
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$359.8
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$153.4
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Revenues
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$81.0
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$54.2
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$251.7
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$183.1
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Adjusted EBITDA
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$5.1
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$1.8
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$8.4
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$3.7
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Government Systems
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New contract awards
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$90.7
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$132.9
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$426.7
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$460.9
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Revenues
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$104.8
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$102.8
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$389.3
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$384.1
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Adjusted EBITDA
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$23.5
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$13.4
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$77.5
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$54.4
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Satellite Services revenues and operating results declined for the quarter and year-over-year due to the delay in launch of ViaSat-1, the incurrence of certain fixed operating costs since April 2011, and the fourth quarter start-up of our Exede satellite Internet service. Commercial Networks revenues and Adjusted EBITDA increased for the quarter and year–over-year principally due to new satellite networking and space-based payload projects, combined with increased satellite terminal sales in Europe and North America supporting new Ka-band satellite services launched during fiscal year 2012. Government Systems operating results improved for the fourth quarter and fiscal year 2012, despite year-over-year order declines stemming mainly from the timing of awards from government customers. Increases in government mobile broadband products and services, command and control, and tactical satellite networks revenues and earnings overcame reductions in tactical data links and information assurance product areas.
