Viasat announced financial results for the second quarter of fiscal year 2013. The fiscal second quarter results include record new contract awards and revenues of $548.0 million and $282.8 million, respectively, Adjusted EBITDA of $44.6 million and a net loss attributable to ViaSat common stockholders of $0.04 per share on a non-GAAP diluted basis or $0.18 per share on a diluted GAAP basis. Year-to-date, ViaSat reported new contract awards and revenues of $880.6 million and $524.6 million, respectively, Adjusted EBITDA of $74.1 million and a net loss attributable to ViaSat common stockholders of $0.22 per share on a non-GAAP diluted basis or $0.51 per share on a diluted GAAP basis.
"Our second quarter results vividly illustrate the growth and earnings potential of the markets we've been developing the last several years," said Mark Dankberg, chairman and CEO of ViaSat. "New orders increased over 120%, revenues by 27%, and Adjusted EBITDA by 14% compared to the same period last year. The government segment grew revenues 25%, operating earnings by 70%, and Adjusted EBITDA by 51% compared to last year's second quarter, while booking over $170 million in new orders despite a very challenging defense budget environment. Consumer broadband subscriber growth continues to outpace the total broadband market, and contributed to a $15 million quarter-over-quarter gain in Adjusted EBITDA. Within satellite services, sequential revenue growth of $8 million yielded about $5 million in Adjusted EBITDA growth, highlighting the path to the investment returns we've been targeting for ViaSat-1."
Financial Results1
|
(In millions, except per share data) |
Q2 FY13 |
Q2 FY12 |
First 6 Mos. FY13 |
First 6 Mos. FY12 |
|
Revenues |
$282.8 |
$223.0 |
$524.6 |
$418.1 |
|
Adjusted EBITDA2 |
$44.6 |
$39.0 |
$74.1 |
$75.1 |
|
Net (loss) income3 |
($7.9) |
$8.0 |
($22.3) |
$9.7 |
|
Diluted per share net (loss) income 3 |
($0.18) |
$0.18 |
($0.51) |
$0.22 |
|
Non-GAAP net (loss) income 3,4 |
($1.9) |
$13.9 |
($9.7) |
$21.1 |
|
Non-GAAP diluted per share net (loss) income 3,4 |
($0.04) |
$0.32 |
($0.22) |
$0.48 |
|
Fully diluted weighted average shares 5 |
43.6 |
43.9 |
43.4 |
43.9 |
|
New contract awards |
$548.0 |
$245.7 |
$880.6 |
$499.3 |
|
Sales backlog6 |
$965.8 |
$575.4 |
$965.8 |
$575.4 |
|
1 |
ViaSat uses a 52 or 53 week fiscal year which ends on the Friday closest to March 31. ViaSat quarters for fiscal year 2013 end on June 29, 2012, September 28, 2012, December 28, 2012, and March 29, 2013. |
|
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 tables below. |
|
3 |
Attributable to ViaSat Inc. common stockholders. |
|
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 tables below. |
|
5 |
As the second quarter and first six months of fiscal year 2013 financial information results in a net loss, the weighted average number of shares used to calculate basic and diluted net loss per share is the same, as diluted shares would be anti-dilutive. |
|
6 |
Amounts include certain backlog adjustments due to contract changes and amendments. |
Segment Results
|
(In millions) |
Q2 FY13 |
Q2 FY12 |
First 6 Mos. FY13 |
First 6 Mos. FY12 |
|
Satellite Services |
||||
|
New contract awards |
$67.1 |
$55.4 |
$141.1 |
$111.8 |
|
Revenues |
$67.3 |
$55.4 |
$126.6 |
$112.3 |
|
Adjusted EBITDA |
$8.7 |
$16.8 |
$13.1 |
$37.6 |
|
Commercial Networks |
||||
|
New contract awards |
$307.2 |
$53.6 |
$371.9 |
$165.8 |
|
Revenues |
$86.5 |
$64.2 |
$162.7 |
$116.3 |
|
Adjusted EBITDA |
$4.7 |
$1.8 |
$8.4 |
$3.4 |
|
Government Systems |
||||
|
New contract awards |
$173.7 |
$136.7 |
$367.6 |
$221.7 |
|
Revenues |
$129.0 |
$103.4 |
$235.3 |
$189.6 |
|
Adjusted EBITDA |
$31.2 |
$20.6 |
$52.7 |
$34.2 |
Satellite Services revenues increased for the quarter and year-to-date as our total subscriber base expanded to 429,000 and the value of a higher mix of retail subscribers and the related average revenue per user (ARPU) drove growth. Satellite Services Adjusted EBITDA declined for the quarter and year-to-date compared to last year as the incremental margins gained through subscriber growth do not yet cover the fixed cost increases we undertook due to the ViaSat-1 satellite. Commercial Networks revenues and Adjusted EBITDA increased for the quarter and year-to-date as satellite terminal sales and Ka-band network development revenues grew as global demand for Ka-band satellite networks and services expanded. Government Systems revenues and Adjusted EBITDA improved in the second quarter and year-to-date as our government mobile broadband products and services, command and control and tactical satellite networks revenues and associated earnings overcame reductions in information assurance product sales.