ViaSat Announces Third Quarter Fiscal Year 2014 Results
Feb. 11, 2014
ViaSat Inc.
announced financial results for the third quarter of fiscal year
2014. Revenues increased 16% to
$332.6 million compared to the same period last year, and
Adjusted EBITDA hit record levels, growing 17% year-over-year to
$56.7 million for the third
quarter of fiscal year 2014. Non-GAAP diluted net income
attributable to ViaSat common stockholders was
$0.03 per share, or a loss of
$0.13 per share on a diluted
GAAP basis – compared to net income of
$0.04 and a loss of
$0.47 per share, respectively,
for the third quarter of fiscal year 2013.
ViaSat's fiscal year-to-date results
also reflected strong growth. Revenues increased 24% to
$1.0 billion and Adjusted
EBITDA grew 34% to $163.8 million
compared to the same period last year. Net income attributable
to ViaSat common stockholders increased to
$0.35 per share on a non-GAAP
diluted basis, or a loss of $0.13
per share on a diluted GAAP basis - compared to the prior year
period losses of $0.18 and
$0.99 per share, respectively.
"We are very pleased with the balance
in our third quarter and year-to-date results," said
Mark Dankberg, chairman and
CEO of ViaSat. "We've maintained double-digit revenue and
Adjusted EBITDA growth, and substantially increased
discretionary investments to defend and extend our technology
lead in fixed and mobile satellite broadband networks. The
launch of Exede® In The Air via JetBlue's Fly-Fi™ service is an
exciting example of opportunities uniquely enabled by our
satellite network assets and innovative technologies. We aim to
create an opportunity for disproportionately strong growth by
redefining the in-flight Wi-Fi experience - engaging up to 10
times the number of passengers per flight, with speeds 10 to 100
times faster than competing systems, at costs far lower than
possible with conventional infrastructure. We are fortunate to
have similar disruptive opportunities in several key markets."
Financial Results1
|
(In millions, except per
share data)
|
Q3 FY14
|
Q3 FY13
|
First 9 Mos. FY14
|
First 9 Mos. FY13
|
|
Revenues
|
$332.6
|
$286.4
|
$1,007.5
|
$811.0
|
|
Adjusted EBITDA
|
$56.7
|
$48.4
|
$163.8
|
$122.5
|
|
Net loss2
|
($6.0)
|
($20.8)
|
($5.9)
|
($43.1)
|
|
Diluted per share net
loss2
|
($0.13)
|
($0.47)
|
($0.13)
|
($0.99)
|
|
Non-GAAP net income
(loss)2
|
$1.6
|
$1.8
|
$15.8
|
($7.9)
|
|
Non-GAAP diluted per
share net income (loss)2
|
$0.03
|
$0.04
|
$0.35
|
($0.18)
|
|
Fully diluted weighted
average shares3
|
45.9
|
44.2
|
45.6
|
43.7
|
|
|
|
|
|
|
New contract awards
|
$326.8
|
$265.7
|
$971.9
|
$1,146.3
|
|
Sales backlog4
|
$797.9
|
$939.0
|
$797.9
|
$939.0
|
|
|
|
1
|
ViaSat uses a 52 or 53
week fiscal year which ends on the Friday
closest to March 31. ViaSat quarters for fiscal
year 2014 end on June 28, 2013, October 4, 2013,
January 3, 2014, and April 4, 2014. This results
in a 53 week fiscal year approximately every
four to five years. Fiscal year 2014 is a
53 week year, compared with a 52 week year in
fiscal year 2013. As a result of the shift in
the fiscal calendar, the second quarter of
fiscal year 2014 included an additional week.
ViaSat does not believe that the extra week
resulted in any material impact on its financial
results.
|
|
|
|
2
|
Attributable to ViaSat
Inc. common stockholders.
|
|
|
|
3
|
As the third quarter
and first nine months of fiscal years 2014 and
2013 financial information resulted 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.
|
|
|
|
4
|
Amounts include certain
backlog adjustments due to contract changes and
amendments.
|
Segment Results
|
(In millions)
|
Q3 FY14
|
Q3 FY13
|
First 9 Mos. FY14
|
First 9 Mos. FY13
|
|
Satellite Services
|
|
|
|
|
|
New contract awards
|
$98.9
|
$71.4
|
$295.4
|
$212.5
|
|
Revenues
|
$98.6
|
$71.8
|
$284.8
|
$198.4
|
|
Adjusted EBITDA
|
$23.0
|
$11.0
|
$58.9
|
$24.1
|
|
|
|
|
|
|
Commercial Networks
|
|
|
|
|
|
New contract awards
|
$64.5
|
$45.8
|
$235.8
|
$417.7
|
|
Revenues
|
$91.9
|
$68.7
|
$299.4
|
$231.3
|
|
Adjusted EBITDA
|
$2.3
|
$2.4
|
$22.2
|
$10.9
|
|
|
|
|
|
|
Government Systems
|
|
|
|
|
|
New contract awards
|
$163.4
|
$148.5
|
$440.7
|
$516.1
|
|
Revenues
|
$142.0
|
$146.0
|
$423.2
|
$381.3
|
|
Adjusted EBITDA
|
$31.4
|
$35.1
|
$83.4
|
$87.7
|
Satellite Services
Our Satellite Services segment
reported revenues of $98.6 million
for the third quarter of fiscal year 2014, an increase of 37%
year-over-year. We ended the quarter with nearly 620,000
consumer broadband subscribers and performed over 85,000
installations, including new additions and migrations. Our
Satellite Services segment Adjusted EBITDA was
$23.0 million for the third
quarter, which more than doubled the amount reported for the
same period last year, despite our substantial investments in
intellectual property protection and legal expenses related to
our high capacity satellite technologies. On a year-to-date
basis, segment Adjusted EBITDA grew by 144% to
$58.9 million for the first
nine months of fiscal year 2014 compared to the same period last
year.
Commercial Networks
Our Commercial Networks segment
generated $91.9 million in
revenues during the third quarter of fiscal year 2014, an
increase of $23.2 million, or
34%, compared to the same period last year. Year-to-date
revenues also grew significantly, increasing by
$68.1 million to
$299.4 million compared to the
same period last year as we continue to make progress on our
international Ka-band infrastructure projects (including
commencement of initial gateway installation) and ramp up
production on our aeronautical mobile broadband systems
contracts. Segment Adjusted EBITDA results of
$2.3 million for the third
quarter were relatively unchanged compared to last year,
overcoming the increased investments in next generation
satellites and integrated networking systems, which more than
doubled year over year. Nonetheless, year-to-date segment
Adjusted EBITDA grew significantly to
$22.2 million, representing a 104% increase compared to
the same period last year.
Government Systems
Our Government Systems segment
reported revenue of $142.0 million
for the third quarter of fiscal year 2014, a decrease of
$4.0 million compared to the
same period last year as completion of a Blue Force Tracking
satellite service bandwidth contract offset growth in both
command and control system production as well as sales of
information assurance and security platforms. Year-to-date
revenue growth compared to the same period last year remained
solid at 11%. Segment Adjusted EBITDA was
$31.4 million and
$83.4 million for the quarter
and year-to-date, respectively, a decrease of 11% and 5%,
respectively, compared to the same periods last year. These
results reflect our investment in dual band mobility systems, as
well as network expansion costs supporting our government
mobility offerings. Our military mobile broadband service
revenue base remains strong, including a
$52 million contract renewal
awarded in the third quarter of fiscal year 2014.
