ORBCOMM Announces First Quarter 2017 Results
– Total Revenues Reach Record of $51.9 Million, Up 19% Compared to Last Year –
– Adjusted EBITDA of $12.4 Million Increased 16% Year Over Year –
– Strong Momentum in Q1 as the Company Adds Over 42,000 Net Subscriber Communicators –
Rochelle Park, NJ,
Mai 4, 2017 -
ORBCOMM Inc. (NASDAQ: ORBC), a global provider of Internet of Things (IoT) solutions, today announced financial results for the first quarter ended March 31, 2017.
The following financial highlights are in thousands of dollars.
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2017
|
|
|
|
|
2016
|
|
Service Revenues
|
|
|
|
$
|
29,512
|
|
|
|
$
|
26,914
|
|
Product Sales
|
|
|
|
$
|
22,409
|
|
|
|
$
|
16,646
|
|
Total Revenues
|
|
|
|
$
|
51,921
|
|
|
|
$
|
43,560
|
|
Net Loss attributable to ORBCOMM Inc. Common Stockholders
|
|
|
|
|
($3,343
|
)
|
|
|
|
($2,096
|
)
|
Basic EPS
|
|
|
|
|
($0.05
|
)
|
|
|
|
($0.03
|
)
|
EBITDA (1,3)
|
|
|
|
$
|
10,610
|
|
|
|
$
|
8,636
|
|
Adjusted EBITDA (2,3)
|
|
|
|
$
|
12,404
|
|
|
|
$
|
10,698
|
|
|
|
|
|
|
|
|
|
(1) EBITDA is defined as earnings attributable to ORBCOMM
Inc. before interest income (expense), loss on debt extinguishment,
provision for income taxes and depreciation and amortization.
|
(2) Adjusted EBITDA is defined as EBITDA, adjusted for
stock-based compensation expense, noncontrolling interests,
impairment loss, non-capitalized satellite launch and in-orbit
insurance, insurance recovery, and acquisition-related and
integration costs
|
(3) A table presenting EBITDA and Adjusted EBITDA,
reconciled to GAAP Net Income (Loss), is among other financial
tables at the end of this release
|
|
“Our strong sales pipeline resulted in a fast start to 2017, with a
record first quarter despite typically being the softest quarter of the
year,” said Marc Eisenberg, ORBCOMM’s Chief Executive Officer.
“Leveraging our continued technology innovation with new products
and increased leadership in our markets, 2017 is shaping up to be a
defining year for ORBCOMM.”
“Total Revenues for the first quarter reached a record $51.9 million,
with a strong backlog entering the second quarter,” said Robert
Costantini, ORBCOMM’s Chief Financial Officer. “We generated $12.4
million of Adjusted EBITDA for the quarter, primarily driven by
expanding high incremental margin Service Revenues.”
Recent Highlights:
Financial Highlights
-
For Q1 of 2017, record Total Revenues of $51.9 million were up 19.2%
year-over-year, with Service Revenues and Product Sales reaching
record levels in the quarter. Service Revenues of $29.5 million
increased 9.7% and Product Sales of $22.4 million were 34.6% higher
this quarter than the prior year period.
-
For Q1 of 2017, Adjusted EBITDA of $12.4 million increased $1.7
million, improving 15.9% over the prior year period. Adjusted EBITDA
margin was 23.9% of Total Revenues.
-
Net subscriber communicator additions for ORBCOMM were over 42,000 in
Q1 of 2017, increasing the total billable subscriber communicators to
nearly 1,766,000 at March 31, 2017, which compares to 1,609,000 at the
end of last year; a 9.8% increase year-over-year.
-
On March 31, 2017, ORBCOMM announced that it has priced $250,000,000
aggregate principal amount of 8.0% senior secured notes due 2024. The
net proceeds from the sale of the notes were used to repay the $150
million outstanding loans under ORBCOMM’s prior secured credit
facilities, with the remaining intended for general corporate
purposes, including potential future acquisitions.
Customer and Product Highlights
-
On April 4, 2017, ORBCOMM announced that Kevadiya Inc. (Kevadiya)
selected ORBCOMM to provide satellite
communications services and hardware in support of the Vehicle
Tracking Program for the Federal Bureau of Prisons (BOP), a division
of the U.S. Department of Justice. Kevadiya will be providing a fleet
mobility tracking solution as part of the BOP program.
-
On March 21, 2017, ORBCOMM announced that it has collaborated with
maritime technology industry leaders Pole Star and Weatherdock to
develop Hali,
a Class B tri-mode vessel tracking solution that ensures complete
vessel visibility. Hali combines terrestrial and satellite Automatic
Identification System (AIS) data capability with two-way satellite
M2M technology to deliver reliable vessel location data to small
craft and fleet owners & operators, maritime authorities and
enforcement agencies, providing the actionable intelligence required
to maximize maritime safety, security and environmental compliance.
-
On March 20, 2017, ORBCOMM announced that Kevadiya selected ORBCOMM to
provide satellite
and cellular communications services and asset tracking and
monitoring devices in support of the Veterans Transportation Service
(VTS) provided by the U.S. Department of Veterans Affairs (VA). The VA
recently extended the VTS program based on the success of the
ORBCOMM-Kevadiya telematics
solution launched in 2015.
-
On March 10, 2017, ORBCOMM announced the award of a multi-year
contract with the Australian Maritime Safety Authority (AMSA) through
Kordia Pty Ltd (Kordia). ORBCOMM and Kordia, a leading provider of
mission-critical networks in New Zealand, will provide satellite Automatic
Identification System (AIS) data used for ship
tracking and other maritime navigational and safety efforts to
AMSA.
-
On February 28, 2017, ORBCOMM announced that Maerospace has won a
multi-year contract with the Government of Canada to supply satellite Automatic
Identification System (AIS) data used for ship
tracking and other maritime navigational and safety efforts in
conjunction with Maerospace’s TimeCaster™ technology. Maerospace, an
industry expert in advanced data analytics, and ORBCOMM, providing AIS
data through its Canadian subsidiary SkyWave, have partnered to
provide the Government of Canada the technology to monitor Canadian
and global maritime traffic.
For more information on recent highlights, please visit www.orbcomm.com.
Financial Results and Highlights
Revenues
For the first quarter ended March 31, 2017, Service Revenues reached a
record $29.5 million, up 9.7% over the prior year period. The increase
in Service Revenues was from both organic growth and our most recent
acquisitions, and benefiting from the OG2 satellite constellation as
well a growing subscriber base across multiple lines of business.
Product Sales during the first quarter of 2017 were a record $22.4
million compared to $16.6 million during the same period last year,
increasing $5.8 million or 34.6%. Product Sales deliveries were higher,
reflecting orders from existing customers and large orders from new
customers.
Total Revenues reached a record $51.9 million for the first quarter
ended March 31, 2017 were up $8.4 million or 19.2% compared to $43.6
million during the same period of 2016.
Cost of Revenues and Operating Expenses
Total Cost of Revenues and Operating Expenses for the first quarter of
2017 were $52.3 million compared to $43.7 million in 2016, increasing
largely by Cost of Revenues increasing $6.6 million mostly due to higher
Product Sales, an increase in Depreciation and Amortization of $2.1
million, and higher Selling, General & Administrative costs of $0.5
million. Operating expenses were flat year-over-year excluding the
impact of increased Depreciation and Amortization of $2.1 million.
Income (Loss) Before Income Taxes, Net Income (Loss), and Earnings
Per Share
Income (Loss) Before Income Taxes for the first quarter of 2017 was a
($2.7) million loss, compared to the ($1.9) million loss for the first
quarter of 2016.
Net Loss attributable to ORBCOMM Inc. Common Stockholders was ($3.3)
million for the first quarter of 2017, compared to Net Loss of ($2.1)
million for the same period in 2016. Basic EPS was a loss of ($0.05) per
share for the first quarter of 2017 versus a loss of ($0.03) per share
for the same period last year.
EBITDA and Adjusted EBITDA
EBITDA for the first quarter of 2017 was $10.6 million compared to $8.6
million in the first quarter of 2016, an increase of $2.0 million or
22.9%.
Adjusted EBITDA of $12.4 million for the first quarter of 2017 was 15.9%
higher than last year’s $10.7 million in the first quarter. Adjusted
EBITDA as a percentage of Total Revenues for the quarter was 23.9%, down
from 24.6%.
EBITDA and Adjusted EBITDA are non-GAAP financial measures used by the
Company to measure operating performance and the quality of earnings.
Please see the financial tables at the end of the release for a
reconciliation of EBITDA and Adjusted EBITDA.
Balance Sheet & Cash Flow
At March 31, 2017, Cash and Cash Equivalents totaled approximately $20.0
million, compared to $25.0 million at December 31, 2016, decreasing
nearly ($5.1) million, reflecting ($5.6) million for capital
expenditures, offset partially by cash flow from operations.
Investment Community Conference Call
ORBCOMM will host a conference call and webcast for the investment
community this morning at 8:30 AM ET. Senior management will review the
results, discuss ORBCOMM’s business, and address questions. To access
the call, domestic participants should dial 1-866-791-6248 at least ten
minutes prior to the start of the call. International callers should
dial 1-913-312-1383. To hear a live web simulcast or to listen to the
archived webcast following completion of the call, please visit the
Company’s website at http://investors.orbcomm.com
and then select “News & Events” to access the link to the call. To
listen to a replay of the conference call, please Click
Here. The replay will be available from approximately 1:30 PM ET on
May 4, 2017, through 1:30 PM ET on May 18, 2017.
About ORBCOMM Inc.
ORBCOMM Inc. (Nasdaq: ORBC) is a leading global provider of
Machine-to-Machine (M2M) and Internet of Things (IoT) communication
solutions and the only commercial satellite network dedicated to M2M.
ORBCOMM’s unique combination of global satellite, cellular and dual-mode
network connectivity, hardware, web reporting applications and software
is the M2M industry’s most complete service offering. Our solutions are
designed to remotely track, monitor, and control fixed and mobile assets
in core vertical markets including transportation & distribution, heavy
equipment, industrial fixed assets, oil & gas, maritime, mining and
government.
With close to two decades of innovation and expertise in M2M, ORBCOMM
has more than 1.77 million subscribers with a diverse customer base
including premier OEMs such as Caterpillar Inc., Doosan Infracore
America, Hitachi Construction Machinery Co., Ltd., John Deere, Komatsu
Ltd., and Volvo Construction Equipment, as well as end-to-end solutions
customers such as C&S Wholesale, Canadian National Railways, CR England,
Hub Group, KLLM Transport Services, Marten Transport, Swift
Transportation, Target, Tropicana, Tyson Foods, Walmart, Union Pacific
Railroad and Werner Enterprises. For more information, visit www.orbcomm.com.
Forward-Looking Statements
Certain statements discussed in this press release constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
generally relate to our plans, estimates, objectives and expectations
for future events, as well as projections, business trends and other
statements that are not historical facts. Such forward-looking
statements are subject to known and unknown risks and uncertainties,
some of which are beyond the Company’s control, which may cause the
Company’s actual results, performance or achievements, or industry
results, to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements.
These risks and uncertainties include but are not limited to: demand for
and market acceptance of our products and services and our ability to
successfully implement our business plan; our dependence on our
subsidiary companies (Market Channel Affiliates (MCAs)) and third party
product and service developers and providers, distributors and resellers
(Market Channel Partners (MCPs)) to develop, market and sell our
products and services, especially in markets outside the United States;
substantial losses we have incurred and may continue to incur; the
inability to effect suitable investments, alliances and acquisitions,
and even if we are able to make acquisitions, the failure to integrate
and effectively operate the acquired businesses and the exposure to
additional risks, such as unexpected costs, contingent or other
liabilities, or weaknesses in internal controls, and issues related to
non-compliance with domestic and foreign laws, particularly in
acquisitions of foreign businesses; our dependence on a few significant
customers for a substantial portion of our revenues, including key
customers such as Caterpillar Inc., Komatsu Ltd., Hub Group, Onixsat and
Satlink S.L.; our ability to expand our business outside the United
States, including risks related to the economic, political and other
conditions in foreign countries in which we do business, including
fluctuations in foreign currency exchange rates; our dependence on a few
significant vendors, service providers or suppliers, as well as the loss
or disruption or slowdown in the supply of products and services these
key vendors, such as our SkyWave business’s dependence on its commercial
relationship with Inmarsat plc and the services provided by Inmarsat
plc, including the continued availability of Inmarsat plc’s satellites,
the supply of subscriber communicators from Sanmina Corporation and
Quake Global, or the supply of application specific integrated circuits
(ASICs) from S3 Group; competition from existing and potential
telecommunications competitors, including terrestrial and
satellite-based network providers, some of whom provide wireless network
services to our customers in connection with our products and services;
our reliance on intellectual property rights and the risk that we, our
MCAs, our MCPs and our customers may infringe on the intellectual
property rights of others; inability to operate due to changes or
restrictions in the political, legal, regulatory, government,
administrative and economic conditions and developments in the United
States and other countries and territories in which we provide our
services; legal proceedings; the failure of our system or reductions in
levels of service due to technological malfunctions or deficiencies or
other events, such as in-orbit satellite failures, reduced performance
of our existing satellites, or man-made or natural disasters and other
extreme events; rapid and significant technological changes, pricing
pressures and other competitive factors; cybersecurity risks; and our
substantial indebtedness, currently $250 million, including the
restrictive covenants under the indenture governing our notes, and other
terms that could restrict our business activities or our ability to
execute our strategic objectives, limit our operating flexibility or
adversely affect our financial performance, all of which could be
exacerbated if we incur additional indebtedness. In addition, specific
consideration should be given to various factors described in Part I,
Item 1A. “Risk Factors” and Part II, Item 7. “Management’s Discussion
and Analysis of Financial Condition and Results of Operations”, and
elsewhere in our Annual Report on Form 10-K for the year ended December
31, 2016, and other documents, on file with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly revise any
forward-looking statements or cautionary factors, except as required by
law.
|
|
|
|
|
|
|
|
ORBCOMM Inc.
|
Condensed Consolidated Balance Sheets
|
(in thousands, except par value and share data)
|
(Unaudited)
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
|
2017
|
|
|
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
19,955
|
|
|
|
$
|
25,023
|
|
Accounts receivable, net of allowance for doubtful accounts of
$1,021 and $1,057, respectively
|
|
|
|
|
38,453
|
|
|
|
|
31,937
|
|
Inventories
|
|
|
|
|
23,401
|
|
|
|
|
23,217
|
|
Prepaid expenses and other current assets
|
|
|
|
|
6,418
|
|
|
|
|
8,031
|
|
Total current assets
|
|
|
|
|
88,227
|
|
|
|
|
88,208
|
|
Satellite network and other equipment, net
|
|
|
|
|
214,059
|
|
|
|
|
215,841
|
|
Goodwill
|
|
|
|
|
114,033
|
|
|
|
|
114,033
|
|
Intangible assets, net
|
|
|
|
|
80,031
|
|
|
|
|
82,545
|
|
Other assets
|
|
|
|
|
10,323
|
|
|
|
|
5,447
|
|
Deferred income taxes
|
|
|
|
|
86
|
|
|
|
|
80
|
|
Total assets
|
|
|
|
$
|
506,759
|
|
|
|
$
|
506,154
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
12,535
|
|
|
|
$
|
12,481
|
|
Accrued liabilities
|
|
|
|
|
32,678
|
|
|
|
|
30,431
|
|
Current portion of deferred revenue
|
|
|
|
|
7,293
|
|
|
|
|
7,414
|
|
Total current liabilities
|
|
|
|
|
52,506
|
|
|
|
|
50,326
|
|
Note payable - related party
|
|
|
|
|
1,218
|
|
|
|
|
1,195
|
|
Note payable, net of unamortized deferred issuance costs
|
|
|
|
|
147,685
|
|
|
|
|
147,458
|
|
Deferred revenue, net of current portion
|
|
|
|
|
2,888
|
|
|
|
|
2,978
|
|
Deferred tax liabilities
|
|
|
|
|
18,799
|
|
|
|
|
18,645
|
|
Other liabilities
|
|
|
|
|
3,401
|
|
|
|
|
3,684
|
|
Total liabilities
|
|
|
|
|
226,497
|
|
|
|
|
224,286
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
ORBCOMM Inc. stockholders' equity
|
|
|
|
|
|
|
|
Series A Convertible Preferred Stock, par value $0.001; 1,000,000
shares authorized; 36,466 and 36,466 shares issued and
outstanding
|
|
|
|
|
364
|
|
|
|
|
364
|
|
Common stock, par value $0.001; 250,000,000 shares authorized;
71,695,802 and 71,111,863 shares issued at March 31, 2017
and December 31, 2016
|
|
|
|
|
72
|
|
|
|
|
71
|
|
Additional paid-in capital
|
|
|
|
|
388,418
|
|
|
|
|
386,920
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
|
(887
|
)
|
|
|
|
(1,089
|
)
|
Accumulated deficit
|
|
|
|
|
(108,292
|
)
|
|
|
|
(104,949
|
)
|
Less treasury stock, at cost; 29,990 shares at March 31, 2017 and December
31, 2016
|
|
|
|
|
(96
|
)
|
|
|
|
(96
|
)
|
Total ORBCOMM Inc. stockholders' equity
|
|
|
|
|
279,579
|
|
|
|
|
281,221
|
|
Noncontrolling interest
|
|
|
|
|
683
|
|
|
|
|
647
|
|
Total equity
|
|
|
|
|
280,262
|
|
|
|
|
281,868
|
|
Total liabilities and equity
|
|
|
|
$
|
506,759
|
|
|
|
$
|
506,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORBCOMM Inc.
|
Condensed Consolidated Statements of Operations
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2017
|
|
|
|
|
2016
|
|
Revenues:
|
|
|
|
|
|
|
|
Service revenues
|
|
|
|
$
|
29,512
|
|
|
|
$
|
26,914
|
|
Product sales
|
|
|
|
|
22,409
|
|
|
|
|
16,646
|
|
Total revenues
|
|
|
|
|
51,921
|
|
|
|
|
43,560
|
|
Cost of revenues, exclusive of depreciation and amortization shown
below:
|
|
|
|
|
|
|
|
Cost of services
|
|
|
|
|
9,569
|
|
|
|
|
9,188
|
|
Cost of product sales
|
|
|
|
|
17,648
|
|
|
|
|
11,450
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
|
12,241
|
|
|
|
|
11,756
|
|
Product development
|
|
|
|
|
1,588
|
|
|
|
|
1,957
|
|
Depreciation and amortization
|
|
|
|
|
11,022
|
|
|
|
|
8,959
|
|
Acquisition - related and integration costs
|
|
|
|
|
228
|
|
|
|
|
364
|
|
Loss from operations
|
|
|
|
|
(375
|
)
|
|
|
|
(114
|
)
|
Other income (expense):
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
118
|
|
|
|
|
88
|
|
Other income (expense)
|
|
|
|
|
5
|
|
|
|
|
(190
|
)
|
Interest expense
|
|
|
|
|
(2,426
|
)
|
|
|
|
(1,699
|
)
|
Total other expense
|
|
|
|
|
(2,303
|
)
|
|
|
|
(1,801
|
)
|
Loss before income taxes
|
|
|
|
|
(2,678
|
)
|
|
|
|
(1,915
|
)
|
Income taxes
|
|
|
|
|
623
|
|
|
|
|
162
|
|
Net loss
|
|
|
|
|
(3,301
|
)
|
|
|
|
(2,077
|
)
|
Less: Net income attributable to the noncontrolling interests
|
|
|
|
|
42
|
|
|
|
|
19
|
|
Net loss attributable to ORBCOMM Inc.
|
|
|
|
$
|
(3,343
|
)
|
|
|
$
|
(2,096
|
)
|
Net loss attributable to ORBCOMM Inc. common
stockholders
|
|
|
|
$
|
(3,343
|
)
|
|
|
$
|
(2,096
|
)
|
Per share information-basic:
|
|
|
|
|
|
|
|
Net loss attributable to ORBCOMM Inc. common stockholders
|
|
|
|
$
|
(0.05
|
)
|
|
|
$
|
(0.03
|
)
|
Per share information-diluted:
|
|
|
|
|
|
|
|
Net loss attributable to ORBCOMM Inc. common stockholders
|
|
|
|
$
|
(0.05
|
)
|
|
|
$
|
(0.03
|
)
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
71,424
|
|
|
|
|
70,700
|
|
Diluted
|
|
|
|
|
71,424
|
|
|
|
|
70,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORBCOMM Inc.
|
Condensed Consolidated Statements of Cash Flows
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
|
2017
|
|
|
|
|
2016
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
|
(3,301
|
)
|
|
|
$
|
(2,077
|
)
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Change in allowance for doubtful accounts
|
|
|
|
|
(36
|
)
|
|
|
|
(303
|
)
|
Change in the fair value of acquisition-related contingent
consideration
|
|
|
|
|
(495
|
)
|
|
|
|
100
|
|
Amortization of the fair value adjustment related to warranty
liabilities acquired through
acquisitions
|
|
|
|
|
—
|
|
|
|
|
(8
|
)
|
Amortization of deferred financing fees
|
|
|
|
|
229
|
|
|
|
|
155
|
|
Depreciation and amortization
|
|
|
|
|
11,022
|
|
|
|
|
8,959
|
|
Stock-based compensation
|
|
|
|
|
1,524
|
|
|
|
|
1,386
|
|
Foreign exchange (gain) loss
|
|
|
|
|
(26
|
)
|
|
|
|
351
|
|
Deferred income taxes
|
|
|
|
|
155
|
|
|
|
|
203
|
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(6,399
|
)
|
|
|
|
(1,096
|
)
|
Inventories
|
|
|
|
|
(151
|
)
|
|
|
|
(864
|
)
|
Prepaid expenses and other assets
|
|
|
|
|
1,768
|
|
|
|
|
(969
|
)
|
Accounts payable and accrued liabilities
|
|
|
|
|
(3,461
|
)
|
|
|
|
(877
|
)
|
Deferred revenue
|
|
|
|
|
(229
|
)
|
|
|
|
(1,178
|
)
|
Other liabilities
|
|
|
|
|
(98
|
)
|
|
|
|
(118
|
)
|
Net cash provided by operating activities
|
|
|
|
|
502
|
|
|
|
|
3,664
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(5,645
|
)
|
|
|
|
(9,835
|
)
|
Net cash (used in) investing activities
|
|
|
|
|
(5,645
|
)
|
|
|
|
(9,835
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Net cash (used in) financing activities
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
75
|
|
|
|
|
252
|
|
Net decrease in cash and cash equivalents
|
|
|
|
|
(5,068
|
)
|
|
|
|
(5,919
|
)
|
Beginning of period
|
|
|
|
|
25,023
|
|
|
|
|
27,077
|
|
End of period
|
|
|
|
$
|
19,955
|
|
|
|
$
|
21,158
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
Cash paid for
|
|
|
|
|
|
|
|
Interest
|
|
|
|
$
|
1,176
|
|
|
|
$
|
2,198
|
|
Income taxes
|
|
|
|
$
|
—
|
|
|
|
$
|
138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles our Net Loss attributable to ORBCOMM Inc.
to EBITDA and Adjusted EBITDA for the periods shown:
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
(In thousands)
|
|
|
|
|
2017
|
|
|
|
|
2016
|
|
|
Adjustments to EBITDA
|
|
|
|
|
|
|
|
|
Net Loss attributable to ORBCOMM Inc.
|
|
|
|
|
($3,343
|
)
|
|
|
|
($2,096
|
)
|
|
Income tax expense
|
|
|
|
|
623
|
|
|
|
|
162
|
|
|
Interest income
|
|
|
|
|
(118
|
)
|
|
|
|
(88
|
)
|
|
Interest expense
|
|
|
|
|
2,426
|
|
|
|
|
1,699
|
|
|
Depreciation and amortization
|
|
|
|
|
11,022
|
|
|
|
|
8,959
|
|
|
EBITDA
|
|
|
|
$
|
10,610
|
|
|
|
$
|
8,636
|
|
|
Adjustments to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
|
1,524
|
|
|
|
|
1,386
|
|
|
Minority interest
|
|
|
|
|
42
|
|
|
|
|
19
|
|
|
Acquisition-related and Integration costs
|
|
|
|
|
228
|
|
|
|
|
364
|
|
|
In-orbit insurance
|
|
|
|
|
-
|
|
|
|
|
293
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
12,404
|
|
|
|
$
|
10,698
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORBCOMM publicly reports its financial information in accordance with
accounting principles generally accepted in the United States of America
(“US GAAP”). To facilitate external analysis of the Company’s operating
performance, ORBCOMM also presents financial information that are
considered “non-GAAP financial measures” under Regulation G and related
reporting requirements promulgated by the Securities and Exchange
Commission. Non-GAAP measures should be considered in addition to, and
not as a substitute for, or superior to, Net Income or other measures of
financial performance prepared in accordance with GAAP and may be
different than those presented by other companies. EBITDA, Adjusted
EBITDA and Adjusted EBITDA Margin are not performance measures
calculated in accordance with GAAP and are therefore considered non-GAAP
measures. A reconciliation table is presented above.
EBITDA is defined as earnings attributable to ORBCOMM Inc. before
interest income (expense), loss on debt extinguishment, provision for
income taxes and depreciation and amortization. ORBCOMM believes EBITDA
is useful to its management and investors in evaluating operating
performance because it is one of the primary measures used to evaluate
the economic productivity of the Company’s operations, including its
ability to obtain and maintain its customers, its ability to operate its
business effectively, the efficiency of its employees and the
profitability associated with their performance. It also helps ORBCOMM’s
management and investors to meaningfully evaluate and compare the
results of the Company’s operations from period to period on a
consistent basis by removing the impact of its financing transactions
and the depreciation and amortization impact of capital investments from
its operating results. In addition, ORBCOMM management uses EBITDA in
presentations to its board of directors to enable it to have the same
measurement of operating performance used by management and for planning
purposes, including the preparation of the annual operating budget.
The Company also believes that Adjusted EBITDA, defined as EBITDA
adjusted for stock-based compensation expense, noncontrolling interests,
impairment loss, non-capitalized satellite launch and in-orbit
insurance, insurance recovery, and acquisition-related and integration
costs, is useful to investors to evaluate the Company’s core operating
results and financial performance because it excludes items that are
significant non-cash or non-recurring expenses reflected in the
Condensed Consolidated Statements of Operations. Adjusted EBITDA Margin
equals Adjusted EBITDA divided by Total Revenues.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170504005490/en/
Source: ORBCOMM Inc.
Investor Inquiries:
ORBCOMM Inc.
Michelle
Ferris, 703-433-6516
Director of Corporate Communications
ferris.michelle@orbcomm.com
or
Financial
and Trade Media:
The Abernathy MacGregor Group
Alan
Oshiki, 212-371-5999
Executive Vice President
aho@abmac.com