ORBCOMM Announces First Quarter 2016 Results
– Total Revenues of $43.6 Million with Service Revenues of $26.9 Million –
– Adjusted EBITDA of $10.7 Million Increased Year Over Year by 18% –
– Added 39,000 Net Subscriber Communicators Increasing the Base to 1,608,000 –
– Acquisition in South Africa To Add Distribution and Support on African Continent –
Rochelle Park, NJ, May 5, 2016 – ORBCOMM Inc. (NASDAQ: ORBC), a global provider of Machine-to-Machine (M2M) and Internet of Things (IoT) solutions, today announced financial results for the first quarter ended March 31, 2016.
The following financial highlights are in thousands of dollars.
|
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Three months ended
|
|
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March 31,
|
|
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2016
|
|
2015
|
|
Service Revenues
|
|
$26,914
|
|
$23,774
|
|
Product sales
|
|
$16,646
|
|
$18,556
|
|
Total Revenues
|
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$43,560
|
|
$42,330
|
|
Net Income (Loss) attributable to ORBCOMM Inc. Common Stockholders
|
|
($2,096)
|
|
($2,882)
|
|
Basic EPS
|
|
($0.03)
|
|
($0.04)
|
|
EBITDA (1,3)
|
|
$8,636
|
|
$5,230
|
|
Adjusted EBITDA (2,3)
|
|
$10,698
|
|
$9,045
|
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|
|
|
|
(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, is among other financial tables at the end of this
release.
“With the full OG2 constellation in service, an abundance of new
customer wins and incremental distribution and support from the addition
of Skygistics, 2016 is shaping up to be a promising year for our
continued momentum in the global IoT space,” said Marc Eisenberg,
ORBCOMM’s Chief Executive Officer. “The first quarter was highlighted by
strong growth in service revenues. Product sales would have been higher
had two large hardware deployments shipped in Q1 as anticipated, that
are now expected to ship in Q2. We are projecting a record Q2 and are on
track to execute on our 2016 plan.”
“We are closely managing our costs and the transition to the new
third-party manufacturer is going well,” said Robert Costantini,
ORBCOMM’s Chief Financial Officer. “This is helping to deliver strong
Adjusted EBITDA margins, which we expect will continue throughout 2016.”
Recent Highlights:
Financial Highlights
-
For Q1 of 2016, Total Revenues of $43.6 million were up 3%
year-over-year. Service Revenues increased 13% over the prior year
period to $26.9 million. Product Sales of $16.6 million were
$1.9
million
, or 10% lower than the prior year period. Impacting Q1
year-over-year comparisons were two large orders of about $2 million
this year that are expected to move into Q2 and one unusually large
order last year of approximately $5 million to a single customer.
Product Sales gross margins improved to 31% from 25% year over year.
-
For Q1 of 2016, Adjusted EBITDA was $10.7 million, at 25% margins, and
increased $1.7 million or 18% over the prior year period reflecting
operating leverage as revenues increase.
-
ORBCOMM’s Q1 2016 Net Loss of $2.1 million narrowed by $0.8 million
compared to the Net Loss of $2.9 million in last year’s first quarter
even with higher Depreciation and Amortization and Interest Expenses.
-
Net subscriber communicator additions for ORBCOMM were 39,000 in Q1 of
2016, taking the total billable subscriber communicators to 1,608,000
at March 31, 2016, which compares to 1,262,000 at the end of the same
period last year; a 27% increase year-over-year.
M&A Highlights
-
On April 12, 2016, ORBCOMM announced that it has entered into a
definitive agreement to acquire Skygistics (PTY) Ltd. and its South
African and Australian subsidiaries. Based outside of
Johannesburg,
South Africa
, Skygistics provides a broad range of satellite and
cellular connectivity options as well as telematics solutions centered
around the management of remote and mobile assets to more than 250
telematics and enterprise customers. Skygistics will add distribution
for ORBCOMM’s broad range of IoT products in some of the fastest
growing IoT markets, including South Africa and 22 other African
nations.
Customer Highlights
ORBCOMM recently closed a significant number of new opportunities
including three new customer wins in transportation: Fairchild Freight,
Distribution Solutions Inc. (DSI) and Brown Integrated Logistics. These
announcements not only highlight ORBCOMM’s ability to provide advanced
telematics solutions for multiple asset classes, but also to seamlessly
integrate with third-party transportation management systems, such as
TMW and Peoplenet, providing customers with complete visibility to their
fleet through one comprehensive platform.
-
On March 31, 2016, ORBCOMM announced that Fairchild Freight, a
truckload carrier specializing in the transportation of consumer food
commodities throughout North America, has selected ORBCOMM to provide
its dual-mode cold chain telematics solution to track and monitor its
refrigerated trailers. ORBCOMM will provide both satellite and
cellular connectivity through state-of-the-art hardware and a
web-based reporting platform for optimal fleet management.
-
On April 5, 2016, ORBCOMM announced that it has been selected by
Distribution Solutions Inc. (DSI) to provide industry-leading
telematics solutions for its mixed fleet of dry van and refrigerated
trailers. Based in Harrison, AR, DSI offers full-service truckload,
dry van and refrigerated services across the continental
United
States
. ORBCOMM’s end-to-end solutions include proprietary hardware
and a robust web application with data reporting and analytics
capabilities.
-
On April 7, 2016, ORBCOMM announced that Brown Integrated Logistics
(Brown), the Southeast’s leader in dedicated and regional
transportation services for over 65 years, has selected ORBCOMM to
provide its solar-powered asset tracking solution for their dry van
trailers. ORBCOMM’s solution will provide wireless connectivity
through its proprietary hardware and a web-based reporting platform
for optimal fleet management.
Product Highlights
-
On April 12, 2016, ORBCOMM announced the availability of its new heavy
equipment telematics solution, which includes the dual-mode PT 7000
device and the FleetEdge web application for monitoring and control of
equipment used in the construction, mining, rail and utility
industries. By utilizing ORBCOMM’s comprehensive solution, customers
gain complete visibility of their heavy equipment fleet and are able
to manage their operations more efficiently with access to
near-real-time asset data and analytics.
For more information on recent highlights, please visit www.orbcomm.com.
Financial Results and Highlights
Revenues
Total Revenues for the first quarter of 2016 were $43.6 million compared
to $42.3 million during the same period last year, an increase of 3%
with 13% growth in Service Revenues reduced by lower Product Sales on a
comparative basis to last year that benefited from a large shipment of
approximately $5 million to one customer in Q1 of 2015.
For the first quarter of 2016, Service Revenues were up 13% over the
comparable period in 2015, to $26.9 million. The increase in Service
Revenues in Q1 of 2016 was driven by strong organic growth of 6%, as
well as through acquisitions.
Product Sales during the first quarter of 2016 were $16.6 million
compared to $18.6 million during the same period last year, decreasing
$1.9 million or 10%. On a comparative period basis to last year, the
decrease in Product Sales was impacted by two large sales order
opportunities in Q1 of 2016 expected to move into Q2, as well as last
year’s large customer shipment in Q1 of 2015.
Direct Costs and Operating Expenses
Total direct costs and operating expenses for the first quarter of 2016
were $43.7 million compared to $43.6 million during the same period in
2015. Direct costs decreased year-over-year largely due to lower Product
Sales. Gross Profit for the first quarter of 2016 was $22.9 million,
increasing $2.2 million or 11% compared to $20.7 million for the prior
year quarter, due to increases in Service Revenues and higher margins
generated by Product Sales in the 2016 first quarter.
Q1 2016 operating expenses were higher than the prior year period
primarily due to expenses from the companies acquired such as acquired
employees and higher Depreciation and Amortization, partially offset by
lower Acquisition-Related and Integration costs in the first quarter of
2016 versus the prior year.
Income (Loss) Before Income Taxes, Net Income (Loss), and Earnings
Per Share
Income (Loss) Before Income Taxes for the first quarter of 2016 was a
($1.9) million loss, an improvement over the ($2.3) million loss for the
first quarter of 2015.
Net Income (Loss) attributable to ORBCOMM Inc. Common Stockholders was
($2.1) million for the first quarter of 2016, narrowing from a loss of
($2.9) million for the same period in 2015. Basic EPS was a loss of
($0.03) per share for the first quarter of 2016 versus a loss of ($0.04)
per share for the first quarter of 2015.
EBITDA and Adjusted EBITDA
EBITDA for the first quarter of 2016 was $8.6 million compared to
$5.2
million
in the first quarter of 2015, an increase of $3.4 million or 65%.
Adjusted EBITDA of $10.7 million for the first quarter of 2016 compared
to $9.0 million in the first quarter of 2015, an increase of
$1.7
million
or 18%.
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, 2016, Cash and Cash Equivalents and Restricted Cash totaled
$22.2 million, compared to $28.1 million at December 31, 2015,
decreasing $5.9 million. Cash decreased from Capital Expenditures
primarily due to the completion of milestone payments for the OG2
program related to the final launch in late 2015, offset by Cash from
Operations of $3.7 million.
Guidance
Expectations for the second quarter of 2016 are Total Revenues between
$47 and $50 million. The Company is maintaining the full year 2016
forecast of Total Revenues of approximately $200 million and Adjusted
EBITDA at about 25% margins to Total Revenues.
Investment Community Conference Call
ORBCOMM will host a conference call and webcast for the investment
community this morning at 10:00 AM ET. Senior management will review the
results, discuss ORBCOMM’s business, and address questions. To access
the call, domestic participants should dial 1-888-296-4302 at least ten
minutes prior to the start of the call. International callers should
dial 1-719-325-2355. 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 visit https://jsp.premiereglobal.com/webrsvp
and enter the confirmation code number 8834484. The replay will be
available from approximately 3:30 PM ET on May 5, 2016, through
3:30 PM
ET
on May 19, 2016.
About ORBCOMM Inc.
ORBCOMM Inc. (Nasdaq: ORBC) is a leading global provider of
Machine-to-Machine (M2M) 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 nearly 20 years of innovation and expertise in M2M, ORBCOMM has
more than 1.6 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 and other statements that are not historical facts.
Such forward-looking statements, including those concerning the
Company’s expectations and estimates, are subject to known and unknown
risks and uncertainties, which could cause actual results to differ
materially from the results, projected, expected or implied by the
forward-looking statements, some of which are beyond the Company’s
control, that 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: dependence of SkyWave’s business on its commercial
relationship with Inmarsat plc and the services provided by
Inmarsat
plc
, including the continued availability of Inmarsat plc’s satellites;
substantial losses we have incurred and may continue to incur; demand
for and market acceptance of our products and services and the
applications developed by us and our resellers; market acceptance and
success of our Automatic Identification System business; dependence on a
few significant customers, including a concentration in Brazil, loss or
decline or slowdown in the growth in business from key customers, such
as Caterpillar Inc., Hitachi Construction Machinery Co., Ltd.,
Komatsu
Ltd.
, Onixsat, Satlink S.L., Sascar and Maersk Lines, other value-added
resellers, or VARs, and international value-added resellers, or IVARs,
and other value-added Solution Providers, or SPs; dependence on a few
significant vendors or suppliers, loss or disruption or slowdown in the
supply of products and services from key vendors, such as Inmarsat plc.
and Sanmina Corporation; loss or decline or slowdown in growth in
business of any of the specific industry sectors we serve, such as
transportation, heavy equipment, fixed assets and maritime; our
potential future need for additional capital to execute on our growth
strategy; additional debt service acquired with or incurred in
connection with existing or future business operations; our acquisitions
may expose us to additional risks, such as unexpected costs, contingent
or other liabilities, or weaknesses in internal controls, and expose us
to issues related to non-compliance with domestic and foreign laws,
particularly regarding our acquisitions of businesses domiciled in
foreign countries; the terms of our credit agreement, under which we
currently have borrowed $150 million and may borrow up to an additional
$10 million, could restrict our business activities or our ability to
execute our strategic objectives or adversely affect our financial
performance; the inability to effect suitable investments, alliances and
acquisitions or the failure to integrate and effectively operate the
acquired businesses; fluctuations in foreign currency exchange rates;
the inability of our subsidiaries, international resellers and licensees
to develop markets outside the United States; the inability to obtain or
maintain the necessary regulatory authorizations, approvals or licenses,
including those that must be obtained and maintained by third parties,
for particular countries or to operate our satellites; technological
changes, pricing pressures and other competitive factors; in-orbit
satellite failures or reduced performance of our existing satellites;
the failure of our system or reductions in levels of service due to
technological malfunctions or deficiencies or other events; significant
liabilities created by products we sell; litigation proceedings;
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; ongoing global economic
instability and uncertainty; and changes in our business strategy. 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, 2015, 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.
|
|
|
Consolidated Balance Sheets
|
|
|
(In thousands, except par value and share data)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
2016
|
|
2015
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
21,158
|
|
|
$
|
27,077
|
|
|
|
Accounts receivable, net of allowance for doubtful accounts of
$1,047 and $1,233,
|
|
|
|
|
|
|
respectively
|
|
|
31,205
|
|
|
|
29,816
|
|
|
|
Inventories
|
|
|
21,665
|
|
|
|
20,712
|
|
|
|
Prepaid expenses and other current assets
|
|
|
5,818
|
|
|
|
5,646
|
|
|
|
Restricted cash
|
|
|
1,000
|
|
|
|
1,000
|
|
|
|
Deferred income taxes
|
|
|
508
|
|
|
|
508
|
|
|
|
Total current assets
|
|
|
81,354
|
|
|
|
84,759
|
|
|
|
|
|
|
|
|
|
Satellite network and other equipment, net
|
|
|
235,182
|
|
|
|
229,970
|
|
|
|
Goodwill
|
|
|
112,425
|
|
|
|
112,425
|
|
|
|
Intangible assets, net
|
|
|
90,229
|
|
|
|
93,172
|
|
|
|
Other assets
|
|
|
7,116
|
|
|
|
6,573
|
|
|
|
Total assets
|
|
$
|
526,306
|
|
|
$
|
526,899
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
9,926
|
|
|
$
|
13,895
|
|
|
|
Accrued expenses
|
|
|
29,458
|
|
|
|
24,186
|
|
|
|
Current portion of deferred revenue
|
|
|
7,373
|
|
|
|
7,652
|
|
|
|
Total current liabilities
|
|
|
46,757
|
|
|
|
45,733
|
|
|
|
|
|
|
|
|
|
Note payable - related party
|
|
|
1,298
|
|
|
|
1,241
|
|
|
|
Note payable
|
|
|
150,000
|
|
|
|
150,000
|
|
|
|
Deferred revenue, net of current portion
|
|
|
5,140
|
|
|
|
6,024
|
|
|
|
Deferred tax liabilities
|
|
|
18,643
|
|
|
|
18,440
|
|
|
|
Other liabilities
|
|
|
5,039
|
|
|
|
5,705
|
|
|
|
Total liabilities
|
|
|
226,877
|
|
|
|
227,143
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
ORBCOMM Inc. stockholders' equity
|
|
|
|
|
|
|
Series A Convertible Preferred Stock, par value $0.001; 1,000,000
shares authorized; 35,173 and 35,759 shares issued and outstanding
|
|
|
351
|
|
|
|
357
|
|
|
|
Common stock, par value $0.001; 250,000,000 share authorized;
70,875,217 and 70,613,642 shares issued at March 31, 2016 and
December 31, 2015
|
|
|
71
|
|
|
|
71
|
|
|
|
Additional paid-in capital
|
|
|
382,914
|
|
|
|
381,659
|
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
(660
|
)
|
|
|
(1,174
|
)
|
|
|
Accumulated deficit
|
|
|
(83,520
|
)
|
|
|
(81,424
|
)
|
|
|
Less treasury stock, at cost; 29,990 shares at March 31, 2016 and
December 31, 2015, respectively
|
|
|
(96
|
)
|
|
|
(96
|
)
|
|
|
Total ORBCOMM Inc. stockholders' equity
|
|
|
299,060
|
|
|
|
299,393
|
|
|
|
Noncontrolling interest
|
|
|
369
|
|
|
|
363
|
|
|
|
Total equity
|
|
|
299,429
|
|
|
|
299,756
|
|
|
|
Total liabilities and equity
|
|
$
|
526,306
|
|
|
$
|
526,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORBCOMM Inc.
|
|
|
Consolidated Statements of Operations
|
|
|
(In thousands, except per share data)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Service revenues
|
|
$
|
26,914
|
|
|
$
|
23,774
|
|
|
|
Product sales
|
|
|
16,646
|
|
|
|
18,556
|
|
|
|
Total revenues
|
|
|
43,560
|
|
|
|
42,330
|
|
|
|
Cost of revenues, exclusive of depreciation and amortization
shown below:
|
|
|
|
|
|
|
Cost of services
|
|
|
9,188
|
|
|
|
7,704
|
|
|
|
Cost of product sales
|
|
|
11,450
|
|
|
|
13,948
|
|
|
|
Gross profit
|
|
|
22,922
|
|
|
|
20,678
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
11,756
|
|
|
|
11,441
|
|
|
|
Product development
|
|
|
1,957
|
|
|
|
1,608
|
|
|
|
Depreciation and amortization
|
|
|
8,959
|
|
|
|
6,455
|
|
|
|
Acquisition-related and integration costs
|
|
|
364
|
|
|
|
2,451
|
|
|
|
Loss from operations
|
|
|
(114
|
)
|
|
|
(1,277
|
)
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
Interest income
|
|
|
88
|
|
|
|
71
|
|
|
|
Other (expense) income
|
|
|
(190
|
)
|
|
|
188
|
|
|
|
Interest expense
|
|
|
(1,699
|
)
|
|
|
(1,242
|
)
|
|
|
Total other income (expense)
|
|
|
(1,801
|
)
|
|
|
(983
|
)
|
|
|
Loss before income taxes
|
|
|
(1,915
|
)
|
|
|
(2,260
|
)
|
|
|
Income taxes
|
|
|
162
|
|
|
|
477
|
|
|
|
Net loss
|
|
|
(2,077
|
)
|
|
|
(2,737
|
)
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to the noncontrolling interests
|
|
|
19
|
|
|
|
136
|
|
|
|
Net loss attributable to ORBCOMM Inc.
|
|
$
|
(2,096
|
)
|
|
$
|
(2,873
|
)
|
|
|
Net loss attributable to ORBCOMM Inc. common stockholders
|
|
$
|
(2,096
|
)
|
|
$
|
(2,882
|
)
|
|
|
Per share information-basic:
|
|
|
|
|
|
|
Net loss attributable to ORBCOMM Inc. common stockholders
|
|
$
|
(0.03
|
)
|
|
$
|
(0.04
|
)
|
|
|
Per share information-diluted:
|
|
|
|
|
|
|
Net loss attributable to ORBCOMM Inc. common stockholders
|
|
$
|
(0.03
|
)
|
|
$
|
(0.04
|
)
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
70,700
|
|
|
|
70,238
|
|
|
|
Diluted
|
|
|
70,700
|
|
|
|
70,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORBCOMM Inc.
|
|
Consolidated Statements of Cash Flows
|
|
(In Thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2016
|
|
2015
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(2,077
|
)
|
|
$
|
(2,737
|
)
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
Change in allowance for doubtful accounts
|
|
|
(303
|
)
|
|
|
200
|
|
|
Change in the fair value of acquisition-related contingent
consideration
|
|
|
100
|
|
|
|
(93
|
)
|
|
Amortization of the fair value adjustment related to warranty
liabilities acquired through acquisitions
|
|
|
(8
|
)
|
|
|
(12
|
)
|
|
Amortization and write off of deferred financing fees
|
|
|
155
|
|
|
|
110
|
|
|
Depreciation and amortization
|
|
|
8,959
|
|
|
|
6,455
|
|
|
Stock-based compensation
|
|
|
1,386
|
|
|
|
1,131
|
|
|
Foreign exchange loss (gain)
|
|
|
351
|
|
|
|
(532
|
)
|
|
Deferred income taxes
|
|
|
203
|
|
|
|
432
|
|
|
Changes in operating assets and liabilities, net of acquisition:
|
|
|
|
|
|
Accounts receivable
|
|
|
(1,096
|
)
|
|
|
10,946
|
|
|
Inventories
|
|
|
(864
|
)
|
|
|
(3,004
|
)
|
|
Prepaid expenses and other assets
|
|
|
(969
|
)
|
|
|
(1,351
|
)
|
|
Accounts payable and accrued liabilities
|
|
|
(877
|
)
|
|
|
(6,538
|
)
|
|
Deferred revenue
|
|
|
(1,178
|
)
|
|
|
(318
|
)
|
|
Other liabilities
|
|
|
(118
|
)
|
|
|
130
|
|
|
Net cash provided by operating activities
|
|
|
3,664
|
|
|
|
4,819
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Acquisition of businesses, net of cash acquired
|
|
|
-
|
|
|
|
(133,707
|
)
|
|
Capital expenditures
|
|
|
(9,835
|
)
|
|
|
(4,171
|
)
|
|
Cash held for acquisition
|
|
|
-
|
|
|
|
123,000
|
|
|
Net cash used in investing activities
|
|
|
(9,835
|
)
|
|
|
(14,878
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Proceeds received from issuance of long-term debt
|
|
|
-
|
|
|
|
10,000
|
|
|
Cash paid for debt issuance costs
|
|
|
-
|
|
|
|
(842
|
)
|
|
Proceeds received from exercise of stock options
|
|
|
-
|
|
|
|
244
|
|
|
Principal payment of note payable
|
|
|
-
|
|
|
|
(10,000
|
)
|
|
Principal payments of capital leases
|
|
|
-
|
|
|
|
(24
|
)
|
|
Net cash used in financing activities
|
|
|
-
|
|
|
|
(622
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
252
|
|
|
|
(192
|
)
|
|
Net decrease in cash and cash equivalents
|
|
|
(5,919
|
)
|
|
|
(10,873
|
)
|
|
Beginning of period
|
|
|
27,077
|
|
|
|
91,565
|
|
|
End of period
|
|
$
|
21,158
|
|
|
$
|
80,692
|
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
Cash paid for
|
|
|
|
|
|
Interest
|
|
$
|
2,198
|
|
|
$
|
2,332
|
|
|
Income taxes
|
|
$
|
138
|
|
|
$
|
364
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles our Net Income attributable to
ORBCOMM
Inc.
to EBITDA and Adjusted EBITDA for the periods shown:
|
|
|
|
|
|
Three months ended
|
|
|
|
March 31,
|
|
|
(in thousands)
|
|
2016
|
|
2015
|
|
|
Net loss attributable to ORBCOMM Inc.
|
|
($2,096)
|
|
($2,873)
|
|
|
Net interest expense (income)
|
|
1,611
|
|
1,171
|
|
|
Provision for income taxes
|
|
162
|
|
477
|
|
|
Depreciation and amortization
|
|
8,959
|
|
6,455
|
|
|
EBITDA
|
|
$8,636
|
|
$5,230
|
|
|
Stock-based compensation
|
|
1,386
|
|
1,131
|
|
|
Noncontrolling interests
|
|
19
|
|
136
|
|
|
Acquisition-related and integration costs
|
|
364
|
|
2,451
|
|
|
In-orbit insurance
|
|
293
|
|
97
|
|
|
Adjusted EBITDA
|
|
$10,698
|
|
$9,045
|
|
|
|
|
|
|
|
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 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
and its capacity to fund capital expenditures, 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. EBITDA, Adjusted
EBITDA and Adjusted EBITDA Margin are not performance measures
calculated in accordance with accounting principles generally accepted
in the United States, or GAAP. While ORBCOMM considers EBITDA, Adjusted
EBITDA and Adjusted EBITDA Margin to be important measures of operating
performance, they 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 EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
measures presented by other companies. A reconciliation table is
presented above.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160505005836/en/
Source: ORBCOMM Inc.
Investor Inquiries:
ORBCOMM Inc.
Michelle
Ferris, 703-433-6516
Director of Corporate Communications
ferris.michelle@orbcomm.com
or
Media
Inquiries:
The Abernathy MacGregor Group
Chuck
Burgess, 212-371-5999
President
clb@abmac.com
