ViaSat, Inc.
VIASAT INC (Form: 8-K, Received: 05/23/2017 16:09:54)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): May 23, 2017

 

 

ViaSat, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Delaware   000-21767   33-0174996

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File No.)

 

(I.R.S. Employer

Identification No.)

6155 El Camino Real

Carlsbad, California 92009

(Address of Principal Executive Offices, Including Zip Code)

 

 

(760) 476-2200

(Registrant’s Telephone Number, Including Area Code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On May 23, 2017, ViaSat, Inc. issued a press release reporting its results of operations for the fourth quarter and fiscal year 2017. A copy of the press release is furnished herewith as Exhibit 99.1.

The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit

Number

  

Description of Exhibit

99.1    Press Release dated May 23, 2017 issued by ViaSat, Inc.

 

1


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: May 23, 2017     ViaSat, Inc.
    By:  

/s/ Paul Castor

      Paul Castor
      Vice President, Chief Corporate Counsel

 

2

LOGO

Exhibit 99.1

 

ViaSat Announces Fourth Quarter and Fiscal Year 2017 Results

 

    Fiscal year 2017 set multiple new records including awards of $1.7 billion and revenues of $1.6 billion

 

    Operating cash flow generation hit highest level in Company history at $411.3 million for fiscal 2017, supporting next-generation satellite platform investments and satellite construction

 

    Fiscal year 2017 revenue up 10%, with new record revenues achieved in Satellite Services and Government Systems segments

 

    ViaSat-2 satellite scheduled to launch on June 1, 2017 from the Guiana Space Centre in French Guiana

CARLSBAD, Calif., May 23, 2017 – ViaSat Inc. (NASDAQ: VSAT), a global broadband services and technology company, today announced financial results for the fiscal fourth quarter ended March 31, 2017.

“Our strong fourth quarter wrapped up a fiscal year that featured multiple performance records including revenue, cash flow from operations and new contract awards,” said Mark Dankberg, chairman and CEO of ViaSat. “Performance for both the quarter and full fiscal year were driven by our satellite services operations across the residential, aero and government mobility markets, and outstanding results from our government business, where we are capitalizing on our unique market position and capabilities. With our ViaSat-2 launch scheduled for June 1, we are poised to again set a new benchmark for low-cost bandwidth delivery and we’re making great progress with R&D investments in the ViaSat-3 program. Our strategy is simple: we want to lead the way with the highest speeds and the most bandwidth at the lowest total cost, an approach that will continue to redefine global bandwidth economics and open significant opportunities for ViaSat to disrupt multiple markets.”

Financial Results

 

(In millions, except per share data)

   Q4 FY17      Q4 FY16      Year-Over-Year
Change
    FY17      FY16      Year-Over-Year
Change
 

Revenues

   $ 416.4      $ 372.0        12.0   $ 1,559.3      $ 1,417.4        10.0

Net income 1

   $ 6.7      $ 4.5        49.4   $ 23.8      $ 21.7        9.3

Non-GAAP net income 1

   $ 18.5      $ 14.3        29.3   $ 65.6      $ 61.0        7.5

Adjusted EBITDA

   $ 83.5      $ 80.7        3.5   $ 340.8      $ 330.7        3.1

Diluted per share net income 1

   $ 0.11      $ 0.09        22.2   $ 0.45      $ 0.44        2.3

Non-GAAP diluted per share net income 1

   $ 0.32      $ 0.29        10.3   $ 1.23      $ 1.23        0.0

Fully diluted weighted average shares

     58.4        49.8        17.4     53.4        49.4        8.0

New contract awards

   $ 385.6      $ 451.2        (14.5 )%    $ 1,661.7      $ 1,483.3        12.0

Sales backlog 2,5

   $ 1,024.4      $ 941.9        8.8   $ 1,024.4      $ 941.9        8.8


Segment Results

 

(In millions)

   Q4 FY17     Q4 FY16     Year-Over-Year
Change
    FY17     FY16     Year-Over-Year
Change
 

Satellite Services

            

New contract awards

   $ 153.0     $ 135.2       13.2   $ 597.2     $ 511.1       16.8

Revenues

   $ 160.9     $ 145.4       10.6   $ 629.6     $ 559.2       12.6

Operating profit 3

   $ 32.8     $ 22.0       49.3   $ 131.1     $ 81.8       60.2

Adjusted EBITDA

   $ 75.0     $ 63.7     17.9   $ 297.4     $ 243.7       22.1

Commercial Networks

            

New contract awards

   $ 51.3     $ 74.6       (31.3 )%    $ 213.8     $ 228.0       (6.3 )% 

Revenues

   $ 59.1     $ 62.2       (5.0 )%    $ 244.6     $ 250.7       (2.4 )% 

Operating loss 3

   $ (52.5   $ (40.4     (29.9 )%    $ (180.5   $ (111.3     (62.1 )% 

Adjusted EBITDA

   $ (36.5   $ (26.6     (37.4 )%    $ (119.0   $ (56.5     (110.4 )% 

Government Systems

            

New contract awards

   $ 181.3     $ 241.4       (24.9 )%    $ 850.7     $ 744.2       14.3

Revenues

   $ 196.5     $ 164.4       19.5   $ 685.1     $ 607.5       12.8

Operating profit 3

   $ 25.6     $ 28.7       (10.9 )%    $ 96.7     $ 87.1       11.0

Adjusted EBITDA 4

   $ 45.0     $ 43.6       3.1   $ 162.3     $ 143.6       13.1

 

1 Attributable to ViaSat, Inc. common stockholders.
2   Amounts include certain backlog adjustments due to contract changes and amendments.
3   Before corporate and amortization of acquired intangible assets.
4   Government Systems’ segment Adjusted EBITDA for the fourth quarter and fiscal year ended March 31, 2016 has been adjusted to exclude noncontrolling interest, net of tax.
5   Backlog does not include anticipated equipment purchase orders or future recurring internet service revenues under commercial in-flight internet agreements, nor does it include contracts with ViaSat’s residential broadband internet subscribers.

Satellite Services

ViaSat’s Satellite Services segment achieved strong growth in the fourth quarter of fiscal year 2017 driven primarily by its diverse broadband service offerings, generating an 11% year-over-year revenue increase to a new record high of $160.9 million. Operating profit and Adjusted EBITDA both grew faster than revenue, as operating profit grew significantly, rising 49% to $32.8 million and Adjusted EBITDA increased 18% to $75.0 million. Fiscal 2017 fourth quarter Adjusted EBITDA margins also remained high at 47%, up from 44% in the same quarter last year. Highlights for the quarter include:

 

    Continued interest in premium, higher bandwidth broadband internet plans, plus growth in value-added services continued to drive gains in the residential broadband business, with an Average Revenue Per User (ARPU) of $66.02, up 13% year-over-year. This increase more than offset the effects of the slight decrease in the number of residential subscribers, which totaled approximately 659,000 subscribers at the close of fiscal year 2017.

 

    On March 3, 2017, ViaSat and Eutelsat Communications closed their European broadband strategic partnering arrangement, with ViaSat acquiring a 49% interest in Eutelsat’s wholesale services business for $139.5 million. A second entity, which is 51% owned by ViaSat, will focus on providing retail broadband internet services in the European region.

 

    In-flight connectivity business grew strongly with in-flight internet services now deployed on 559 commercial aircraft as of March 31, 2017, which was approximately 85 more aircraft than the end of fiscal year 2016.

 

    Now covering more than 90% of the world’s most frequently traveled flight paths, ViaSat’s in-flight internet services business continued to expand globally. Following the close of fiscal year 2017, ViaSat had more than 830 commercial aircraft in install backlog.


    Specific to commercial airline customers:

 

    JetBlue announced it became the only airline to offer free, high-speed Wi-Fi at every seat – using ViaSat’s in-flight internet service.

 

    Subsequent to the 2017 fiscal year end, Qantas held the first high-speed, high-performance connectivity media flight in Australia; marking a successful trial for ViaSat and partner, nbn™.

 

    Following the close of fiscal year 2017, ViaSat announced Icelandair as the first airline to bring high-speed connectivity and internet streaming to transatlantic flights using ViaSat’s in-flight internet system.

Fiscal 2017 Satellite Services segment results also reflected multiple record highs, with revenue growth of 13% to $629.6 million, an operating profit increase of 60% year-over-year to $131.1 million and Adjusted EBITDA of $297.4 million, up 22% over the same period last year.

Commercial Networks

In the fiscal fourth quarter of 2017, ViaSat’s Commercial Networks segment activities were heavily focused on the Company’s ViaSat-3 project, a next-generation satellite platform designed to deliver over 1 Terabit per second (Tbps) of high throughput Ka-band broadband capacity. These anticipated ViaSat-3 investments coupled with next-gen mobility solutions and supplement type certificate (STC) activities supporting recent commercial airline wins, drove R&D expenses up year–over-year by 77%. Additionally, quarterly revenues were down 5% compared to the same period last year. As a result, segment operating losses were higher and Adjusted EBITDA was lower for the fourth quarter of fiscal year 2017, as compared to the same period last year. Highlights for the quarter include:

 

    The launch of ViaSat-2 was somewhat further delayed due to civil unrest in French Guiana, the location of the ViaSat-2 launch site. ViaSat-2 is now scheduled to launch on June 1, 2017, with broadband services expected to be available in the fourth quarter of fiscal year 2018 following in-orbit testing.

 

    Development of first flight hardware for the ViaSat-3 program remained on track and is expected to begin arriving in ViaSat’s Tempe, Arizona satellite integration facility in late calendar year 2017.

 

    Following the close of fiscal 2017, ViaSat introduced its Gen-2 in-flight internet equipment for the ViaSat-2 and ViaSat-3 class satellite platforms. The Gen-2 equipment is expected to offer commercial and government aircraft even faster and higher-quality in-flight internet performance as compared to ViaSat’s prior generation system.

Fiscal 2017 Commercial Networks segment revenues were lower, operating loss was higher and Adjusted EBITDA was lower compared to the same period last year. Earnings decreases were primarily a result of the Company’s fiscal year 2017 ViaSat-3 R&D activities.

Government Systems

In the fourth quarter of fiscal year 2017, ViaSat’s Government Systems segment revenues increased 20% to a record $196.5 million, and Adjusted EBITDA grew 3% to $45.0 million, compared to the prior year period, while the operating profit was slightly lower by $3.1 million. Included in the Company’s fourth quarter and fiscal 2017 results was a loss contingency reserve recorded by ViaSat’s 52% majority-owned subsidiary TrellisWare. This reserve impacted fiscal fourth quarter of 2017 consolidated and segment operating profit by a total amount of $11.8 million; with a net effect after noncontrolling interest impacts to net income attributable to ViaSat, Inc. common stockholders of $4.0 million or $0.07 per diluted share and Adjusted EBITDA of $8.1 million ( See Table: ‘An Itemized Reconciliation between Segment Operating Profit (Loss) Before Corporate, Amortization of Acquired Intangibles and Adjusted EBITDA’ ). Excluding the impacts of this reserve, year-over-year segment operating profits and Adjusted EBITDA for the fiscal fourth quarter of 2017 would have grown by 30% and 22%, respectively. Highlights for the quarter include:

 

    Record year-to-date segment contract awards of $850.7 million, reflecting a 1.2 to 1 book-to-bill ratio, supported strong segment backlog of $633.3 million, a 30% increase over the same period last year.


    Revenue growth in the quarter and year-to-date was driven by ViaSat’s cybersecurity and information assurance, tactical data link and tactical satellite communication radio products.

 

    Global mobile broadband service revenues were boosted by increased satellite service subscriptions for senior U.S. government leader aircraft in both the quarter and year-to-date periods.

 

    Following the close of fiscal year 2017, the KOR-24A Small Tactical Terminal (STT) airborne radio continued to expand its presence on a number of U.S. and Allied radio programs and platforms, including the Boeing AV-8B Harrier aircraft.

ViaSat’s Government Systems segment performance for fiscal year 2017 included a number of new record highs: revenue growth of 13% to $685.1 million, operating profit growth of 11% to $96.7 million and Adjusted EBITDA growth of 13% to $162.3 million compared to fiscal 2016.

Conference Call

ViaSat will host a conference call to discuss the fourth quarter and fiscal year 2017 results. Details follow:

 

DATE/TIME: Tuesday, May 23, 2017 at 5:00 p.m. Eastern Time
DIAL-IN: (877) 640-9809 in the U.S.; (914) 495-8528 international
WEBCAST: investors.viasat.com.
REPLAY: Available from 8:00 p.m. Eastern Time on Tuesday, May 23 until 11:59 p.m. Eastern Time on Wednesday, May 24 by dialing (855) 859-2056 for U.S. callers and (404) 537-3406 for international callers; conference ID 24663268.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements that refer to opportunities, growth and outlook for fiscal year 2018 and beyond; satellite construction and launch activities; including the launch, in-orbit testing and entry into service of the ViaSat-2 satellite; the performance and benefits of our ViaSat-2 and ViaSat-3 class satellites; the expected completion, capacity, service, coverage, service speeds, availability and other features of our satellites, and the timing, cost, economics and other benefits associated therewith; the development and performance of equipment and hardware for the ViaSat-2 and ViaSat-3 class satellite platforms and the benefits associated therewith; international expansion plans; our strategic partnering arrangement with Eutelsat and the costs, economics and other benefits associated therewith; and the roll-out and uptake of products and services by, and services offered by, our airline partners as well as our commercial networks and government systems customers. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: our ability to realize the anticipated benefits of the ViaSat-2 and ViaSat-3 class satellites; unexpected expenses related to our satellite projects; our ability to successfully implement our business plan for our broadband satellite services on our anticipated timeline or at all; risks associated with the construction, launch and operation of our satellites, including the effect of any anomaly, operational failure or degradation in satellite performance; our ability to realize the anticipated benefits of our strategic partnership arrangement with Eutelsat; our ability to successfully develop, introduce and sell new technologies, products and services; audits by the U.S. government; changes in the global business environment and economic conditions; delays in approving U.S. government budgets and cuts in government defense expenditures; our reliance on U.S. government contracts, and on a small number of contracts which account for a significant percentage of our revenues; reduced demand for products and services as a result of continued constraints on capital spending by customers; changes in relationships with, or the financial condition of, key customers or suppliers; our reliance on a limited number of third parties to manufacture and supply our products; increased competition; introduction of new technologies and other factors affecting the communications and defense industries generally; the effect of adverse regulatory changes on our ability to sell products and services; our level of indebtedness and ability to comply with applicable debt covenants; our involvement in litigation, including intellectual property claims and litigation to protect our proprietary technology; and our dependence on a limited number of key employees. In addition, please refer to the risk factors contained in our SEC filings available at www.sec.gov, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements for any reason.


About ViaSat

ViaSat, Inc. (NASDAQ: VSAT) keeps the world connected. As a global broadband services and technology company, ViaSat ensures consumers, businesses, governments and military personnel have communications access – anywhere – whether on the ground or in-flight. The Company’s innovations in designing highest-capacity satellites and secure ground infrastructure and terminal technologies coupled with its international network of managed Wi-Fi hotspots enable ViaSat to deliver a best available network that extends the reach and accessibility of broadband internet service, globally. For more information, visit: www.viasat.com , or follow ViaSat on  Facebook Twitter LinkedIn  or  YouTube .

Use of Non-GAAP Financial Information

To supplement ViaSat’s consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), ViaSat uses non-GAAP net income (loss) attributable to ViaSat Inc. and Adjusted EBITDA, measures ViaSat believes are appropriate to enhance an overall understanding of ViaSat’s past financial performance and prospects for the future. We believe the non-GAAP results provide useful information to both management and investors by excluding specific expenses that we believe are not indicative of our core operating results. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting and facilitates comparisons to the Company’s historical operating results. Further, these non-GAAP results are among the primary indicators that management uses as a basis for evaluating the operating performance of our segments, allocating resources to such segments, planning and forecasting in future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. A reconciliation of specific adjustments to GAAP results is provided in the tables below.

Copyright © 2017 ViaSat, Inc. All rights reserved. ViaSat, and the ViaSat logo, are registered trademark of ViaSat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.


Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share data)

 

    Three months ended     Twelve months ended  
    March 31, 2017     March 31, 2016     March 31, 2017     March 31, 2016  

Revenues:

       

Product revenues

  $ 196,451     $ 176,523     $ 713,936     $ 664,821  

Service revenues

    219,968       195,441       845,401       752,610  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

    416,419       371,964       1,559,337       1,417,431  

Operating expenses:

       

Cost of product revenues

    141,942       133,414       524,026       489,246  

Cost of service revenues

    132,159       129,125       524,949       495,099  

Selling, general and administrative

    96,562       77,536       333,468       298,345  

Independent research and development

    39,857       21,615       129,647       77,184  

Amortization of acquired intangible assets

    3,223       2,780       10,788       16,438  
 

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

    2,676       7,494       36,459       41,119  

Interest expense, net

    (66     (5,990     (11,075     (23,522
 

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

    2,610       1,504       25,384       17,597  

(Benefit from) provision for income taxes

    (1,639     (2,883     3,617       (4,173
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    4,249       4,387       21,767       21,770  

Less: net (loss) income attributable to noncontrolling interests, net of tax

    (2,401     (63     (2,000     29  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to ViaSat Inc.

  $ 6,650     $ 4,450     $ 23,767     $ 21,741  
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income per share attributable to ViaSat Inc. common stockholders

  $ 0.11     $ 0.09     $ 0.45     $ 0.44  
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted common equivalent shares

    58,425       49,782       53,396       49,445  

AN ITEMIZED RECONCILIATION BETWEEN NET INCOME ATTRIBUTABLE TO VIASAT INC.

ON A GAAP BASIS AND NON-GAAP BASIS IS AS FOLLOWS:

 

    Three months ended     Twelve months ended  
    March 31, 2017     March 31, 2016     March 31, 2017     March 31, 2016  

GAAP net income attributable to ViaSat Inc.

  $ 6,650     $ 4,450     $ 23,767     $ 21,741  

Amortization of acquired intangible assets

    3,223       2,780       10,788       16,438  

Stock-based compensation expense

    15,852       13,194       55,775       47,510  

Acquisition related expenses

    —         —         615       —    

Income tax effect

    (7,266     (6,143     (25,372     (24,664
 

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income attributable to ViaSat Inc.

  $ 18,459     $ 14,281     $ 65,573     $ 61,025  
 

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP diluted net income per share attributable to ViaSat Inc. common stockholders

  $ 0.32     $ 0.29     $ 1.23     $ 1.23  
 

 

 

   

 

 

   

 

 

   

 

 

 

Diluted common equivalent shares

    58,425       49,782       53,396       49,445  

AN ITEMIZED RECONCILIATION BETWEEN NET INCOME ATTRIBUTABLE TO VIASAT INC.

AND ADJUSTED EBITDA IS AS FOLLOWS:

 

    Three months ended     Twelve months ended  
    March 31, 2017     March 31, 2016     March 31, 2017     March 31, 2016  

GAAP net income attributable to ViaSat Inc.

  $ 6,650     $ 4,450     $ 23,767     $ 21,741  

(Benefit from) provision for income taxes

    (1,639     (2,883     3,617       (4,173

Interest expense, net

    66       5,990       11,075       23,522  

Depreciation and amortization

    62,524       59,914       245,922       242,076  

Stock-based compensation expense

    15,852       13,194       55,775       47,510  

Acquisition related expenses

    —         —         615       —    
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 83,453     $ 80,665     $ 340,771     $ 330,676  
 

 

 

   

 

 

   

 

 

   

 

 

 


AN ITEMIZED RECONCILIATION BETWEEN SEGMENT OPERATING PROFIT (LOSS) BEFORE

CORPORATE AND AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS AND ADJUSTED EBITDA IS AS FOLLOWS:

(In thousands)

 

    Three months ended March 31, 2017     Three months ended March 31, 2016  
    Satellite
Services
    Commercial
Networks
    Government
Systems
    Total     Satellite
Services
    Commercial
Networks
    Government
Systems
    Total  

Segment operating profit (loss) before corporate and amortization of acquired intangible assets

  $ 32,822     $ (52,499   $ 25,576     $ 5,899     $ 21,981     $ (40,411   $ 28,704     $ 10,274  

Depreciation *

    34,724       6,093       8,988       49,805       35,025       4,928       8,692       48,645  

Stock-based compensation expense

    3,569       6,172       6,111       15,852       3,193       5,252       4,749       13,194  

Other amortization

    3,898       3,719       1,879       9,496       3,451       3,650       1,388       8,489  

Acquisition related expenses

    —         —         —         —         —         —         —         —    

Noncontrolling interests

    —         —         2,401       2,401       —         —         63 **      63  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 75,013     $ (36,515   $ 44,955     $ 83,453     $ 63,650     $ (26,581   $ 43,596 **    $ 80,665  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    Twelve months ended March 31, 2017     Twelve months ended March 31, 2016  
    Satellite
Services
    Commercial
Networks
    Government
Systems
    Total     Satellite
Services
    Commercial
Networks
    Government
Systems
    Total  

Segment operating profit (loss) before corporate and amortization of acquired intangible assets

  $ 131,085     $ (180,496   $ 96,658     $ 47,247     $ 81,830     $ (111,339   $ 87,066     $ 57,557  

Depreciation *

    141,108       24,483       35,095       200,686       137,541       21,693       33,852       193,086  

Stock-based compensation expense

    11,917       22,225       21,633       55,775       10,798       19,029       17,683       47,510  

Other amortization

    13,136       14,631       6,681       34,448       13,499       14,068       4,985       32,552  

Acquisition related expenses

    190       179       246       615       —         —         —         —    

Noncontrolling interests

    —         —         2,000       2,000       —         —         (29 )**      (29
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 297,436     $ (118,978   $ 162,313     $ 340,771     $ 243,668     $ (56,549   $ 143,557 **    $ 330,676  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* Depreciation expenses not specifically recorded in a particular segment have been allocated based on other indirect allocable costs, which management believes is a reasonable method.
** Government systems segment Adjusted EBITDA has been adjusted to exclude noncontrolling interest, net of tax.


Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

 

    As of     As of  
    March 31, 2017     March 31, 2016  

Assets

   

Current assets:

   

Cash and cash equivalents

  $ 130,098     $ 42,088  

Accounts receivable, net

    263,721       286,724  

Inventories

    163,201       145,161  

Prepaid expenses and other current assets***

    57,836       47,583  
 

 

 

   

 

 

 

Total current assets

    614,856       521,556  

Property, equipment and satellites, net

    1,648,878       1,385,107  

Other acquired intangible assets, net

    41,677       33,604  

Goodwill

    119,876       117,040  

Other assets***

    529,366       340,005  
 

 

 

   

 

 

 

Total assets

  $ 2,954,653     $ 2,397,312  
 

 

 

   

 

 

 
    As of     As of  
    March 31, 2017     March 31, 2016  
Liabilities and Equity    

Current liabilities:

   

Accounts payable

  $ 100,270     $ 95,645  

Accrued liabilities

    225,247       184,344  
 

 

 

   

 

 

 

Total current liabilities

    325,517       279,989  

Senior Notes, net***

    575,380       575,304  

Other long-term debt, net***

    273,103       370,224  

Other liabilities

    42,722       37,371  
 

 

 

   

 

 

 
Total liabilities     1,216,722       1,262,888  
 

 

 

   

 

 

 

Total ViaSat Inc. stockholders’ equity

    1,734,618       1,129,103  

Noncontrolling interest in subsidiaries

    3,313       5,321  
 

 

 

   

 

 

 

Total equity

    1,737,931       1,134,424  
 

 

 

   

 

 

 

Total liabilities and equity

  $ 2,954,653     $ 2,397,312  
 

 

 

   

 

 

 
 

 

*** The Company adopted Accounting Standards Updated 2015-03 Interest — Imputation of Interest (ASC 835-30): Simplifying the Presentation of Debt Issuance Costs retrospectively during the first quarter of fiscal 2017 and resultantly reclassified unamortized debt issuance costs as a direct deduction from the carrying amount of the Senior Notes and other long-term debt for all periods presented.

# # #

ViaSat, Inc. Contacts:

Chris Phillips, Public Relations, 760-476-2322, chris.phillips@viasat.com

June Harrison, Investor Relations, 760-476-2633, IR@viasat.com