8-K

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, 2019

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))

 

(Title of Each Class)

 

(Trading Symbol)

 

(Name of Each Exchange

on which Registered)

Common Stock, par value $0.0001 per share   VSAT   The Nasdaq Stock Market LLC

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, 2019, Viasat, Inc. issued a press release reporting its results of operations for the fourth quarter and fiscal year 2019. 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, 2019 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, 2019     Viasat, Inc.
    By:      

/s/ Brett Church

      Brett Church
      Associate General Counsel

 

2

EX-99.1

Exhibit 99.1

 

LOGO

Viasat Announces Fourth Quarter and Fiscal Year 2019 Results

 

 

Viasat’s fiscal year 2019 was marked by record annual revenues of $2.1 billion, up 30% year-over-year, led by strong execution across the Company’s diversified business lines

 

 

New contract awards were the highest in the Company’s history, at $2.4 billion for fiscal year 2019, expanding by over $700 million or 42% compared to fiscal year 2018

 

 

Fiscal year 2019 net loss was flat year-over-year and although Adjusted EBITDA increased by $104.4 million, or 44%, this was offset by an additional $108.9 million of depreciation, amortization and interest expense

 

 

Fourth quarter fiscal year 2019 revenues hit a new high of $557.2 million, up 27% year-over-year, with improved operating profits reported across all three business segments generating positive net income of $2.5 million and Adjusted EBITDA of $108.3 million—both substantial improvements compared to the prior year period

 

 

ViaSat-2 insurance claim fully settled; total insurance proceeds received were $188.0 million

CARLSBAD, Calif., May 23, 2019 Viasat Inc. (NASDAQ: VSAT), a global communications company, today announced financial results for the fiscal fourth quarter ended March 31, 2019.

“Fiscal year 2019 was a pivotal year for Viasat,” said Mark Dankberg, Viasat chairman and CEO. “We entered the year with an ambitious growth agenda, and a commitment to capitalize on prior period investments in ViaSat-2, in-flight connectivity (IFC) mobility and defense products. We executed well, transforming sales backlogs into record revenue and compelling Adjusted EBITDA growth. IFC registered impressive market share gains and global recognition for quality and reliability. Government Systems delivered exceptional growth, record new contract awards and expanding market opportunities fueled by investments in innovative Non-Developmental Item (NDI) products. Satellite Services achieved record revenues with greater vertical and geographic market diversification and solid momentum. We’ve also made good progress on our growth initiatives in new vertical and geographic markets – aided by key agreements with global strategic and regional satellite partners. We are energized by the opportunities before us in fiscal year 2020 that are enabled by our unique, highly-integrated technology and business approach.”

 

Financial Results

 

(In millions, except per share data)

   Q4 FY19      Q4 FY18     Year-
Over-Year
Change
    FY19     FY18     Year-
Over-Year
Change
 

Revenues

    $ 557.2       $ 439.7       27    $ 2,068.3      $ 1,594.6       30

Net income (loss)1

    $ 2.5      ($ 19.9     *     ($ 67.6   ($ 67.3     0

Non-GAAP net income (loss)1

    $ 20.4      ($ 3.1     *      $ 0.9      $ 2.2       -59

Adjusted EBITDA

    $ 108.3       $ 55.6       95    $ 339.4      $ 235.0       44

Diluted per share net income (loss)1

    $ 0.04      ($ 0.34     *     ($ 1.13   ($ 1.15     -2

Non-GAAP diluted per share net income (loss)1

    $ 0.33      ($ 0.05     *      $ 0.01      $ 0.04       -75

Fully diluted weighted average shares2

     61.4        59.1       4     59.9       58.4       3

New contract awards3

    $ 612.3       $ 404.0       52    $ 2,369.2      $ 1,666.6       42

Sales backlog4

    $ 1,866.3       $ 1,090.0       71    $ 1,866.3      $ 1,090.0       71


Segment Results

 

(In millions)

   Q4 FY19     Q4 FY18     Year-
Over-Year
Change
    FY19     FY18     Year-
Over-Year
Change
 

Satellite Services

            

New contract awards3

    $ 189.6      $ 145.3       30    $ 693.2      $ 593.6       17

Revenues

    $ 190.0      $ 145.0       31    $ 684.2      $ 589.3       16

Operating profit (loss)5

    $ 0.7     ($ 21.1     *     ($ 64.3    $ 12.0       *  

Adjusted EBITDA

    $ 65.2      $ 30.1       117    $ 196.1      $ 193.9       1

Commercial Networks

            

New contract awards

    $ 95.8      $ 66.2       45    $ 440.5      $ 250.6       76

Revenues

    $ 91.8      $ 76.2       21    $ 428.4      $ 233.2       84

Operating loss5

   ($ 49.2   ($ 50.1     -2   ($ 166.6   ($ 229.1     -27

Adjusted EBITDA

   ($ 34.3   ($ 32.9     4   ($ 108.6   ($ 165.9     -35

Government Systems

            

New contract awards

    $ 326.9      $ 192.5       70    $ 1,235.5      $ 822.4       50

Revenues

    $ 275.3      $ 218.6       26    $ 955.6      $ 772.1       24

Operating profit5

    $ 60.2      $ 40.6       48    $ 180.0      $ 137.1       31

Adjusted EBITDA

    $ 77.3      $ 58.4       32    $ 252.0      $ 206.9       22

 

1

Attributable to Viasat, Inc. common stockholders.

2

As the fiscal years ended March 31, 2019 and 2018 and three months ended March 31, 2018 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.

3 

Awards exclude future revenue under recurring consumer commitment arrangements.

4

Amounts include certain backlog adjustments due to contract changes and amendments. Backlog does not include anticipated purchase orders and requests for the installation of IFC systems or future recurring in-flight internet service revenues under our commercial in-flight internet agreements in our Commercial Networks and Satellite Services segments, respectively. Starting with the first quarter of fiscal year 2019, upon adoption of ASC 606, our backlog includes contracts with subscribers for fixed broadband services in our Satellite Services segment. Backlog as of March 31, 2018 does not include contracts with our subscribers for fixed broadband services in our Satellite Services segment.

5 

Before corporate and amortization of acquired intangible assets.

*

Percentage not meaningful.

Satellite Services

The Company’s Satellite Services segment achieved another quarter of record revenue performance at $190.0 million in the fourth quarter of fiscal year 2019, with gains of 31% year-over-year and 7% sequentially. In fixed broadband services, the Company’s premium service offerings continued to drive year-over-year revenue growth across both residential and enterprise markets. Mobile broadband service revenues also achieved a new high, as the Company’s commercial aviation IFC business more than doubled in-service aircraft year-over-year, and by 17% sequentially. On the international front, the fourth quarter of fiscal year 2019 included elevated investments in market expansion opportunities for fixed and mobile broadband services across Latin America, Europe and Asia Pacific. Revenues obtained from businesses other than U.S. fixed broadband services rose to approximately 24% of the segment’s revenue for the fourth quarter of fiscal year 2019. Segment Adjusted EBITDA more than doubled compared to the fourth quarter of fiscal year 2018, and rose 17% on a sequential basis, excluding any impacts associated with the Company’s ViaSat-2 insurance claims recorded in the second half of fiscal year 2019. Highlights for the quarter include:

 

   

Fixed broadband services

 

   

U.S. residential fixed broadband Average Revenue per User (ARPU) continued to grow: ARPU reached $81.99 for the fourth quarter of fiscal year 2019, an increase of about 5% from the prior quarter and 15% year-over-year, as consumers continued to migrate to Viasat’s premium higher-speed plans. At the close of the fourth quarter of fiscal year 2019, the total number of U.S. subscribers was up slightly on a sequential quarter basis to 586,000.


 

   

Expanded internet connectivity in Mexico: Viasat and Facebook announced a collaboration to accelerate the deployment of affordable, high-speed, high-quality internet to communities that lack reliable internet or have no connectivity at all. The collaboration will initially focus on Mexico, bringing internet connectivity to remote regions of the country, with an opportunity to expand globally.

 

   

Connecting Brazil: Following the close of fiscal year 2019, the Brazilian Federal Court of Accounts (TCU) provided final approval of the Viasat-Telebras contract, enabling the two companies to commercialize Telebras’ satellite and enter into enterprise and commercial aviation markets, as well as provide Community Wi-Fi and residential services across Brazil. To date, Viasat and Telebras have connected more than 1.2 million students in more than 3,700 public schools as well as hundreds of additional sites, such as border patrol posts, public health units and indigenous villages through the Brazilian e-Government initiative, GESAC.

 

   

Mobility services

 

   

At the close of the fourth quarter of fiscal year 2019, the number of commercial aircraft in-service flying with Viasat’s IFC equipment was 1,312 aircraft – up 189 aircraft from the prior quarter, a 107% increase year-over-year. Viasat expects to install its IFC equipment on approximately 490 additional commercial aircraft under existing contracts.

 

   

Transatlantic service on ViaSat-2 went live: EL AL Israel Airlines and Neos, the Italian leisure airline, launched in-flight Wi-Fi service on routes flying to and from North American destinations.

 

   

IFC and live television over the same Ka-band antenna: Now more than 550 aircraft in American Airlines’ domestic fleet are using Viasat’s satellite system to power in-flight connectivity and 12-channels of live television service.

 

   

In-flight streaming: As announced during the third quarter fiscal year 2019 earnings call, American Airlines and Apple announced free in-flight streaming of Apple Music, available on all Viasat-equipped American Airlines aircraft.

 

   

Broadening global reach: After the close of fiscal year 2019, Viasat announced it partnered with China Satcom to bring IFC service to airlines over China. This announcement followed Viasat’s introduction of its second-generation hybrid Ku-/Ka-band IFC antenna system, aimed at the global commercial wide-body aircraft market.

For fiscal year 2019, Satellite Services segment revenues reached a new record as the total ViaSat-2 fixed and mobile service base began to scale. The segment operating loss for fiscal year 2019 reflected the higher depreciation, fixed operating expenses and sales and marketing costs associated with the ViaSat-2 service launch, as well as expenses related to the ramp in IFC aircraft installations. Adjusted EBITDA performance for the segment for fiscal year 2019 improved slightly compared to fiscal year 2018.

Commercial Networks

For the fourth quarter of fiscal year 2019, Viasat’s Commercial Networks segment revenues increased 21% from the prior year, as the Company continued its rapid IFC terminal delivery activities based on strong customer demand. Segment performance also reflected revenue growth across the Company’s antenna systems infrastructure businesses and other satellite networking areas. Segment operating losses and Adjusted EBITDA for the quarter remained relatively flat compared to the prior year period. Research and Development (R&D) expense for the quarter declined by $7.0 million year-over-year, and held flat on a sequential quarter basis, as the Company progressed through final module test and validation for the Company’s first two ViaSat-3 class satellite payloads, and neared final migration to the capital portion of the project. Highlights for the quarter include:

 

   

Strong IFC terminal execution: In the fourth quarter of fiscal year 2019, Viasat delivered 108 terminals. For the year, the Company delivered 704 IFC shipsets and secured nine Supplemental Type Certificates (STC) or amendments for the commercial aviation business.


   

ViaSat-3 program status: Hardware build, enhanced payload testbed capabilities and qualification testing on flight test hardware for the first two ViaSat-3 class satellites continued to progress. The third ViaSat-3 class satellite program commenced with the design configuration phase underway.

For fiscal year 2019 the Commercial Networks segment saw narrowed segment operating losses and improved Adjusted EBITDA compared to the prior fiscal year.

Government Systems

Viasat’s Government Systems segment achieved another quarter of record performance, setting new highs for revenues, operating profit and Adjusted EBITDA. Fourth quarter fiscal year 2019 also marked the close of the segment’s first ever $1 billion contract win year, with fiscal year 2019 segment new contract awards totaling over $1.2 billion, up 50% compared to the prior fiscal year, representing a book-to-bill ratio of 1:3:1. For the quarter, compared to the prior year period, revenues increased by 26%, to $275.3 million; operating profit increased by 48%, to $60.2 million; and Adjusted EBITDA grew by 32%, to $77.3 million. Operating results reflected strong performance across multiple business units, including additional year-over-year operating profit and Adjusted EBITDA contributions from sales of government satellite communication products, government mobile broadband solutions and network security platforms. Highlights for the quarter include:

 

   

Growing opportunities in the Canadian defense market: Viasat and partner MDA announced Viasat’s KOR-24A Small Tactical Terminal was selected by the Canadian Department of National Defence to support the Canadian Army’s Airspace Coordination Centre Modernization project.

 

   

Tactical data links milestone: In March 2019, Viasat reached 1,000 AN/PRC-161 Battlefield Awareness Targeting System-Dismounted (BATS-D) handheld Link 16 radios shipped. This radio provides secure, reliable access to integrated air and ground information for improved situational awareness and enhanced close air support communications.

 

   

Major award programs: After the close of fiscal year 2019, Viasat was awarded a five-year, sole-source Indefinite Delivery Indefinite Quantity (IDIQ) contract by the General Services Administration, with a maximum ceiling of $450 million to support rapid migration of Command, Control, Communications and Computers/Cyber (C5AD) capability best practices for U.S. Special Operations Forces and U.S. General Purpose Forces.

 

   

Spacecraft and Link 16 waveform expertise leads to new satellite business: After the close of fiscal year 2019, Viasat was awarded a contract by the Administrator of the Space Enterprise Consortium, under the Air Force Research Laboratory Space Vehicles XVI program to deliver and test the first-ever Link 16-capable low earth orbit (LEO) spacecraft prototype.

For fiscal year 2019, Viasat’s Government Systems segment’s record performance continued with revenue growth of 24% to $955.6 million, an operating profit increase of 31% to $180.0 million and an Adjusted EBITDA increase of 22% to $252.0 million, compared to the prior fiscal year.

Conference Call

Viasat will host a conference call to discuss the fourth quarter and fiscal year 2019 results. Details follow:

 

DATE/TIME:

  

Thursday, May 23, 2019 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 Thursday, May 23 until 11:59 p.m. Eastern Time on Friday, May 24 by dialing (855) 859-2056 for U.S. callers and (404) 537-3406 for international callers; conference ID 6371199.


About Viasat

Viasat is a global communications company that believes everyone and everything in the world can be connected. For more than 30 years, Viasat has helped shape how consumers, businesses, governments and militaries around the world communicate. Today, the Company is developing the ultimate global communications network to power high-quality, secure, affordable, fast connections to impact people’s lives anywhere they are—on the ground, in the air or at sea. To learn more about Viasat, visit: www.viasat.com, go to Viasat’s Corporate Blog, or follow the Company on social media at: FacebookInstagramLinkedInTwitter or YouTube.

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 2020 and beyond; satellite construction and launch activities; the expected completion, performance, capacity, service, coverage, service speeds, availability and other features of our satellites, and the timing, cost, economics and other benefits associated therewith; domestic and international expansion plans, including with respect to the expansion of our footprint and service offerings in Mexico and collaboration with Facebook; the number of IFC systems expected to be installed under existing contracts with commercial airlines; and the impacts of new contracts entered into with, and the roll-out, ramp-up and uptake of products and services by, and services to be offered by, our airline partners and other customers. Readers are cautioned that actual results could differ materially and adversely 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 acquisitions or strategic partnering arrangements; our ability to successfully develop, introduce and sell new technologies, products and services; the number of purchase orders that are submitted and accepted for the installation of IFC systems with respect to aircraft under contract; 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 (including changes affecting spectrum availability or permitted uses) on our ability to sell products and services; orbital arc congestion affecting availability of Ka-band spectrum; the effect of changes in the way Ka-band spectrum is used by others; 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.


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 © 2019 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat signal are registered trademarks 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, 2019                  March 31, 2018                  March 31, 2019                  March 31, 2018        

Revenues:

           

Product revenues

     $ 292,262          $ 231,689          $ 1,092,691          $ 755,547    

Service revenues

     264,959          207,981          975,567          839,078    
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenues

     557,221          439,670          2,068,258          1,594,625    

Operating expenses:

           

Cost of product revenues

     218,104          170,745          834,472          553,677    

Cost of service revenues

     179,901          156,599          703,249          567,137    

Selling, general and administrative

     118,130          106,038          458,458          385,420    

Independent research and development

     29,383          36,865          123,044          168,347    

Amortization of acquired intangible assets

     2,280          2,474          9,655          12,231    
  

 

 

    

 

 

    

 

 

    

 

 

 

Income (loss) from operations

     9,423          (33,051)         (60,620)         (92,187)   

Interest expense, net

     (9,663)         (3,595)         (49,861)         (3,066)   

Loss on extinguishment of debt

     -          -          -          (10,217)   
  

 

 

    

 

 

    

 

 

    

 

 

 

Loss before income taxes

     (240)         (36,646)         (110,481)         (105,470)   

Benefit from income taxes

     5,335          16,745          41,014          35,217    

Equity in income of unconsolidated affiliate, net

     268          385          2,998          1,978    
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income (loss)

     5,363          (19,516)         (66,469)         (68,275)   
Less: net income (loss) attributable to noncontrolling interests, net of tax      2,848          430          1,154          (970)   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income (loss) attributable to Viasat Inc.

     $ 2,515          $ (19,946)         $ (67,623)        $ (67,305)   
  

 

 

    

 

 

    

 

 

    

 

 

 
Diluted net income (loss) per share attributable to Viasat Inc. common stockholders      $ 0.04          $ (0.34)         $ (1.13)         $ (1.15)   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted common equivalent shares

     61,356          59,052          59,942          58,438    

AN ITEMIZED RECONCILIATION BETWEEN NET INCOME (LOSS) ATTRIBUTABLE TO VIASAT INC.

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

(In thousands, except per share data)    Three months ended      Twelve months ended  
           March 31, 2019                  March 31, 2018                  March 31, 2019                  March 31, 2018        

GAAP net income (loss) attributable to Viasat Inc.

     $ 2,515          $ (19,946)         $ (67,623)         $ (67,305)   

Amortization of acquired intangible assets

     2,280          2,474          9,655          12,231    

Stock-based compensation expense

     20,941          19,413          79,599          68,545    

Loss on extinguishment of debt

     -           -           -           10,217    

Income tax effect (1)

     (5,353)         (5,082)         (20,746)         (21,508)   
  

 

 

    

 

 

    

 

 

    

 

 

 

Non-GAAP net income (loss) attributable to Viasat Inc.

     $ 20,383          $ (3,141)         $ 885          $ 2,180    
  

 

 

    

 

 

    

 

 

    

 

 

 
Non-GAAP diluted net income (loss) per share attributable to Viasat Inc. common stockholders      $ 0.33          $ (0.05)         $ 0.01          $ 0.04    
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted common equivalent shares

     61,356          59,052          59,942          58,438    

 

(1) 

The income tax effect is calculated using the tax rate applicable for the non-GAAP adjustments.

AN ITEMIZED RECONCILIATION BETWEEN NET INCOME (LOSS) ATTRIBUTABLE TO VIASAT INC.

AND ADJUSTED EBITDA IS AS FOLLOWS:

(In thousands)    Three months ended      Twelve months ended  
           March 31, 2019                  March 31, 2018                  March 31, 2019                  March 31, 2018        

GAAP net income (loss) attributable to Viasat Inc.

     $ 2,515          $ (19,946)         $ (67,623)         $ (67,305)   

Benefit from income taxes

     (5,335)         (16,745)         (41,014)         (35,217)   

Interest expense, net

     9,663          3,595          49,861          3,066    

Depreciation and amortization

     80,508          69,276          318,613          255,652    

Stock-based compensation expense

     20,941          19,413          79,599          68,545    

Loss on extinguishment of debt

     -              -              -              10,217    
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA

     $ 108,292          $ 55,593          $ 339,436          $ 234,958    
  

 

 

    

 

 

    

 

 

    

 

 

 


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, 2019      Three months ended March 31, 2018  
    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     $ 650         $ (49,189)        $ 60,242         $ 11,703          $ (21,122)        $ (50,098)        $ 40,643         $ (30,577)   

Depreciation (2)

    50,439         6,140         10,148         66,727          40,043         7,542         9,645         57,230    

Stock-based compensation expense

    6,460         7,071         7,410         20,941          5,019         7,133         7,261         19,413    

Other amortization

    7,429         1,720         2,352         11,501          4,825         2,571         2,176         9,572    
Equity in income of unconsolidated affiliate, net     268         -             -             268          385         -             -             385    

Noncontrolling interests

    -             -             (2,848)        (2,848)         919         -             (1,349)        (430)   
 

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

    $ 65,246         $ (34,258)        $ 77,304         $ 108,292          $ 30,069         $ (32,852)        $ 58,376         $ 55,593    
 

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
    Twelve months ended March 31, 2019      Twelve months ended March 31, 2018  
    Satellite
Services
    Commercial
Networks
    Government
Systems
    Total      Satellite
Services
    Commercial
Networks
    Government
Systems
    Total  
Segment operating (loss) profit before corporate and amortization of acquired intangible assets     $ (64,321)        $ (166,613)        $ 179,969         $ (50,965)         $ 12,018         $ (229,105)        $ 137,131         $ (79,956)   

Depreciation (2)

    202,332         22,798         37,159         262,289          146,138         28,098         36,205         210,441    

Stock-based compensation expense

    23,736         27,777         28,086         79,599          16,861         25,873         25,811         68,545    

Other amortization

    29,037         7,436         10,196         46,669          14,464         9,281         9,235         32,980    
Equity in income of unconsolidated affiliate, net     2,998         -           -              2,998          1,978         -             -             1,978    

Noncontrolling interests

    2,269         -           (3,423)        (1,154)         2,486         -             (1,516)        970    
 

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

    $ 196,051         $ (108,602)        $ 251,987         $ 339,436          $ 193,945         $ (165,853)        $ 206,866         $ 234,958    
 

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

(2) 

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.


Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

 

Assets    As of
    March 31, 2019    
    As of
    March 31, 2018    
        Liabilities and Equity    As of
    March 31, 2019    
    As of
    March 31, 2018    
 

Current assets:

         Current liabilities:     

Cash and cash equivalents

     $ 261,701        $ 71,446        Accounts payable      $ 157,275        $ 157,481   

Accounts receivable, net

     300,307        267,665        Accrued liabilities      308,268        263,676   

Inventories

     234,518        196,307        Current portion of long-term debt      19,937        45,300   
           

 

 

   

 

 

 
Prepaid expenses and other current assets      90,646        77,135        Total current liabilities      485,480        466,457   
  

 

 

   

 

 

          

Total current assets

     887,172        612,553        Senior notes      1,282,898        690,886   
         Other long-term debt      110,005        287,519   
         Other liabilities      120,826        121,240   
           

 

 

   

 

 

 
         Total liabilities      1,999,209        1,566,102   
           

 

 

   

 

 

 
Property, equipment and satellites, net      2,125,290        1,962,475            
Other acquired intangible assets, net      22,301        31,862        Total Viasat Inc. stockholders’ equity      1,907,748        1,837,166   

Goodwill

     121,719        121,085        Noncontrolling interest in subsidiaries      8,330        10,841   
           

 

 

   

 

 

 

Other assets

     758,805        686,134        Total equity      1,916,078        1,848,007   
  

 

 

   

 

 

        

 

 

   

 

 

 

Total assets

     $ 3,915,287        $ 3,414,109        Total liabilities and equity      $ 3,915,287        $ 3,414,109   
  

 

 

   

 

 

        

 

 

   

 

 

 

# # #

Viasat, Inc. Contacts:

Chris Phillips, Corporate Communications and Public Relations, +1 760-476-2322, chris.phillips@viasat.com

June Harrison, Investor Relations, +1 760-476-2633, IR@viasat.com