pdvWireless Reports Third Quarter Results
2/16/16
WOODLAND PARK, NJ -- (
Revenue for the quarter ended
Revenue for the nine months ended
Because the Company recently has begun the process of deploying its advanced digital dispatch networks, the Company's revenues for the nine months of FY 2016 principally represent its historical software as-a-service ("SaaS") business. The operating results, however, also include: costs and expenses related to developing its broadband spectrum strategies, implementing the Company's digital dispatch networks, and the costs of raising funds.
The increase in revenues for the quarter was driven by our recently started dispatch business. The increase in revenues for the nine months is principally a result of spectrum leasing revenue, which began in
General and administrative expenses for the three months ended
Adjusted EBITDA for the quarter was a negative (
"We continue to make progress on both our near-term and long-term objectives," said
The Company also announced that it began actively preparing for the use of broadband spectrum in the event that its regulatory initiative is successful. These activities include: negotiations with 900 MHz incumbents regarding the realignment of the spectrum, discussions with several manufacturers of LTE infrastructure and subscriber units, identifying and investigating the potential market segments it may pursue, and engaging industry consultants to assist in the development of its strategic plan.
Strong Cash Position
The Company has a strong cash position, with
The Company's cash position was enhanced during the first nine months of fiscal 2016 by the
Conference Call
pdvWireless will host a conference call to discuss its third quarter 2016 financial results on
About pdvWireless
pdvWireless, Inc. is a private wireless communications carrier and provider of mobile workforce communications and location based solutions that increase the productivity of field-based workers and the efficiency of their dispatch and call center operations. pdvWireless has commenced launching the nation's largest private push-to-talk network in major markets throughout
In
pdvWireless's Chairman,
Non-GAAP Financial Information
This press release and the information contained herein present a non-GAAP financial measure, Adjusted EBITDA, which excludes certain amounts. The Company defines Adjusted EBITDA as net income (loss) with adjustments for depreciation and amortization, interest income (expense)-net, income taxes and stock-based compensation. The Company has included below unaudited adjusted financial information for the three and nine months ended
Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts are forward-looking statements (as defined under Federal securities laws). Forward-looking statements generally are accompanied by words such as "will", "expect", "intend", "plan", "outlook" or other similar words, phrases or expressions. These forward-looking statements include statements regarding the planned timing and scope of the Company's deployment of its dispatch network, the estimated costs of deploying its dispatch network, its regulatory broadband spectrum initiatives and plans and the use of proceeds from its recent public offering. Any forward-looking statements contained herein are based on our current expectations, but are subject to a number of risks and uncertainties that could cause our actual future results to differ materially from our current expectations or implied by any forward-looking statements. These risks and uncertainties include, but are not limited to: we have no meaningful operating history with respect to our recently launched DispatchPlus push-to-talk business; we have had net losses each year since our inception and may not achieve or maintain profitability in the future; we may experience delays in launching our nationwide network or in securing the necessary wireless sites to provide full coverage in our markets; customers may not adopt our technology as quickly as anticipated or in sufficient numbers; any efforts we pursue to increase the value of our spectrum may not be successful and may take longer or cost more than anticipated; we will rely on the equipment and selling efforts of other parties, such as indirect dealers; the wireless communication industry is highly competitive and we may not compete successfully; and government regulation could adversely affect our business and prospects. These and other factors that may affect our future results or operations are identified and described in more detail in our filings with the
pdvWireless, Inc. | ||||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Operating revenues | ||||||||||||||||||
Service revenue | $ | 652,918 | $ | 653,437 | $ | 1,923,599 | $ | 2,143,707 | ||||||||||
Spectrum lease revenue | 182,186 | 182,186 | 546,559 | 212,551 | ||||||||||||||
Other revenue | 105,288 | - | 122,552 | - | ||||||||||||||
Total operating revenues | 940,392 | 835,623 | 2,592,710 | 2,356,258 | ||||||||||||||
Cost of revenue | ||||||||||||||||||
Sales and service | 906,291 | 283,043 | 1,772,050 | 790,687 | ||||||||||||||
Gross profit | 34,101 | 552,580 | 820,660 | 1,565,571 | ||||||||||||||
Operating expenses | ||||||||||||||||||
General and administrative | 3,843,378 | 3,362,302 | 12,154,625 | 8,285,190 | ||||||||||||||
Sales and support | 1,118,630 | 478,246 | 2,815,312 | 1,167,609 | ||||||||||||||
Product development | 341,129 | 242,823 | 982,226 | 679,577 | ||||||||||||||
Total operating expenses | 5,303,137 | 4,083,371 | 15,952,163 | 10,132,376 | ||||||||||||||
Loss from operations | (5,269,036 | ) | (3,530,791 | ) | (15,131,503 | ) | (8,566,805 | ) | ||||||||||
Interest expense | (932 | ) | - | (932 | ) | (570,737 | ) | |||||||||||
Interest income | 26,151 | 4,927 | 77,664 | 4,927 | ||||||||||||||
Other income | - | - | 1,250 | - | ||||||||||||||
Net loss | $ | (5,243,817 | ) | $ | (3,525,864 | ) | $ | (15,053,521 | ) | $ | (9,132,615 | ) | ||||||
Net loss per common share basic and diluted | $ | (0.36 | ) | $ | (0.28 | ) | $ | (1.07 | ) | $ | (1.00 | ) | ||||||
Weighted-average common shares used to compute basic and diluted net loss per share | 14,375,441 | 12,473,024 | 14,084,506 | 9,103,629 | ||||||||||||||
The table below reconciles Adjusted EBITDA to the Company's GAAP disclosure of net loss.
Three months ended | Nine months ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Adjusted EBITDA: | |||||||||||||||||
Net loss | $ | (5,243,817 | ) | $ | (3,525,864 | ) | $ | (15,053,521 | ) | $ | (9,132,615 | ) | |||||
Interest expense | 932 | - | 932 | 570,737 | |||||||||||||
Depreciation - Cost of revenue | 121,969 | - | 205,155 | - | |||||||||||||
Depreciation and amortization - Operating expenses | 36,481 | 25,306 | 81,743 | 54,526 | |||||||||||||
Stock compensation expense | 1,132,119 | 1,404,202 | 3,587,730 | 4,680,802 | |||||||||||||
Adjusted EBITDA | $ | (3,952,316 | ) | $ | (2,096,356 | ) | $ | (11,177,961 | ) | $ | (3,826,550 | ) | |||||
pdvWireless, Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
December 31, | March 31, | |||||||
2015 | 2015 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 160,676,036 | $ | 119,873,668 | ||||
Accounts receivable, net | 499,002 | 395,172 | ||||||
Prepaid expenses and other current assets | 271,052 | 629,790 | ||||||
Total current assets | 161,446,090 | 120,898,630 | ||||||
Property and equipment | 14,045,721 | 6,384,602 | ||||||
Intangible assets | 101,577,167 | 100,298,444 | ||||||
Capitalized patent costs, net | 224,725 | 220,783 | ||||||
Other assets | 1,603,698 | 25,630 | ||||||
Total assets | $ | 278,897,401 | $ | 227,828,089 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 3,434,999 | $ | 6,467,285 | ||||
Accounts payable - officers | 19,463 | 40,668 | ||||||
Current portion of note payable | 297,203 | - | ||||||
Deferred revenue | 746,517 | 737,664 | ||||||
Total current liabilities | 4,498,182 | 7,245,617 | ||||||
Deferred revenue | 5,829,960 | 6,376,518 | ||||||
Long term portion of note payable | 991,810 | - | ||||||
Total liabilities | 11,319,952 | 13,622,135 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' equity | ||||||||
Preferred Stock, $0.0001 per share, 10,000,000 shares authorized and no shares outstanding at December 31, 2015 and March 31, 2015 | - | - | ||||||
Common Stock, $0.0001 par value per share, 100,000,000 shares authorized and 14,375,466 shares issued and outstanding at December 31, 2015 and 12,530,493 shares issued and outstanding at March 31, 2015 | 1,438 | 1,253 | ||||||
Additional paid-in capital | 324,286,711 | 255,861,880 | ||||||
Accumulated deficit | (56,710,700) | (41,657,179) | ||||||
Total stockholders' equity | 267,577,449 | 214,205,954 | ||||||
Total liabilities and stockholders' equity | $ | 278,897,401 | $ | 227,828,089 | ||||
pdvWireless, Inc. | |||||||||||
Consolidated Statement of Cash Flows | |||||||||||
(Unaudited) | |||||||||||
Nine months ended | |||||||||||
December 31, | |||||||||||
2015 | 2014 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net loss | $ | (15,053,521 | ) | $ | (9,132,615 | ) | |||||
Adjustments to reconcile net loss to net cash (used) provided by operating activities | |||||||||||
Depreciation and amortization | 286,898 | 54,526 | |||||||||
Non-cash compensation expense attributable to stock awards | 3,587,730 | 4,680,802 | |||||||||
Changes in operating assets and liabilities | |||||||||||
Accounts receivable | (103,830 | ) | (55,475 | ) | |||||||
Prepaid expenses and other assets | 138,670 | (651,176 | ) | ||||||||
Accounts payable and accrued expenses | (3,032,286 | ) | 2,416,458 | ||||||||
Accounts payable - officers | (21,205 | ) | (100,455 | ) | |||||||
Accrued interest expense | - | (332,323 | ) | ||||||||
Deferred compensation | - | (361,610 | ) | ||||||||
Deferred revenue | (537,705 | ) | 7,285,457 | ||||||||
Net cash (used) provided by operating activities | (14,735,249 | ) | 3,803,589 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Payment of deposit | - | (13,500,000 | ) | ||||||||
Purchases of intangible assets | (1,347,710 | ) | (76,798,444 | ) | |||||||
Purchases of equipment | (7,940,112 | ) | (1,646,611 | ) | |||||||
Payments for patent costs | (11,847 | ) | (8,709 | ) | |||||||
Net cash used by investing activities | (9,299,669 | ) | (91,953,764 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Net proceeds from Rule 144A Offering | - | 201,922,458 | |||||||||
Net proceeds from follow-on offering | 64,792,220 | - | |||||||||
Proceeds from stock option exercise | 45,066 | - | |||||||||
Payment of notes payable, net | - | (1,088,851 | ) | ||||||||
Proceeds from Motorola investment | - | 10,000,000 | |||||||||
Net cash provided from financing activities | 64,837,286 | 210,833,607 | |||||||||
Net change in cash and cash equivalents | 40,802,368 | 122,683,432 | |||||||||
CASH AND CASH EQUIVALENTS | |||||||||||
Beginning of the period | 119,873,668 | 45,679 | |||||||||
End of the period | $ | 160,676,036 | $ | 122,729,111 | |||||||
Investor relations contacts:
CFO
pdvWireless, Inc.
973-771-0981
Email Contact
Principal
Adam Friedman Associates
917-675-6250
Email Contact
Source: pdvWireless, Inc.