pdvWireless Reports Second Quarter Results
11/03/16
WOODLAND PARK, N.J.,
"As we enter the second half of our fiscal year, we continue to build upon our core initiatives and further define and enhance our position for long-term growth," said
During the second fiscal quarter, the Company continued to see an increase in its DispatchPlus sales activity across its initial seven markets, and remains focused on enhancing its service offerings and further developing its business to meet its sales goals.
The Company's Joint Petition for Rulemaking, filed together with the
Additionally, as previously disclosed, the Company received written notice from the
Financial Results
Revenue for the Company's second fiscal quarter ended
Revenue for the six months ended
The Company's revenues for the three and six months ended
The operating results for the three and six months ended
Cost of revenue for the three months ended
Operating expenses for the three months ended
- General and administrative expenses increased by
$0.9 million , or 19%, for the three months endedSeptember 30, 2016 and increased by$4.9 million , or 59%, for the six months endedSeptember 30, 2016 . The increases resulted primarily from$1.1 million and$4.3 million for the three and six month periods, respectively, for consulting services related to the Company's strategic initiatives, including principally the FirstNet bid process. The additional increase for the six months endedSeptember 30, 2016 resulted from$0.5 million for increased headcount and related costs. - Sales and support expenses increased by
$0.3 million , or 38%, and$0.7 million , or 44%, for the three and six months endedSeptember 30, 2016 . The increases were driven primarily by an increase in headcount and related costs of$0.2 million and$0.4 million , respectively, along with$0.1 million and$0.3 million , respectively, for indirect commissions provided to the Company's third-party sales representatives to support its DispatchPlus business.
Adjusted EBITDA for this year's second quarter was a negative (
Strong Cash Position
The Company has a strong cash position, with
Conference Call
The Company will host a conference call at
About pdvWireless
pdvWireless, Inc. is a private wireless communications carrier and provider of mobile workforce management solutions that increase the productivity of field-based workers and the efficiency of their dispatch and call center operations. pdvWireless has launched and is operating private push-to-talk networks in seven major markets within
pdvWireless' 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, other income (expense)-net, income taxes and stock-based compensation. The Company has included below a reconciliation of net loss, the most directly comparable GAAP financial measure, to Adjusted EBITDA. The Company's management uses Adjusted EBITDA to evaluate the Company's performance and provides this financial measure to investors as a supplement to the Company's reported results because management believes this information provides additional insight into the Company's operating performance by disregarding certain nonrecurring or non-cash items or items that are not reflective of the day-to-day offering of its services. Adjusted EBITDA should not be considered in isolation, as a substitute for, or as superior to, financial measures calculated in accordance with GAAP, and the Company's financial results calculated in accordance with GAAP and any reconciliation to those financial statements should be carefully evaluated. The non-GAAP financial measure used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts are forward-looking statements as defined under the Federal securities laws. These forward-looking statements include statements regarding the Company's DispatchPlus business and its sales and marketing initiatives, the regulatory status and timing of the Company's Joint Petition for Rulemaking and the Company's spectrum and other initiatives and opportunities. Any forward-looking statements contained herein are based on the Company's current expectations, but are subject to a number of risks and uncertainties that could cause its actual future results to differ materially from its current expectations or those implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: the Company has a limited operating history with respect to its recently launched DispatchPlus business; the Company has had net losses each year since its inception and may not achieve or maintain profitability in the future; the Company's indirect sales model may not be successful; customers may not adopt the Company's technology or service offerings as quickly as anticipated or in sufficient numbers; the Company's spectrum and other initiatives and opportunities, including its Joint Petition for Rulemaking, may not be successful on a timely basis or at all, may cost more than anticipated, and may continue to require significant time and attention from its senior management team and the expenditure of significant resources; the wireless communication industry is highly competitive and the Company may not be able to compete successfully; and government regulation could adversely affect the Company's business and prospects. These and other factors that may affect the Company's future results or operations are identified and described in more detail in its filings with the
Investor relations contacts: |
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Natasha Vecchiarelli |
Joele Frank, Wilkinson Brimmer Katcher |
|
Investor Relations Manager |
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pdvWireless, Inc. |
Joe Millsap |
|
973-531-4397 |
415-869-3950 |
|
Adam Pollack |
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212-355-4449 |
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pdvWireless, Inc. |
||||||||||||
Consolidated Statements of Operations |
||||||||||||
Three months ended |
Six months ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||
Operating revenues |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||||
Service revenue |
$ |
885,271 |
$ |
622,019 |
$ |
1,650,576 |
$ |
1,270,681 |
||||
Spectrum lease revenue |
182,186 |
182,186 |
364,372 |
364,372 |
||||||||
Other revenue |
74,050 |
7,253 |
172,341 |
17,265 |
||||||||
Total operating revenues |
1,141,507 |
811,458 |
2,187,289 |
1,652,318 |
||||||||
Cost of revenue |
||||||||||||
Sales and service |
1,674,941 |
490,585 |
3,258,722 |
865,759 |
||||||||
Gross profit (loss) |
(533,434) |
320,873 |
(1,071,433) |
786,559 |
||||||||
Operating expenses |
||||||||||||
General and administrative |
5,476,566 |
4,588,841 |
13,222,566 |
8,311,247 |
||||||||
Sales and support |
1,219,744 |
885,007 |
2,435,985 |
1,696,682 |
||||||||
Product development |
621,923 |
336,200 |
1,194,844 |
641,097 |
||||||||
Total operating expenses |
7,318,233 |
5,810,048 |
16,853,395 |
10,649,026 |
||||||||
Loss from operations |
(7,851,667) |
(5,489,175) |
(17,924,828) |
(9,862,467) |
||||||||
Interest expense |
(1,363) |
— |
(2,727) |
— |
||||||||
Interest income |
25,529 |
29,293 |
48,058 |
51,513 |
||||||||
Other income (expense) |
(4,793) |
1,250 |
(4,793) |
1,250 |
||||||||
Net loss |
$ |
(7,832,294) |
$ |
(5,458,632) |
$ |
(17,884,290) |
$ |
(9,809,704) |
||||
Net loss per common share basic and diluted |
$ |
(0.54) |
$ |
(0.38) |
$ |
(1.24) |
$ |
(0.70) |
||||
Weighted-average common shares used to compute |
14,383,224 |
14,379,082 |
14,379,366 |
13,938,243 |
The table below reconciles Adjusted EBITDA to the Company's GAAP disclosure of net loss.
Three months ended |
Six months ended |
|||||||||||
September 30, |
September 30, |
|||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||||||
Adjusted EBITDA: |
||||||||||||
Net loss |
$ |
(7,832,294) |
$ |
(5,458,632) |
$ |
(17,884,290) |
$ |
(9,809,704) |
||||
Interest income (expense) - net |
(24,166) |
(29,293) |
(45,331) |
(51,513) |
||||||||
Other income (expense) - net |
4,793 |
(1,250) |
4,793 |
(1,250) |
||||||||
Depreciation - Cost of revenue |
504,824 |
50,236 |
948,371 |
83,185 |
||||||||
Depreciation and amortization - Operating expenses |
49,920 |
29,123 |
93,079 |
45,263 |
||||||||
Stock-based compensation expense |
1,073,840 |
1,105,976 |
2,439,423 |
2,455,611 |
||||||||
Adjusted EBITDA |
$ |
(6,223,083) |
$ |
(4,303,840) |
$ |
(14,443,955) |
$ |
(7,278,408) |
||||
pdvWireless, Inc. |
||||||
Consolidated Balance Sheets |
||||||
September 30, |
March 31, |
|||||
2016 |
2016 |
|||||
(Unaudited) |
||||||
ASSETS |
||||||
Current Assets |
||||||
Cash and cash equivalents |
$ |
136,958,632 |
$ |
153,462,865 |
||
Accounts receivable, net of allowance for doubtful accounts |
652,564 |
528,283 |
||||
Inventory |
37,984 |
93,203 |
||||
Prepaid expenses and other current assets |
547,879 |
906,952 |
||||
Total current assets |
138,197,059 |
154,991,303 |
||||
Property and equipment, net |
14,760,039 |
15,119,766 |
||||
Intangible assets |
104,427,183 |
103,655,459 |
||||
Capitalized patent costs, net |
217,005 |
222,359 |
||||
Other assets |
328,346 |
60,073 |
||||
Total assets |
$ |
257,929,632 |
$ |
274,048,960 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Current liabilities |
||||||
Accounts payable and accrued expenses |
$ |
2,954,924 |
$ |
3,780,697 |
||
Accounts payable - officers |
18,808 |
44,159 |
||||
Current portion of note payable |
494,545 |
494,545 |
||||
Deferred revenue |
791,375 |
744,605 |
||||
Total current liabilities |
4,259,652 |
5,064,006 |
||||
Long-term portion of note payable |
497,265 |
497,265 |
||||
Deferred revenue, net of current portion |
5,421,159 |
5,647,773 |
||||
Other liabilities |
1,011,043 |
654,536 |
||||
Total liabilities |
11,189,119 |
11,863,580 |
||||
Commitments and contingencies |
||||||
Stockholders' equity |
||||||
Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized |
— |
— |
||||
Common stock, $0.0001 par value per share, 100,000,000 shares authorized |
1,441 |
1,438 |
||||
Additional paid-in capital |
328,108,508 |
325,669,088 |
||||
Accumulated deficit |
(81,369,436) |
(63,485,146) |
||||
Total stockholders' equity |
246,740,513 |
262,185,380 |
||||
Total liabilities and stockholders' equity |
$ |
257,929,632 |
$ |
274,048,960 |
pdvWireless, Inc. |
||||||
Consolidated Statement of Cash Flows |
||||||
(Unaudited) |
||||||
Six months ended |
||||||
September 30, |
||||||
2016 |
2015 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||
Net loss |
$ |
(17,884,290) |
$ |
(9,809,704) |
||
Adjustments to reconcile net loss to net cash used by operating activities |
||||||
Depreciation and amortization |
1,041,450 |
128,448 |
||||
Stock-based compensation expense |
2,439,423 |
2,455,611 |
||||
Bad debt expense |
13,727 |
(229) |
||||
Changes in operating assets and liabilities |
||||||
Accounts receivable |
(138,008) |
(4,065) |
||||
Inventory |
55,219 |
— |
||||
Prepaid expenses and other assets |
90,800 |
95,515 |
||||
Accounts payable and accrued expenses |
(825,773) |
(2,717,517) |
||||
Accounts payable - officers |
(25,351) |
1,617 |
||||
Deferred revenue |
(393,319) |
(356,198) |
||||
Other liabilities |
336,938 |
139,597 |
||||
Net cash flows used by operating activities |
(15,289,184) |
(10,066,925) |
||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||
Purchases of intangible assets |
(503,491) |
(1,141,986) |
||||
Purchases of equipment |
(710,497) |
(4,211,917) |
||||
Payments for patent costs |
(1,061) |
(5,640) |
||||
Net cash used by investing activities |
(1,215,049) |
(5,359,543) |
||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||
Net proceeds from follow-on offering |
— |
64,792,220 |
||||
Proceeds from option exercise |
— |
40,001 |
||||
Net cash provided from financing activities |
— |
64,832,221 |
||||
Net change in cash and cash equivalents |
(16,504,233) |
49,405,753 |
||||
CASH AND CASH EQUIVALENTS |
||||||
Beginning of the period |
153,462,865 |
119,873,668 |
||||
End of the period |
$ |
136,958,632 |
$ |
169,279,421 |
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SOURCE pdvWireless, Inc.