pdvWireless Reports Third Quarter Results
2/06/18
Financial Results
Revenue for the Company's third fiscal quarter ended
The net loss for the Company's third fiscal quarter was (
Revenue for the nine months ended
The net loss for the nine months ended
The Company's revenue for the three and nine months ended
Cost of revenue for the three months and nine months ended
Total operating expenses of
For the three months ended
Adjusted EBITDA for the third quarter ended
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 focused on utilizing its spectrum assets to develop and offer next generation network and mobile communication solutions to critical infrastructure and enterprise customers. It is the largest holder of licensed nationwide spectrum in the 900 MHz band in
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, depreciation – cost of revenue, 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 from, 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. This 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 regulatory status and timing of the Company's initiatives and related activities involving the FCC, the Company's spectrum and other business initiatives and opportunities and the Company's DispatchPlus business and its sales and marketing initiatives. 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: (i) the Company's spectrum initiatives and its related activities involving the FCC that the Company is pursuing with the goal of modernizing and realigning the 900 MHz spectrum band to increase its usability and capacity, including the potential future deployment of broadband and other advanced technologies and services, may not be successful on a timely basis or at all, and may require significant time and attention from its senior management team and the expenditure of significant resources; (ii) the Company may not be successful in identifying, developing and commercializing network and mobile communication solutions utilizing its current and future spectrum and commercially available technologies; (iii) the Company has a limited operating history with respect to its recently launched DispatchPlus business; (iv) the Company has had net losses each year since its inception and may not achieve or maintain profitability in the future; (v) the Company's indirect sales model may not be successful; (vi) the market for the Company's DispatchPlus service may not prove to be as large as originally anticipated and/or it may be more difficult for the Company to obtain customers for its DispatchPlus service than it initially expected; (vii) the wireless communication industry is highly competitive and the Company may not be able to compete successfully; and (viii) 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:
Natasha Vecchiarelli
Director of Corporate Communications
pdvWireless, Inc.
973-531-4397
nvecchiarelli@pdvwireless.com
pdvWireless, Inc. |
||||||||||||
Consolidated Statements of Operations |
||||||||||||
(dollars in thousands, except share data) |
||||||||||||
(Unaudited) |
||||||||||||
Three months ended |
Nine months ended |
|||||||||||
December 31, |
December 31, |
|||||||||||
2017 |
2016 |
2017 |
2016 |
|||||||||
Operating revenues |
||||||||||||
Service revenue |
$ |
1,232 |
$ |
976 |
$ |
3,500 |
$ |
2,627 |
||||
Spectrum lease revenue |
182 |
182 |
547 |
547 |
||||||||
Other revenue |
187 |
177 |
532 |
349 |
||||||||
Total operating revenues |
1,601 |
1,335 |
4,579 |
3,523 |
||||||||
Cost of revenue |
||||||||||||
Sales and service |
2,016 |
1,832 |
5,628 |
5,091 |
||||||||
Gross loss |
(415) |
(497) |
(1,049) |
(1,568) |
||||||||
Operating expenses |
||||||||||||
General and administrative |
5,464 |
4,847 |
15,340 |
18,069 |
||||||||
Sales and support |
1,619 |
1,421 |
5,009 |
3,857 |
||||||||
Product development |
592 |
539 |
1,772 |
1,734 |
||||||||
Total operating expenses |
7,675 |
6,807 |
22,121 |
23,660 |
||||||||
Loss from operations |
(8,090) |
(7,304) |
(23,170) |
(25,228) |
||||||||
Interest expense |
(1) |
(1) |
(2) |
(4) |
||||||||
Interest income |
197 |
25 |
494 |
73 |
||||||||
Other income (expense) |
(9) |
(8) |
(29) |
(13) |
||||||||
Loss before income taxes |
(7,903) |
(7,288) |
(22,707) |
(25,172) |
||||||||
Income tax benefit |
(2,181) |
— |
(875) |
— |
||||||||
Net loss |
$ |
(5,722) |
$ |
(7,288) |
$ |
(21,832) |
$ |
(25,172) |
||||
Net loss per common share basic and diluted |
$ |
(0.40) |
$ |
(0.51) |
$ |
(1.51) |
$ |
(1.75) |
||||
Weighted-average common shares used to compute basic |
14,451,313 |
14,396,212 |
14,445,627 |
14,385,002 |
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, |
|||||||||||
2017 |
2016 |
2017 |
2016 |
|||||||||
Adjusted EBITDA: |
||||||||||||
Net Loss |
$ |
(5,722) |
$ |
(7,288) |
$ |
(21,832) |
$ |
(25,172) |
||||
Income tax benefit |
(2,181) |
— |
(875) |
— |
||||||||
Interest income (expense) - net |
(196) |
(24) |
(492) |
(69) |
||||||||
Other income (expense) - net |
9 |
8 |
29 |
13 |
||||||||
Depreciation - Cost of revenue |
659 |
540 |
1,913 |
1,486 |
||||||||
Depreciation and amortization - Operating expenses |
70 |
45 |
190 |
138 |
||||||||
Stock-based compensation expense |
1,483 |
1,198 |
3,998 |
3,637 |
||||||||
ADJUSTED EBITDA |
$ |
(5,878) |
$ |
(5,521) |
$ |
(17,069) |
$ |
(19,967) |
pdvWireless, Inc. |
||||||
Consolidated Balance Sheets |
||||||
(dollars in thousands, except for share data) |
||||||
December 31, |
March 31, |
|||||
2017 |
2017 |
|||||
(Unaudited) |
||||||
ASSETS |
||||||
Current Assets |
||||||
Cash and cash equivalents |
$ |
104,244 |
$ |
124,083 |
||
Accounts receivable, net of allowance for doubtful accounts of $63 and $53 |
764 |
636 |
||||
Inventory |
125 |
128 |
||||
Prepaid expenses and other current assets |
1,434 |
874 |
||||
Total current assets |
106,567 |
125,721 |
||||
Property and equipment |
13,356 |
14,509 |
||||
Intangible assets |
106,606 |
104,676 |
||||
Capitalized patent costs, net |
201 |
210 |
||||
Other assets |
578 |
370 |
||||
Total assets |
$ |
227,308 |
$ |
245,486 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Current liabilities |
||||||
Accounts payable and accrued expenses |
$ |
3,949 |
$ |
3,399 |
||
Accounts payable - officers |
40 |
36 |
||||
Current portion of note payable |
497 |
497 |
||||
Deferred revenue |
807 |
789 |
||||
Total current liabilities |
5,293 |
4,721 |
||||
Noncurrent liabilities |
||||||
Deferred revenue |
4,449 |
5,033 |
||||
Deferred income taxes |
5,623 |
6,498 |
||||
Other liabilities |
2,135 |
1,338 |
||||
Total liabilities |
17,500 |
17,590 |
||||
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 |
1 |
1 |
||||
Additional paid-in capital |
334,310 |
330,566 |
||||
Accumulated deficit |
(124,503) |
(102,671) |
||||
Total stockholders' equity |
209,808 |
227,896 |
||||
Total liabilities and stockholders' equity |
$ |
227,308 |
$ |
245,486 |
pdvWireless, Inc. |
||||||
Consolidated Statement of Cash Flows |
||||||
(dollars in thousands) |
||||||
(Unaudited) |
||||||
Nine months |
||||||
December 31, |
||||||
2017 |
2016 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||
Net loss |
$ |
(21,832) |
$ |
(25,172) |
||
Adjustments to reconcile net loss to net cash used by operating activities |
||||||
Depreciation and amortization |
2,103 |
1,626 |
||||
Non-cash compensation expense attributable to stock awards |
3,998 |
3,637 |
||||
Deferred income taxes |
(875) |
— |
||||
Bad debt expense |
26 |
43 |
||||
Loss on disposal of assets |
36 |
— |
||||
Changes in operating assets and liabilities |
||||||
Accounts receivable |
(153) |
(384) |
||||
Inventory |
3 |
49 |
||||
Prepaid expenses and other assets |
(769) |
(327) |
||||
Accounts payable and accrued expenses |
550 |
51 |
||||
Accounts payable - officers |
4 |
(28) |
||||
Deferred revenue |
(565) |
(598) |
||||
Other liabilities |
568 |
502 |
||||
Net cash flows used by operating activities |
(16,906) |
(20,601) |
||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||
Purchases of intangible assets |
(1,930) |
(504) |
||||
Purchases of equipment |
(749) |
(1,671) |
||||
Payments for patent costs |
— |
(1) |
||||
Net cash used by investing activities |
(2,679) |
(2,176) |
||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||
Proceeds from stock option exercise |
234 |
— |
||||
Taxes withheld and paid on employee stock awards |
(488) |
— |
||||
Net cash used by financing activities |
(254) |
— |
||||
Net change in cash and cash equivalents |
(19,839) |
(22,777) |
||||
CASH AND CASH EQUIVALENTS |
||||||
Beginning of the period |
124,083 |
153,463 |
||||
End of the period |
$ |
104,244 |
$ |
130,686 |
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SOURCE pdvWireless, Inc.