Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - RigNet, Inc. | d389255d8k.htm |
Exhibit 99
|
PRESS RELEASE
FOR IMMEDIATE RELEASE
Contact: Marty Jimmerson
RigNet, Inc.
+1 (281) 674-0699
investor.relations@rig.net
RigNet Announces Second Quarter 2012 Earnings Results
| • | Record quarterly revenue of $33.2 million, an increase of 26.9% over the same quarter last year and an increase of 6.5% over the previous quarter |
| • | Record quarterly Adjusted EBITDA of $10.1 million, an increase of 21.7% over the same quarter last year and an increase of 8.7% over the previous quarter |
| • | Excluding Nessco aquisition costs, income attributable to common stockholders for the quarted ended June 30, 2012 was $3.5 million, or $0.21 per diluted share |
HOUSTON, TX – August 6, 2012 – RigNet, Inc. (NASDAQ: RNET), a leading global provider of remote communication services to the oil and gas industry, today reported quarterly results for the quarter ended June 30, 2012.
Revenue was a record $33.2 million for the second quarter, an increase of 26.9% over the same quarter last year and a 6.5% increase over the previous quarter. Revenue increased by $7.0 million for the three months ended June 30, 2012 as compared to the same period of 2011 due primarily to increasing demand for our services in our offshore operations and continued growth in the U.S. land drilling market. Revenue increased by $2.0 million for the three months ended June 30, 2012 as compared to the previous quarter due primarily to increased demand for our services in our offshore operations.
Adjusted EBITDA was $10.1 million, or 30.4% of revenue, for the second quarter, an increase of 21.7% over the same quarter last year and an increase of 8.7% over the previous quarter. Adjusted EBITDA increased by $1.8 million over the prior year period and $0.8 million over the previous quarter, primarily due to the increased revenue described above partially offset by increased operating costs to support the increase in revenue and costs associated with head count additions and other professional fees.
Net income attributable to common stockholders was $2.9 million, or $0.17 per diluted share, for the second quarter compared to net income attributable to common stockholders of $2.1 million, or $0.13 per diluted share, in the same quarter last year and net income attributable to common stockholders of $2.4 million, or $0.14 per diluted share, in the previous quarter.
Capital expenditures were $4.8 million in the second quarter compared to $5.7 million in the same quarter last year and $6.0 million in the previous quarter.
Mark B. Slaughter, chief executive officer and president, commented, “Our record second quarter results came as a result of favorable demand for our services coupled with solid execution by our global management team. We are very pleased with our strong quarterly results, and the subsequent acquisition of Nessco, as we continue to position the Company for further growth going forward.”
1880 SOUTH DAIRY ASHFORD, SUITE 300 HOUSTON, TEXAS 77077 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 2 of 5
A conference call for investors will be held at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) on Tuesday, August 7, 2012 to discuss RigNet’s 2012 second quarter results. The call may be accessed live over the telephone by dialing (877) 845-0777, or, for international callers, +1 (760) 298-5090. Interested parties may also listen to a simultaneous webcast of the conference call by logging onto RigNet’s website at www.rig.net in the Investors – Webcasts and Presentations section. A replay of the conference call webcast will also be available on our website for approximately thirty days following the call.
Non-GAAP Financial Measures
This press release contains the following non-GAAP measures: Gross Profit and Adjusted EBITDA. Gross Profit and Adjusted EBITDA are financial measures that are not calculated in accordance with generally accepted accounting principles, or GAAP. We refer you to the Company’s most recent 10-K filing for the year ended December 31, 2011 for a more detailed discussion of the uses and limitations of our non-GAAP financial measures.
We define Gross Profit as revenue less cost of revenue. This measure is used to evaluate operating margins and the effectiveness of cost management.
We define Adjusted EBITDA as net income (loss) plus interest expense, income tax expense (benefit), depreciation and amortization, impairment of goodwill, (gain) loss on retirement of property and equipment, change in fair value of derivatives, stock-based compensation and IPO or merger/acquisition costs and related bonuses. Adjusted EBITDA should not be considered as an alternative to net income (loss), operating income (loss) or any other measure of financial performance calculated and presented in accordance with GAAP.
About RigNet
RigNet (NASDAQ: RNET) is a leading global provider of managed communications, networks and collaborative applications dedicated to the oil and gas industry. RigNet provides solutions ranging from fully-managed voice and data networks to more advanced applications that include video conferencing and real-time data services to remote sites in over thirty countries on six continents, effectively spanning the drilling and production industry. RigNet is based in Houston, Texas. For more information, please visit www.rig.net. RigNet is a registered trademark of RigNet, Inc.
Forward Looking Statements
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 – that is, statements related to the future, not past, events. Forward-looking statements are based on the current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words. These forward-looking statements involve certain risks and uncertainties that ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. For further discussion of risks and uncertainties, individuals should refer to RigNet’s SEC filings. RigNet undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
1880 SOUTH DAIRY ASHFORD, SUITE 300 HOUSTON, TEXAS 77077 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 3 of 5
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Unaudited Consolidated Statements of Income Data: |
||||||||||||||||
| Revenue |
$ | 33,240 | $ | 26,197 | $ | 64,450 | $ | 50,664 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Expenses: |
||||||||||||||||
| Cost of revenue (excluding depreciation and amortization) |
15,162 | 11,399 | 29,343 | 22,572 | ||||||||||||
| Depreciation and amortization |
3,806 | 3,600 | 7,734 | 7,112 | ||||||||||||
| Selling and marketing |
729 | 591 | 1,387 | 1,053 | ||||||||||||
| General and administrative |
8,860 | 6,234 | 16,405 | 12,500 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total expenses |
28,557 | 21,824 | 54,869 | 43,237 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
4,683 | 4,373 | 9,581 | 7,427 | ||||||||||||
| Other income (expense), net |
110 | (226 | ) | (151 | ) | (760 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before income taxes |
4,793 | 4,147 | 9,430 | 6,667 | ||||||||||||
| Income tax expense |
(1,932 | ) | (1,946 | ) | (4,075 | ) | (4,443 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | 2,861 | $ | 2,201 | $ | 5,355 | $ | 2,224 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income Per Share - Basic and Diluted |
||||||||||||||||
| Net income attributable to RigNet, Inc. common stockholders |
$ | 2,853 | $ | 2,120 | $ | 5,265 | $ | 2,095 | ||||||||
| Net income per share attributable to RigNet, Inc. common stockholders, basic |
$ | 0.18 | $ | 0.14 | $ | 0.34 | $ | 0.14 | ||||||||
| Net income per share attributable to RigNet, Inc. common stockholders, diluted |
$ | 0.17 | $ | 0.13 | $ | 0.31 | $ | 0.12 | ||||||||
| Weighted average shares outstanding, basic |
15,566 | 15,420 | 15,515 | 15,331 | ||||||||||||
| Weighted average shares outstanding, diluted |
16,977 | 16,894 | 16,939 | 16,768 | ||||||||||||
| Unaudited Non-GAAP Data: |
||||||||||||||||
| Gross Profit |
$ | 18,078 | $ | 14,798 | $ | 35,107 | $ | 28,092 | ||||||||
| Gross Profit margin |
54.4 | % | 56.5 | % | 54.5 | % | 55.4 | % | ||||||||
| Adjusted EBITDA |
$ | 10,090 | $ | 8,289 | $ | 19,373 | $ | 14,884 | ||||||||
| Adjusted EBITDA margin |
30.4 | % | 31.6 | % | 30.1 | % | 29.4 | % | ||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Reconciliation of Net Income to Adjusted EBITDA: |
||||||||||||||||
| Net income |
$ | 2,861 | $ | 2,201 | $ | 5,355 | $ | 2,224 | ||||||||
| Interest expense |
129 | 349 | 316 | 795 | ||||||||||||
| Depreciation and amortization |
3,806 | 3,600 | 7,734 | 7,112 | ||||||||||||
| Gain on retirement of property and equipment |
(1 | ) | (104 | ) | (51 | ) | (110 | ) | ||||||||
| Stock-based compensation |
701 | 297 | 1,282 | 420 | ||||||||||||
| Acquisition costs |
662 | — | 662 | — | ||||||||||||
| Income tax expense |
1,932 | 1,946 | 4,075 | 4,443 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA (non-GAAP measure) |
$ | 10,090 | $ | 8,289 | $ | 19,373 | $ | 14,884 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
1880 SOUTH DAIRY ASHFORD, SUITE 300 HOUSTON, TEXAS 77077 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 4 of 5
| June 30, 2012 |
December 31, 2011 |
|||||||
| (in thousands) | ||||||||
| Unaudited Consolidated Balance Sheet Data: |
||||||||
| Cash and cash equivalents |
$ | 51,999 | $ | 53,106 | ||||
| Total assets |
142,977 | 140,922 | ||||||
| Current maturities of long-term debt |
8,746 | 8,735 | ||||||
| Long-term debt |
10,409 | 14,785 | ||||||
| Six Months Ended June 30, | ||||||||
| 2012 | 2011 | |||||||
| (in thousands) | ||||||||
| Unaudited Consolidated Statements of Cash Flows Data: |
||||||||
| Cash and cash equivalents, January 1, |
$ | 53,106 | $ | 50,435 | ||||
| Net cash provided by operating activities |
13,794 | 9,025 | ||||||
| Net cash provided by (used in) investing activities |
(10,505 | ) | 1,011 | |||||
| Net cash provided by (used in) financing activities |
(4,175 | ) | 177 | |||||
| Changes in foreign currency translation |
(221 | ) | 671 | |||||
|
|
|
|
|
|||||
| Cash and cash equivalents, June 30, |
$ | 51,999 | $ | 61,319 | ||||
|
|
|
|
|
|||||
| 1st Quarter 2011 |
2nd Quarter 2011 |
3rd Quarter 2011 |
4th Quarter 2011 |
1st Quarter 2012 |
2nd Quarter 2012 |
|||||||||||||||||||
| Selected Operational Data: |
||||||||||||||||||||||||
| Eastern Hemisphere |
||||||||||||||||||||||||
| Drilling rigs (1) |
143 | 141 | 138 | 147 | 144 | 148 | ||||||||||||||||||
| Other sites (2) |
131 | 160 | 172 | 187 | 198 | 204 | ||||||||||||||||||
| Western Hemisphere |
||||||||||||||||||||||||
| Drilling rigs (1) |
80 | 78 | 79 | 81 | 89 | 86 | ||||||||||||||||||
| Other sites (2) |
159 | 138 | 140 | 144 | 135 | 130 | ||||||||||||||||||
| U.S. Land |
||||||||||||||||||||||||
| Drilling rigs |
323 | 331 | 330 | 338 | 323 | 308 | ||||||||||||||||||
| Other sites (3) |
82 | 106 | 132 | 157 | 160 | 182 | ||||||||||||||||||
| (1) | Eastern and Western Hemisphere include jack up, semi-submersible and drillship rigs |
| (2) | Includes production facilities, energy support vessels, international land rigs, remote offices and supply bases |
| (3) | Includes completion sites, production sites, man-camps, remote offices and supply bases |
1880 SOUTH DAIRY ASHFORD, SUITE 300 HOUSTON, TEXAS 77077 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 5 of 5
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Eastern Hemisphere: |
||||||||||||||||
| Revenue |
$ | 21,071 | $ | 16,503 | $ | 40,438 | $ | 31,620 | ||||||||
| Cost of revenue (excluding depreciation and amortization) |
8,670 | 6,202 | 16,264 | 11,879 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross Profit (non-GAAP measure) |
12,401 | 10,301 | 24,174 | 19,741 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross Profit margin |
58.9 | % | 62.4 | % | 59.8 | % | 62.4 | % | ||||||||
| Depreciation and amortization |
2,064 | 2,050 | 4,107 | 4,052 | ||||||||||||
| Selling, general and administrative |
2,367 | 2,140 | 4,189 | 4,168 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
$ | 7,970 | $ | 6,111 | $ | 15,878 | $ | 11,521 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA (non-GAAP measure) |
$ | 10,334 | $ | 8,153 | $ | 20,043 | $ | 15,467 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA margin |
49.0 | % | 49.4 | % | 49.6 | % | 48.9 | % | ||||||||
| Western Hemisphere: |
||||||||||||||||
| Revenue |
$ | 7,199 | $ | 4,978 | $ | 13,934 | $ | 9,935 | ||||||||
| Cost of revenue (excluding depreciation and amortization) |
3,434 | 2,309 | 6,647 | 4,896 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross Profit (non-GAAP measure) |
3,765 | 2,669 | 7,287 | 5,039 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross Profit margin |
52.3 | % | 53.6 | % | 52.3 | % | 50.7 | % | ||||||||
| Depreciation and amortization |
1,247 | 1,149 | 2,647 | 2,257 | ||||||||||||
| Selling, general and administrative |
1,221 | 799 | 1,937 | 1,516 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
$ | 1,297 | $ | 721 | $ | 2,703 | $ | 1,266 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA (non-GAAP measure) |
$ | 2,453 | $ | 1,899 | $ | 5,403 | $ | 3,568 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA margin |
34.1 | % | 38.1 | % | 38.8 | % | 35.9 | % | ||||||||
| U.S. Land: |
||||||||||||||||
| Revenue |
$ | 4,970 | $ | 4,713 | $ | 10,078 | $ | 9,106 | ||||||||
| Cost of revenue (excluding depreciation and amortization) |
2,159 | 2,373 | 4,600 | 4,644 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross Profit (non-GAAP measure) |
2,811 | 2,340 | 5,478 | 4,462 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross Profit margin |
56.6 | % | 49.6 | % | 54.4 | % | 49.0 | % | ||||||||
| Depreciation and amortization |
500 | 452 | 980 | 909 | ||||||||||||
| Selling, general and administrative |
866 | 720 | 1,789 | 1,469 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
$ | 1,445 | $ | 1,168 | $ | 2,709 | $ | 2,084 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA (non-GAAP measure) |
$ | 1,945 | $ | 1,621 | $ | 3,689 | $ | 2,993 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA margin |
39.1 | % | 34.4 | % | 36.6 | % | 32.9 | % | ||||||||
| NOTE: | Consolidated balances include the three segments above along with corporate activities and intercompany eliminations. |
###
1880 SOUTH DAIRY ASHFORD, SUITE 300 HOUSTON, TEXAS 77077 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net