Attached files
| file | filename |
|---|---|
| 8-K - 8-K - RigNet, Inc. | rnet-8k_20201105.htm |
Exhibit 99.1
|
PRESS RELEASE |
FOR IMMEDIATE RELEASE |
RigNet Announces Third Quarter 2020 Earnings Results
HOUSTON – November 5, 2020 – RigNet, Inc. (NASDAQ: RNET, the “Company”), a leading provider of ultra-secure, intelligent networking solutions and specialized applications, announced its results for the quarter ended September 30, 2020.
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• |
Third quarter 2020 revenue of $48.7 million, net loss of $5.5 million or $0.25 per share |
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• |
Revenue decreased by 8.7% to $48.7 million compared to prior quarter |
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• |
Adjusted EBITDA decreased by 22.3% to $7.5 million compared to prior quarter |
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Managed Communications Services (MCS) Sites served decreased 3.2% to 1,190 compared to the prior quarter |
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System Integration project backlog of $12.4 million |
“RigNet’s gross margin grew in the third quarter even as our customers continued to battle the impact of reduced commodity demand due to COVID-19,” said Steven Pickett, Chief Executive Officer and President. “We continue to see robust interest in our solutions across our segments and delivered some needle-moving wins in our core MCS business that will begin to add revenue late this year and reach full contribution in the second quarter of 2021. Our strategy of moving “up the stack” is paying off and our ongoing investment in Apps & IoT has differentiated RigNet from our competitors, enabling us to increase market share both in offshore drilling rigs and Floating Production, Storage, and Offtake vessels. We continue to show operational discipline by maintaining tight controls over both operating and back-office costs, as well as capital spending.”
Quarterly revenue was $48.7 million, a decrease of $4.7 million, or 8.7%, compared to $53.4 million in the prior quarter and a decrease of $12.3 million, or 20.1%, compared to $61.0 million in the third quarter 2019. Compared to the second quarter 2020, Managed Communications Services (MCS) revenue decreased by $2.2 million, or 6.4%, due to a decrease in site count and new site delays compared to prior quarter. Apps & IoT revenue decreased by $0.4 million, or 5.0%, primarily due to lower bandwidth usage in IoT. Systems Integration (SI) revenue decreased by $2.0 million, or 19.5%, primarily due to the timing of projects. Compared to the third quarter of 2019, MCS revenue decreased by $10.1 million compared to third quarter 2019 due to decreased site counts including rig stacking, and lower equipment sales. Apps & IoT revenue decreased by $0.9 million, or 9.7%, primarily due to lower equipment sales and bandwidth usage in IoT. SI revenue decreased by $1.3 million or 13.0%, compared to the third quarter of 2019 primarily due to differences in the timing on certain projects.
15115 PARK ROW BLVD, SUITE 300, HOUSTON, TEXAS 77084-4947 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 2 of 11
Net loss attributable to common stockholders in the third quarter of 2020 was $5.5 million, or $0.25 per share, compared to net loss attributable to common stockholders of $4.3 million, or $0.21 per share, in the second quarter of 2020 and net loss attributable to common stockholders of $0.5 million, or $0.02 per share, in the third quarter of 2019. The net loss in the third quarter of 2020 included a one-time, non-cash impairment charge on certain intangible assets of $3.8 million. Excluding this charge, net loss in the third quarter of 2020 was $1.7 million or $0.08 per share.
Adjusted EBITDA, a non-GAAP measure defined and reconciled to GAAP net loss (as described below), was $7.5 million, a decrease of 22.3% compared to $9.7 million in the second quarter of 2020 and a decrease of 31.6% compared to $11.0 million in the third quarter of 2019.
Capital expenditures for the three months ending September 30, 2020 totaled $2.0 million compared to $3.1 million for the three months ending June 30, 2020 and $5.9 million for the quarter ending September 30, 2019. Capital expenditures for the nine months ending September 30, 2020 totaled $8.8 million compared to $17.5 million for the nine months ending September 30, 2019. After accounting for accrued capital expenditures, capital expenditures on a cash basis were $2.1 million and $3.3 million in the quarters ended September 30, 2020 and June 30, 2020, respectively. Capital expenditures on cash basis was $10.7 million for the nine months ended September 30, 2020.
Contracting and Operational Update
In October 2020, RigNet announced it has been awarded a multi-year contract with another premier offshore drilling contractors to provide fully managed communications services and global satellite access to its entire global drilling fleet. The new contract expands the already existing services which include RigNet’s machine learning platform, Intelie, and other over the top applications, intelligence, and network security solutions that enable the digital transformation of business operations across the energy value chain, including in some of the harshest offshore environments imaginable.
Also, in October 2020, RigNet secured a multi-year contract to significantly expand existing MCS services with a premier operator of Floating Production, Storage, and Offtake (FPSO) vessels whereby RigNet will provide a fully managed end-to-end architecture of satellite and terrestrial networks.
15115 PARK ROW BLVD, SUITE 300, HOUSTON, TEXAS 77084-4947 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 3 of 11
MCS Site count in the third quarter 2020 decreased by 3.2% to 1,190 compared to 1,229 in the second quarter 2020 and decreased by 14.1% compared to 1,386 in the third quarter 2019.
Project backlog (using costs to costs accounting, formerly known as percentage of completion accounting) was $12.4 million in the third quarter 2020 and $15.9 million in the second quarter 2020 and was $35.9 million in the third quarter 2019.
Additional Detail
In the third quarter 2020, the Company recorded a non-cash intangible assets impairment charge of $3.8 million as a result of the carrying amounts on certain intangible assets which were in excess of their recoverable value. Additionally, the Company recorded $0.1 million in one-time costs directly related to COVID-19 pandemic, such as costs associated with cleaning, testing, quarantine of employees, and modifications to our Gulf of Mexico microwave network, and $0.1 million in merger and acquisition costs. As of September 30, 2020, the Consolidated Leverage Ratio was 2.97 and Consolidated Fixed Charge Coverage Ratio was 2.13. In the second quarter 2020, the Company recorded $3.9 million increase in the fair value of earn-out/contingent consideration related to Intelie, $0.7 million in one-time costs directly related to COVID-19 pandemic, such as costs associated with cleaning, testing, quarantine of employees, and modifications to our Gulf of Mexico microwave network, $0.3 million in executive departure costs, and $0.1 million in merger and acquisition costs. In the quarter ended September 30, 2019, the Company recorded $0.2 million in restructuring costs associated with consolidating three legacy facilities into our new Lafayette Louisiana office and a credit of $0.4 million in GX dispute Phase II costs.
Earnings Call Information
An Earnings Call for investors will be held at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) on Friday, November 6, 2020, to discuss RigNet’s third quarter 2020 results. The call may be accessed live over the telephone by dialing +1 (877) 870-4263, or, for international callers, +1 (412) 317-0790. 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.
15115 PARK ROW BLVD, SUITE 300, HOUSTON, TEXAS 77084-4947 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 4 of 11
RigNet (NASDAQ: RNET) delivers advanced software and communications infrastructure that allow our customers to realize the business benefits of digital transformation. With world-class, ultra-secure solutions spanning global IP connectivity, bandwidth-optimized OTT applications, IIoT big data enablement, and industry-leading machine learning analytics, RigNet supports the full evolution of digital enablement, empowering businesses to respond faster to high priority issues, mitigate the risk of operational disruption, and maximize their overall financial performance. RigNet is headquartered in Houston, Texas with operations around the world.
For more information on RigNet, 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 future, not past, events. Opinions, expectations with respect to conditions in the oil and gas industry, customer perceptions of value, entry into new customer contracts, growth prospects, and the one-time nature charges are examples of forward-looking statements in this press release. Forward-looking statements are based on 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, including the expected benefits of acquiring and integrating other businesses, and often contain words such as “anticipate,” “believe,” “intend,” “will,” “expect,” “plan” or other similar words. These forward-looking statements involve certain risks and uncertainties, including those risks set forth in Item 1A – Risk Factors of the Company’s most recent 10-K filing, and Item 1A- Risk Factors of the Company’s 10-Q filing for the quarter ended March 31, 2020, filed with the SEC on Monday, May 11, 2020, and 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.
Non-GAAP Financial Measure
This press release contains the non-GAAP measure Adjusted EBITDA, a measure we believe is useful to investors as a supplemental measure to evaluate overall operating performance and is an integral component of financial covenant ratios in our credit agreement. Adjusted EBITDA is a financial measure that is not calculated in accordance with generally accepted accounting principles, or GAAP. We refer you to the Company’s Annual Report on Form 10-K for the year
15115 PARK ROW BLVD, SUITE 300, HOUSTON, TEXAS 77084-4947 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 5 of 11
ended December 31, 2019, filed with the SEC on Wednesday, March 11th, 2020, for a more detailed discussion of the uses and limitations of Adjusted EBITDA.
We define Adjusted EBITDA as net loss plus interest expense; income tax expense (benefit); depreciation and amortization; impairment of goodwill, intangibles, property, plant and equipment; (gain) loss on sales of property, plant and equipment, net of retirements; change in fair value of earn-outs and contingent consideration; stock-based compensation; mergers and acquisitions costs; executive departure costs; restructuring charges; the GX dispute; the GX dispute Phase II costs, one-time costs directly related to COVID-19 pandemic one-time costs directly related to COVID-19 pandemic, such as costs associated with cleaning, testing, quarantine of employees, and modifications to our Gulf of Mexico microwave network, and non-recurring items
A reconciliation of net loss to Adjusted EBITDA is found in the table below.
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Media / Investor Relations Contact |
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Lee M. Ahlstrom, SVP & CFO |
Tel: +1 (281) 674-0699 |
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RigNet, Inc. |
investor.relations@rig.net |
15115 PARK ROW BLVD, SUITE 300, HOUSTON, TEXAS 77084-4947 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 6 of 11
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
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Three Months Ended |
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Nine Months Ended |
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September 30, 2020 |
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June 30, 2020 |
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September 30, 2019 |
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September 30, 2020 |
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September 30, 2019 |
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(in thousands, except per share amounts) |
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Unaudited Consolidated Statements of |
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Comprehensive Loss Data: |
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Revenue |
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$ |
48,722 |
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$ |
53,391 |
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$ |
60,993 |
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$ |
160,874 |
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$ |
178,835 |
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Expenses: |
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Cost of revenue (excluding depreciation and amortization) |
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29,995 |
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33,687 |
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35,662 |
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101,632 |
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108,637 |
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Depreciation and amortization |
|
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6,375 |
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6,913 |
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|
|
7,172 |
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20,219 |
|
|
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23,763 |
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Impairment of goodwill and intangible assets |
|
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3,836 |
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- |
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- |
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26,977 |
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- |
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Change in fair value of earn-out/contingent consideration |
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- |
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3,916 |
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- |
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3,916 |
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1,284 |
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Selling and marketing |
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2,262 |
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2,207 |
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2,784 |
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7,281 |
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9,529 |
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General and administrative |
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9,295 |
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9,453 |
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12,377 |
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32,577 |
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43,305 |
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Total expenses |
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51,763 |
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56,176 |
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57,995 |
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192,602 |
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186,518 |
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Operating income (loss) |
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(3,041 |
) |
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(2,785 |
) |
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2,998 |
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(31,728 |
) |
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|
(7,683 |
) |
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Other expense, net |
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(1,731 |
) |
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(1,338 |
) |
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(2,270 |
) |
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(4,918 |
) |
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(4,798 |
) |
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Income (loss) before income taxes |
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(4,772 |
) |
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(4,123 |
) |
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|
728 |
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(36,646 |
) |
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(12,481 |
) |
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Income tax (expense) benefit |
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(695 |
) |
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(129 |
) |
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(998 |
) |
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156 |
|
|
|
(5,868 |
) |
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Net loss |
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$ |
(5,467 |
) |
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$ |
(4,252 |
) |
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$ |
(270 |
) |
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$ |
(36,490 |
) |
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$ |
(18,349 |
) |
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Net Loss Per Share - Basic and Diluted |
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Net loss attributable to RigNet, Inc. common stockholders |
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$ |
(5,537 |
) |
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$ |
(4,322 |
) |
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$ |
(494 |
) |
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$ |
(36,700 |
) |
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$ |
(18,633 |
) |
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Net loss per share attributable to RigNet, Inc. common stockholders, basic |
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$ |
(0.25 |
) |
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$ |
(0.21 |
) |
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$ |
(0.02 |
) |
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$ |
(1.69 |
) |
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$ |
(0.94 |
) |
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Net loss per share attributable to RigNet, Inc. common stockholders, diluted |
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$ |
(0.25 |
) |
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$ |
(0.21 |
) |
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$ |
(0.02 |
) |
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$ |
(1.69 |
) |
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$ |
(0.94 |
) |
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Weighted average shares outstanding, basic |
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22,573 |
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|
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20,510 |
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|
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19,970 |
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|
|
21,776 |
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|
|
19,777 |
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Weighted average shares outstanding, diluted |
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22,573 |
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|
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20,510 |
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19,970 |
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21,776 |
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|
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19,777 |
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Unaudited Non-GAAP Data: |
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Adjusted EBITDA |
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$ |
7,536 |
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$ |
9,701 |
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$ |
11,010 |
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$ |
25,588 |
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$ |
29,171 |
|
15115 PARK ROW BLVD, SUITE 300, HOUSTON, TEXAS 77084-4947 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 7 of 11
Reconciliation of Net Loss to Adjusted EBITDA
(Unaudited)
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Three Months Ended |
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Nine Months Ended |
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September 30, 2020 |
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June 30, 2020 |
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September 30, 2019 |
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September 30, 2020 |
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September 30, 2019 |
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(in thousands) |
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Reconciliation of Net Loss to Adjusted EBITDA: |
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|
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|
|
|
|
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|
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Net loss |
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$ |
(5,467 |
) |
|
$ |
(4,252 |
) |
|
$ |
(270 |
) |
|
$ |
(36,490 |
) |
|
$ |
(18,349 |
) |
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Interest expense |
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1,315 |
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|
|
1,325 |
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|
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1,784 |
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|
|
4,168 |
|
|
|
4,291 |
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Depreciation and amortization |
|
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6,375 |
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|
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6,913 |
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|
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7,172 |
|
|
|
20,219 |
|
|
|
23,763 |
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|
Impairment of goodwill and intangible assets |
|
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3,836 |
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|
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- |
|
|
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- |
|
|
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26,977 |
|
|
|
- |
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(Gain) loss on sales of property, plant and equipment, net of retirements |
|
|
79 |
|
|
|
(166 |
) |
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|
8 |
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|
|
195 |
|
|
|
19 |
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Stock-based compensation |
|
|
502 |
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|
|
832 |
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|
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1,504 |
|
|
|
5,188 |
|
|
|
7,132 |
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|
Restructuring costs |
|
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- |
|
|
|
- |
|
|
|
158 |
|
|
|
- |
|
|
|
731 |
|
|
Change in fair value of earn-out/contingent consideration |
|
|
- |
|
|
|
3,916 |
|
|
|
- |
|
|
|
3,916 |
|
|
|
1,284 |
|
|
Executive departure costs |
|
|
- |
|
|
|
255 |
|
|
|
- |
|
|
|
553 |
|
|
|
- |
|
|
Mergers and Acquisitions costs |
|
|
67 |
|
|
|
78 |
|
|
|
76 |
|
|
|
213 |
|
|
|
486 |
|
|
COVID-19 Costs |
|
|
134 |
|
|
|
671 |
|
|
|
- |
|
|
|
805 |
|
|
|
- |
|
|
GX Dispute Phase II costs |
|
|
- |
|
|
|
- |
|
|
|
(420 |
) |
|
|
- |
|
|
|
3,946 |
|
|
Income tax expense (benefit) |
|
|
695 |
|
|
|
129 |
|
|
|
998 |
|
|
|
(156 |
) |
|
|
5,868 |
|
|
Adjusted EBITDA (non-GAAP measure) |
|
$ |
7,536 |
|
|
$ |
9,701 |
|
|
$ |
11,010 |
|
|
$ |
25,588 |
|
|
$ |
29,171 |
|
15115 PARK ROW BLVD, SUITE 300, HOUSTON, TEXAS 77084-4947 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 8 of 11
Segment Information
(Unaudited)
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Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||
|
|
|
September 30, 2020 |
|
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June 30, 2020 |
|
|
September 30, 2019 |
|
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September 30, 2020 |
|
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September 30, 2019 |
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(in thousands) |
|
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Managed Communications Services |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Revenue |
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$ |
31,939 |
|
|
$ |
34,136 |
|
|
$ |
42,055 |
|
|
$ |
105,971 |
|
|
$ |
125,593 |
|
|
Cost of revenue |
|
|
19,523 |
|
|
|
22,985 |
|
|
|
24,156 |
|
|
|
68,010 |
|
|
|
76,160 |
|
|
Depreciation and amortization |
|
|
4,510 |
|
|
|
4,843 |
|
|
|
5,037 |
|
|
|
14,012 |
|
|
|
16,360 |
|
|
Impairment of goodwill |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
21,755 |
|
|
|
- |
|
|
Selling, general and administrative |
|
|
2,454 |
|
|
|
2,436 |
|
|
|
3,303 |
|
|
|
7,697 |
|
|
|
10,446 |
|
|
Operating income (loss) |
|
$ |
5,452 |
|
|
$ |
3,872 |
|
|
$ |
9,559 |
|
|
$ |
(5,503 |
) |
|
$ |
22,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Applications and Internet-of-Things |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
8,367 |
|
|
$ |
8,805 |
|
|
$ |
9,265 |
|
|
$ |
25,915 |
|
|
$ |
25,285 |
|
|
Cost of revenue |
|
|
3,382 |
|
|
|
3,221 |
|
|
|
4,091 |
|
|
|
11,164 |
|
|
|
12,975 |
|
|
Depreciation and amortization |
|
|
1,290 |
|
|
|
1,154 |
|
|
|
1,218 |
|
|
|
3,626 |
|
|
|
3,675 |
|
|
Impairment of intangible assets |
|
|
3,836 |
|
|
|
- |
|
|
|
- |
|
|
|
3,836 |
|
|
|
- |
|
|
Selling, general and administrative |
|
|
1,332 |
|
|
|
1,563 |
|
|
|
1,599 |
|
|
|
4,515 |
|
|
|
2,999 |
|
|
Operating income (loss) |
|
$ |
(1,473 |
) |
|
$ |
2,867 |
|
|
$ |
2,357 |
|
|
$ |
2,774 |
|
|
$ |
5,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems Integration |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
8,416 |
|
|
$ |
10,450 |
|
|
$ |
9,673 |
|
|
$ |
28,988 |
|
|
$ |
27,957 |
|
|
Cost of revenue |
|
|
7,090 |
|
|
|
7,481 |
|
|
|
7,415 |
|
|
|
22,458 |
|
|
|
19,502 |
|
|
Depreciation and amortization |
|
|
157 |
|
|
|
157 |
|
|
|
155 |
|
|
|
478 |
|
|
|
1,456 |
|
|
Impairment of goodwill |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,386 |
|
|
|
- |
|
|
Selling, general and administrative |
|
|
374 |
|
|
|
302 |
|
|
|
464 |
|
|
|
1,080 |
|
|
|
2,158 |
|
|
Operating income |
|
$ |
795 |
|
|
$ |
2,510 |
|
|
$ |
1,639 |
|
|
$ |
3,586 |
|
|
$ |
4,841 |
|
NOTE: Consolidated balances include the segments above along with corporate activities and intercompany eliminations.
15115 PARK ROW BLVD, SUITE 300, HOUSTON, TEXAS 77084-4947 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 9 of 11
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
September 30, |
|
|
December 31, |
|
||
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
(in thousands, except share amounts) |
|
|||||
|
ASSETS |
|
|||||||
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
16,887 |
|
|
$ |
12,941 |
|
|
Restricted cash |
|
|
1,500 |
|
|
|
42 |
|
|
Accounts receivable, net |
|
|
58,583 |
|
|
|
67,059 |
|
|
Costs and estimated earnings in excess of billings on uncompleted contracts (CIEB) |
|
|
14,421 |
|
|
|
13,275 |
|
|
Prepaid expenses and other current assets |
|
|
5,141 |
|
|
|
6,500 |
|
|
Total current assets |
|
|
96,532 |
|
|
|
99,817 |
|
|
Property, plant and equipment, net |
|
|
51,005 |
|
|
|
60,118 |
|
|
Restricted cash |
|
|
- |
|
|
|
1,522 |
|
|
Goodwill |
|
|
19,982 |
|
|
|
46,792 |
|
|
Intangibles, net |
|
|
20,392 |
|
|
|
30,145 |
|
|
Right-of-use lease asset |
|
|
6,193 |
|
|
|
6,829 |
|
|
Deferred tax and other assets |
|
|
5,378 |
|
|
|
5,757 |
|
|
TOTAL ASSETS |
|
$ |
199,482 |
|
|
$ |
250,980 |
|
|
LIABILITIES AND EQUITY |
|
|||||||
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
21,226 |
|
|
$ |
28,517 |
|
|
Accrued expenses |
|
|
16,828 |
|
|
|
16,660 |
|
|
Current maturities of long-term debt |
|
|
8,836 |
|
|
|
10,793 |
|
|
Income taxes payable |
|
|
1,223 |
|
|
|
2,649 |
|
|
GX dispute accrual |
|
|
- |
|
|
|
750 |
|
|
Deferred revenue and other current liabilities |
|
|
19,121 |
|
|
|
11,173 |
|
|
Total current liabilities |
|
|
67,234 |
|
|
|
70,542 |
|
|
Long-term debt |
|
|
100,241 |
|
|
|
96,934 |
|
|
Deferred revenue |
|
|
767 |
|
|
|
855 |
|
|
Deferred tax liability |
|
|
1,989 |
|
|
|
2,672 |
|
|
Right-of-use lease liability - long-term portion |
|
|
5,764 |
|
|
|
6,329 |
|
|
Other liabilities |
|
|
16,304 |
|
|
|
26,771 |
|
|
Total liabilities |
|
|
192,299 |
|
|
|
204,103 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
|
|
Preferred stock - $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding at September 30, 2020 and December 31, 2019 |
|
|
- |
|
|
|
- |
|
|
Common stock - $0.001 par value; 190,000,000 shares authorized; 20,556,408 and 19,979,284 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively |
|
|
21 |
|
|
|
20 |
|
|
Treasury stock - 448,586 and 203,756 shares at September 30, 2020 and December 31, 2019, respectively, at cost |
|
|
(3,285 |
) |
|
|
(2,693 |
) |
|
Additional paid-in capital |
|
|
189,753 |
|
|
|
184,571 |
|
|
Accumulated deficit |
|
|
(152,373 |
) |
|
|
(115,673 |
) |
|
Accumulated other comprehensive loss |
|
|
(27,011 |
) |
|
|
(19,502 |
) |
|
Total stockholders' equity |
|
|
7,105 |
|
|
|
46,723 |
|
|
Non-redeemable, non-controlling interest |
|
|
78 |
|
|
|
154 |
|
|
Total equity |
|
|
7,183 |
|
|
|
46,877 |
|
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
199,482 |
|
|
$ |
250,980 |
|
15115 PARK ROW BLVD, SUITE 300, HOUSTON, TEXAS 77084-4947 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 10 of 11
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Nine Months Ended September 30, |
|
|||||
|
|
|
2020 |
|
|
2019 |
|
||
|
|
|
(in thousands) |
|
|||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(36,490 |
) |
|
$ |
(18,349 |
) |
|
Adjustments to reconcile net loss to net cash provided by operations: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
20,219 |
|
|
|
23,763 |
|
|
Impairment of goodwill and intangible assets |
|
|
26,977 |
|
|
|
- |
|
|
Stock-based compensation |
|
|
5,188 |
|
|
|
7,132 |
|
|
Amortization of deferred financing costs |
|
|
284 |
|
|
|
252 |
|
|
Deferred taxes |
|
|
(595 |
) |
|
|
4,902 |
|
|
Change in fair value of earn-out/contingent consideration |
|
|
3,916 |
|
|
|
1,284 |
|
|
Accretion of discount of contingent consideration payable for acquisitions |
|
|
468 |
|
|
|
262 |
|
|
(Gain) loss on sales of property, plant and equipment, net of retirements |
|
|
195 |
|
|
|
19 |
|
|
Changes in operating assets and liabilities, net of effect of acquisition: |
|
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
7,501 |
|
|
|
4,995 |
|
|
Costs and estimated earnings in excess of billings on uncompleted contracts (CIEB) |
|
|
(243 |
) |
|
|
(4,536 |
) |
|
Prepaid expenses and other assets |
|
|
1,472 |
|
|
|
128 |
|
|
Right-of-use lease asset |
|
|
636 |
|
|
|
1,214 |
|
|
Accounts payable |
|
|
(4,366 |
) |
|
|
5,355 |
|
|
Accrued expenses |
|
|
(225 |
) |
|
|
36 |
|
|
GX Dispute payment |
|
|
(750 |
) |
|
|
(50,000 |
) |
|
Deferred revenue |
|
|
(1,257 |
) |
|
|
1,635 |
|
|
Right-of-use lease liability |
|
|
(827 |
) |
|
|
(1,593 |
) |
|
Other liabilities |
|
|
(3,383 |
) |
|
|
(2,444 |
) |
|
Net cash provided by (used in) operating activities |
|
|
18,720 |
|
|
|
(25,945 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(10,698 |
) |
|
|
(16,776 |
) |
|
Proceeds from sales of property, plant and equipment |
|
|
27 |
|
|
|
300 |
|
|
Net cash used in investing activities |
|
|
(10,671 |
) |
|
|
(16,476 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
Issuance of common stock upon the exercise of stock options and the vesting of restricted stock |
|
|
1 |
|
|
|
4 |
|
|
Stock withheld to cover employee taxes on stock-based compensation |
|
|
(598 |
) |
|
|
(1,412 |
) |
|
Subsidiary distributions to non-controlling interest |
|
|
(286 |
) |
|
|
(275 |
) |
|
Proceeds from borrowings |
|
|
15,550 |
|
|
|
48,500 |
|
|
Proceeds from Paycheck Protection Program Loan |
|
|
6,298 |
|
|
|
- |
|
|
Repayments of long-term debt |
|
|
(23,163 |
) |
|
|
(11,413 |
) |
|
Payment of financing fees |
|
|
(485 |
) |
|
|
(486 |
) |
|
Net cash provided by (used in) financing activities |
|
|
(2,683 |
) |
|
|
34,918 |
|
|
Net change in cash and cash equivalents |
|
|
5,366 |
|
|
|
(7,503 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents including restricted cash: |
|
|
|
|
|
|
|
|
|
Balance, January 1, |
|
|
14,505 |
|
|
|
23,296 |
|
|
Changes in foreign currency translation |
|
|
(1,484 |
) |
|
|
35 |
|
|
Balance, September 30, |
|
$ |
18,387 |
|
|
$ |
15,828 |
|
15115 PARK ROW BLVD, SUITE 300, HOUSTON, TEXAS 77084-4947 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net
Page 11 of 11
Selected Operational Data
MCS Site Count
(Unaudited)
|
|
|
3rd Quarter |
|
|
2nd Quarter |
|
|
1st Quarter |
|
|
4th Quarter |
|
|
3rd Quarter |
|
|||||
|
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|||||
|
Selected Operational Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Offshore drilling rigs (1) |
|
|
176 |
|
|
|
194 |
|
|
|
196 |
|
|
|
185 |
|
|
|
184 |
|
|
Offshore Production |
|
|
359 |
|
|
|
343 |
|
|
|
386 |
|
|
|
385 |
|
|
|
384 |
|
|
Maritime |
|
|
173 |
|
|
|
165 |
|
|
|
177 |
|
|
|
171 |
|
|
|
184 |
|
|
Other sites (2) |
|
|
482 |
|
|
|
527 |
|
|
|
592 |
|
|
|
599 |
|
|
|
634 |
|
|
Total |
|
|
1,190 |
|
|
|
1,229 |
|
|
|
1,351 |
|
|
|
1,340 |
|
|
|
1,386 |
|
|
Project Backlog (in thousands) |
|
$ |
12,352 |
|
|
$ |
15,856 |
|
|
$ |
22,380 |
|
|
$ |
26,178 |
|
|
$ |
35,855 |
|
|
(1) |
Includes jack up, semi-submersible and drillship rigs |
|
(2) |
Includes U.S. and International land sites, completion sites, man-camps, remote offices, and supply bases and offshore-related supply bases, shore offices, tender rigs and platform rigs |
###
15115 PARK ROW BLVD, SUITE 300, HOUSTON, TEXAS 77084-4947 PHONE 281.674.0100 FAX 281.674.0101 http://www.rig.net