Boingo Wireless Reports Strong Second Quarter 2013 Results
Boingo Wireless Reports Strong Second Quarter 2013 Results
-- Exceeds Revenue and Profitability Guidance
-- Awarded three contracts to deploy neutral-host, multi-carrier DAS networks at the University of Arizona, Pinnacle Bank Arena and Memphis International Airport
-- Launches free Wi-Fi access for Samsung tablet users
LOS ANGELES--(BUSINESS WIRE)-- Boingo Wireless (NAS: WIFI) , the leading DAS and Wi-Fi provider that serves consumers, carriers and advertisers worldwide, today announced the company's financial results for the second quarter ended June 30, 2013.
Second Quarter 2013 Financial Highlights
Boingo Wireless reported revenue of $26.2 million, which exceeded the company's guidance range, compared to $24.3 million for the second quarter of 2012. Net loss attributable to common stockholders was $0.4 million, or ($0.01) per diluted share. This compares to net income attributable to common stockholders of $1.5 million, or $0.04 per diluted share, for the second quarter of 2012.
Adjusted EBITDA was $6.1 million compared to $6.8 million for the second quarter of 2012. Adjusted EBITDA, which is a non-GAAP financial measure, is defined below and is reconciled to net (loss) income attributable to common stockholders, the most comparable measure under GAAP, in the schedule entitled "Reconciliation of Net (Loss) Income Attributable to Common Stockholders to Adjusted EBITDA."
Operational Highlights
An agreement with the University of Arizona to design, build and manage the University's first distributed antenna system (DAS), which will provide improved voice and data coverage and capacity for Wildcat fans, students and faculty.
An agreement to serve as the exclusive cellular network provider for Pinnacle Bank Arena, which includes the design, deployment and management of a neutral-host, multi-carrier DAS network for enhanced mobile voice and data connectivity during events.
An agreement with the Memphis-Shelby Airport Authority Board of Commissions to design, build and manage a DAS network at the Memphis International Airport to improve cellular service in the terminal, ground transportation center and surrounding areas.
An agreement with Samsung Electronics America, Inc. to provide one year of free unlimited Wi-Fi access in North America to Galaxy Tablet 3 and Galaxy Note 8 Wi-Fi users.
The launch of a new advertising product that allows leading brands to reward users with free Wi-Fi access in exchange for verified downloads of their iOS or Android apps.
Management Commentary
"Our positive momentum continued through the second quarter, with all three major lines of business- retail, wholesale, and advertising - contributing to our overall performance," said David Hagan, Chief Executive Officer of Boingo Wireless. "Our retail and advertising businesses over-performed for the quarter to help lead us to $26.2 million in revenue, which exceeded the high end of our guidance. Stability in the wholesale sector, especially as it relates to revenue generated by DAS upgrade projects for the carriers, helped amplify the retail and advertising gains."
Mr. Hagan continued, "Strategic initiatives around DAS and advertising saw especially notable traction, as we continue to grow those lines of business. Specifically, we finalized three contracts to deploy neutral-host, multi-carrier DAS networks at the Memphis International Airport, the Pinnacle Bank Arena in Lincoln, Nebraska and across sections of the University of Arizona campus. On the advertising front, we completed the integration of our sponsorship and advertising platform with the Starbucks Wi-Fi network, allowing us to deliver sponsorships and display ads throughout more than 7,000 company-owned Starbucks stores in the United States and Canada."
Business Outlook
Boingo Wireless is initiating guidance for the third quarter ending September 30, 2013, as follows:
Third Quarter 2013
Revenue is expected to be in the range of $26.5 million to $28.5 million.
Adjusted EBITDA is expected to be in the range of $7.0 million to $8.0 million.
Net income attributable to common stockholders is expected to be in the range of $0.0 million to $1.0 million, or $0.00 to $0.03 per diluted share.
Boingo Wireless is reiterating guidance for the full year ending December 31, 2013, as follows:
Full Year 2013
Revenue is expected to be in the range of $106.0 million to $110.0 million.
Adjusted EBITDA is expected to be in the range of $28.5 million to $31.5 million.
Net income attributable to common stockholders is expected to be in the range of $1.0 million to $3.0 million, or $0.03 to $0.08 per diluted share.
Conference Call Information
Members of Boingo Wireless' management will host a conference call to discuss its second quarter 2013 financial results beginning at 4:30 pm ET (1:30 pm PT), today, August 8, 2013. To participate in the conference call, investors from the U.S. and Canada should dial (877) 407-0789 ten minutes prior to the scheduled start time. International callers should dial (201) 689-8562. In addition, the call will be broadcast live over the Internet hosted on the Investor Relations section of the company's website at http://investors.boingo.com and will be archived online upon completion of the conference call.
Use of Non-GAAP Financial Measures
To supplement Boingo Wireless' financial statements presented on a GAAP basis, Boingo Wireless provides Adjusted EBITDA as a supplemental measure of its performance. The company defines Adjusted EBITDA as net (loss) income attributable to common stockholders plus depreciation and amortization of property and equipment, income tax (benefit) expense, amortization of intangible assets, stock-based compensation expense, non-controlling interests and interest and other income, net.
Boingo Wireless believes Adjusted EBITDA is useful to investors in evaluating its operating performance. Boingo's management uses Adjusted EBITDA in conjunction with accounting principles generally accepted in the United States, or GAAP, and operating performance measures as part of its overall assessment of the company's performance for planning purposes, including the preparation of its annual operating budget, to evaluate the effectiveness of its business strategies and to communicate with its board of directors concerning its financial performance. Adjusted EBITDA should not be considered as an alternative financial measure to net (loss) income attributable to common stockholders, which is the most directly comparable financial measure calculated in accordance with GAAP, or any other measure of financial performance calculated in accordance with GAAP.
About Boingo Wireless
Boingo Wireless (NAS: WIFI) helps the world stay connected. Our vast footprint of small cell networks covers more than a million DAS and Wi-Fi locations and reaches more than 1 billion consumers annually — in places as varied as airports, stadiums, shopping malls, restaurants, universities, and military bases. The Boingo platform is the only monetization engine of its kind, driving revenue through carrier offload, advertising, location-based data analytics, and consumer products like IPTV, high-speed broadband, and Wi-Fi. For more information about the Boingo story, visit www.Boingo.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking statements" that involves risks, uncertainties and assumptions. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. These forward-looking statements include the quotations from management in this press release, as well as any statements regarding Boingo's strategic plans and future guidance. Forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy and other future conditions. Since forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The company's actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, as well as other risk and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission ("SEC"), including Boingo's Form 10-K for the year ended December 31, 2012 filed with the SEC on March 18, 2013 and Form 10-Q for the quarter ended March 31, 2013 filed with the SEC on May 10, 2013, which we incorporate by reference into this press release. Any forward-looking statement made by Boingo in this press release speaks only as of the date on which it is made. Factors or events that could cause the company's actual results to differ may emerge from time to time, and it is not possible for Boingo to predict all of them. Boingo undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Boingo, Boingo Wireless, the Boingo Wireless Logo and Don't Just Go. Boingo. are registered trademarks of Boingo Wireless, Inc. All other trademarks are the properties of their respective owners.
Boingo Wireless, Inc. | |||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenue | $ | 26,239 | $ | 24,302 | $ | 49,373 | $ | 48,489 | |||||||
Costs and operating expenses: | |||||||||||||||
Network access | 11,035 | 9,661 | 20,705 | 19,516 | |||||||||||
Network operations | 4,753 | 3,748 | 8,704 | 7,202 | |||||||||||
Development and technology | 2,726 | 2,834 | 5,862 | 5,492 | |||||||||||
Selling and marketing | 3,822 | 2,419 | 6,812 | 4,670 | |||||||||||
General and administrative | 3,811 | 3,157 | 8,301 | 6,484 | |||||||||||
Amortization of intangible assets | 516 | 247 | 915 | 482 | |||||||||||
Total costs and operating expenses | 26,663 | 22,066 | 51,299 | 43,846 | |||||||||||
(Loss) income from operations | (424 | ) | 2,236 | (1,926 | ) | 4,643 | |||||||||
Interest and other income, net | 25 | 81 | 72 | 137 | |||||||||||
(Loss) income before income taxes | (399 | ) | 2,317 | (1,854 | ) | 4,780 | |||||||||
Income tax (benefit) expense | (173 | ) | 709 | (640 | ) | 1,367 | |||||||||
Net (loss) income | (226 | ) | 1,608 | (1,214 | ) | 3,413 | |||||||||
Net income attributable to non-controlling interests | 173 | 147 | 306 | 295 | |||||||||||
Net (loss) income attributable to common stockholders | $ | (399 | ) | $ | 1,461 | $ | (1,520 | ) | $ | 3,118 | |||||
Net (loss) income per share attributable to common stockholders: | |||||||||||||||
Basic | $ | (0.01 | ) | $ | 0.04 | $ | (0.04 | ) | $ | 0.09 | |||||
Diluted | $ | (0.01 | ) | $ | 0.04 | $ | (0.04 | ) | $ | 0.08 | |||||
Weighted average shares used in computing net (loss) income per share attributable to common stockholders: | |||||||||||||||
Basic | 35,670 | 34,799 | 35,634 | 34,384 | |||||||||||
Diluted | 35,670 | 37,403 | 35,634 | 37,321 | |||||||||||
Boingo Wireless, Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
(In thousands, except per share amounts) | ||||||||
June 30, | December 31, | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 48,092 | $ | 58,138 | ||||
Restricted cash | 30 | 30 | ||||||
Marketable securities | 39,426 | 41,558 | ||||||
Accounts receivable, net | 13,176 | 10,977 | ||||||
Prepaid expenses and other current assets | 7,198 | 2,072 | ||||||
Deferred tax assets | 1,204 | 1,204 | ||||||
Total current assets | 109,126 | 113,979 | ||||||
Property and equipment, net | 50,536 | 42,411 | ||||||
Goodwill | 33,045 | 26,744 | ||||||
Intangible assets, net | 16,060 | 10,594 | ||||||
Deferred tax assets | 1,195 | 4,256 | ||||||
Other assets | 3,113 | 4,548 | ||||||
Total assets | $ | 213,075 | $ | 202,532 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 5,555 | $ | 4,990 | ||||
Accrued expenses and other liabilities | 13,552 | 11,019 | ||||||
Deferred revenue | 21,653 | 17,329 | ||||||
Total current liabilities | 40,760 | 33,338 | ||||||
Deferred revenue, net of current portion | 22,796 | 24,123 | ||||||
Other liabilities | 1,978 | 572 | ||||||
Total liabilities | 65,534 | 58,033 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, $0.0001 par value; 5,000 shares authorized; no shares issued and outstanding | — | — | ||||||
Common stock, $0.0001 par value; 100,000 shares authorized; 35,571 and 35,483 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively | 4 | 4 | ||||||
Additional paid-in capital | 184,115 | 178,219 | ||||||
Accumulated deficit | (37,129 | ) | (34,547 | ) | ||||
Total common stockholders' equity | 146,990 | 143,676 | ||||||
Non-controlling interests | 551 | 823 | ||||||
Total stockholders' equity | 147,541 | 144,499 | ||||||
Total liabilities and stockholders' equity | $ | 213,075 | $ | 202,532 | ||||
Boingo Wireless, Inc. | ||||||||||||||||
Reconciliation of Net (Loss) Income Attributable to Common Stockholders to | ||||||||||||||||
Adjusted EBITDA | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net (loss) income attributable to common stockholders | $ | (399 | ) | $ | 1,461 | $ | (1,520 | ) | $ | 3,118 | ||||||
Depreciation and amortization of property and equipment | 4,734 | 3,358 | 8,867 | 7,873 | ||||||||||||
Income tax (benefit) expense | (173 | ) | 709 | (640 | ) | 1,367 | ||||||||||
Amortization of intangible assets | 516 | 247 | 915 | 482 | ||||||||||||
Stock-based compensation expense | 1,245 | 952 | 1,847 | 1,945 | ||||||||||||
Non-controlling interests | 173 | 147 | 306 | 295 | ||||||||||||
Interest and other income, net | (25 | ) | (81 | ) | (72 | ) | (137 | ) | ||||||||
Adjusted EBITDA | $ | 6,071 | $ | 6,793 | $ | 9,703 | $ | 14,943 | ||||||||
Boingo Wireless
Christian Gunning
Vice President, Corporate Communications
(310) 586-4009
cgunning@boingo.com
or
Addo Communications
Laura Bainbridge / Kimberly Orlando
(310) 829-5400
laurab@addocommunications.com /
kimberlyo@addocommunications.com
KEYWORDS: United States North America California
INDUSTRY KEYWORDS:
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