Company Quick10K Filing
KVH Industries
Price10.68 EPS2
Shares18 P/E6
MCap193 P/FCF-17
Net Debt-9 EBIT33
TEV184 TEV/EBIT6
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-07-31
10-Q 2020-03-31 Filed 2020-05-01
10-K 2019-12-31 Filed 2020-02-28
10-Q 2019-09-30 Filed 2019-10-31
10-Q 2019-06-30 Filed 2019-08-02
10-Q 2019-03-31 Filed 2019-05-02
10-K 2018-12-31 Filed 2019-03-01
10-Q 2018-09-30 Filed 2018-10-31
10-Q 2018-06-30 Filed 2018-08-02
10-Q 2018-03-31 Filed 2018-05-04
10-K 2017-12-31 Filed 2018-03-02
10-Q 2017-09-30 Filed 2017-11-02
10-Q 2017-06-30 Filed 2017-08-04
10-Q 2017-03-31 Filed 2017-05-09
10-K 2016-12-31 Filed 2017-03-09
10-Q 2016-09-30 Filed 2016-11-03
10-Q 2016-06-30 Filed 2016-08-05
10-Q 2016-03-31 Filed 2016-05-10
10-K 2015-12-31 Filed 2016-03-14
10-Q 2015-09-30 Filed 2015-11-09
10-Q 2015-06-30 Filed 2015-08-10
10-Q 2015-03-31 Filed 2015-05-11
10-K 2014-12-31 Filed 2015-03-17
10-Q 2014-09-30 Filed 2014-11-10
10-Q 2014-06-30 Filed 2014-08-07
10-Q 2014-03-31 Filed 2014-05-09
10-K 2013-12-31 Filed 2014-03-17
10-Q 2013-09-30 Filed 2013-11-08
10-Q 2013-06-30 Filed 2013-08-09
10-Q 2013-03-31 Filed 2013-05-09
10-K 2012-12-31 Filed 2013-04-02
10-Q 2012-09-30 Filed 2012-11-08
10-Q 2012-06-30 Filed 2012-08-08
10-Q 2012-03-31 Filed 2012-05-09
10-K 2011-12-31 Filed 2012-03-08
10-Q 2011-09-30 Filed 2011-11-04
10-Q 2011-06-30 Filed 2011-08-04
10-Q 2011-03-31 Filed 2011-05-05
10-K 2010-12-31 Filed 2011-03-14
10-Q 2010-09-30 Filed 2010-11-05
10-Q 2010-06-30 Filed 2010-08-06
10-Q 2010-03-31 Filed 2010-05-04
10-K 2009-12-31 Filed 2010-03-09
8-K 2020-08-04 Other Events, Exhibits
8-K 2020-07-31 Earnings, Exhibits
8-K 2020-06-10
8-K 2020-06-10
8-K 2020-05-03
8-K 2020-05-01
8-K 2020-04-08
8-K 2020-02-28
8-K 2019-10-30
8-K 2019-10-04
8-K 2019-08-02
8-K 2019-06-04
8-K 2019-05-13
8-K 2019-05-02
8-K 2019-03-01
8-K 2018-10-31
8-K 2018-08-02
8-K 2018-06-05
8-K 2018-05-04
8-K 2018-03-02

KVHI 10Q Quarterly Report

Part I. Financial Information
Item 1. Interim Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-10.3 kvhi6302020boaamendment.htm
EX-31.1 kvhi630202010qex311.htm
EX-31.2 kvhi630202010qex312.htm
EX-32.1 kvhi630202010qex321.htm

KVH Industries Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
240192144964802012201420172020
Assets, Equity
503826142-102012201420172020
Rev, G Profit, Net Income
35217-7-21-352012201420172020
Ops, Inv, Fin

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number 0-28082
KVH Industries, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware05-0420589
(State or Other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification Number)
50 Enterprise Center, Middletown, RI 02842
(Address of Principal Executive Offices) (Zip Code)
(401) 847-3327
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on which Registered
The NASDAQ Stock Market LLC
Common Stock, par value $0.01 per shareKVHI
(NASDAQ Global Select Market)


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes    No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes     No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
DateClassOutstanding shares
July 27, 2020Common Stock, par value $0.01 per share18,010,758




KVH INDUSTRIES, INC. AND SUBSIDIARIES
Form 10-Q
INDEX
  Page No.
ITEM 1.
Consolidated Balance Sheets as of June 30, 2020 (unaudited) and December 31, 2019
Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (unaudited)
Consolidated Statements of Comprehensive (Loss) Income for the three and six months ended June 30, 2020 and 2019 (unaudited)
Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2020 and 2019 (unaudited)
Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019 (unaudited)
ITEM 2.
ITEM 4.
ITEM 1.
ITEM 1A.
RISK FACTORS
ITEM 2.
ITEM 6.
 
2



PART I. FINANCIAL INFORMATION
ITEM 1. Interim Financial Statements
KVH INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
June 30, 2020December 31, 2019
ASSETS(unaudited)
Current assets:
Cash and cash equivalents$21,443  $18,365  
Marketable securities22,498  29,907  
Accounts receivable, net of allowance for doubtful accounts of $1,962 and $1,589 as of June 30, 2020 and December 31, 2019, respectively
28,563  32,891  
Inventories, net24,454  23,465  
Prepaid expenses and other current assets 3,087  3,188  
Current contract assets1,357  1,458  
Total current assets101,402  109,274  
Property and equipment, net
55,269  53,584  
Intangible assets, net
4,195  4,943  
Goodwill14,691  15,408  
Right of use asset operating lease4,108  6,286  
Other non-current assets7,260  6,443  
Non-current contract assets3,021  3,408  
Non-current deferred income tax asset38  45  
Total assets$189,984  $199,391  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$12,195  $15,031  
Accrued compensation and employee-related expenses5,608  5,637  
Accrued other8,294  7,733  
Accrued product warranty costs2,137  2,194  
Current portion of long-term debt2,682    
Contract liabilities4,438  4,443  
Current operating lease liability1,339  2,831  
Liability for uncertain tax positions564  521  
Total current liabilities37,257  38,390  
Other long-term liabilities983  1,292  
Long-term operating lease liability2,803  3,482  
Long-term contract liabilities4,938  5,476  
Long-term debt, excluding current portion4,245    
Non-current deferred income tax liability770  762  
Total liabilities$50,996  $49,402  
Commitments and contingencies (Notes 2, 10, 12, and 19)
Stockholders’ equity:
Preferred stock, $0.01 par value. Authorized 1,000,000 shares; none issued
    
Common stock, $0.01 par value. Authorized 30,000,000 shares; 19,445,221 and 19,398,699 shares issued at June 30, 2020 and December 31, 2019, respectively; and 18,012,527 and 18,001,261 shares outstanding at June 30, 2020 and December 31, 2019, respectively
194  194  
Additional paid-in capital146,250  144,485  
Retained earnings9,772  19,538  
Accumulated other comprehensive loss(5,377) (2,767) 
150,839  161,450  
Less: treasury stock at cost, common stock, 1,432,694 and 1,397,438 shares as of June 30, 2020 and December 31, 2019, respectively
(11,851) (11,461) 
Total stockholders’ equity138,988  149,989  
Total liabilities and stockholders’ equity$189,984  $199,391  
See accompanying Notes to Unaudited Consolidated Financial Statements.
3


KVH INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except earnings per share amounts, unaudited)
 
Three Months EndedSix Months Ended
June 30,June 30,
 2020201920202019
Sales:
Product$13,949  $15,189  $27,043  $28,404  
Service22,977  24,541  46,451  47,702  
Net sales36,926  39,730  73,494  76,106  
Costs and expenses:
Costs of product sales9,554  12,649  19,190  20,933  
Costs of service sales14,378  15,379  29,573  30,752  
Research and development3,866  3,798  8,153  7,666  
Sales, marketing and support6,795  8,853  15,495  16,983  
General and administrative5,769  5,730  12,167  12,685  
Total costs and expenses40,362  46,409  84,578  89,019  
Loss from operations(3,436) (6,679) (11,084) (12,913) 
Interest income217  1,000  530  1,175  
Interest expense3  558  7  943  
Other (expense) income, net(161) 339  1,341  242  
Loss from continuing operations before income tax expense (benefit)(3,383) (5,898) (9,220) (12,439) 
Income tax expense (benefit)169  (2,604) 546  (2,648) 
Net loss from continuing operations$(3,552) $(3,294) $(9,766) $(9,791) 
Income from discontinued operations, net of tax  50,630    50,873  
Net (loss) income$(3,552) $47,336  $(9,766) $41,082  
Net loss from continuing operations per common share
Basic and diluted (a)
$(0.20) $(0.19) $(0.56) $(0.56) 
Net income from discontinued operations per common share
Basic and diluted (a)
$0.00  $2.90  $0.00  $2.93  
Net (loss) income per common share
Basic and diluted (a)
$(0.20) $2.71  $(0.56) $2.36  
Weighted average number of common shares outstanding:
Basic and diluted17,648  17,463  17,588  17,383  

(a) Earnings per share components for 2019 do not sum due to rounding.
See accompanying Notes to Unaudited Consolidated Financial Statements.
4


KVH INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(in thousands, unaudited)
 
Three Months EndedSix Months Ended
 June 30,June 30,
 2020201920202019
Net (loss) income$(3,552) $47,336  $(9,766) $41,082  
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment(130) 10,151  (2,610) 11,231  
Unrealized gain on derivative instruments, net  3    11  
Other comprehensive (loss) income, net of tax(1)
(130) 10,154  (2,610) 11,242  
Total comprehensive (loss) income$(3,682) $57,490  $(12,376) $52,324  
(1) Tax impact was nominal for all periods.

See accompanying Notes to Unaudited Consolidated Financial Statements.
5


KVH INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands, unaudited)
 Common StockAdditional
Paid-in
Capital

Retained Earnings
Accumulated
Other
Comprehensive
Loss
Treasury StockTotal
Stockholders’
Equity
 SharesAmountSharesAmount
Balance at March 31, 202019,419  $194  $145,457  $13,324  $(5,247) (1,433) $(11,851) $141,877  
Net loss—  —  —  (3,552) —  —  —  (3,552) 
Other comprehensive loss—  —  —  —  (130) —  —  (130) 
Stock-based compensation—  —  742  —  —  —  —  742  
Exercise of stock options and issuance of restricted stock awards, net of forfeitures26  —  51  —  —  —  —  51  
Balance at June 30, 202019,445  $194  $146,250  $9,772  $(5,377) (1,433) $(11,851) $138,988  
 Common StockAdditional
Paid-in
Capital

Retained Earnings
Accumulated
Other
Comprehensive
Loss
Treasury StockTotal
Stockholders’
Equity
 SharesAmountSharesAmount
Balance at December 31, 201919,399  $194  $144,485  $19,538  $(2,767) (1,397) $(11,461) $149,989  
Net loss—  —  —  (9,766) —  —  —  (9,766) 
Other comprehensive loss—  —  —  —  (2,610) —  —  (2,610) 
Stock-based compensation—  —  1,547  —  —  —  —  1,547  
Issuance of common stock under employee stock purchase plan20  —  156  —  —  —  —  156  
Acquisition of treasury stock—  —  —  —  —  (36) (390) (390) 
Exercise of stock options and issuance of restricted stock awards, net of forfeitures26  —  62  —  —  —  —  62  
Balance at June 30, 202019,445  $194  $146,250  $9,772  $(5,377) (1,433) $(11,851) $138,988  
 Common StockAdditional
Paid-in
Capital
(Accumulated Deficit) Retained EarningsAccumulated
Other
Comprehensive
Loss
Treasury StockTotal
Stockholders’
Equity
 SharesAmountSharesAmount
Balance at March 31, 201919,134  $191  $140,790  $(19,971) $(13,643) (1,282) $(10,164) $97,203  
Net income—  —  —  47,336  —  —  —  47,336  
Other comprehensive income—  —  —  —  10,154  —  —  10,154  
Stock-based compensation—  —  1,033  —  —  —  —  1,033  
Exercise of stock options and issuance of restricted stock awards, net of forfeitures186  2  33  —  —  —  —  35  
Balance at June 30, 201919,320  $193  $141,856  $27,365  $(3,489) (1,282) $(10,164) $155,761  
 Common StockAdditional
Paid-in
Capital
(Accumulated Deficit) Retained EarningsAccumulated
Other
Comprehensive Loss
Treasury StockTotal
Stockholders’
Equity
 SharesAmountSharesAmount
Balance at December 31, 201819,026  $190  $139,617  $(15,397) $(14,731) (1,282) $(10,164) $99,515  
Net income—  —  —  41,082  —  —  —  41,082  
Other comprehensive income—  —  —  —  11,242  —  —  11,242  
ASC 606 correction (FN 16)—  —  —  1,680  —  —  —  1,680  
Stock-based compensation—  —  1,907  —  —  —  —  1,907  
Issuance of common stock under employee stock purchase plan23  —  218  —  —  —  —  218  
Exercise of stock options and issuance of restricted stock awards, net of forfeitures271  3  114  —  —  —  —  117  
Balance at June 30, 201919,320  $193  $141,856  $27,365  $(3,489) (1,282) $(10,164) $155,761  
See accompanying Notes to Unaudited Consolidated Financial Statements.
6


KVH INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited) 
Six Months Ended
 June 30,
 20202019
Cash flows from operating activities:
Net (loss) income$(9,766) $41,082  
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Provision for doubtful accounts482  (68) 
Depreciation and amortization5,402  6,412  
Deferred income taxes  26  
Loss on disposals of fixed assets400  117  
Gain on sale of Videotel  (54,520) 
Compensation expense related to stock-based awards and employee stock purchase plan
1,547  1,907  
Unrealized currency translation (gain) loss(950) 746  
Changes in operating assets and liabilities:
Accounts receivable3,739  (1,186) 
Inventories(993) (1,308) 
Prepaid expenses, other current assets, and current contract assets161  2,055  
Other non-current assets and non-current contract assets(422) 876  
Accounts payable(2,395) (22) 
Contract liabilities and long-term contract liabilities(460) (2,803) 
Accrued compensation, product warranty and other365  1,031  
Other long-term liabilities4  (928) 
Net cash used in operating activities$(2,886) $(6,583) 
Cash flows from investing activities:
Capital expenditures(7,049) (6,720) 
Cash paid for acquisition of intangible asset(40) (37) 
Proceeds from sale of fixed assets6  103  
Proceeds from sale of Videotel, net of cash sold  88,447  
Purchases of marketable securities(6,091) (50,032) 
Maturities and sales of marketable securities13,500    
Net cash provided by investing activities
$326  $31,761  
Cash flows from financing activities:
Repayments of mortgage loan  (2,597) 
Proceeds from PPP loan6,927    
Repayments of term note borrowings  (21,938) 
Repayments of line of credit borrowings  (13,000) 
Proceeds from line of credit borrowings  10,000  
Proceeds from stock options exercised and employee stock purchase plan207  365  
Repurchase of common stock(390)   
Payment of finance lease(312) (304) 
Net cash provided by (used in) financing activities