Company Quick10K Filing
Orbcomm
Price5.27 EPS-0
Shares80 P/E-20
MCap420 P/FCF20
Net Debt196 EBIT-2
TEV616 TEV/EBIT-295
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-01
10-K 2019-12-31 Filed 2020-02-28
10-Q 2019-09-30 Filed 2019-10-30
10-Q 2019-06-30 Filed 2019-07-31
10-Q 2019-03-31 Filed 2019-05-01
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 2018-05-03
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-02
10-Q 2017-06-30 Filed 2017-08-03
10-Q 2017-03-31 Filed 2017-05-04
10-K 2016-12-31 Filed 2017-03-03
10-Q 2016-09-30 Filed 2016-11-02
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-05
10-K 2015-12-31 Filed 2016-03-10
10-Q 2015-09-30 Filed 2015-11-05
10-Q 2015-06-30 Filed 2015-08-06
10-Q 2015-03-31 Filed 2015-05-07
10-K 2014-12-31 Filed 2015-03-16
10-Q 2014-09-30 Filed 2014-11-10
10-Q 2014-06-30 Filed 2014-08-08
10-Q 2014-03-31 Filed 2014-05-09
10-K 2013-12-31 Filed 2014-03-17
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-09
10-Q 2013-03-31 Filed 2013-05-10
10-K 2012-12-31 Filed 2013-03-18
10-Q 2012-09-30 Filed 2012-11-08
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-10
10-K 2011-12-31 Filed 2012-03-15
10-Q 2011-09-30 Filed 2011-11-09
10-Q 2011-06-30 Filed 2011-08-09
10-Q 2011-03-31 Filed 2011-05-10
10-K 2010-12-31 Filed 2011-03-16
10-Q 2010-09-30 Filed 2010-11-09
10-Q 2010-06-30 Filed 2010-08-09
10-Q 2010-03-31 Filed 2010-05-10
10-K 2009-12-31 Filed 2010-03-16
8-K 2020-04-30 Earnings, Exhibits
8-K 2020-04-22 Shareholder Vote
8-K 2020-04-22 Regulation FD
8-K 2020-04-07 Other Events, Exhibits
8-K 2020-02-26 Earnings, Exhibits
8-K 2019-10-30 Earnings, Exhibits
8-K 2019-08-05 Other Events, Exhibits
8-K 2019-07-31 Earnings, Exhibits
8-K 2019-07-16 Officers
8-K 2019-05-01 Earnings, Exhibits
8-K 2019-04-17 Shareholder Vote
8-K 2019-04-01 Officers, Exhibits
8-K 2019-02-27 Earnings, Exhibits
8-K 2018-10-30 Earnings, Exhibits
8-K 2018-09-17 Officers, Exhibits
8-K 2018-08-20 Officers, Exhibits
8-K 2018-08-01 Earnings, Exhibits
8-K 2018-06-15 Officers, Exhibits
8-K 2018-05-17 Officers, Exhibits
8-K 2018-05-03
8-K 2018-04-18 Shareholder Vote
8-K 2018-04-06 Other Events, Exhibits
8-K 2018-04-06 Earnings
8-K 2018-04-05 Earnings, Other Events, Exhibits
8-K 2018-03-01 Earnings, Exhibits
8-K 2017-12-14 Other Events

ORBC 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risks
Item 4. Disclosure 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 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 orbc-ex311_8.htm
EX-31.2 orbc-ex312_9.htm
EX-32.1 orbc-ex321_7.htm
EX-32.2 orbc-ex322_6.htm

Orbcomm Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
0.70.60.40.30.10.02012201420172020
Assets, Equity
0.10.10.0-0.0-0.1-0.12012201420172020
Rev, G Profit, Net Income
0.20.10.0-0.0-0.1-0.22012201420172020
Ops, Inv, Fin

orbc-10q_20200331.htm
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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 March 31, 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 001-33118

 

ORBCOMM INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

41-2118289

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

395 W. Passaic Street, Rochelle Park, New Jersey 07662

(Address of principal executive offices)

703-433-6300

(Registrant’s telephone number)

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) 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, 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 filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

☐  

  

Smaller 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  

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.001 per share

ORBC

The Nasdaq Stock Market, LLC

The number of shares outstanding of the registrant’s common stock as of April 27, 2020 is 78,622,348.

 

 


TABLE OF CONTENTS

 

PART I — FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Condensed Consolidated Balance Sheets as of March 31, 2020 (unaudited) and December 31, 2019

3

Condensed Consolidated Statements of Operations (unaudited) for the three months ended March 31, 2020 and March 31, 2019

4

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) for the three months ended March 31, 2020 and March 31, 2019

5

Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2020 and March 31, 2019

6

Condensed Consolidated Statements of Changes in Equity (unaudited) for the three months ended March 31, 2020 and March 31, 2019

7

Notes to the Condensed Consolidated Financial Statements (unaudited)

8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

23

Item 3. Quantitative and Qualitative Disclosures about Market Risks

31

Item 4. Disclosure Controls and Procedures

32

PART II — OTHER INFORMATION

 

Item 1. Legal Proceedings

33

Item 1A. Risk Factors

33

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

34

Item 3. Defaults Upon Senior Securities

34

Item 4. Mine Safety Disclosures

34

Item 5. Other Information

34

Item 6. Exhibits

35

SIGNATURES

36

 

 

 


PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

ORBCOMM Inc.

Condensed Consolidated Balance Sheets

(in thousands, except par value and share data)

 

 

 

March 31,

 

 

December 31,

 

 

2020

 

 

2019

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

$

70,112

 

 

$

54,258

 

Accounts receivable, net of allowance for doubtful accounts of $5,305

   and $4,480, respectively

 

58,460

 

 

 

60,595

 

Inventories

 

40,473

 

 

 

39,881

 

Prepaid expenses and other current assets

 

16,200

 

 

 

18,003

 

Total current assets

 

185,245

 

 

 

172,737

 

Satellite network and other equipment, net

 

140,291

 

 

 

145,553

 

Goodwill

 

166,129

 

 

 

166,129

 

Intangible assets, net

 

70,096

 

 

 

73,280

 

Other assets

 

21,735

 

 

 

23,149

 

Deferred income taxes

 

207

 

 

 

132

 

Total assets

$

583,703

 

 

$

580,980

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

$

14,796

 

 

$

16,722

 

Accrued liabilities

 

35,625

 

 

 

36,951

 

Current portion of deferred revenue

 

6,932

 

 

 

3,865

 

Total current liabilities

 

57,353

 

 

 

57,538

 

Note payable - related party

 

1,252

 

 

 

1,275

 

Notes payable, net of unamortized deferred issuance costs

 

261,877

 

 

 

246,683

 

Deferred revenue, net of current portion

 

2,708

 

 

 

6,771

 

Deferred tax liabilities

 

14,900

 

 

 

14,894

 

Other liabilities

 

15,623

 

 

 

16,303

 

Total liabilities

 

353,713

 

 

 

343,464

 

Commitments and contingencies

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

ORBCOMM Inc. stockholders' equity

 

 

 

 

 

 

 

Series A Convertible Preferred Stock, par value $0.001; 1,000,000 shares

   authorized; 40,624 shares issued and outstanding at March 31, 2020 and

   December 31, 2019

 

406

 

 

 

406

 

Common stock, par value $0.001; 250,000,000 shares authorized; 78,525,184 and

   78,062,451 shares issued at March 31, 2020 and December 31, 2019, respectively

 

78

 

 

 

78

 

Additional paid-in capital

 

449,431

 

 

 

447,681

 

Accumulated other comprehensive loss

 

(907

)

 

 

(1,013

)

Accumulated deficit

 

(217,917

)

 

 

(210,942

)

Less treasury stock, at cost; 836,904 shares and 0 shares at March 31, 2020

   and December 31, 2019, respectively

 

(2,502

)

 

 

 

Total ORBCOMM Inc. stockholders' equity

 

228,589

 

 

 

236,210

 

Noncontrolling interests

 

1,401

 

 

 

1,306

 

Total equity

 

229,990

 

 

 

237,516

 

Total liabilities and equity

$

583,703

 

 

$

580,980

 

The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

 

3


ORBCOMM Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

Service revenues

 

$

40,524

 

 

$

39,007

 

Product sales

 

 

25,655

 

 

 

27,028

 

Total revenues

 

 

66,179

 

 

 

66,035

 

Cost of revenues, exclusive of depreciation and amortization

   shown below:

 

 

 

 

 

 

 

 

Cost of services

 

 

13,081

 

 

 

13,047

 

Cost of product sales

 

 

17,281

 

 

 

19,028

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

19,730

 

 

 

17,179

 

Product development

 

 

3,820

 

 

 

3,967

 

Depreciation and amortization

 

 

13,364

 

 

 

12,678

 

Acquisition-related and integration costs

 

 

91

 

 

 

215

 

Loss from operations

 

 

(1,188

)

 

 

(79

)

Other income (expense):

 

 

 

 

 

 

 

 

Interest income

 

 

416

 

 

 

392

 

Other income (expense)

 

 

(266

)

 

 

242

 

Interest expense

 

 

(5,246

)

 

 

(5,241

)

Total other expense

 

 

(5,096

)

 

 

(4,607

)

Loss before income taxes

 

 

(6,284

)

 

 

(4,686

)

Income taxes

 

 

553

 

 

 

710

 

Net loss

 

 

(6,837

)

 

 

(5,396

)

Less: Net income attributable to noncontrolling

   interests

 

 

138

 

 

 

94

 

Net loss attributable to ORBCOMM Inc.

 

$

(6,975

)

 

$

(5,490

)

Net loss attributable to ORBCOMM Inc.

   common stockholders

 

$

(6,975

)

 

$

(5,490

)

Per share information-basic:

 

 

 

 

 

 

 

 

Net loss attributable to ORBCOMM Inc.

   common stockholders

 

$

(0.09

)

 

$

(0.07

)

Per share information-diluted:

 

 

 

 

 

 

 

 

Net loss attributable to ORBCOMM Inc.

   common stockholders

 

$

(0.09

)

 

$

(0.07

)

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

78,313

 

 

 

79,387

 

Diluted

 

 

78,313

 

 

 

79,387

 

 

The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

4


ORBCOMM Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Net loss

 

$

(6,837

)

 

$

(5,396

)

Other comprehensive income - Foreign currency translation

   adjustments

 

 

63

 

 

 

(515

)

Other comprehensive income

 

 

63

 

 

 

(515

)

Comprehensive loss

 

 

(6,774

)

 

 

(5,911

)

Less: Comprehensive income attributable to

   noncontrolling interests

 

 

(95

)

 

 

(85

)

Comprehensive loss attributable to ORBCOMM Inc.

 

$

(6,869

)

 

$

(5,996

)

 

The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

5


ORBCOMM Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(6,837

)

 

$

(5,396

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Change in allowance for doubtful accounts

 

 

1,301

 

 

 

144

 

Change in the fair value of acquisition-related contingent consideration

 

 

 

 

 

(2,063

)

Amortization and write-off of deferred financing fees

 

 

194

 

 

 

194

 

Depreciation and amortization

 

 

13,364

 

 

 

12,678

 

Stock-based compensation

 

 

1,679

 

 

 

2,082

 

Foreign exchange (gain) loss

 

 

106

 

 

 

(256

)

Deferred income taxes

 

 

(20

)

 

 

(1,042

)

Other

 

 

580

 

 

 

752

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

823

 

 

 

(2,852

)

Inventories

 

 

(608

)

 

 

(785

)

Prepaid expenses and other assets

 

 

2,424

 

 

 

(1,549

)

Accounts payable and accrued liabilities

 

 

(3,160

)

 

 

7,439

 

Deferred revenue

 

 

(1,005

)

 

 

351

 

Other liabilities

 

 

(634

)

 

 

(679

)

Net cash provided by operating activities

 

 

8,207

 

 

 

9,018

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(4,843

)

 

 

(4,515

)

Net cash used in investing activities

 

 

(4,843

)

 

 

(4,515

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Purchases of common stock under share repurchase program

 

 

(2,527

)

 

 

 

Proceeds from revolving credit facility

 

 

15,000

 

 

 

 

Net cash provided by financing activities

 

 

12,473

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

17

 

 

 

(191

)

Net increase in cash and cash equivalents

 

 

15,854

 

 

 

4,312

 

Beginning of period

 

 

54,258

 

 

 

53,766

 

End of period

 

$

70,112

 

 

$

58,078

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

Cash paid for:

 

 

 

 

 

 

 

 

Interest

 

$

 

 

$

 

Income taxes

 

$

2,666

 

 

$

 

Supplemental schedule of noncash investing and financing activities:

 

 

 

 

 

 

 

 

Noncash investing and financing activities:

 

 

 

 

 

 

 

 

Capital expenditures incurred not yet paid

 

$

1,065

 

 

$

467

 

Stock-based compensation related to capital expenditures

 

$

113

 

 

$

336

 

 

The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

 

 

6


ORBCOMM Inc.

Condensed Consolidated Statements of Changes in Equity

Three Months Ended March 31, 2020 and 2019

(in thousands, except share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A convertible

 

 

 

 

 

 

 

 

 

 

Additional

 

 

other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

Common stock

 

 

paid-in

 

 

comprehensive

 

 

Accumulated

 

 

Treasury stock

 

 

Noncontrolling

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

capital

 

 

income (loss)

 

 

deficit

 

 

Shares

 

 

Amount

 

 

interests

 

 

equity

 

Balances, January 1, 2020

 

 

40,624

 

 

$

406

 

 

 

78,062,451

 

 

$

78

 

 

$

447,681

 

 

$

(1,013

)

 

$

(210,942

)

 

 

 

 

$

 

 

$

1,306

 

 

$

237,516

 

Vesting of restricted stock units

 

 

 

 

 

 

 

 

421,642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,775

 

Common stock repurchased

  under share repurchase program

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25

)

 

 

 

 

 

 

 

 

836,904

 

 

 

(2,502

)

 

 

 

 

 

(2,527

)

Exercise of SARs

 

 

 

 

 

 

 

 

41,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,975

)

 

 

 

 

 

 

 

 

138

 

 

 

(6,837

)

Foreign currency

   translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

106

 

 

 

 

 

 

 

 

 

 

 

 

(43

)

 

 

63

 

Balances, March 31, 2020

 

 

40,624

 

 

$

406

 

 

 

78,525,184

 

 

$

78

 

 

$

449,431

 

 

$

(907

)

 

$

(217,917

)

 

 

836,904

 

 

$

(2,502

)

 

$

1,401

 

 

$

229,990

 

Balances, January 1, 2019

 

 

39,442

 

 

$

394

 

 

 

79,008,243

 

 

$

79

 

 

$

449,343

 

 

$

(381

)

 

$

(192,507

)

 

 

29,990

 

 

$

(96

)

 

$

1,026

 

 

$

257,858

 

Vesting of restricted stock units

 

 

 

 

 

 

 

 

496,336

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,395

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,395

 

Common stock issued as

   payment for MPUs

 

 

 

 

 

 

 

 

60,885

 

 

 

 

 

 

502