Viasat Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

vsat-10q_20200930.htm

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 September 30, 2020.

☐

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 (000-21767)

VIASAT, INC.

(Exact name of registrant as specified in its charter)

Delaware

33-0174996

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

6155 El Camino Real

Carlsbad, California 92009

(760) 476-2200

(Address of principal executive offices and telephone number)

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

(Title of Each Class)		(Trading Symbol)		(Name of Each Exchange on which Registered)
Common Stock, par value $0.0001 per share		VSAT		The Nasdaq Stock Market LLC

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 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 ☒

The number of shares outstanding of the registrant’s common stock, $0.0001 par value, as of October 23, 2020 was 67,532,889.

VIASAT, INC.

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)		3
Condensed Consolidated Balance Sheets		3
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)		4
Condensed Consolidated Statements of Cash Flows		5
Condensed Consolidated Statements of Equity		6
Notes to the Condensed Consolidated Financial Statements		8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		34
Item 3. Quantitative and Qualitative Disclosures About Market Risk		58
Item 4. Controls and Procedures		59
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		59
Item 1A. Risk Factors		59
Item 6. Exhibits		60
Signatures		61

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

VIASAT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	As of September 30, 2020			As of March 31, 2020
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	350,433		$	304,309
Accounts receivable, net		249,581			330,698
Inventories		332,927			294,416
Prepaid expenses and other current assets		108,178			116,281
Total current assets		1,041,119			1,045,704

Property, equipment and satellites, net		2,848,640			2,586,735
Operating lease right-of-use assets		339,770			308,441
Other acquired intangible assets, net		12,030			14,439
Goodwill		121,765			121,197
Other assets		840,072			807,352
Total assets	$	5,203,396		$	4,883,868
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	169,264		$	183,601
Accrued and other liabilities		423,018			391,190
Current portion of long-term debt		32,301			29,788
Total current liabilities		624,583			604,579

Senior notes		1,681,773			1,285,497
Other long-term debt		132,904			536,166
Non-current operating lease liabilities		313,085			286,550
Other liabilities		143,360			120,934
Total liabilities		2,895,705			2,833,726
Commitments and contingencies (Note 9)
Equity:
Viasat, Inc. stockholders’ equity
Common stock		7			6
Paid-in capital		2,047,525			1,788,456
Retained earnings		234,947			245,373
Accumulated other comprehensive loss		(2,433	)		(6,048	)
Total Viasat, Inc. stockholders’ equity		2,280,046			2,027,787
Noncontrolling interest in subsidiary		27,645			22,355
Total equity		2,307,691			2,050,142
Total liabilities and equity	$	5,203,396		$	4,883,868

See accompanying notes to the condensed consolidated financial statements.

VIASAT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

	Three Months Ended						Six Months Ended
	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
	(In thousands, except per share data)
Revenues:
Product revenues	$	255,980		$	306,830		$	506,614		$	570,445
Service revenues		298,298			285,426			578,152			558,848
Total revenues		554,278			592,256			1,084,766			1,129,293
Operating expenses:
Cost of product revenues		191,890			223,075			379,782			420,015
Cost of service revenues		195,423			187,024			393,100			374,543
Selling, general and administrative		125,451			127,391			246,490			252,523
Independent research and development		27,531			34,314			55,167			67,788
Amortization of acquired intangible assets		1,300			2,027			2,858			4,064
Income from operations		12,683			18,425			7,369			10,360
Other income (expense):
Interest income		128			413			360			1,338
Interest expense		(9,790	)		(9,540	)		(19,314	)		(20,714	)
Income (loss) before income taxes		3,021			9,298			(11,585	)		(9,016	)
Benefit from (provision for) income taxes		687			(2,390	)		6,435			4,820
Equity in (loss) income of unconsolidated affiliate, net		(317	)		1,154			14			2,521
Net income (loss)		3,391			8,062			(5,136	)		(1,675	)
Less: net income attributable to noncontrolling interest, net of tax		1,428			4,868			5,290			6,599
Net income (loss) attributable to Viasat, Inc.	$	1,963		$	3,194		$	(10,426	)	$	(8,274	)
Basic net income (loss) per share attributable to Viasat, Inc. common stockholders	$	0.03		$	0.05		$	(0.16	)	$	(0.14	)
Diluted net income (loss) per share attributable to Viasat, Inc. common stockholders	$	0.03		$	0.05		$	(0.16	)	$	(0.14	)
Shares used in computing basic net income (loss) per share		66,576			61,480			64,554			61,200
Shares used in computing diluted net income (loss) per share		67,006			62,761			64,554			61,200
Comprehensive income (loss):
Net income (loss)	$	3,391		$	8,062		$	(5,136	)	$	(1,675	)
Other comprehensive income (loss), net of tax:
Unrealized gain on hedging, net of tax		—			3			—			48
Foreign currency translation adjustments, net of tax		4,418			(1,436	)		3,615			(3,720	)
Other comprehensive income (loss), net of tax		4,418			(1,433	)		3,615			(3,672	)
Comprehensive income (loss)		7,809			6,629			(1,521	)		(5,347	)
Less: comprehensive income attributable to noncontrolling interest, net of tax		1,428			4,868			5,290			6,599
Comprehensive income (loss) attributable to Viasat, Inc.	$	6,381		$	1,761		$	(6,811	)	$	(11,946	)

See accompanying notes to the condensed consolidated financial statements.

VIASAT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six Months Ended
	September 30, 2020			September 30, 2019
	(In thousands)
Cash flows from operating activities:
Net loss	$	(5,136	)	$	(1,675	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation		157,939			135,144
Amortization of intangible assets		31,675			31,206
Stock-based compensation expense		43,328			42,328
Loss on disposition of fixed assets		17,678			23,566
Other non-cash adjustments		(2,354	)		(4,023	)
Increase (decrease) in cash resulting from changes in operating assets and liabilities:
Accounts receivable		73,856			893
Inventories		(38,034	)		(34,091	)
Other assets		19,513			(6,403	)
Accounts payable		(14,481	)		5,582
Accrued liabilities		52,510			(2,292	)
Other liabilities		(2,972	)		(6,943	)
Net cash provided by operating activities		333,522			183,292
Cash flows from investing activities:
Purchase of property, equipment and satellites		(426,298	)		(329,558	)
Cash paid for patents, licenses and other assets		(33,586	)		(35,445	)
Proceeds from insurance claims on ViaSat-2 satellite		—			2,277
Net cash used in investing activities		(459,884	)		(362,726	)
Cash flows from financing activities:
Proceeds from debt borrowings		400,000			—
Payments of debt borrowings		(402,940	)		(14,821	)
Payment of debt issuance costs		(4,882	)		(2,479	)
Proceeds from issuance of common stock under equity plans		9,206			27,016
Purchase of common stock in treasury (immediately retired) related to tax withholdings for stock-based compensation		(747	)		(3,128	)
Proceeds from common stock issued in private placement, net of issuance costs		174,749			—
Other financing activities		(3,454	)		(1,368	)
Net cash provided by financing activities		171,932			5,220
Effect of exchange rate changes on cash		554			(442	)
Net increase (decrease) in cash and cash equivalents		46,124			(174,656	)
Cash and cash equivalents at beginning of period		304,309			261,701
Cash and cash equivalents at end of period	$	350,433		$	87,045

See accompanying notes to the condensed consolidated financial statements.

VIASAT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(UNAUDITED)

	Viasat, Inc. Stockholders
	Common Stock
	Number of Shares Issued		Amount		Paid-in Capital			Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interest in Subsidiary		Total
	(In thousands, except share data)
For the Three Months Ended September 30, 2020
Balance at June 30, 2020		63,026,001	$	6	$	1,846,827		$	232,984	$	(6,851	)	$	26,217	$	2,099,183
Common stock issued in private placement, net of issuance costs		4,474,559		1		174,748			—		—			—		174,749
Stock-based compensation		—		—		26,296			—		—			—		26,296
RSU awards vesting, net of shares withheld for taxes which have been retired		32,309		—		(346	)		—		—			—		(346	)
Net income		—		—		—			1,963

Price	75.27	EPS	-0
Shares	63	P/E	-670
MCap	4,724	P/FCF	16
Net Debt	1,411	EBIT	31
TEV	6,135	TEV/EBIT	196
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-11-06
10-Q	2020-06-30	Filed 2020-08-07
10-K	2020-03-31	Filed 2020-05-29
10-Q	2019-12-31	Filed 2020-02-10
10-Q	2019-09-30	Filed 2019-11-12
10-Q	2019-06-30	Filed 2019-08-09
10-K	2019-03-31	Filed 2019-05-29
10-Q	2018-12-31	Filed 2019-02-11
10-Q	2018-09-30	Filed 2018-11-07
10-Q	2018-06-30	Filed 2018-08-09
10-K	2018-03-31	Filed 2018-05-30
10-Q	2017-12-31	Filed 2018-02-09
10-Q	2017-09-30	Filed 2017-11-09
10-Q	2017-06-30	Filed 2017-08-09
10-K	2017-03-31	Filed 2017-05-25
10-Q	2016-12-31	Filed 2017-02-09
10-Q	2016-09-30	Filed 2016-11-09
10-Q	2016-06-30	Filed 2016-08-09
10-K	2016-03-31	Filed 2016-05-26
10-Q	2015-12-31	Filed 2016-02-09
10-Q	2015-09-30	Filed 2015-11-09
10-Q	2015-06-30	Filed 2015-08-10
10-K	2015-04-03	Filed 2015-05-26
10-Q	2015-01-02	Filed 2015-02-11
10-Q	2014-10-03	Filed 2014-11-12
10-Q	2014-07-04	Filed 2014-08-13
10-K	2014-04-04	Filed 2014-05-27
10-Q	2014-01-03	Filed 2014-02-12
10-Q	2013-10-04	Filed 2013-11-13
10-Q	2013-06-28	Filed 2013-08-07
10-K	2013-03-29	Filed 2013-05-24
10-Q	2012-12-28	Filed 2013-02-06
10-Q	2012-09-28	Filed 2012-11-07
10-Q	2012-06-29	Filed 2012-08-08
10-K	2012-03-30	Filed 2012-05-25
10-Q	2011-12-30	Filed 2012-02-08
10-Q	2011-09-30	Filed 2011-11-09
10-Q	2011-07-01	Filed 2011-08-10
10-K	2011-04-01	Filed 2011-05-27
10-Q	2010-12-31	Filed 2011-02-09
10-Q	2010-10-01	Filed 2010-11-10
10-Q	2010-07-02	Filed 2010-08-11
10-K	2010-04-02	Filed 2010-06-01
10-Q	2010-01-01	Filed 2010-02-10

8-K	2020-11-03	Earnings, Officers, Other Events, Exhibits
8-K	2020-09-03	Officers, Shareholder Vote, Exhibits
8-K	2020-08-06	Earnings, Exhibits
8-K	2020-07-23	Sale of Shares, Regulation FD, Exhibits
8-K	2020-06-24
8-K	2020-06-17
8-K	2020-06-17
8-K	2020-05-26
8-K	2020-03-19
8-K	2020-02-06
8-K	2020-02-03
8-K	2019-11-25
8-K	2019-11-07
8-K	2019-09-04
8-K	2019-08-08
8-K	2019-05-23
8-K	2019-03-27
8-K	2019-03-20
8-K	2019-03-19
8-K	2019-02-28
8-K	2019-02-07
8-K	2019-01-18
8-K	2018-11-01
8-K	2018-10-03
8-K	2018-09-06
8-K	2018-08-09
8-K	2018-07-17
8-K	2018-05-24
8-K	2018-02-08
8-K	2018-01-08

EX-31.1	vsat-ex311_8.htm
EX-31.2	vsat-ex312_7.htm
EX-32.1	vsat-ex321_6.htm

VSAT 10Q Quarterly Report

Viasat Earnings 2020-09-30