RigNet Reports Second Quarter 2016 Earnings Results
Houston, Tex., Aug. 8, 2016 --RigNet, Inc. (NASDAQ:RNET), a provider of digital technology solutions focusing on serving energy facilities, maritime vessels and other global remote locations, today reported quarterly results for the quarter ended June 30, 2016. Quarterly revenue was US$ 54.9 million representing a decrease of US$ 7.4 million compared to the prior quarter and a decrease of US$ 20.2 million compared to the prior year quarter.
The revenue decrease compared to the prior quarter was primarily due to a $4.2 million decrease in Managed Services revenue (which consists of Eastern and Western Hemisphere reporting segments) coupled with a $3.2 million decrease in TSI. The decrease compared to the prior year quarter resulted primarily from Managed Services revenue, which decreased $14.5 million, coupled with a $5.7 million decrease in TSI. These decreases were primarily due to reduced spending by oil and gas operators on upstream drilling projects as a result of lower commodity prices.
GAAP net income (loss) attributable to common stockholders was $(4.8) million, or $(0.27) per share, compared to $(1.3) million, or $(0.08) per share, in the prior quarter and net income attributable to common stockholders of $6.0 million, or $0.34 per share, in the prior year quarter.
Quarterly Adjusted EBITDA was $8.6 million compared to $10.7 million in the prior quarter and $18.5 million in the prior year quarter. The decrease resulted primarily from lower revenue partially offset by cost containment actions.
Capital expenditures were $4.7 million compared to $4.9 million in the prior quarter and $8.1 million in the prior year quarter. Unlevered Free Cash Flow, defined as Adjusted EBITDA less capital expenditures was $4.0 million compared to $5.8 million in the prior quarter and $10.4 million in the prior year quarter.
In the quarter ended June 30, 2016, the company recorded restructuring charges of $1.1 million, $0.4 million of impairment of intangible assets, $0.2 million of CEO search costs and ERP implementation costs of $0.6 million. In the quarter ended March 31, 2016, the company recorded $1.9 million of executive departure costs, acquisition costs of $0.2 million, $0.3 million of CEO search costs, restructuring charges of ($0.6) million and ERP implementation costs of $0.4 million. The restructuring charges, impairment of intangible assets, executive departure costs and acquisition costs are added back to net income (loss) in our non-GAAP measures below.
Steven E. Pickett, chief executive officer and president, commented, "During the second quarter, our managed services business continued to feel the effects of difficult conditions in the oil and gas drilling sector. We have now embarked on a global restructuring of our business that will enable us to better focus on optimizing our business and providing best-in-class services to the energy industry. While not significant today, we are encouraged by the progress of next generation, high throughput satellite technologies and the opportunities that could accompany or follow their commercial rollout."
Related Articles:
