Provides 2024 Financial Guidance and Updates
Long-Term Targets
Total Revenue of $97.8 million, down 10% Year-over-Year; Record
Fourth Quarter Service Revenue of $80.9
million, up 5% Year-over-Year
Q4 Net Income of $14.5 million; Adjusted
EBITDA(1) of $35.1
million
BROOMFIELD, Colo., Feb. 28,
2024 /PRNewswire/ -- Gogo Inc. (NASDAQ: GOGO) ("Gogo"
or the "Company"), the world's largest provider of broadband
connectivity services for the business aviation market, today
announced its financial results for the quarter ended
December 31, 2023.
Q4 2023 Highlights
- Total revenue of $97.8 million
decreased 10% compared to Q4 2022.
- Record service revenue of $80.9
million increased 5% compared to Q4 2022 and 2% compared to
Q3 2023.
- Equipment revenue of $16.9
million decreased 45% compared to Q4 2022 and decreased 8%
compared to Q3 2023.
- AVANCE equipment units shipped totaled 202, a decrease of 48%
compared to Q4 2022 and an increase of 5% compared to Q3 2023.
- Total ATG aircraft online ("AOL") reached 7,205, an increase of
4% compared to Q4 2022 and an increase of 1% compared to Q3
2023.
- Total AVANCE AOL grew to 3,976,
an increase of 21% compared to Q4 2022 and 5% compared to Q3 2023.
AVANCE units comprised approximately 55% of total AOL as of
December 31, 2023, up from 47% as of
December 31, 2022.
- Average Monthly Revenue per ATG aircraft online ("ARPU")
of $3,387, compared to $3,370 in Q4 2022 and $3,373 in Q3 2023.
- Net income of $14.5 million
decreased 48% from $27.7 million in
Q4 2022.
- Diluted earnings per share was $0.11 compared to $0.21 in Q4 2022.
- Adjusted EBITDA(1) of $35.1
million, which includes approximately $1.9 million of operating expenses related to
Gogo Galileo, decreased 24% compared to Q4 2022 and 19% compared to
Q3 2023.
- Cash provided by operating activities of $26.2 million in Q4 2023 decreased from
$31.5 million in the prior year
period.
- Record Free Cash Flow(1) of $28.4 million in Q4 2023, an increase from
$25.0 million in the prior-year
period.
- Cash, cash equivalents and short-term investments totaled
$139.0 million as of December 31, 2023 compared to $110.8 million as of September 30, 2023.
- In Q4 2023, the Company repurchased approximately 480,000
shares for a total cost of approximately $4.8 million. In January, the Company repurchased
approximately 566,000 shares for a total cost of approximately
$5.2 million.
- Gogo signed a new 10-year connectivity agreement with
NetJets.
Full Year 2023 Highlights
- Total revenue of $397.6 million
decreased 2% compared to 2022.
- Record service revenue of $318.0
million increased 7% compared to 2022.
- Equipment revenue of $79.6
million decreased 26% compared to 2022.
- ARPU of $3,380 increased 1%
compared to 2022.
- Net income increased to $145.7
million compared to $92.1
million in 2022. The 2023 fiscal year includes a
$48.1 million tax benefit.
- Adjusted EBITDA(1) of $162.1
million decreased 7% compared to 2022.
- Cash provided by operating activities decreased to $79.0 million compared to $103.4 million in 2022.
- Free Cash Flow(1) increased to $82.7 million compared to $57.8 million in 2022.
"The launches of Gogo Galileo and Gogo 5G later this year will
provide order-of-magnitude improvements in the network speeds we
deliver to customers and significantly increase our global total
addressable market," said Oakleigh
Thorne, Chairman and CEO. "And our LTE replacement program
will drive conversion of our Classic product customers to our
AVANCE platform, which will provide them with easy upgrade pathways
to 5G and Galileo in the future."
"Gogo's ability to reiterate its $150
million to $200 million Free
Cash Flow target in 2025 and target long-term revenue growth of
approximately 15-17% from 2023-2028 is supported by our upcoming
product roll outs, Gogo Galileo and Gogo 5G," said Jessi Betjemann, Executive Vice President and
CFO. "Gogo's strategic investments will decline significantly after
2024, allowing for further flexibility for the return of capital to
shareholders."
2024 Financial Guidance and Long-Term Financial
Targets
The Company provides the following guidance for 2024, which
includes the impact of the Federal Communications Commission's
Secure and Trusted Communications Networks Reimbursement Program
("FCC Reimbursement Program").
- Total revenue in the range of $410
million to $425 million.
- Adjusted EBITDA(1) in the range of $110 million to $125
million reflecting operating expenses of approximately
$40 million for strategic and
operational initiatives including Gogo 5G and Gogo Galileo and
$4 million in legal expenses tied to
the SmartSky litigation.
- Free Cash Flow(1) in the range of $20 million to $40
million, which includes $45
million in reimbursements tied to the FCC Reimbursement
Program.
- Capital expenditures of approximately $45 million including $25
million for strategic initiatives including Gogo 5G, Gogo
Galileo and the LTE network build.
The Company provides the following long-term financial
targets:
- Revenue growth at a compound annual growth rate of
approximately 15%-17% from 2023 through 2028 versus the prior
target of 15-17% from 2022 through 2027. The Company continues
to expect that Gogo Galileo will contribute revenue beginning in
2025.
- Annual Adjusted EBITDA Margin(1) reaching 40% in
2028 versus the prior target in the mid-40% range in
2027.
- Reiterates Free Cash Flow(1) in the range of
$150 million to $200 million in 2025, without the effect of the
FCC Reimbursement program.
(1) See "Non-GAAP Financial Measures" below
Conference Call
The Company will host its fourth quarter conference call on
February 28, 2024 at 8:30 a.m. ET. A live webcast of the conference
call, as well as a replay, will be available online on the Investor
Relations section of the Company's investor website at
https://ir.gogoair.com.
Participants can also join the call by dialing +1 844-543-0451
(within the United States and
Canada). Please use the
below link to retrieve your unique conference ID to use to access
the earnings call.
https://register.vevent.com/register/BI3011162f8c914b139642ae3b02fcf993
Non-GAAP Financial Measures
We report certain non-GAAP financial measurements, including
Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow in the
discussion above. Management uses Adjusted EBITDA, Adjusted EBITDA
Margin and Free Cash Flow for business planning purposes, including
managing our business against internally projected results of
operations and measuring our performance and liquidity. These
supplemental performance measures also provide another basis for
comparing period-to-period results by excluding potential
differences caused by non-operational and unusual or non-recurring
items. These supplemental performance measurements may vary from
and may not be comparable to similarly titled measures used by
other companies. Adjusted EBITDA, Adjusted EBITDA Margin and Free
Cash Flow are not recognized measurements under accounting
principles generally accepted in the
United States, or GAAP. When analyzing our performance with
Adjusted EBITDA or Adjusted EBITDA Margin or liquidity with Free
Cash Flow, as applicable, investors should (i) evaluate each
adjustment in our reconciliation to the corresponding GAAP measure,
and the explanatory footnotes regarding those adjustments, (ii) use
Adjusted EBITDA and Adjusted EBITDA Margin in addition to, and not
as an alternative to, net income (loss) attributable to common
stock as a measure of operating results, and (iii) use Free Cash
Flow in addition to, and not as an alternative to, consolidated net
cash provided by (used in) operating activities when evaluating our
liquidity. No reconciliation of the forecasted amounts of Adjusted
EBITDA for fiscal 2024, Adjusted EBITDA Margin for fiscal 2028 or
Free Cash Flow for fiscal 2025 is included in this release because
we are unable to quantify certain amounts that would be required to
be included in the corresponding GAAP measure without unreasonable
efforts, due to high variability and complexity with respect to
estimating certain forward-looking amounts, and we believe such
reconciliation would imply a degree of precision that would be
confusing or misleading to investors.
Cautionary Note Regarding Forward-Looking
Statements
Certain disclosures in this press release and
related comments by our management include forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include,
without limitation, statements regarding our business outlook,
industry, business strategy, plans, goals and expectations
concerning our market position, international expansion, future
technologies, future operations, margins, profitability, future
efficiencies, capital expenditures, liquidity and capital resources
and other financial and operating information. When used in this
discussion, the words "anticipate," "assume," "believe," "budget,"
"continue," "could," "estimate," "expect," "forecast," "intend,"
"may," "plan," "potential," "predict," "project," "should," "will,"
"future" and the negative of these or similar terms and phrases are
intended to identify forward-looking statements in this press
release. Forward-looking statements are based on our current
expectations regarding future events, results or outcomes. These
expectations may or may not be realized. Although we believe the
expectations reflected in the forward-looking statements are
reasonable, we can give you no assurance these expectations will
prove to have been correct. Some of these expectations may be based
upon assumptions, data or judgments that prove to be incorrect.
Actual events, results and outcomes may differ materially from our
expectations due to a variety of known and unknown risks,
uncertainties and other factors. Although it is not possible to
identify all of these risks and factors, they include, among
others, the following: our ability to continue to generate revenue
from the provision of our connectivity services; our reliance on
our key OEMs and dealers for equipment sales; the impact of
competition; our reliance on third parties for equipment components
and services; the impact of global supply chain and logistics
issues and inflationary trends; our ability to expand our business
outside of the United States; our
ability to recruit, train and retain highly skilled employees; the
impact of pandemics or other outbreaks of contagious diseases, and
the measures implemented to combat them; the impact of adverse
economic conditions; our ability to fully utilize portions of our
deferred tax assets; the impact of increased attention to climate
change, ESG matters and conservation measures; our ability to
evaluate or pursue strategic opportunities; our ability to develop
and deploy Gogo 5G, Gogo Galileo or other next generation
technologies; our ability to maintain our rights to use our
licensed 3Mhz of ATG spectrum in the
United States and obtain rights to additional spectrum if
needed; the impact of service interruptions or delays, technology
failures, equipment damage or system disruptions or failures; the
impact of assertions by third parties of infringement,
misappropriation or other violations; our ability to innovate and
provide products and services; our ability to protect our
intellectual property rights; the impact of our use of open-source
software; the impact of equipment failure or material defects or
errors in our software; our ability to comply with applicable
foreign ownership limitations; the impact of government regulation
of communication networks, and the internet; our possession and use
of personal information; risks associated with participation in the
FCC Reimbursement Program; our ability to comply with anti-bribery,
anti-corruption and anti-money laundering laws; the extent of
expenses, liabilities or business disruptions resulting from
litigation; the impact of global climate change and legal,
regulatory or market responses to it; the impact of our substantial
indebtedness;
our ability to obtain additional financing to refinance or
repay our existing indebtedness; the impact of restrictions and
limitations in the agreements and instruments governing our debt;
the impact of increases in interest rates; the impact of a
substantial portion of our indebtedness being secured by
substantially all of our assets; the impact of a downgrade,
suspension or withdrawal of the rating assigned by a rating agency;
the volatility of our stock price; our ability to fully utilize our
tax losses; the dilutive impact of future stock issuances; the
impact of our stockholder concentration and of our CEO and Chair of
the Board being a significant stockholder; our ability to fulfill
our obligations associated with being a public company; and the
impact of anti-takeover provisions, ownership provisions and
certain other provisions in our charter, our bylaws, Delaware law, and our existing and any future
credit facilities.
Additional information concerning these and other factors can
be found under the caption "Risk Factors" in our annual report on
Form 10-K for the year ended December 31,
2023 as filed with the Securities and Exchange Commission
("SEC") on February 28, 2024 and in
our subsequent quarterly reports on Form 10-Q as filed with the
SEC.
Any one of these factors or a combination of these factors
could materially affect our financial condition or future results
of operations and could influence whether any forward-looking
statements contained in this report ultimately prove to be
accurate. Our forward-looking statements are not guarantees of
future performance, and you should not place undue reliance on
them. All forward-looking statements speak only as of the date made
and we undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
About Gogo
Gogo is the world's largest provider of
broadband connectivity services for the business aviation
market. We offer a customizable suite of smart cabin systems
for highly integrated connectivity, inflight entertainment and
voice solutions. Gogo's products and services are installed on
thousands of business aircraft of all sizes and mission types from
turboprops to the largest global jets, and are utilized by the
largest fractional ownership operators, charter operators,
corporate flight departments and individuals.
As of December 31, 2023, Gogo
reported 7,205 business aircraft flying with its broadband ATG
systems onboard, 3,976 of which are flying with a Gogo AVANCE L5 or
L3 system; and 4,341 aircraft with narrowband satellite
connectivity installed. Connect with us at www.gogoair.com.
Gogo Inc. and
Subsidiaries
Unaudited Condensed
Consolidated Statements of Operations
(in thousands,
except per share amounts)
|
|
|
|
|
|
For the Three
Months
Ended December 31,
|
|
|
For the Years
Ended December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
|
80,908
|
|
|
$
|
77,346
|
|
|
$
|
318,015
|
|
|
$
|
296,329
|
|
Equipment
revenue
|
|
|
16,902
|
|
|
|
30,817
|
|
|
|
79,562
|
|
|
|
107,738
|
|
Total
revenue
|
|
|
97,810
|
|
|
|
108,163
|
|
|
|
397,577
|
|
|
|
404,067
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service
revenue (exclusive of items shown below)
|
|
|
17,836
|
|
|
|
16,744
|
|
|
|
69,568
|
|
|
|
64,427
|
|
Cost of equipment
revenue (exclusive of items shown below)
|
|
|
15,400
|
|
|
|
21,063
|
|
|
|
63,383
|
|
|
|
71,473
|
|
Engineering, design
and development
|
|
|
10,424
|
|
|
|
8,241
|
|
|
|
36,683
|
|
|
|
29,587
|
|
Sales and
marketing
|
|
|
8,049
|
|
|
|
6,932
|
|
|
|
29,797
|
|
|
|
25,471
|
|
General and
administrative
|
|
|
16,546
|
|
|
|
13,914
|
|
|
|
57,280
|
|
|
|
58,203
|
|
Depreciation and
amortization
|
|
|
4,679
|
|
|
|
2,574
|
|
|
|
16,701
|
|
|
|
12,580
|
|
Total operating
expenses
|
|
|
72,934
|
|
|
|
69,468
|
|
|
|
273,412
|
|
|
|
261,741
|
|
Operating
income
|
|
|
24,876
|
|
|
|
38,695
|
|
|
|
124,165
|
|
|
|
142,326
|
|
Other expense
(income):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
(1,894)
|
|
|
|
(1,455)
|
|
|
|
(7,403)
|
|
|
|
(2,386)
|
|
Interest
expense
|
|
|
8,249
|
|
|
|
9,430
|
|
|
|
33,056
|
|
|
|
38,872
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
2,224
|
|
|
|
—
|
|
Other (income)
expense, net
|
|
|
(582)
|
|
|
|
11
|
|
|
|
(1,315)
|
|
|
|
123
|
|
Total other
expense
|
|
|
5,773
|
|
|
|
7,986
|
|
|
|
26,562
|
|
|
|
36,609
|
|
Income before income
taxes
|
|
|
19,103
|
|
|
|
30,709
|
|
|
|
97,603
|
|
|
|
105,717
|
|
Income tax (benefit)
provision
|
|
|
4,636
|
|
|
|
3,039
|
|
|
|
(48,075)
|
|
|
|
13,658
|
|
Net
income
|
|
$
|
14,467
|
|
|
$
|
27,670
|
|
|
$
|
145,678
|
|
|
$
|
92,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common stock per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.11
|
|
|
$
|
0.22
|
|
|
$
|
1.12
|
|
|
$
|
0.75
|
|
Diluted
|
|
$
|
0.11
|
|
|
$
|
0.21
|
|
|
$
|
1.09
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
130,061
|
|
|
|
128,447
|
|
|
|
129,753
|
|
|
|
123,268
|
|
Diluted
|
|
|
132,931
|
|
|
|
133,053
|
|
|
|
133,283
|
|
|
|
133,923
|
|
Gogo Inc. and
Subsidiaries
Unaudited Condensed
Consolidated Balance Sheets
(in
thousands)
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
139,036
|
|
|
$
|
150,550
|
|
Short-term
investments
|
|
|
-
|
|
|
|
24,796
|
|
Total cash,
cash-equivalents and short-term investments
|
|
|
139,036
|
|
|
|
175,346
|
|
Accounts receivable,
net of allowances of $2,091 and $1,778, respectively
|
|
|
48,233
|
|
|
|
54,210
|
|
Inventories
|
|
|
63,187
|
|
|
|
49,493
|
|
Prepaid expenses and
other current assets
|
|
|
64,138
|
|
|
|
45,100
|
|
Total current
assets
|
|
|
314,594
|
|
|
|
324,149
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
98,129
|
|
|
|
104,595
|
|
Intangible assets,
net
|
|
|
55,647
|
|
|
|
49,509
|
|
Operating lease
right-of-use assets
|
|
|
70,552
|
|
|
|
75,261
|
|
Other non-current
assets, net of allowances of $591 and $501, respectively
|
|
|
25,979
|
|
|
|
43,355
|
|
Deferred income
taxes
|
|
|
216,638
|
|
|
|
162,657
|
|
Total non-current
assets
|
|
|
466,945
|
|
|
|
435,377
|
|
Total
assets
|
|
$
|
781,539
|
|
|
$
|
759,526
|
|
Liabilities and
stockholders' equity (deficit)
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
16,094
|
|
|
$
|
13,646
|
|
Accrued
liabilities
|
|
|
47,649
|
|
|
|
60,056
|
|
Deferred
revenue
|
|
|
1,003
|
|
|
|
3,418
|
|
Current portion of
long-term debt
|
|
|
7,250
|
|
|
|
7,250
|
|
Total current
liabilities
|
|
|
71,996
|
|
|
|
84,370
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Long-term
debt
|
|
|
587,501
|
|
|
|
690,173
|
|
Non-current operating
lease liabilities
|
|
|
73,047
|
|
|
|
79,241
|
|
Other non-current
liabilities
|
|
|
8,270
|
|
|
|
7,611
|
|
Total non-current
liabilities
|
|
|
668,818
|
|
|
|
777,025
|
|
Total
liabilities
|
|
|
740,814
|
|
|
|
861,395
|
|
Stockholders' equity
(deficit)
|
|
|
|
|
|
|
Common
stock
|
|
|
14
|
|
|
|
14
|
|
Additional paid-in
capital
|
|
|
1,402,003
|
|
|
|
1,385,933
|
|
Accumulated other
comprehensive income
|
|
|
15,796
|
|
|
|
30,128
|
|
Treasury stock, at
cost
|
|
|
(163,197)
|
|
|
|
(158,375)
|
|
Accumulated
deficit
|
|
|
(1,213,891)
|
|
|
|
(1,359,569)
|
|
Total stockholders'
equity (deficit)
|
|
|
40,725
|
|
|
|
(101,869)
|
|
Total liabilities
and stockholders' equity (deficit)
|
|
$
|
781,539
|
|
|
$
|
759,526
|
|
Gogo Inc. and
Subsidiaries
Unaudited Condensed
Consolidated Statements of Cash Flows
(in
thousands)
|
|
|
|
For the Years
Ended December 31,
|
|
|
|
2023
|
|
|
2022
|
|
Operating
activities:
|
|
|
|
|
|
|
Net
income
|
|
$
|
145,678
|
|
|
$
|
92,059
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
16,701
|
|
|
|
12,580
|
|
Loss on asset
disposals, abandonments and write-downs
|
|
|
362
|
|
|
|
1,577
|
|
Provision for expected
credit losses
|
|
|
1,233
|
|
|
|
1,047
|
|
Deferred income
taxes
|
|
|
(49,172)
|
|
|
|
13,170
|
|
Stock-based
compensation expense
|
|
|
21,288
|
|
|
|
19,065
|
|
Amortization of
deferred financing costs and interest rate caps
|
|
|
3,894
|
|
|
|
3,215
|
|
Accretion of debt
discount
|
|
|
403
|
|
|
|
456
|
|
Gain on sale of equity
investment
|
|
|
(1,343)
|
|
|
|
—
|
|
Loss on extinguishment
of debt
|
|
|
2,224
|
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
4,833
|
|
|
|
(17,482)
|
|
Inventories
|
|
|
(13,694)
|
|
|
|
(15,517)
|
|
Prepaid expenses and
other current assets
|
|
|
(49,891)
|
|
|
|
8,351
|
|
Contract
assets
|
|
|
3,217
|
|
|
|
(2,164)
|
|
Accounts
payable
|
|
|
3,658
|
|
|
|
(2,540)
|
|
Accrued
liabilities
|
|
|
4,351
|
|
|
|
(12,031)
|
|
Deferred
revenue
|
|
|
(2,411)
|
|
|
|
1,589
|
|
Accrued
interest
|
|
|
(9,409)
|
|
|
|
3,647
|
|
Other non-current
assets and liabilities
|
|
|
(2,952)
|
|
|
|
(3,617)
|
|
Net cash provided
by operating activities
|
|
|
78,970
|
|
|
|
103,405
|
|
Investing
activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(16,267)
|
|
|
|
(43,914)
|
|
Acquisition of
intangible assets—capitalized software
|
|
|
(7,821)
|
|
|
|
(6,000)
|
|
Proceeds from FCC
Reimbursement Program for property, equipment and
intangibles
|
|
|
1,130
|
|
|
|
—
|
|
Proceeds from interest
rate caps
|
|
|
26,675
|
|
|
|
4,292
|
|
Redemptions of
short-term investments
|
|
|
74,179
|
|
|
|
—
|
|
Purchases of
short-term investments
|
|
|
(49,383)
|
|
|
|
(24,796)
|
|
Purchase of equity
investment
|
|
|
(5,000)
|
|
|
|
—
|
|
Proceeds from sale of
equity investment
|
|
|
6,343
|
|
|
|
—
|
|
Net cash provided
by (used in) investing activities
|
|
|
29,856
|
|
|
|
(70,418)
|
|
Financing
activities:
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
|
(4,822)
|
|
|
|
(18,375)
|
|
Payments on term
loan
|
|
|
(107,250)
|
|
|
|
(7,250)
|
|
Payments on finance
leases
|
|
|
(132)
|
|
|
|
(184)
|
|
Stock-based
compensation activity
|
|
|
(8,230)
|
|
|
|
(2,579)
|
|
Net cash used in
financing activities
|
|
|
(120,434)
|
|
|
|
(28,388)
|
|
Effect of foreign
exchange rate changes on cash
|
|
|
94
|
|
|
|
13
|
|
(Decrease) increase
in cash, cash equivalents and restricted cash
|
|
|
(11,514)
|
|
|
|
4,612
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
|
150,880
|
|
|
|
146,268
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
139,366
|
|
|
$
|
150,880
|
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$
|
139,366
|
|
|
$
|
150,880
|
|
Less: current
restricted cash
|
|
|
—
|
|
|
|
—
|
|
Less: non-current
restricted cash
|
|
|
330
|
|
|
|
330
|
|
Cash and cash
equivalents at end of period
|
|
$
|
139,036
|
|
|
$
|
150,550
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
68,145
|
|
|
$
|
41,209
|
|
Cash paid for
taxes
|
|
|
1,004
|
|
|
|
377
|
|
Non-cash investing
activities:
|
|
|
|
|
|
|
Purchases of property
and equipment in current liabilities
|
|
$
|
4,801
|
|
|
$
|
10,688
|
|
Gogo Inc. and
Subsidiaries
Supplemental
Information – Key Operating Metrics
|
|
|
|
For the Three
Months
Ended December 31,
|
|
|
For the Years
Ended December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Aircraft online (at
period end)
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG AVANCE
|
|
|
3,976
|
|
|
|
3,279
|
|
|
|
3,976
|
|
|
|
3,279
|
|
Gogo Biz
|
|
|
3,229
|
|
|
|
3,656
|
|
|
|
3,229
|
|
|
|
3,656
|
|
Total ATG
|
|
|
7,205
|
|
|
|
6,935
|
|
|
|
7,205
|
|
|
|
6,935
|
|
Narrowband
satellite
|
|
|
4,341
|
|
|
|
4,475
|
|
|
|
4,341
|
|
|
|
4,475
|
|
Average monthly
connectivity service revenue per aircraft online
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
$
|
3,387
|
|
|
$
|
3,370
|
|
|
$
|
3,380
|
|
|
$
|
3,349
|
|
Narrowband
satellite
|
|
|
301
|
|
|
|
284
|
|
|
|
298
|
|
|
|
268
|
|
Units sold
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
|
202
|
|
|
|
390
|
|
|
|
894
|
|
|
|
1,334
|
|
Narrowband
satellite
|
|
|
42
|
|
|
|
62
|
|
|
|
174
|
|
|
|
206
|
|
Average equipment
revenue per unit sold (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
ATG
|
|
$
|
69
|
|
|
$
|
67
|
|
|
$
|
72
|
|
|
$
|
68
|
|
Narrowband
satellite
|
|
|
38
|
|
|
|
44
|
|
|
|
46
|
|
|
|
49
|
|
- ATG AVANCE aircraft online. We define ATG AVANCE
aircraft online as the total number of business aircraft equipped
with our AVANCE L5 or L3 system for which we provide ATG services
as of the last day of each period presented.
- Gogo Biz aircraft online. We define Gogo Biz aircraft
online as the total number of business aircraft not equipped with
our AVANCE L5 or L3 system for which we provide ATG services as of
the last day of each period presented. This number excludes
commercial aircraft operated by Intelsat's airline customers
receiving ATG service.
- Narrowband satellite aircraft online. We define
narrowband satellite aircraft online as the total number of
business aircraft for which we provide narrowband satellite
services as of the last day of each period presented.
- Average monthly connectivity service revenue per ATG
aircraft online. We define average monthly connectivity service
revenue per ATG aircraft online as the aggregate ATG connectivity
service revenue for the period divided by the number of months in
the period, divided by the number of ATG aircraft online during the
period (expressed as an average of the month end figures for each
month in such period). Revenue share earned from the ATG Network
Sharing Agreement with Intelsat is excluded from this
calculation.
- Average monthly connectivity service revenue per narrowband
satellite aircraft online. We define average monthly
connectivity service revenue per narrowband satellite aircraft
online as the aggregate narrowband satellite connectivity service
revenue for the period divided by the number of months in the
period, divided by the number of narrowband satellite aircraft
online during the period (expressed as an average of the month end
figures for each month in such period).
- Units sold. We define units sold as the number of ATG or
narrowband satellite units for which we recognized revenue during
the period.
- Average equipment revenue per ATG unit sold. We define
average equipment revenue per ATG unit sold as the aggregate
equipment revenue from all ATG units sold during the period,
divided by the number of ATG units sold.
- Average equipment revenue per narrowband satellite unit
sold. We define average equipment revenue per narrowband
satellite unit sold as the aggregate equipment revenue earned from
all narrowband satellite units sold during the period, divided by
the number of narrowband satellite units sold.
Gogo Inc. and
Subsidiaries
Supplemental
Information – Revenue and Cost of Revenue
(in thousands,
unaudited)
|
|
|
For the Three
Months
Ended December 31,
|
|
|
%
Change
|
|
|
For the Years
Ended December 31,
|
|
|
%
Change
|
|
|
|
2023
|
|
|
2022
|
|
|
2023 over
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023 over
2022
|
|
Service
revenue
|
|
$
|
80,908
|
|
|
$
|
77,346
|
|
|
|
4.6
|
%
|
|
$
|
318,015
|
|
|
$
|
296,329
|
|
|
|
7.3
|
%
|
Equipment
revenue
|
|
|
16,902
|
|
|
|
30,817
|
|
|
|
(45.2)
|
%
|
|
|
79,562
|
|
|
|
107,738
|
|
|
|
(26.2)
|
%
|
Total
revenue
|
|
$
|
97,810
|
|
|
$
|
108,163
|
|
|
|
(9.6)
|
%
|
|
$
|
397,577
|
|
|
$
|
404,067
|
|
|
|
(1.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended December 31,
|
|
|
%
Change
|
|
|
For the Years
Ended December 31,
|
|
|
%
Change
|
|
|
|
2023
|
|
|
2022
|
|
|
2023 over
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023 over
2022
|
|
Cost of service revenue
(1)
|
|
$
|
17,836
|
|
|
$
|
16,744
|
|
|
|
6.5
|
%
|
|
$
|
69,568
|
|
|
$
|
64,427
|
|
|
|
8.0
|
%
|
Cost of equipment
revenue (1)
|
|
$
|
15,400
|
|
|
$
|
21,063
|
|
|
|
(26.9)
|
%
|
|
$
|
63,383
|
|
|
$
|
71,473
|
|
|
|
(11.3)
|
%
|
|
(1) Excludes
depreciation and amortization expense.
|
Gogo Inc. and
Subsidiaries
Reconciliation of
GAAP to Non-GAAP Measures
(in thousands,
unaudited)
|
|
|
|
For the Three
Months
Ended December 31,
|
|
|
For the Years
Ended December 31,
|
|
|
For the Three
Months Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common stock (GAAP)
|
|
$
|
14,467
|
|
|
$
|
27,670
|
|
|
$
|
145,678
|
|
|
$
|
92,059
|
|
|
$
|
20,913
|
|
Interest
expense
|
|
|
8,249
|
|
|
|
9,430
|
|
|
|
33,056
|
|
|
|
38,872
|
|
|
|
8,025
|
|
Interest
income
|
|
|
(1,894)
|
|
|
|
(1,455)
|
|
|
|
(7,403)
|
|
|
|
(2,386)
|
|
|
|
(1,622)
|
|
Income tax provision
(benefit)
|
|
|
4,636
|
|
|
|
3,039
|
|
|
|
(48,075)
|
|
|
|
13,658
|
|
|
|
6,728
|
|
Depreciation and
amortization
|
|
|
4,679
|
|
|
|
2,574
|
|
|
|
16,701
|
|
|
|
12,580
|
|
|
|
4,692
|
|
EBITDA
|
|
|
30,137
|
|
|
|
41,258
|
|
|
|
139,957
|
|
|
|
154,783
|
|
|
|
38,736
|
|
Stock-based
compensation expense
|
|
|
5,559
|
|
|
|
4,964
|
|
|
|
21,288
|
|
|
|
19,065
|
|
|
|
5,235
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
2,224
|
|
|
|
—
|
|
|
|
—
|
|
Gain on sale of equity
investment
|
|
|
(570)
|
|
|
|
—
|
|
|
|
(1,343)
|
|
|
|
—
|
|
|
|
(773)
|
|
Adjusted
EBITDA
|
|
$
|
35,126
|
|
|
$
|
46,222
|
|
|
$
|
162,126
|
|
|
$
|
173,848
|
|
|
$
|
43,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities (GAAP) (1)
|
|
$
|
26,152
|
|
|
$
|
31,466
|
|
|
$
|
78,970
|
|
|
$
|
103,405
|
|
|
$
|
18,677
|
|
Consolidated capital
expenditures (1)
|
|
|
(5,371)
|
|
|
|
(9,982)
|
|
|
|
(24,088)
|
|
|
|
(49,914)
|
|
|
|
(5,355)
|
|
Proceeds from FCC
Reimbursement Program for property, equipment and intangibles
(1)
|
|
|
1,127
|
|
|
|
—
|
|
|
|
1,130
|
|
|
|
—
|
|
|
|
3
|
|
Proceeds from interest
rate caps (1)
|
|
|
6,510
|
|
|
|
3,489
|
|
|
|
26,675
|
|
|
|
4,292
|
|
|
|
7,676
|
|
Free cash
flow
|
|
$
|
28,418
|
|
|
$
|
24,973
|
|
|
$
|
82,687
|
|
|
$
|
57,783
|
|
|
$
|
21,001
|
|
|
|
(1) See Unaudited Condensed Consolidated
Statements of Cash Flows
|
|
Gogo Inc. and
Subsidiaries
Reconciliation of Estimated Full-Year GAAP Net Cash
Provided by Operating Activities to Non-GAAP Measures
(in millions,
unaudited)
|
|
|
|
|
FY 2024
Range
|
|
|
Low
|
|
|
High
|
|
Free Cash
Flow:
|
|
|
|
|
|
Net cash provided by
operating activities (GAAP)
|
$
|
37
|
|
|
$
|
57
|
|
Consolidated capital
expenditures
|
|
(45)
|
|
|
|
(45)
|
|
Proceeds from FCC
Reimbursement Program for property, equipment and
intangibles
|
|
8
|
|
|
|
8
|
|
Proceeds from interest
rate caps
|
|
20
|
|
|
|
20
|
|
Free cash
flow
|
$
|
20
|
|
|
$
|
40
|
|
Definition of Non-GAAP Measures
EBITDA represents net income attributable to common stock
before interest expense, interest income, income taxes and
depreciation and amortization expense.
Adjusted EBITDA represents EBITDA adjusted for (i) stock-based
compensation expense, (ii) loss on extinguishment of debt and
(iii) gain on sale of equity investment . Our management believes
that the use of Adjusted EBITDA eliminates items that management
believes have less bearing on our operating performance, thereby
highlighting trends in our core business which may not otherwise be
apparent. It also provides an assessment of controllable expenses,
which are indicators management uses to determine whether current
spending decisions need to be adjusted in order to meet financial
goals and achieve optimal financial performance.
We believe that the exclusion of stock-based compensation
expense from Adjusted EBITDA provides a clearer view of the
operating performance of our business and is appropriate given that
grants made at a certain price and point in time do not necessarily
reflect how our business is performing at any particular time.
While we believe that investors should have information about any
dilutive effect of outstanding options and the cost of that
compensation, we also believe that stockholders should have the
ability to consider our performance using a non-GAAP financial
measure that excludes these costs and that management uses to
evaluate our business.
We believe it is useful for an understanding of our operating
performance to exclude the gain on sale of equity investment from
Adjusted EBITDA because this activity is not related to our
operating performance.
We believe it is useful for an understanding of our operating
performance to exclude the loss on extinguishment of debt from
Adjusted EBITDA because of the infrequently occurring nature of
this activity.
We also present Adjusted EBITDA as a supplemental performance
measure because we believe that this measure provides investors,
securities analysts and other users of our consolidated financial
statements with important supplemental information with which to
evaluate our performance and to enable them to assess our
performance on the same basis as management.
Adjusted EBITDA Margin represents Adjusted EBITDA divided by
total revenue. We present Adjusted EBITDA Margin as a supplemental
performance measure because we believe that it provides meaningful
information regarding our operating efficiency.
Free Cash Flow represents net cash provided by operating
activities, plus the proceeds received from the FCC Reimbursement
Program and the interest rate caps, less purchases of property and
equipment and the acquisition of intangible assets. We believe that
Free Cash Flow provides meaningful information regarding our
liquidity. Management believes that Free Cash Flow is useful for
investors because it provides them with an important perspective on
the cash available for strategic measures, after making necessary
capital investments in property and equipment to support the
Company's ongoing business operations and provides them with the
same measures that management uses as the basis of making capital
allocation decisions.
Investor Relations
Contact:
|
Media Relations
Contact:
|
Will Davis
|
Dave Mellin
|
+1
917-519-6994
|
+1
720-840-4788
|
wdavis@gogoair.com
|
dmellin@gogoair.com
|
|
|
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content:https://www.prnewswire.com/news-releases/gogo-announces-fourth-quarter-and-2023-results-302073606.html
SOURCE Gogo Inc.