Boingo Wireless Reports Fourth Quarter and Full Year 2012 Financial Results

Boingo Wireless Reports Fourth Quarter and Full Year 2012 Financial Results

LOS ANGELES, Feb. 21, 2013 (GLOBE NEWSWIRE) -- Boingo Wireless, Inc.
(Nasdaq:WIFI), the world's leading Wi-Fi software and services provider, today
announced the company's financial results for the fourth quarter and full year
ended December 31, 2012.

Fourth Quarter 2012 Financial Highlights

Boingo Wireless reported revenue of $28.0 million, compared to $25.9 million
for the fourth quarter of 2011, an increase of 8.1 percent.

Net income attributable to common stockholders was $1.1 million, or $0.03 per
diluted share. This is compared to net income attributable to common
stockholders of $1.9 million, or $0.05 per diluted share, for the fourth
quarter of 2011.

Adjusted EBITDA was $7.3 million, compared to $8.9 million for the fourth
quarter of 2011, a decrease of 18.1 percent. Adjusted EBITDA, which is a
non-GAAP financial measure, is defined below and is reconciled to net income,
the most comparable measure under GAAP, in the schedule entitled
"Reconciliation of Net Income Attributable to Common Stockholders to Adjusted
EBITDA."

Full Year 2012 Financial Highlights

Boingo Wireless reported revenue of $102.5 million, compared to $94.6 million
in 2011, an increase of 8.4 percent.

Net income attributable to common stockholders was $7.0 million, or $0.19 per
diluted share. This is compared to net income attributable to common
stockholders of $4.7 million, or $0.17 per diluted share, in 2011.

Adjusted EBITDA was $30.6 million, compared to $28.6 million in 2011, an
increase of 7.3 percent.

Management Commentary

"2012 was a transition year for Boingo as we positioned our business to
capitalize on the massive growth in mobile data and the evolving wireless
ecosystem," said David Hagan, President and Chief Executive Officer of Boingo
Wireless. "Our full year performance benefited from growing and investing in
our managed and operated and affiliated footprints, adding a crowd-sourced
capability to grow our network even faster, investing in our software and
technology platform in anticipation of cellular offload and increasing ad
sales through the Cloud Nine Media acquisition. Subsequent to quarter end, we
were pleased to announce that we have entered into a merger agreement to
acquire Endeka Group, Inc. ("Endeka"), the sole provider of commercialWi-Fi
services to United States military bases and federal law enforcement training
facilities. Growth in our managed and operated footprint within new verticals
and segments is expected to contribute to the longer-term stability of our
retail platform."

Mr. Hagan continued, "As we look ahead, we are excited for 2013, which should
be a transformational year as we lay the groundwork for growth opportunities
in our wholesale and advertising businesses. Over the course of the last
decade, we have built a unique Wi-Fi and DAS business and look forward to
deploying our platform to monetize the vast opportunities ahead of us."

Operational Highlights

Key accomplishments include:

  *The announcement of a merger agreement to acquire Endeka, the sole
    provider of commercial Wi-Fi, VoIP and IPTV services tosix United
    Statesmilitary bases in the West to federal law enforcement training
    facilities.
  *Agreements to manage and operate Wi-Fi services at five airports in Japan
    -- Haneda Airport (Tokyo International Airport) (HND); Narita
    International Airport, Tokyo (NRT); New Chitose Airport, Sapporo (CTS);
    and Fukuoka Airport (FUK); and three airports in Germany -- Berlin-Tegel
    (TXL); Nuremberg (NUE); and Stuttgart (STR).
  *A sponsorship agreement with Norwegian Cruise Line for free Wi-Fi access
    at select New York subway stations and John F. Kennedy, LaGuardia and
    Newark Liberty International Airports during the month of February.
  *An expansion of a pre-existing bi-lateral roaming agreement with NTT
    DOCOMO, INC. to provide Wi-Fi roaming and data offload services onto the
    Boingo global network.
  *The release of an enhanced version of the Wi-Finder app for Apple's iOS 6
    operating system to improve the user experience and simplify connectivity
    at Boingo hotspots.
  *An award for "Best Wi-Fi Service" in Global Traveler's Annual GT Tested
    Awards, as voted by the readers of Global Traveler magazine for the second
    year in a row and the third time in the past four years.

Business Outlook

Boingo Wireless is initiating guidance for the first quarter ending March 31,
2013, as follows:

First Quarter 2013

  *Revenue is expected to be in the range of $21.0 million to $23.0 million.
  *Adjusted EBITDA is expected to be in the range of $3.5 million to $5.0
    million.
  *Net loss attributable to common stockholders is expected to be in the
    range of $1.5 million to $0.5 million, or a loss of $0.04 to $0.01 per
    diluted share.

Boingo Wireless is initiating guidance for the full year ending December 31,
2013, as follows:

Full Year 2013

  *Revenue is expected to be in the range of $106.0 million to $110.0
    million.
  *Adjusted EBITDA is expected to be in the range of $28.5 million to $31.5
    million.
  *Net income attributable to common stockholders is expected to be in the
    range of $1.0 million to $3.0 million, or $0.03 to $0.08 per diluted
    share.

Conference Call Information

Members of Boingo Wireless' management will host a conference call to discuss
its fourth quarter and full year 2012 financial results beginning at 4:30 pm
ET (1:30 pm PT), today, February 21, 2013. To participate in the conference
call, investors from the U.S. and Canada should dial (877) 407-0789 ten
minutes prior to the scheduled start time. International callers should dial
(201) 689-8562. In addition, the call will be broadcast live over the Internet
hosted on the Investor Relations section of the company's website at
http://investors.boingo.com and will be archived online upon completion of the
conference call.

Use of Non-GAAP Financial Measures

To supplement Boingo Wireless' financial statements presented on a GAAP basis,
Boingo Wireless provides Adjusted EBITDA as a supplemental measure of its
performance. The company defines Adjusted EBITDA as net income (loss)
attributable to common stockholders plus depreciation and amortization of
property and equipment, accretion of convertible preferred stock, income
taxes, amortization of intangible assets, stock‑based compensation expense,
non-controlling interests and interest expense (income), net.

Boingo Wireless believes Adjusted EBITDA is useful to investors in evaluating
its operating performance. Boingo's management uses Adjusted EBITDA in
conjunction with accounting principles generally accepted in the United
States, or GAAP, and operating performance measures as part of its overall
assessment of the company's performance for planning purposes, including the
preparation of its annual operating budget, to evaluate the effectiveness of
its business strategies and to communicate with its board of directors
concerning its financial performance. Adjusted EBITDA should not be considered
as an alternative financial measure to net income, which is the most directly
comparable financial measure calculated in accordance with GAAP, or any other
measure of financial performance calculated in accordance with GAAP.

Preliminary Nature of Reported Results

The fourth quarter and full year 2012 financial results reported in this press
release are preliminary and unaudited. The company expects to announce final
results in March 2013 when it files its Annual Report on Form 10-K for the
year ended December 31, 2012. Final results could differ from the preliminary
results reported in this press release. The company assumes no obligation and
does not intend to update these preliminary results prior to filing its Annual
Report on Form 10-K for the year ended December 31, 2012. The company and its
external auditors are also in the process of evaluating the effectiveness of
the company's internal control over financial reporting as of December 31,
2012.

About Boingo Wireless

Boingo Wireless, Inc. (Nasdaq:WIFI), the world's leading Wi-Fi software and
services provider, makes it easy, convenient and cost-effective for people to
enjoy Wi-Fi access on their laptop or mobile device at more than 600,000
hotspots worldwide. With a single account, Boingo users and Boingo's wholesale
partners can access the mobile Internet via Boingo Network locations that
include the top airports around the world, major hotel chains, cafés and
coffee shops, restaurants, convention centers and metropolitan hot zones.
Boingo, through its Concourse Communications Group subsidiary, operates Wi-Fi
and/or Cellular DAS networks at large-scale venues worldwide such as airports,
major sporting arenas, malls, and convention centers, as well as restaurants
and retail establishments. The company's Cloud Nine media platform enables
brand advertisers to reach a captive audience through high engagement Wi-Fi
sponsorships. For more information about Boingo, please visit
http://www.boingo.com and http://cloudnine.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" that involves risks,
uncertainties and assumptions. Forward-looking statements can be identified by
words such as "anticipates," "intends," "plans," "seeks," "believes,"
"estimates," "expects" and similar references to future periods. These
forward-looking statements include the quotations from management in this
press release, as well as any statements regarding Boingo's strategic plans
and future guidance. Forward-looking statements are based on the company's
current expectations and assumptions regarding its business, the economy and
other future conditions. Since forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. The company's actual results may
differ materially from those contemplated by the forward-looking statements.
Important factors that could cause actual results to differ materially from
those in the forward-looking statements include regional, national or global
political, economic, business, competitive, market and regulatory conditions,
as well as other risk and uncertainties described more fully in documents
filed with or furnished to the Securities and Exchange Commission ("SEC"),
including Boingo's Form 10-K for the year ended December 31, 2011 filed with
the SEC on April 13, 2012 and Form 10-Q for the quarter ended September 30,
2012 filed with the SEC on November 14, 2012. Any forward-looking statement
made by Boingo in this press release speaks only as of the date on which it is
made. Factors or events that could cause the company's actual results to
differ may emerge from time to time, and it is not possible for Boingo to
predict all of them. Boingo undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information, future
developments or otherwise, except as may be required by law.

Boingo, Boingo Wireless, the Boingo Wireless Logo and Don't Just Go. Boingo.
are registered trademarks of Boingo Wireless, Inc. All other trademarks are
the properties of their respective owners.

                                      

Boingo Wireless, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
                                                                  
                                        Three Months Ended Year Ended
                                        December31,       December 31,
                                        2012      2011     2012      2011
                                                                  
Revenue                                  $ 28,000  $ 25,899 $ 102,506 $ 94,558
Costs and operating expenses:                                      
Network access                           12,712    9,929    42,289    37,082
Network operations                       3,671     4,084    14,566    15,849
Development and technology               2,905     2,241    10,697    9,433
Selling and marketing                    3,037     1,999    10,274    7,409
General and administrative               3,276     3,343    12,731    11,953
Amortization of intangible assets        325       263      1,103     1,655
Total costs and operating expenses       25,926    21,859   91,660    83,381
Income from operations                   2,074     4,040    10,846    11,177
Interest and other (expense) income, net (27)      116      143       (176)
Income before income taxes               2,047     4,156    10,989    11,001
Income taxes                             754       2,079    3,222     4,064
Net income                               1,293     2,077    7,767     6,937
Net income attributable to               150       222      729       642
non-controlling interests
Net income attributable to Boingo        1,143     1,855    7,038     6,295
Wireless, Inc.
Accretion of convertible preferred stock —         —        —         (1,633)
Net income attributable to common        $ 1,143   $ 1,855  $ 7,038   $ 4,662
stockholders
                                                                  
Net income per share attributable to                               
common stockholders:
Basic                                    $ 0.03    $ 0.06   $ 0.20    $ 0.19
Diluted                                  $ 0.03    $ 0.05   $ 0.19    $ 0.17
                                                                  
Weighted average shares used in
computing net income per share                                     
attributable to common stockholders:
Basic                                    35,239    33,357   34,774    24,014
Diluted                                  37,303    36,805   37,317    27,481




Boingo Wireless, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share amounts)
                                                                
                                                    December 31, December31,
                                                    2012         2011
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                            $ 58,449     $ 93,933
Restricted cash                                      30           465
Marketable securities                                41,558       —
Accounts receivable                                  10,666       7,382
Prepaid expenses and other current assets            1,766        1,103
Deferred tax assets                                  1,573        2,366
Total current assets                                 114,042      105,249
Property and equipment, net                          42,412       39,717
Goodwill                                             26,744       25,512
Intangible assets, net                               10,248       9,511
Deferred tax assets                                  3,624        4,083
Other assets                                         4,893        4,848
Total assets                                         $ 201,963    $ 188,920
                                                                
Liabilities and stockholders' equity                             
Current liabilities:                                             
Accounts payable                                     $ 4,990      $ 4,573
Accrued expenses and other liabilities               11,056       12,964
Deferred revenue                                     17,329       13,575
Total current liabilities                            33,375       31,112
Deferred revenue, net of current portion             24,123       27,754
Other liabilities                                    286          975
Total liabilities                                    57,784       59,841
                                                                
                                                                
Stockholders' equity:                                            
Preferred stock, $0.0001 par value, 5,000 shares     —            —
authorized, no shares issued and outstanding
Common stock, $0.0001 par value; 100,000 shares
authorized, 35,483 and 33,584 shares issued and      4            3
outstanding at December 31, 2012 and 2011,
respectively
Additional paid in capital                           178,156      170,721
Accumulated deficit                                  (34,804)     (41,842)
Total common stockholders' equity                    143,356      128,882
Non-controlling interests                            823          197
Total stockholders' equity                           144,179      129,079
Total liabilities and stockholders' equity           $ 201,963    $ 188,920
                                                                

                                      

Boingo Wireless,Inc.
Reconciliation of Net Income Attributable to Common Stockholders to Adjusted
EBITDA
(Unaudited)
(In thousands)
                                                                  
                                         Three Months Ended Year Ended
                                         December31,       December 31,
                                         2012      2011     2012     2011
                                                                  
Net income attributable to common         $ 1,143   $ 1,855  $ 7,038  $ 4,662
stockholders
Depreciation and amortization of property 4,286     3,407    15,958   12,301
and equipment
Accretion of convertible preferred stock  —         —        —        1,633
Income taxes                              754       2,079    3,222    4,064
Amortization of intangible assets         325       263      1,103    1,655
Stock-based compensation expense          572       1,148    2,735    3,423
Non-controlling interests                 150       222      729      642
Interest expense (income), net            27        (116)    (143)    176
Adjusted EBITDA                           $ 7,257   $ 8,858  $ 30,642 $ 28,556

CONTACT: Christian Gunning
         Vice President, Corporate Communications
         cgunning@boingo.com
         (310) 586-4009
        
         Andrew Greenebaum / Laura Bainbridge
         Addo Communications
         andrewg@addocommunications.com /
         laurab@addocommunications.com
         (310) 829-5400