RigNet Announces First Quarter 2013 Earnings Results

RigNet Announces First Quarter 2013 Earnings Results

  *Record quarterly revenue of $52.8 million, including $16.8 million from
    our Nessco operations, a recently acquired subsidiary. Organic revenue
    increased 15.4% over the same quarter last year
    
  *Record quarterly Adjusted EBITDA of $12.6 million an increase of 36.0%
    over the same quarter last year
    
  *Net income attributable to common stockholders of $3.7 million, or $0.22
    per diluted share, an increase of $0.08 per diluted share over the same
    quarter last year

HOUSTON, May 6, 2013 (GLOBE NEWSWIRE) -- RigNet, Inc. (Nasdaq:RNET), a leading
global provider of remote communication services to the oil and gas industry,
today reported quarterly results for the quarter ended March 31, 2013.

Revenue was a record $52.8 million for the first quarter, including $16.8
million from our Nessco operations, a recently acquired subsidiary. Organic
revenue increased by $4.8 million, or 15.4%, for the three months ended March
31, 2013, as compared to the same period of 2012 primarily due to increases in
sites served and increased revenue-per-unit resulting from bandwidth upgrades
and additional value-added services provided.Revenue increased by $3.5
million, or 7.2%, for the three months ended March 31, 2013 as compared to the
previous quarter primarily due to advancement of systems integration projects.

Record Adjusted EBITDA of $12.6 million in the first quarter, or 23.9% of
revenue, represents an increase of 36.0% over the same quarter last year and
an increase of 6.8% over the previous quarter.Adjusted EBITDA increased by
$3.3 million over the prior year period primarily due to the Nessco
acquisition and growth in our core offshore business partially offset by costs
associated with head count additions and additional professional
fees.Adjusted EBITDA increased $0.8 million over the previous quarter,
primarily due to increased revenue described above partially offset by
increased operating costs to support the increase in revenue. The increase in
Adjusted EBITDA was also partially offset by costs associated with head count
additions and additional professional fees.

Net income attributable to common stockholders was $3.7 million, or $0.22 per
diluted share, for the first quarter compared to net income attributable to
common stockholders of $2.4 million, or $0.14 per diluted share, in the same
quarter last year and net income attributable to common stockholders of $3.4
million, or $0.20 per diluted share, in the previous quarter.

Capital expenditures were $6.6 million in the first quarter compared to $6.0
million in the same quarter last year and $5.3 million in the previous
quarter.

Mark B. Slaughter, chief executive officer and president, commented, "I am
very pleased with our solid first quarter results, reflecting growth in our
core offshore rig communications business as well as improved contributions
from Nessco and its systems integration business, which we acquired mid-way
through last year.As we look forward into the year, we continue to see
favorable market conditions for our products and services around the globe."

A conference call for investors will be held at 11:00 a.m. Eastern Time (10:00
a.m. Central Time) on Tuesday, May 7, 2013 to discuss RigNet's 2013 first
quarter results.The call may be accessed live over the telephone by dialing
+1 (877) 845-0777, or, for international callers, +1 (760)
298-5090.Interested parties may also listen to a simultaneous webcast of the
conference call by logging onto RigNet's website at www.rig.net in the
Investors – Webcasts and Presentations section.A replay of the conference
call webcast will also be available on our website for approximately thirty
days following the call.

Non-GAAP Financial Measures

This press release contains the following non-GAAP measures: Gross Profit
(excluding depreciation and amortization) and Adjusted EBITDA. Gross Profit
(excluding depreciation and amortization) and Adjusted EBITDA are financial
measures that are not calculated in accordance with generally accepted
accounting principles, or GAAP. We refer you to the Company's most recent 10-K
filing for the year ended December 31, 2012 for a more detailed discussion of
the uses and limitations of our non-GAAP financial measures.

GAAP defines gross profit as revenue less cost of revenue, and includes in
costs of revenue depreciation and amortization expenses related to
revenue-generating long-lived and intangible assets.We define Gross Profit
(excluding depreciation and amortization) as revenue less cost of revenue
(excluding depreciation and amortization). This measure differs from the GAAP
definition of gross profit as we do not include the impact of depreciation and
amortization expenses related to revenue-generating long-lived and intangible
assets which represent non-cash expenses.We use this measure to evaluate
operating margins and the effectiveness of cost management.

We define Adjusted EBITDA as net income (loss) plus interest expense, income
tax expense (benefit), depreciation and amortization, impairment of goodwill,
(gain) loss on retirement of property and equipment, change in fair value of
derivatives, stock-based compensation and IPO or merger/acquisition costs and
related bonuses. Adjusted EBITDA should not be considered as an alternative
to net income (loss), operating income (loss) or any other measure of
financial performance calculated and presented in accordance with GAAP.

About RigNet

RigNet (Nasdaq:RNET) is a leading global provider of managed remote
communications, systems integration and collaborative applications dedicated
to the oil and gas industry, focusing on offshore and onshore drilling rigs,
energy production facilities and energy maritime. RigNet provides solutions
ranging from fully-managed voice and data networks to more advanced
applications that include video conferencing and real-time data services to
remote sites in over thirty countries on six continents, effectively spanning
the drilling and production industry. RigNet is based in Houston, Texas. For
more information, please visit www.rig.net.RigNet is a registered trademark
of RigNet, Inc.

Forward Looking Statements

This press release includes "forward-looking statements" within the meaning of
the safe harbor provisions of the United States Private Securities Litigation
Reform Act of 1995 – that is, statements related to the future, not past,
events. Forward-looking statements are based on the current expectations and
include any statement that does not directly relate to a current or historical
fact. In this context, forward-looking statements often address our expected
future business and financial performance, and often contain words such as
"anticipate," "believe," "intend," "expect," "plan" or other similar words.
These forward-looking statements involve certain risks and uncertainties that
ultimately may not prove to be accurate. Actual results and future events
could differ materially from those anticipated in such statements. For further
discussion of risks and uncertainties, individuals should refer to RigNet's
SEC filings. RigNet undertakes no obligation and does not intend to update
these forward-looking statements to reflect events or circumstances occurring
after this press release. You are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in their entirety
by this cautionary statement.

                              Three Months Ended
                              March 31, 2013 December 31, 2012 March 31, 2012
                              (in thousands)
Unaudited Consolidated
Statements of Comprehensive                                   
Income Data:
Revenue                        $52,818      $49,280         $31,210
Expenses:                                                     
Cost of revenue (excluding     29,122        26,878           14,181
depreciation and amortization)
Depreciation and amortization  4,969         4,963            3,928
Selling and marketing          787           803              658
General and administrative     11,760        10,351           7,545
Total expenses                 46,638        42,995           26,312
Operating income              6,180         6,285            4,898
Other income (expense), net    107           (942)            (261)
Income before income taxes    6,287         5,343            4,637
Income tax expense             (2,512)       (1,850)          (2,143)
Net income                     $3,775       $3,493          $2,494
                                                             
Income Per Share - Basic and                                  
Diluted
Net income attributable to
RigNet, Inc. common            $3,735       $3,379          $2,412
stockholders
Net income per share
attributable to RigNet,        $0.24        $0.22           $0.16
Inc.common stockholders, basic
Net income per share
attributable to RigNet, Inc.   $0.22        $0.20           $0.14
common stockholders, diluted
Weighted average shares        15,759        15,680           15,464
outstanding, basic
Weighted average shares        17,327        17,151           16,948
outstanding, diluted
                                                             
Unaudited Non-GAAP Data:                                      
Gross Profit (excluding        $23,696      $22,402         $17,029
depreciation and amortization)
Gross Profit (excluding
depreciation and amortization) 44.9%          45.5%             54.6%
margin
Adjusted EBITDA                $12,621      $11,818         $9,283
Adjusted EBITDA margin         23.9%          24.0%             29.7%
                                                             

                                  Three Months Ended
                                  March 31, 2013  December 31, March 31, 2012
                                                   2012
                                  (in thousands)
                                                              
Reconciliation of Gross Profit to Gross Profit                 
(excluding depreciation and amortization):
                                                              
Gross profit                       $18,968       $17,700    $13,301
Depreciation and amortization      4,728          4,702       3,728
related to cost of revenue
Gross Profit (excluding            $23,696       $22,402    $17,029
depreciation and amortization)

                              
                              Three Months Ended
                              March 31, 2013 December 31, 2012 March 31, 2012
                              (in thousands)
Reconciliation of Net Income to Adjusted                       
EBITDA:
Net income                     $3,775       $3,493          $2,494
Interest expense               507           625              187
Depreciation and amortization  4,969         4,963            3,928
(Gain) loss on sales of
property and equipment, net of 41            10               (50)
retirements
Stock-based compensation       817           628              581
Acquisition costs              --            249              --
Income tax expense             2,512         1,850            2,143
Adjusted EBITDA (non-GAAP      $12,621      $11,818         $9,283
measure)

                                                             
                                                 March 31,    December 31,
                                                 2013         2012
                                                 (in thousands)
Unaudited Consolidated Balance Sheet Data:                    
Cash and cash equivalents                         $54,716    $59,744
Restricted cash - current portion                 1,190       987
Restricted cash - long-term                       1,265       1,809
Total assets                                      212,784     215,932
Current maturities of long-term debt              9,425       9,422
Long-term debt                                    49,510      51,871
                                                             
                                                             
                                                 Three Months Ended March 31,
                                                 2013         2012
                                                 (in thousands)
Unaudited Consolidated Statements of Cash Flows               
Data:
Cash and cash equivalents, January 1,             $59,744    $53,106
Net cash provided by operating activities         3,890       7,740
Net cash used in investing activities             (5,265)     (6,902)
Net cash used in financing activities             (2,035)     (2,253)
Changes in foreign currency translation           (1,618)     1,113
Cash and cash equivalents, March 31,              $54,716    $52,804

                                                              
                  1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter
                  2012        2012        2012        2012        2013
Selected                                                       
Operational Data:
Offshore drilling  233         234         233         237         245
rigs (1)
U.S. onshore       323         308         302         282         271
drilling rigs
Other sites (2)    493         515         550         575         608
Total              1,049       1,057       1,085       1,094       1,124
                                                              
(1) Includes jack up, semi-submersible and drillship rigs
(2) Includes production facilities, energy support vessels, international land
rigs, completion sites, man-camps, remote offices and supply bases

                              
                              Three Months Ended
                              March 31, 2013 December 31, 2012 March 31, 2012
                              (in thousands)
Americas:                                                     
Revenue                        $12,415      $12,816         $11,843
Cost of revenue                5,281         5,586            5,666
Gross Profit (non-GAAP         7,134         7,230            6,177
measure)
Gross Profit margin            57.5 %        56.4 %           52.2 %
Depreciation and amortization  1,794         1,873            1,880
Selling, general and           1,677         1,647            1,639
administrative
Operating income               $3,663       $3,710          $2,658
Adjusted EBITDA (non-GAAP      $5,417       $5,520          $4,682
measure)
Adjusted EBITDA margin         43.6 %        43.1 %           39.5 %
                                                             
Europe/Africa:                                                
Revenue                        $27,572      $23,913         $9,513
Cost of revenue                17,522        15,516           3,773
Gross Profit (non-GAAP         10,050        8,397            5,740
measure)
Gross Profit margin            36.5 %        35.1 %           60.3 %
Depreciation and amortization  1,746         1,806            741
Selling, general and           2,536         2,711            871
administrative
Operating income               $5,768       $3,880          $4,128
Adjusted EBITDA (non-GAAP      $8,254       $5,473          $4,705
measure)
Adjusted EBITDA margin         29.9 %        22.9 %           49.5 %
                                                             
Middle East/Asia Pacific:                                     
Revenue                        $12,831      $12,551         $9,854
Cost of revenue                5,008         4,671            3,821
Gross Profit (non-GAAP         7,823         7,880            6,033
measure)
Gross Profit margin            61.0 %        62.8 %           61.2 %
Depreciation and amortization  1,282         1,243            1,301
Selling, general and           1,117         1,246            950
administrative
Operating income               $5,424       $5,391          $3,782
Adjusted EBITDA (non-GAAP      $6,706       $6,582          $5,004
measure)
Adjusted EBITDA margin         52.3 %        52.4 %           50.8 %
                                                             
NOTE:Consolidated balances include the three segments above along with
corporate activities and intercompany eliminations.

CONTACT: Marty Jimmerson
         RigNet, Inc.
         +1 (281) 674-0699
         investor.relations@rig.net

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