Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Boingo Wireless Reports Strong Second Quarter 2013 Results



  Boingo Wireless Reports Strong Second Quarter 2013 Results

                -- Exceeds Revenue and Profitability Guidance
-- Awarded three contracts to deploy neutral-host, multi-carrier DAS networks
 at the University of Arizona, Pinnacle Bank Arena and Memphis International
                                   Airport
            -- Launches free Wi-Fi access for Samsung tablet users

Business Wire

LOS ANGELES -- August 8, 2013

Boingo Wireless (NASDAQ: WIFI), the leading DAS and Wi-Fi provider that serves
consumers, carriers and advertisers worldwide, today announced the company’s
financial results for the second quarter ended June 30, 2013.

Second Quarter 2013 Financial Highlights

Boingo Wireless reported revenue of $26.2 million, which exceeded the
company’s guidance range, compared to $24.3 million for the second quarter of
2012. Net loss attributable to common stockholders was $0.4 million, or
($0.01) per diluted share. This compares to net income attributable to common
stockholders of $1.5 million, or $0.04 per diluted share, for the second
quarter of 2012.

Adjusted EBITDA was $6.1 million compared to $6.8 million for the second
quarter of 2012. Adjusted EBITDA, which is a non-GAAP financial measure, is
defined below and is reconciled to net (loss) income attributable to common
stockholders, the most comparable measure under GAAP, in the schedule entitled
“Reconciliation of Net (Loss) Income Attributable to Common Stockholders to
Adjusted EBITDA.”

Operational Highlights

  * An agreement with the University of Arizona to design, build and manage
    the University’s first distributed antenna system (DAS), which will
    provide improved voice and data coverage and capacity for Wildcat fans,
    students and faculty.
  * An agreement to serve as the exclusive cellular network provider for
    Pinnacle Bank Arena, which includes the design, deployment and management
    of a neutral-host, multi-carrier DAS network for enhanced mobile voice and
    data connectivity during events.
  * An agreement with the Memphis-Shelby Airport Authority Board of
    Commissions to design, build and manage a DAS network at the Memphis
    International Airport to improve cellular service in the terminal, ground
    transportation center and surrounding areas.
  * An agreement with Samsung Electronics America, Inc. to provide one year of
    free unlimited Wi-Fi access in North America to Galaxy Tablet 3 and Galaxy
    Note 8 Wi-Fi users.
  * The launch of a new advertising product that allows leading brands to
    reward users with free Wi-Fi access in exchange for verified downloads of
    their iOS or Android apps.

Management Commentary

“Our positive momentum continued through the second quarter, with all three
major lines of business– retail, wholesale, and advertising – contributing to
our overall performance,” said David Hagan, Chief Executive Officer of Boingo
Wireless. “Our retail and advertising businesses over-performed for the
quarter to help lead us to $26.2 million in revenue, which exceeded the high
end of our guidance. Stability in the wholesale sector, especially as it
relates to revenue generated by DAS upgrade projects for the carriers, helped
amplify the retail and advertising gains.”

Mr. Hagan continued, “Strategic initiatives around DAS and advertising saw
especially notable traction, as we continue to grow those lines of business.
Specifically, we finalized three contracts to deploy neutral-host,
multi-carrier DAS networks at the Memphis International Airport, the Pinnacle
Bank Arena in Lincoln, Nebraska and across sections of the University of
Arizona campus. On the advertising front, we completed the integration of our
sponsorship and advertising platform with the Starbucks Wi-Fi network,
allowing us to deliver sponsorships and display ads throughout more than 7,000
company-owned Starbucks stores in the United States and Canada.”

Business Outlook

Boingo Wireless is initiating guidance for the third quarter ending September
30, 2013, as follows:

Third Quarter 2013

  * Revenue is expected to be in the range of $26.5 million to $28.5 million.
  * Adjusted EBITDA is expected to be in the range of $7.0 million to $8.0
    million.
  * Net income attributable to common stockholders is expected to be in the
    range of $0.0 million to $1.0 million, or $0.00 to $0.03 per diluted
    share.

Boingo Wireless is reiterating 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 second quarter 2013 financial results beginning at 4:30 pm ET (1:30 pm
PT), today, August 8, 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 (loss) income
attributable to common stockholders plus depreciation and amortization of
property and equipment, income tax (benefit) expense, amortization of
intangible assets, stock-based compensation expense, non-controlling interests
and interest and other 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 (loss) income attributable to
common stockholders, 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.

About Boingo Wireless

Boingo Wireless (Nasdaq:WIFI) helps the world stay connected. Our vast
footprint of small cell networks covers more than a million DAS and Wi-Fi
locations and reaches more than 1 billion consumers annually — in places as
varied as airports, stadiums, shopping malls, restaurants, universities, and
military bases. The Boingo platform is the only monetization engine of its
kind, driving revenue through carrier offload, advertising, location-based
data analytics, and consumer products like IPTV, high-speed broadband, and
Wi-Fi. For more information about the Boingo story, visit www.Boingo.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, 2012 filed with
the SEC on March 18, 2013 and Form 10-Q for the quarter ended March 31, 2013
filed with the SEC on May 10, 2013, which we incorporate by reference into
this press release. 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 Operations
(Unaudited)
(In thousands, except per share amounts)
                                                        
                               Three Months Ended        Six Months Ended
                               June 30,                  June 30,
                               2013         2012         2013         2012
                                                                       
Revenue                        $ 26,239     $ 24,302     $ 49,373     $ 48,489
Costs and operating
expenses:
Network access                 11,035       9,661        20,705       19,516
Network operations             4,753        3,748        8,704        7,202
Development and technology     2,726        2,834        5,862        5,492
Selling and marketing          3,822        2,419        6,812        4,670
General and administrative     3,811        3,157        8,301        6,484
Amortization of intangible     516          247          915          482
assets
Total costs and operating      26,663       22,066       51,299       43,846
expenses
(Loss) income from             (424     )   2,236        (1,926   )   4,643
operations
Interest and other income,     25           81           72           137
net
(Loss) income before income    (399     )   2,317        (1,854   )   4,780
taxes
Income tax (benefit) expense   (173     )   709          (640     )   1,367
Net (loss) income              (226     )   1,608        (1,214   )   3,413
Net income attributable to     173          147          306          295
non-controlling interests
Net (loss) income
attributable to common         $ (399   )   $ 1,461      $ (1,520 )   $ 3,118
stockholders
                                                                       
Net (loss) income per share
attributable to common
stockholders:
Basic                          $ (0.01  )   $ 0.04       $ (0.04  )   $ 0.09
Diluted                        $ (0.01  )   $ 0.04       $ (0.04  )   $ 0.08
                                                                       
Weighted average shares used
in computing net (loss)
income per share
attributable to common
stockholders:
Basic                          35,670       34,799       35,634       34,384
Diluted                        35,670       37,403       35,634       37,321

 
Boingo Wireless, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share amounts)
                                                               
                                                  June 30,      December 31,
                                                  2013          2012
Assets
Current assets:
Cash and cash equivalents                         $ 48,092      $   58,138
Restricted cash                                   30            30
Marketable securities                             39,426        41,558
Accounts receivable, net                          13,176        10,977
Prepaid expenses and other current assets         7,198         2,072
Deferred tax assets                               1,204         1,204
Total current assets                              109,126       113,979
Property and equipment, net                       50,536        42,411
Goodwill                                          33,045        26,744
Intangible assets, net                            16,060        10,594
Deferred tax assets                               1,195         4,256
Other assets                                      3,113         4,548
Total assets                                      $ 213,075     $   202,532
                                                                              
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable                                  $ 5,555       $   4,990
Accrued expenses and other liabilities            13,552        11,019
Deferred revenue                                  21,653        17,329
Total current liabilities                         40,760        33,338
Deferred revenue, net of current portion          22,796        24,123
Other liabilities                                 1,978         572
Total liabilities                                 65,534        58,033
                                                                              
Commitments and contingencies
                                                                              
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; 35,571 and 35,483 shares issued and   4             4
outstanding at June 30, 2013 and December 31,
2012, respectively
Additional paid-in capital                        184,115       178,219
Accumulated deficit                               (37,129   )   (34,547      )
Total common stockholders’ equity                 146,990       143,676
Non-controlling interests                         551           823
Total stockholders’ equity                        147,541       144,499
Total liabilities and stockholders’ equity        $ 213,075     $   202,532

 
Boingo Wireless, Inc.
Reconciliation of Net (Loss) Income Attributable to Common Stockholders to
Adjusted EBITDA
(Unaudited)
(In thousands)
                                                      
                               Three Months Ended      Six Months Ended
                               June 30,                June 30,
                               2013        2012        2013         2012
                                                                              
Net (loss) income
attributable to common         $ (399  )   $ 1,461     $ (1,520 )   $ 3,118
stockholders
Depreciation and
amortization of property and   4,734       3,358       8,867        7,873
equipment
Income tax (benefit) expense   (173    )   709         (640     )   1,367
Amortization of intangible     516         247         915          482
assets
Stock-based compensation       1,245       952         1,847        1,945
expense
Non-controlling interests      173         147         306          295
Interest and other income,     (25     )   (81     )   (72      )   (137     )
net
Adjusted EBITDA                $ 6,071     $ 6,793     $ 9,703      $ 14,943

Contact:

Boingo Wireless
Christian Gunning
Vice President, Corporate Communications
(310) 586-4009
cgunning@boingo.com
or
Addo Communications
Laura Bainbridge / Kimberly Orlando
(310) 829-5400
laurab@addocommunications.com /
kimberlyo@addocommunications.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement