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Boingo Wireless Reports Strong Third Quarter 2013 Results



Boingo Wireless Reports Strong Third Quarter 2013 Results

         -- Exceeds revenue guidance; delivers in-line profitability

   --Announces two significant military contracts with The Army & Air Force
             Exchange Service and Marine Corps Community Services

               -- Closes acquisition of Advanced Wireless Group

LOS ANGELES, Nov. 7, 2013 (GLOBE NEWSWIRE) --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
third quarter ended September 30, 2013.

Third Quarter 2013 Financial Highlights

Boingo Wireless reported revenue of $28.6 million, which exceeded the
company's guidance range, compared to $26.0 million for the third quarter of
2012. Net income attributable to common stockholders was $0.4 million, or
$0.01 per diluted share. This compares to net income attributable to common
stockholders of $2.8 million, or $0.07 per diluted share, for the third
quarter of 2012.

Adjusted EBITDA was $7.4 million compared to $8.4 million for the third
quarter of 2012. Adjusted EBITDA, which is a non-GAAP financial measure, is
defined below and is reconciled to net income (loss) attributable to common
stockholders, the most comparable measure under GAAP, in the schedule entitled
"Reconciliation of Net Income (Loss) Attributable to Common Stockholders to
Adjusted EBITDA."

Operational Highlights

  * An agreement with The Army & Air Force Exchange Service (AAFES) to provide
    on-base broadband Internet and Internet Protocol TV (IPTV) services at
    more than a dozen of the largest Army and Air Force bases in the
    continental U.S.
  * An agreement with Marine Corps Community Services (MCCS) that enables the
    company to provide broadband Internet and IPTV services at all U.S. Marine
    Corps bases worldwide.
  * The closing of the acquisition of Advanced Wireless Group (AWG) on October
    31, 2013.
  * The launch of a new neutral-host distributed antenna system (DAS) at
    Chicago's Soldier Field.
  * An agreement with Memphis International Airport to design and manage the
    airport's first DAS; Boingo will continue to operate as the airport's
    Wi-Fi service provider.
  * The launch of the world's first commercial Next Generation Hotspot Wi-Fi
    network at Chicago O'Hare International Airport.
  * A partnership with Movile Partners, a leading Latin American mobile
    services company, to provide global Wi-Fi roaming services to its users.

Management Commentary

"Our positive momentum continued through the third quarter, with major new
managed and operated networks taking center stage among our strategic
initiatives," said David Hagan, Chief Executive Officer of Boingo Wireless.
"We continued to invest in the business – in the context of upgrading existing
networks to better meet the needs of rapidly growing data demand, and also in
the acquisition and deployment of new networks that we expect to begin
monetizing in 2014."

Mr. Hagan continued, "Through our acquisition of Advanced Wireless Group, we
will now operate public Wi-Fi services in 17 new U.S. airports that reach an
additional 350 million passengers per year; these airports will be integrated
into the existing Boingo network of managed and operated Wi-Fi hotspots.
Further extending our managed and operated footprint, we're pleased to
announce two new significant military contracts – one with Marine Corps
Community Services, to replace the MCI West regional contract with a worldwide
mandate covering all Marine Corps bases, and one with the Army & Air Force
Exchange Service, which includes responsibility for Army and Air Force bases
worldwide."

Business Outlook

Boingo Wireless is revising 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 $108.0
    million.
  * Adjusted EBITDA is expected to be in the range of $24.0 million to $26.0
    million.
  * Net loss attributable to common stockholders is expected to be in the
    range of ($2.0) million to $0.0 million, or a net loss of ($0.06) to $0.00
    per diluted share.

Conference Call Information

Members of Boingo Wireless' management will host a conference call to discuss
its third quarter 2013 financial results beginning at 4:30 pm ET (1:30 pm PT),
today, November 7, 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, income tax expense (benefit), amortization of
intangible assets, stock‑based compensation expense, non-controlling interests
and interest and other 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 (loss) 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, Form 10-Q for the quarter ended March 31, 2013
filed with the SEC on May 10, 2013, and Form 10-Q for the quarter ended June
30, 2013 filed with the SEC on August 9, 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  Nine Months Ended
                                       September 30,       September 30,
                                       2013      2012      2013      2012
                                                                      
Revenue                                 $ 28,607  $ 26,017  $ 77,980  $ 74,506
Costs and operating expenses:                                         
Network access                         13,670    10,061    34,375    29,577
Network operations                     4,495     3,693     13,199    10,895
Development and technology             2,622     2,300     8,484     7,792
Selling and marketing                  3,294     2,567     10,106    7,237
General and administrative             3,201     2,971     11,502    9,455
Amortization of intangible assets      541       296       1,456     778
Total costs and operating expenses     27,823    21,888    79,122    65,734
Income (loss) from operations          784       4,129     (1,142)   8,772
Interest and other (expense) income,   (2)       33        70        170
net 
Income (loss) before income taxes      782       4,162     (1,072)   8,942
Income tax expense (benefit)           258       1,101     (382)     2,468
Net income (loss)                      524       3,061     (690)     6,474
Net income attributable to             170       284       476       579
non-controlling interests 
Net income (loss) attributable to       $ 354     $ 2,777   $(1,166)  $ 5,895
common stockholders
                                                                      
Net income (loss) per share                                           
attributable to common stockholders: 
Basic                                   $ 0.01    $ 0.08   $ (0.03)   $ 0.17
Diluted                                 $ 0.01    $ 0.07    $(0.03)   $ 0.16
                                                                      
Weighted average shares used in
computing net income (loss) per share                                 
attributable to common stockholders: 
Basic                                  35,593    35,080    35,620    34,618
Diluted                                37,129    37,337    35,620    37,324
                                                                      

                                                                   
Boingo Wireless, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share amounts)
                                                                   
                                                    September 30, December 31,
                                                    2013          2012
Assets                                                             
Current assets:                                                    
Cash and cash equivalents                            $ 44,746      $ 58,138
Restricted cash                                     30            30
Marketable securities                               36,493        41,558
Accounts receivable, net                            13,034        10,977
Prepaid expenses and other current assets           6,680         2,072
Deferred tax assets                                 1,199         1,204
Total current assets                                102,182       113,979
Property and equipment, net                         54,605        42,411
Goodwill                                            33,045        26,744
Intangible assets, net                              15,522        10,594
Deferred tax assets                                 1,195         4,256
Other assets                                        3,262         4,548
Total assets                                         $ 209,811     $ 202,532
                                                                   
Liabilities and stockholders' equity                               
Current liabilities:                                               
Accounts payable                                     $ 6,478       $ 4,990
Accrued expenses and other liabilities              11,756        11,019
Deferred revenue                                    17,908        17,329
Total current liabilities                           36,142        33,338
Deferred revenue, net of current portion            24,903        24,123
Other liabilities                                   1,913         572
Total liabilities                                   62,958        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; 35,495 and 35,483 shares issued and     4             4
outstanding at September 30, 2013 and December 31,
2012, respectively 
Additional paid-in capital                          184,417       178,219
Accumulated deficit                                 (38,269)      (34,547)
Total common stockholders' equity                   146,152       143,676
Non-controlling interests                           701           823
Total stockholders' equity                          146,853       144,499
Total liabilities and stockholders' equity           $ 209,811     $ 202,532
                                                                   

                                                                        
Boingo Wireless, Inc.
Reconciliation of Net Income (Loss) Attributable to Common Stockholders to
Adjusted EBITDA
 (Unaudited)
(In thousands)
                                                                        
                                          Three Months Ended Nine Months Ended
                                          September 30,      September 30,
                                          2013      2012     2013      2012
                                                                        
Net income (loss) attributable to common  $354      $2,777   $(1,166)  $5,895
stockholders 
Depreciation and amortization of property 4,744     3,798    13,611    11,672
and equipment 
Income tax expense (benefit)              258       1,101    (382)     2,468
Amortization of intangible assets         541       296      1,456     778
Stock-based compensation expense          1,352     218      3,199     2,163
Non-controlling interests                 170       284      476       579
Interest and other expense (income), net  2         (33)     (70)      (170)
Adjusted EBITDA                           $7,421    $8,441   $17,124   $23,385

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