August 25, 2016 6:11 PM ET

Energy Equipment and Services

Company Overview of RigNet, Inc.

Company Overview

RigNet, Inc. provides digital technology solutions to the oil and gas industry. The company operates through three segments: Eastern Hemisphere, Western Hemisphere, and Telecoms Systems Integration. It offers remote communications services through a controlled and managed Internet protocol/multiprotocol label switching global network, enabling drilling contractors, oil companies, and oilfield service companies to communicate. The company also offers a communications package of voice, data, video, networking, and real-time data management to offshore and land-based remote locations. It primarily provides voice-over-Internet-protocol, data, and high-speed Internet access, as well as other valu...

1880 South Dairy Ashford

Suite 300

Houston, TX 77077

United States

Founded in 2000

546 Employees

Phone:

281-674-0100

Fax:

281-674-0101

Key Executives for RigNet, Inc.

Chief Financial Officer and Senior Vice President
Age: 52
Total Annual Compensation: $147.5K
Chief Sales Officer and Senior Vice President
Age: 55
Total Annual Compensation: $264.2K
Senior Vice President and General Counsel
Age: 62
Total Annual Compensation: $262.0K
Consultant
Age: 43
Total Annual Compensation: $230.0K
Compensation as of Fiscal Year 2015.

RigNet, Inc. Key Developments

RigNet, Inc. Renews a Contract to Provide Remote Communication Services

RigNet, Inc. announced that it has renewed a contract to provide remote communication services and Software as a Service (SaaS) for a global offshore driller's entire marketable fleet. Through the multi-year contract, RigNet will deliver a VSAT managed service for the customer's fleet to optimize their operations around the world. The end-to-end connectivity solution includes RigNet's deployment of CrewWifi, a SaaS offering, over the existing managed services. Additionally, RigNet will provide VoIP and Internet access services that are supported by RigNet's global Network Operation Centers. The solution also includes an enhancement that optimizes customers services to ensure the delivery of their other operational applications.

RigNet, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2016; Record Impairment Charge on Intangible Assets for the Second Quarter of 2016

RigNet, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2016. For the quarter, the company reported revenues of $54,911,000 compared with $75,106,000 for the same period a year ago. Operating loss was $3,294,000 compared with operating income of $9,103,000 for the same period a year ago. Loss before income taxes was $3,622,000 compared with income before income taxes of $8,755,000 for the same period a year ago. Net loss attributable to RigNet, Inc. common stockholders was $4,751,000 or $0.27 per diluted share compared with net income attributable to RigNet, Inc. common stockholders of $6,039,000 or $0.34 per diluted share for the same period a year ago. Adjusted EBITDA was $8,624,000 compared with $18,506,000 for the same period a year ago. Unlevered free cash flow was $3,954,000 compared with $10,423,000 for the same period a year ago. Capital expenditures was $4,670,000 compared with $8,083,000 for the same period a year ago. The revenue decrease compared to the prior quarter was primarily due to a $4.2 million decrease in Managed Services revenue (which consists of its Eastern and Western Hemisphere reporting segments) coupled with a $3.2 million decrease in TSI. The decrease compared to the prior year quarter resulted primarily from Managed Services revenue, which decreased $14.5 million, coupled with a $5.7 million decrease in TSI. These decreases were primarily due to reduced spending by oil and gas operators on upstream drilling projects as a result of lower commodity prices. For the six months, the company reported revenues of $117,252,000 compared with $152,756,000 for the same period a year ago. Operating loss was $2,705,000 compared with operating income of $11,555,000 for the same period a year ago. Loss before income taxes was $3,987,000 compared with income before income taxes of $10,127,000 for the same period a year ago. Net loss attributable to RigNet, Inc. common stockholders was $6,084,000 or $0.35 per diluted share compared with net income attributable to RigNet, Inc. common stockholders of $5,010,000 or $0.28 per diluted share for the same period a year ago. Adjusted EBITDA was $19,290,000 compared with $35,620,000 for the same period a year ago. Unlevered free cash flow was $9,715,000 compared with $19,464,000 for the same period a year ago. Capital expenditures was $9,575,000 compared with $16,156,000 for the same period a year ago. Net cash provided by operating activities was $18,440,000 compared with $13,435,000 for the same period a year ago. For the quarter, the company recorded an impairment of intangible assets of $397,000.

RigNet Seeks Acquisitions

RigNet, Inc. (NasdaqGS : RNET) stated that, It may also use a portion of our available cash to finance growth through the acquisition of, investment in, businesses, products, services or technologies complementary to our current business, through mergers, acquisitions, joint ventures or otherwise, or to pay down outstanding debt.

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