ViaSat Inc. (NASDAQ:VSAT) Q3 2019 Earnings Conference Call Transcript
Feb 07, 2019 • 05:00 pm ET
Welcome to Viasat Fiscal Year 2019 Third Quarter Earnings Conference Call. Your host for today's call is Mark Dankberg, Chairman and CEO. You may proceed, Mr. Dankberg.
Yes, thanks, good afternoon everybody and welcome to Viasat's earnings call for our third fiscal quarter of 2019. I'm Mark Dankberg, Chairman and CEO and I've got with me here, Rick Baldridge, our President and Chief Operating Officer; Shawn Duffy, our Chief Financial Officer; Robert Blair, General Counsel; Bruce Dirks, our Treasurer; and Paul Froelich, our VP of Corporate Development. Before we start, Robert will provide our Safe Harbor disclosure.
Thanks, Mark. As you know, this discussion will contain forward-looking statements. This is a reminder that factors could cause actual results to differ materially. Additional information concerning these factors is contained in our SEC filings, including our most recent report on Form 10-K and Form 10-Q. Copies are available from the SEC or from our website. Back to you, Mark.
Okay, thanks. So our primary goal entering this fiscal year was to capitalize on all the investments we've made in prior years in in-flight connectivity and Government Systems, the launch of ViaSat-2 by showing substantial growth in revenue and adjusted EBITDA. We've been progressing steadily towards this objective throughout fiscal 2019 and our results for the third quarter are another big step forward.
Third quarter revenue was up 45% year-over-year driven by growth across all segments. Our third quarter adjusted EBITDA was up 93% year-over-year and 40% sequentially quarter-over-quarter. As you'd expect, adjusted EBITDA growth generally translates into non-GAAP and GAAP earnings generation. In fact, third quarter non-GAAP earnings were $7 million, up over $9 million from a $2.4 million loss same quarter last year.
We're achieving these results by executing on the growth drivers we described going into this fiscal year, in-flight connectivity equipment shipments and activations, government products and services growth, and focused management in the fixed US broadband. We're working hard to sustain the factors that set the stage for this year's strong growth. A solid order book, significant competitive advantages in total bandwidth and bandwidth economics, large addressable markets, vertical integration and strong customer relationships, particularly with government organizations and airlines and we're continuing to develop nascent, but potentially, very substantial new markets such as community Wi-Fi and broadband enterprise services. All these factors, plus year-to-date orders being up 39% compared to this time last year supports sustained opportunities for growth into fiscal 2020 and beyond.
The combination of strong adjusted EBITDA growth and receipt of the ViaSat-2 insurance proceeds is improving our balance sheet too. As expected, net leverage decreased significantly from 5.0 at the end of our second quarter to 4.0 as of the third quarter. We're working to maintain a prudent balance sheet as we continue to invest in future growth, primarily through our global ViaSat-3 constellation.
As anticipated, we reached an agreement with Boeing for the third, our Asia-Pacific satellite which is planned for launch in the second half of calendar '22. We believe our strong