RigNet, Inc. (NASDAQ:RNET) Q1 2019 Earnings Conference Call - Final Transcript

May 07, 2019 • 11:00 am ET


RigNet, Inc. (NASDAQ:RNET) Q1 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, welcome to RigNet's First Quarter 2019 Earnings Conference Call. My name is Skyler and I'll be your coordinator for today. At this time, all participants are in a listen-only mode. We will be facilitating a question-and-answer session after the prepared remarks by management. (Operator Instructions) I will now turn the call over to Lee Ahlstrom, RigNet's Senior Vice President and Chief Financial Officer. Mr. Ahlstrom, please proceed.

Lee M. Ahlstrom

Thank you, Skyler and good morning and welcome to RigNet's First Quarter 2019 Earnings Call. A copy of our earnings press release with supporting schedules including schedules which reconcile the non-GAAP metrics we'll discuss today to GAAP metrics is posted to our website www.rig.net under our Investor Relations page. For those of you who would like the release in PDF format, we posted that as well.

Before we get started, I'd like to make you aware that we will be making forward-looking statements today. Any statements that are not historical facts, including statements related, but not limited to market expectations and future plans are forward-looking statements that involve certain risks, uncertainties and assumptions. These include, but are not limited to risks associated with the general nature of the oil and gas industry, customers and other third-party interactions, any discussion of the GX Arbitration proceedings and possible outcomes, financial guidance and other factors detailed in the Risk Factors section of RigNet's most recent Annual Report on Form 10-K and in our other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. RigNet disclaims any duty to update the information presented on this call. And now, I'd like to turn the call over to Steve Pickett, RigNet's Chief Executive and President, Steve?

Steven E. Pickett

Thank you, Lee and good morning to everyone and thank you for joining us on today's call. It's been a short six weeks since we reported our fourth quarter earnings and we're glad to be back in front of you today to share the latest about RigNet's operating and financial results. As usual, I'll open with some comments on the team's accomplishments. We'll provide an update on how we're progressing and executing against our previously-stated strategy and we'll provide some insight into what we're seeing in the markets we serve. After that, Lee will provide a review of our financial highlights. After that, we'll open it up for questions.

Yesterday, RigNet reported a net loss for the quarter of $12 million or $0.63 per share based on revenues of $57.5 million. Adjusted EBITDA, a non-GAAP measure we define in our press release and one of our key performance metrics was $8.4 million for the first quarter. Both revenue and adjusted EBITDA were up compared to first quarter 2018 and down sequentially largely due to system integration lumpiness as we signaled on our last call. Lee we will provide some color on that in his remarks.

Operationally and strategically, we