ViaSat Inc. (NASDAQ:VSAT) Q4 2019 Earnings Conference Call - Final Transcript

May 23, 2019 • 05:00 pm ET

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ViaSat Inc. (NASDAQ:VSAT) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to Viasat's Fiscal Year 2019 Fourth Quarter Earnings Conference Call. Your host for today's call is Mark Dankberg, Chairman and CEO. You may proceed, Mr. Dankberg.

Executive
Mark Dankberg

Okay, thanks. Good afternoon everybody and welcome to Viasat's earnings call for our fourth fiscal quarter of 2019. I'm Mark Dankberg, Chairman and CEO, and I've got with me Rick Baldridge, our President and Chief Operating Officer; Shawn Duffy, our CFO; Robert Blair, our General Counsel; Bruce Dirks, our Treasurer and Paul Froelich in Corporate Development.

Before we start, Robert will provide our Safe Harbor disclosure.

Executive
Robert Blair

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 reports on Form 10-K and Form 10-Q. Copies are available from the SEC or from our website.

That said, back to you, Mark.

Executive
Mark Dankberg

Okay. Thanks, Robert. So we will be referring to slides that are available over the web. I'll start with a summary of financial highlights and an overview, and then Shawn will discuss the consolidated and segment level financial results, I'll provide some additional color on the businesses and then we'll review our outlook and take questions.

So financial results for the quarter and full fiscal year were exceptional. Fourth quarter revenues were up 27% from last year to a record $557 million and revenues for the full year were up 30% to a record $2.1 billion. All operating segments achieved double-digit top line growth in both the quarterly and full year periods. Fiscal '19 contract awards were $2.4 billion, up 42% and that excludes about $1 billion in recent multiyear defense -- Indefinite Delivery/ Indefinite Quantity or ID/IQ contracts and our AMSS contract options that aren't counted in backlog. Those ID/IQs and contract options are not definitive orders but have often led to firm orders and are indicative of demand.

Top line growth enabled even stronger adjusted EBITDA growth. Our fourth quarter adjusted EBITDA was up 95% year-over-year to $108 million. Our fiscal '19 full year adjusted EBITDA was up 44% year-over-year. We've increased revenues at a 14% compounded annual growth rate for the last 15 years. This year at 30% is the fastest growth rate in that entire period. Next closest was the year we introduced ViaSat-1, and that year was highly driven by residential broadband. This year was way more diverse and we believe more robust, including additional satellite services and associated equipment, plus, other defense and commercial products, all an attractive growth markets, where we hold strong competitive positions.

Over the same 15 years, we've grown adjusted EBITDA at 16% compounded annual growth rate and this is the second best year in that time period. The results show that our strategy of designing and building the most innovative and cost-effective satellite systems is working. We feel we're just getting started, and that we've got good momentum for the long term. With the ViaSat-3