RigNet, Inc. (NASDAQ:RNET) Q3 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 11:00 am ET


RigNet, Inc. (NASDAQ:RNET) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, welcome to RigNet's Third Quarter 2019 Earnings Conference Call. My name is Lily, and I will 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.

I will now turn over the presentation to Lee Ahlstrom, RigNet's Senior Vice President and Chief Financial Officer. Mr. Ahlstrom, please proceed.

Lee M. Ahlstrom

Thank you, Lily. Good morning, and welcome to RigNet's Third 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've 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 as well as aspirations, 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, customer and other third-party interactions, our strategy 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 Officer and President. Steve?

Steven E. Pickett

Thank you, Lee, and good morning to everyone, and thank you for joining us on today's call. We continue to have a lot of exciting things happening here at RigNet, and I look forward to providing this update. As usual, after my comments, Lee will review financial highlights and then we'll take questions.

Yesterday, after the markets closed, RigNet reported a net loss for the second quarter of $494,000 or $0.02 per share based on revenues of $61 million. Revenues increased by 1.1% versus the prior quarter. Adjusted EBITDA, a non-GAAP measure we define in our press release and one of our key performance metrics, was $11 million for the third quarter. Compared to last quarter, adjusted EBITDA was up 12.6%, and compared to the year-ago period, adjusted EBITDA was up 26.1%.

Before I discuss progress we made during the quarter, let me address one thing that I know is on your minds as well as on the management teams and the Board's minds, the current price of equity. We've seen a marked decrease during the quarter and the last month. While we attribute some of it to general concerns about the state of the energy industry, there continues to be what we think is a