RigNet, Inc. (NASDAQ:RNET) Q1 2020 Earnings Conference Call - Final Transcript

May 11, 2020 • 11:00 am ET

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RigNet, Inc. (NASDAQ:RNET) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] And our first question comes from Allen Klee with National Securities. Your line is now open.

Analyst
Allen Klee

Yes, good morning. My first question is the actions you've taken so far to cut your operating expenses. Do you have a sense of what the run rate savings could of that could be on a quarterly basis? Or else being equal?

Executive
Lee Ahlstrom

Allen, we have pulled out costs on the order between $15 million to $20 million across COGS and SG&A. And that's on an annualized basis. Actually, sorry, that's not annualized that was the effect really as looking at three quarters of spend, so really from Q2 to the end of the year.

Executive
Steve Pickett

And Allen, we've also taken down the CapEx, expected CapEx expenditure since as well.

Executive
Lee Ahlstrom

Yeah, that's exactly right, Steve. We're down, I would say. And, again, largely, it's going to be success based, but right now, we're looking at maybe somewhere slightly below mid-teens.

Analyst
Allen Klee

That's great. That was going to be my second question.

Executive
Lee Ahlstrom

I thought it might be.

Analyst
Allen Klee

You guys are good. And then just to understand, so you borrowed $3 million from your revolver post quarter. And I guess the PPP money of $6.8 million, is that also post quarter-end?

Executive
Lee Ahlstrom

That's correct.

Analyst
Allen Klee

Okay. So between the two of them that's close to $10 million. Okay.

Executive
Lee Ahlstrom

Yeah, that's right.

Analyst
Allen Klee

You've also talked in your -- on your slide presentations, and you discuss, you're looking at government assistance in various jurisdictions, does that apply to something besides the PPP?

Executive
Lee Ahlstrom

It does Allen, there are a number of programs in various jurisdictions around the world. So for example, in Singapore where we have an office, there is a small refund that the government is giving all businesses. In Canada, the same kind of thing, these are not material amounts that we report, but certainly every little bit helps.

Executive
Steve Pickett

And we're staying quite tuned into those kind of opportunities both in the US and in other parts of the world for obvious reasons.

Analyst
Allen Klee

Okay, thank you. And then -- it was, I mean, I give you a lot of credit that you were able to sequentially throw your site count in this environment, which clearly shows you're gaining share and doing something right or more than something. Is there any way to break out kind of the new ads versus shutdowns that got to those numbers? And then maybe if you guide any indications, of what's going to potentially get shutdown in the near term, also in relation to you announced, some wins of new business?

Executive
Steve Pickett

So, Allen, I could maybe the only really -- the breakout I can give you is maybe on the rig front of the offshore mid front, where we as I said, mentioned, we added seven jackups and then we actually added two floaters and lost two floaters. So in that gain in zero of the floater side.

Analyst
Allen Klee

Okay.

Executive
Lee Ahlstrom

And with respect to what potentially going to be turned off. That's where we get notice of