ViaSat Inc. (NASDAQ:VSAT) Q4 2020 Earnings Conference Call - Final Transcript

May 26, 2020 • 05:00 pm ET

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ViaSat Inc. (NASDAQ:VSAT) Q4 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to Viasat's FY '20 Fourth Quarter Earnings Conference Call. Your host for today's call is going to be Mark Dankberg, Chairman and CEO. You may proceed, Mr. Dankberg.

Executive
Mark Dankberg

Okay, thanks. Good afternoon everybody and welcome to our earnings call for our full-year fiscal 2020 and fourth quarter results. So, I'm Mark Dankberg, Chairman and CEO. And also on the call are Rick Baldridge, our President and Chief Operating Officer; Shawn Duffy, our CFO; Robert Blair, General Counsel; Bruce Dirks, our Treasurer; and Paul Froelich in Corporate Development.

And as you may have seen in the press release announcing this call, this quarter we are introducing a new format for quarterly earnings where the financial results and business discussion and other special topics that we normally would have covered in opening remarks and slides are now contained in a shareholder letter that's on our website. So this should allow us to use the bulk of the time in this call for more in-depth Q&A.

And 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, I'll turn back to Mark.

Executive
Mark Dankberg

Thanks Robert. As our letter described, we finished up fiscal year 2020 with record results and we've taken some additional steps to make sure that we've got a secure financial position going forward. Unfortunately, this is against a really terrible backdrop of this ongoing global pandemic. I'm not going to spend too much time reviewing what was in the letter, so that we can get to Q&A, but I would like to highlight a few key points.

So we set revenue, operating cash flows, and adjusted EBITDA records for fiscal 2020. Ended with our balance sheet in solid shape and slightly lower leverage than we had at the end of the third quarter. Our diverse portfolio of vertically integrated service and product offerings across multiple markets, has so far largely insulated us from the negative business aspects of pandemic, with our in-flight connectivity business being the only one materially negatively affected. Well, it's hard to predict the future impact of the ongoing crisis, we continue towards our goal of shipping the first ViaSat-3 payload later this fall, but the pandemic does increase schedule risk in the form of supply chain and health related disruptions.

We have taken cost-reduction measures earlier this quarter to address the downturn in commercial in-flight connectivity. We've been through other global financial crisis before. We understand the importance of financial discipline and the potential for strong companies to emerge even stronger. We want maneuvering to do so at this time and will continue to act appropriately has a situation evolves. While we don't expect those cost actions to fully