BroadVision Announces Fourth Quarter 2017 Results

REDWOOD CITY, Calif., Feb. 14, 2018 (GLOBE NEWSWIRE) — BroadVision, Inc. (NASDAQ:BVSN), a leading provider of e-business and engagement management solutions, today reported financial results for its fourth quarter ended December 31, 2017. Revenues for the fourth quarter were $1.5 million, compared with revenues of $1.5 million for the third quarter ended September 30, 2017 and $2.1 million for the comparable quarter of 2016. 

License revenue for the fourth quarter of 2017 was $0.9 million, compared with revenues of $0.8 million for the third quarter ended September 30, 2017 and $1.1 million for the comparable quarter of 2016. The majority of the fourth quarter license revenue was generated from the Company’s BroadVision® Business Agility Suite™, Commerce Agility Suite™, QuickSilver™, and Clearvale® solutions. Revenue during the quarter was generated from sales to both new and existing customers.

In the fourth quarter of 2017, BroadVision posted net loss on a U.S. Generally Accepted Accounting Principles (“GAAP”) basis of $2.6 million, or $0.52 per basic and diluted share, as compared with GAAP net loss of $2.5 million, or $0.50 per basic and diluted share, for the third quarter of 2017 and GAAP net loss of $2.4 million, or $0.48 per basic and diluted share, for the comparable quarter of 2016. 

Full-year 2017 revenues totaled $6.4 million, with a GAAP net loss of $10.1 million, or $2.02 per basic and diluted share, compared to 2016 revenues of $7.9 million and a GAAP net loss of $9.5 million, or $1.93 per basic and diluted share.

As of December 31, 2017, the Company had $9.6 million of cash and cash equivalents and short-term investments, compared to a combined balance of $12.3 million as of September 30, 2017 and $19.7 million as of December 31, 2016.

“Around the world, organizations are engaged in digital transformation projects, harnessing new technology to change the way they work and the way they communicate with customers and business partners, ” said Dr Pehong Chen, President and CEO of BroadVision. “But all too often, these initiatives are fragmented and disconnected from other projects in the organization. Vmoso’s Digital Enterprise Transformation Hub acts a central point for communication, collaboration and knowledge management, enabling individual projects to flourish in a heterogeneous IT infrastructure.”
                                                                                                     
About BroadVision 
Driving innovation since 1993, BroadVision (NASDAQ:BVSN) provides e-business solutions that enable the enterprise and its employees, partners, and customers to stay actively engaged, socially connected, and universally organized to achieve greater business results.  BroadVision® solutions—including Vmoso for virtual, mobile, and social business collaboration, and Clearvale for enterprise social networking—are available globally in the cloud via the Web and mobile applications. Visit www.BroadVision.com for more details.

BroadVision, Business Agility Suite, Commerce Agility Suite, QuickSilver, and Clearvale are trademarks or registered trademarks of BroadVision, Inc. in the United States and other countries. All other company names, product names, and marks are the property of their respective owners.

Information Concerning Forward-Looking Statements
Information in this release that involves expectations, beliefs, hopes, plans, intentions or strategies regarding the future, including statements regarding BroadVision’s ability to enhance customers’ businesses, market acceptance of Vmoso and the ability of Vmoso to transform business operations, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties include without limitation uncertainty regarding market acceptance of BroadVision’s products and services, BroadVision’s ability to sell Vmoso to its existing customers and new customers, BroadVision’s ability to provide reliable, scalable and cost-efficient Cloud-based offerings, BroadVision’s ability to effectively compete in its intensely competitive market and respond effectively to rapidly changing technology, evolving industry standards and changing customer needs, requirements or preferences, and the other risks set forth in BroadVision’s most recent annual report on Form 10-K, and subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements included in this release are based upon information available to BroadVision as of the date of this release, and BroadVision assumes no obligation to update or correct any such forward-looking statements except as required by law. These statements are not guarantees of future performance and actual results could differ materially from BroadVision’s current expectations.

 
 
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
             
    December 31,   December 31,
    2017   2016
ASSETS     (unaudited)      
Current assets:            
Cash, cash equivalents and short-term investments   $  9,560   $  19,704
Other current assets      2,114      2,082
Total current assets      11,674      21,786
Other non-current assets      182      207
Total assets   $  11,856   $  21,993
LIABILITIES AND STOCKHOLDERS’ EQUITY            
Current liabilities   $  4,129   $  4,396
Other non-current liabilities      583      734
Total liabilities      4,712      5,130
Total stockholders’ equity      7,144      16,863
Total liabilities and stockholders’ equity   $  11,856   $  21,993
             

 
BROADVISION, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(unaudited)
                           
    Three Months Ended   Years Ended  
    December 31,   December 31,  
    2017     2016     2017     2016    
Revenues:                          
Software licenses   $  862     $  1,147     $  3,467     $  4,227    
Services      617        911        2,890        3,713    
Total revenues      1,479        2,058        6,357        7,940    
Cost of revenues:                          
Cost of software revenues      44        39        178        172    
Cost of services      812        733        3,012        3,152    
Total cost of revenues      856        772        3,190        3,324    
Gross profit      623        1,286        3,167        4,616    
Operating expenses:                          
Research and development      1,568        1,712        6,563        6,901    
Sales and marketing      733        872        3,676        4,051    
General and administrative      1,024        794        3,733        3,618    
Total operating expenses      3,325        3,378        13,972        14,570    
Operating loss      (2,702 )      (2,092 )      (10,805 )      (9,954 )  
Other income (loss), net      107        (294 )      752        517    
Loss before provision for income taxes      (2,595 )      (2,386 )      (10,053 )      (9,437 )  
Provision for income taxes      (7 )      (3 )      (11 )      (48 )  
Net loss   $  (2,602 )   $  (2,389 )   $  (10,064 )   $  (9,485 )  
Earnings per share, basic and diluted:                          
Basic and diluted loss per share   $  (0.52 )   $  (0.48 )   $  (2.02 )   $  (1.93 )  
Shares used in computing:                          
Weighted average shares-basic and diluted      4,990        4,951        4,975        4,924    
                                   

BroadVision Contact:                                 
Peter Chu
Investor Relations
(650) 295-0716 x7177
Ir1@broadvision.com

Primary Logo

Diamondback Energy, Inc. Announces Fourth Quarter 2017 Financial and Operating Results; Initiating Dividend

MIDLAND, Texas, Feb. 13, 2018 (GLOBE NEWSWIRE) — Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback” or the “Company”) today announced financial and operating results for the fourth quarter ended December 31, 2017.

HIGHLIGHTS

  • Q4 2017 net income of $115 million, or $1.16 per diluted share; adjusted net income (as defined and reconciled below) of $153 million, or $1.56 per diluted share
  • Q4 2017 production of 92.9 Mboe/d (74% oil), up 9% over Q3 2017 and 79% year over year; full year 2017 production of 79.2 Mboe/d (74% oil), up 84% year over year within operating cash flow
  • Proved reserves as of December 31, 2017 of 335.4 MMboe (62% PDP, 70% oil), up 63% year over year; 2017 proved developed finding and development (“PD F&D”) costs of $9.09/boe
  • Full year 2018 production guidance of 108.0 – 116.0 Mboe/d, up over 40% at the midpoint from full year 2017 average daily production
  • Full year 2018 CAPEX guidance of $1,300 – $1,500 million, including drill, complete and equip (“D,C&E”) of $1,175 – $1,325 million and infrastructure of $125 – $175 million
  • Expect to turn 170 to 190 gross operated horizontal wells to production in 2018 with an average lateral length of approximately 9,300 feet
  • Initiating annual cash dividend of $0.50 per common share to be payable quarterly beginning with Q1 2018

“In a year where investor focus shifted from resource capture to resource execution and capital discipline in the Permian Basin, Diamondback delivered on its promises by achieving 84% year over year production growth within cash flow. After successfully integrating multiple large acquisitions and doubling our asset base, we decreased cash costs by over 10% year over year and increased proved reserves by over 60% while maintaining peer-leading capital efficiency. Capital discipline and growth within cash flow are not new concepts to Diamondback, with our 2018 plan calling for over 40% growth within cash flow at current commodity prices,” stated Travis Stice, Chief Executive Officer of Diamondback.

Mr. Stice continued, “Diamondback continues to increase its focus on return on and return of capital, with our return on average capital employed nearly doubling in 2017 and expected to continue to rise given current commodity prices and our continued development of undeveloped acreage. We are also taking our first step toward rewarding shareholders for their support of our growth these last five years by initiating a $0.50 annual cash dividend to be payable quarterly beginning with the first quarter of 2018. Diamondback is now in a position to generate industry-leading organic growth as well as return capital to shareholders while continuing to reduce leverage. Our commitment to robust production growth at the highest margins and efficiencies of our peer group has not changed, and we will continue to be opportunistic through multiple avenues to maximize shareholder returns.”

OPERATIONAL HIGHLIGHTS

Diamondback’s Q4 2017 production was 92.9 Mboe/d (74% oil), up 79% year over year from 51.9 Mboe/d in Q4 2016, and up 9% quarter over quarter from 85.0 Mboe/d in Q3 2017. Average daily production for the full year 2017 was 79.2 Mboe/d (74% oil), up 84% year over year from 43.0 Mboe/d (73% oil) in 2016.

During the fourth quarter of 2017, Diamondback drilled 46 gross horizontal wells and turned 38 operated horizontal wells to production. The average completed lateral length for fourth quarter wells was 10,091 feet, up from 9,603 feet in the third quarter. Operated completions during the fourth quarter consisted of 19 Lower Spraberry wells, 15 Wolfcamp A wells and four Wolfcamp B wells. The Company operated 10 rigs and four dedicated frac spreads during the quarter.

For the full year 2017, Diamondback drilled 150 gross horizontal wells, with 123 gross operated horizontal wells turned to production over the same period. The Company is currently operating 10 horizontal rigs and plans to operate between 10 and 12 horizontal rigs throughout 2018. As a result, Diamondback expects to turn between 170 and 190 gross operated horizontal wells to production for the full year 2018.

OPERATIONS UPDATE

In Pecos County, Diamondback continues to see strong performance from operated completions targeting the Wolfcamp A. The Neal Lethco 34-33 Unit 2WA, Neal Lethco 34-33 Unit 3WA and State Biggs 12A-2 2WA were completed with an average lateral length of 8,901 feet and commenced with an average peak 10-day 2-stream flowing initial production (“IP”) rate of 148 boe/d per 1,000 feet (91% oil).

In Reeves County, the Company also continues to see strong extended performance from prior Wolfcamp A completions. After commencing with a peak 10-day flowing IP rate of 193 boe/d per 1,000 feet (81% oil), the Warlander 501 WA went on to achieve a peak 30-day flowing IP rate of 186 boe/d per 1,000 feet (80% oil) and a peak 90-day flowing IP rate of 156 boe/d per 1,000 feet (80% oil).

Also in Reeves County, Diamondback recently completed its first two-well pad targeting the Wolfcamp A and Wolfcamp B with an average lateral length of 8,315 feet. The Ayers 24-2WA and the Ayers 24-3WB achieved respective peak 30-day flowing IP rates of 226 boe/d per 1,000 feet (82% oil) and 142 boe/d per 1,000 feet (81% oil). After 90 days, the Ayers 24-3WB well has produced over 95 Mboe.

In the Midland Basin, the Company recently completed a four-well pad in Howard County targeting the Lower Spraberry and Wolfcamp A. Four wells on the Bullfrog 47 South Unit pad were completed with an average lateral length of 10,107 feet and achieved an average peak 30-day IP rate of 164 boe/d per 1,000 feet (90% oil).

In Spanish Trail, Diamondback continues to see strong performance from recent completions targeting the Lower Spraberry and Wolfcamp A. In the fourth quarter of 2017, the Company completed five Wolfcamp A wells that achieved an average peak 30-day IP rate of 142 boe/d per 1,000 feet (90% oil), with seven Lower Spraberry wells achieving 146 boe/d per 1,000 feet (86% oil) over the same period. Also in Midland County, Diamondback completed a four-well pad targeting the Lower Spraberry, Wolfcamp A and Wolfcamp B with an average lateral length of 12,843 feet. After 120 days and over 600 Mboe of combined production, these four wells continue to produce over 5,000 boe/d.

FINANCIAL HIGHLIGHTS

Diamondback’s fourth quarter 2017 net income was $115 million, or $1.16 per diluted share. Adjusted net income (a non-GAAP financial measure as defined and reconciled below) was $153 million, or $1.56 per diluted share.

Fourth quarter 2017 Adjusted EBITDA (as defined and reconciled below) was $302 million, up 30% from $232 million in Q3 2017. Adjusted EBITDA for the full year 2017 was $928 million, up 139% from $388 million in 2016. Fourth quarter 2017 revenues were $399 million, up 33% from $301 million in Q3 2017.

Fourth quarter 2017 average realized prices were $53.59 per barrel of oil, $2.40 per Mcf of natural gas and $27.43 per barrel of natural gas liquids, resulting in a total equivalent unhedged price of $45.31/boe, up 18% from $38.25/boe in Q3 2017.

Diamondback’s cash operating costs for the fourth quarter 2017 were $8.28 per boe, including lease operating expenses (“LOE”) of $4.50 per boe, cash general and administrative expenses of $0.59 per boe and taxes and transportation of $3.19 per boe. Cash operating costs for the full year 2017 were $8.16 per boe, down 11% year over year from $9.19 per boe in 2016.

As of December 31, 2017, Diamondback had $88 million in standalone cash and $397 million outstanding on its revolving credit facility. On January 24, 2018, Diamondback priced a $300 million tack-on to its Senior Notes due 2025, with net proceeds of $308 million used to pay down a portion of its borrowings under its revolving credit facility.

During the fourth quarter of 2017, Diamondback spent $246 million on drilling, completion and non-operated properties, and $61 million on infrastructure. For the full year 2017, Diamondback spent $737 million on drilling, completion and non-operated properties, and $124 million on infrastructure, while generating free cash flow of $28 million, excluding acquisitions.

RESERVES

Ryder Scott Company, L.P. prepared estimates of Diamondback’s proved reserves as of December 31, 2017. Reference prices of $51.34 per barrel of oil, $2.98 per MMbtu of natural gas and $31.82 per barrel of natural gas liquids were used in accordance with applicable rules of the Securities and Exchange Commission. Realized prices with applicable differentials were $48.03 per barrel of oil, $2.06 per Mcf of natural gas and $20.79 per barrel of natural gas liquids.

Proved reserves at year-end 2017 of 335.4 MMboe represent a 63% increase over year-end 2016 reserves.  Proved developed reserves increased by 75% to 208.4 MMboe (62% of total proved reserves) as of  December 31, 2017, reflecting the continued development of the Company’s horizontal well inventory. Proved undeveloped reserves increased to 127 MMboe, a 47% increase over year-end 2016, and are comprised of 168 locations, 35 of which are in the Delaware Basin. Crude oil represents 70% of Diamondback’s total proved reserves.

Net proved reserve additions of 158.8 MMboe resulted in a reserve replacement ratio of 549% (defined as the sum of extensions, discoveries, revisions and purchases, divided by annual production). The organic reserve replacement ratio was 443% (defined as the sum of extensions, discoveries and revisions, divided by annual production).

Extensions totaling 139.0 MMboe of reserves were the primary contributor to the increase in reserves, followed by purchases of reserves of 30.7 MMboe, with downward revisions of 10.9 MMboe. Proved developed producing extensions accounted for 49% of the total. PDP extensions were the result of 102 wells in which the Company has a working interest, and proved undeveloped extensions resulted from 87 new locations in which the Company has a working interest. Diamondback’s Delaware Basin properties accounted for 29% of the total extensions. Net purchases of reserves of 30.7 MMboe were the result of acquisitions of 32.7 MMboe and divestitures of 2.0 MMboe. Acquisitions in the Delaware Basin contributed 92% of the total acquisitions with small bolt-on working interests and Midland Basin royalty interests accounting for the remainder. Downward revisions of 10.9 MMboe were the result of technical revisions, and PUD re-classes to probable as a result of development timing.

 
  Oil (MBbls) Liquids (MBbls) Gas (MMcf) MBOE
Proved Reserves As of December 31, 2016 139,174   37,134   174,896   205,457  
Extensions and discoveries 99,980   20,825   109,032   138,977  
Revisions of previous estimates (7,715 ) (1,466 ) (10,065 ) (10,859 )
Purchase of reserves in place 24,322   2,633   34,640   32,728  
Divestitures (1,163 ) (461 ) (2,474 ) (2,036 )
Production (21,417 ) (4,056 ) (20,660 ) (28,916 )
Proved Reserves As of December 31, 2017 233,181   54,609   285,369   335,351  
                 

Diamondback’s exploration and development costs in 2017 were $925.1 million. PD F&D costs were $9.09/boe. PD F&D costs are defined as exploration and development costs divided by the sum of reserves associated with transfers from proved undeveloped reserves at year end 2016 including any associated revisions in 2017 and extensions and discoveries placed on production during 2017. Drill bit F&D costs were $7.22/boe including the effects of all revisions including pricing revisions. Drill bit F&D costs are defined as the exploration and development costs divided by the sum of extensions, discoveries and revisions.

   
(in thousands) Year Ended December 31,
  2017   2016   2015
Acquisition costs          
Proved properties $ 452,661     $ 72,044     $ 64,340  
Unproved properties 2,692,000     752,117     448,638  
Development costs 145,362     47,575     42,749  
Exploration costs 779,728     329,122     319,102  
Capitalized asset retirement costs 2,682     4,030     3,458  
Total $ 4,072,433     $ 1,204,888     $ 878,287  
                       

FULL YEAR 2018 GUIDANCE

Below is Diamondback’s guidance for the full year 2018. The Company expects full year production to be between 108.0 and 116.0 Mboe/d with an estimated capital spend for drilling, completion, infrastructure and non-operated properties of $1,300 to $1,500 million. During 2018, Diamondback expects to complete between 170 and 190 gross operated horizontal wells from a 10 to 12 rig program.

     
  2018 Guidance  
  Diamondback Energy, Inc. Viper Energy Partners LP
     
Total Net Production – MBoe/d 108.0 – 116.0 14.5 – 16.0
Oil Production – % of Net Production 73% – 76% 71% – 75%
     
Unit costs ($/boe)    
Lease operating expenses, including workovers $4.25 – $5.25  
Gathering & Transportation $0.25 – $0.50 $0.10 – $0.30
G&A    
Cash G&A Under $1.00 $0.75 – $1.25
Non-cash equity-based compensation $0.75 – $1.25 $0.75 – $1.25
DD&A $11.00 – $14.00 $9.00 – $11.00
Interest expense (net of interest income) $1.00 – $2.00  
     
Production and ad valorem taxes (% of revenue)(a) 7.0% 7.0%
Corporate tax rate (% of pre-tax income) 20% – 23%  
     
Gross horizontal D,C&E/Ft. – Midland Basin $760 – $810  
Gross horizontal D,C&E/Ft. – Delaware Basin $1,125 – $1,225  
Horizontal wells completed (net) 170 – 190 (146 – 163)  
     
Capital Budget ($ – million)    
Horizontal drilling and completion $1,175 – $1,325  
Infrastructure $125 – $175  
2018 Capital Spend $1,300 – $1,500  
     
  1. Includes production taxes of 4.6% for crude oil and 7.5% for natural gas and NGLs and ad valorem taxes.

CONFERENCE CALL

Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the fourth quarter of 2017 on Wednesday, February 14, 2018 at 10:00 a.m. CT.  Participants should call (877) 440-7573 (United States/Canada) or (253) 237-1144 (International) and use the confirmation code 7273289. A telephonic replay will be available from 1:00 p.m. CT on Wednesday, February 14, 2018 through Wednesday, February 21, 2018 at 1:00 p.m. CT. To access the replay, call (855) 859-2056 (United States/Canada) or (404) 537-3406 (International) and enter confirmation code 7273289. A live broadcast of the earnings conference call will also be available via the internet at www.diamondbackenergy.com under the “Investor Relations” section of the site. A replay will also be available on the website following the call.

About Diamondback Energy, Inc.

Diamondback is an independent oil and natural gas Company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. Diamondback’s activities are primarily focused on the horizontal exploitation of multiple intervals within the Wolfcamp, Spraberry, Clearfork, Bone Spring and Cline formations.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, that address activities that Diamondback assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Diamondback. Information concerning these risks and other factors can be found in Diamondback’s filings with the Securities and Exchange Commission, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the Securities and Exchange Commission’s web site at http://www.sec.gov. Diamondback undertakes no obligation to update or revise any forward-looking statement.

 
Diamondback Energy, Inc.
Consolidated Statements of Operations
(unaudited, in thousands, except share amounts and per share data)
               
  Three Months Ended December 31,   Year Ended December 31,
  2017   2016   2017   2016
Revenues              
Oil, natural gas liquids and natural gas $ 387,106     $ 185,012     $ 1,186,275     $ 527,107  
Lease bonus 9,257         11,764      
Midstream services 2,831         7,072      
Total revenues 399,194     185,012     1,205,111     527,107  
Operating expenses              
Lease operating expenses 38,411     23,348     126,524     82,428  
Production and ad valorem taxes 23,530     9,212     73,505     34,456  
Gathering and transportation 3,724     3,542     12,834     11,606  
Midstream services 3,282         10,409      
Depreciation, depletion and amortization 105,078     51,329     326,759     178,015  
Impairment of oil and natural gas properties             245,536  
General and administrative expenses(1) 11,145     10,208     48,669     42,619  
Asset retirement obligation accretion 361     294     1,391     1,064  
Total expenses 185,531     97,933     600,091     595,724  
Income (loss) from operations 213,663     87,079     605,020     (68,617 )
Interest expense, net (10,892 )   (10,418 )   (40,554 )   (40,684 )
Other income, net 763     1,417     10,235     3,064  
Gain (loss) on derivative instruments, net (97,888 )   (16,680 )   (77,512 )   (25,345 )
Loss on extinguishment of debt     (33,134 )       (33,134 )
Total other expense, net (108,017 )   (58,815 )   (107,831 )   (96,099 )
Income (loss) before income taxes 105,646     28,264     497,189     (164,716 )
Provision for (benefit from) income taxes (23,961 )   (176 )   (19,568 )   192  
Net income (loss) 129,607     28,440     516,757     (164,908 )
Net income attributable to non-controlling interest 15,048     2,842     34,496     126  
Net income (loss) attributable to Diamondback Energy, Inc. $ 114,559     $ 25,598     $ 482,261     $ (165,034 )
               
Earnings per common share:              
Basic $ 1.17     $ 0.32     $ 4.95     $ (2.20 )
Diluted $ 1.16     $ 0.32     $ 4.94     $ (2.20 )
Weighted average common shares outstanding:              
Basic   98,169       80,315       97,458       75,077  
Diluted 98,368     80,510     97,688     75,077  
                       
  1. Includes non-cash expense of $6,119 and $5,810 for the three months ended December 31, 2017 and 2016, respectively, and $25,537 and $26,453 for the year ended December 31, 2017 and 2016, respectively.
 
Diamondback Energy, Inc.
Selected Operating Data
(unaudited)
               
  Three Months Ended December 31,   Year Ended December 31,
  2017   2016   2017   2016
Production Data:              
Oil (MBbl) 6,345     3,507     21,418     11,562  
Natural gas (MMcf) 6,103     3,172     20,660     10,728  
Natural gas liquids (MBbls) 1,182     742     4,056     2,399  
Oil Equivalents (MBOE)(1)(2) 8,544     4,778     28,917     15,749  
Average daily production (BOE/d)(2) 92,872     51,934     79,224     43,031  
% Oil 74 %   73 %   74 %   73 %
               
Average sales prices:              
Oil, realized ($/Bbl) $ 53.59     $ 46.72     $ 48.75     $ 40.70  
Natural gas realized ($/Mcf) 2.40     2.53     2.53     2.10  
Natural gas liquids ($/Bbl) 27.43     17.70     22.20     14.20  
Average price realized ($/BOE) 45.31     38.72     41.02     33.47  
Oil, hedged ($/Bbl)(3) 52.73     45.97     48.94     40.80  
Natural gas, hedged ($ per MMbtu)(3) 2.59     2.41     2.65     2.06  
Average price, hedged ($/BOE)(3) 44.81     38.09     41.26     33.54  
               
Average Costs per BOE:              
Lease operating expense $ 4.50     $ 4.89     $ 4.38     $ 5.23  
Production and ad valorem taxes 2.75     1.93     2.54     2.19  
Gathering and transportation expense 0.44     0.74     0.44     0.74  
General and administrative – cash component 0.59     0.92     0.80     1.03  
Total operating expense – cash $ 8.28     $ 8.48     $ 8.16     $ 9.19  
               
General and administrative – non-cash component $ 0.71     $ 1.22     $ 0.88     $ 1.68  
Depreciation, depletion and amortization 12.30     10.74     11.30     11.30  
Interest expense 1.27     2.18     1.40     2.58  
                       
  1. Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.
  2. The volumes presented are based on actual results and are not calculated using the rounded numbers in the table above.
  3. Hedged prices reflect the effect of our commodity derivative transactions on our average sales prices. Our calculation of such effects includes realized gains and losses on cash settlements for commodity derivatives, which we do not designate for hedge accounting.

NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as net income (loss) plus non-cash (gain) loss on derivative instruments, net, net interest expense, depreciation, depletion and amortization, impairment of oil and natural gas properties, non-cash equity-based compensation expense, capitalized equity-based compensation expense, asset retirement obligation accretion expense and income tax provision. Adjusted EBITDA is not a measure of net income (loss) as determined by United States’ generally accepted accounting principles (“GAAP”). Management believes Adjusted EBITDA is useful because it allows it to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. The Company adds the items listed above to net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income (loss) as determined in accordance with GAAP or as an indicator of the Company’s operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Adjusted net income is a non-GAAP financial measure equal to net income (loss) attributable to Diamondback Energy, Inc. plus non-cash (gain) loss on derivative instruments, net, (gain) loss on the sale of assets, net, other income, impairment of oil and gas properties and related income tax adjustments. The Company’s computations of Adjusted EBITDA and adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts.

The following tables present a reconciliation of the non-GAAP financial measure of Adjusted EBITDA to the GAAP financial measure of net income (loss).

 
Diamondback Energy, Inc.
Reconciliation of Adjusted EBITDA to Net Income
(unaudited, in thousands)
               
  Three Months Ended December 31,   Year Ended December 31,
  2017   2016   2017   2016
Net income (loss) $ 129,607     $ 28,440     $ 516,757     $ (164,908 )
Non-cash (gain) loss on derivative instruments, net 93,605     13,664     84,240     26,522  
Interest expense, net 10,892     10,418     40,554     40,684  
Depreciation, depletion and amortization 105,078     51,329     326,759     178,015  
Impairment of oil and natural gas properties             245,536  
Non-cash equity-based compensation expense 8,349     7,364     34,178     33,532  
Capitalized equity-based compensation expense (2,230 )   (1,554 )   (8,641 )   (7,079 )
Asset retirement obligation accretion expense 361     294     1,391     1,064  
Loss on extinguishment of debt     33,134         33,134  
Income tax (benefit) provision (23,961 )   (176 )   (19,568 )   192  
Consolidated Adjusted EBITDA $ 321,701     $ 142,913     $ 975,670     $ 386,692  
EBITDA attributable to noncontrolling interest (19,815 )   (4,605 )   (47,631 )   843  
Adjusted EBITDA attributable to Diamondback Energy, Inc. $ 301,886     $ 138,308     $ 928,039     $ 387,535  
                               

Adjusted net income is a performance measure used by management to evaluate performance, prior to non-cash mark to market (“MTM”) loss on derivative instruments and gain on sale of assets, both net of income tax adjustments. Additionally, adjusted net income removes the income tax benefit relating to change in the statutory tax rate and the change in the tax valuation allowance.

The following table presents a reconciliation of adjusted net income to net income:

 
Diamondback Energy, Inc.
Adjusted Net Income
(unaudited, in thousands, except share amounts and per share data)
   
  Three Months Ended
December 31, 2017
  After-Tax Amounts   Amounts Per Share
Net income attributable to Diamondback Energy, Inc. $ 114,559     $ 1.16  
Noncash mark-to-market “MTM” derivative losses, net ($93,605 pretax) 60,387     0.62  
Gain on sale of assets, net ($69 pretax) (45 )    
Adjusted income excluding noncash MTM derivative losses and gain on sale of assets. 174,901     1.78  
Income tax benefit relating to change in statutory tax rate and change in valuation allowance (21,407 )   (0.22 )
Adjusted income excluding noncash MTM derivative losses and unusual item $ 153,494     $ 1.56  
               

PV-10

PV-10 is the Company’s estimate of the present value of the future net revenues from proved oil and gas reserves after deducting estimated production and ad valorem taxes, future capital costs and operating expenses, but before deducting any estimates of future income taxes.  The estimated future net revenues are discounted at an annual rate of 10% to determine their “present value.”  The Company believes PV-10 to be an important measure for evaluating the relative significance of its oil and gas properties and that the presentation of the non-GAAP financial measure of PV-10 provides useful information to investors because it is widely used by professional analysts and investors in evaluating oil and gas companies.  Because there are many unique factors that can impact an individual company when estimating the amount of future income taxes to be paid, the Company believes the use of a pre-tax measure is valuable for evaluating the Company.  The Company believes that PV-10 is a financial measure routinely used and calculated similarly by other companies in the oil and gas industry.

The following table reconciles PV-10 to the Company’s standardized measure of discounted future net cash flows, the most directly comparable measure calculated and presented in accordance with GAAP.  PV-10 should not be considered as an alternative to the standardized measure as computed under GAAP.

   
(in thousands) December 31, 2017
Standardized measure of discounted future net cash flows $ 3,757,059  
Add: Present value of future income tax discounted at 10% 39,528  
PV-10 $ 3,796,587  
       

Derivatives

As of the filing date, the Company had the following outstanding derivative contracts. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. When aggregating multiple contracts, the weighted average contract price is disclosed.

   
  Crude Oil (Bbls/day), $/Bbl)
  Q1 2018   Q2 2018   Q3 2018   Q4 2018   Q1 2019   Q2 2019   Q3 2019   Q4 2019
Swaps – West Texas Intermediate 27,000     29,000     27,000     26,000     4,000     3,000     3,000     3,000  
$ 51.33     $ 51.24     $ 51.27     $ 51.27     $ 52.04     $ 49.82     $ 49.82     $ 49.82  
Swaps – Crude Brent Oil   2,000       6,000       6,000       6,000                  
$ 54.00     $ 55.07     $ 54.99     $ 54.92                  
Basis Swaps   15,000       15,000       15,000       15,000                  
$ (0.88 )   $ (0.88 )   $ (0.88 )   $ (0.88 )                
Costless Collars Floor   6,000                                  
$ 47.00                                  
Costless Collars Ceiling   3,000                                    
$ 56.34                                    
                                                       

  Natural Gas (Mmbtu/day, $/Mmbtu)
  Q1 2018   Q2 2018   Q3 2018   Q4 2018
Swaps 25,000     20,000     20,000     20,000  
$ 3.39     $ 3.00     $ 3.02     $ 3.07  
                               

Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com

 

Primary Logo

Impinj Announces Fourth Quarter and Full Year 2017 Financial Results

SEATTLE, Feb. 15, 2018 (GLOBE NEWSWIRE) — Impinj, Inc. (NASDAQ:PI), a leading provider and pioneer of RAIN RFID solutions for identifying, locating and authenticating everyday items, today announced its financial results for the fourth quarter and full year ended Dec. 31, 2017. Revenue in the fourth quarter of 2017 was $26.9 million, less than the $29.0 to $30.0 million range shared in the February 1 preliminary announcement. The decrease is due to Impinj agreeing to a partner’s request for a one-time product exchange after the preliminary revenue estimates were previously announced, requiring an accounting reserve in the fourth quarter of 2017. Impinj expects to recognize the revenue in the first quarter of 2018 when the exchange is completed. As a result, Impinj is increasing the revenue outlook for the first quarter of 2018 by $3.25 million, to between $23.25 and $25.25 million.

“Our fourth quarter revenue included strong fixed-reader unit-volume growth of 42% year-over-year,” said Chris Diorio, Impinj co-founder and CEO. “As we announced earlier this month, we anticipate softness in our first-quarter 2018 endpoint IC volumes and revenue due to shortened lead times contributing to a reduction in our order backlog, as well as ongoing reductions in inlay-partner inventory,” Diorio continued. “We remain confident in our market opportunity, position, and in our vision of identifying, locating and authenticating every item in our everyday world, and connecting every one of those items to the cloud.”

Fourth Quarter 2017 Financial Summary

  • Revenue declined 20% year-over-year to $26.9 million
  • GAAP gross margin of 48.4%; non-GAAP gross margin of 50.5%
  • GAAP net loss of $9.3 million, or loss of $0.45 per basic and diluted share using 20.9 million shares
  • Adjusted EBITDA loss of $5.8 million
  • Non-GAAP net loss of $5.9 million, or loss of $0.28 per diluted share using 20.9 million shares

Full Year 2017 Financial Summary

  • Revenue grew 12% year-over-year to $125.3 million
  • GAAP gross margin of 51.8%; non-GAAP gross margin of 53.4%
  • GAAP net loss of $17.3 million, or a loss of $0.84 per basic and diluted share using 20.7 million shares
  • Adjusted EBITDA loss of $5.6 million
  • Non-GAAP net loss of $6.1 million, or loss of $0.29 per diluted share using 20.7 million shares

A reconciliation between historical GAAP and non-GAAP information, including weighted-average basic and diluted shares, is contained in the tables below. Additionally, descriptions of these non-GAAP financial measures are provided in the “Non-GAAP Financial Measures” section below.

First Quarter 2018 Financial Outlook

Impinj provides guidance based on current market conditions and expectations; actual results may differ materially. Please refer to the comments below regarding forward-looking statements. The following table presents Impinj’s financial outlook for the first quarter of 2018 (in millions, except per share data):

    Three Months Ended
    March 31,
    2018
Revenue   $23.25 to $25.25
GAAP Net income (loss)   $(15.5) to $(14.0)
Adjusted EBITDA   $(7.5) to $(6.0)
Non-GAAP net income (loss)   $(8.9) to $(7.4)
GAAP Weighted-average shares outstanding — basic and diluted   21.0 to 21.4
GAAP Net income (loss) per share — basic and diluted   $(0.74) to $(0.65)
Non-GAAP Weighted-average shares outstanding — basic and diluted   21.0 to 21.4
Non-GAAP Net income (loss) per share — basic and diluted   $(0.42) to $(0.35)

Impinj has reconciled guidance provided as non-GAAP measures to their most directly comparable GAAP measures in the tables provided below.

Conference Call Information

Impinj will host a conference call and webcast today, Feb. 15, 2018 at 5:00 p.m. ET / 2:00 p.m. PT for analysts and investors to discuss the company’s fourth quarter and full year 2017 results as well as its outlook for its first quarter of 2018. Open to the public, investors may access the call by dialing +1-412-317-5196. A live webcast of the conference call will also be accessible on the company’s website at investor.impinj.com. Following the webcast, an archived version will be available on the website for one year. A telephonic replay of the call will be available one hour after the call and will run for five business days and may be accessed by dialing +1-412-317-0088 and entering passcode 10115853.

Management’s prepared written remarks, along with quarterly financial data for the last eight quarters, will be made available on the company’s website at investor.impinj.com commensurate with this release.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding the market for RAIN RFID, our strategy, prospects, and financial outlook for the first quarter of 2018. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption “Risk Factors” and elsewhere in our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law.

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which we have prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we use the following non-GAAP financial measures: non-GAAP gross margin, net income and earnings per share and Adjusted EBITDA. In computing these non-GAAP financial measures, we exclude the effects of stock-based compensation expense, depreciation and amortization, non-cash interest and other income/expense, and non-cash income tax expense. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain income, expenses and expenditures that are not considered to be indicative of our ongoing core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance. Our presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned “Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures” included at the end of this release.

About Impinj

Impinj, Inc. (NASDAQ:PI) wirelessly connects billions of everyday items such as apparel, medical supplies, automobile parts, luggage and food to consumer and business applications such as inventory management, patient safety, asset tracking and item authentication. The Impinj platform uses RAIN RFID to deliver timely information about these items to the digital world, thereby enabling the Internet of Things. 

 

 

IMPINJ, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value, unaudited)
             
    December 31,     December 31,  
    2017     2016  
Assets:                
Current assets:                
Cash and cash equivalents   $ 19,285     $ 33,636  
Short-term investments     38,831       66,905  
Accounts receivable, net     22,244       17,447  
Inventory     47,083       27,734  
Prepaid expenses and other current assets     2,359       3,004  
Total current assets     129,802       148,726  
Property and equipment, net     18,110       14,929  
Other non-current assets     241        
Goodwill and other intangible assets, net     3,881       3,881  
Total assets   $ 152,034     $ 167,536  
Liabilities and stockholders’ equity:                
Current liabilities:                
Accounts payable   $ 4,666     $ 7,166  
Accrued compensation and employee related benefits     5,729       7,647  
Accrued liabilities     3,162       6,098  
Current portion of long-term debt     4,088       2,589  
Current portion of capital lease obligations     936       1,130  
Current portion of deferred rent     628       306  
Current portion of deferred revenue     714       445  
Total current liabilities     19,923       25,381  
Long-term debt, net of current portion     5,500       9,676  
Capital lease obligations, net of current portion     745       1,698  
Long-term liabilities — other     532       770  
Deferred rent, net of current portion     5,891       5,022  
Deferred revenue, net of current portion     501       966  
Total liabilities     33,092       43,513  
Stockholders’ equity:                
Preferred stock, $0.001 par value — 5,000 shares authorized, no shares issued and outstanding at December 31, 2017 and December 31, 2016            
Common stock, $0.001 par value — 495,000 shares authorized, 20,973 and 20,336 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively     21       20  
Additional paid-in capital     323,482       311,216  
Accumulated other comprehensive income (loss)     (36 )     (10 )
Accumulated deficit     (204,525 )     (187,203 )
Total stockholders’ equity     118,942       124,023  
Total liabilities and stockholders’ equity   $ 152,034     $ 167,536  

IMPINJ, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data, unaudited)
           
    Three Months Ended     Year Ended
    December 31,     December 31,
    2017     2016     2017     2016    
Revenue   $ 26,863     $ 33,655     $ 125,300     $ 112,287    
Cost of revenue     13,854       15,267       60,359       52,834    
Gross profit     13,009       18,388       64,941       59,453    
Operating expenses:                                  
Research and development     8,912       7,403       32,220       25,185    
Sales and marketing     9,092       6,428       31,579       22,330    
General and administrative     4,529       4,212       18,161       12,426    
Total operating expenses     22,533       18,043       81,960       59,941    
Income (loss) from operations     (9,524 )     345       (17,019 )     (488 )  
Interest income (expense) and other income (expense), net:                                  
Interest expense     (4 )     (311 )     (908 )     (1,633 )  
Interest income and other income (expense), net     (55 )     139       508       616    
Total interest income (expense) and other, net     (59 )     (172 )     (400 )     (1,017 )  
Income (loss) before tax expense     (9,583 )     173       (17,419 )     (1,505 )  
Income tax benefit (expense)     249       (70 )     97       (168 )  
Net income (loss)   $ (9,334 )   $ 103     $ (17,322 )   $ (1,673 )  
Less: Accretion of preferred stock                       (6,258 )  
Net income (loss) attributable to common stockholders   $ (9,334 )   $ 103     $ (17,322 )   $ (7,931 )  
Net income (loss) per share attributable to common stockholders:                                  
Basic   $ (0.45 )   $ 0.01     $ (0.84 )   $ (0.74 )  
Diluted   $ (0.45 )   $ 0.01     $ (0.84 )   $ (0.74 )  
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:                                  
Basic     20,907       19,078       20,680       10,778    
Diluted     20,907       20,667       20,680       10,778    

 

IMPINJ, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands, unaudited)
             
    Three Months Ended     Year Ended  
    December 31,     December 31,  
    2017     2016     2017     2016  
Net income (loss)   $ (9,334 )   $ 103     $ (17,322 )   $ (1,673 )
Other comprehensive income (loss):                                
Unrealized gains (losses) on investments     (19 )     (10 )     (26 )     (10 )
Total other comprehensive income (loss)     (19 )     (10 )     (26 )     (10 )
Comprehensive income (loss)   $ (9,353 )   $ 93     $ (17,348 )   $ (1,683 )

IMPINJ, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
       
    Year Ended  
    December 31,  
    2017     2016  
Operating activities:                
Net income (loss)   $ (17,322 )   $ (1,673 )
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities:                
Depreciation and amortization     3,950       2,869  
Amortization and write-off of debt issuance costs     95       239  
Amortization of premium on short-term investments     70       31  
Revaluation of warrant liability           (559 )
Stock-based compensation     7,428       2,765  
Changes in operating assets and liabilities:                
Accounts receivable     (4,822 )     (4,515 )
Inventory     (19,349 )     (15,897 )
Prepaid expenses and other assets     439       (1,759 )
Deferred revenue     (196 )     17  
Deferred rent     1,191       86  
Accounts payable     (2,836 )     3,883  
Accrued compensation and benefits     (1,735 )     3,462  
Accrued liabilities     (2,799 )     1,554  
Net cash provided by (used in) operating activities     (35,886 )     (9,497 )
Investing activities:                
Purchases of investments     (49,125 )     (67,103 )
Proceeds from maturities of investments     77,075        
Purchases of property and equipment     (6,552 )     (3,530 )
Net cash provided by (used in) investing activities     21,398       (70,633 )
Financing activities:                
Proceeds from initial public offering, net of offering costs           108,096  
Payments on capital lease financing obligations     (1,147 )     (1,229 )
Payments on term loans     (2,772 )     (65,320 )
Proceeds from term loans           61,436  
Proceeds from exercise of stock options and employee stock purchase plan     4,656       600  
Proceeds from issuance of preferred stock upon exercise of warrants           62  
Payments of deferred offering costs     (600 )      
Net cash provided by (used in) financing activities     137       103,645  
Net increase (decrease) in cash and cash equivalents     (14,351 )     23,515  
Cash and cash equivalents:                
Beginning of period     33,636       10,121  
End of period   $ 19,285     $ 33,636  

 

IMPINJ, INC.
RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
 (in thousands, except percentages, unaudited)
             
    Three Months Ended     Year Ended  
    December 31,     December 31,  
    2017     2016     2017     2016  
GAAP Gross Profit   $ 13,009     $ 18,388     $ 64,941     $ 59,453  
Adjustments:                                
Depreciation and amortization     465       281       1,738       1,059  
Stock-based compensation     86       57       231       96  
Non-GAAP Gross Profit   $ 13,560     $ 18,726     $ 66,910     $ 60,608  
                                 
GAAP Gross Margin     48.4 %     54.6 %     51.8 %     52.9 %
Adjustments:                                
Depreciation and amortization     1.7 %     0.8 %     1.4 %     0.9 %
Stock-based compensation     0.3 %     0.2 %     0.2 %     0.1 %
Non-GAAP Gross Margin     50.5 %     55.6 %     53.4 %     53.9 %
                                 
GAAP Research and development expense   $ 8,912     $ 7,403     $ 32,220     $ 25,185  
Adjustments:                                
Depreciation and amortization     (369 )     (285 )     (1,329 )     (1,126 )
Stock-based compensation     (881 )     (567 )     (2,431 )     (983 )
Non-GAAP Research and development expense   $ 7,662     $ 6,551     $ 28,460     $ 23,076  
                                 
GAAP Sales and marketing expense   $ 9,092     $ 6,428     $ 31,579     $ 22,330  
Adjustments:                                
Depreciation and amortization     (150 )     (108 )     (523 )     (475 )
Stock-based compensation     (1,013 )     (535 )     (3,113 )     (1,289 )
Non-GAAP Sales and marketing expense   $ 7,929     $ 5,785     $ 27,943     $ 20,566  
                                 
GAAP General and administrative expense   $ 4,529     $ 4,212     $ 18,161     $ 12,426  
Adjustments:                                
Depreciation and amortization     (98 )     (52 )     (360 )     (209 )
Stock-based compensation     (685 )     (189 )     (1,653 )     (397 )
Non-GAAP General and administrative expense   $ 3,746     $ 3,971     $ 16,148     $ 11,820  
                                 
GAAP Total operating expense   $ 22,533     $ 18,043     $ 81,960     $ 59,941  
Adjustments:                                
Depreciation and amortization     (617 )     (445 )     (2,212 )     (1,810 )
Stock-based compensation     (2,579 )     (1,291 )     (7,197 )     (2,669 )
Non-GAAP Total operating expense   $ 19,337     $ 16,307     $ 72,551     $ 55,462  

 

IMPINJ, INC.
RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data, unaudited)
             
    Three Months Ended     Year Ended  
    December 31,     December 31,  
    2017     2016     2017     2016  
GAAP Interest income (expense) and other income (expense), net   $ (59 )   $ (172 )   $ (400 )   $ (1,017 )
Adjustments:                                
Non-cash interest expense     23       19       95       130  
Change in the fair value of preferred stock warrant liability                       (559 )
Write-off of unamortized debt issuance costs                       109  
Non-GAAP Interest income (expense) and other income (expense), net   $ (36 )   $ (153 )   $ (305 )   $ (1,337 )
                                 
GAAP Income tax benefit (expense)   $ 249     $ (70 )   $ 97     $ (168 )
Adjustments:                                
Non-cash income tax benefit (expense)     (297 )     23       (231 )     91  
Non-GAAP Income tax benefit (expense)   $ (48 )   $ (47 )   $ (134 )   $ (77 )
                                 
GAAP Net Income   $ (9,334 )   $ 103     $ (17,322 )   $ (1,673 )
Adjustments:                                
Depreciation and amortization     1,082       726       3,950       2,869  
Stock-based compensation     2,665       1,348       7,428       2,765  
Interest income (expense) and other income (expense), net     59       172       400       1,017  
Income tax benefit (expense)     (249 )     70       (97 )     168  
Adjusted EBITDA   $ (5,777 )   $ 2,419     $ (5,641 )   $ 5,146  
                                 
GAAP Net Income   $ (9,334 )   $ 103     $ (17,322 )   $ (1,673 )
Adjustments:                                
Depreciation and amortization     1,082       726       3,950       2,869  
Stock-based compensation     2,665       1,348       7,428       2,765  
Non-cash interest expense     23       19       95       130  
Change in the fair value of preferred stock warrant liability                       (559 )
Write-off of unamortized debt issuance costs                       109  
Non-cash income tax benefit (expense)     (297 )     23       (231 )     91  
Non-GAAP Net income   $ (5,861 )   $ 2,219     $ (6,080 )   $ 3,732  
Non-GAAP Net income per share:                                
Basic   $ (0.28 )   $ 0.12     $ (0.29 )   $ 0.24  
Diluted   $ (0.28 )   $ 0.11     $ (0.29 )   $ 0.22  

 

IMPINJ, INC.
RECONCILIATIONS OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(in thousands, unaudited)
             
    Three Months Ended     Year Ended  
    December 31,     December 31,  
    2017     2016     2017     2016  
Weighted-average shares used to compute GAAP net income (loss) per share attributable to common stockholders — basic     20,907       19,078       20,680       10,778  
Adjustments:                                
Weighted-average shares of common stock issuable upon conversion of mandatorily redeemable convertible preferred stock                       4,685  
Weighted-average shares used to compute non-GAAP net income per share — basic     20,907       19,078       20,680       15,463  
                                 
Weighted-average shares used to compute GAAP net income (loss) per share attributable to common stockholders — diluted     20,907       20,667       20,680       10,778  
Weighted-average shares of common stock issuable upon conversion of mandatorily redeemable convertible preferred stock                       4,685  
Adjustments:                                
Effects of dilutive securities                                
Warrants to purchase common stock                       9  
Warrants to purchase mandatorily redeemable convertible preferred stock                       19  
Unvested shares of common stock subject to repurchase                       118  
Stock awards                       1,150  
Weighted-average shares used to compute non-GAAP net income per share — diluted     20,907       20,667       20,680       16,759  

IMPINJ, INC.
RECONCILIATIONS OF GAAP FINANCIAL OUTLOOK TO NON-GAAP FINANCIAL OUTLOOK
(in thousands, except per share data, unaudited)
       
    Three Months Ended  
    March 31,  
    2018  
GAAP Net income (loss)   $ (14,700 )
Adjustments:        
Forecasted Depreciation and amortization     1,100  
Forecasted Stock-based compensation     2,700  
Forecasted Interest income (expense) and other income (expense), net     75  
Forecasted Income tax expense     75  
Forecasted Restructuring costs     4,000  
Adjusted EBITDA   $ (6,750 )
         
GAAP Net income (loss)   $ (14,700 )
Adjustments:        
Forecasted Depreciation and amortization     1,100  
Forecasted Stock-based compensation     2,700  
Forecasted Non-cash interest expense     25  
Forecasted Non-cash income tax expense     25  
Forecasted Non-cash restructuring costs     2,700  
Non-GAAP Net income (loss)     (8,150 )
Non-GAAP Net income per share — basic and diluted   $ (0.38 )
         
Weighted-average shares used to compute GAAP net income (loss) per share attributable to common stockholders — basic and diluted     21,200  
Effects of dilutive securities        
Forecasted Unvested shares of common stock subject to repurchase      
Forecasted Stock awards      
Weighted-average shares used to compute non-GAAP net income per share — basic and diluted     21,200  


Contacts:
Investor Relations
Maria Riley & Chelsea Lish
The Blueshirt Group
ir@impinj.com
+1-206-315-4470

Media Relations
Gaylene Meyer
Sr. Director Communications
gmeyer@impinj.com
+1-206-812-9816

Primary Logo