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LOS ANGELES, Aug. 8, 2012 (GLOBE NEWSWIRE) -- Boingo Wireless, Inc. (Nasdaq:WIFI), the world's leading Wi-Fi software and services provider, today announced the company's financial results for the second quarter ended June 30, 2012. Second Quarter 2012 Financial Highlights
Boingo Wireless reported revenue of $24.3 million, compared to $22.9 million for the second quarter of 2011, an increase of 5.9 percent.
Adjusted EBITDA was $6.8 million, compared to $6.4 million for the second quarter of 2011, an increase of 5.5 percent. Adjusted EBITDA, which is a non-GAAP financial measure, is defined below and reconciled to net income (loss), the most comparable measure under GAAP, in the section entitled "Use of non-GAAP financial measures."
Net income attributable to common stockholders was $1.5 million, or $0.04 per diluted share. This is compared to a net income attributable to common stockholders of $1.3 million, or $0.05 per diluted share, for the second quarter of 2011. Net income attributable to common stockholders for the three months ended June 30, 2011 is inclusive of $438 thousand of accretion of convertible preferred stock. Management Commentary
"As the leading global provider of Wi-Fi software and services, we're extremely confident in the long-term opportunity for Boingo," said David Hagan, President and Chief Executive Officer of Boingo Wireless. "Mobile data traffic continues to grow at exponential rates, increasing the need for small cell wireless technology solutions. While our second quarter performance reflects modest revenue growth, our recent venue signings and strong pipeline position us well for accelerated growth in the second half of 2012 and beyond. Year-to-date, we've added over 150,000 hotspots, including the recent additions of Wendy's, a leading national retailer and two major international airports, bringing our total global count to over 550,000 hotspots." Business Highlights
Key accomplishments include: Business Outlook
Boingo Wireless is initiating guidance for the third quarter ending September 30, 2012, as follows: Q3 2012
Boingo Wireless is revising guidance for the full year ending December 31, 2012, as follows: Full Year 2012 Conference call information
Members of Boingo Wireless' management will host a conference call to discuss its second quarter 2012 financial results beginning at 4:30 pm ET (1:30 pm PT), today, August 8, 2012. To participate in the conference call, investors from the U.S. and Canada should dial (877) 407-0789 ten minutes prior to the scheduled start time. International callers should dial (201) 689-8562. In addition, the call will be broadcast live over the Internet hosted on the Investor Relations section of the company's website at http://investors.boingo.com and will be archived online upon completion of the conference call. Use of non-GAAP financial measures
To supplement Boingo Wireless' financial statements presented on a GAAP basis, Boingo Wireless provides Adjusted EBITDA as a supplemental measure of its performance. The company defines Adjusted EBITDA as net income (loss) attributable to common stockholders plus depreciation, accretion of convertible preferred stock, income taxes, amortization of intangible assets, stock‑based compensation expense, non-controlling interests expense and interest expense (income), net.
Boingo Wireless believes Adjusted EBITDA is useful to investors in evaluating its operating performance. Boingo's management uses Adjusted EBITDA in conjunction with accounting principles generally accepted in the United States, or GAAP, and operating performance measures as part of its overall assessment of the company's performance for planning purposes, including the preparation of its annual operating budget, to evaluate the effectiveness of its business strategies and to communicate with its board of directors concerning its financial performance. Adjusted EBITDA should not be considered as an alternative financial measure to net (loss) income, which is the most directly comparable financial measure calculated in accordance with GAAP, or any other measure of financial performance calculated in accordance with GAAP. About Boingo Wireless
Boingo Wireless, Inc. (Nasdaq:WIFI), the world's leading Wi-Fi software and services provider, makes it easy, convenient and cost-effective for people to enjoy Wi-Fi access on their laptop or mobile device at more than 550,000 hotspots worldwide. With a single account, Boingo users can access the mobile internet via Boingo Network locations that include the top airports around the world, major hotel chains, cafés and coffee shops, restaurants, convention centers and metropolitan hot zones. Boingo through its Concourse Communications Group subsidiary operates wireless networks at large-scale venues worldwide such as airports, major sporting arenas, malls, and convention centers, as well as quick serve restaurants. For more information about Boingo, please visit http://www.boingo.com. Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking statements" that involves risks, uncertainties and assumptions. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. These forward-looking statements include the quotations from management in this press release, as well as any statements regarding Boingo's strategic plans and future guidance. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Since forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. Important factors
that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, as well as other risk and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission ("SEC"), including Boingo's Form 10-K for the year ended December 31, 2011 filed with the SEC on April 13, 2012 and Form 10-Q for the quarter ended March 31, 2012 filed with the SEC on May 11, 2012. Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a
result of new information, future developments or otherwise, except as may be required by law. Boingo, Boingo Wireless, the Boingo Wireless Logo and Don't Just Go. Boingo. are registered trademarks of Boingo Wireless, Inc. All other trademarks are the properties of their respective owners.
Boingo Wireless, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) Three Months Ended
June 30,Six Months Ended
June 30, 2012 2011 2012 2011
Revenue
$ 24,302
$ 22,943
$ 48,489
$ 43,971
Costs and operating expenses:
Network access
9,661
9,169
19,516
17,506
Network operations
3,748
3,944
7,202
7,668
Development and technology
2,834
2,259
5,492
4,743
Selling and marketing
2,419
1,826
4,670
3,455
General and administrative
3,157
2,810
6,484
5,374
Amortization of intangible assets
247
508
482
1,069
Total costs and operating expenses
22,066
20,516
43,846
39,815
Income from operations
2,236
2,427
4,643
4,156
Interest and other income (expense), net
81
(239)
137
(305)
Income before income taxes
2,317
2,188
4,780
3,851
Income taxes
709
312
1,367
791
Net income
1,608
1,876
3,413
3,060
Net income attributable to non-controlling interests
147
145
295
282
Net income attributable to Boingo Wireless, Inc.
1,461
1,731
3,118
2,778
Accretion of convertible preferred stock
—
(438)
—
(1,633)
Net income attributable to common stockholders
$ 1,461
$ 1,293
$ 3,118
$ 1,145
Net income per share attributable to common stockholders:
Basic
$ 0.04
$ 0.06
$ 0.09
$ 0.08
Diluted
$ 0.04
$ 0.05
$ 0.08
$ 0.06
Weighted average shares used in computing net income per share attributable to common stockholders:
Basic
34,799
23,258
34,384
14,927
Diluted
37,403
27,269
37,321
18,902 Boingo Wireless, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except per share amounts)
June 30,
2012December 31,
2011Assets
Current assets:
Cash and cash equivalents
$ 56,026
$ 93,933
Restricted cash
465
465
Marketable securities
42,195
—
Accounts receivable, net
7,887
7,382
Prepaid expenses and other current assets
3,153
1,103
Deferred tax assets
2,366
2,366
Total current assets
112,092
105,249
Property and equipment, net
43,859
39,717
Goodwill
25,512
25,512
Other intangible assets, net
9,067
9,511
Deferred tax assets
4,083
4,083
Other assets
3,905
4,848
Total assets
$ 198,518
$ 188,920
Liabilities and stockholders' equity
Current liabilities:
Accounts payable
$ 4,920
$ 4,573
Accrued expenses and other liabilities
11,284
12,759
Deferred revenue
16,281
13,575
Current portion of capital leases
41
205
Total current liabilities
32,526
31,112
Deferred revenue, net of current portion
26,924
27,754
Long-term portion of capital leases
157
197
Other liabilities
464
778
Total liabilities
60,071
59,841
Stockholders' equity:
Preferred stock, $0.0001 par value, 5,000 shares authorized, no shares issued and outstanding
—
—
Common stock, $0.0001 par value; 100,000 shares authorized, 34,991and 33,584 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively
4
3
Additional paid-in capital
176,970
170,721
Accumulated deficit
(38,724)
(41,842)
Total common stockholders' equity
138,250
128,882
Non-controlling interests
197
197
Total stockholders' equity
138,447
129,079
Total liabilities and stockholders' equity
$ 198,518
$ 188,920 Boingo Wireless, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)
Six Months Ended
June 30,
2012 2011 Cash flows from operating activities
Net income
$ 3,413
$ 3,060
Adjustments to reconcile net income including non-controlling interests to net cash provided by operating activities:
Depreciation and amortization of property and equipment
7,873
5,339
Amortization of intangible assets
482
1,069
Stock-based compensation
1,945
930
Forgiveness of note receivable from stockholder
—
103
Excess tax benefits from stock-based compensation
(588)
—
Change in fair value of preferred stock warrants
__
140
Change in deferred income taxes
__
234
Changes in operating assets and liabilities:
Accounts receivable
(505)
461
Unbilled receivables
—
(266)
Prepaid expenses and other assets
1,616
470
Accounts payable
214
(2,273)
Accrued expenses and other liabilities
(3,006)
(1,790)
Deferred revenue
1,876
2,423
Net cash provided by operating activities
13,320
9,900 Cash flows from investing activities
Increase in restricted cash
—
(52)
Purchases of marketable securities available-for-sale
(42,195)
—
Purchases of property and equipment
(10,675)
(9,793)
Contractual payments related to business acquisition
(14)
(81)
Net cash used in investing activities
(52,884)
(9,926) Cash flows from financing activities
Excess tax benefits from stock-based compensation
588
—
Proceeds from exercise of stock options
1,885
558
Payments of capital leases
(174)
(237)
Payments to non-controlling interests
(642)
(547)
Proceeds from issuance of common stock upon initial public offering
__
48,297
Offering costs
—
(2,073)
Net cash provided by financing activities
1,657
45,998
Net decrease in cash and cash equivalents
(37,907)
45,972
Cash and cash equivalents at beginning of year
93,933
25,721
Cash and cash equivalents at end of year
$ 56,026
$ 71,693 Supplemental disclosure of cash flow information
Cash paid for taxes
$ 286
$ 1,173 Supplemental disclosure of non-cash investing and financing activities
Property and equipment and software maintenance costs in accounts payable, accrued expenses and other liabilities
3,363
2,093
Offering costs in accounts payable, accrued expenses and other liabilities
—
456
Accretion of convertible preferred stock
—
1,633
Conversion of convertible preferred stock into common stock
—
124,602
Exercise and conversion of preferred stock warrants into common stock
—
272
Schedule of Non-GAAP Reconciliations (Unaudited) (In thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2012 2011 2012 2011
Net income attributable to common stockholders
$1,461
$1,293
$3,118
$1,145
Depreciation and amortization of property and equipment
3,358
2,810
7,873
5,339
Accretion of convertible preferred stock
—
438
—
1,633
Income tax expense
709
312
1,367
791
Amortization of other intangible assets
247
508
482
1,069
Stock-based compensation expense
952
695
1,945
901
Non-controlling interests
147
145
295
282
Interest expense (income), net
(81)
239
(137)
305
Adjusted EBITDA
$6,793
$6,440
$14,943
$11,465
CONTACT: Christian Gunning
Director, Corporate Communications
cgunning@boingo.com
(310) 586-4009
Andrew Greenebaum / Laura Foster
Addo Communications
andrewg@addocommunications.com /
lauraf@addocommunications.com
(310) 829-5400
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