Boingo Wireless, Inc.
BOINGO WIRELESS INC (Form: 8-K, Received: 08/03/2017 16:07:41)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 


 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): July 31, 2017

 


 

BOINGO WIRELESS, INC.

(Exact name of registrant as specified in its charter)

 


 

 

 

 

 

 

Delaware

 

001-35155

 

95-4856877

(State or other jurisdiction
of incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

 

10960 Wilshire Blvd., 23 rd  Floor
Los Angeles, California

 

90024

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (310) 586-5180

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see  General Instruction A.2. below):

 

o       Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

 

 



 

Item 2.02. Results of Operations and Financial Condition

 

On August 3, 2017, Boingo Wireless, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2017. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information in this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, except as expressly set forth by specific reference in such a filing.

 

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

 

On July 31, 2017, Charles Boesenberg retired from the Board of Directors (the “Board”) of the Company, and from his service as Lead Independent Director, Chair of the Board’s Compensation Committee and as a member of the Board’s Audit and Steering Committees, to be effective immediately. His retirement is not the result of any disagreement with the Company on any matter related to its operations, policies or practices. The Board offers its appreciation to Mr. Boesenberg for his exceptional service to the Company and wishes him all the best in his retirement.

 

Additionally, on August 1, 2017, the Board, upon recommendation of the Nominating and Corporate Governance Committee, appointed Lance Rosenzweig as the Lead Independent Director and Mike Finley as the Chair of the Board’s Compensation Committee.

 

Item 9.01. Financial Statements and Exhibits

 

(d) Exhibits

 

See the Exhibit Index attached to this report.

 

2



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

BOINGO WIRELESS, INC.

 

 

 

 

Date:

August 3, 2017

By:

/s/ Peter Hovenier

 

 

 

Peter Hovenier

 

 

 

Chief Financial Officer

 

3



 

EXHIBIT INDEX

 

Exhibit
No.

 

Description

 

 

 

99.1

 

Press release dated August 3, 2017 entitled “Boingo Wireless Reports Record Second Quarter 2017 Financial Results” issued by Boingo Wireless, Inc. on August 3, 2017.

 

4


Exhibit 99.1

 

PRESS RELEASE

 

Boingo Wireless Reports Record Second Quarter 2017 Financial Results

 

–        Record quarterly revenue of $49.0 million exceeded guidance and increased 25.5% year-over-year

–        Raising full year 2017 guidance

–        Strong venue acquisition quarter with 14 new DAS venue wins

 

LOS ANGELES — August 3, 2017 — Boingo Wireless (NASDAQ: WIFI), the leading distributed antenna system (DAS) and Wi-Fi provider that serves consumers, carriers and advertisers worldwide, today announced the Company’s financial results for the second quarter ended June 30, 2017.

 

Second Quarter 2017 Financial Highlights

 

·                   Revenue of $49.0 million increased 25.5% compared to $39.1 million in the second quarter of 2016. Growth was driven by strength in DAS, military and wholesale-Wi-Fi.

 

·                   DAS revenue of $18.6 million increased 33.5% compared to $13.9 million in the second quarter of 2016. DAS revenue for the quarter was comprised of $13.0 million of build-out project revenue and $5.6 million of access fee revenue.

 

·                   Military revenue of $13.5 million increased 39.1% compared to $9.7 million in the second quarter of 2016.

 

·                   Wholesale-Wi-Fi revenue of $7.3 million increased 40.2% compared to $5.2 million in the second quarter of 2016.

 

·                   Net loss attributable to common stockholders was $(8.0) million, or $(0.20) per diluted share, compared to a net loss of $(7.3) million, or $(0.19) per diluted share, in the second quarter of 2016.

 

·                   Adjusted EBITDA of $16.3 million increased 76.3% compared to $9.3 million in the second quarter of 2016. Adjusted EBITDA, which is a non-GAAP financial measure, is defined below and is reconciled to net loss attributable to common stockholders, the most comparable measure under GAAP, in the schedule entitled “Reconciliation of Net Loss Attributable to Common Stockholders to Adjusted EBITDA.”

 

·                   Net cash provided by operating activities was $21.8 million compared to $14.6 million in the second quarter of 2016.

 

·                   Free cash flows were $7.4 million compared to $(4.1) million in the second quarter of 2016. Free cash flows, which is a non-GAAP financial measure, is defined below and is reconciled to net cash provided by operating activities, the most comparable measure under GAAP, in the schedule entitled “Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flows.”

 

1



 

Business Highlights

 

·                   The Company delivered another strong venue acquisition quarter with the signing of 14 new DAS venues. As of June 30, 2017, there were 20,300 DAS nodes live with another 11,000 nodes in backlog.

 

·                   Boingo Broadband high-speed Wi-Fi and IPTV services covered 324,000 beds on 60 military bases as of June 30, 2017 compared to 318,000 beds on 59 military bases as of March 31, 2017.

 

Management Commentary

 

“I’m pleased to share that our strong results and momentum continued into the second quarter with revenue up 25.5% year-over-year to $49.0 million, exceeding the high-end of our guidance,” commented David Hagan, Chief Executive Officer of Boingo Wireless. “In addition, adjusted EBITDA for the quarter exceeded the high-end of our guidance range, growing 76.3% year-over-year to $16.3 million. The second quarter marked the eighth consecutive quarter of year-over-year EBITDA margin expansion which is helping to grow increased positive free cash flow to fuel our expansion into new venues. Due to our strong performance during the quarter, we are raising our full year 2017 guidance.”

 

Mr. Hagan continued, “Our strong financial results are due to our consistent execution against our strategic plan. DAS continues to be very robust with the addition of 14 new DAS venues during the second quarter. In military, we exceeded our overall subscriber penetration goals much earlier than our forecasts predicted. In addition, we continue to be actively engaged in discussions with multiple carriers for both carrier offload and small cell deployments and remain very enthusiastic about how these products can help drive growth in our business in future years.”

 

Business Outlook

 

Boingo Wireless is initiating guidance for the third quarter ending September 30, 2017 and is raising guidance for the full year ending December 31, 2017, as follows:

 

Third Quarter 2017

 

·                   Revenue is expected to be in the range of $48.0 million to $52.0 million.

·                   Net loss attributable to common stockholders is expected to be in the range of $(7.0) million to $(4.0) million, or a net loss of $(0.18) to $(0.10) per diluted share.

·                   Adjusted EBITDA is expected to be in the range of $15.0 million to $18.0 million. Adjusted EBITDA, which is a non-GAAP financial measure, is defined below and is reconciled to net loss attributable to common stockholders, the most comparable measure under GAAP, in the schedule entitled “Reconciliation of Net Loss Attributable to Common Stockholders to Adjusted EBITDA — Guidance.”

 

Full Year 2017

 

·                   Revenue is expected to be in the range of $192.0 million to $198.0 million.

·                   Net loss attributable to common stockholders is expected to be in the range of $(28.0) million to $(24.0) million, or a net loss of $(0.71) to $(0.61) per diluted share.

·                   Adjusted EBITDA is expected to be in the range of $60.0 million to $64.0 million.

 

2



 

Conference Call Information

 

Members of Boingo Wireless’ management will host a conference call to discuss its second quarter 2017 financial results beginning at 4:30 p.m. ET (1:30 p.m. PT), today, August 3, 2017. To participate in the conference call, investors from the U.S. and Canada should dial (877) 407-9716 and enter the passcode: 13664995 ten minutes prior to the scheduled start time. International callers should dial +1 (201) 493-6779 and enter the same passcode. The conference call will be broadcast live over the Internet in the Investor Relations section of the Company’s website at http://investors.boingo.com. In addition, a supplement reflecting the Company’s key business metrics will be made available in the Investor Relations section of the Company’s website . The supplement and webcast 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 and free cash flows as supplemental measures of its performance.

 

The Company defines Adjusted EBITDA as net loss attributable to common stockholders plus depreciation and amortization of property and equipment, stock-based compensation expense, amortization of intangible assets, income tax expense, interest and other expense, net, non-controlling interests, and excludes charges or gains that are nonrecurring, infrequent, or unusual. 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 other 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 attributable to common stockholders, 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. Adjusted EBITDA for 2017 excludes settlement expense related to a claim from one of the Company’s venue partners and Adjusted EBITDA for 2016 excludes charges related to the Company’s contested proxy election for the 2016 annual meeting of stockholders because they represent non-recurring charges and are not indicative of the underlying performance of the Company’s business operations.

 

The Company defines free cash flows as net cash provided by operating activities, less purchases of property and equipment. Boingo Wireless believes that free cash flows provides investors with additional useful information to measure operating liquidity because it reflects the amount of cash generated by the Company’s operations after the purchases of property and equipment, that can be used for strategic opportunities. Free cash flows should not be considered as an alternative financial measure to net cash provided by operating activities, 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.

 

3



 

About Boingo Wireless

 

Boingo Wireless, Inc. (NASDAQ: WIFI) helps the world stay connected. Boingo’s vast footprint of small cell networks covers more than a million and a half DAS and Wi-Fi locations and that we estimate reaches more than 1 billion consumers annually — in places as varied as airports, stadiums, arenas, universities, and military bases. For more information about Boingo, visit 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, future guidance and future growth opportunities. Forward-looking statements are based on the Company’s current expectations and assumptions regarding its 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. The Company’s 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 the Company’s ability to maintain its existing relationships and establish new relationships with venue partners, its ability to complete build-outs and sign venue contracts, its ability to maintain revenue growth and achieve profitability, its ability to execute on its strategic and business plans, its ability to successfully compete with new technologies and adapt to changes in the wireless industry, as well as other risks 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, 2016 filed with the SEC on March 13, 2017 and Form 10-Q for the quarter ended March 31, 2017 filed with the SEC on May 8, 2017, which the Company incorporates by reference into this press release. Any forward-looking statement made by Boingo in this press release speaks only as of the date on which it is made. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for Boingo to predict all of them. Boingo undertakes 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.

 

4



 

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,

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

49,033

 

$

39,075

 

$

93,366

 

$

73,574

 

Costs and operating expenses:

 

 

 

 

 

 

 

 

 

Network access

 

21,105

 

16,915

 

40,512

 

31,593

 

Network operations

 

11,668

 

10,418

 

22,931

 

20,868

 

Development and technology

 

6,663

 

5,267

 

12,997

 

10,620

 

Selling and marketing

 

5,094

 

4,882

 

9,987

 

9,550

 

General and administrative

 

11,263

 

7,700

 

19,366

 

15,852

 

Amortization of intangible assets

 

910

 

862

 

1,821

 

1,727

 

Total costs and operating expenses

 

56,703

 

46,044

 

107,614

 

90,210

 

Loss from operations

 

(7,670

)

(6,969

)

(14,248

)

(16,636

)

Interest and other expense, net

 

(46

)

(152

)

(42

)

(182

)

Loss before income taxes

 

(7,716

)

(7,121

)

(14,290

)

(16,818

)

Income tax expense

 

141

 

124

 

340

 

362

 

Net loss

 

(7,857

)

(7,245

)

(14,630

)

(17,180

)

Net income attributable to non-controlling interests

 

160

 

21

 

267

 

70

 

Net loss attributable to common stockholders

 

$

(8,017

)

$

(7,266

)

$

(14,897

)

$

(17,250

)

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.20

)

$

(0.19

)

$

(0.38

)

$

(0.46

)

Diluted

 

$

(0.20

)

$

(0.19

)

$

(0.38

)

$

(0.46

)

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in computing net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

 

 

Basic

 

39,286

 

37,944

 

38,997

 

37,749

 

Diluted

 

39,286

 

37,944

 

38,997

 

37,749

 

 

5



 

Boingo Wireless, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except per share amounts)

 

 

 

June 30,
2017

 

December 31,
2016

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

22,321

 

$

19,485

 

Accounts receivable, net

 

26,989

 

42,978

 

Prepaid expenses and other current assets

 

6,113

 

5,344

 

Total current assets

 

55,423

 

67,807

 

Property and equipment, net

 

258,744

 

250,765

 

Goodwill

 

42,403

 

42,403

 

Intangible assets, net

 

11,951

 

13,783

 

Other assets

 

5,945

 

6,223

 

Total assets

 

$

374,466

 

$

380,981

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

15,229

 

$

15,516

 

Accrued expenses and other liabilities

 

34,987

 

27,723

 

Deferred revenue

 

61,648

 

50,869

 

Current portion of long-term debt

 

875

 

1,094

 

Current portion of capital leases and notes payable

 

4,527

 

3,993

 

Total current liabilities

 

117,266

 

99,195

 

Deferred revenue, net of current portion

 

144,538

 

152,719

 

Long-term debt

 

5,438

 

15,875

 

Long-term portion of capital leases and notes payable

 

4,393

 

4,612

 

Deferred tax liabilities

 

3,451

 

3,208

 

Other liabilities

 

6,627

 

6,826

 

Total liabilities

 

281,713

 

282,435

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

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; 39,757 and 38,562 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively

 

4

 

4

 

Additional paid-in capital

 

220,261

 

211,275

 

Accumulated deficit

 

(127,498

)

(112,601

)

Accumulated other comprehensive loss

 

(901

)

(870

)

Total common stockholders’ equity

 

91,866

 

97,808

 

Non-controlling interests

 

887

 

738

 

Total stockholders’ equity

 

92,753

 

98,546

 

Total liabilities and stockholders’ equity

 

$

374,466

 

$

380,981

 

 

6



 

Boingo Wireless, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 

 

 

Six Months Ended
June 30,

 

 

 

2017

 

2016

 

Cash flows from operating activities

 

 

 

 

 

Net loss

 

$

(14,630

)

$

(17,180

)

Adjustments to reconcile net loss including non-controlling interests to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization of property and equipment

 

30,999

 

21,708

 

Amortization of intangible assets

 

1,821

 

1,727

 

Other

 

53

 

 

Impairment loss and loss on disposal of fixed assets, net

 

440

 

19

 

Stock-based compensation

 

7,332

 

6,684

 

Change in deferred income taxes

 

243

 

256

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

15,975

 

(4,691

)

Prepaid expenses and other assets

 

(553

)

147

 

Accounts payable

 

(2,556

)

(1,199

)

Accrued expenses and other liabilities

 

5,630

 

3,642

 

Deferred revenue

 

2,599

 

44,554

 

Net cash provided by operating activities

 

47,353

 

55,667

 

Cash flows from investing activities

 

 

 

 

 

Purchases of property and equipment

 

(31,917

)

(64,257

)

Payments for asset acquisition

 

(1,150

)

 

Net cash used in investing activities

 

(33,067

)

(64,257

)

Cash flows from financing activities

 

 

 

 

 

Proceeds from credit facility

 

 

5,000

 

Principal payments on credit facility

 

(10,656

)

(438

)

Debt issuance costs

 

 

(124

)

Proceeds from exercise of stock options

 

3,624

 

1,784

 

Payments of capital leases and notes payable

 

(1,819

)

(1,277

)

Payments of withholding tax on net issuance of restricted stock units

 

(2,458

)

(1,520

)

Payments to non-controlling interests

 

(125

)

(286

)

Net cash (used in) provided by financing activities

 

(11,434

)

3,139

 

Effect of exchange rates on cash

 

(16

)

24

 

Net increase (decrease) in cash and cash equivalents

 

2,836

 

(5,427

)

Cash and cash equivalents at beginning of period

 

19,485

 

14,718

 

Cash and cash equivalents at end of period

 

$

22,321

 

$

9,291

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

 

Property and equipment costs in accounts payable, accrued expenses and other liabilities

 

$

22,015

 

$

22,011

 

Purchase of equipment and prepaid maintenance services under capital financing arrangements

 

$

1,976

 

$

3,067

 

 

7



 

Boingo Wireless, Inc.

Reconciliation of Net Loss Attributable to Common Stockholders to Adjusted EBITDA

(Unaudited)

(In thousands)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common stockholders

 

$

(8,017

)

$

(7,266

)

$

(14,897

)

$

(17,250

)

Depreciation and amortization of property and equipment

 

16,014

 

11,400

 

30,999

 

21,708

 

Stock-based compensation expense

 

4,288

 

3,079

 

7,332

 

6,684

 

Amortization of intangible assets

 

910

 

862

 

1,821

 

1,727

 

Income tax expense

 

141

 

124

 

340

 

362

 

Interest and other expense, net

 

46

 

152

 

42

 

182

 

Non-controlling interests

 

160

 

21

 

267

 

70

 

Contested proxy election expense

 

 

902

 

 

1,440

 

Settlement expense

 

2,807

 

 

2,807

 

 

Adjusted EBITDA

 

$

16,349

 

$

9,274

 

$

28,711

 

$

14,923

 

 

8



 

Boingo Wireless, Inc.

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flows

(Unaudited)

(In thousands)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2017

 

2016

 

2017

 

2016

 

Net cash provided by operating activities

 

$

21,821

 

$

14,630

 

$

47,353

 

$

55,667

 

Purchases of property and equipment, net

 

(14,426

)

(18,735

)

(31,917

)

(64,257

)

Free cash flows

 

$

7,395

 

$

(4,105

)

$

15,436

 

$

(8,590

)

 

9



 

Boingo Wireless, Inc.

Revenue Summary

(Unaudited)

(In thousands)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2017

 

2016

 

2017

 

2016

 

Revenue:

 

 

 

 

 

 

 

 

 

DAS

 

$

18,552

 

$

13,892

 

$

34,808

 

$

24,998

 

Military

 

13,542

 

9,734

 

26,083

 

18,832

 

Wholesale—Wi-Fi

 

7,300

 

5,206

 

14,131

 

10,143

 

Retail

 

6,358

 

6,567

 

12,773

 

13,481

 

Advertising and other

 

3,281

 

3,676

 

5,571

 

6,120

 

Total revenue

 

$

49,033

 

$

39,075

 

$

93,366

 

$

73,574

 

 

10



 

Boingo Wireless, Inc.

Reconciliation of Net Loss Attributable to Common Stockholders to Adjusted EBITDA - Guidance

(Unaudited)

(In millions)

 

 

 

Three Months Ended
September 30, 2017

 

Year Ended
December 31, 2017

 

 

 

Low

 

High

 

Low

 

High

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common stockholders

 

$

(7.0

)

$

(4.0

)

$

(28.0

)

$

(24.0

)

Depreciation and amortization of property and equipment

 

17.5

 

66.4

 

Stock-based compensation expense

 

3.3

 

13.8

 

Amortization of intangible assets

 

0.9

 

3.6

 

Income tax expense and interest and other expense, net

 

0.2

 

0.9

 

Non-controlling interests

 

0.1

 

0.5

 

Settlement expense

 

 

2.8

 

Adjusted EBITDA

 

$

15.0

 

$

18.0

 

$

60.0

 

$

64.0

 

 

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Boingo Wireless, Inc.

Key Business Metrics

(Unaudited)

(In thousands)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2017

 

2016

 

2017

 

2016

 

Key business metrics:

 

 

 

 

 

 

 

 

 

DAS nodes(1)

 

20.3

 

13.5

 

20.3

 

13.5

 

DAS nodes in backlog(2)

 

11.0

 

5.0

 

11.0

 

5.0

 

Subscribers—military(3)

 

131

 

79

 

131

 

79

 

Subscribers—retail(3)

 

195

 

184

 

195

 

184

 

Connects(4)

 

52,130

 

31,899

 

95,207

 

62,252

 

 


 

(1)                                  This metric represents the number of active DAS nodes as of the end of the period. A DAS node is a single communications endpoint, typically an antenna, which transmits or receives radio frequency signals wirelessly. This measure is an indicator of the reach of the Company’s DAS network.

(2)                                  This metric represents the number of DAS nodes under contract but not yet active as of the end of the period.

(3)                                  This metric represents the number of paying customers who are on a month-to-month subscription plan at a given period end.

(4)                                  This metric shows how often individuals connect to the Company’s global Wi-Fi network in a given period. The connects include retail and wholesale customers in both customer pay locations and customer free locations where Boingo is a paid service provider or receives revenue sponsorship or promotion fees. The Company counts each connect as a single connect regardless of how many times that individual accesses the network at a given venue during their 24 hour period. This measure is an indicator of paid activity throughout Boingo’s network.

 

CONTACTS:

 

PRESS:

Lauren de la Fuente

Vice President, Marketing and Communications

ldelafuente@boingo.com

(310) 405-8517

 

INVESTORS:

Kimberly Orlando and Ariel Papermaster

ADDO Investor Relations

investors@boingo.com

(310) 829-5400

 

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