Pre-tax income from continuing operations of
Adjusted EBITDA of
Pre-tax loss from continuing operations of
Adjusted EBITDA of
For the three months ended December 31, 2016, the company recognized
pre-tax income from continuing operations of
“Following our merger with API in 2015, we have remained focused on the
successful execution of our key strategic initiatives and the
realization of operational synergies from the merger to drive the
company to profitability,” said
Fourth Quarter Financial Highlights
Total revenues for the three months ended December 31, 2016, were
Gross profit increased to
Selling, general and administrative expenses increased slightly to
Before taxes, the company recognized income from continuing operations
of
The company had no income from discontinued operations for the three
months ended December 31, 2016. Income from discontinued operations was
Net income attributable to common stockholders was
Cash and cash equivalents were
Full Year 2016 Financial Highlights
Total revenues were
Gross profit for the year ended December 31, 2016, grew to
Selling, general and administrative expenses decreased to
Research, development and engineering expenses increased to
The company's resulting pre-tax loss from continuing operations improved
to
For the year ended December 31, 2015, the company recognized income from
discontinued operations of
The company recognized a net loss attributable to common stockholders of
Non-GAAP Measures
In evaluating the operating performance of its business, the company's management considers adjusted EBITDA, which excludes certain charges and credits that are required by generally accepted accounting principles (“GAAP”). Adjusted EBITDA provides useful information to both management and investors by excluding the effect of certain non-cash expenses and items that the company believes may not be indicative of its operating performance, because either they are unusual and the company does not expect them to recur in the ordinary course of its business or they are unrelated to the ongoing operation of the business in the ordinary course. Adjusted EBITDA should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. Adjusted EBITDA has been reconciled to the nearest GAAP measure in the table following the financial statements attached to this press release.
Conference Call Information
As previously announced, the company will conduct an investor conference
call at
About Luna:
Forward-Looking Statements:
The statements in this release that are not historical facts constitute
“forward-looking statements” made pursuant to the safe harbor provision
of the Private Securities Litigation Reform Act of 1995 that involve
risks and uncertainties. These statements include the company's
expectations regarding the company’s future financial performance.
Management cautions the reader that these forward-looking statements are
only predictions and are subject to a number of both known and unknown
risks and uncertainties, and actual results, performance, and/or
achievements of the company may differ materially from the future
results, performance, and/or achievements expressed or implied by these
forward-looking statements as a result of a number of factors. These
factors include, without limitation, failure of demand for the company’s
products and services to meet expectations, integration or other
operational issues related to the merger, technological challenges and
those risks and uncertainties set forth in the company’s periodic
reports and other filings with the
Luna Innovations Incorporated | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
Three months ended December 31, | Years ended December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenues: | ||||||||||||||||
Technology development revenues | $ | 4,653,141 | $ | 3,717,820 | $ | 16,825,157 | $ | 13,599,048 | ||||||||
Products and licensing revenues | 11,305,018 | 11,732,459 | 42,385,839 | 30,421,310 | ||||||||||||
Total revenues | 15,958,159 | 15,450,279 | 59,210,996 | 44,020,358 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Technology development costs | 3,544,065 | 3,159,858 | 12,711,447 | 10,378,616 | ||||||||||||
Products and licensing costs | 6,303,086 | 7,254,523 | 24,764,788 | 17,141,079 | ||||||||||||
Total cost of revenues | 9,847,151 | 10,414,381 | 37,476,235 | 27,519,695 | ||||||||||||
Gross profit | 6,111,008 | 5,035,898 | 21,734,761 | 16,500,663 | ||||||||||||
Operating expense: | ||||||||||||||||
Selling, general and administrative | 4,346,919 | 4,209,480 | 18,139,966 | 18,481,270 | ||||||||||||
Research, development, and engineering | 1,337,306 | 1,641,783 | 5,532,130 | 4,268,988 | ||||||||||||
Total operating expense | 5,684,225 | 5,851,263 | 23,672,096 | 22,750,258 | ||||||||||||
Operating income/(loss) | 426,783 | (815,365 | ) | (1,937,335 | ) | (6,249,595 | ) | |||||||||
Other expense: | ||||||||||||||||
Other income/(expense), net | 1,118 | (4,769 | ) | (35,849 | ) | (9,967 | ) | |||||||||
Interest expense, net | (82,253 | ) | (83,882 | ) | (320,942 | ) | (220,403 | ) | ||||||||
Total other expense | (81,135 | ) | (88,651 | ) | (356,791 | ) | (230,370 | ) | ||||||||
Income/(loss) from continuing operations before income taxes | 345,648 | (904,016 | ) | (2,294,126 | ) | (6,479,965 | ) | |||||||||
Income tax expense/(benefit) | 39,488 | (489,709 | ) | 75,366 | (470,605 | ) | ||||||||||
Income/(loss) from continuing operations | 306,160 | (414,307 | ) | (2,369,492 | ) | (6,009,360 | ) | |||||||||
Income from discontinued operations, net of income taxes | — | 8,328,790 | — | 8,326,386 | ||||||||||||
Net income/(loss) | 306,160 | 7,914,483 | (2,369,492 | ) | 2,317,026 | |||||||||||
Preferred stock dividend | 30,527 | 21,012 | 105,258 | 85,830 | ||||||||||||
Net income/(loss) attributable to common stockholders | $ | 275,633 | $ | 7,893,471 | $ | (2,474,750 | ) | $ | 2,231,196 | |||||||
Net income/(loss) per share from continuing operations: | ||||||||||||||||
Basic and diluted | $ | 0.01 | $ | (0.02 | ) | $ | (0.09 | ) | $ | (0.26 | ) | |||||
Net income per share from discontinued operations: | ||||||||||||||||
Basic and diluted | $ | — | $ | 0.30 | $ | — | $ | 0.36 | ||||||||
Net income/(loss) per share attributable to common stockholders: | ||||||||||||||||
Basic and diluted | $ | 0.01 | $ | 0.29 | $ | (0.09 | ) | $ | 0.10 | |||||||
Weighted average shares: | ||||||||||||||||
Basic | 27,538,606 | 27,464,993 | 27,547,217 | 23,026,494 | ||||||||||||
Diluted | 32,563,013 | 27,464,993 | 27,547,217 | 23,026,494 |
Luna Innovations Incorporated | ||||||||
Consolidated Balance Sheets | ||||||||
December 31, |
December 31, |
|||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 12,802,458 | $ | 17,464,040 | ||||
Accounts receivable, net | 14,297,725 | 11,034,557 | ||||||
Inventory, net | 8,370,235 | 8,863,167 | ||||||
Prepaid expenses | 1,627,175 | 1,388,439 | ||||||
Total current assets | 37,097,593 | 38,750,203 | ||||||
Property and equipment, net | 6,780,838 | 6,614,238 | ||||||
Intangible assets, net | 8,681,263 | 10,404,312 | ||||||
Goodwill | 2,348,331 | 2,274,112 | ||||||
Other assets | 88,948 | 88,948 | ||||||
Total assets | $ | 54,996,973 | $ | 58,131,813 | ||||
Liabilities and stockholders’ equity | ||||||||
Current Liabilities: | ||||||||
Current portion of long term debt obligation | 1,833,333 | 1,833,333 | ||||||
Current portion of capital lease obligation | 52,128 | 31,459 | ||||||
Accounts payable | 4,466,192 | 4,054,425 | ||||||
Accrued liabilities | 8,667,100 | 8,304,686 | ||||||
Deferred revenue | 949,603 | 1,109,759 | ||||||
Total current liabilities | 15,968,356 | 15,333,662 | ||||||
Long-term deferred rent | 1,403,957 | 1,564,229 | ||||||
Long-term debt obligation | 2,420,032 | 4,291,667 | ||||||
Long-term capital lease obligation | 114,940 | 35,237 | ||||||
Total liabilities | 19,907,285 | 21,224,795 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at December 31, 2016 and 2015 | 1,322 | 1,322 | ||||||
Common stock, par value $0.001, 100,000,000 shares authorized, 27,988,104 and 27,644,833 shares issued, 27,541,277 and 27,477,181 shares outstanding at December 31, 2016 and 2015, respectively | 28,600 | 28,178 | ||||||
Treasury stock at cost, 167,652 shares at December 31, 2016 and 22,725 shares at December 31, 2015 | (517,987 | ) | (184,934 | ) | ||||
Additional paid-in capital | 82,451,958 | 81,461,907 | ||||||
Accumulated deficit | (46,874,205 | ) | (44,399,455 | ) | ||||
Total stockholders’ equity | 35,089,688 | 36,907,018 | ||||||
Total liabilities and stockholders’ equity | $ | 54,996,973 | $ | 58,131,813 |
Luna Innovations Incorporated | ||||||||
Consolidated Statements of Cash Flows | ||||||||
Years ended December 31, | ||||||||
2016 | 2015 | |||||||
(unaudited) | ||||||||
Cash flows used in operating activities: | ||||||||
Net income | $ | (2,369,492 | ) | $ | 2,317,026 | |||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Depreciation and amortization | 3,713,879 | 2,457,032 | ||||||
Stock-based compensation | 860,215 | 1,124,379 | ||||||
Gain on sale of discontinued operations, net of income taxes | — | (8,326,386 | ) | |||||
Allowance for doubtful accounts | 305,593 | 10,375 | ||||||
Tax benefit from utilization of loss from current year operations | — | (510,772 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (3,568,761 | ) | (2,040,323 | ) | ||||
Inventory | 492,932 | (252,934 | ) | |||||
Other assets | (238,736 | ) | (131,411 | ) | ||||
Accounts payable and accrued expenses | 564,689 | 16,429 | ||||||
Deferred credits | (160,156 | ) | 248,678 | |||||
Net cash used in operating activities | (399,837 | ) | (5,087,907 | ) | ||||
Cash flows (used in)/provided by investing activities: | ||||||||
Acquisition of property and equipment | (1,509,984 | ) | (710,348 | ) | ||||
Intangible property costs | (490,200 | ) | (367,050 | ) | ||||
Cash acquired in business combination | — | 374,517 | ||||||
Proceeds from sale of discontinued operations, net | — | 8,997,595 | ||||||
Net cash (used in)/provided by investing activities | (2,000,184 | ) | 8,294,714 | |||||
Cash flows (used in)/ provided by/ financing activities: | ||||||||
Payments on debt obligations | (1,871,635 | ) | (6,712,355 | ) | ||||
Payments on capital lease obligation | (56,873 | ) | (77,184 | ) | ||||
Purchase of treasury stock | (333,053 | ) | (152,713 | ) | ||||
Borrowings under term loans | — | 7,000,000 | ||||||
Proceeds from the exercise of options and warrants | — | 82,516 | ||||||
Net cash (used in)/provided by financing activities | (2,261,561 | ) | 140,264 | |||||
Net change in cash and cash equivalents | (4,661,582 | ) | 3,347,071 | |||||
Cash and cash equivalents—beginning of period | 17,464,040 | 14,116,969 | ||||||
Cash and cash equivalents—end of period | $ | 12,802,458 | $ | 17,464,040 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for interest | $ | 308,116 | $ | 187,017 | ||||
Dividend on preferred stock, 79,292 shares of common stock issuable for each of the years ended December 31, 2016 and 2015 | $ | 105,258 | $ | 85,830 | ||||
Cash paid for income taxes | $ | 233,732 | $ | 40,167 | ||||
Cash received for income tax refunds | $ | 67,127 | $ | — |
Luna Innovations Incorporated | ||||||||||||||||
Reconciliation of Income/(Loss) from Continuing Operations Before Income Taxes to EBITDA and Adjusted EBITDA | ||||||||||||||||
Three months ended December 31, |
Year ended December 31, |
|||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Income/(loss) from continuing operations before income taxes | $ | 345,648 | $ | (904,016 | ) | $ | (2,294,126 | ) | $ | (6,479,965 | ) | |||||
Interest expense | 82,253 | 83,882 | 320,942 | 220,403 | ||||||||||||
Depreciation and amortization | 954,002 | 908,224 | 3,713,879 | 2,457,032 | ||||||||||||
EBITDA | 1,381,903 | 88,090 | 1,740,695 | (3,802,530 | ) | |||||||||||
Share-based compensation | 194,861 | 277,714 | 860,215 | 1,124,379 | ||||||||||||
Transaction costs | — | 54,840 | — | 3,704,019 | ||||||||||||
Adjusted EBITDA | $ | 1,576,764 | $ | 420,644 | $ | 2,600,910 | $ | 1,025,868 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20170316006261/en/
Source:
Luna Innovations Incorporated
Investor Contact:
Dale
Messick, CFO
1 540-769-8400
[email protected]