- Revenue of
$13.2 million and$46.2 million for the quarter and full fiscal year endedDecember 31, 2017 , up 12.1% and 10.4%, respectively versus same periods prior year - Net income from continuing operations of
$0.2 million , which includes effects of a one-time pre-tax charge of$0.7 million , and adjusted EBITDA of$1.2 million for the quarter endedDecember 31, 2017 , compared to$0.3 million and$1.0 million , respectively, for the same period last year - Net loss from continuing operations of less than
$0.1 million , which includes effects of a one-time pre-tax charge of$0.7 million , and Adjusted EBITDA of$2.5 million for the full year endedDecember 31, 2017 , each up$2.6 million versus the prior full year
“We are extremely pleased about our continued progress strategically and
operationally, which resulted in our strong financial performance both
for the fourth quarter and the full year ended
Total revenues for the three months ended December 31, 2017, were
The company recognized income from continuing operations of
Fourth Quarter Financial Highlights
Gross profit increased to
Selling, general and administrative expenses increased to
Before taxes, the company achieved essentially break-even results from
continuing operations for the three months ended December 31, 2017,
compared to pre-tax income from continuing operations of
The company had income from discontinued operations of
Net income attributable to common stockholders was
Cash and cash equivalents were
Full Year 2017 Financial Highlights
Total revenues were
Gross profit for the year ended December 31, 2017, grew to
Selling, general and administrative expenses remained flat at
Research, development and engineering expenses were
The company's resulting pre-tax loss from continuing operations improved
to
For the year ended December 31, 2017, the company recognized income from
discontinued operations of
The company recognized net income 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 potential for continued growth in
2018 and beyond. 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,
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, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenues: | ||||||||||||||||
Technology development revenues | $ | 5,147,954 | $ | 4,508,851 | $ | 18,576,383 | $ | 16,280,582 | ||||||||
Products and licensing revenues | 8,067,243 | 7,284,556 | 27,660,891 | 25,587,187 | ||||||||||||
Total revenues | 13,215,197 | 11,793,407 | 46,237,274 | 41,867,769 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Technology development costs | 3,943,118 | 3,486,897 | 13,988,378 | 12,473,211 | ||||||||||||
Products and licensing costs | 3,919,842 | 3,634,871 | 14,120,071 | 13,589,858 | ||||||||||||
Total cost of revenues | 7,862,960 | 7,121,768 | 28,108,449 | 26,063,069 | ||||||||||||
Gross profit | 5,352,237 | 4,671,639 | 18,128,825 | 15,804,700 | ||||||||||||
Operating expense: | ||||||||||||||||
Selling, general and administrative | 4,427,717 | 3,467,323 | 14,770,986 | 14,763,709 | ||||||||||||
Research, development, and engineering | 887,719 | 750,426 | 3,469,193 | 3,540,227 | ||||||||||||
Total operating expense | 5,315,436 | 4,217,749 | 18,240,179 | 18,303,936 | ||||||||||||
Operating income/(loss) | 36,801 | 453,890 | (111,354 | ) | (2,499,236 | ) | ||||||||||
Other expense: | ||||||||||||||||
Other income/(expense), net | 175 | 15,002 | (4,498 | ) | 13,071 | |||||||||||
Interest expense, net | (38,647 | ) | (82,253 | ) | (218,506 | ) | (319,334 | ) | ||||||||
Total other expense | (38,472 | ) | (67,251 | ) | (223,004 | ) | (306,263 | ) | ||||||||
(Loss)/income from continuing operations before income taxes | (1,671 | ) | 386,639 | (334,358 | ) | (2,805,499 | ) | |||||||||
Income tax (benefit)/expense | (235,915 | ) | 38,233 | (295,753 | ) | (135,567 | ) | |||||||||
Income/(loss) from continuing operations | 234,244 | 348,406 | (38,605 | ) | (2,669,932 | ) | ||||||||||
Income/(loss) from discontinued operations, net of income taxes | 201,085 | (42,246 | ) | 14,653,510 | 300,440 | |||||||||||
Net income/(loss) | 435,329 | 306,160 | 14,614,905 | (2,369,492 | ) | |||||||||||
Preferred stock dividend | 49,558 | 30,527 | 146,889 | 105,258 | ||||||||||||
Net income/(loss) attributable to common stockholders | $ | 385,771 | $ | 275,633 | $ | 14,468,016 | $ | (2,474,750 | ) | |||||||
Net income/(loss) per share from continuing operations: | ||||||||||||||||
Basic | $ | 0.01 | $ | 0.01 | $ | — | $ | (0.10 | ) | |||||||
Diluted | $ | 0.01 | $ | 0.01 | $ | — | $ | (0.10 | ) | |||||||
Net income/(loss) per share from discontinued operations: | ||||||||||||||||
Basic | $ | 0.01 | $ | — | $ | 0.53 | $ | 0.01 | ||||||||
Diluted | $ | 0.01 | $ | — | $ | 0.53 | $ | 0.01 | ||||||||
Net income/(loss) per share attributable to common stockholders: | ||||||||||||||||
Basic | $ | 0.01 | $ | 0.01 | $ | 0.52 | $ | (0.09 | ) | |||||||
Diluted | $ | 0.01 | $ | 0.01 | $ | 0.52 | $ | (0.09 | ) | |||||||
Weighted average shares: | ||||||||||||||||
Basic | 27,485,278 | 27,543,882 | 27,579,988 | 27,547,217 | ||||||||||||
Diluted | 31,790,418 | 32,568,289 | 27,579,988 | 27,547,217 | ||||||||||||
Luna Innovations Incorporated |
||||||||
Consolidated Balance Sheets |
||||||||
December 31, 2017 |
December 31, 2016 |
|||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 36,981,533 | $ | 12,802,458 | ||||
Accounts receivable, net | 9,857,009 | 10,269,012 | ||||||
Receivable from sale of HSOR business | 4,000,976 | — | ||||||
Inventory, net | 6,951,110 | 6,848,835 | ||||||
Prepaid expenses | 1,220,650 | 1,375,659 | ||||||
Current assets held for sale | — | 5,801,629 | ||||||
Total current assets | 59,011,278 | 37,097,593 | ||||||
Property and equipment, net | 3,453,741 | 3,482,687 | ||||||
Intangible assets, net | 3,237,593 | 3,367,217 | ||||||
Goodwill | 502,000 | 502,000 | ||||||
Other assets | 18,024 | 38,194 | ||||||
Non-current assets held for sale | — | 10,509,282 | ||||||
Total assets | $ | 66,222,636 | $ | 54,996,973 | ||||
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 | 43,665 | 52,128 | ||||||
Accounts payable | 2,962,863 | 2,954,742 | ||||||
Accrued liabilities | 8,959,935 | 7,913,544 | ||||||
Deferred revenue | 1,026,339 | 837,906 | ||||||
Current liabilities held for sale | — | 2,376,703 | ||||||
Total current liabilities | 14,826,135 | 15,968,356 | ||||||
Long-term deferred rent | 1,184,438 | 1,319,402 | ||||||
Long-term debt obligation | 603,007 | 2,420,032 | ||||||
Long-term capital lease obligation | 71,275 | 114,940 | ||||||
Non-current liabilities held for sale | — | 84,555 | ||||||
Total liabilities | 16,684,855 | 19,907,285 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at December 31, 2017 and 2016 | 1,322 | 1,322 | ||||||
Common stock, par value $0.001, 100,000,000 shares authorized, 28,354,822 and 27,988,104 shares issued, 27,283,918 and 27,541,277 shares outstanding at December 31, 2017 and 2016, respectively | 29,186 | 28,600 | ||||||
Treasury stock at cost, 1,070,904 and 446,827 shares at December 31, 2017 and 2016, respectively | (1,649,746 | ) | (517,987 | ) | ||||
Additional paid-in capital | 83,563,208 | 82,451,958 | ||||||
Accumulated deficit | (32,406,189 | ) | (46,874,205 | ) | ||||
Total stockholders’ equity | 49,537,781 | 35,089,688 | ||||||
Total liabilities and stockholders’ equity | $ | 66,222,636 | $ | 54,996,973 | ||||
Luna Innovations Incorporated |
||||||||
Consolidated Statements of Cash Flows |
||||||||
Years ended December 31, | ||||||||
2017 | 2016 | |||||||
(unaudited) | ||||||||
Cash flows provided by/(used in) operating activities: | ||||||||
Net income/(loss) | $ | 14,614,905 | $ | (2,369,492 | ) | |||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||||
Depreciation and amortization | 2,526,609 | 3,713,879 | ||||||
Stock-based compensation | 715,094 | 860,215 | ||||||
Loss on disposal of fixed assets | 3,640 | — | ||||||
Gain on sale of discontinued operations, net of income taxes | (15,671,028 | ) | — | |||||
Bad Debt | 99,888 | 305,593 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 1,152,055 | (3,568,761 | ) | |||||
Inventory | (1,902,311 | ) | 492,932 | |||||
Other assets | 83,428 | (238,736 | ) | |||||
Accounts payable and accrued expenses | (896,534 | ) | 564,689 | |||||
Deferred credits | 189,296 | (160,156 | ) | |||||
Net cash provided by/(used in) operating activities | 915,042 | (399,837 | ) | |||||
Cash flows provided by/(used in) investing activities: | ||||||||
Acquisition of property and equipment | (1,352,531 | ) | (1,509,984 | ) | ||||
Proceeds from sale of property and equipment | 3,000 | — | ||||||
Intangible property costs | (495,597 | ) | (490,200 | ) | ||||
Proceeds from sale of discontinued operations, net | 28,026,528 | — | ||||||
Net cash provided by/(used in) investing activities | 26,181,400 | (2,000,184 | ) | |||||
Cash flows used in financing activities: | ||||||||
Payments on debt obligations | (1,833,333 | ) | (1,871,635 | ) | ||||
Payments on capital lease obligation | (52,128 | ) | (56,873 | ) | ||||
Purchase of treasury stock | (1,131,759 | ) | (333,053 | ) | ||||
Borrowings under term loans | — | — | ||||||
Proceeds from the exercise of options | 99,853 | — | ||||||
Net cash used in financing activities | (2,917,367 | ) | (2,261,561 | ) | ||||
Net change in cash and cash equivalents | 24,179,075 | (4,661,582 | ) | |||||
Cash and cash equivalents—beginning of period | 12,802,458 | 17,464,040 | ||||||
Cash and cash equivalents—end of period | $ | 36,981,533 | $ | 12,802,458 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for interest | $ | 209,497 | $ | 308,116 | ||||
Dividend on preferred stock, 79,292 shares of common stock issuable for each of the years ended December 31, 2017 and 2016 | $ | 146,889 | $ | 105,258 | ||||
Cash paid for income taxes | $ | 377,907 | $ | 233,732 | ||||
Cash received for income tax refunds | $ | — | $ | 67,127 | ||||
Luna Innovations Incorporated |
|||||||||||||||
Reconciliation of Income/(Loss) from Continuing Operations to EBITDA and Adjusted EBITDA |
|||||||||||||||
Three months ended December 31, |
Year ended December 31, |
||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Income/(loss) from continuing operations | $ | 234,244 | $ | 348,406 | $ | (38,605 | ) | $ | (2,669,932 | ) | |||||
Interest expense | 38,647 | 82,253 | 218,506 | 319,334 | |||||||||||
Income tax (benefit)/expense | (235,915 | ) | 38,233 | (295,753 | ) | (135,567 | ) | ||||||||
Depreciation and amortization | 375,049 | 376,931 | 1,261,768 | 1,466,171 | |||||||||||
EBITDA | 412,025 | 845,823 | 1,145,916 | (1,019,994 | ) | ||||||||||
Share-based compensation | 238,667 | 194,861 | 715,094 | 860,215 | |||||||||||
CEO separation costs other than share-based compensation | 595,992 | — | 595,992 | — | |||||||||||
Adjusted EBITDA | $ | 1,246,684 | $ | 1,040,684 | $ | 2,457,002 | $ | (159,779 | ) | ||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180320006496/en/
Source:
Investor Contact:
Luna Innovations Incorporated
Dale
Messick, CFO, 1-540-769-8400
[email protected]