- Total revenues of
$12.2 million for the three months endedMarch 31, 2018 , up 21% compared to the three months endedMarch 31, 2017 - Products and licensing revenues of
$7.6 million for the three months endedMarch 31, 2018 , up 29% compared to the three months endedMarch 31, 2017 - Net income improved to
$0.1 million for the three months endedMarch 31, 2018 compared to a net loss of$(1.4) million for the three months endedMarch 31, 2017 - Adjusted EBITDA improved to
$0.6 million for the three months endedMarch 31, 2018 compared to$(0.2) million for the three months endedMarch 31, 2017
“By continuing to focus on our strategic priorities, we delivered a
profitable first quarter for the first time in our history. We drove
robust organic revenue growth of over 20% compared to the three months
ended
For the three months ended
First Quarter Financial Summary
Total revenues for the three months ended March 31, 2018 were
Gross profit was
Selling, general and administrative expenses were
Research, development and engineering expenses were
Net income from continuing operations improved to
Net income attributable to common stockholders for the three months
ended
Non-GAAP Measures
In evaluating the operating performance of its business, Luna’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 Luna believes may not be indicative of its operating performance, because either they are unusual and Luna 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, Luna 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 Luna's expectations
regarding Luna's future top line growth and Luna continuing to leverage
the trends of growth in optical connectivity in high speed networks and
data centers, as well as the expanding use of composite materials and
the need for improved means of testing their structural integrity.
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 Luna 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 Luna's
products and services to meet expectations, technological challenges and
those risks and uncertainties set forth in Luna’s periodic reports and
other filings with the
Luna Innovations Incorporated | ||||||||
Consolidated Statements of Operations | ||||||||
Three Months Ended March 31, |
||||||||
2018 | 2017 | |||||||
(unaudited) | ||||||||
Revenues: | ||||||||
Technology development | $ | 4,636,776 | $ | 4,236,102 | ||||
Products and licensing | 7,556,396 | 5,850,795 | ||||||
Total revenues | 12,193,172 | 10,086,897 | ||||||
Cost of revenues: | ||||||||
Technology development | 3,353,501 | 3,109,467 | ||||||
Products and licensing | 3,813,553 | 3,101,045 | ||||||
Total cost of revenues | 7,167,054 | 6,210,512 | ||||||
Gross profit | 5,026,118 | 3,876,385 | ||||||
Operating expense: | ||||||||
Selling, general and administrative | 3,809,617 | 3,722,170 | ||||||
Research, development and engineering | 1,101,488 | 928,772 | ||||||
Total operating expense | 4,911,105 | 4,650,942 | ||||||
Operating income/(loss) | 115,013 | (774,557 | ) | |||||
Other income/(expense): | ||||||||
Investment income | 75,912 | — | ||||||
Other (expense)/income | (115 | ) | 351 | |||||
Interest expense | (40,738 | ) | (64,374 | ) | ||||
Total other income/(expense) | 35,059 | (64,023 | ) | |||||
Income/(loss) from continuing operations before income taxes | 150,072 | (838,580 | ) | |||||
Income tax expense | 1,396 | 26,690 | ||||||
Net income/(loss) from continuing operations | 148,676 | (865,270 | ) | |||||
Loss from discontinued operations, net of income tax of $0 | — | (490,717 | ) | |||||
Net loss from discontinued operations | — | (490,717 | ) | |||||
Net income/(loss) | 148,676 | (1,355,987 | ) | |||||
Preferred stock dividend | 64,425 | 34,096 | ||||||
Net income/(loss) attributable to common stockholders | $ | 84,251 | $ | (1,390,083 | ) | |||
Net income/(loss) per share from continuing operations: | ||||||||
Basic | $ | 0.01 | $ | (0.03 | ) | |||
Diluted | $ | — | $ | (0.03 | ) | |||
Net loss per share from discontinued operations: | ||||||||
Basic | $ | — | $ | (0.02 | ) | |||
Diluted | $ | — | $ | (0.02 | ) | |||
Net income/(loss) per share attributable to common stockholders: | ||||||||
Basic | $ | — | $ | (0.05 | ) | |||
Diluted | $ | — | $ | (0.05 | ) | |||
Weighted average common shares and common equivalent shares outstanding: | ||||||||
Basic | 27,204,989 | 27,541,356 | ||||||
Diluted | 31,198,833 | 27,541,356 |
Luna Innovations Incorporated | ||||||||
Consolidated Balance Sheets | ||||||||
March 31, 2018 | December 31, 2017 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 33,442,674 | $ | 36,981,533 | ||||
Accounts receivable, net | 8,098,703 | 7,869,168 | ||||||
Receivable from sale of HSOR business | 4,001,496 | 4,000,976 | ||||||
Contract assets | 2,408,930 | 1,778,142 | ||||||
Inventory | 6,534,899 | 6,951,110 | ||||||
Prepaid expenses and other current assets | 1,086,837 | 1,220,650 | ||||||
Total current assets | 55,573,539 | 58,801,579 | ||||||
Long-term contract assets | 263,722 | 209,699 | ||||||
Property and equipment, net | 3,425,544 | 3,453,741 | ||||||
Intangible assets, net | 3,204,843 | 3,237,593 | ||||||
Goodwill | 502,000 | 502,000 | ||||||
Other assets | 18,024 | 18,024 | ||||||
Total assets | $ | 62,987,672 | $ | 66,222,636 | ||||
Liabilities and stockholders’ equity | ||||||||
Liabilities: | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt obligations | $ | 1,750,000 | $ | 1,833,333 | ||||
Current portion of capital lease obligations | 38,145 | 43,665 | ||||||
Accounts payable | 2,357,649 | 2,962,863 | ||||||
Accrued liabilities | 5,742,777 | 6,557,649 | ||||||
Contract liabilities | 1,804,125 | 3,428,625 | ||||||
Total current liabilities | 11,692,696 | 14,826,135 | ||||||
Long-term deferred rent | 1,148,370 | 1,184,438 | ||||||
Long-term debt obligations | 232,084 | 603,007 | ||||||
Long-term capital lease obligations | 63,184 | 71,275 | ||||||
Total liabilities | 13,136,334 | 16,684,855 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at March 31, 2018 and December 31, 2017 | 1,322 | 1,322 | ||||||
Common stock, par value $0.001, 100,000,000 shares authorized, 28,365,549 and 28,354,822 shares issued, 27,162,195 and 27,283,918 shares outstanding at March 31, 2018 and December 31, 2017 | 29,217 | 29,186 | ||||||
Treasury stock at cost, 1,203,354 and 1,070,904 shares at March 31, 2018 and December 31, 2017 | (1,955,787 | ) | (1,649,746 | ) | ||||
Additional paid-in capital | 83,744,496 | 83,563,208 | ||||||
Accumulated deficit | (31,967,910 | ) | (32,406,189 | ) | ||||
Total stockholders’ equity | 49,851,338 | 49,537,781 | ||||||
Total liabilities and stockholders’ equity | $ | 62,987,672 | $ | 66,222,636 |
Luna Innovations Incorporated | ||||||||
Consolidated Statements of Cash Flows | ||||||||
Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
(unaudited) | ||||||||
Cash flows provided by/(used in) operating activities | ||||||||
Net income/(loss) | $ | 148,676 | $ | (1,355,987 | ) | |||
Adjustments to reconcile net income/(loss) to net cash (used in)/provided by operating activities | ||||||||
Depreciation and amortization | 307,852 | 956,687 | ||||||
Share-based compensation | 94,606 | 170,084 | ||||||
Bad debt expense | — | 29,671 | ||||||
Change in assets and liabilities | ||||||||
Accounts receivable | (229,535 | ) | 1,824,454 | |||||
Contract assets | 221,386 | 187,448 | ||||||
Inventory | (110,095 | ) | (352,435 | ) | ||||
Other current assets | 133,293 | 55,092 | ||||||
Accounts payable and accrued expenses | (1,456,154 | ) | (1,464,847 | ) | ||||
Contract liabilities | (1,650,363 | ) | 13,880 | |||||
Net cash (used in)/provided by operating activities | (2,540,334 | ) | 64,047 | |||||
Cash flows used in investing activities | ||||||||
Acquisition of property and equipment | (129,720 | ) | (157,308 | ) | ||||
Intangible property costs | (113,108 | ) | (133,054 | ) | ||||
Net cash used in investing activities | (242,828 | ) | (290,362 | ) | ||||
Cash flows used in financing activities | ||||||||
Payments on capital lease obligations | (13,611 | ) | (12,697 | ) | ||||
Payments of debt obligations | (458,333 | ) | (458,333 | ) | ||||
Repurchase of common stock | (306,041 | ) | — | |||||
Proceeds from the exercise of options | 22,288 | 820 | ||||||
Net cash used in financing activities | (755,697 | ) | (470,210 | ) | ||||
Net decrease in cash or cash equivalents | (3,538,859 | ) | (696,525 | ) | ||||
Cash and cash equivalents-beginning of period | 36,981,533 | 12,802,458 | ||||||
Cash and cash equivalents-end of period | $ | 33,442,674 | $ | 12,105,933 |
Luna Innovations Incorporated | ||||||||
Reconciliation of Net Income/(Loss) to EBITDA and Adjusted EBITDA | ||||||||
Three Months Ended March 31, |
||||||||
2018 | 2017 | |||||||
(unaudited) | ||||||||
Net income/(loss) | $ | 148,676 | $ | (1,355,987 | ) | |||
Less loss from discontinued operations, net of income taxes | — | (490,717 | ) | |||||
Net income/(loss) from continuing operations | 148,676 | (865,270 | ) | |||||
Interest expense | 40,738 | 64,374 | ||||||
Tax expense | 1,396 | 26,690 | ||||||
Depreciation and amortization | 307,852 | 356,816 | ||||||
EBITDA | 498,662 | (417,390 | ) | |||||
Share-based compensation | 94,606 | 170,084 | ||||||
Adjusted EBITDA | $ | 593,268 | $ | (247,306 | ) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20180509006394/en/
Source:
Investor Contact:
Luna Innovations Incorporated
Dale
Messick, CFO, 1-540-769-8400
[email protected]