Adjusted EBITDA of
The company's adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA") was
“Our positive Adjusted EBITDA in this first quarter following our merger
with Advanced Photonix clearly demonstrates the value that we expected
to achieve in combining these two companies,” said
-
Total revenues for the second quarter of 2015 were
$10.0 million , including revenues from API's business from the date of the closing of the merger onMay 8, 2015 throughJune 30, 2015 . -
Products and licensing revenues for the second quarter of 2015 were
$6.3 million , including revenues from API's business from the closing of the merger throughJune 30, 2015 .-
Revenues from sales of legacy Luna products increased
$0.7 million , or 35%, for the second quarter of 2015 compared to the second quarter of 2014.
-
Revenues from sales of legacy Luna products increased
- Gross margin for the second quarter of 2015 improved to 42% compared to 38% for the second quarter of 2014.
"With our potential for accelerated growth and spreading our operating costs over a broader revenue base, we remain excited about the opportunity for improved financial results in the coming periods,” Chung said.
Second Quarter Financial Summary
Total revenues for the three months ended
Gross profit increased to
Selling, general and administrative expenses increased to
Research, development and engineering expenses increased to
Growth in revenues and margins were offset by increased operating
expenses, particularly as a result of the costs incurred in connection
with the merger, resulting in an operating loss of
Net loss attributable to common stockholders for the second quarter of
2015 was
Adjusted EBITDA improved to
Year to Date Financial Summary
For the six months ended
Gross profit increased to
Selling, general and administrative expenses increased to
Net loss attributable to common stockholders was
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 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, including expenses incurred in connection with Luna's merger with API. 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 the company's
expectations regarding the company’s future financial performance,
operating results and future growth of the company’s business, greater
capabilities following the completion of the merger with API, potential
demand for the company's high speed optical receiver and detector
products, and potential for improved 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 June 30, |
Six Months Ended June 30, |
|||||||||||||||||||
| 2014 | 2015 | 2014 | 2015 | |||||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Technology development revenues | $ | 3,219,435 | $ | 3,728,271 | $ | 5,894,887 | $ | 6,603,786 | ||||||||||||
| Products and licensing revenues | 2,008,862 | 6,297,475 | 3,805,291 | 8,761,062 | ||||||||||||||||
| Total revenues | 5,228,297 | 10,025,746 | 9,700,178 | 15,364,848 | ||||||||||||||||
| Cost of revenues: | ||||||||||||||||||||
| Technology development costs | 2,388,801 | 2,576,145 | 4,413,956 | 4,659,769 | ||||||||||||||||
| Products and licensing costs | 851,490 | 3,252,627 | 1,746,130 | 4,219,317 | ||||||||||||||||
| Total cost of revenues | 3,240,291 | 5,828,772 | 6,160,086 | 8,879,086 | ||||||||||||||||
| Gross Profit | 1,988,006 | 4,196,974 | 3,540,092 | 6,485,762 | ||||||||||||||||
| Operating expense: | ||||||||||||||||||||
| Selling, general and administrative | 2,466,626 | 5,518,656 | 5,221,704 | 10,087,609 | ||||||||||||||||
| Research, development and engineering | 484,509 | 801,221 | 1,233,663 | 1,136,111 | ||||||||||||||||
| Total operating expense | 2,951,135 | 6,319,877 | 6,455,367 | 11,223,720 | ||||||||||||||||
| Operating loss | (963,129 | ) | (2,122,903 | ) | (2,915,275 | ) | (4,737,958 | ) | ||||||||||||
| Other income/(expense): | ||||||||||||||||||||
| Other income, net | 29,325 | 4,264 | 111,431 | 4,109 | ||||||||||||||||
| Interest expense | (27,302 | ) | (49,966 | ) | (59,667 | ) | (59,103 | ) | ||||||||||||
| Total other income/(expense) | 2,023 | (45,702 | ) | 51,764 | (54,994 | ) | ||||||||||||||
| Loss from continuing operations, before income taxes | (961,106 | ) | (2,168,605 | ) | (2,863,511 | ) | (4,792,952 | ) | ||||||||||||
| Income tax (benefit)/expense | (375,983 | ) | — | (1,145,173 | ) | 2,808 | ||||||||||||||
| Net loss from continuing operations | (585,123 | ) | (2,168,605 | ) | (1,718,338 | ) | (4,795,760 | ) | ||||||||||||
| (Loss)/income from discontinued operations, net of income taxes | (330,716 | ) | — | 9,342,723 | — | |||||||||||||||
| Net (loss)/income | (915,839 | ) | (2,168,605 | ) | 7,624,385 | (4,795,760 | ) | |||||||||||||
| Preferred stock dividend | 27,334 | 20,021 | 56,870 | 46,581 | ||||||||||||||||
| Net (loss)/income attributable to common stockholders | $ | (943,173 | ) | $ | (2,188,626 | ) | $ | 7,567,515 | $ | (4,842,341 | ) | |||||||||
| Net loss per share from continuing operations: | ||||||||||||||||||||
| Basic and diluted | $ | (0.04 | ) | $ | (0.10 | ) | $ | (0.12 | ) | $ | (0.26 | ) | ||||||||
| Net (loss)/income per share from discontinued operations: | ||||||||||||||||||||
| Basic and diluted | $ | (0.02 | ) | $ | — | $ | 0.63 | $ | — | |||||||||||
| Net (loss)/income per share attributable to common stockholders: | ||||||||||||||||||||
| Basic and diluted | $ | (0.06 | ) | $ | (0.10 | ) | $ | 0.51 | $ | (0.26 | ) | |||||||||
| Weighted average common shares and common equivalent shares outstanding: | ||||||||||||||||||||
| Basic and diluted | 14,817,084 | 21,997,768 | 14,722,474 | 18,577,006 | ||||||||||||||||
|
Luna Innovations Incorporated Consolidated Balance Sheets |
||||||||||
| December 31, 2014 | June 30, 2015 | |||||||||
| (unaudited) | ||||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 14,116,969 | $ | 7,512,513 | ||||||
| Accounts receivable, net | 5,689,615 | 9,330,045 | ||||||||
| Inventory, net | 3,364,233 | 9,955,920 | ||||||||
| Prepaid expenses | 715,302 | 1,933,984 | ||||||||
| Total current assets | 23,886,119 | 28,732,462 | ||||||||
| Property and equipment, net | 3,497,057 | 6,719,424 | ||||||||
| Intangible assets, net | 199,277 | 11,528,262 | ||||||||
| Goodwill | — | 614,184 | ||||||||
| Other assets | 1,995 | 88,948 | ||||||||
| Total assets | $ | 27,584,448 | $ | 47,683,280 | ||||||
| Liabilities and stockholders’ equity | ||||||||||
| Liabilities: | ||||||||||
| Current Liabilities: | ||||||||||
| Current portion of long-term debt obligation | $ | 625,000 | $ | 1,500,000 | ||||||
| Current portion of capital lease obligation | 70,725 | 61,552 | ||||||||
| Accounts payable | 1,447,177 | 4,074,732 | ||||||||
| Accrued liabilities | 5,468,849 | 6,179,975 | ||||||||
| Deferred revenue | 861,081 | 706,892 | ||||||||
| Total current liabilities | 8,472,832 | 12,523,151 | ||||||||
| Long-term deferred rent | 1,570,377 | 1,507,814 | ||||||||
| Long-term debt | — | 4,375,000 | ||||||||
| Long-term lease obligation | 39,582 | 45,922 | ||||||||
| Total liabilities | 10,082,791 | 18,451,887 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders’ equity: | ||||||||||
| Preferred stock, par value $ 0.001, 1,321,514 shares authorized, issued and outstanding at December 31, 2014 and June 30, 2015 | 1,322 | 1,322 | ||||||||
| Common stock, par value $ 0.001, 100,000,000 shares authorized, 15,110,924 and 27,558,569 shares issued, 15,088,199 and 27,505,917 shares outstanding at December 31, 2014 and June 30, 2015 | 15,541 | 28,052 | ||||||||
| Less treasury stock at cost, 22,725 and 52,650 shares at December 31, 2014 and June 30, 2015 | (32,221 | ) | (65,334 | ) | ||||||
| Additional paid-in capital | 64,147,666 | 80,734,306 | ||||||||
| Accumulated deficit | (46,630,651 | ) | (51,466,953 | ) | ||||||
| Total stockholders’ equity | 17,501,657 | 29,231,393 | ||||||||
| Total liabilities and stockholders’ equity | $ | 27,584,448 | $ | 47,683,280 | ||||||
|
Luna Innovations Incorporated Consolidated Statements of Cash Flows |
||||||||||
| Six Months Ended June 30, 2015 | ||||||||||
| 2014 | 2015 | |||||||||
| (unaudited) | ||||||||||
| Cash flows used in operating activities | ||||||||||
| Net income/(loss) | $ | 7,624,385 | $ | (4,795,760 | ) | |||||
| Adjustments to reconcile net income/(loss) to net cash used in operating activities | ||||||||||
| Depreciation and amortization | 336,564 | 824,251 | ||||||||
| Share-based compensation | 488,593 | 571,439 | ||||||||
| Bad debt expense | — | 10,375 | ||||||||
| Gain on sale of discontinued operations, net of income taxes | (9,370,799 | ) | — | |||||||
| Tax benefit from utilization of loss from current year operations | (1,163,301 | ) | — | |||||||
| Change in assets and liabilities | ||||||||||
| Accounts receivable | (73,857 | ) | (335,811 | ) | ||||||
| Inventory | (6,796 | ) | (1,345,687 | ) | ||||||
| Other current assets | 72,141 | (358,794 | ) | |||||||
| Other assets | 37,584 | — | ||||||||
| Accounts payable and accrued expenses | (761,149 | ) | (1,271,686 | ) | ||||||
| Deferred revenue | (299,712 | ) | (154,189 | ) | ||||||
| Net cash used in operating activities | (3,116,347 | ) | (6,855,862 | ) | ||||||
| Cash flows provided by investing activities | ||||||||||
| Acquisition of property and equipment | (135,136 | ) | (50,175 | ) | ||||||
| Intangible property costs | (138,118 | ) | (123,578 | ) | ||||||
| Proceeds from sale of discontinued operations, net of fees | 10,927,268 | — | ||||||||
| Cash from merger with Advanced Photonix, Inc. | — | 374,517 | ||||||||
| Net cash provided by investing activities | 10,654,014 | 200,764 | ||||||||
| Cash flows (used in)/provided by financing activities | ||||||||||
| Payments on capital lease obligations | (32,810 | ) | (36,406 | ) | ||||||
| Payments of debt obligations | (750,000 | ) | (5,962,355 | ) | ||||||
| Proceeds from long-term debt obligation | — | 6,000,000 | ||||||||
| Purchase of treasury stock | (32,221 | ) | (33,113 | ) | ||||||
| Proceeds from the exercise of options and warrants | 173,796 | 82,516 | ||||||||
| Net cash (used in)/provided by financing activities | (641,235 | ) | 50,642 | |||||||
| Net increase in cash or cash equivalents | 6,896,432 | (6,604,456 | ) | |||||||
| Cash and cash equivalents-beginning of period | 7,778,541 | 14,116,969 | ||||||||
| Cash and cash equivalents-end of period | $ | 14,674,973 | $ | 7,512,513 | ||||||
|
Luna Innovations Incorporated Reconciliation of Net (Loss)/Income to EBITDA and Adjusted EBITDA |
||||||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||||||
| 2014 | 2015 | 2014 | 2015 | |||||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||||
| Net (loss)/income | $ | (915,839 | ) | $ | (2,168,605 | ) | $ | 7,624,385 | $ | (4,795,760 | ) | |||||||||
| Less (loss)/income from discontinued operations, net of income taxes | (330,716 | ) | — | 9,342,723 | — | |||||||||||||||
| Net loss from continuing operations | (585,123 | ) | (2,168,605 | ) | (1,718,338 | ) | (4,795,760 | ) | ||||||||||||
| Interest expense | 27,302 | 49,966 | 59,667 | 59,103 | ||||||||||||||||
| Tax (benefit)/expense | (375,983 | ) | — | (1,145,173 | ) | 2,808 | ||||||||||||||
| Depreciation and amortization | 134,259 | 659,170 | 336,564 | 824,251 | ||||||||||||||||
| EBITDA | (799,545 | ) | (1,459,469 | ) | (2,467,280 | ) | (3,909,598 | ) | ||||||||||||
| Share-based compensation | 257,654 | 300,362 | 488,593 | 571,439 | ||||||||||||||||
| Non-recurring charges | — | 1,740,286 | — | 3,541,502 | ||||||||||||||||
| Adjusted EBITDA | $ | (541,891 | ) | $ | 581,179 | $ | (1,978,687 | ) | $ | 203,343 | ||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20150811006310/en/
Source:
Luna Innovations Incorporated
Investor Contact:
Dale
Messick, CFO
1.540.769.8400
[email protected]