Revenues decreased 5% from prior year quarter and 9% for the year; Net loss flat year over year
For the fourth quarter of 2012, Luna realized a net loss attributable to common stockholders of
For the year, total revenues decreased 9% to
Adjusted EBITDA, a non-GAAP measure, which is earnings before interest, taxes, and non-cash expenses of share-based compensation, depreciation, amortization and warrant expense, decreased to
On
“The sale of our SCC group allowed us to increase liquidity while continuing to focus on the growth potential of our core fiber-optic technologies,” said
Fourth Quarter Financial and Business Summary
-- Total revenues decreased by 5%, to
-- Technology development revenues increased by 4%, to
-- Products and licensing revenues decreased by 19%, to
-- Gross profit decreased to
-- Selling, general and administrative expenses increased by 7% to
-- Total operating expenses remained relatively unchanged at
-- Adjusted EBITDA decreased to
-- Net loss attributable to common stockholders declined to
-- Cash and cash equivalents totaled
-- Introduced the OBR 5T-50 in November of 2012 to address the production line needs of the telecommunications industry.
Year Ended
-- Total revenue decreased
-- Products and licensing revenue decreased by 15%, to
-- Technology development revenues decreased by 6%, to
-- Gross profit decreased by 8%, to
-- Selling, general and administrative expenses decreased by 8% to
-- Total operating expenses decreased by 8% to
-- Adjusted EBITDA decreased to
-- Net loss attributable to common stockholders remained unchanged at
Non-GAAP Measures
In evaluating the operating performance of its business, Luna’s management excludes certain charges and credits that are required by generally accepted accounting principles (“GAAP”). These non-GAAP results provide useful information to both management and investors by excluding 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. These non-GAAP measures should be considered in addition to results and guidance prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measures included in this press release have 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 our expectations regarding the growth potential of fiber-optic technology and the company’s technical capabilities. 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 | ||||||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||||||
| Three months ended December 31, |
Year ended December 31, |
|||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| Revenues | ||||||||||||||||||||
| Technology development | $ | 5,229,644 | $ | 5,011,387 | $ | 21,098,286 | $ | 22,417,902 | ||||||||||||
| Products and licensing | 2,535,087 | 3,137,113 | 11,250,717 | 13,195,822 | ||||||||||||||||
| Total revenues | 7,764,731 | 8,148,500 | 32,349,003 | 35,613,724 | ||||||||||||||||
| Cost of revenues | ||||||||||||||||||||
| Technology development | 3,680,434 | 3,882,508 | 14,928,887 | 15,793,279 | ||||||||||||||||
| Products and licensing | 1,420,063 | 1,530,436 | 5,242,043 | 6,589,943 | ||||||||||||||||
| Total cost of revenues | 5,100,497 | 5,412,944 | 20,170,930 | 22,383,222 | ||||||||||||||||
| Gross profit | 2,664,234 | 2,735,556 | 12,178,073 | 13,230,502 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Selling, general and administrative | 2,620,524 | 2,448,321 | 10,804,156 | 11,788,866 | ||||||||||||||||
| Research, development and engineering | 589,540 | 724,455 | 2,558,417 | 2,674,730 | ||||||||||||||||
| Total operating expenses | 3,210,064 | 3,172,776 | 13,362,573 | 14,463,596 | ||||||||||||||||
| Operating loss | (545,830 | ) | (437,220 | ) | (1,184,500 | ) | (1,233,094 | ) | ||||||||||||
| Other income (expense) | ||||||||||||||||||||
| Interest | (64,056 | ) | (85,890 | ) | (286,529 | ) | (376,524 | ) | ||||||||||||
| Other | 22,978 | 169,772 | 108,061 | 227,565 | ||||||||||||||||
| Loss before income taxes | (586,908 | ) | (353,338 | ) | (1,362,968 | ) | (376,524 | ) | ||||||||||||
| Income tax expense | — | — | 21,417 | 10,307 | ||||||||||||||||
| Net loss | (586,908 | ) | (353,338 | ) | (1,384,385 | ) | (1,392,360 | ) | ||||||||||||
| Preferred stock dividend | 24,780 | 32,510 | 119,754 | 127,462 | ||||||||||||||||
| Net loss attributable to common stockholders | $ | (611,688 | ) | $ | (385,848 | ) | $ | (1,504,139 | ) | $ | (1,519,822 | ) | ||||||||
| Net loss per share of common stock | ||||||||||||||||||||
| Basic and diluted | $ | (0.04 | ) | $ | (0.03 | ) | $ | (0.11 | ) | $ | (0.11 | ) | ||||||||
| Weighted average shares | ||||||||||||||||||||
| Basic and diluted | 14,008,772 | 13,794,361 | 13,930,267 | 13,647,555 | ||||||||||||||||
| Luna Innovations Incorporated | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| December 31, | ||||||||||
| 2012 | 2011 | |||||||||
| Assets | ||||||||||
| Current Assets | ||||||||||
| Cash and cash equivalents | $ | 6,340,461 | $ | 8,939,127 | ||||||
| Accounts receivable, net | 7,059,635 | 5,958,086 | ||||||||
| Inventory, net | 3,336,916 | 3,330,773 | ||||||||
| Prepaid expenses | 667,773 | 1,071,438 | ||||||||
| Other current assets | 35,629 | 35,717 | ||||||||
| Total current assets | 17,440,414 | 19,355,141 | ||||||||
| Property and equipment, net | 2,426,638 | 2,816,674 | ||||||||
| Intangible assets, net | 437,839 | 539,563 | ||||||||
| Other assets | 152,877 | 228,043 | ||||||||
| Total assets | $ | 20,457,768 | $ | 22,919,421 | ||||||
| Liabilities and stockholders’ equity | ||||||||||
| Current liabilities | ||||||||||
| Current portion of long term debt obligation | $ | 1,500,000 | $ | 1,625,000 | ||||||
| Current portion of capital lease obligation | 54,091 | 50,949 | ||||||||
| Accounts payable | 1,797,571 | 1,656,602 | ||||||||
| Accrued liabilities | 2,747,175 | 3,612,193 | ||||||||
| Deferred credits | 832,822 | 1,462,603 | ||||||||
| Total current liabilities | 6,931,659 | 8,407,347 | ||||||||
| Long term debt obligations | 2,125,000 | 3,625,000 | ||||||||
| Long term capital lease obligations | 128,917 | 183,008 | ||||||||
| Total liabilities | 9,185,576 | 12,215,355 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders’ equity | ||||||||||
| Preferred stock | 1,322 | 1,322 | ||||||||
| Common stock | 14,245 | 13,969 | ||||||||
| Additional paid-in capital | 61,361,505 | 59,289,516 | ||||||||
| Accumulated deficit | (50,104,880 | ) | (48,600,741 | ) | ||||||
| Total stockholders’ equity | 11,272,192 | 10,704,066 | ||||||||
| Total liabilities and stockholders’ equity | $ | 20,457,768 | $ | 22,919,421 | ||||||
| Luna Innovations Incorporated | ||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||
| Year ended December 31, | ||||||||||
| 2012 | 2011 | |||||||||
| Cash flows from operating activities | ||||||||||
| Net loss | $ | (1,384,385 | ) | $ | (1,392,360 | ) | ||||
| Adjustments to reconcile net loss to cash (used in)/ provided by operating activities | ||||||||||
| Depreciation and amortization | 1,092,027 | 1,462,511 | ||||||||
| Stock-based compensation | 1,862,533 | 2,163,290 | ||||||||
| Changes in operating assets and liabilities | ||||||||||
| Accounts receivable | (1,101,549 | ) | 1,711,539 | |||||||
| Inventory | (10,482 | ) | (224,173 | ) | ||||||
| Other assets | 478,919 | (321,430 | ) | |||||||
| Accounts payable and accrued expenses | (724,050 | ) | (288,989 | ) | ||||||
| Deferred credits | (629,781 | ) | (119,999 | ) | ||||||
| Net cash used in operating activities | (416,768 | ) | 2,990,389 | |||||||
| Cash from investing activities | ||||||||||
| Acquisition of property and equipment | (371,390 | ) | (327,704 | ) | ||||||
| Intangible property costs | (224,537 | ) | (347,813 | ) | ||||||
| Net cash used in investing activities | (595,927 | ) | (675,517 | ) | ||||||
| Cash flows from financing activities | ||||||||||
| Proceeds from debt obligations |
-- |
6,000,000 | ||||||||
| Payments on debt obligations | (1,625,000 | ) | (6,867,393 | ) | ||||||
| Payment on capital lease obligations | (50,949 | ) | (42,383 | ) | ||||||
| Proceeds from exercise of options and warrants | 89,978 | 317,451 | ||||||||
| Net cash (used in)/provided by financing activities | (1,585,971 | ) | (592,325 | ) | ||||||
| Net change in cash | (2,598,666 | ) | 1,722,547 | |||||||
| Cash and cash equivalents—beginning of period | 8,939,127 | 7,216,580 | ||||||||
| Cash and cash equivalents—end of period | $ | 6,340,461 | $ | 8,939,127 | ||||||
| Luna Innovations Incorporated | ||||||||||||||||
| Reconciliation of Net Loss to EBITDA and Adjusted EBITDA | ||||||||||||||||
| Three months ended December 31, |
Year ended December 31, |
|||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (unaudited) | ||||||||||||||||
| Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA: | ||||||||||||||||
| Net loss | $ | (586,908 | ) | $ | (353,338 | ) | $ | (1,384,385 | ) | $ | (1,392,360 | ) | ||||
| Interest | 64,057 | 85,891 | 286,529 | 376,524 | ||||||||||||
| Taxes | — | — | 21,417 | 10,307 | ||||||||||||
| Depreciation and amortization | 277,529 | 419,811 | 1,092,027 | 1,462,511 | ||||||||||||
| EBITDA | (245,322 | ) | 152,364 | 15,588 | 456,982 | |||||||||||
| Share based compensation expense | 450,861 | 426,018 | 1,862,533 | 2,163,290 | ||||||||||||
| Warrant expense | (35,696 | ) | 18,586 | 17,190 | 60,338 | |||||||||||
| Adjusted EBITDA | $ | 169,843 | $ | 596,968 | $ | 1,895,311 | $ | 2,680,610 | ||||||||
Source:
Luna Innovations Incorporated
Dale Messick, CFO
1-540-769-8400
[email protected]