Fourth quarter products and licensing revenue increased 60% compared to prior year quarter
-
Total revenue for the quarter was
$6.2 million , up 32% compared to prior year quarter -
Product and licensing revenue for the quarter was
$2.9 million , up 60% compared to prior year quarter -
Gross profit for the quarter was
$2.2 million , up 52% compared to prior year quarter -
Operating loss for the quarter was
$0.9 million , an improvement of$1.9 million compared to prior year quarter -
Total revenue for the year was
$21.3 million , up 16% over 2013 -
Product and license revenue for the year was
$9.1 million , up 31% over 2013
“The fourth quarter was a strong finish to the year for us,” said
Fourth Quarter Financial Highlights
Total revenue for the fourth quarter of 2014 increased 32%, to
Gross profit improved to
Selling, general and administrative expenses decreased 24% to
Growth in revenues and margins along with reduced operating expenses
resulted in a
Income from discontinued operations was
Net loss attributable to common stockholders for the fourth quarter of
2014 improved
Full Year 2014 Financial Highlights
Total revenue increased 16% to
Gross profit for 2014 increased to
Selling, general and administrative expenses decreased 11% to
Research, development and engineering expenses decreased 18% to
Improved revenues, margins and operating expenses all contributed to a
Income from discontinued operations increased to
Net income attributable to common stockholders improved to
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. 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 our expectations
regarding the company’s operating results and future growth of the
company’s fiber optic sensing products, as well as the opportunity for
further growth and improved profitability from the potential merger with
No Offer or Solicitation
This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction in connection with the merger or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Important Additional Information Has Been and
Will Be Filed with the
Luna has filed with the
INVESTORS AND STOCKHOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT LUNA, API, THE MERGER AND RELATED MATTERS.
Investors and stockholders will be able to obtain free copies of the
definitive joint proxy statement/prospectus and other documents filed
with the
Participants In the Solicitation
Luna and API and their respective directors and executive officers may
be deemed to be participants in the solicitation of proxies from the
respective stockholders of Luna and API in respect of the transaction
described in the joint proxy statement/prospectus. Information regarding
the persons who may, under the rules of the
| Luna Innovations Incorporated | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| Three months ended | Years ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2013 | 2014 | 2013 | 2014 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Revenues: | ||||||||||||||||
| Technology development revenues | $ | 2,857,125 | $ | 3,243,980 | $ | 11,421,868 | $ | 12,205,889 | ||||||||
| Products and licensing revenues | 1,841,266 | 2,945,302 | 6,911,707 | 9,054,101 | ||||||||||||
| Total revenues | 4,698,391 | 6,189,282 | 18,333,575 | 21,259,990 | ||||||||||||
| Cost of revenues: | ||||||||||||||||
| Technology development costs | 2,205,938 | 2,583,424 | 8,882,071 | 9,376,485 | ||||||||||||
| Products and licensing costs | 1,033,067 | 1,392,580 | 3,402,882 | 4,046,885 | ||||||||||||
| Total cost of revenues | 3,239,005 | 3,976,004 | 12,284,953 | 13,423,370 | ||||||||||||
| Gross profit | 1,459,386 | 2,213,278 | 6,048,622 | 7,836,620 | ||||||||||||
| Operating expense: | ||||||||||||||||
| Selling, general & administrative | 3,539,095 | 2,702,335 | 11,525,636 | 10,253,847 | ||||||||||||
| Research, development, and engineering | 672,405 | 380,684 | 2,558,332 | 2,087,874 | ||||||||||||
| Total operating expense | 4,211,500 | 3,083,019 | 14,083,968 | 12,341,721 | ||||||||||||
| Operating loss | (2,752,114 | ) | (869,741 | ) | (8,035,346 | ) | (4,505,101 | ) | ||||||||
| Other income/(expense): | ||||||||||||||||
| Other income, net | 75,756 | 21 | 347,062 | 111,452 | ||||||||||||
| Interest expense, net | (56,924 | ) | (15,287 | ) | (207,538 | ) | (96,229 | ) | ||||||||
| Total other income/(expense), net | 18,832 | (15,266 | ) | 139,524 | 15,223 | |||||||||||
| Loss from continuing operations before income taxes | (2,733,282 | ) | (885,007 | ) | (7,895,822 | ) | (4,489,878 | ) | ||||||||
| Income tax (benefit)/expense | (353,729 | ) | 282,654 | (2,387,422 | ) | (1,137,228 | ) | |||||||||
| Loss from continuing operations | (2,379,553 | ) | (1,167,661 | ) | (5,508,400 | ) | (3,352,650 | ) | ||||||||
| Operating income/(loss) from discontinued operations, net of $0.3 million, $0.0 million, $0.9 million and $0.0 million of related income taxes | 413,431 | (6,364 | ) | 1,313,611 | (34,491 | ) | ||||||||||
| (Loss)/gain on sale, net of $0.0 million,$(0.3) million, $1.5 million and $1.3 million of related income taxes | (56,631 | ) | 288,680 | 3,391,639 | 9,381,948 | |||||||||||
| Income from discontinued operations, net of income taxes | 356,800 | 282,316 | 4,705,250 | 9,347,457 | ||||||||||||
| Net (loss)/income | (2,022,753 | ) | (885,345 | ) | (803,150 | ) | 5,994,807 | |||||||||
| Preferred stock dividend | 26,166 | 28,567 | 102,327 | 112,197 | ||||||||||||
| Net (loss)/income attributable to common stockholders | $ | (2,048,919 | ) | $ | (913,912 | ) | $ | (905,477 | ) | $ | 5,882,610 | |||||
| Net loss per share from continuing operations: | ||||||||||||||||
| Basic and diluted | $ | (0.17 | ) | $ | (0.08 | ) | $ | (0.38 | ) | $ | (0.23 | ) | ||||
| Net income per share from discontinued operations: | ||||||||||||||||
| Basic and diluted | $ | 0.03 | $ | 0.02 | $ | 0.33 | $ | 0.63 | ||||||||
| Net (loss)/income per share attributable to common stockholders: | ||||||||||||||||
| Basic and diluted | $ | (0.15 | ) | $ | (0.06 | ) | $ | (0.06 | ) | $ | 0.40 | |||||
| Weighted average shares: | ||||||||||||||||
| Basic and diluted | 14,008,772 | 14,485,882 | 14,336,135 | 14,880,697 | ||||||||||||
| Luna Innovations Incorporated | ||||||||
| Consolidated Balance Sheets | ||||||||
| December 31, | December 31, | |||||||
| 2013 | 2014 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,778,541 | $ | 14,116,969 | ||||
| Accounts receivable, net | 5,408,281 | 5,689,615 | ||||||
| Inventory, net | 3,346,177 | 3,364,233 | ||||||
| Prepaid expenses | 708,974 | 523,553 | ||||||
| Other current assets | 70,208 | 191,749 | ||||||
| Total current assets | 17,312,181 | 23,886,119 | ||||||
| Property and equipment, net | 2,060,709 | 3,497,057 | ||||||
| Intangible assets, net | 288,475 | 199,277 | ||||||
| Other assets | 42,710 | 1,995 | ||||||
| Total assets | $ | 19,704,075 | $ | 27,584,448 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current Liabilities: | ||||||||
| Current portion of long term debt obligation | 1,500,000 | 625,000 | ||||||
| Current portion of capital lease obligation | 66,617 | 70,725 | ||||||
| Accounts payable | 1,401,764 | 1,447,177 | ||||||
| Accrued liabilities | 3,546,585 | 5,536,322 | ||||||
| Deferred revenue | 691,424 | 861,081 | ||||||
| Total current liabilities | 7,206,390 | 8,540,305 | ||||||
| Long-term debt obligation | 625,000 | — | ||||||
| Long-term capital lease obligation | 110,307 | 39,582 | ||||||
| Total liabilities | 7,941,697 | 8,579,887 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at December 31, 2013 and 2014, respectively | 1,322 | 1,322 | ||||||
| Common stock, par value $0.001, 100,000,000 shares authorized, 14,527,335 and 15,110,924 shares issued, 14,527,335 and 15,088,199 shares outstanding at December 31, 2013 and 2014, respectively | 14,842 | 15,541 | ||||||
| Treasury stock at cost, zero shares at December 31, 2013 and 22,725 shares at December 31, 2014 | — | (32,221 | ) | |||||
| Additional paid-in capital | 62,756,571 | 64,147,666 | ||||||
| Accumulated deficit | (51,010,357 | ) | (45,127,747 | ) | ||||
| Total stockholders’ equity | 11,762,378 | 19,004,561 | ||||||
| Total liabilities and stockholders’ equity | 19,704,075 | 27,584,448 | ||||||
| Luna Innovations Incorporated | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| Years ended December 31, | ||||||||
| 2013 | 2014 | |||||||
| (unaudited) | ||||||||
| Cash flows used in operating activities: | ||||||||
| Net (loss)/income | $ | (803,150 | ) | $ | 5,994,807 | |||
| Adjustments to reconcile net (loss)/income to net cash provided/(used in) by operating activities: | ||||||||
| Depreciation and amortization | 935,477 | 607,693 | ||||||
| Stock-based compensation | 1,181,379 | 1,019,445 | ||||||
| Gain on sale of discontinued operations, net of income taxes | (3,391,639 | ) | (9,381,948 | ) | ||||
| Inventory obsolescence expense | — | 163,998 | ||||||
| Allowance for doubtful accounts or bad debt expense | 134,811 | — | ||||||
| Tax benefit from utilization of loss from current year operations | (1,507,791 | ) | (1,148,941 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 1,533,827 | (281,334 | ) | |||||
| Inventory | (9,261 | ) | (220,419 | ) | ||||
| Other assets | (79,180 | ) | 50,696 | |||||
| Accounts payable and accrued expenses | 396,540 | 311,627 | ||||||
| Deferred credits | (178,305 | ) | 169,657 | |||||
| Net cash used in operating activities | (1,787,292 | ) | (2,714,719 | ) | ||||
| Cash flows provided by investing activities: | ||||||||
| Acquisition of property and equipment | (186,956 | ) | (255,242 | ) | ||||
| Intangible property costs | (253,451 | ) | (252,083 | ) | ||||
| Proceeds from sale of discontinued operations, net | 5,110,855 | 10,927,268 | ||||||
| Net cash provided by investing activities | 4,670,448 | 10,419,943 | ||||||
| Cash flows used in financing activities: | ||||||||
| Payments on debt obligations | (1,500,000 | ) | (1,500,000 | ) | ||||
| Payments on capital lease obligation | (57,033 | ) | (66,617 | ) | ||||
| Purchase of treasury stock | — | (32,221 | ) | |||||
| Proceeds from the exercise of options and warrants | 111,957 | 232,042 | ||||||
| Net cash used in financing activities | (1,445,076 | ) | (1,366,796 | ) | ||||
| Net change in cash and cash equivalents | 1,438,080 | 6,338,428 | ||||||
| Cash and cash equivalents—beginning of period | 6,340,461 | 7,778,541 | ||||||
| Cash and cash equivalents—end of period | $ | 7,778,541 | $ | 14,116,969 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Cash paid for interest | $ | 178,646 | $ | 87,354 | ||||
| Dividend on preferred stock, 79,292 shares of common stock issuable for each of the years ended December 31, 2013 and 2014, respectively | $ | 102,327 | $ | 112,177 | ||||
| Cash paid for income taxes | $ | 14,010 | $ | 150,000 | ||||
| Luna Innovations Incorporated | ||||||||||||||||
| Reconciliation of Net (Loss)/Income to EBITDA and Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2013 | 2014 | 2013 | 2014 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Net (loss)/income | $ | (2,022,753 | ) | $ | (885,345 | ) | $ | (803,150 | ) | $ | 5,994,807 | |||||
| Less income from discontinued operations, net of income taxes | 356,800 | 282,316 | 4,705,250 | 9,347,457 | ||||||||||||
| Net loss from continuing operations | (2,379,553 | ) | (1,167,661 | ) | (5,508,400 | ) | (3,352,650 | ) | ||||||||
| Interest expense | 56,924 | 15,287 | 207,538 | 96,229 | ||||||||||||
| Tax benefit | (353,729 | ) | 282,654 | (2,387,422 | ) | (1,137,228 | ) | |||||||||
| Depreciation and amortization | 224,102 | 127,792 | 935,477 | 607,693 | ||||||||||||
| EBITDA | (2,452,256 | ) | (741,928 | ) | (6,752,807 | ) | (3,785,956 | ) | ||||||||
| Share-based compensation | 269,825 | 450,861 | 1,181,379 | 1,019,445 | ||||||||||||
| Transaction costs | 675,686 | 125,489 | 898,316 | 242,762 | ||||||||||||
| Adjusted EBITDA | $ | (1,506,745 | ) | $ | (165,578 | ) | $ | (4,673,112 | ) | $ | (2,523,749 | ) | ||||
Source:
Luna Innovations Incorporated
Investor Contact:
Dale
Messick, CFO
1-540-769-8400
[email protected]