MELVILLE, N.Y. –
June 6, 2018– Comtech Telecommunications Corp. (NASDAQ: CMTL) today
reported its operating results for the third fiscal quarter ended
April 30, 2018 and updated its fiscal 2018 guidance.
Fiscal 2018 Third Quarter Highlights
- Net sales were $147.9 million.
-
Bookings were $164.3 million, with a book-to-bill ratio (a measure
defined as bookings divided by net sales) of 1.11. -
Backlog increased from the level reported as of the second quarter of
fiscal 2018 and is a near record $583.7 million. This amount does not
include the portions of multi-year contracts that have not been
funded. As such, the total value of multi-year contracts that Comtech
has received is substantially higher. -
Comtech received a number of strategic contracts and orders,
including: (i) a $59.0 million contract to provide the U.S. Navy with
SLM-5650B satellite modems, upgrade kits and related services; (ii)
$16.9 million of orders to provide ongoing sustainment services for
the U.S. Army’s “SNAP” mobile satellite communications program; (iii)
$14.2 million of orders to supply the U.S. Army with advanced VSAT
equipment; (iv) a $10.1 million multi-year contract to provide one of
the largest wireless carriers in the U.S. with a hosted, advanced
location services platform; (v) $8.5 million in contracts to supply
Modular Transportable Transmission System troposcatter terminals to
two international customers; and (vi) a $3.7 million contract
modification from the Consortium Management Group to support the U.S.
Army Project Manager Mission Command and the Blue Force Tracking-2
(“BFT-2”) program to port additional waveforms onto the current BFT-2
transceivers.
-
GAAP operating income was $14.0 million and GAAP net income was $8.2
million, or $0.34 per diluted share. -
Adjusted EBITDA was $23.5 million. Adjusted EBITDA is a non-GAAP
financial measure which is reconciled to the most directly comparable
GAAP financial measure and is more fully defined in the below table. - Cash flows from operating activities were $21.4 million.
- Cash dividends of $2.4 million were paid to common stockholders.
- $44.2 million of cash and cash equivalents as of April 30, 2018.
In commenting on Comtech’s performance during the third quarter of
fiscal 2018 and Comtech’s updated fiscal 2018 guidance, Fred Kornberg,
President and Chief Executive Officer, stated, “Our results for the
third quarter exceeded our expectations and our pipeline of
opportunities remains strong. Based on our strong year-to-date
performance and positive business momentum, we are increasing our fiscal
2018 operating income and Adjusted EBITDA targets, and expect fiscal
2018 to be a successful year. As we begin to look to fiscal 2019, we
believe that we are firmly positioned for growth.”
Updated 2018 Fiscal Year Financial Targets
-
Comtech is maintaining its revenue target of approximately $570.0
million to $585.0 million. Despite the absence of $6.7 million of
BFT-1 intellectual property license fees that Comtech earned in fiscal
2017 supporting the U.S. Army’s Blue Force Tracking Program, the
mid-point of Comtech’s fiscal 2018 revenue target range represents a
year-over-year growth rate of close to 5.0%. -
Comtech is increasing its Adjusted EBITDA target to a new range of
$73.5 million to $76.5 million, as compared to a prior range of $72.0
million to $76.0 million. Despite the absence of the $6.7 million of
BFT-1 intellectual property license fees, the mid-point of the new
fiscal 2018 Adjusted EBITDA target range represents an annual growth
rate of close to 6.0%. Adjusted EBITDA, as a percentage of net sales,
is expected to be close to 13.0%. -
From a timing perspective, Comtech’s fourth quarter of fiscal 2018 is
still expected to be the peak quarter for both net sales and Adjusted
EBITDA, but its third quarter of fiscal 2018 is now expected to be the
peak quarter of operating income. Comtech’s operating income for the
third quarter reflects the benefit of shipments of satellite earth
station equipment to the U.S. Navy that were previously expected to
occur in its fourth quarter of fiscal 2018. Comtech’s fourth quarter
net sales assumptions now reflect this and other changes in product
mix (including lower expected sales of higher margin cyber training
software solutions). -
Comtech’s fourth quarter net sales and Adjusted EBITDA are expected to
be higher than the related amounts achieved in its third quarter of
fiscal 2018 by approximately 15.0%. Comtech’s GAAP operating income
and Adjusted EBITDA, as a percentage of its consolidated fourth
quarter fiscal 2018 net sales, are expected to approximate 6.0% and
15.0%, respectively. -
Comtech’s new estimated effective tax rate of 27.0% for fiscal 2018
reflects seven months of benefit related to Tax Reform. Although
Comtech continues to perform an analysis of Tax Reform and its impact,
Comtech’s assessment is that its effective tax rate in fiscal 2019,
before any discrete items, will now range from 23.5% to 25.0%. During
the nine months ended April 30, 2018, Comtech recorded an estimated
net discrete tax benefit of $14.1 million, primarily due to the
remeasurement of deferred tax liabilities associated with
non-deductible amortization related to intangible assets that was
required as a result of Tax Reform. -
Comtech is updating its GAAP diluted EPS target to a new range of
$1.17 to $1.23, as compared to a prior range of $1.08 to $1.23. The
new target range includes the benefit of $0.59 per diluted share
primarily due to the remeasurement of deferred tax assets and
liabilities as a result of Tax Reform. GAAP diluted EPS for Comtech’s
fourth quarter of fiscal 2018 is expected to approximate a range of
$0.24 to $0.30 per diluted share. -
If order flow remains strong and Comtech is able to achieve all of its
fiscal 2018 business goals, it is possible that Comtech’s fiscal 2018
consolidated net sales, GAAP diluted EPS and Adjusted EBITDA could be
higher than its targeted amounts.
Additional information about Comtech’s third quarter financial results
and Business Outlook for Fiscal 2018 is more thoroughly described in
Comtech’s Form 10-Q filed with the SEC today and Comtech’s third quarter
investor presentation which is located on its website at www.comtechtel.com.
Conferencia telefónica
Comtech has scheduled an investor conference call for 8:30 AM (ET) on
Thursday, June 7, 2018. Investors and the public are invited to access a
live webcast of the conference call from the Investor Relations section
of the Comtech website at www.comtechtel.com.
Alternatively, investors can access the conference call by dialing (877)
876-9176 (domestic), or (785) 424-1667 (international) and using the
conference I.D. “Comtech.” A replay of the conference call will be
available for seven days by dialing (800) 839-2434 or (402) 220-7211. In
addition, an updated investor presentation, including earnings guidance,
is available on Comtech’s website.
Acerca de Comtech
Comtech Telecommunications Corp. diseña, desarrolla, produce y comercializa
productos, sistemas y servicios innovadores para soluciones
avanzadas. Comtech vende productos a una variada base de clientes en los
mercados mundiales de comunicaciones comerciales y gubernamentales.
Advertencia sobre las declaraciones prospectivas
Certain information in this press release contains forward-looking
statements, including but not limited to, information relating to the
Company’s future performance and financial condition, plans and
objectives of the Company’s management and the Company’s assumptions
regarding such future performance, financial condition, and plans and
objectives that involve certain significant known and unknown risks and
uncertainties and other factors not under the Company’s control which
may cause its actual results, future performance and financial
condition, and achievement of plans and objectives of the Company’s
management to be materially different from the results, performance or
other expectations implied by these forward-looking statements. These
factors include, among other things: the risk that the Company will be
unsuccessful in implementing a tactical shift in its Government
Solutions segment away from bidding on large commodity service contracts
and toward pursuing contracts for its niche products with higher
margins; the nature and timing of receipt of, and the Company’s
performance on, new or existing orders that can cause significant
fluctuations in net sales and operating results; the timing and funding
of government contracts; adjustments to gross profits on long-term
contracts; risks associated with international sales; rapid
technological change; evolving industry standards; new product
announcements and enhancements, including the risks associated with the
Company’s recent launch of HeightsTM Dynamic Network Access
Technology (“HEIGHTS” or “HDNA”); changing customer demands; changes in
prevailing economic and political conditions; changes in the price of
oil in global markets; changes in foreign currency exchange rates; risks
associated with the Company’s and TeleCommunication Systems, Inc.’s
(“TCS”) legacy legal proceedings, customer claims for indemnification
and other similar matters; risks associated with the Company’s
obligations under its Secured Credit Facility, as amended; risks
associated with the Company’s large contracts; the impact of H.R.1, also
known as the Tax Cuts and Jobs Act (“Tax Reform”), which was enacted in
December 2017 in the U.S.; and other factors described in this and the
Company’s other filings with the Securities and Exchange Commission.
|
COMTECH TELECOMMUNICATIONS CORP. Y FILIALES Estados de Explotación Condensados Consolidados (Sin auditar) |
||||||||||||||
| Tres meses finalizados el 30 de abril, | Nueve meses finalizados el 30 de abril, | |||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||
| Ventas netas | $ | 147,854,000 | 127,792,000 | 403,154,000 | 402,606,000 | |||||||||
| Coste de las ventas | 85,418,000 | 75,331,000 | 242,201,000 | 244,833,000 | ||||||||||
| Beneficio bruto | 62,436,000 | 52,461,000 | 160,953,000 | 157,773,000 | ||||||||||
| Gastos: | ||||||||||||||
| Gastos de venta, generales y administrativos | 30,410,000 | 25,923,000 | 86,100,000 | 89,596,000 | ||||||||||
| Investigación y desarrollo | 12,778,000 | 12,961,000 | 39,963,000 | 40,371,000 | ||||||||||
| Amortización de intangibles | 5,269,000 | 5,468,000 | 15,806,000 | 17,555,000 | ||||||||||
| Resolución de litigios de propiedad intelectual | - | (2,041,000 | ) | - | (12,020,000 | ) | ||||||||
| 48,457,000 | 42,311,000 | 141,869,000 | 135,502,000 | |||||||||||
| Ingresos de explotación | 13,979,000 | 10,150,000 | 19,084,000 | 22,271,000 | ||||||||||
| Otros gastos (ingresos): | ||||||||||||||
| Gastos por intereses | 2,500,000 | 2,761,000 | 7,607,000 | 8,938,000 | ||||||||||
| Intereses (ingresos) y otros | 198,000 | 88,000 | 189,000 | 12,000 | ||||||||||
|
Income before provision for (benefit from) |
11,281,000 | 7,301,000 | 11,288,000 | 13,321,000 | ||||||||||
| Provisión para (beneficio de) impuestos sobre la renta | 3,071,000 | 2,884,000 | (11,023,000 | ) | 4,808,000 | |||||||||
| Ingresos netos | $ | 8,210,000 | 4,417,000 | 22,311,000 | 8,513,000 | |||||||||
| Beneficio neto por acción: | ||||||||||||||
| Básico | $ | 0.34 | 0.19 | 0.94 | 0.36 | |||||||||
| Diluido | $ | 0.34 | 0.19 | 0.93 | 0.36 | |||||||||
|
Weighted average number of common shares |
23,834,000 | 23,449,000 | 23,819,000 | 23,420,000 | ||||||||||
|
Weighted average number of common and |
24,052,000 | 23,503,000 | 23,999,000 | 23,449,000 | ||||||||||
|
Dividends declared per issued and outstanding |
$ | 0.10 | 0.10 | 0.30 | 0.50 | |||||||||
|
COMTECH TELECOMMUNICATIONS CORP. Y FILIALES Balance resumido consolidado |
|||||||
| 30 de abril de 2018 | 31 de julio de 2017 | ||||||
| (Sin auditar) | (Auditado) | ||||||
| Activos |
|
||||||
| Activo circulante: | |||||||
| Efectivo y equivalentes de efectivo | $ | 44,173,000 | 41,844,000 | ||||
| Deudores, neto | 127,267,000 | 124,962,000 | |||||
| Existencias, neto | 76,554,000 | 60,603,000 | |||||
| Gastos anticipados y otros activos corrientes | 13,912,000 | 13,635,000 | |||||
| Total activo circulante | 261,906,000 | 241,044,000 | |||||
| Inmovilizado material, neto | 30,240,000 | 32,847,000 | |||||
| Buena voluntad | 290,633,000 | 290,633,000 | |||||
| Intangibles con vidas finitas, netos | 246,065,000 | 261,871,000 | |||||
| Costes de financiación diferidos, netos | 2,420,000 | 3,065,000 | |||||
| Otros activos, netos | 2,808,000 | 2,603,000 | |||||
| Activo total | $ | 834,072,000 | 832,063,000 | ||||
| Pasivo y fondos propios | |||||||
| Pasivo circulante: | |||||||
| Cuentas por pagar | $ | 30,125,000 | 29,402,000 | ||||
| Gastos devengados y otros pasivos corrientes | 66,258,000 | 68,610,000 | |||||
| Dividendos a pagar | 2,354,000 | 2,343,000 | |||||
| Customer advances and other | 33,485,000 | 25,771,000 | |||||
| Parte corriente de la deuda a largo plazo | 17,211,000 | 15,494,000 | |||||
| Parte corriente de arrendamiento financiero y otras obligaciones | 2,540,000 | 2,309,000 | |||||
| Intereses a pagar | 532,000 | 282,000 | |||||
| Total pasivo corriente | 152,505,000 | 144,211,000 | |||||
| Parte no corriente de la deuda a largo plazo, neta | 161,856,000 | 176,228,000 | |||||
| Parte no corriente del arrendamiento financiero y otras obligaciones | 993,000 | 1,771,000 | |||||
| Impuestos sobre la renta | 2,592,000 | 2,515,000 | |||||
| Pasivo por impuestos diferidos, neto | 6,069,000 | 17,306,000 | |||||
| Customer advances and other, non-current | 7,761,000 | 7,227,000 | |||||
| Otros pasivos | 4,512,000 | 2,655,000 | |||||
| Total pasivo | 336,288,000 | 351,913,000 | |||||
| Compromisos y contingencias | |||||||
| Fondos propios: | |||||||
|
Acciones preferentes, valor nominal 0,10 $ por acción; acciones autorizadas y |
- | - | |||||
|
Common stock, par value $.10 per share; authorized 100,000,000 |
3,868,000 | 3,862,000 | |||||
| Capital desembolsado adicional | 535,620,000 | 533,001,000 | |||||
| Beneficios no distribuidos | 400,145,000 | 385,136,000 | |||||
| 939,633,000 | 921,999,000 | ||||||
| Menos: | |||||||
|
Treasury stock, at cost (15,033,317 shares at April 30, 2018 |
(441,849,000 | ) | (441,849,000 | ) | |||
| Total fondos propios | 497,784,000 | 480,150,000 | |||||
| Total pasivo y fondos propios | $ | 834,072,000 | 832,063,000 | ||||
COMTECH TELECOMMUNICATIONS CORP.
Y FILIALES
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
(Sin auditar)
Uso de medidas financieras distintas de los PCGA
Con el fin de proporcionar a los inversores información adicional sobre sus
resultados financieros, este comunicado de prensa contiene "medidas financieras no
medidas" según las normas de la SEC. El EBITDA ajustado de la empresa es una medida no
El EBITDA ajustado de la empresa es una medida no GAAP que representa el beneficio (pérdida) antes de impuestos sobre la renta,
intereses (ingresos) y otros gastos, gastos financieros, amortización de
compensación basada en acciones, amortización de intangibles, depreciación
depreciación, resolución de litigios de propiedad intelectual, gastos
gastos de planes de adquisición o gastos de análisis de alternativas estratégicas y otros. En
definición de EBITDA Ajustado de la Sociedad puede diferir de la definición de
de EBITDA utilizada por otras empresas y, por lo tanto, puede no ser comparable con
medidas similares utilizadas por otras empresas. El EBITDA ajustado es
una medida frecuentemente solicitada por los inversores y analistas de la
inversores y analistas de la Sociedad. La Compañía cree que los inversores y analistas pueden utilizar
EBITDA Ajustado, junto con otra información contenida en sus archivos SEC
para evaluar el rendimiento de la Sociedad y la comparabilidad de sus resultados con los de otras empresas.
resultados con otras empresas. Estas medidas financieras no GAAP tienen
limitaciones como herramienta analítica, ya que excluyen el impacto financiero
de las operaciones necesarias para el desarrollo de la actividad de la empresa, como la
como la concesión de compensaciones en acciones, y no pretenden ser una
y no pretenden ser una alternativa a las medidas financieras preparadas de acuerdo con los PCGA.
Estas medidas se ajustan como se describe en la conciliación de GAAP
en la tabla que figura a continuación, pero estos ajustes no deben interpretarse
interpretarse como una inferencia de que todos estos ajustes o costes son
inusuales, infrecuentes o no recurrentes. Las medidas financieras no-GAAP deben
considerarse complementarias y no sustitutorias o superiores a las medidas
las medidas financieras determinadas de conformidad con los PCGA. Se recomienda a los inversores
Se aconseja a los inversores que revisen detenidamente los resultados
en los documentos presentados por la empresa ante la SEC. La empresa no ha
conciliado cuantitativamente su objetivo de EBITDA ajustado del ejercicio 2018 con la
medida GAAP más directamente comparable porque elementos como la compensación basada en acciones
compensación basada en acciones, ajustes a la provisión para impuestos sobre las ganancias,
amortización de intangibles y gastos por intereses, que son partidas específicas
que afectan a estas medidas, aún no se han producido, están fuera del control de la
o no pueden predecirse. Por ejemplo, la cuantificación
de los gastos de compensación basados en acciones requiere datos como el número de
de acciones concedidas y el precio de mercado que no pueden determinarse en la actualidad.
En consecuencia, las conciliaciones con las métricas prospectivas no recogidas en los PCGA no están disponibles sin un esfuerzo excesivo.
no están disponibles sin un esfuerzo irrazonable y tales
no disponibles podrían afectar significativamente a los resultados
financieros de la empresa.
| Tres meses finalizados el 30 de abril, | Nueve meses finalizados el 30 de abril, | Ejercicio fiscal | ||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | 2017 | ||||||||||||||
|
Reconciliation of GAAP Net Income to |
||||||||||||||||||
| Ingresos netos | $ | 8,210,000 | 4,417,000 | 22,311,000 | 8,513,000 | $ | 15,827,000 | |||||||||||
| Provisión para (beneficio de) impuestos sobre la renta | 3,071,000 | 2,884,000 | (11,023,000 | ) | 4,808,000 | 9,654,000 | ||||||||||||
| Intereses (ingresos) y otros gastos | 198,000 | 88,000 | 189,000 | 12,000 | (68,000 | ) | ||||||||||||
| Gastos por intereses | 2,500,000 | 2,761,000 | 7,607,000 | 8,938,000 | 11,629,000 | |||||||||||||
| Amortización de la remuneración basada en acciones | 1,104,000 | 991,000 | 2,931,000 | 2,980,000 | 8,506,000 | |||||||||||||
| Amortización de intangibles | 5,269,000 | 5,468,000 | 15,806,000 | 17,555,000 | 22,823,000 | |||||||||||||
| Amortización | 3,170,000 | 3,532,000 | 9,833,000 | 10,849,000 | 14,354,000 | |||||||||||||
| Resolución de litigios de propiedad intelectual | - | (2,041,000 | ) | - | (12,020,000 | ) | (12,020,000 | ) | ||||||||||
| EBITDA ajustado | $ | 23,522,000 | 18,100,000 | 47,654,000 | 41,635,000 | $ | 70,705,000 | |||||||||||
CEMTL
View source version on businesswire.com: https://www.businesswire.com/news/home/20180606006358/en/
Media:
Michael D. Porcelain, Senior Vice President and Chief
Financial Officer
631-962-7103
[email protected]
