Comtech Telecommunications Corp. Releases Audited Financial Statements for TCS and Preliminary Bookings Information
MELVILLE, N.Y.--(BUSINESS WIRE)--
May 5, 2016--Comtech Telecommunications Corp. (the "Company" or
"Comtech") (NASDAQ: CMTL) announced today that it has filed audited
consolidated financial statements of TeleCommunication Systems, Inc.
("TCS") with the Securities and Exchange Commission for their calendar
year ended December 31, 2015. Comtech also provided preliminary bookings
information for Comtech for the three months ended April 30, 2016.
TCS Financial Results For The Twelve Months
Ended December 31, 2015
For the twelve months ended December 31, 2015, consolidated net sales
for TCS were $364.4 million and Adjusted EBITDA (a Non-GAAP financial
measure defined in the table below) was $33.7 million. On February 23,
2016, TCS changed its calendar year end to conform to Comtech's July
31st fiscal year end.
Preliminary Bookings for The Combined Company
For The Three Months Ended April 30, 2016
Preliminary bookings in the third quarter of fiscal 2016 are expected to
approximate $130.0 million to $135.0 million and include approximately
two months of bookings associated with TCS's operations. Additionally,
the Company reported that it:
Achieved strong bookings in its legacy satellite earth station
equipment product line, which excluding TCS, sequentially increased
more than 25% as compared to actual bookings it achieved in its second
quarter of fiscal 2016;
Received over $30.0 million of orders to provide advanced
communication solutions to the Department of Defense to support
various mission critical operations;
Received $20.0 million of orders, including $10.0 million from the
U.S. Army to continue licensing certain of the Company's BFT-1
intellectual property, with the remaining funding designated for BFT-1
sustainment support services;
Received a multi-year contract valued at $12.0 million from a major
telecom equipment company;
Was awarded an important multi-million dollar contract to enhance the
connected car and e-commerce customer experiences for two Fortune 100
companies; and
Completed a multi-million dollar contract to supply a mobile
navigation and mapping platform for a Fortune 100 company.
"I believe the strong bookings we experienced during the third quarter
of fiscal 2016 demonstrate that our business is at a turning point. I am
very pleased with our strong preliminary bookings and believe that
strong order flow will continue," stated Dr. Stanton Sloane, President
and Chief Executive of Comtech Telecommunications Corp.
Dr. Sloane added, "Our acquisition integration plans remain on track and
I look forward to discussing our new combined company in June."
The preliminary bookings information contained in this press release is
based on management's initial review of bookings for the third quarter
of fiscal 2016 and remains subject to the completion of the Company's
quarterly closing and review procedures. The Company's actual bookings
may differ materially from these preliminary estimates due to, among
other things, the completion of its accounting close procedures, final
adjustments and other developments that may arise between now and the
time that such unaudited consolidated financial results for the fiscal
quarter ended April 30, 2016 are finalized.
The Company expects to report final third quarter fiscal 2016 results in
June 2016, at which time the Company intends to host an earnings
conference call to discuss its Business Outlook and the TCS acquisition
in more detail. The exact date and timing of this conference call will
be provided in a future announcement.
TeleCommunication Systems, Inc.
Reconciliation of Non-GAAP Financial Measures to GAAP Financial
Measures
December 31, 2015
TCS
Reconciliation of GAAP Net Loss to Adjusted EBITDA(1):
GAAP net loss
$
(5,410,000
)
Income taxes
1,779,000
Net interest expense and other
8,356,000
Amortization of stock-based compensation
5,040,000
Depreciation and amortization (including intangibles and capitalized
software)
17,653,000
Strategic alternatives analysis expenses and other
6,246,000
Adjusted EBITDA
$
33,664,000
(1)
Represents earnings before interest, income taxes, depreciation
and amortization of intangibles (including capitalized software by
TCS), amortization of stock-based compensation and strategic
alternatives analysis expenses. Adjusted EBITDA is a non-GAAP
operating metric used by Comtech management in assessing TCS's
operating results. The Company's definition of Adjusted EBITDA may
differ from the definition of Adjusted EBITDA used by other
companies and may not be comparable to similarly titled measures
used by other companies, including similarly titled measures used
by TCS prior to its acquisition by Comtech. Adjusted EBITDA is
also a measure frequently requested by the Company's investors and
analysts. The Company believes that investors and analysts may use
Adjusted EBITDA, along with other information contained in its SEC
filings, in assessing its ability to generate cash flow and
service debt.
About Comtech
Comtech Telecommunications Corp. designs, develops, produces and markets
innovative products, systems and services for advanced communications
solutions. The Company sells products to a diverse customer base in the
global commercial and government communications markets. The Company
believes it is a leader in most of the market segments that it serves.
Forward-Looking Statements
Certain information in this press release contains forward-looking
statements, including but not limited to, amounts of expected bookings,
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 possibility that the expected synergies from the TCS acquisition
will not be fully realized, or will not be realized within the
anticipated time period; the risk that Comtech's and TCS's businesses
will not be integrated successfully; the possibility of disruption from
the TCS acquisition, making it more difficult to maintain business and
operational relationships or retain key personnel; 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; 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 legal
proceedings, customer claims for indemnification, and other similar
matters; risks associated with Comtech's obligations under its revolving
credit facility and acquisition debt; risks associated with the
Company's large contracts; and other factors described in this and the
Company's other filings with the SEC.