ORBCOMM Inc.

CIK:0001361983|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenues:
Revenues	$ 65,353	$ 56,030	$ 127,288	$ 122,003
Total revenues	65,928	56,732	129,623	122,911
Operating expenses:
Selling, general and administrative	17,706	17,474	34,971	37,204
Product development	3,218	2,784	6,609	6,604
Depreciation and amortization	11,728	12,409	23,960	25,773
Impairment loss - satellite network			6,656
Acquisition-related and integration costs	2,653	111	3,241	202
Loss from operations	(4,685)	(1,816)	(13,418)	(3,004)
Other income (expense):
Interest income	167	265	404	681
Other (expense) income	(121)	(234)	875	(500)
Interest expense	(2,192)	(5,410)	(4,420)	(10,656)
Total other expense	(2,146)	(5,379)	(3,141)	(10,475)
Loss before income taxes	(6,831)	(7,195)	(16,559)	(13,479)
Income tax expense (benefit)	778	(554)	1,441	(1)
Net loss	(7,609)	(6,641)	(18,000)	(13,478)
Less: Net income attributable to noncontrolling interests	32	29	203	167
Net loss attributable to ORBCOMM Inc.	(7,641)	(6,670)	(18,203)	(13,645)
Net loss attributable to ORBCOMM Inc. common stockholders	$ (7,658)	$ (6,670)	$ (18,232)	$ (13,645)
Per share information-basic:
Net loss attributable to ORBCOMM Inc. common stockholders	$ (0.10)	$ (0.09)	$ (0.23)	$ (0.17)
Per share information-diluted:
Net loss attributable to ORBCOMM Inc. common stockholders	$ (0.10)	$ (0.09)	$ (0.23)	$ (0.17)
Weighted average common shares outstanding:
Basic	79,547	78,071	79,311	78,192
Diluted	79,547	78,071	79,311	78,192
Service [Member]
Revenues:
Revenues	$ 37,542	$ 38,429	$ 75,292	$ 78,953
Cost of revenues, exclusive of depreciation and amortization shown below:
Cost of goods and services sold	12,783	12,559	25,469	25,640
Product [Member]
Revenues:
Revenues	27,811	17,601	51,996	43,050
Total revenues	28,386	18,303	54,331	43,958
Cost of revenues, exclusive of depreciation and amortization shown below:
Cost of goods and services sold	$ 22,525	$ 13,211	$ 42,135	$ 30,492

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net loss	$ (18,000)	$ (13,478)
Adjustments to reconcile net loss to net cash provided by operating activities:
Change in allowance for doubtful accounts	(45)	3,033
Amortization and write-off of deferred financing fees	316	388
Depreciation and amortization	23,960	25,773
Impairment loss - satellite network	6,656
Stock-based compensation	3,248	3,150
Foreign exchange (gain) loss	(1,017)	338
Deferred income taxes	(637)	(464)
Other	1,266	1,109
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	2,453	9,345
Inventories	3,706	1,592
Prepaid expenses and other assets	(2,940)	1,840
Accounts payable and accrued liabilities	(1,715)	(9,416)
Deferred revenue	715	(1,313)
Other liabilities	(1,331)	(1,113)
Net cash provided by operating activities	16,635	20,784
Cash flows from investing activities:
Capital expenditures	(10,242)	(10,517)
Capital expenditures associated with the subscription model	(2,376)	(217)
Net cash used in investing activities	(12,618)	(10,734)
Cash flows from financing activities:
Purchases of common stock under share repurchase program		(2,527)
Principal payments of long-term debt	(5,000)
Payments under revolving credit facility	(10,000)	(15,000)
Proceeds from revolving credit facility		15,000
Payments under the Paycheck Protection Program		(7,588)
Proceeds from the Paycheck Protection Program		7,588
Proceeds from issuance of common stock under employee stock purchase plan	533	430
Net cash used in financing activities	(14,467)	(2,097)
Effect of exchange rate changes on cash and cash equivalents	(288)	144
Net (decrease) increase in cash and cash equivalents	(10,738)	8,097
Beginning of period	40,384	54,258
End of period	29,646	62,355
Cash paid for:
Interest	4,093	10,000
Income taxes	1,728	2,745
Noncash investing and financing activities:
Capital expenditures incurred not yet paid	1,326	1,446
Stock-based compensation related to capital expenditures	237	$ 247
Series A convertible preferred stock dividend paid in kind	29
Common stock issued as form of payment for MPUs	$ 352

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 29,646	$ 40,384
Accounts receivable, net of allowance for doubtful accounts of $7,041 and $8,209, respectively	48,627	51,199
Inventories	26,283	29,987
Prepaid expenses and other current assets	15,303	14,592
Total current assets	119,859	136,162
Satellite network and other equipment, net	116,254	127,537
Goodwill	166,129	166,129
Intangible assets, net	54,336	60,559
Other assets	21,722	20,200
Deferred income taxes	256	258
Total assets	478,556	510,845
Current liabilities:
Accounts payable	15,588	14,323
Accrued liabilities	29,012	31,907
Current portion of notes payable	12,500	10,000
Current portion of deferred revenue	5,470	5,238
Total current liabilities	62,570	61,468
Note payable - related party	1,352	1,400
Notes payable, net of unamortized deferred issuance costs	189,713	206,897
Deferred revenue, net of current portion	4,636	4,158
Deferred tax liabilities	12,731	13,413
Other liabilities	13,729	14,094
Total liabilities	284,731	301,430
Commitments and contingencies
ORBCOMM Inc. stockholders' equity
Common stock, par value $0.001; 250,000,000 shares authorized; 79,650,953 and 78,183,806 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	80	78
Additional paid-in capital	455,325	451,327
Accumulated other comprehensive (loss) income	(538)	1,021
Accumulated deficit	(263,114)	(244,882)
Total ORBCOMM Inc. stockholders' equity	192,188	207,950
Noncontrolling interests	1,637	1,465
Total equity	193,825	209,415
Total liabilities and equity	478,556	510,845
Series A Convertible Preferred Stock [Member]
ORBCOMM Inc. stockholders' equity
Series A Convertible Preferred Stock, par value $0.001; 1,000,000 shares authorized; 43,530 and 40,624 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	$ 435	$ 406