Raises 2019 Outlook
Highlights
- Total revenues of $18.4 million for the three months ended
September 30, 2019, up 72% compared to the three months ended
September 30, 2018
- Products and licensing revenues of $11.9 million for the
three months ended September 30, 2019, up 122% compared to the
three months ended September 30, 2018
- Net income from continuing operations of $1.2 million, or
$0.04 per fully diluted share, for the three months ended September
30, 2019, compared to $1.3 million, or $0.04 per fully diluted
share, for the prior-year period
- Adjusted EBITDA improved to $2.9 million for the three
months ended September 30, 2019, compared to $0.9 million for the
three months ended September 30, 2018
- Raising 2019 outlook
Luna Innovations Incorporated (NASDAQ: LUNA), a global leader in
advanced optical technology, today announced its financial results
for the three and nine months ended September 30, 2019.
“This was truly a quarter of noteworthy accomplishments,
including continued margin expansion and reporting our eighth
consecutive quarter of double-digit, year-over-year growth in
revenues,” said Scott Graeff, President and Chief Executive Officer
of Luna. “Given the strength of our year-to-date financial results
and the visibility we have into the end of this fiscal year, we are
again raising our 2019 outlook. We expect total revenues to be
between $69 million to $70 million, and adjusted EBITDA to be
between $8.2 million to $8.6 million.”
Graeff continued, “In addition, with Carilion’s conversion of
their preferred shares to common, and the associated termination of
preferred dividends, we significantly improved and simplified our
capital structure. We also initiated and completed a $2 million
stock buyback program. As a company, we will continue to focus on
the execution of our strategic plan and initiatives that we believe
will lead to substantial profitable growth.”
Third-Quarter Fiscal 2019 Financial
Summary
Financial results for the three months ended September 30, 2019
continue the strong momentum from the beginning of the fiscal year.
These results include a full quarter of the businesses of both
Micron Optics, Inc. ("MOI"), acquired in October 2018, and General
Photonics Corporation ("GP"), acquired in March 2019. Revenue and
expenses related to Luna's optoelectronics business, as well as the
gain recognized on the sale of that business in July 2018, are
classified as discontinued operations in Luna's results of
operations for the three months ended September 30, 2018.
Accordingly, net income for the third quarter of 2018 was
significantly higher due to the inclusion of $7.6 million of income
from discontinued operations. The third-quarter fiscal 2019 will be
the last quarter in which discontinued operations comparisons
related to Luna’s optoelectronic business and the gain related to
the sale of that business will be relevant.
Highlights of the financial results for the three months ended
September 30, 2019 are:
Three Months Ended September
30,
2019
2018
Change
Revenues:
Products and licensing
$
11,926,178
$
5,371,165
122
%
Technology development
6,494,832
5,315,861
22
%
Total revenues
18,421,010
10,687,026
72
%
Gross profit
9,285,174
4,688,611
98
%
Gross margin
50.4
%
43.9
%
Operating expense
7,801,173
4,107,114
90
%
Operating income
1,484,001
581,497
155
%
Other income and income taxes
(253,749)
711,279
Net income from continuing operations
$
1,230,252
$
1,292,776
(5)
%
Diluted weighted average shares
outstanding
32,115,847
33,055,881
Net income per share from continuing
operations (diluted)
$
0.04
$
0.04
--
%
Adjusted EBITDA
$
2,883,429
$
935,302
204
%
A reconciliation of Adjusted EBITDA to net income can be found
in the schedules included in this release.
Products and licensing revenue for the three months ended
September 30, 2019 increased compared to the prior year period, due
to the inclusion of the incremental revenues associated with the
acquired operations of MOI and GP, as well as increased revenues
associated with Luna’s communications test products and Luna’s
other legacy products. Technology development revenues increased
for the three months ended September 30, 2019, compared to the
prior-year period due to growth in various government research
programs.
The increase in operating expenses was due primarily to an
increase in expenses associated with the acquired operations of MOI
and GP. Pre-tax income from continuing operations increased to $1.6
million for the three months ended September 30, 2019, compared to
$0.7 million for the prior year fiscal quarter, driven primarily by
revenue performance and prudent expense management.
Net income from continuing operations was $1.2 million, or $0.04
per fully diluted share, for the three months ended September 30,
2019, compared to $1.3 million, or $0.04, for the prior-year
period. Net income attributable to common stockholders for the
three months ended September 30, 2019, was $1.1 million, or $0.03
per fully diluted share, compared to net income attributable to
common stockholders of $8.8 million, or $0.27 per fully diluted
share, for the three months ended September 30, 2018. The decrease
in net income attributable to common stockholders was driven by
$7.6 million, or $0.23 per share, in income from discontinued
operations recognized in the third quarter of 2018. Net income
attributable to common stockholders for the three months ended
September 30, 2019, also included $0.7 million of non-cash expenses
for share-based compensation and amortization of intangible assets
associated with the acquisitions of MOI and GP.
Adjusted EBITDA was $2.9 million for the three months ended
September 30, 2019, compared to $0.9 million for the three months
ended September 30, 2018. The growth was driven by revenue growth
from both Luna’s legacy business and the MOI and GP acquisitions,
and prudent expense management.
Nine Months Year-to-Date Fiscal 2019
Financial Summary
Highlights of the financial results for the nine months ended
September 30, 2019 are:
Nine Months Ended September
30,
2019
2018
Change
Revenues:
Products and licensing
$
31,459,323
$
13,960,003
125
%
Technology development
19,576,574
15,418,919
27
%
Total revenues
51,035,897
29,378,922
74
%
Gross profit
24,803,780
12,865,624
93
%
Gross margin
48.6
%
43.8
%
Operating expense
23,205,283
12,411,561
87
%
Operating income
1,598,497
454,063
Other income and income taxes
1,597,925
906,096
Net income from continuing operations
$
3,196,422
$
1,360,159
135
%
Diluted weighted average shares
outstanding
31,768,575
32,721,860
Net income per share from continuing
operations (diluted)
$
0.10
$
0.04
150
%
Adjusted EBITDA
$
6,235,310
$
1,507,294
314
%
A reconciliation of Adjusted EBITDA to net income can be found
in the schedules included in this release.
2019 Full-Year Outlook:
Luna also is raising its 2019 outlook:
- Total revenues in the range of $69 million to $70 million for
full fiscal 2019, up from $66 million to $69 million; and
- Adjusted EBITDA in the range of $8.2 million to $8.6 million
for full fiscal 2019, up from $7.2 million to $7.6 million.
Luna is not providing an outlook for net income, which is the
most directly comparable generally accepted accounting principles
("GAAP") measure to Adjusted EBITDA, because changes in the items
that Luna excludes from net income to calculate Adjusted EBITDA,
such as share-based compensation, tax expense, and significant
non-recurring charges, among other things, can be dependent on
future events that are less capable of being controlled or reliably
predicted by management and are not part of Luna's routine
operating activities.
The outlook above does not include any future acquisitions,
divestitures, or unanticipated events.
Non-GAAP Financial
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 GAAP. Adjusted EBITDA
provides useful information to both management and investors by
excluding the effect of certain non-cash expenses and items that
Luna believes may not be indicative of its operating performance,
because either they are unusual and Luna 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 5:00 pm (ET) today to discuss its financial
results for the three and nine months ended September 30, 2019. The
investor conference call will be available via live webcast on the
Luna website at www.lunainc.com under the tab “Investor Relations.”
To participate by telephone, the domestic dial-in number is
844.578.9643 and the international dial-in number is 270.823.1522.
The participant access code is 8784037. Investors are advised to
dial in at least five minutes prior to the call to register. The
webcast will be archived on the company’s website under “Webcasts
and Presentations” for 30 days following the conference call.
About Luna
Luna Innovations Incorporated (www.lunainc.com) is a leader in
optical technology, providing unique capabilities in
high-performance, fiber optic-based, test products for the
telecommunications industry and distributed fiber optic-based
sensing for the aerospace and automotive industries. Luna is
organized into two business segments, which work closely together
to turn ideas into products: a Technology Development segment and a
Products and Licensing segment. Luna’s business model is designed
to accelerate the process of bringing new and innovative
technologies to market.
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
Luna's expectations regarding its projected 2019 financial results
and outlook, the strength and improvement in capital structure and
the solidity of its balance sheet and cash flows, and growth
potential. 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 Luna 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 Luna's products
and services to meet expectations, failure of target market to grow
and expand, technological and strategic challenges and those risks
and uncertainties set forth in Luna’s Form 10-Q for the quarter
ended September 30, 2019, and Luna's other periodic reports and
filings with the Securities and Exchange Commission ("SEC"). Such
filings are available on the SEC’s website at www.sec.gov and on
Luna’s website at www.lunainc.com. The statements made in this
release are based on information available to Luna as of the date
of this release and Luna undertakes no obligation to update any of
the forward-looking statements after the date of this release.
Luna Innovations
Incorporated
Consolidated Statements of
Operations
Three Months Ended September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
(unaudited)
(unaudited)
Revenues:
Products and licensing
$
11,926,178
$
5,371,165
$
31,459,323
$
13,960,003
Technology development
6,494,832
5,315,861
19,576,574
15,418,919
Total revenues
18,421,010
10,687,026
51,035,897
29,378,922
Cost of revenues:
Products and licensing
4,561,801
2,079,749
12,357,961
5,381,333
Technology development
4,574,035
3,918,666
13,874,156
11,131,965
Total cost of revenues
9,135,836
5,998,415
26,232,117
16,513,298
Gross profit
9,285,174
4,688,611
24,803,780
12,865,624
Operating expense:
Selling, general and administrative
5,753,649
3,233,485
17,964,524
9,898,064
Research, development and engineering
2,047,524
873,629
5,240,759
2,513,497
Total operating expense
7,801,173
4,107,114
23,205,283
12,411,561
Operating income
1,484,001
581,497
1,598,497
454,063
Other income/(expense):
Investment income
72,728
171,896
324,139
350,976
Other income/(expense)
278
8,319
(4,459
)
(16,001
)
Interest expense
(2,032
)
(28,029
)
(14,806
)
(103,208
)
Total other income
70,974
152,186
304,874
231,767
Income from continuing operations before
income taxes
1,554,975
733,683
1,903,371
685,830
Income tax expense/(benefit)
324,723
(559,093
)
(1,293,051
)
(674,329
)
Net income from continuing operations
1,230,252
1,292,776
3,196,422
1,360,159
(Loss)/income from discontinued
operations, net of income tax of $216,813 and $235,312 for the
three and nine months ended September 30, 2018, respectively
—
(56,418
)
—
1,132,436
Gain on sale, net of income taxes of
$1,866,232 and $1,508,373 for the three and nine months ended
September 30, 2018, respectively
—
7,612,044
—
7,571,810
Net income from discontinued
operations
—
7,555,626
—
8,704,246
Net income
1,230,252
8,848,402
3,196,422
10,064,405
Preferred stock dividend
112,846
63,235
285,450
190,895
Net income attributable to common
stockholders
$
1,117,406
$
8,785,167
$
2,910,972
$
9,873,510
Net income per share from continuing
operations:
Basic
$
0.04
$
0.05
$
0.11
$
0.05
Diluted
$
0.04
$
0.04
$
0.10
$
0.04
Net income per share from discontinued
operations:
Basic
$
—
$
0.27
$
—
$
0.32
Diluted
$
—
$
0.23
$
—
$
0.27
Net income per share attributable to
common stockholders:
Basic
$
0.04
$
0.31
$
0.10
$
0.36
Diluted
$
0.03
$
0.27
$
0.09
$
0.30
Weighted average common shares and common
equivalent shares outstanding:
Basic
28,291,297
27,901,631
28,193,330
27,547,955
Diluted
32,115,847
33,055,881
31,768,575
32,721,860
Luna Innovations Incorporated
Consolidated Balance Sheets
September 30, 2019
December 31, 2018
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
21,414,272
$
42,460,267
Accounts receivable, net
16,796,252
13,037,068
Receivable from sale of HSOR business
2,500,941
2,500,000
Contract assets
3,441,771
2,422,495
Inventory
9,644,864
6,873,742
Prepaid expenses and other current
assets
1,119,622
935,185
Total current assets
54,917,722
68,228,757
Long-term contract assets
423,830
336,820
Property and equipment, net
3,626,833
3,627,886
Intangible assets, net
10,570,347
3,302,270
Goodwill
10,345,250
101,008
Other assets
3,003,813
1,995
Total assets
$
82,887,795
$
75,598,736
Liabilities and stockholders’
equity
Liabilities:
Current liabilities:
Current portion of long-term debt
obligations
$
—
$
619,315
Current portion of capital lease
obligations
—
40,586
Accounts payable
2,636,783
2,395,984
Accrued liabilities
9,694,722
6,597,458
Contract liabilities
3,389,417
2,486,111
Total current liabilities
15,720,922
12,139,454
Long-term deferred rent
—
1,035,974
Other long-term liabilities
2,257,958
—
Long-term capital lease obligations
—
68,978
Total liabilities
17,978,880
13,244,406
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001,
1,321,514 shares authorized, 0 and 1,321,514 issued and outstanding
at September 30, 2019 and December 31, 2018, respectively
—
1,322
Common stock, par value $0.001,
100,000,000 shares authorized, 31,798,062 and 29,209,506 shares
issued, 30,158,271 and 27,956,401 shares outstanding at September
30, 2019 and December 31, 2018, respectively
31,998
30,120
Treasury stock at cost, 1,639,791 and
1,253,105 shares at September 30, 2019 and December 31, 2018,
respectively
(4,337,107
)
(2,116,640
)
Additional paid-in capital
87,608,274
85,744,750
Accumulated deficit
(18,394,250
)
(21,305,222
)
Total stockholders’ equity
64,908,915
62,354,330
Total liabilities and
stockholders’ equity
$
82,887,795
$
75,598,736
Luna Innovations Incorporated
Consolidated Statements of Cash Flows
Nine Months Ended September
30,
2019
2018
(unaudited)
Cash flows provided by/(used in)
operating activities
Net income
$
3,196,422
$
10,064,405
Adjustments to reconcile net income to net
cash provided by/(used in) operating activities
Depreciation and amortization
1,834,594
898,215
Share-based compensation
1,140,202
345,582
Bad debt expense
—
6,000
Gain on disposal of fixed assets
—
(1,000
)
Gain on sale of discontinued operations,
net of tax
—
(7,571,810
)
Tax benefit from release of valuation
allowance
(1,889,266
)
—
Change in assets and liabilities
Accounts receivable
(2,238,234
)
(4,056,716
)
Contract assets
(1,106,286
)
(957,012
)
Inventory
(73,122
)
(992,075
)
Other current assets
(74,321
)
482,155
Other long term assets
(338,347
)
—
Accounts payable and accrued expenses
(113,414
)
243,965
Contract liabilities
746,732
(1,906,117
)
Net cash provided by/(used in) operating
activities
1,084,960
(3,444,408
)
Cash flows (used in)/provided by
investing activities
Acquisition of property and equipment
(500,562
)
(272,039
)
Intangible property costs
(192,203
)
(277,068
)
Acquisition of General Photonics
Corporation
(19,004,250
)
—
Proceeds from sale of property and
equipment
—
1,000
Proceeds from sales of discontinued
operations
—
14,775,541
Net cash (used in)/provided by investing
activities
(19,697,015
)
14,227,434
Cash flows used in financing
activities
Payments on finance lease obligations
(26,901
)
(33,064
)
Payments of debt obligations
(625,000
)
(1,375,000
)
Repurchase of common stock
(2,220,467
)
(466,894
)
Proceeds from the exercise of options and
warrants
438,428
1,255,118
Net cash used in financing activities
(2,433,940
)
(619,840
)
Net (decrease)/increase in cash and
cash equivalents
(21,045,995
)
10,163,186
Cash and cash equivalents-beginning of
period
42,460,267
36,981,533
Cash and cash equivalents-end of
period
$
21,414,272
$
47,144,719
Luna Innovations Incorporated
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Three Months Ended September
30,
Nine Months Ended September
30,
2019
2018
2019
2018
(unaudited)
(unaudited)
Net income
$
1,230,252
$
8,848,402
$
3,196,422
$
10,064,405
Less income from discontinued operations,
net of income tax
—
7,555,626
—
8,704,246
Net income from continuing operations
1,230,252
1,292,776
3,196,422
1,360,159
Interest expense
2,032
28,029
14,806
103,208
Investment income
(72,728
)
(171,896
)
(324,139
)
(350,976
)
Tax expense/(benefit)
324,723
(559,093
)
(1,293,051
)
(674,329
)
Depreciation and amortization
668,985
212,054
1,834,594
723,650
EBITDA
2,153,264
801,870
3,428,632
1,161,712
Share-based compensation
419,553
133,432
1,140,202
345,582
Non-recurring charges (1)
—
—
941,716
—
Amortization of inventory step-up
310,612
—
724,760
—
Adjusted EBITDA
$
2,883,429
$
935,302
$
6,235,310
$
1,507,294
(1) Non-recurring charges consist of transaction-related
expenses incurred during the nine months ended September 30, 2019,
related to the acquisition of General Photonics.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191105005959/en/
Investor Contacts: Jane
Bomba Luna Innovations Incorporated Phone: 303-829-1211 Email:
IR@lunainc.com
Sally J. Curley Luna Innovations Incorporated 614-530-3002
IR@lunainc.com
Luna Innovations (NASDAQ:LUNA)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Luna Innovations (NASDAQ:LUNA)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024