Viasat Announces Third Quarter Fiscal Year 2020 Results

CARLSBAD, Calif., Feb. 6, 2020 /PRNewswire/ -- Viasat Inc. (NASDAQ: VSAT), a global communications company, today announced financial results for the fiscal third quarter ended December 31, 2019.

"We achieved another quarter of solid revenue growth and margin improvement in our Q3 of fiscal year 2020," said Mark Dankberg, Viasat chairman and CEO. "We're building on a differentiated foundation of business fundamentals in our government systems and satellite services segments. New contract awards and backlog signal continued momentum, and build confidence in a strong finish to our fiscal year 2020 and on into fiscal year 2021. We believe our unique vertical technology and service delivery integration creates compelling long-term opportunities for global expansion. Growth drivers for our government business are in the early innings and are substantially enhanced by global coverage. Our diverse portfolio of fixed and mobile broadband satellite services gives us the flexibility and resilience to thrive in the distinct market environments of each region of the world. We see enormous demand for bandwidth. We're confident in our strategic approach and are focused on executing the opportunities before us, and delivering the ViaSat-3 constellation into service."


                   Financial Results


        (In millions,
         except per share
         data)                        
     
      Q3 FY20 
     
     Q3 FY19  
     
            Year-Over-   
       
              First 9   
       
              First 9   
     
            Year-Over-
                                                                     Year                     Months                   Months                  Year
                                                                    Change                
             FY20           
             FY19             Change

    ---




       Revenues                            $588.2       $554.7                      6%                 $1,717.5                  $1,511.0                      14%

    ---

        Net income
         (loss)(1)                            $6.5      ($10.4)             
            *                   ($1.8)                  ($70.1)                   (97)%

    ---

        Non-GAAP net
         income (loss)(1)                    $24.7         $6.9                    256%                    $52.0                   ($19.5)              
            *

    ---

        Adjusted EBITDA                     $122.3       $108.7                     13%                   $337.3                    $231.1                      46%

    ---

        Diluted per share
         net income
         (loss)(1)                           $0.10      ($0.17)             
            *                  ($0.03)                  ($1.17)                   (97)%

    ---

        Non-GAAP diluted
         per share net
         income (loss)(1)                    $0.39        $0.12                    225%                    $0.83                   ($0.33)              
            *

    ---

        Fully diluted
         weighted average
         shares(2)                            62.9         60.2                      5%                     61.4                      59.7                       3%

    ---



        New contract
         awards(3)                          $577.4       $448.6                     29%                 $1,775.5                  $1,756.9                       1%

    ---

        Sales backlog4                    $1,923.7     $1,827.8                      5%                 $1,923.7                  $1,827.8                       5%

    ---



                   Segment Results


        (In millions)                 
     
      Q3 FY20 
     
     Q3 FY19  
     
            Year-Over-   
       
              First 9   
       
              First 9   
     
            Year-Over-
                                                                     Year                     Months                   Months                  Year
                                                                    Change                
             FY20           
             FY19             Change

    ---



                   Satellite Services

    ---

          New contract
           awards(3)                        $210.7       $185.4                     14%                   $615.3                    $503.6                      22%

    ---

          Revenues                          $211.7       $177.7                     19%                   $614.2                    $494.2                      24%

    ---

          Operating profit
           (loss)5                            $3.6      ($10.2)             
            *                     $6.6                   ($65.0)              
            *

    ---

          Adjusted EBITDA                    $75.1        $56.7                     33%                   $212.9                    $130.8                      63%

    ---



                   Commercial
                    Networks

    ---

          New contract
           awards                           $134.2       $107.4                     25%                   $295.3                    $344.7                    (14)%

    ---

          Revenues                           $84.7       $127.0                   (33)%                   $251.7                    $336.6                    (25)%

    ---

          Operating loss5                  ($46.9)     ($31.2)                    50%                 ($143.6)                 ($117.4)                     22%

    ---

          Adjusted EBITDA                  ($30.6)     ($17.0)                    80%                  ($97.6)                  ($74.3)                     31%

    ---



                   Government Systems

    ---

          New contract
           awards                           $232.5       $155.8                     49%                   $864.9                    $908.6                     (5)%

    ---

          Revenues                          $291.8       $250.1                     17%                   $851.5                    $680.3                      25%

    ---

          Operating profit5                  $59.1        $49.9                     18%                   $167.2                    $119.7                      40%

    ---

          Adjusted EBITDA                    $77.8        $69.0                     13%                   $222.0                    $174.7                      27%

    ---



                            1 Attributable to Viasat, Inc.
                             common stockholders.


                            2 As the three months ended
                             December 31, 2018 and nine months
                             ended December 31, 2019 and 2018
                             financial information resulted in
                             a net loss, the weighted average
                             number of shares used to calculate
                             basic and diluted net loss per
                             share is the same, as diluted
                             shares would be anti-dilutive.
                             However, as the non-GAAP
                             financial information for the nine
                             months ended December 31, 2019
                             resulted in a non-GAAP net
                             income, 62.8 million diluted
                             weighted average number of shares
                             were used instead to calculate
                             non-GAAP diluted net income per
                             share.


                            (3) Awards exclude future revenue
                             under recurring consumer
                             commitment arrangements.


                            4 Amounts include certain backlog
                             adjustments due to contract
                             changes and amendments. Our
                             backlog includes contracts with
                             subscribers for fixed


               broadband services in our satellite
                services segment. Backlog does not
                include anticipated purchase
                orders and requests for the
                installation of in-flight


               connectivity systems or future
                recurring in-flight internet
                service revenues under our
                commercial in-flight internet
                agreements in our Commercial
                Networks


               and Satellite Services segments,
                respectively.


                            5 Before corporate and amortization
                             of acquired intangible assets.


               * Percentage not meaningful.

Company Highlights

    --  Viasat named to Glassdoor's 2020 Best Places to Work for U.S. large
        employers
    --  At the 2019 World Radiocommunication Conference, International
        Telecommunication Union Member States agreed to expand Ka-band spectrum
        availability for satellite broadband mobility services, enabling Viasat
        to expand its global mobility broadband offerings
    --  Viasat, in cooperation with the Government Business Council, released
        the first-ever 'State of Military Communications' study which
        highlighted military technology improvement tactics to alleviate mission
        risks
    --  Following the close of third quarter fiscal year 2020, Viasat announced
        the appointment of Dr. Theresa Wise, former chief information officer of
        Delta Air Lines and Northwest Airlines, to the Company's Board of
        Directors

Satellite Services

-- Q3 Fiscal Year 2020 Financials

    --  Revenues reached a new high of $211.7 million, a 19% increase
        year-over-year and a 3% increase sequentially, marking the eighth
        sequential quarter of revenue gains
    --  New contract awards increased 14% year-over-year to $210.7 million
    --  Segment operating income was $3.6 million, compared to a $10.2 million
        operating loss in the prior year period, while Adjusted EBITDA increased
        by 33% year-over-year to $75.1 million as fixed and mobile broadband
        revenues continued to scale on the ViaSat-2 satellite system. Excluding
        the $4.0 million ViaSat-2 insurance gain in the same period last year,
        segment Adjusted EBITDA increased 43%

-- Business Highlights

    --  U.S. fixed broadband subscriber average revenue per user (ARPU) reached
        a record $89.71, an increase of 15% year-over-year on approximately flat
        subscriber growth, as new subscribers continued to embrace Viasat's
        premium broadband service plans
    --  In Mexico, Viasat continued to diversify its broadband service offerings
        and launched residential service; while consumer engagement on Community
        Wi-Fi internet hotspots grew on a sequential quarter basis
    --  In Brazil, Viasat's participation in the Governo Eletrônico - Serviço
        de Atendimento ao Cidadão (GESAC) initiative continued to ramp, with
        over 1,500 new sites deployed in the quarter
    --  In Business Aviation, Viasat's next-generation Ka-band In-Flight
        Connectivity (IFC) system was approved for Gulfstream G280 aircraft and
        received Type Certification for Embraer Praetor 600 aircraft; Viasat's
        dual-band business aviation IFC system also received Supplemental Type
        Certificate for the Bombardier Global 5000/6000/GEX family
    --  In Commercial Aviation, IFC service was active on 1,379 commercial
        aircraft - up 23% year-over-year with a gross annual passenger
        opportunity reaching over 250 million people
    --  As reported during Viasat's prior earnings call, in early third quarter
        of fiscal year 2020, Viasat was selected by Brazil's Azul Airlines to
        install IFC equipment/service on more than 100 combined Airbus A320neo
        and Embraer E195-E2 aircraft; additionally EL AL Israel Airlines
        committed to go full fleet with Viasat, adding Viasat's latest equipment
        to its new Boeing 777 widebody and remaining Boeing 737 narrowbody fleet
    --  Following the close of third quarter fiscal year 2020, Viasat:
        --  Expects to install its IFC equipment on over 690 additional
            commercial aircraft under existing contracts, with rising momentum
            seen in international aviation markets as passengers increasingly
            value an 'at home' internet experience while in-flight
        --  Announced expansion of its third-party platform engagement program,
            with the addition of fuboTV, one of the first live TV and sports
            streaming services to expand distribution to the U.S. aviation
            market

-- Fiscal Year-to-Date Summary

    --  Fiscal year-to-date, Satellite Services segment reached record revenue
        levels with operating profit and Adjusted EBITDA performance increases
        compared to the same period last year reflecting year-over-year impacts
        similar to those seen in the third quarter of fiscal year 2020

Commercial Networks

-- Q3 Fiscal Year 2020 Financials

    --  Revenues were $84.7 million, a 33% decrease year-over-year, reflecting
        the year-ago period's accelerated IFC equipment installations for
        American Airlines; on a sequential quarter basis IFC terminal deliveries
        were up despite the continued grounding of the Boeing 737 MAX aircraft
    --  New contract awards were at $134.2 million, a 25% year-over-year
        increase
    --  Segment operating loss was 50% higher and Adjusted EBITDA was 80% lower
        compared to the same period last year due to expected reductions in IFC
        terminal deliveries and higher research and development costs associated
        with the ViaSat-3 space and ground segments

-- Business Highlights

    --  Continued progress made on the ViaSat-3 program with multiple project
        milestones being achieved including critical unit deliveries;
        integration and test activities on both the ViaSat-3 (Americas) and
        ViaSat-3 (Europe, Middle East, Africa) satellites; and successful
        completion of the Preliminary Design Review (PDR) for the third ViaSat-3
        (Asia Pacific) satellite
    --  Began deployment of the U.S. and European ground networks for the first
        two ViaSat-3 satellites and initiated siting work for the Asia-Pacific
        ground network
    --  Completed successful over-the-air test antenna switching on Viasat's
        second-generation hybrid Ku-/Ka-band aviation antenna, highlighting
        antenna readiness for global aviation opportunities

-- Fiscal Year-to-Date Summary

    --  Fiscal year-to-date, Commercial Networks segment revenue was lower,
        operating loss was higher and Adjusted EBITDA was lower compared to the
        same period last year, reflecting year-over-year impacts similar to
        those seen in the third quarter of fiscal year 2020

Government Systems

-- Q3 Fiscal Year 2020 Financials

    --  Revenues were $291.8 million, an increase of 17% year-over-year led by
        expanding positions in the Company's satellite communications (SATCOM),
        mobile networking solutions and tactical data links products
    --  New contract awards were up 49% year-over-year to $232.5 million
        securing a positive book-to-bill ratio performance for the year-to-date
        period
    --  Operating profit increased 18% year-over-year to $59.1 million while
        Adjusted EBITDA increased 13% to $77.8 million

-- Business Highlights

    --  Fiscal year 2020 U.S. Appropriations legislation signed into law;
        created new opportunities for Viasat in IFC and cybersecurity, as
        additional government defense funds were released
    --  Viasat's Multi-Mission Terminal began the UK Skynet SATCOM assurance and
        certification process; allowing the UK Ministry of Defence to access
        secure, resilient, high-speed, multi-orbit, multi-frequency band and
        multi-network SATCOM architectures
    --  Viasat expanded its presence in Australia and established two
        maintenance, test and integration facilities to enhance in-country
        sovereign defense capabilities
    --  Viasat made third-party government terminal modification kits available,
        enabling U.S. Department of Defense and coalition forces to use existing
        SATCOM terminals to access high-capacity, secure and resilient networks,
        without needing to completely replace the entire set of terminal
        equipment

-- Fiscal Year-to-Date Summary

    --  Fiscal year-to-date, Government Systems segment revenue, operating
        profit and Adjusted EBITDA performance for the segment were higher
        compared to the same period last year reflecting strong performance
        across the segment's product lines, especially SATCOM, tactical data
        links products, information assurance and global mobility/intelligence
        surveillance and reconnaissance offerings.

Conference Call
Viasat will host a conference call to discuss the third quarter fiscal year 2020 results. Details follow:



     DATE/TIME:   Thursday, February 6, 2020 at 5:00 p.m. Eastern
                    Time



     DIAL-IN:     (877) 640-9809 in the U.S.; (914) 495-8528
                    international



     WEBCAST:   
      investors.viasat.com.



     REPLAY:      Available from 8:00 p.m. Eastern Time on Thursday,
                    February 6 until 11:59 p.m. Eastern Time on
                    Friday, February 7 by dialing (855) 859-2056 for
                    U.S. callers and (404) 537-3406 for international
                    callers; conference ID 9295872.

About Viasat
Viasat is a global communications company that believes everyone and everything in the world can be connected. For more than 30 years, Viasat has helped shape how consumers, businesses, governments and militaries around the world communicate. Today, the Company is developing the ultimate global communications network to power high-quality, secure, affordable, fast connections to impact people's lives anywhere they are--on the ground, in the air or at sea. To learn more about Viasat, visit: www.viasat.com, go to Viasat's Corporate Blog, or follow the Company on social media at: Facebook, Instagram, LinkedIn, Twitter or YouTube.

Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements that refer to opportunities, growth and outlook for the remainder of fiscal year 2020 and beyond; satellite construction and launch activities; the expected completion, performance, capacity, service, coverage, service speeds, availability and other features of our satellites, and the timing, cost, economics and other benefits associated therewith; international expansion plans, including in Brazil and Mexico; the number of IFC systems expected to be installed under existing contracts with commercial airlines; and the impacts of new contracts entered into with, and the roll-out, ramp-up and uptake of products and services by, and services to be offered by, our airline partners and other customers. Readers are cautioned that actual results could differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ include: our ability to realize the anticipated benefits of the ViaSat-2 and ViaSat-3 class satellites; unexpected expenses related to our satellite projects; our ability to successfully implement our business plan for our broadband satellite services on our anticipated timeline or at all; risks associated with the construction, launch and operation of our satellites, including the effect of any anomaly, operational failure or degradation in satellite performance; our ability to realize the anticipated benefits of our acquisitions or strategic partnering arrangements; our ability to successfully develop, introduce and sell new technologies, products and services; the number of purchase orders that are submitted and accepted for the installation of IFC systems with respect to aircraft under contract; audits by the U.S. government; changes in the global business environment and economic conditions; delays in approving U.S. government budgets and cuts in government defense expenditures; our reliance on U.S. government contracts, and on a small number of contracts which account for a significant percentage of our revenues; reduced demand for products and services as a result of continued constraints on capital spending by customers; changes in relationships with, or the financial condition of, key customers or suppliers; our reliance on a limited number of third parties to manufacture and supply our products; increased competition; introduction of new technologies and other factors affecting the communications and defense industries generally; the effect of adverse regulatory changes (including changes affecting spectrum availability or permitted uses) on our ability to sell products and services; orbital arc congestion affecting availability of Ka-band spectrum; the effect of changes in the way Ka-band spectrum is used by others; our level of indebtedness and ability to comply with applicable debt covenants; our involvement in litigation, including intellectual property claims and litigation to protect our proprietary technology; and our dependence on a limited number of key employees. In addition, please refer to the risk factors contained in our SEC filings available at www.sec.gov, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements for any reason.

Use of Non-GAAP Financial Information
To supplement Viasat's consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), ViaSat uses non-GAAP net income (loss) attributable to Viasat Inc. and Adjusted EBITDA, measures Viasat believes are appropriate to enhance an overall understanding of Viasat's past financial performance and prospects for the future. We believe the non-GAAP results provide useful information to both management and investors by excluding specific expenses that we believe are not indicative of our core operating results. In addition, since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency in our financial reporting and facilitates comparisons to the Company's historical operating results. Further, these non-GAAP results are among the primary indicators that management uses as a basis for evaluating the operating performance of our segments, allocating resources to such segments, planning and forecasting in future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for measures of financial performance prepared in accordance with GAAP. A reconciliation of specific adjustments to GAAP results is provided in the tables below.

Copyright © 2020 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat signal are registered trademarks of Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.


                                                                                                 
              
                Condensed Consolidated Statements of Operations


                                                                                                                   
              
                (Unaudited)


                                                                                                      
              
                (In thousands, except per share data)




                                                
              
                Three months ended                     
              
                Nine months ended



                                                 
              
                December 31, 2019                     
              
                December 31, 2018                        
              
                December 31, 2019                      
              
                December 31, 2018

                                                                                                                                                                                                                                                                                         ---




     Revenues:


      Product revenues                                                                $303,090                                                       $301,865                                                          $873,535                                                        $800,429


      Service revenues                                                                 285,134                                                        252,829                                                           843,982                                                         710,608



      Total revenues                                                                   588,224                                                        554,694                                                         1,717,517                                                       1,511,037





     Operating expenses:


      Cost of product
       revenues                                                                        214,098                                                        226,020                                                           634,113                                                         616,368


      Cost of service
       revenues                                                                        190,132                                                        176,686                                                           564,675                                                         523,348


      Selling, general and
       administrative                                                                  136,005                                                        114,566                                                           388,528                                                         340,328


      Independent research
       and development                                                                  32,164                                                         28,928                                                            99,952                                                          93,661


      Amortization of
       acquired intangible
       assets                                                                            1,856                                                          2,487                                                             5,920                                                           7,375


      Income (loss) from
       operations                                                                       13,969                                                          6,007                                                            24,329                                                        (70,043)


      Interest expense, net                                                            (9,097)                                                      (14,865)                                                         (28,473)                                                       (40,198)



      Income (loss) before
       income taxes                                                                      4,872                                                        (8,858)                                                          (4,144)                                                      (110,241)


      Benefit from
       (provision for)
       income taxes                                                                      3,911                                                        (3,230)                                                            8,731                                                          35,679


      Equity in income of
       unconsolidated
       affiliate, net                                                                    1,807                                                          1,351                                                             4,328                                                           2,730



      Net income (loss)                                                                 10,590                                                       (10,737)                                                            8,915                                                        (71,832)


      Less: net income
       (loss) attributable
       to noncontrolling
       interests, net of tax                                                             4,114                                                          (333)                                                           10,713                                                         (1,694)


      Net income (loss)
       attributable to
       Viasat Inc.                                                                      $6,476                                                      $(10,404)                                                         $(1,798)                                                      $(70,138)

                                                                                                                                                                                                                                                                                         ===



      Diluted net income
       (loss) per share
       attributable to
       Viasat Inc. common
       stockholders                                                                      $0.10                                                        $(0.17)                                                          $(0.03)                                                        $(1.17)

                                                                                                                                                                                                                                                                                         ===

      Diluted common
       equivalent shares (2)                                                            62,916                                                         60,152                                                            61,405                                                          59,698





     
                AN ITEMIZED RECONCILIATION BETWEEN NET INCOME (LOSS) ATTRIBUTABLE TO VIASAT INC.



     
                ON A GAAP BASIS AND NON-GAAP BASIS IS AS FOLLOWS:


                   (In thousands, except
                    per share data)             
              
                Three months ended                     
              
                Nine months ended



                                                 
              
                December 31, 2019                     
              
                December 31, 2018                        
              
                December 31, 2019                      
              
                December 31, 2018

                                                                                                                                                                                                                                                                                         ---



      GAAP net income (loss)
       attributable to
       Viasat Inc.                                                                      $6,476                                                      $(10,404)                                                         $(1,798)                                                      $(70,138)


      Amortization of
       acquired intangible
       assets                                                                            1,856                                                          2,487                                                             5,920                                                           7,375


      Stock-based
       compensation expense                                                             21,908                                                         20,155                                                            64,236                                                          58,658


      Income tax effect (1)                                                            (5,573)                                                       (5,306)                                                         (16,320)                                                       (15,393)


      Non-GAAP net income
       (loss) attributable
       to Viasat Inc.                                                                  $24,667                                                         $6,932                                                           $52,038                                                       $(19,498)

                                                                                                                                                                                                                                                                                         ===

      Non-GAAP diluted net
       income (loss) per
       share attributable to
       Viasat Inc. common
       stockholders                                                                      $0.39                                                          $0.12                                                             $0.83                                                         $(0.33)

                                                                                                                                                                                                                                                                                         ===

      Diluted common
       equivalent shares (2)                                                            62,916                                                         60,152                                                            62,754                                                          59,698





     
                (1)The income tax effect is calculated using the tax rate applicable for the non-GAAP adjustments.


                   (2)As the three months ended December 31, 2018 and nine months ended December 31, 2019 and 2018 financial information resulted in a net loss, the weighted average number of shares used to calculate basic and diluted net loss per share is the same,
                    as diluted shares would be anti-dilutive. However, as the non-GAAP financial information for the nine months ended December 31, 2019 resulted in a non-GAAP net income, diluted weighted average number of shares were used instead to calculate
                    non-GAAP diluted net income per share.





     
                AN ITEMIZED RECONCILIATION BETWEEN NET INCOME (LOSS) ATTRIBUTABLE TO VIASAT INC.



     
                AND ADJUSTED EBITDA IS AS FOLLOWS:


                   (In thousands)               
              
                Three months ended                     
              
                Nine months ended



                                                 
              
                December 31, 2019                     
              
                December 31, 2018                        
              
                December 31, 2019                      
              
                December 31, 2018

                                                                                                                                                                                                                                                                                         ---



      GAAP net income (loss)
       attributable to
       Viasat Inc.                                                                      $6,476                                                      $(10,404)                                                         $(1,798)                                                      $(70,138)


      (Benefit from)
       provision for income
       taxes                                                                           (3,911)                                                         3,230                                                           (8,731)                                                       (35,679)


      Interest expense, net                                                              9,097                                                         14,865                                                            28,473                                                          40,198


      Depreciation and
       amortization                                                                     88,759                                                         80,834                                                           255,109                                                         238,105


      Stock-based
       compensation expense                                                             21,908                                                         20,155                                                            64,236                                                          58,658


      Adjusted EBITDA                                                                 $122,329                                                       $108,680                                                          $337,289                                                        $231,144

                                                                                                                                                                                                                                                                                         ===



     
                AN ITEMIZED RECONCILIATION BETWEEN SEGMENT OPERATING PROFIT (LOSS) BEFORE



     
                CORPORATE AND AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS AND ADJUSTED EBITDA IS AS FOLLOWS:



     
                (In thousands)




                                                                                                  Three months ended December 31, 2019                                         Three months ended December 31, 2018

                                                                                                                ---                                                                ---

                                                                                                  Satellite             
              
              Commercial  
       
             Government                                     Total             Satellite     
     
              Commercial      
     
             Government       Total
                                                                                       Services                                      Networks                   Systems                                                         Services                   Networks                     Systems



      Segment operating profit (loss) before corporate and
       amortization of acquired intangible assets                                                    $3,600                                     $(46,917)                   $59,142                                    $15,825              $(10,196)                   $(31,219)                     $49,909       $8,494



     Depreciation(3)                                                                                55,003                                         6,725                     11,078                                     72,806                 51,060                        5,663                        9,849       66,572



     Stock-based compensation expense                                                                6,631                                         7,635                      7,642                                     21,908                  6,250                        6,842                        7,063       20,155



     Other amortization                                                                              8,075                                         1,964                      4,058                                     14,097                  7,648                        1,721                        2,406       11,775



     Equity in income of unconsolidated affiliate, net                                               1,807                                                                                                             1,807                  1,351                                                                1,351



     Noncontrolling interests                                                                                                                                             (4,114)                                   (4,114)                   562                                                    (229)         333




     Adjusted EBITDA                                                                               $75,116                                     $(30,593)                   $77,806                                   $122,329                $56,675                    $(16,993)                     $68,998     $108,680





                                                                          
              
                Nine months ended December 31, 2019                       
          
              Nine months ended December 31, 2018

                                                                                                                ---                                                                ---

                                                                                                  Satellite             
              
              Commercial  
       
             Government                                     Total             Satellite     
     
              Commercial      
     
             Government       Total
                                                                                       Services                                      Networks                   Systems                                                         Services                   Networks                     Systems



      Segment operating profit (loss) before corporate and
       amortization of acquired intangible assets                                                    $6,648                                    $(143,559)                  $167,160                                    $30,249              $(64,971)                  $(117,424)                    $119,727    $(62,668)



     Depreciation(3)                                                                               158,701                                        18,070                     31,179                                    207,950                151,893                       16,658                       27,011      195,562



     Stock-based compensation expense                                                               19,523                                        22,296                     22,417                                     64,236                 17,276                       20,706                       20,676       58,658



     Other amortization                                                                             23,691                                         5,641                     11,907                                     41,239                 21,608                        5,716                        7,844       35,168



     Equity in income of unconsolidated affiliate, net                                               4,328                                                                                                             4,328                  2,730                                                                2,730



     Noncontrolling interests                                                                                                                                            (10,713)                                  (10,713)                 2,269                                                    (575)       1,694




     Adjusted EBITDA                                                                              $212,891                                     $(97,552)                  $221,950                                   $337,289               $130,805                    $(74,344)                    $174,683     $231,144



                            (3)Depreciation expenses not
                             specifically recorded in a
                             particular segment have been
                             allocated based on other
                             indirect allocable costs, which
                             management believes is a
                             reasonable method.


                                                                              
      
          Condensed Consolidated Balance Sheets


                                                                                   
        
                (Unaudited)


                                                                                  
        
                (In thousands)




                            
       
           As of            
       
          As of                                                          
       
           As of              
       
          As of


                   Assets 
       
       December 31, 2019    
       
       March 31, 2019     
        
                Liabilities and Equity       
       
       December 31, 2019      
       
       March 31, 2019

                                                                                                                                                                                    ---




     Current assets:                                                           
         Current liabilities:


      Cash and cash
       equivalents                             $47,778                 $261,701     
         Accounts payable                                             $152,386                   $157,275


      Accounts
       receivable,
       net                                     316,439                  300,307     
         Accrued and other liabilities (4)                             355,916                    308,268


      Inventories                              283,300                  234,518     
         Current portion of long-term debt                              30,101                     19,937



      Prepaid
       expenses and
       other current
       assets                                  102,724                   90,646     
         Total current liabilities                                     538,403                    485,480


      Total current
       assets                                  750,241                  887,172


                                                                                
         Senior notes                                                1,284,913                  1,282,898


                                                                                
         Other long-term debt                                          257,778                    110,005


                                                                                
         Non-current operating lease liabilities(4)                    289,159


      Property,
       equipment and
       satellites,
       net                                   2,513,013                2,125,290     
         Other liabilities                                             118,120                    120,826



      Operating
       lease right-
       of-use
       assets (4)                              312,509                             
         Total liabilities                                           2,488,373                  1,999,209



      Other acquired
       intangible
       assets, net                              16,271                   22,301     
         Total Viasat Inc. stockholders' equity                      2,006,268                  1,907,748


      Goodwill                                 121,745                  121,719     
         Noncontrolling interest in subsidiary                          19,043                      8,330



      Other assets                             799,905                  758,805     
         Total equity                                                2,025,311                  1,916,078



      Total assets                          $4,513,684               $3,915,287     
         Total liabilities and equity                               $4,513,684                 $3,915,287

                                                                                                                                                                                    ===



                            (4)The balances as of
                             December 31, 2019 reflect
                             the Company's adoption of
                             Accounting Standards Update
                             2016-02, Leases, commonly
                             referred to as ASC 842.

View original content:http://www.prnewswire.com/news-releases/viasat-announces-third-quarter-fiscal-year-2020-results-301000656.html

SOURCE Viasat, Inc.