Pacific DataVision Reports Third Quarter Results
2/19/15
WOODLAND PARK, NJ -- (
The Company is currently in the process of preparing to deploy its advanced dispatch networks in major metropolitan markets in
Revenue for the third quarter of FY 2015 was
The expected decline in revenue for the three and nine month periods is a result of decreases in the Company's lower margin international operations in
Adjusted EBITDA for the quarter was a negative (
- raised more than
$218 million ; - acquired
Sprint's nationwide 900 MHZ spectrum licenses; - entered into a strategic relationship with Motorola;
- began the construction of our dedicated dispatch networks;
- initiated the process, together with industry support, of requesting the FCC authorization to permit broadband services on the spectrum we acquired; and
- qualified to be a U.S. public reporting company and listed our common stock for trading on The
NASDAQ Capital Market ."
Mr. Pescatore continued, "We are proud that in a relatively short time the Company has set the stage to launch our next generation two-way radio networks. We expect to have service available in our first four markets by the end of
Strong Cash Position
The Company has a strong cash position, with
The Company plans to use this cash to pursue its regulatory initiatives and to deploy dedicated dispatch networks in 20 major metropolitan markets throughout the US. This will include the costs to deploy this network by acquiring and installing network equipment plus the costs of hiring additional employees to support the rollout and sales and marketing efforts. In the third quarter ended
Recent Events
In
On
Conference Call
PDV will host a conference call to discuss its third quarter 2015 financial results on
About
Non-GAAP Financial Information
This press release and the information contained herein present a non-GAAP financial measure, Adjusted EBITDA, which excludes certain amounts. The Company defines Adjusted EBITDA as net income (loss) with adjustments for depreciation and amortization, interest income (expense)-net, income taxes and stock-based compensation. The Company has included below unaudited adjusted financial information for the three and nine months ended
Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts are forward-looking statements (as defined under Federal securities laws). Forward-looking statements generally are accompanied by words such as "will", "expect", "intend", "plan", "outlook" or other similar words, phrases or expressions. These forward-looking statements include statements regarding the planned timing and scope of the Company's deployment of its dispatch network, the estimated costs of deploying its dispatch network and its regulatory initiatives and plans. Any forward-looking statements contained herein are based on our current expectations, but are subject to a number of risks and uncertainties that could cause our actual future results to differ materially from our current expectations or implied by any forward-looking statements. These risks and uncertainties include, but are not limited to: we have no operating history with respect to our proposed push-to-talk business; we have had net losses each year since our inception and may not achieve or maintain profitability in the future; we may experience delays in launching our nationwide network; customers may not adopt our technology; any efforts we pursue to increase the value of our spectrum may not be successful; we will rely on the equipment and selling efforts of other parties, such as indirect dealers; the wireless communication industry is highly competitive and we may not compete successfully; and government regulation could adversely affect our business and prospects. These and other factors that may affect our future results or operations are identified and described in more detail in our filings with the
Pacific DataVision, Inc. | |||||||||||||||||
Statements of Operations | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Operating Revenues | |||||||||||||||||
Service Revenue | $ | 929,515 | $ | 653,437 | $ | 2,631,174 | $ | 2,143,707 | |||||||||
Spectrum Lease Revenue | - | 182,186 | - | 212,551 | |||||||||||||
Total Operating Revenue | $ | 929,515 | $ | 835,623 | $ | 2,631,174 | $ | 2,356,258 | |||||||||
Cost of Revenue | |||||||||||||||||
Service | 294,942 | 283,043 | 823,347 | 790,687 | |||||||||||||
Gross Profit | 634,573 | 552,580 | 1,807,827 | 1,565,571 | |||||||||||||
Operating Expenses | |||||||||||||||||
General and administrative | 234,312 | 3,336,996 | 671,176 | 8,230,664 | |||||||||||||
Sales and Support | 346,560 | 478,246 | 1,063,546 | 1,167,609 | |||||||||||||
Product development | 223,230 | 242,823 | 697,458 | 679,577 | |||||||||||||
Depreciation and amortization | 15,118 | 25,306 | 45,352 | 54,526 | |||||||||||||
Total Operating Expenses | 819,220 | 4,083,371 | 2,477,532 | 10,132,376 | |||||||||||||
Loss from Operations | (184,647 | ) | (3,530,791 | ) | (669,705 | ) | (8,566,805 | ) | |||||||||
Interest expense - affiliated entities | (86,103 | ) | - | (236,831 | ) | (570,737 | ) | ||||||||||
Interest income | - | 4,927 | - | 4,927 | |||||||||||||
Net Loss | $ | (270,750 | ) | $ | (3,525,864 | ) | $ | (906,536 | ) | $ | (9,132,615 | ) | |||||
Net loss per common share basic and diluted | $ | (0.30 | ) | $ | (0.28 | ) | $ | (1.00 | ) | $ | (0.98 | ) | |||||
Weighted-average common shares used to compute basic and diluted net loss per share | 904,611 | 12,473,024 | 904,611 | 9,301,800 | |||||||||||||
The table below reconciles Adjusted EBITDA to the Company's GAAP disclosure of net loss: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||
Adjusted EBITDA: | |||||||||||||||||
Net Loss | $ | (270,750 | ) | $ | (3,525,864 | ) | $ | (906,536 | ) | $ | (9,132,615 | ) | |||||
Interest expense - affiliated entities | 86,103 | - | 236,831 | 570,737 | |||||||||||||
Deprectiation and amortization | 15,118 | 25,306 | 45,352 | 54,526 | |||||||||||||
Stock Compensation expense | 19,764 | 1,404,202 | 59,292 | 4,680,802 | |||||||||||||
ADJUSTED EBITDA | $ | (149,765 | ) | $ | (2,096,356 | ) | $ | (565,061 | ) | $ | (3,826,550 | ) | |||||
Pacific DataVision, Inc. | ||||||||||
Balance Sheets | ||||||||||
March 31, | December 31, | |||||||||
2014 | 2014 | |||||||||
ASSETS | (Unaudited) | |||||||||
Current Assets | ||||||||||
Cash | $ | 45,679 | $ | 122,729,111 | ||||||
Accounts Receivable, net of allowance for doubtful accounts of $12,619 and $37,248 | 369,408 | 424,883 | ||||||||
Prepaid Expenses | 22,046 | 663,521 | ||||||||
Total Current Assets | 437,133 | 123,817,515 | ||||||||
Furniture, fixture and equipment, net | 99,548 | 1,723,764 | ||||||||
Intangible Assets | - | 100,298,444 | ||||||||
Capitalized patent costs, net | 259,627 | 236,206 | ||||||||
Other assets | 6,883 | 16,583 | ||||||||
Total Assets | $ | 803,191 | $ | 226,092,512 | ||||||
LIABILITIES AND STOCKHOLDERS EQUITY/(DEFICIENCY) | ||||||||||
Current Liabilities | ||||||||||
Accounts Payable and accrued expenses | $ | 254,981 | $ | 2,660,889 | ||||||
Accounts Payable - officers | 117,961 | 17,506 | ||||||||
Deferred Revenue | - | 719,986 | ||||||||
Total Current Liabilities | 372,942 | 3,398,381 | ||||||||
Noncurrent Liabilities | ||||||||||
Deferred Revenue | - | 6,576,222 | ||||||||
Accrued Interest expense - affiliated entities | 870,247 | - | ||||||||
Deferred Compensation | 361,610 | - | ||||||||
Notes payable - affiliated entities | 3,405,808 | - | ||||||||
Total Liabilities | 5,010,607 | 9,974,603 | ||||||||
Stockholders' Equity/(Deficiency) | ||||||||||
Preferred Stock, no par value, 8% non-cumulative dividend, 40,000,000 shares authorized, 748,722 shares outstanding at March 31, 2014 and par value, $0.0001 per share, 10,000,000 shares authorized and no shares outstanding at December 31, 2014 | 20,525,999 |
- |
||||||||
Common Stock, no par value, 85,000,000 shares authorized, 126,759 shares issued andoutstanding at March 31, 2014 and par value, $0.0001 per share, 100,000,000 shares authorized and 12,473,024 shares issued and outstanding at December 31, 2014 | 12 |
1,247 |
||||||||
Additional Paid-in Capital | 2,209,584 | 252,192,288 | ||||||||
Accumulated deficit | (26,943,011 | ) | (36,075,626 | ) | ||||||
Total Stockholders' Equity/(Deficiency) | (4,207,416 | ) | 216,117,909 | |||||||
Total Liabilities & Stockholders' Equity/(Deficiency) | $ | 803,191 | $ | 226,092,512 | ||||||
Pacific DataVision, Inc. | |||||||||||
Statements of Cash Flows | |||||||||||
(Unaudited) | |||||||||||
Nine months ended | |||||||||||
December 31, | |||||||||||
2013 | 2014 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITES | |||||||||||
Net Loss | $ | (906,536 | ) | $ | (9,132,615 | ) | |||||
Adjustments to reconcile net loss to net cash provided (used) by operating activities | |||||||||||
Depreciation and amortization | 45,352 | 54,526 | |||||||||
Non-cash compensation expense attributable to stock awards | 59,292 | 4,680,802 | |||||||||
Changes in Operating Assets and Liabilities | |||||||||||
Accounts receivable | (170,235 | ) | (55,475 | ) | |||||||
Prepaid expenses and other assets | (12,192 | ) | (651,176 | ) | |||||||
Accounts payable and accrued expenses | 14,299 | 2,405,908 | |||||||||
Accounts payable - officers | 15,620 | (100,455 | ) | ||||||||
Accrued interest expense | 236,922 | (332,524 | ) | ||||||||
Deferred compensation | 18,255 | (361,610 | ) | ||||||||
Deferred revenue | - | 7,296,208 | |||||||||
Net Cash flows provided (used) by Operating Activities | (699,223 | ) | 3,803,589 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Payment of deposit | - | (13,500,000 | ) | ||||||||
Purchases of intangible assets | - | (76,798,444 | ) | ||||||||
Purchases of equipment | (31,403 | ) | (1,646,611 | ) | |||||||
Payments for patent costs | (28,905 | ) | (8,709 | ) | |||||||
Net Cash used by Investing Activities | (60,308 | ) | (91,953,764 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from notes payable | 593,401 | 45,000 | |||||||||
Net proceeds from Section 144A Offering | - | 201,922,458 | |||||||||
Payment of Notes Payable | - | (1,133,851 | ) | ||||||||
Proceeds from Motorola Investment | - | 10,000,000 | |||||||||
Net Cash provided from Financing Activities | 593,401 | 210,833,607 | |||||||||
Net Change in Cash | (166,130 | ) | 122,683,432 | ||||||||
CASH | |||||||||||
Beginning of the period | 194,938 | 45,679 | |||||||||
End of of the period | $ | 28,808 | $ | 122,729,111 | |||||||
Investor Relations Contacts:
CFO,
973-771-0981
Email Contact
Principal,
917-675-6250
Email Contact
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