Exhibit 99.1
PRESS RELEASE | | 
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CONTACTS: | | |
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Christian Gunning | | Andrew Greenebaum / Laura Foster |
Director, Corporate Communications | | Addo Communications |
cgunning@boingo.com | | andrewg@addocommunications.com / |
(310) 586-4009 | | lauraf@addocommunications.com |
| | (310) 829-5400 |
Boingo Wireless Reports Strong First Quarter 2012 Financial Results
LOS ANGELES — May 3, 2012 — Boingo Wireless, Inc. (NASDAQ: WIFI), the world’s leading Wi-Fi software and services provider, today announced the company’s financial results for the first quarter ended March 31, 2012.
First Quarter 2012 Financial Highlights
Boingo Wireless reported revenue of $24.2 million, compared to $21.0 million for the first quarter of 2011, an increase of 15.0 percent.
Adjusted EBITDA was $8.2 million, compared to $5.0 million for the first quarter of 2011, an increase of 62.2 percent. Adjusted EBITDA, which is a non-GAAP financial measure, is defined below and reconciled to net income (loss), the most comparable measure under GAAP, in the section entitled “Use of non-GAAP financial measures.”
Net income attributable to common stockholders was $1.7 million, or $0.05 per diluted share. This is compared to a net loss attributable to common stockholders of $148 thousand, or ($0.03) per diluted share, for the first quarter of 2011. Net loss attributable to common stockholders for the three months ended March 31, 2011 is inclusive of $1.2 million of accretion of convertible preferred stock.
Management Commentary
“2012 is off to a strong start, reinforcing Boingo Wireless’ market leading position within the wireless eco-system,” said David Hagan, President and Chief Executive Officer of Boingo Wireless. “Continued growth across both our retail and wholesale businesses drove a significant 62% year-over-year increase in Adjusted EBITDA, highlighting our leverageable infrastructure and high margin, recurring revenue streams. Propelling our profitable growth are the strong network effects and ongoing expansion of our global Wi-Fi platform. Year-to-date, we extended the reach of our domestic managed and operated platform to include new prominent venues: Denver International Airport, Chicago’s U.S. Cellular Field and an agreement with Transit Wireless to manage and operate Wi-Fi networks for the New York City Subway System. Internationally, we are thrilled to expand upon our Asia presence with the addition of Phuket International Airport.”
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Mr. Hagan continued, “In addition, we have an extremely robust pipeline of prospective venue launches that we expect will contribute meaningfully to our financial and competitive position in the quarters and years to come. We also look forward to continuing to expand our private label and roaming partner relationships, grow our installed base of software and expand our footprint internationally.”
Business Highlights
Key accomplishments include:
· An agreement with Denver International Airport (DIA) to provide Wi-Fi Internet services for passengers.
· An agreement to manage and operate public Wi-Fi access at U.S. Cellular Field, home of the Chicago White Sox.
· An agreement with Transit Wireless for Boingo to manage and operate Wi-Fi networks for the New York City Subway System.
· An agreement for the launch of the company’s Wi-Fi services at Phuket International Airport.
Business Outlook
Boingo Wireless is initiating guidance for the second quarter ending June 30, 2012, as follows:
Q2 2012
· Revenue is expected to be in the range of $25.0 million to $26.0 million
· Adjusted EBITDA is expected to be in the range of $7.0 million to $8.0 million
· Net income attributable to common stockholders is expected to be in the range of $1.7 million to $2.2 million, or $0.05 to $0.06 per diluted share.
Boingo Wireless is reiterating guidance for the full year ending December 31, 2012, as follows:
Full Year 2012
· Revenue is expected to be in the range of $110.5 million to $114.5 million
· Adjusted EBITDA is expected to be in the range of $35.5 million to $38.5 million
· Net income attributable to common stockholders is expected to be in the range of $9.7 million to $11.7 million, or $0.26 to $0.31 per diluted share.
Conference call information
Members of Boingo Wireless’ management will host a conference call to discuss its first quarter 2012 financial results beginning at 4:30 pm ET (1:30 pm PT), today, May 3, 2012. To participate in the conference call, investors from the U.S. and Canada should dial (877) 941-2068 ten minutes prior to the scheduled start time. International callers should dial (480) 629-9712. In addition, the call will be broadcast live over the Internet hosted on the Investor Relations section of the company’s website at http://investors.boingo.com and will be archived online upon completion of the conference call.
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Use of non-GAAP financial measures
To supplement Boingo Wireless’ financial statements presented on a GAAP basis, Boingo Wireless provides Adjusted EBITDA as a supplemental measure of its performance. The company defines Adjusted EBITDA as net income (loss) attributable to common stockholders plus depreciation, accretion of convertible preferred stock, income taxes, amortization of intangible assets, stock-based compensation expense, non-controlling interests expense and interest expense (income), net. Boingo Wireless believes Adjusted EBITDA is useful to investors in evaluating its operating performance. Boingo’s management uses Adjusted EBITDA in conjunction with accounting principles generally accepted in the United States, or GAAP, and operating performance measures as part of its overall assessment of the company’s performance for planning purposes, including the preparation of its annual operating budget, to evaluate the effectiveness of its business strategies and to communicate with its board of directors concerning its financial performance. Adjusted EBITDA should not be considered as an alternative financial measure to net (loss) income, which is the most directly comparable financial measure calculated in accordance with GAAP, or any other measure of financial performance calculated in accordance with GAAP.
About Boingo Wireless
Boingo Wireless, Inc. (NASDAQ: WIFI), the world’s leading Wi-Fi software and services provider, makes it easy, convenient and cost-effective for people to enjoy Wi-Fi access on their laptop or mobile device at more than 500,000 hotspots worldwide. With a single account, Boingo users can access the mobile internet via Boingo Network locations that include the top airports around the world, major hotel chains, cafés and coffee shops, restaurants, convention centers and metropolitan hot zones. Boingo through its Concourse Communications Group subsidiary operates wireless networks at large-scale venues worldwide such as airports, major sporting arenas, malls, and convention centers, as well as quick serve restaurants. For more information about Boingo, please visit http://www.boingo.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” that involves risks, uncertainties and assumptions. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods. These forward-looking statements include the quotations from management in this press release, as well as any statements regarding Boingo’s strategic plans and future guidance. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Since forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, as well as other risk and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission (“SEC”), including Boingo’s Form 10-K for the year ended December 31, 2011 filed with the SEC on April 13, 2012. Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them.
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We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Boingo, Boingo Wireless, the Boingo Wireless Logo and Don’t Just Go. Boingo. are registered trademarks of Boingo Wireless, Inc. All other trademarks are the properties of their respective owners.
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Boingo Wireless, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
| | Three Months Ended
March 31, | |
| | 2012 | | 2011 | |
| | | | | |
Revenue | | $ | 24,187 | | $ | 21,028 | |
Costs and operating expenses: | | | | | |
Network access | | 9,855 | | 8,337 | |
Network operations | | 3,454 | | 3,724 | |
Development and technology | | 2,658 | | 2,484 | |
Selling and marketing | | 2,251 | | 1,629 | |
General and administrative | | 3,327 | | 2,564 | |
Amortization of intangible assets | | 235 | | 561 | |
Total costs and operating expenses | | 21,780 | | 19,299 | |
Income from operations | | 2,407 | | 1,729 | |
Interest and other income (expense), net | | 56 | | (66 | ) |
Income before income taxes | | 2,463 | | 1,663 | |
Income taxes (1) | | 658 | | 479 | |
Net income | | 1,805 | | 1,184 | |
Net income attributable to non-controlling interests | | 148 | | 137 | |
Net income attributable to Boingo Wireless, Inc. | | 1,657 | | 1,047 | |
Accretion of convertible preferred stock | | — | | (1,195 | ) |
Net income (loss) attributable to common stockholders (1) | | $ | 1,657 | | $ | (148 | ) |
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Net income (loss) per share attributable to common stockholders: | | | | | |
Basic | | $ | 0.05 | | $ | (0.03 | ) |
Diluted | | $ | 0.05 | | $ | (0.03 | ) |
Weighted average shares used in computing net income (loss) per share attributable to common stockholders: | | | | | |
Basic | | 33,969 | | 5,899 | |
Diluted | | 36,632 | | 5,899 | |
(1) As discussed in the annual report on Form 10-K, the Company revised its March 31, 2011 statement of operations to reflect a correction for income taxes. The correction is reflected in the March 31, 2011 column above.
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Boingo Wireless, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share amounts)
| | March 31,
2012 | | December 31,
2011 | |
Assets | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 55,452 | | $ | 93,933 | |
Restricted cash | | 465 | | 465 | |
Marketable securities | | 41,170 | | — | |
Accounts receivable, net | | 8,497 | | 7,382 | |
Prepaid expenses and other current assets | | 4,282 | | 1,103 | |
Deferred tax assets | | 2,366 | | 2,366 | |
Total current assets | | 112,232 | | 105,249 | |
Property and equipment, net | | 41,916 | | 39,717 | |
Goodwill | | 25,512 | | 25,512 | |
Other intangible assets, net | | 9,289 | | 9,511 | |
Deferred tax assets | | 4,083 | | 4,083 | |
Other assets | | 3,741 | | 4,848 | |
Total assets | | $ | 196,773 | | $ | 188,920 | |
| | | | | |
Liabilities and stockholders’ equity | | | | | |
Current liabilities: | | | | | |
Accounts payable | | $ | 4,406 | | $ | 4,573 | |
Accrued expenses and other liabilities | | 10,985 | | 12,759 | |
Deferred revenue | | 15,437 | | 13,575 | |
Current portion of capital leases | | 40 | | 205 | |
Total current liabilities | | 30,868 | | 31,112 | |
Deferred revenue, net of current portion | | 28,203 | | 27,754 | |
Long-term portion of capital leases | | 168 | | 197 | |
Other liabilities | | 621 | | 778 | |
Total liabilities | | 59,860 | | 59,841 | |
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Stockholders’ equity: | | | | | |
Common stock, $0.0001 par value; 100,000 shares authorized, 34,562 and 33,584 shares issued and outstanding at March 31, 2012 and December 31, 2011, respectively | | 3 | | 3 | |
Additional paid-in-capital | | 176,898 | | 170,721 | |
Accumulated deficit | | (40,185 | ) | (41,842 | ) |
Total common stockholders’ equity | | 136,716 | | 128,882 | |
Non-controlling interests | | 197 | | 197 | |
Total stockholders’ equity | | 136,913 | | 129,079 | |
Total liabilities and stockholders’ equity | | $ | 196,773 | | $ | 188,920 | |
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Boingo Wireless, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
| | Three Months Ended
March 31, | |
| | 2012 | | 2011 | |
Cash flows from operating activities | | | | | |
Net income | | $ | 1,805 | | $ | 1,184 | |
Adjustments to reconcile net income including non-controlling interests to net cash provided by operating activities: | | | | | |
Depreciation and amortization of property and equipment | | 4,515 | | 2,529 | |
Amortization of intangible assets | | 235 | | 561 | |
Stock-based compensation | | 993 | | 206 | |
Forgiveness of notes receivable from stockholder | | — | | 103 | |
Excess tax benefits from stock-based compensation | | (1,560 | ) | — | |
Change in deferred income taxes | | — | | 251 | |
Changes in operating assets and liabilities: | | | | | |
Accounts receivable | | (1,115 | ) | 73 | |
Unbilled receivables | | 671 | | (227 | ) |
Prepaid expenses and other assets | | 1,242 | | 940 | |
Accounts payable | | (312 | ) | 970 | |
Accrued expenses and other liabilities | | (3,122 | ) | (2,785 | ) |
Deferred revenue | | 2,311 | | 1,943 | |
Net cash provided by operating activities | | 5,663 | | 5,748 | |
Cash flows from investing activities | | | | | |
Increase in restricted cash | | — | | (23 | ) |
Purchases of short-term investments | | (41,170 | ) | — | |
Purchases of property and equipment | | (5,089 | ) | (6,361 | ) |
Contractual payments related to business acquisition | | (14 | ) | (47 | ) |
Net cash used in investing activities | | (46,273 | ) | (6,431 | ) |
Cash flows from financing activities | | | | | |
Excess tax benefits from stock-based compensation | | 1,560 | | — | |
Proceeds from exercise of stock options | | 1,375 | | 109 | |
Payments of capital leases | | (164 | ) | (122 | ) |
Payments to non-controlling interests | | (642 | ) | (547 | ) |
Net cash provided by (used in) financing activities | | 2,129 | | (560 | ) |
Net decrease in cash and cash equivalents | | (38,481 | ) | (1,243 | ) |
Cash and cash equivalents at beginning of year | | 93,933 | | 25,721 | |
Cash and cash equivalents at end of year | | $ | 55,452 | | $ | 24,478 | |
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Supplemental disclosure of cash flow information | | | | | |
Cash paid for taxes | | $ | 279 | | $ | 937 | |
| | | | | |
Supplemental disclosure of non-cash investing and financing activities | | | | | |
Property and equipment and software maintenance costs in accounts payable, accrued expenses and other liabilities | | 5,455 | | 2,154 | |
IPO costs in accounts payable, accrued expenses and other liabilities | | — | | 854 | |
Accretion of convertible preferred stock | | — | | 1,195 | |
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Schedule of Non-GAAP Reconciliations
(In thousands)
(Unaudited)
| | Three Months Ended | |
| | March 31, | |
| | 2012 | | 2011 | |
| | | | | |
Net income (loss) attributable to common stockholders | | $ | 1,657 | | $ | (148 | ) |
Depreciation | | 4,515 | | 2,529 | |
Stock-based compensation expense | | 993 | | 206 | |
Income tax expense | | 658 | | 479 | |
Amortization of intangible assets | | 235 | | 561 | |
Non-controlling interests | | 148 | | 137 | |
Interest and other (income) expense, net | | (56 | ) | 66 | |
Accretion of convertible preferred stock | | — | | 1,195 | |
Adjusted EBITDA | | $ | 8,150 | | $ | 5,025 | |
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