Quarterly report pursuant to Section 13 or 15(d)

Revenue (Tables)

v3.10.0.1
Revenue (Tables)
 6 Months Ended
Jun. 30, 2018
Revenue from Contract with Customer [Abstract]  
Schedule of Impact of New Accounting Pronouncements
The following table presents the effect of the adoption of ASU 2014-09 on our consolidated balance sheet as of June 30, 2018 (in thousands):

 
June 30, 2018
 
Without ASC 606 Adoption
 
Effect of change Increase/ (Decrease)
 
As Reported
 
 
 
 
 
 
 Cash and cash equivalents
$
37,403

 
—

 
$
37,403

 Restricted cash
5,390

 
—

 
5,390

 Accounts receivable, net
105,054

 
(1,639
)
 
103,415

 Inventories
32,719

 
—

 
32,719

 Prepaid expenses
16,949

 
—

 
16,949

 Other current assets
21,482

 
—

 
21,482

 TOTAL CURRENT ASSETS
218,997

 
(1,639
)
 
217,358

 Content library
8,101

 
—

 
8,101

 Property, plant and equipment
190,716

 
—

 
190,716

 Goodwill
159,610

 
—

 
159,610

 Intangible assets, net
101,659

 
—

 
101,659

 Equity method investments
135,430

 
—

 
135,430

 Other non-current assets
8,284

 
3,319

 
11,603

 TOTAL ASSETS
$
822,797

 
1,680

 
$
824,477

 
 
 
 
 
 
 Accounts payable and accrued liabilities
$
189,851

 
(1,620
)
 
$
188,231

 Deferred revenue
8,347

 
125

 
8,472

 Current portion of long-term debt
19,595

 
—

 
19,595

 Other current liabilities
9,661

 
—

 
9,661

 TOTAL CURRENT LIABILITIES
227,454

 
(1,495
)
 
225,959

 Deferred revenue, non-current
1,089

 
—

 
1,089

 Long-term debt
633,527

 
—

 
633,527

 Deferred tax liabilities
8,590

 
—

 
8,590

 Other non-current liabilities
34,455

 
—

 
34,455

 TOTAL LIABILITIES
905,115

 
(1,495
)
 
903,620

 
 
 
 
 
 
 Preferred stock
—

 
—

 
—

 Common stock
10

 
—

 
10

 Treasury stock
(30,659
)
 
—

 
(30,659
)
 Additional paid-in capital
809,369

 
—

 
809,369

 Subscriptions receivable
(591
)
 
—

 
(591
)
Prior year accumulated deficit
(773,791
)
 
933

 
(772,858
)
Current year retained deficit
(86,435
)
 
2,242

 
(84,193
)
 Accumulated other comprehensive loss
(221
)
 
—

 
(221
)
 TOTAL STOCKHOLDERS' DEFICIT
(82,318
)
 
3,175

 
(79,143
)
 TOTAL LIABILTIES & STOCKHOLDERS' DEFICIT
$
822,797

 
1,680

 
$
824,477



The following table presents the effect of the adoption of ASU 2014-09 on our condensed consolidated statements of operations for the three months ended June 30, 2018 (in thousands, except per share amounts):

 
Three Months Ended June 30, 2018
 
Without ASC 606 Adoption
 
Effect of change Increase/ (Decrease)
 
As Reported
Revenue:
 
 
 
 
 
Licensing and services
$
156,123

 
305

 
$
156,428

Equipment
9,534

 
—

 
9,534

Total revenue
165,657

 
305

 
165,962

Cost of Sales
 
 
 
 
 
Cost of sales:
 
 
 
 
 
Licensing and services
122,720

 
(416
)
 
122,304

Equipment
4,405

 
22

 
4,427

Total cost of sales
127,125

 
(394
)
 
126,731

Gross Margin
38,532

 
699

 
39,231

Operating expenses:
 
 
 
 
 
Sales and marketing
10,840

 
37

 
10,877

Product development
11,494

 
(1,622
)
 
9,872

General and administrative
29,799

 
—

 
29,799

Provision for legal settlements
(141
)
 
—

 
(141
)
Amortization of intangible assets
10,357

 
—

 
10,357

Total operating expenses
62,349

 
(1,585
)
 
60,764

Loss from operations
(23,817
)
 
2,284

 
(21,533
)
Other income (expense):
 
 


 
 
Interest expense, net
(19,755
)
 
—

 
(19,755
)
Income from equity method investments
428

 
—

 
428

Change in fair value of derivatives
(655
)
 
—

 
(655
)
Other expense, net
(673
)
 
—

 
(673
)
Loss before income taxes
(44,472
)
 
2,284

 
(42,188
)
Income tax expense
3,722

 
—

 
3,722

Net loss
$
(48,194
)
 
2,284

 
$
(45,910
)
 
 
 
 
 
 
Net loss per share – basic and diluted
(0.53
)
 
 
 
(0.50
)
Weighted average shares outstanding – basic and diluted
$
91,057

 
 
 
$
91,057


The following table presents the effect of the adoption of ASU 2014-09 on our condensed consolidated statements of operations for the six months ended June 30, 2018 (in thousands, except per share amounts):

 
Six Months Ended June 30, 2018
 
Without ASC 606 Adoption
 
Effect of change Increase/ (Decrease)
 
As Reported
Revenue:
 
 
 
 
 
Licensing and services
$
303,306

 
(352
)
 
$
302,954

Equipment
19,505

 
—

 
19,505

Total revenue
322,811

 
(352
)
 
322,459

Cost of Sales
 
 


 
 
Cost of sales:
 
 


 
 
Licensing and services
235,653

 
(858
)
 
234,795

Equipment
10,371

 
44

 
10,415

Total cost of sales
246,024

 
(814
)
 
245,210

Gross Margin
76,787

 
462

 
77,249

Operating expenses:
 
 


 
 
Sales and marketing
20,477

 
15

 
20,492

Product development
20,001

 
(1,795
)
 
18,206

General and administrative
68,235

 
—

 
68,235

Provision for legal settlements
375

 
—

 
375

Amortization of intangible assets
20,920

 
—

 
20,920

Total operating expenses
130,008

 
(1,780
)
 
128,228

Loss from operations
(53,221
)
 
2,242

 
(50,979
)
Other income (expense):
 
 


 
 
Interest expense, net
(35,352
)
 
—

 
(35,352
)
Income from equity method investments
1,589

 
—

 
1,589

Change in fair value of derivatives
(91
)
 
—

 
(91
)
Other expense, net
(347
)
 
—

 
(347
)
Loss before income taxes
(87,422
)
 
2,242

 
(85,180
)
Income tax benefit
(987
)
 
—

 
(987
)
Net loss
$
(86,435
)
 
2,242

 
$
(84,193
)
 
 
 
 
 
 
Net loss per share – basic and diluted
$
(0.95
)
 
 
 
$
(0.93
)
Weighted average shares outstanding – basic and diluted
90,925

 
 
 
90,925

Schedule of Disaggregation of Revenue
The following table represents a disaggregation of our revenue from contracts with customers for the three and six months ended June 30, 2018 and 2017 (in thousands):

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Revenue:
 
 
 
 
 
 
 
Media & Content
 
 
 
 
 
 
 
Licensing & Services
$
83,455

 
$
74,566

 
$
158,369

 
$
150,945

Total Media & Content
83,455

 
74,566

 
158,369

 
150,945

 
 
 
 
 
 
 
 
Connectivity
 
 
 
 
 
 
 
Aviation Services
$
29,423

 
$
29,439

 
$
58,749

 
$
57,634

Aviation Equipment
6,712

 
7,154

 
14,310

 
13,718

Maritime & Land Services
43,550

 
42,143

 
85,836

 
81,211

Maritime & Land Equipment
2,822

 
2,440

 
5,195

 
4,826

Total Connectivity
82,507

 
81,176

 
164,090

 
157,389

 
 
 
 
 
 
 
 
Total revenue
$
165,962

 
155,742

 
$
322,459

 
$
308,334

Schedule of Contract Liabilities
The following table summarizes the significant changes in the contract liabilities balances during the period to June 30, 2018 (in thousands);

 
 
 
 
Contract Liabilities
Balance as of December 31, 2017
 
$
7,587

Adjustments as a result of cumulative catch-up adjustment
 
(118
)
Revenue recognized that was included in the contract liability balance at the beginning of the period
 
(5,535
)
Increase due to cash received, excluding amounts recognized as revenue during the period
 
7,627

Balance as of June 30, 2018
 
$
9,561

 
 
 
Deferred revenue, current
 
$
8,472

Deferred revenue, non-current
 
1,089

 
 
$
9,561

Schedule of Accounts Receivable and Bad Debts
Accounts receivable consist of the following (in thousands):

 
June 30,
 
December 31,
 
2018
 
2017
Accounts receivable, gross
$
107,570

 
$
122,225

Less: Allowance for doubtful accounts
(4,155
)
 
(8,680
)
Accounts receivable, net
$
103,415

 
$
113,545


Movements in the balance for bad debt reserve and sales allowance for the six months ended June 30, 2018 and 2017 are as follows (in thousands):
 
Six Months Ended June 30, 2018
 
2018
 
2017
Beginning balance
$
8,680

 
$
10,091

(Recovery) additions charged to statements of operations
(802
)
 
2,372

Less: Bad debt write offs
(3,723
)
 
1,858

Ending balance
$
4,155

 
$
14,321

Schedule of Capitalized Contract Cost Activity
The following table summarizes the significant changes in the contract assets balances during the period ended June 30, 2018 (in thousands);

 
Contract Assets
 
Costs to Obtain
 
Costs to Fulfill
 
Total
Balance as of December 31, 2017
$
—

 
$
—

 
$
—

Increases as a result of cumulative catch-up adjustment
120

 
810

 
930

Capitalization during period
—

 
2,448

 
2,448

Amortization
(15
)
 
(44
)
 
(59
)
Balance as of June 30, 2018
$
105

 
$
3,214

 
$
3,319