Business
Gogo Announces Second Quarter 2020 Financial Results
CHICAGO, Aug. 10, 2020 /PRNewswire/ -- Gogo (NASDAQ: GOGO), the leading global provider of broadband connectivity products and services for aviation, today
About this update from Gogo Inc.
[{"type":"text","content":"CHICAGO, Aug. 10, 2020 /PRNewswire/ -- Gogo (NASDAQ: GOGO), the leading global provider of broadband connectivity products and services for aviation, today announced its financial results for the quarter ended June 30, 2020.\n\n \n \n \n \n \n \n\n \nQ2 2020 Highlights\nConsolidated revenue of $96.6 million; Net loss of $86.0 million; Adjusted EBITDA(1) of negative $15.9 million. Combined engineering, design and development, sales and marketing and general and administrative expenses declined 27% from Q1 2020 and 35% from Q2 2019 reflecting aggressive cost control measures. BA Reportable Segment Profit of $27.2 million with nearly 50% segment profit margin. Cash and cash equivalents were $156.3 million as of June 30, 2020. This reflects $53 million of interest payments made in the second quarter and compares with total cash and cash equivalents of $214.2 million as of March 31, 2020. The Company achieved break-even unlevered Free Cash Flow for the quarter. The Company has retained investment bankers and is in a process to sell its CA division.Continuing Actions in Response to COVID-19 Related Decline in Air Traffic\nA recently announced reduction in force of 143 full-time positions predominately in the Commercial Aviation business, effective August 14, 2020. This follows our four-month furlough of over 50% of the workforce, or more than 600 employees. Ongoing compensation reductions for nearly all personnel not impacted by the furlough, including 30% for the CEO and Board of Directors and 20% for the executive leadership team. Continuing progress in negotiations with suppliers and customers to improve contract terms, delay aircraft equipment installations and defer capital equipment purchases. Continuing implementation of cost reduction initiatives which are expected to generate savings of more than $340 million through 2021, exceeding the high end of the previous forecast.Second Quarter 2020 Consolidated Financial Results\nConsolidated revenue of $96.6 million declined by 55% from Q2 2019 due to the impact of COVID-19 on demand for both domestic and international air travel. Service revenue of $74.3 million declined by 57% from Q2 2019, driven primarily by declines in CA-NA and CA-ROW service revenue and, to a lesser extent, BA service revenue. Equipment revenue of $22.4 million declined by 44% from Q2 2019, driven by reduced s...