Business
Gogo Announces Third Quarter 2020 Financial Results
Sale of Commercial Aviation on Track to Close Before the End of First Quarter 2021 CHICAGO, Nov. 9, 2020 /PRNewswire/ -- Gogo (NASDAQ: GOGO), the leading
About this update from Gogo Inc.
[{"type":"text","content":"Sale of Commercial Aviation on Track to Close Before the End of First Quarter 2021\n\n\n\n CHICAGO, Nov. 9, 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 September 30, 2020.\n\n \n Q3 2020 Highlights of Continuing OperationsCommercial Aviation (CA) now presented as Discontinued Operations\nBA results improved sequentially, reflecting continuing industry recovery from impact of COVID-19. Total revenue of $66.5 million; Net loss of $8.9 million; Adjusted EBITDA(1) of $30.2 million. ATG aircraft online reached 5,577 with average monthly service revenue of $2,996, down 2% and 6%, respectively, from their pre-COVID-19 quarterly peaks. Cash and cash equivalents were $117.5 million as of September 30, 2020 compared to total cash of $156.3 million as of June 30, 2020. On November 6, 2020, Gogo entered into an agreement to issue $50 million of its 9.875% Senior Secured Notes due 2024 to provide buffer liquidity. The sale of Commercial Aviation to Intelsat (the \"Transaction\") remains on track to close before the end of the first quarter 2021. Gogo has cleared the Hart-Scott-Rodino antitrust process and received all foreign antitrust approvals, with FCC and CFIUS clearance and one foreign telecommunications approval still required. Gogo has more than $800 million in federal tax NOLs and interest expense carryforwards which will reduce income tax expense in the future.Third Quarter 2020 Business Aviation Financial Results: Continuing Operations\nTotal revenue decreased to $66.5 million, down 18% from Q3 2019, driven by declines in both service and equipment revenue caused by the negative impact of COVID-19. However, total revenue grew 22% sequentially from Q2 2020, driven by a 21% increase in service revenue and a 25% increase in equipment revenue. Service revenue decreased to $53.3 million, down 4% from Q3 2019, resulting primarily from a 3% decrease in average monthly service revenue per ATG unit online. Service revenue increased 21% sequentially as ATG aircraft online (AOL) and average monthly service revenue increased 3% and 17%, respectively. Equipment revenue decreased to $13.2 million, down 49% from Q3 2019, primarily due to lower unit shipments. Equipment revenue increased 25% sequential...