Gogo Inc. · NASDAQ:GOGO
Gogo — Shareholder Meeting (April 2020)
17 slides from Gogo's shareholder meeting presentation, Apr 29, 2020
Slide 1: Gogo 2020 Annual Stockholders' Meeting
Gogo 2020 Annual Stockholders’ Meeting April 29th, 2020 Exhibit 99.1
Slide 2: Forward-looking statements
This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are based on management’s beliefs and assumptions and on information currently available to management. Most forward-loo
Slide 3: CEO Comments – Oakleigh Thorne
Gogo Annual Stockholders’ Meeting CEO Comments Oakleigh Thorne April 29th, 2020
Slide 4: Gogo and COVID-19
01 Gogo and COVID-19
Slide 5: COVID-19: Unprecedented impact on commercial aviation
COVID-19 Unprecedented impact on commercial aviation Impact | SELECTED AIRLINE IMPACTS Delta burning $80MM/day Airlines raising billions from government, debt and equity (United raising ~$1bn public equity) Virgin Australia entered administration GLOBAL INDUSTRY IMPACTS Passenger traffic down ~95% A
Slide 6: Expect CA sales to be down 60-70% in April
Expect CA sales to be down 60-70% in April BA strong but seeing some impact: Account suspensions up in April New activations down significantly in April Prior to cost reductions, Gogo CA is losing $1M a day Government aid may be on the way, but it is still uncertain Our business has been significant
Slide 7: Work from home
Work from home Every country in which we operate has issued WFH orders >1000 employees working remotely: Multiple tools employed…Skype, MS Teams, Slack, etc. Communicating and coordinating well So, what is Gogo doing about this? Skeleton crews in place for certain location-specific activities Employ
Slide 8: Ensuring adequate liquidity
To ensure adequate liquidity over the medium term To continue paying our interest payments, and To maintain the franchise value of our two businesses So, what is Gogo doing about this? We start with more than $200M in the bank Next, we need to protect our business financially…Gogo has set the follow
Slide 9: 16 Levers to manage costs
Developed (and constantly refining) best- to worst-case revenue scenarios based on depth and duration of Corona-Crisis “16 Levers” to manage costs… Multiple levels of cost reduction developed for each “Lever” which are tied to revenue projections from the scenario plans. Non-personnel levers include
Slide 10: Potential assistance under the CARES Act
There are two potential opportunities for Gogo to receive assistance under the CARES Act $32b in short-term “payroll protection grants” for air carriers and contractors - we applied for early action on April 3rd $29b in loans and loan guarantees for air carriers, including Part 145 repair stations l
Slide 11: A Look Back at 2019
02 A Look Back at 2019
Slide 12: What got done in 2019
Successfully refinanced $162m convertible stub and $690m senior secured notes Pushed 80% of maturities to 2024 IBP initiatives achieved strong results on quality and cost ZERO de-icing incidents Adjusted EBITDA(1) improved 104% to $146m from $71m in 2018; net loss improved to -$146m from -$162m in 2
Slide 13: A Look Past COVID-19
03 A Look Past COVID-19
Slide 14: Gogo Focus Post-COVID-19: Strategic Imperatives
Gogo Focus Post-COVID-19… Execute Delta “FREE” with Excellence Deliver Gogo 5G in 2021 Take advantage of advances in satellite technology – NGSO, ESA, etc. Continue drive to positive free cash flow— Return to revenue growth Reduce airline subsidies Strategic Imperative Take advantage of consolidatio
Slide 15: Gogo has two valuable businesses
Gogo Focus Post-COVID-19 Gogo has two valuable businesses… Business Aviation – Attractive industry structure – low customer concentration Strong market share – leading product at attractive price Recurring revenue model, strong cash flow Investing to strengthen strategic and market position Commerci
Slide 16: Non-GAAP Financial Measures: Adjusted EBITDA and Free Cash Flow Reconciliations
Non-GAAP Financial Measures-GAAP Financial Adjusted EBITDA and Free Cash Flow Reconciliations Gogo Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Measures (in thousands, except per share amounts) (unaudited) For the Years Ended December 31, 2019 2018 Adjusted EBITDA: Net loss attributable
Slide 17: Thank you
Thank you