x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
(Nasdaq Global Select Market) |
x | Accelerated Filer | ¨ | |||||||||||||||
Non-Accelerated Filer | ¨ | Smaller Reporting Company | ¨ | ||||||||||||||
Emerging Growth Company | ¨ |
Item No. | Page | |||||||||||||
ITEM 2. | ||||||||||||||
ITEM 3. | ||||||||||||||
ITEM 4. | ||||||||||||||
ITEM 1. | ||||||||||||||
ITEM 1A. | ||||||||||||||
ITEM 2. | ||||||||||||||
ITEM 3. | ||||||||||||||
ITEM 4. | ||||||||||||||
ITEM 5. | ||||||||||||||
ITEM 6. | ||||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Inventory | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Other assets | |||||||||||
Intangible assets, net | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Short-term secured debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Deferred revenue | |||||||||||
Total current liabilities | |||||||||||
Long-term secured debt, net | |||||||||||
Deferred income tax liabilities, net | |||||||||||
Deferred revenue, net of current portion | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $0.001 par value, 300,000 shares authorized, 128,031 and 131,342 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss), net of tax | ( | ||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Revenue: | ||||||||||||||
Services | $ | $ | ||||||||||||
Subscriber equipment | ||||||||||||||
Engineering and support services | ||||||||||||||
Total revenue | ||||||||||||||
Operating expenses: | ||||||||||||||
Cost of services (exclusive of depreciation and amortization) | ||||||||||||||
Cost of subscriber equipment | ||||||||||||||
Research and development | ||||||||||||||
Selling, general and administrative | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Total operating expenses | ||||||||||||||
Operating income | ||||||||||||||
Other expense, net: | ||||||||||||||
Interest expense, net | ( | ( | ||||||||||||
Other expense, net | ( | ( | ||||||||||||
Total other expense, net | ( | ( | ||||||||||||
Income (loss) before income taxes | ( | |||||||||||||
Income tax benefit (expense) | ( | |||||||||||||
Net income (loss) | $ | $ | ( | |||||||||||
Weighted average shares outstanding - basic | ||||||||||||||
Weighted average shares outstanding - diluted | ||||||||||||||
Net income (loss) attributable to common stockholders per share - basic and diluted | $ | $ | ( | |||||||||||
Comprehensive income (loss): | ||||||||||||||
Net income (loss) | $ | $ | ( | |||||||||||
Foreign currency translation adjustments | ( | |||||||||||||
Comprehensive income (loss) | $ | $ | ( |
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Stockholders' Equity | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at beginning of period | $ | $ | $ | ( | $ | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised and awards vested | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock withheld to cover employee taxes | ( | — | ( | — | — | ( | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases and retirements of common stock | ( | ( | ( | — | ( | ( | ( | ( | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative translation adjustments | — | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on cash flow hedges, net of tax | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at end of period | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income (loss) | $ | $ | ( | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||
Deferred income taxes | ( | |||||||||||||
Depreciation and amortization | ||||||||||||||
Stock-based compensation (net of amounts capitalized) | ||||||||||||||
Amortization of deferred financing fees | ||||||||||||||
All other items, net | ( | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | ( | |||||||||||||
Inventory | ||||||||||||||
Prepaid expenses and other current assets | ( | ( | ||||||||||||
Other assets | ||||||||||||||
Accounts payable | ( | |||||||||||||
Accrued expenses and other current liabilities | ( | ( | ||||||||||||
Deferred revenue | ( | |||||||||||||
Other long-term liabilities | ( | ( | ||||||||||||
Net cash provided by operating activities | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||
Capital expenditures | ( | ( | ||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Payments on the Term Loan | ( | ( | ||||||||||||
Repurchases of common stock | ( | ( | ||||||||||||
Proceeds from exercise of stock options | ||||||||||||||
Tax payment upon settlement of stock awards | ( | ( | ||||||||||||
Net cash used in financing activities | ( | ( | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | ( | |||||||||||||
Net decrease in cash and cash equivalents, and restricted cash | ( | ( | ||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | ||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | $ | ||||||||||||
Supplemental cash flow information: | ||||||||||||||
Interest paid, net of amounts capitalized | $ | $ | ||||||||||||
Income taxes paid, net | $ | $ | ||||||||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||||
Property and equipment received but not paid | $ | $ | ||||||||||||
Capitalized amortization of deferred financing costs | $ | $ | ||||||||||||
Capitalized stock-based compensation | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(In thousands) | |||||||||||
Finished goods | $ | $ | |||||||||
Raw materials | |||||||||||
Inventory valuation reserve | ( | ( | |||||||||
Total | $ | $ |
March 31, 2022 | December 31, 2021 | Recurring Fair Value Measurement | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Cash | $ | $ | ||||||||||||||||||
Money market funds | Level 2 | |||||||||||||||||||
Total cash and cash equivalents | $ | $ |
Year Ending December 31, | Amount | |||||||
(In thousands) | ||||||||
2022 | $ | |||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
Thereafter | ||||||||
Total lease income | $ |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(In thousands) | ||||||||||||||
Total interest incurred | $ | $ | ||||||||||||
Amortization of deferred financing fees | $ | $ | ||||||||||||
Capitalized interest | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(In thousands) | ||||||||||||||
Unrealized gain, net of tax | $ | $ | ||||||||||||
Tax expense |
Shares | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||||||||||||||||
(In thousands, except years and per share data) | ||||||||||||||||||||||||||
Options outstanding at December 31, 2021 | $ | $ | ||||||||||||||||||||||||
Exercised | ( | $ | ||||||||||||||||||||||||
Forfeited | ( | |||||||||||||||||||||||||
Options outstanding at March 31, 2022 | $ | $ | ||||||||||||||||||||||||
Options exercisable at March 31, 2022 | $ | $ | ||||||||||||||||||||||||
Options exercisable and expected to vest at March 31, 2022 | $ | $ |
Shares | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | |||||||||||||||||||||||
(In thousands, except years and per share data) | ||||||||||||||||||||||||||
Options outstanding at December 31, 2020 | $ | $ | ||||||||||||||||||||||||
Exercised | ( | $ | ||||||||||||||||||||||||
Forfeited | ( | |||||||||||||||||||||||||
Options outstanding at March 31, 2021 | $ | $ | ||||||||||||||||||||||||
Options exercisable at March 31, 2021 | $ | $ | ||||||||||||||||||||||||
Options exercisable and expected to vest at March 31, 2021 | $ | $ |
Shares Underlying RSUs | Weighted- Average Grant Date Fair Value Per RSU | |||||||||||||
(In thousands) | ||||||||||||||
Outstanding at December 31, 2021 | $ | |||||||||||||
Granted | ||||||||||||||
Forfeited | ( | |||||||||||||
Released | ( | |||||||||||||
Outstanding at March 31, 2022 | $ | |||||||||||||
Vested and unreleased at March 31, 2022 (1) |
RSUs | Weighted- Average Grant Date Fair Value Per RSU | |||||||||||||
(In thousands) | ||||||||||||||
Outstanding at December 31, 2020 | $ | |||||||||||||
Granted | ||||||||||||||
Forfeited | ( | |||||||||||||
Released | ( | |||||||||||||
Outstanding at March 31, 2021 | $ | |||||||||||||
Vested and unreleased at March 31, 2021 (1) |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(In thousands) | ||||||||||||||
Commercial services revenue: | ||||||||||||||
Voice and data | $ | $ | ||||||||||||
IoT data | ||||||||||||||
Broadband | ||||||||||||||
Hosted payload and other data | ||||||||||||||
Total commercial services revenue | ||||||||||||||
Government services revenue | ||||||||||||||
Total services revenue | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(In thousands) | ||||||||||||||
Commercial | $ | $ | ||||||||||||
Government | ||||||||||||||
Total engineering and support services revenue | $ | $ |
March 31, 2022 | December 31, 2021 | |||||||||||||
(In thousands) | ||||||||||||||
Contract Assets: | ||||||||||||||
Commissions | $ | $ | ||||||||||||
Other contract costs | $ | $ | ||||||||||||
Unbilled receivables | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||
Numerator: | ||||||||||||||
Net income (loss) - basic and diluted | $ | $ | ( | |||||||||||
Denominator: | ||||||||||||||
Weighted average common shares - basic | ||||||||||||||
Dilutive effect of stock options | — | |||||||||||||
Dilutive effect of RSUs | — | |||||||||||||
Weighted average common shares - diluted | ||||||||||||||
Net income (loss) per share - basic and diluted | $ | $ | ( | |||||||||||
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
(In thousands) | ||||||||||||||
Performance-based RSUs | ||||||||||||||
Service-based RSUs | ||||||||||||||
Stock options |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
Three Months Ended March 31, | Change | |||||||||||||||||||||||||||||||||||||
2022 | % of Total Revenue | 2021 | % of Total Revenue | |||||||||||||||||||||||||||||||||||
($ in thousands) | Dollars | Percent | ||||||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||
Services | $ | 126,109 | 75 | % | $ | 116,152 | 80 | % | $ | 9,957 | 9 | % | ||||||||||||||||||||||||||
Subscriber equipment | 33,744 | 20 | % | 23,953 | 16 | % | 9,791 | 41 | % | |||||||||||||||||||||||||||||
Engineering and support services | 8,366 | 5 | % | 6,430 | 4 | % | 1,936 | 30 | % | |||||||||||||||||||||||||||||
Total revenue | 168,219 | 100 | % | 146,535 | 100 | % | 21,684 | 15 | % | |||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Cost of services (exclusive of depreciation | ||||||||||||||||||||||||||||||||||||||
and amortization) | 24,098 | 14 | % | 23,207 | 16 | % | 891 | 4 | % | |||||||||||||||||||||||||||||
Cost of subscriber equipment | 20,505 | 12 | % | 13,028 | 9 | % | 7,477 | 57 | % | |||||||||||||||||||||||||||||
Research and development | 2,619 | 2 | % | 2,717 | 2 | % | (98) | (4) | % | |||||||||||||||||||||||||||||
Selling, general and administrative | 26,103 | 16 | % | 22,657 | 15 | % | 3,446 | 15 | % | |||||||||||||||||||||||||||||
Depreciation and amortization | 75,661 | 45 | % | 75,910 | 52 | % | (249) | — | % | |||||||||||||||||||||||||||||
Total operating expenses | 148,986 | 89 | % | 137,519 | 94 | % | 11,467 | 8 | % | |||||||||||||||||||||||||||||
Operating income | 19,233 | 11 | % | 9,016 | 6 | % | 10,217 | 113 | % | |||||||||||||||||||||||||||||
Other expense: | ||||||||||||||||||||||||||||||||||||||
Interest expense, net | (14,577) | (8) | % | (22,769) | (16) | % | 8,192 | (36) | % | |||||||||||||||||||||||||||||
Other expense, net | (8) | — | % | (28) | — | % | 20 | (71) | % | |||||||||||||||||||||||||||||
Total other expense, net | (14,585) | (8) | % | (22,797) | (16) | % | 8,212 | (36) | % | |||||||||||||||||||||||||||||
Income (loss) before income taxes | 4,648 | 3 | % | (13,781) | (10) | % | 18,429 | (134) | % | |||||||||||||||||||||||||||||
Income tax benefit (expense) | (1,824) | (1) | % | 8,598 | 6 | % | (10,422) | (121) | % | |||||||||||||||||||||||||||||
Net income (loss) | $ | 2,824 | 2 | % | $ | (5,183) | (4) | % | $ | 8,007 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Billable Subscribers (1) | ARPU (2) | Revenue | Billable Subscribers (1) | ARPU (2) | Revenue | Billable Subscribers | ARPU | ||||||||||||||||||||||||||||||||||||||||||||||||
(Revenue in millions and subscribers in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial services: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Voice and data | $ | 44.9 | 378 | $ | 40 | $ | 41.4 | 350 | $ | 39 | $ | 3.5 | 28 | $ | 1 | |||||||||||||||||||||||||||||||||||||||||
IoT data | 28.4 | 1,243 | 7.78 | 24.8 | 1,003 | 8.39 | 3.6 | 240 | (0.61) | |||||||||||||||||||||||||||||||||||||||||||||||
Broadband (3) | 11.5 | 13.5 | 288 | 9.4 | 12 | 265 | 2.1 | 1.5 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||
Hosted payload and other data | 14.8 | N/A | 14.8 | N/A | — | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial services | $ | 99.6 | 1,635 | $ | 90.4 | 1,365 | $ | 9.2 | 270 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||||||||||||||||||||
Revenue | Billable Subscribers (1) | Revenue | Billable Subscribers (1) | Revenue | Billable Subscribers | |||||||||||||||||||||||||||||||||
(Revenue in millions and subscribers in thousands) | ||||||||||||||||||||||||||||||||||||||
Government services | $ | 26.5 | 146 | $ | 25.8 | 153 | $ | 0.7 | (7) |
Three Months Ended March 31, | ||||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||
(In millions) | ||||||||||||||||||||
Commercial engineering and support services | $ | 1.1 | $ | 0.7 | $ | 0.4 | ||||||||||||||
Government engineering and support services | 7.3 | 5.7 | 1.6 | |||||||||||||||||
Total engineering and support services | $ | 8.4 | $ | 6.4 | $ | 2.0 |
Three Months Ended March 31, | ||||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash provided by operating activities | $ | 65,770 | $ | 50,766 | $ | 15,004 | ||||||||||||||
Cash used in investing activities | $ | (13,568) | $ | (9,417) | $ | (4,151) | ||||||||||||||
Cash used in financing activities | $ | (141,326) | $ | (63,264) | $ | (78,062) |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
ITEM 4. | CONTROLS AND PROCEDURES. |
Period | (a) Total number of shares purchased | (b) Average price paid per share | (c) Total number of shares purchased as part of publicly announced plans or programs | (d) Maximum dollar value) of shares that may yet be purchased under the plans or programs | ||||||||||||||||||||||
January 1-31 | 1,222,196 | $35.81 | 1,222,196 | $92.8 million | ||||||||||||||||||||||
February 1-28 | 2,366,125 | 34.37 | 2,366,125 | $11.5 million | ||||||||||||||||||||||
March 1-31 | 237,392 | 38.05 | 237,392 | $302.5 million | ||||||||||||||||||||||
Total | 3,825,713 | $35.06 | 3,825,713 | — |
Exhibit | Description | |||||||
10.1* | ||||||||
10.2* | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1** | ||||||||
101 | The following financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, filed with the Securities and Exchange Commission on April 19, 2022, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at March 31, 2022 and December 31, 2021; (ii) Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2022 and 2021; (iii) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2022 and 2021; (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021; and (iv) Notes to Condensed Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | Denotes management contract or compensatory plan or arrangement. | ||||
** | These certifications are being furnished solely to accompany this quarterly report pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing. |
IRIDIUM COMMUNICATIONS INC. | ||||||||
By: | /s/ Thomas J. Fitzpatrick | |||||||
Thomas J. Fitzpatrick | ||||||||
Chief Financial Officer (as duly authorized officer and as principal financial officer of the registrant) |
1. | I have reviewed this quarterly report on Form 10-Q of Iridium Communications Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: April 19, 2022 | /s/ Matthew J. Desch | ||||
Matthew J. Desch | |||||
Chief Executive Officer (principal executive officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Iridium Communications Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: April 19, 2022 | /s/ Thomas J. Fitzpatrick | ||||
Thomas J. Fitzpatrick | |||||
Chief Financial Officer (principal financial officer) |
1. | The Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, to which this Certification is attached as Exhibit 32.1 (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition of the Company at the end of the period covered by the Quarterly Report and results of operations of the Company for the periods covered in the financial statements in the Quarterly Report. |
/s/ Matthew J. Desch | /s/ Thomas J. Fitzpatrick | |||||||
Matthew J. Desch | Thomas J. Fitzpatrick | |||||||
Chief Executive Officer | Chief Financial Officer |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
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Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 128,031,000 | 131,342,000 |
Common stock, shares outstanding (in shares) | 128,031,000 | 131,342,000 |
Basis of Presentation and Principles of Consolidation |
3 Months Ended |
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Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Iridium Communications Inc. (the “Company”) has prepared its condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The Company's operations are primarily conducted through, and its operating assets are owned by, its principal operating subsidiary, Iridium Satellite LLC, Iridium Satellite's immediate parent, Iridium Holdings, LLC, and their respective subsidiaries. The accompanying condensed consolidated financial statements include the accounts of (i) the Company, (ii) its wholly owned subsidiaries, and (iii) all less than wholly owned subsidiaries that the Company controls. All material intercompany transactions and balances have been eliminated. In the opinion of management, the condensed consolidated financial statements reflect all normal recurring adjustments that the Company considers necessary for the fair presentation of its results of operations and cash flows for the interim periods covered, and of the financial position of the Company at the date of the interim condensed consolidated balance sheet. The operating results for interim periods are not necessarily indicative of the operating results for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the U.S. Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2021, as filed with the SEC on February 17, 2022.
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Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies | Significant Accounting Policies Adopted and Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The guidance provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. ASU 2020-04 was further amended in January 2021 when the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which clarified the applicability of certain provisions. Both ASU 2020-04 and ASU 2021-01 are currently effective prospectively for all entities through December 31, 2022, when the reference rate replacement activity is expected to have been completed. The guidance in ASU 2020-04 and ASU 2021-01 is optional and may be elected over time as reference rate reform activities occur. During 2021, the Company elected to apply the optional expedient for hedge accounting specifically to the interest rate cap agreement (the "Cap") executed in July 2021 (see Note 6). This allowed the Company to assume that the index upon which future interest payments on the hedged portion of the Term Loan (see Note 5) will be based matches the index on the Cap. Adoption of this practical expedient had no impact on the Company's condensed consolidated financial statements upon adoption. The Company has not yet adopted any other expedients and will continue to evaluate the impact this standard may have on its consolidated financial statements. Fair Value Measurements The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by management of the Company. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value. The fair value hierarchy consists of the following tiers: •Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; •Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying values of the following financial instruments approximated their fair values as of March 31, 2022 and December 31, 2021: (1) cash and cash equivalents, (2) prepaid expenses and other current assets, (3) accounts receivable, (4) accounts payable, and (5) accrued expenses and other current liabilities. Fair values approximate their carrying values because of their short-term nature. The Level 2 cash equivalents may include money market funds, commercial paper and short-term U.S. agency securities. The Company also classifies its derivative financial instruments as Level 2. The Company did not hold any Level 3 assets as of March 31, 2022 and December 31, 2021. The fair values of the Company’s Level 2 estimates are based upon certain market assumptions and information available to the Company. In determining fair value, the Company uses a market approach utilizing valuation models that incorporate observable inputs such as interest rates, bond yields and quoted prices for similar assets. Leases For new leases, the Company will determine if an arrangement is or contains a lease at inception. Leases are included as (1) right-of-use (“ROU”) assets within other assets, and (2) ROU liabilities within accrued expenses and other liabilities and are included within other long-term liabilities on the Company’s condensed consolidated balance sheets. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Certain leases contain variable contractual obligations as a result of future base rate escalations which are estimated based on observed trends and included within the measurement of present value. The Company’s leases do not provide an implicit rate. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU assets also include any lease payments made and exclude lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, such as teleport network facilities, the Company elected the practical expedient to combine lease and non-lease components as a single lease component. Taxes assessed on leases in which the Company is either a lessor or lessee are excluded from contract consideration and variable payments when measuring new lease contracts or remeasuring existing lease contracts. Inventory Inventory consists primarily of finished goods and raw materials from third-party manufacturers. The Company outsources manufacturing of subscriber equipment to a third-party manufacturer and purchases accessories from third-party suppliers. The Company’s cost of inventory includes an allocation of overhead, including payroll and payroll-related costs of employees directly involved in bringing inventory to its existing condition, and freight. Inventories are valued using the average cost method and are carried at the lower of cost or net realizable value. The Company has a manufacturing agreement with Benchmark Electronics Inc. (“Benchmark”) to manufacture most of its subscriber equipment. Pursuant to the agreement, the Company may be required to purchase excess materials at cost plus a contractual markup if the materials are not used in production within the periods specified in the agreement. Benchmark will then repurchase such materials from the Company at the same price paid by the Company, as required for the production of the subscriber equipment. The following table summarizes the Company's inventory balance:
Derivative Financial Instruments The Company uses derivatives (interest rate swap, swaption and cap) to manage its exposure to fluctuating interest rate risk on variable rate debt. Its derivatives are measured at fair value and are recorded on the condensed consolidated balance sheets within other current liabilities and other assets. When the Company’s derivatives are designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are recorded in accumulated other comprehensive income (loss) within the Company’s condensed consolidated balance sheets and subsequently recognized in earnings when the hedged items impact earnings. Any ineffective portion of a derivative's change in fair value will be recognized in earnings in the same period in which the hedged interest payments affect earnings. Within the condensed consolidated statements of operations and comprehensive income (loss), the gains and losses related to cash flow hedges are recognized within interest income (expense), net, as this is the same financial statement line item used for any gains or losses associated with the hedged items. Cash flows from hedging activities are included in operating activities within the Company’s condensed consolidated statements of cash flows, which is the same category as the item being hedged. See Note 6 for further information.
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Cash and Cash Equivalents, Restricted Cash and Marketable Securities |
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Cash and Cash Equivalents [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents, Restricted Cash and Marketable Securities | Cash and Cash Equivalents Cash and Cash Equivalents The following table presents the Company’s cash and cash equivalents balance:
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Leases |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessor, Operating Leases [Text Block] | Lessor Arrangements Operating leases in which the Company is a lessor consist primarily of hosting agreements with Aireon LLC (“Aireon”) (see Note 12) and L3Harris Technologies, Inc. (“L3Harris”) for space on the Company’s satellites. These agreements provide for a fee that will be recognized over the life of the satellites, currently estimated to be approximately 12.5 years. Lease income related to these agreements was $5.4 million for each of the three months ended March 31, 2022 and 2021. Lease income is recorded as hosted payload and other data service revenue within service revenue on the Company’s condensed consolidated statements of operations and comprehensive income (loss). Aireon has made payments to the Company pursuant to its hosting agreement, and the Company expects Aireon will continue to do so. L3Harris has prepaid all amounts owed to the Company pursuant to its hosting arrangement. The following table presents future income with respect to the Company’s operating leases in which it is the lessor existing at March 31, 2022, exclusive of the $5.4 million recognized during the three months ended March 31, 2022, by year and in the aggregate:
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Debt |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Term Loan and Revolving Facility In November 2019 and February 2020, pursuant to a loan agreement (as amended to date, the “Credit Agreement”), the Company entered into a term loan totaling $1,650.0 million in aggregate principal amount with Deutsche Bank AG (the “Term Loan”) and an accompanying $100.0 million revolving loan (the “Revolving Facility”). The Term Loan has been repriced and now bears interest at an annual rate of LIBOR plus 2.50%, with a 0.75% LIBOR floor. The maturity date remains unchanged in November 2026. The interest rate on the Revolving Facility remained unchanged at LIBOR plus 3.75%, with no LIBOR floor, and a maturity date in November 2024. Principal payments, which are payable quarterly and began on June 30, 2020, equal $16.5 million per annum (one percent of the full principal amount of the Term Loan), with the remaining principal due upon maturity. As of March 31, 2022 and December 31, 2021, the Company reported an aggregate of $1,617.0 million and $1,621.1 million in borrowings under the Term Loan, respectively. These amounts do not include $22.0 million and $23.1 million of net unamortized deferred financing costs as of March 31, 2022 and December 31, 2021, respectively. The net principal balance in borrowings in the accompanying condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 amounted to $1,595.0 million and $1,598.0 million, respectively. As of March 31, 2022 and December 31, 2021, based upon over-the-counter bid levels (Level 2 - market approach), the fair value of the borrowings under the Term Loan was $1,605.9 million and $1,622.1 million, respectively. The Company had not borrowed under the Revolving Facility as of March 31, 2022 and December 31, 2021. The Credit Agreement restricts the Company’s ability to incur liens, engage in mergers or asset sales, pay dividends, repay subordinated indebtedness, incur indebtedness, make investments and loans, and engage in other transactions as specified in the Credit Agreement. The Credit Agreement provides for specified exceptions, including baskets measured as a percentage of trailing twelve months of earnings before interest, taxes, depreciation and amortization (“EBITDA” as defined in the Credit Agreement) and unlimited exceptions based on achievement and maintenance of specified leverage ratios, for, among other things, incurring indebtedness and liens and making investments, restricted payments for dividends and share repurchases, and payments of subordinated indebtedness. The Credit Agreement also contains a mandatory prepayment sweep mechanism with respect to a portion of the Company’s excess cash flow (as defined in the Credit Agreement), which is phased out based on achievement and maintenance of specified leverage ratios. As of December 31, 2021, the Company was below the specified leverage ratio, and a mandatory prepayment sweep was therefore not required. The Credit Agreement contains no financial maintenance covenants with respect to the Term Loan. With respect to the Revolving Facility, the Credit Agreement requires the Company to maintain a consolidated first lien net leverage ratio (as defined in the Credit Agreement) of no greater than 6.25 to 1 if more than 35% of the Revolving Facility has been drawn. The Credit Agreement contains other customary representations and warranties, affirmative and negative covenants, and events of default. The Company was in compliance with all covenants as of March 31, 2022. Interest on Debt Total interest incurred includes amortization of deferred financing fees and capitalized interest. The following table presents the interest and amortization of deferred financing fees related to the Term Loan:
As of March 31, 2022 and December 31, 2021, accrued interest was $0.2 million and $0.1 million, respectively.
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments The Company is exposed to interest rate fluctuations related to its Term Loan. The Company has reduced its exposure to fluctuations in the cash flows associated with changes in the variable interest rate by entering into offsetting positions through the use of an interest rate cap contract which results in recognizing a maximum fixed interest rate for a portion of the Term Loan. This will reduce the negative impact of increases in the variable rate over the term of the derivative contracts. These contracts are not used for trading or other speculative purposes. Historically, the Company has not incurred, and does not expect to incur in the future, any losses as a result of counterparty default. Hedge effectiveness of interest rate swap and cap contracts is based on a long-haul hypothetical derivative methodology and includes all changes in value. The Company formally assesses, both at the hedge’s inception and on an ongoing quarterly basis, whether the designated derivative instruments are highly effective in offsetting changes in the cash flows of the hedged items. When the hedging instrument is sold, expires, is terminated, is exercised, no longer qualifies for hedge accounting, is de-designated, or is no longer probable, hedge accounting is discontinued prospectively. Interest Rate Swaps The Company previously entered into a long-term interest rate swap (“Swap”) to mitigate variability in forecasted interest payments on a portion of the Company’s borrowings under the Term Loan. The Swap expired in November 2021. Under the Swap, on the last business day of each month, the Company received variable interest payments based on one-month LIBOR from the counterparty. The Company paid a fixed rate of 1.565% per annum on the Swap. The Company also entered into an interest rate swaption agreement (“Swaption”), for which the Company paid a fixed annual rate of 0.50%. At inception, the Swap and Swaption (collectively, the "swap contracts") were designated as cash flow hedges for hedge accounting. The unrealized changes in market value were recorded in accumulated other comprehensive income (loss) and any remaining balance will be reclassified into earnings during the period in which the hedged transaction affects earnings. Due to the changes made to the Term Loan as a result of the July 2021 repricing, at that time the Company elected to de-designate the Swap as a cash flow hedge. Accordingly, as the related interest payments were still probable, the accumulated balance within other comprehensive income (loss) as of the de-designation date was amortized into earnings through the November 2021 expiration date. The Company sold the Swaption in May 2021 for $0.7 million. The Company continued to pay the fixed annual rate for the Swaption through the term of the Swaption, which expired in November 2021. Interest Rate Cap In July 2021, the Company entered into the Cap that began in December 2021, following the expiration of the Swap. The Company entered into the Cap in order to manage its exposure to interest rate movements on a portion of the Term Loan through the maturity of the Term Loan in November 2026. The Cap provides the Company with the right to receive payment if one-month LIBOR exceeds 1.5%. Beginning in December 2021, the Company pays a fixed monthly premium based on an annual rate of 0.31% for the Cap. The Cap carried a notional amount of $1,000.0 million as of March 31, 2022 and December 31, 2021. The Cap is designed to mirror the terms of the Term Loan and to offset the cash flows being hedged. The Company designated the Cap as a cash flow hedge of the variability of the LIBOR-based interest payments on the Term Loan. The effective portion of the Cap's change in fair value will be recorded in accumulated other comprehensive income (loss). Any ineffective portion of the Cap's change in fair value will be recorded in current earnings as interest expense. Fair Value of Derivative Instruments As of March 31, 2022 and December 31, 2021, the Company had an asset balance of $55.0 million and $19.7 million, respectively, for the fair value of the Cap and a liability balance of $13.6 million and $14.8 million, respectively, for the fair value of the Cap premium. Both the Cap and the Cap premium are recorded net within other assets. During the three months ended March 31, 2022 and 2021, the Company collectively incurred $0.8 million and $2.7 million, respectively, in net interest expense for the Swap, Swaption and Cap. Gains and losses resulting from fair value adjustments to the Cap are recorded within accumulated other comprehensive income (loss) within the Company’s condensed consolidated balance sheets and reclassified to interest expense on the dates that interest payments become due. Cash flows related to the derivative contracts are included in cash flows from operating activities on the condensed consolidated statements of cash flows. Over the next 12 months, the Company expects any gains or losses for cash flow hedges amortized from accumulated other comprehensive income (loss) into earnings to have an immaterial impact on the Company’s consolidated financial statements. The following table presents the amount of unrealized gain or loss and related tax impact associated with the derivative instruments that the Company recorded in its condensed consolidated statements of operations and comprehensive income (loss):
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Stock-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | 7. Stock-Based Compensation In May 2019, the Company’s stockholders approved the amendment and restatement of the Company’s 2015 Equity Incentive Plan (as so amended and restated, the “Amended 2015 Plan”). As of March 31, 2022, the remaining aggregate number of shares of the Company’s common stock available for future grants under the Amended 2015 Plan was 8,829,642. The Amended 2015 Plan provides for the grant of stock-based awards, including nonqualified stock options, incentive stock options, restricted stock, restricted stock units (“RSUs”), stock appreciation rights and other equity securities to employees, consultants and non-employee directors of the Company and its affiliated entities. The number of shares of common stock available for issuance under the Amended 2015 Plan is reduced by (i) one share for each share of common stock issued pursuant to an appreciation award, such as a stock option or stock appreciation right with an exercise or strike price of at least 100% of the fair market value of the underlying common stock on the date of grant, and (ii) 1.8 shares for each share of common stock issued pursuant to any stock award that is not an appreciation award, also known as a “full value award.” The Amended 2015 Plan allows the Company to utilize a broad array of equity incentives and performance cash incentives in order to secure and retain the services of its employees, directors and consultants, and to provide long-term incentives that align the interests of its employees, directors and consultants with the interests of the Company’s stockholders. The Company accounts for stock-based compensation at fair value. Stock Option Awards The stock option awards granted to employees generally (i) have a term of ten years, (ii) vest over four years with 25% vesting after the first year of service and the remainder vesting ratably on a quarterly basis thereafter, (iii) are contingent upon employment on the vesting date, and (iv) have an exercise price equal to the fair market value of the underlying shares at the date of grant. The fair value of stock options is determined at the grant date using the Black-Scholes option pricing model. The Company historically granted stock options to newly hired and promoted employees but now exclusively utilizes RSUs. The Company did not grant any stock options during the three months ended March 31, 2022 and 2021, respectively. Option Summary A summary of the activity of the Company's stock options is as follows:
Restricted Stock Units The RSUs granted to employees for service generally vest over four years, with 25% vesting on the first anniversary of the grant date and the remainder vesting ratably on a quarterly basis thereafter, subject to continued employment. Some RSUs granted to employees for performance vest upon the completion of defined performance goals, subject to continued employment. The RSUs granted to non-employee directors generally vest in full on the first anniversary of the grant date. The RSUs granted to non-employee consultants generally vest 50% on the first anniversary of the grant date, with the remaining 50% vesting quarterly thereafter through the second anniversary of the grant date. The Company’s RSUs are classified as equity awards because the RSUs will be settled in the Company’s common stock upon vesting. The fair value of the RSUs is determined at the grant date based on the closing price of the Company's common stock on the date of grant. The related compensation expense is recognized over the service period, or shorter periods based on the retirement eligibility of certain grantees, and is based on the grant date fair value of the Company’s common stock and the number of shares expected to vest. The fair value of the awards is not remeasured at the end of each reporting period. The RSUs do not carry voting rights until they are vested, and shares are issued upon settlement in accordance with the terms of the award. RSU Summary The following tables summarize the Company’s RSU activity:
(1) These RSUs were granted to the Company's board of directors as a part of their compensation for board and committee service, as detailed below, and had vested but had not yet settled, meaning that the underlying shares of common stock had not been issued and released pursuant to the terms of the applicable compensation program. Service-Based RSUs The majority of the annual compensation the Company provides to non-employee members of its board of directors is paid in the form of RSUs. In addition, some members of the Company’s board of directors elect to receive the remainder of their annual compensation, or a portion thereof, in the form of RSUs. An aggregate amount of approximately 54,000 and 35,000 service-based RSUs were granted to the Company’s non-employee directors as a result of these payments and elections during the three months ended March 31, 2022 and 2021, respectively, with an estimated grant date fair value of $2.1 million and $1.4 million, respectively. During the three months ended March 31, 2022 and 2021, the Company granted approximately 673,000 and 437,000 service-based RSUs, respectively, to its employees, with an estimated aggregate grant date fair value of $26.4 million and $18.3 million, respectively. During the three months ended March 31, 2022, the Company granted approximately 1,000 service-based RSUs to non-employee consultants, with an immaterial grant date fair value. No grants were made to non-employee consultants during the three months ended March 31, 2021. Performance-Based RSUs In March 2022 and 2021, the Company granted approximately 248,000 and 228,000 annual incentive, performance-based RSUs, respectively, to the Company’s executives and employees (the “Bonus RSUs”), with an estimated grant date fair value of $9.7 million and $9.5 million, respectively. Vesting of the Bonus RSUs is and was dependent upon the Company’s achievement of defined performance goals over the respective fiscal year. The Company records stock-based compensation expense related to performance-based RSUs when it is considered probable that the performance conditions will be met. Management believes it is probable that substantially all of the 2022 Bonus RSUs will vest. The level of achievement, if any, of performance goals will be determined by the compensation committee of the Company’s board of directors and, if such goals are achieved, the 2022 Bonus RSUs will vest, subject to continued employment, in March 2023. All of the 2021 Bonus RSUs vested in March 2022 upon the determination of the level of achievement of the performance goals.Additionally, in March 2022 and 2021, the Company granted approximately 167,000 and 110,000 long-term, performance-based RSUs, respectively, to the Company’s executives (the “Executive RSUs”). The estimated aggregate grant date fair value of the Executive RSUs for the 2022 and 2021 grants was $6.5 million and $4.6 million, respectively. Vesting of the Executive RSUs is dependent upon the Company’s achievement of defined performance goals over a two-year period. The vesting of Executive RSUs will ultimately range from 0% to 150% of the number of shares underlying the Executive RSUs granted based on the level of achievement of the performance goals. If the Company achieves the performance goals, 50% of the number of Executive RSUs earned based on performance will vest on the second anniversary of the grant date, and the remaining 50% will vest on the third anniversary of the grant date, in each case subject to the executive’s continued service as of the vesting date, which may be accelerated based on the retirement eligibility of certain grantees. During March 2022, approximately 50,000 shares underlying performance-based RSUs granted to the Company’s executives in 2020 were forfeited as a result of performance metrics not being fully achieved. During March 2021, the Company awarded approximately 3,000 additional shares related to performance-based RSUs granted in 2019 to the Company's executives for over-achievement of performance targets.
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Equity Transactions |
3 Months Ended |
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Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Equity Transactions | Equity Transactions Preferred Stock The Company is authorized to issue 2.0 million shares of preferred stock with a par value of $0.0001 per share. The Company previously issued 1.5 million shares of preferred stock, all of which have converted to common stock. The remaining 0.5 million authorized shares of preferred stock remain undesignated and unissued as of March 31, 2022 and December 31, 2021. As of March 31, 2022 and December 31, 2021, there were no outstanding shares of preferred stock. Share Repurchases and Retirement In February 2021, the Company implemented a stock repurchase program for up to $300.0 million of its common stock through December 31, 2022. In March 2022, the Company expanded the repurchase program to include up to an additional $300.0 million of its common stock through December 31, 2023. These time frames can be extended or shortened by the board of directors. Repurchases are made from time to time on the open market at prevailing prices or in negotiated transactions off the market. All shares are immediately retired upon repurchase in accordance with the board-approved policy. When treasury shares are retired, the Company’s policy is to allocate the excess of the repurchase price over the par value of shares acquired first, to additional paid-in capital, and then to retained earnings. The portion to be allocated to additional paid-in capital is calculated by applying a percentage, determined by dividing the number of shares to be retired by the number of shares outstanding, to the balance of additional paid-in capital as of the date of retirement. The Company repurchased and subsequently retired 3.8 million and 1.6 million shares of its common stock during the three months ended March 31, 2022 and 2021, respectively, for a total purchase price of $134.2 million and $59.2 million, respectively. As of March 31, 2022, $302.5 million remained available and authorized for repurchase under the stock repurchase program.
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Revenue | Revenue The following table summarizes the Company’s services revenue:
The following table summarizes the Company’s engineering and support services revenue:
Approximately 25% and 34% of the Company's accounts receivable balance at March 31, 2022 and December 31, 2021, respectively, was due from prime contracts or subcontracts with agencies of the U.S. government. The Company's contracts with customers generally do not contain performance obligations with terms in excess of one year. As such, the Company does not disclose details related to the value of performance obligations that are unsatisfied as of the end of the reporting period. The total value of any performance obligations that extend beyond one year is immaterial to the financial statements. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the condensed consolidated balance sheets. The Company bills amounts under its agreed-upon contractual terms at periodic intervals (for services), upon shipment (for equipment), or upon achievement of contractual milestones or as work progresses (for engineering and support services). Billing may occur subsequent to revenue recognition, resulting in unbilled accounts receivable (contract assets). The Company may also receive payments from customers before revenue is recognized, resulting in deferred revenue (contract liabilities). The Company recognized revenue that was previously recorded as deferred revenue in the amounts of $9.4 million and $11.6 million for the three months ended March 31, 2022 and 2021, respectively. The Company has also recorded costs of obtaining contracts expected to be recovered in prepaid expenses and other current assets (contract assets or commissions), that are not separately disclosed on the condensed consolidated balance sheets. The commissions are recognized over the estimated usage period. The following table presents contract assets not separately disclosed:
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Income Taxes |
3 Months Ended |
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Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income TaxesIncome before income taxes was $4.6 million for the three months ended March 31, 2022, while the income tax expense was $1.8 million. The effective tax rate was 39.2% which differed from the federal statutory rate of 21% primarily due to tax expense associated with U.S. state taxes, nondeductible executive compensation, and non-creditable foreign taxes, which was partially offset by U.S. tax credits and a discrete tax benefit associated with stock compensation. Loss before income taxes was $13.8 million for the three months ended March 31, 2021, while the income tax benefit was $8.6 million. The effective tax rate was 63.8% which differed from the federal statutory rate of 21% primarily due to the net impact of the Company's U.S. tax credits, benefits from U.S. state tax losses and a discrete tax benefit associated with the stock compensation tax deduction. These favorable impacts were partially offset by the impact of the limitation on the tax deduction for executive compensation and a discrete tax expense associated with an increase to the prior year valuation allowance for state net operating losses. |
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Net Income (Loss) Per Share | Net Income (Loss) Per ShareThe Company calculates basic net income (loss) per share by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. In periods of net income, diluted net income per share takes into account the effect of potential dilutive common shares when the effect is dilutive. Potentially dilutive common shares include (i) common stock issuable upon exercise of outstanding stock options and (ii) contingently issuable RSUs that are convertible into shares of common stock upon achievement of certain service and performance requirements. The effect of potentially dilutive common shares is computed using the treasury stock method. The RSUs granted to members of the Company’s board of directors contain non-forfeitable rights to dividends and therefore are considered to be participating securities in periods of net income. As a result, the calculation of basic and diluted net income per share excludes net income attributable to the unvested RSUs granted to the Company’s board of directors from the numerator and excludes the impact of the unvested RSUs granted to the Company’s board of directors from the denominator. The following table summarizes the computations of basic and diluted net income (loss) per share:
Due to the Company’s net loss position for the three months ended March 31, 2021, all potential common stock equivalents were anti-dilutive and therefore excluded from the calculation of diluted net loss per share. The following table presents the incremental number of shares underlying stock options and RSUs outstanding with anti-dilutive effects:
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Related Party Transactions |
3 Months Ended |
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Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party Transactions Aireon LLC and Aireon Holdings LLC The Company's satellite constellation hosts the Aireon® system, which provides a global air traffic surveillance service through a series of automatic dependent surveillance-broadcast (“ADS-B”) receivers. The Company formed Aireon in 2011, with subsequent investments from the air navigation service providers (“ANSPs”) of Canada, Italy, Denmark, Ireland and the United Kingdom, to develop and market this service. The Company and other Aireon investors hold their interests in Aireon through the Amended and Restated Aireon Holdings LLC agreement (the “Aireon Holdings LLC Agreement”). Aireon Holdings LLC holds 100% of the membership interests in Aireon LLC, which is the operating entity. At each of March 31, 2022 and December 31, 2021, the Company's fully diluted ownership stake in Aireon Holdings LLC was approximately 35.7% and is subject to redemption provisions contained in the Aireon Holdings LLC Agreement. The Company's investment in Aireon is accounted for as an equity method investment, with a carrying value of zero as of March 31, 2022 and December 31, 2021. Aireon has contracted to pay the Company a fee to host the ADS-B receivers on its constellation, as well as fees for power and data services in connection with the delivery of the air traffic surveillance data. Pursuant to an agreement with Aireon (the “Hosting Agreement”), Aireon will pay the Company fees of $200.0 million to host the ADS-B receivers, of which $62.5 million had been paid as of March 31, 2022, as well as power fees of up to approximately $3.7 million per year. Aireon also pays data services fees of $19.8 million per year for the delivery of the air traffic surveillance data under a data transmission services agreement. Pursuant to ASU 2016-02, the Company considers the Hosting Agreement an operating lease. The Company recognized $4.0 million of hosting fee revenue for each of the three months ended March 31, 2022 and 2021. Aireon receivables under the Hosting Agreement totaled $3.5 million as of March 31, 2022. There were no such receivables as of December 31, 2021. The Company recorded power and data service revenue from Aireon of $5.9 million for each of the three months ended March 31, 2022 and 2021. Under two services agreements, the Company also provides Aireon with administrative services and support services, the fees for which are paid monthly. Aireon receivables due to the Company under these two agreements totaled $2.1 million and $2.2 million as of March 31, 2022 and December 31, 2021, respectively. The Company and the other Aireon investors have agreed to participate pro-rata, based on their fully diluted ownership stakes, in funding an investor bridge loan to Aireon. The Company’s maximum funding commitment for the bridge loan is $10.7 million.
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Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Adopted and Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The guidance provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. ASU 2020-04 was further amended in January 2021 when the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), which clarified the applicability of certain provisions. Both ASU 2020-04 and ASU 2021-01 are currently effective prospectively for all entities through December 31, 2022, when the reference rate replacement activity is expected to have been completed. The guidance in ASU 2020-04 and ASU 2021-01 is optional and may be elected over time as reference rate reform activities occur. During 2021, the Company elected to apply the optional expedient for hedge accounting specifically to the interest rate cap agreement (the "Cap") executed in July 2021 (see Note 6). This allowed the Company to assume that the index upon which future interest payments on the hedged portion of the Term Loan (see Note 5) will be based matches the index on the Cap. Adoption of this practical expedient had no impact on the Company's condensed consolidated financial statements upon adoption. The Company has not yet adopted any other expedients and will continue to evaluate the impact this standard may have on its consolidated financial statements.
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Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by management of the Company. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value. The fair value hierarchy consists of the following tiers: •Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; •Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying values of the following financial instruments approximated their fair values as of March 31, 2022 and December 31, 2021: (1) cash and cash equivalents, (2) prepaid expenses and other current assets, (3) accounts receivable, (4) accounts payable, and (5) accrued expenses and other current liabilities. Fair values approximate their carrying values because of their short-term nature. The Level 2 cash equivalents may include money market funds, commercial paper and short-term U.S. agency securities. The Company also classifies its derivative financial instruments as Level 2. The Company did not hold any Level 3 assets as of March 31, 2022 and December 31, 2021.The fair values of the Company’s Level 2 estimates are based upon certain market assumptions and information available to the Company. In determining fair value, the Company uses a market approach utilizing valuation models that incorporate observable inputs such as interest rates, bond yields and quoted prices for similar assets.
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Lessee, Leases [Policy Text Block] | Leases For new leases, the Company will determine if an arrangement is or contains a lease at inception. Leases are included as (1) right-of-use (“ROU”) assets within other assets, and (2) ROU liabilities within accrued expenses and other liabilities and are included within other long-term liabilities on the Company’s condensed consolidated balance sheets. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Certain leases contain variable contractual obligations as a result of future base rate escalations which are estimated based on observed trends and included within the measurement of present value. The Company’s leases do not provide an implicit rate. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU assets also include any lease payments made and exclude lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, such as teleport network facilities, the Company elected the practical expedient to combine lease and non-lease components as a single lease component. Taxes assessed on leases in which the Company is either a lessor or lessee are excluded from contract consideration and variable payments when measuring new lease contracts or remeasuring existing lease contracts.
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Inventory, Policy [Policy Text Block] | Inventory Inventory consists primarily of finished goods and raw materials from third-party manufacturers. The Company outsources manufacturing of subscriber equipment to a third-party manufacturer and purchases accessories from third-party suppliers. The Company’s cost of inventory includes an allocation of overhead, including payroll and payroll-related costs of employees directly involved in bringing inventory to its existing condition, and freight. Inventories are valued using the average cost method and are carried at the lower of cost or net realizable value. The Company has a manufacturing agreement with Benchmark Electronics Inc. (“Benchmark”) to manufacture most of its subscriber equipment. Pursuant to the agreement, the Company may be required to purchase excess materials at cost plus a contractual markup if the materials are not used in production within the periods specified in the agreement. Benchmark will then repurchase such materials from the Company at the same price paid by the Company, as required for the production of the subscriber equipment.
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Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments The Company uses derivatives (interest rate swap, swaption and cap) to manage its exposure to fluctuating interest rate risk on variable rate debt. Its derivatives are measured at fair value and are recorded on the condensed consolidated balance sheets within other current liabilities and other assets. When the Company’s derivatives are designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are recorded in accumulated other comprehensive income (loss) within the Company’s condensed consolidated balance sheets and subsequently recognized in earnings when the hedged items impact earnings. Any ineffective portion of a derivative's change in fair value will be recognized in earnings in the same period in which the hedged interest payments affect earnings. Within the condensed consolidated statements of operations and comprehensive income (loss), the gains and losses related to cash flow hedges are recognized within interest income (expense), net, as this is the same financial statement line item used for any gains or losses associated with the hedged items. Cash flows from hedging activities are included in operating activities within the Company’s condensed consolidated statements of cash flows, which is the same category as the item being hedged. See Note 6 for further information.
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Accounting Policies (Tables) |
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Schedule of Inventory, Current | The following table summarizes the Company's inventory balance:
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Cash and Cash Equivalents, Restricted Cash and Marketable Securities (Tables) |
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Summary of Company's Cash and Cash Equivalents | The following table presents the Company’s cash and cash equivalents balance:
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Leases (Tables) |
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Operating Lease, Lease Income [Table Text Block] | The following table presents future income with respect to the Company’s operating leases in which it is the lessor existing at March 31, 2022, exclusive of the $5.4 million recognized during the three months ended March 31, 2022, by year and in the aggregate:
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Debt (Tables) |
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Interest incurred | The following table presents the interest and amortization of deferred financing fees related to the Term Loan:
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Derivative Instruments and Hedging Activities (Tables) |
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Derivative Instruments, Gain (Loss) | The following table presents the amount of unrealized gain or loss and related tax impact associated with the derivative instruments that the Company recorded in its condensed consolidated statements of operations and comprehensive income (loss):
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Stock-Based Compensation (Tables) |
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Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Activity | Option Summary A summary of the activity of the Company's stock options is as follows:
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Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The following tables summarize the Company’s RSU activity:
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Company's service revenue | The following table summarizes the Company’s services revenue:
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Summary of Company's Engineering and Support Services Revenue [Table Text Block] | The following table summarizes the Company’s engineering and support services revenue:
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Schedule of recognized contract costs | The following table presents contract assets not separately disclosed:
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Net Income (Loss) Per Share (Tables) |
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Computations of Basic and Diluted Net Income Per Share | The following table summarizes the computations of basic and diluted net income (loss) per share:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table presents the incremental number of shares underlying stock options and RSUs outstanding with anti-dilutive effects:
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Significant Accounting Policies - Schedule of Inventory (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
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Accounting Policies [Abstract] | ||
Finished goods | $ 13,649 | $ 18,395 |
Raw materials | 15,758 | 11,850 |
Inventory valuation reserve | (1,166) | (1,201) |
Inventory | $ 28,241 | $ 29,044 |
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
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Cash and cash equivalents: | ||
Cash | $ 33,078 | $ 28,496 |
Total cash and cash equivalents | 232,015 | 320,913 |
Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents: | ||
Money market funds | $ 198,937 | $ 292,417 |
Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2022 |
Mar. 31, 2021 |
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Lessor, Lease, Description [Line Items] | ||
Operating Lease, Lease Income | $ 5,400 | $ 5,400 |
2022 (Remainder of Fiscal Year) | 16,084 | |
2023 | 21,445 | |
2024 | 21,445 | |
2025 | 21,445 | |
2026 | 21,445 | |
Thereafter | 77,462 | |
Total lease income | $ 179,326 | |
Next Generation Satellites | ||
Lessor, Lease, Description [Line Items] | ||
Property, Plant and Equipment, Useful Life | 12 years 6 months |
Debt - Interest Incurred (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2022 |
Mar. 31, 2021 |
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Debt Disclosure [Abstract] | ||
Interest Costs Incurred | $ 15,303 | $ 20,137 |
Amortization of Debt Issuance Costs and Discounts | 1,182 | 973 |
Interest Costs Capitalized | $ 389 | $ 642 |
Derivatives (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | ||
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May 31, 2021 |
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
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Interest Rate Swap [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 0.8 | $ 2.7 | ||
Interest Rate Swap [Member] | ||||
Interest Rate Swap [Line Items] | ||||
Derivative, Fixed Interest Rate | 1.565% | |||
Interest Rate Swaption [Member] | ||||
Interest Rate Swap [Line Items] | ||||
Proceeds from sale of derivative | $ 0.7 | |||
Derivative, Fixed Interest Rate | 0.50% | |||
Interest Rate Cap | ||||
Interest Rate Swap [Line Items] | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 55.0 | $ 19.7 | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 13.6 | $ 14.8 | ||
Derivative, Cap Interest Rate | 1.50% | 1.50% | ||
Derivative, Fixed Interest Rate | 0.31% | 0.31% | ||
Derivative, Notional Amount | $ 1,000.0 | $ 1,000.0 |
Derivatives - Summary of Unrealized Gains and Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2022 |
Mar. 31, 2021 |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Unrealized gain, net of tax | $ 27,992 | $ 3,843 |
Tax expense | $ 8,455 | $ 1,202 |
Stock-Based Compensation Outstanding RSUs (Details) - Outstanding Restricted Stock Units - $ / shares shares in Thousands |
3 Months Ended | |
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Mar. 31, 2022 |
Mar. 31, 2021 |
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Shares Underlying RSUs | ||
Outstanding - restricted stock units | 2,550 | 2,664 |
Granted - restricted stock units | 976 | 813 |
Forfeited - restricted stock units | (68) | (17) |
Released - restricted stock units | (550) | (515) |
Outstanding - restricted stock units | 2,908 | 2,945 |
Vested and unreleased restricted stock units | 882 | 860 |
Weighted- Average Grant Date Fair Value Per RSU | ||
Outstanding - weighted average grant date fair value per RSU | $ 25.80 | $ 18.96 |
Granted - weighted average grant date fair value per RSU | 39.12 | 41.79 |
Forfeited - weighted average grant date fair value per RSU | 28.49 | 22.84 |
Released - weighted average grant date fair value per RSU | 33.91 | 21.63 |
Outstanding - weighted average grant date fair value per RSU | $ 28.67 | $ 24.77 |
Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |||
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Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
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Class of Stock [Line Items] | ||||
Total Authorized Preferred Stock, Number | 2,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.0001 | |||
Preferred stock, shares issued (in shares) | 1,500,000 | |||
Shares of preferred stock, undesignated and unissued (in shares) | 500,000 | 500,000 | ||
Stock Repurchase Program, Authorized Amount | $ 300.0 | $ 300.0 | ||
Treasury Stock, Shares, Retired | 3,800,000 | 1,600,000 | ||
Treasury Stock, Retired, Cost Method, Amount | $ 134.2 | $ 59.2 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 302.5 |
Revenue - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 31, 2022 |
Mar. 31, 2021 |
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Revenue from Contract with Customer [Abstract] | ||
Liability, revenue recognized | $ 9.4 | $ 11.6 |
Accounts Receivable [Member] | Customer Concentration Risk | Prime Contracts with the US Government [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 25.00% | 34.00% |
Revenue - Summary of Contract Costs (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Commissions | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 998 | $ 1,190 |
Other contract costs | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | 2,483 | 2,558 |
Unbilled Revenues | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 13,221 | $ 10,752 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Income Tax Disclosure [Abstract] | ||
Income (loss) before income taxes | $ 4,648 | $ (13,781) |
Income tax benefit (expense) | $ (1,824) | $ 8,598 |
Effective Income Tax Rate Reconciliation, Percent | 39.20% | 63.80% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% |
Net Income (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income (loss) - diluted | $ 2,824 | $ (5,183) |
Weighted Average Number of Shares Outstanding, Basic | 130,298 | 135,068 |
Weighted Average Number of Shares Outstanding, Diluted | 131,842 | 135,068 |
Earnings Per Share, Basic and Diluted | $ 0.02 | $ (0.04) |
Employee Stock Option | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units | 1,012 | |
Restricted Stock [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Dilutive Securities, Effect on Basic Earnings Per Share, Options and Restrictive Stock Units | 532 |
Net Income (Loss) Per Share - Anti-Dilutive Shares (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Performance Based RSU | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 0 | 207 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 277 | 614 |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 0 | 1,402 |
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