KVH INDUSTRIES INC DE

For the period ended Sep 30, 2024. Filed Nov 7, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2024 · Filed Nov 7, 2024

KVHI$7.00+8.7%Stored close · as of Nov 9, 2026

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Contents

INTERIM FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

	September 30, 2024	December 31, 2023
ASSETS · (unaudited)
Current assets:
Cash and cash equivalents	$14,396	$11,294
Marketable securities	35,369	58,477
Accounts receivable, net of allowance for credit losses of $1,035 and $1,168 as of September 30, 2024 and December 31, 2023, respectively	24,757	25,670
Inventories	25,203	19,046
Prepaid expenses and other current assets	20,531	4,331
Current assets held for sale	11,410	—
Total current assets	131,666	118,818
Property and equipment, net	29,894	47,680
Intangible assets, net	922	1,194
Right of use assets	1,104	1,068
Other non-current assets	2,914	3,618
Deferred income tax asset	221	256
Total assets	$166,721	$172,634
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$10,198	$4,780
Accrued airtime	673	5,508
Accrued compensation and employee-related expenses	4,251	4,466
Accrued loss on future firm purchase commitments	2,174	3,569
Accrued other	2,774	2,588
Accrued product warranty costs	584	828
Deferred revenue	1,536	1,774
Current operating lease liability	692	786
Liability for uncertain tax positions	733	673
Total current liabilities	23,615	24,972
Long-term operating lease liability	406	289
Deferred income tax liability	2	1
Total liabilities	$24,023	$25,262
Commitments and contingencies (Notes 2, 11, and 16)
Stockholders’ equity:
Preferred stock, $0.01 par value. Authorized 1,000,000 shares; none issued	—	—
Common stock, $0.01 par value. Authorized 30,000,000 shares; 21,255,231 and 21,066,899 shares issued at September 30, 2024 and December 31, 2023, respectively; and 19,799,122 and 19,610,790 shares outstanding at September 30, 2024 and December 31, 2023, respectively	213	211
Additional paid-in capital	166,874	165,140
Accumulated deficit	(8,442)	(1,704)
Accumulated other comprehensive loss	(3,857)	(4,185)
	154,788	159,462
Less: treasury stock at cost, common stock, 1,456,109 shares as of September 30, 2024 and December 31, 2023	(12,090)	(12,090)
Total stockholders’ equity	142,698	147,372
Total liabilities and stockholders’ equity	$166,721	$172,634

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except earnings per share amounts, unaudited)

Three Months Ended · Nine Months Ended
	September 30,		September 30,
	2024	2023	2024	2023
Sales:
Service	$24,410	$29,397	$74,122	$86,883
Product	4,561	3,798	12,789	14,041
Net sales	28,971	33,195	86,911	100,924
Costs and expenses:
Costs of service sales	14,983	16,238	44,496	47,848
Costs of product sales	4,714	4,511	14,321	16,042
Research and development	1,407	2,398	6,771	7,379
Sales, marketing and support	4,932	4,841	15,650	15,673
General and administrative	3,789	4,367	13,214	13,139
Goodwill impairment charge	—	5,333	—	5,333
Long-lived assets impairment charge	1,137	657	1,137	657
Total costs and expenses	30,962	38,345	95,589	106,071
Loss from operations	(1,991)	(5,150)	(8,678)	(5,147)
Interest income	629	997	2,416	2,660
Interest expense	2	—	2	—
Other income (expense), net	216	(121)	(348)	(583)
Loss before income tax expense	(1,148)	(4,274)	(6,612)	(3,070)
Income tax expense	51	95	126	159
Net loss	$(1,199)	$(4,369)	$(6,738)	$(3,229)
Net loss per common share
Basic	$(0.06)	$(0.23)	$(0.35)	$(0.17)
Diluted	$(0.06)	$(0.23)	$(0.35)	$(0.17)
Weighted average number of common shares outstanding:
Basic	19,433	19,231	19,367	19,090
Diluted	19,433	19,231	19,367	19,090

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

Three Months Ended · Nine Months Ended
	September 30,		September 30,
	2024	2023	2024	2023
Net loss	$(1,199)	$(4,369)	$(6,738)	$(3,229)
Other comprehensive loss, net of tax:
Unrealized gain on available-for-sale securities	—	—	—	12
Foreign currency translation adjustment	134	(267)	328	(124)
Other comprehensive income (loss), net of tax(1)	134	(267)	328	(112)
Total comprehensive loss	$(1,065)	$(4,636)	$(6,410)	$(3,341)

(1)Tax impact was nominal for all periods.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

Common Stock · AdditionalPaid-inCapital · Retained Deficit · AccumulatedOtherComprehensive Loss · Treasury Stock · TotalStockholders’Equity
Shares · Amount · Shares · Amount
Balance at June 30, 2024	21,170	$212	$166,490	$(7,243)	$(3,991)	(1,456)	$(12,090)	$143,378
Net loss	—	—	—	(1,199)	—	—	—	(1,199)
Other comprehensive income	—	—	—	—	134	—	—	134
Stock-based compensation	—	—	385	—	—	—	—	385
Exercise of stock options and issuance of restricted stock awards, net of forfeitures	85	1	(1)	—	—	—	—	—
Balance at September 30, 2024	21,255	$213	$166,874	$(8,442)	$(3,857)	(1,456)	$(12,090)	$142,698

Common Stock · AdditionalPaid-inCapital · Retained Deficit · AccumulatedOtherComprehensive Loss · Treasury Stock · TotalStockholders’Equity
Shares · Amount · Shares · Amount
Balance at December 31, 2023	21,067	$211	$165,140	$(1,704)	$(4,185)	(1,456)	$(12,090)	$147,372
Net loss	—	—	—	(6,738)	—	—	—	(6,738)
Other comprehensive income	—	—	—	—	328	—	—	328
Stock-based compensation	—	—	1,629	—	—	—	—	1,629
Issuance of common stock under employee stock purchase plan	24	—	95	—	—	—	—	95
Exercise of stock options and issuance of restricted stock awards, net of forfeitures	164	2	10	—	—	—	—	12
Balance at September 30, 2024	21,255	$213	$166,874	$(8,442)	$(3,857)	(1,456)	$(12,090)	$142,698

Common Stock · AdditionalPaid-inCapital · Retained Earnings · AccumulatedOtherComprehensive Loss · Treasury Stock · TotalStockholders’Equity
Shares · Amount · Shares · Amount
Balance at June 30, 2023	20,969	$210	$163,690	$14,858	$(3,955)	(1,456)	$(12,090)	$162,713
Net loss	—	—	—	(4,369)	—	—	—	(4,369)
Other comprehensive loss	—	—	—	—	(267)	—	—	(267)
Stock-based compensation	—	—	559	—	—	—	—	559
Issuance of common stock under employee stock purchase plan	17	—	123	—	—	—	—	123
Exercise of stock options and issuance of restricted stock awards, net of forfeitures	81	1	133	—	—	—	—	134
Balance at September 30, 2023	21,067	$211	$164,505	$10,489	$(4,222)	(1,456)	$(12,090)	$158,893

Common Stock · AdditionalPaid-inCapital · Retained Earnings · AccumulatedOtherComprehensive Loss · Treasury Stock · TotalStockholders’Equity
Shares · Amount · Shares · Amount
Balance at December 31, 2022	20,631	$206	$160,475	$13,718	$(4,110)	(1,433)	$(11,851)	$158,438
Net loss	—	—	—	(3,229)	—	—	—	(3,229)
Other comprehensive loss	—	—	—	—	(112)	—	—	(112)
Stock-based compensation	—	—	1,433	—	—	—	—	1,433
Issuance of common stock under employee stock purchase plan	17	—	123	—	—	—	—	123
Acquisition of treasury stock	—	—	—	—	—	(23)	(239)	(239)
Exercise of stock options and issuance of restricted stock awards, net of forfeitures	419	5	2,474	—	—	—	—	2,479
Balance at September 30, 2023	21,067	$211	$164,505	$10,489	$(4,222)	(1,456)	$(12,090)	$158,893

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended
	September 30,
	2024	2023
Cash flows from operating activities:
Net loss	$(6,738)	$(3,229)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for credit losses	35	(168)
Depreciation and amortization	10,250	10,119
Impairment charge to goodwill and long-lived assets	1,137	5,990
Deferred income taxes	36	1
Loss on disposals of fixed assets	1,850	511
Compensation expense related to stock-based awards and employee stock purchase plan	1,629	1,433
Unrealized currency translation loss (gain)	280	(150)
Changes in operating assets and liabilities:
Accounts receivable	896	(593)
Inventories	(6,157)	(3,693)
Prepaid expenses and other current assets	(16,128)	(1,544)
Other non-current assets	692	1,054
Accounts payable	5,404	(16,758)
Deferred revenue	(270)	230
Accrued compensation, product warranty and other	(6,489)	4,119
Net cash used in operating activities	$(13,573)	$(2,678)
Cash flows from investing activities:
Capital expenditures	(6,570)	(7,170)
Cash paid for acquisition of intangible asset	(31)	(35)
Purchases of marketable securities	(1,892)	(17,441)
Maturities and sales of marketable securities	25,000	15,422
Net cash provided by (used in) investing activities	$16,507	$(9,224)
Cash flows from financing activities:
Proceeds from stock options exercised and employee stock purchase plan	96	2,604
Purchase of treasury stock	—	(239)
Payment of finance lease	—	(22)
Net cash provided by financing activities	$96	$2,343
Effect of exchange rate changes on cash and cash equivalents	72	(13)
Net increase (decrease) in cash and cash equivalents	3,102	(9,572)
Cash and cash equivalents at beginning of period	11,294	21,056
Cash and cash equivalents at end of period	$14,396	$11,484
Supplemental disclosure of non-cash investing and financing activities:
Changes in accrued other and accounts payable related to property and equipment additions	$31	$3

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.