Attached files
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| 8-K - CURRENT REPORT - Straight Path Communications Inc. | f8k102913_straightpath.htm |
Exhibit 99.1
Straight Path Communications Reports Full Year Fiscal 2013 Results
GLEN ALLEN, VA — October 29, 2013: Straight Path Communications Inc., (SPCI), reported revenues of $1.1 million and a net loss attributable to SPCI of $3.2 million for its 2013 fiscal year, the twelve months ended July 31, 2013. The net loss included the cost of a $1.2 million non-routine legal settlement. SPCI’s net loss per diluted share was $0.31 including the impact of the settlement.
SPCI was spun off from IDT Corporation on July 31, 2013, and now operates as an independent company. SPCI’s common stock is listed on NYSE MKT under the symbol “STRP.”
Davidi Jonas, CEO of SPCI, said, “Since initiating operations as an independent public company, both of our operating businesses - Straight Path Spectrum and Straight Path IP Group - have moved forward to realize the value of their respective assets for our shareholders. With our strong balance sheet and capable management team in place, we expect Straight Path to make significant progress on both our Spectrum and IP fronts in fiscal 2014.”
FISCAL YEAR 2013 HIGHLIGHTS
(Results for FY 2013 are compared to FY 2012).
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Revenue in FY 13 increased to $1.1 million from $0.6 million on increased IP royalty payments;
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Total costs and expenses for the fiscal year increased to $3.7 million from $1.1 million, including a non-routine legal settlement expense of $1.2 million in FY 13;
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Net loss attributable to SPCI of $3.2 million including a $1.2 million non-routine legal settlement expense. FY 2012 net income attributable to SPCI was $4.8 million including a gain on the sale of spectrum licenses of $5.3 million;
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Cash and cash equivalents at July 31, 2013 was $15.0 million.
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1
Straight Path Communications Inc. Full Fiscal Year 2013 and 2012 Consolidated
(in millions of USD except per share data)
figures may not foot due to rounding
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FY 2013
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FY 2012
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Change
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Revenue
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$ | 1.1 | $ | 0.6 | +104.2 | % | ||||||
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Direct cost
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0.6 | 0.1 | +583.3 | % | ||||||||
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SG&A
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3.1 | 1.0 | +208.3 | % | ||||||||
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Gain on sale of rights in wireless spectrum
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0.2 | 5.3 | (97.2 | )% | ||||||||
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Loss on legal settlement
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1.2 | - | N/A | |||||||||
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Income (loss) from operations
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(3.6 | ) | 4.8 | (175.6 | )% | |||||||
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Net (loss) income attributable to SPCI
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(3.2 | ) | 4.8 | $ | (8.0 | ) | ||||||
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(Loss) earnings per diluted share attributable to SPCI
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$ | (0.31 | ) | $ | 0.39 | $ | (0.70 | ) | ||||
FISCAL YEAR 2013 OPERATING RESULTS BY SEGMENT
Straight Path Spectrum Full Fiscal Year 2013 and 2012 Results
(in millions of USD)
figures may not foot due to rounding
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FY 2013
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FY 2012
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Change
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Revenue
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$ | 0.5 | $ | 0.6 | (5.1 | )% | ||||||
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Direct cost
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0.1 | 0.1 | (42.1 | )% | ||||||||
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SG&A
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1.4 | 0.4 | +220.9 | % | ||||||||
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Gain on sale of rights in wireless spectrum
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0.2 | 5.3 | (97.2 | )% | ||||||||
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Loss on legal settlement
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1.2 | - | N/A | |||||||||
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(Loss) income from operations
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$ | (1.9 | ) | $ | 5.4 | $ | (7.3 | ) | ||||
Straight Path IP Group Full Fiscal Year 2013 and 2012 Results
(in millions of USD)
figures may not foot due to rounding
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FY 2013
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FY 2012
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Change
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Revenue
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$ | 0.6 | - | N/A | ||||||||
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Direct cost
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0.6 | - | N/A | |||||||||
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SG&A
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1.8 | 0.6 | +199.2 | % | ||||||||
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(Loss) from operations
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$ | (1.7 | ) | $ | (0.6 | ) | $ | (1.1 | ) | |||
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About Straight Path Communications Inc. (SPCI):
SPCI (NYSE MKT: STRP) holds, leases, and markets its extensive holdings of 39 and 28 GHz fixed wireless spectrum licenses through its Straight Path Spectrum subsidiary. SPCI holds, licenses, and conducts other business related to certain patents through its Straight Path IP Group subsidiary. Additional information is available on the SPCI website: http://spathinc.com/
In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our Annual Report on Form 10-K for the fiscal year ended July 31, 2013 and our other periodic filings with the SEC (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"). We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.
Contact:
Jonathan Rand
Straight Path Communications Inc.
804-433-1528
jonathan.rand@spathinc.com
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STRAIGHT PATH COMMUNICATIONS INC.
COMBINED AND CONSOLIDATED BALANCE SHEETS
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July 31
(in thousands)
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2013
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2012
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ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 15,000 | $ | 2,598 | ||||
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Trade accounts receivable, net of allowance for doubtful accounts of $4 and $11 as of July 31, 2013 and 2012, respectively
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60 | 37 | ||||||
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Other current assets
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90 | 9 | ||||||
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TOTAL CURRENT ASSETS
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15,150 | 2,644 | ||||||
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Prepaid expenses
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239 | 171 | ||||||
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Intangibles
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350 | — | ||||||
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TOTAL ASSETS
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$ | 15,739 | $ | 2,815 | ||||
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LIABILITIES AND EQUITY
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CURRENT LIABILITIES:
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Trade accounts payable
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$ | 1 | $ | 1 | ||||
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Accrued expenses
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1,473 | 1,169 | ||||||
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Deferred revenue
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145 | 75 | ||||||
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Income taxes payable
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15 | 20 | ||||||
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TOTAL CURRENT LIABILITIES
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1,634 | 1,265 | ||||||
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Deferred revenue—long-term portion
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250 | 150 | ||||||
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TOTAL LIABILITIES
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1,884 | 1,415 | ||||||
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Commitments and contingencies
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EQUITY:
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Straight Path Communications stockholders’ equity:
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Preferred stock, $0.01 par value; authorized shares-3,000; no shares issued
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— | — | ||||||
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Class A common stock, $0.01 par value; authorized shares-2,000; 787 and nil shares issued and outstanding at July 31, 2013 and 2012, respectively
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8 | — | ||||||
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Class B common stock, $0.01 par value: authorized shares-40,000; 10,693 and nil shares issued and outstanding at July 31, 2013 and 2012, respectively
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107 | — | ||||||
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Additional paid-in capital
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14,114 | — | ||||||
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Group equity
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— | 1,478 | ||||||
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Total Straight Path Communications stockholders’ equity
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14,229 | 1,478 | ||||||
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Noncontrolling interests
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(374 | ) | (78 | ) | ||||
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TOTAL EQUITY
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13,855 | 1,400 | ||||||
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TOTAL LIABILITIES AND EQUITY
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$ | 15,739 | $ | 2,815 | ||||
4
STRAIGHT PATH COMMUNICATIONS INC.
COMBINED AND CONSOLIDATED STATEMENTS OF OPERATIONS
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Year ended July 31
(in thousands, except per-share data)
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2013
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2012
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REVENUES
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$ | 1,130 | $ | 553 | ||||
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COSTS AND EXPENSES:
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Direct cost of revenues
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630 | 92 | ||||||
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Selling, general and administrative
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3,115 | 1,010 | ||||||
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TOTAL COSTS AND EXPENSES
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3,745 | 1,102 | ||||||
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Gain on sale of rights in wireless spectrum
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150 | 5,330 | ||||||
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Loss on settlement of Straight Path Spectrum legal proceedings
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(1,150 | ) | — | |||||
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(LOSS) INCOME FROM OPERATIONS
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(3,615 | ) | 4,781 | |||||
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Interest income
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11 | 8 | ||||||
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Interest expense
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— | (9 | ) | |||||
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Other income
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— | 1 | ||||||
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(LOSS) INCOME BEFORE INCOME TAXES
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(3,604 | ) | 4,781 | |||||
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Provision for income taxes
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(8 | ) | (25 | ) | ||||
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NET (LOSS) INCOME
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(3,612 | ) | 4,756 | |||||
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Net loss attributable to noncontrolling interests
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399 | 33 | ||||||
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NET (LOSS) INCOME ATTRIBUTABLE TO STRAIGHT PATH COMMUNICATIONS INC.
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$ | (3,213 | ) | $ | 4,789 | |||
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(Loss) earnings per share attributable to Straight Path Communications Inc. stockholders:
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Basic
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$ | (0.31 | ) | $ | 0.42 | |||
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Diluted
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$ | (0.31 | ) | $ | 0.39 | |||
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Weighted-average number of shares used in calculation of (loss) earnings per share:
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Basic
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10,504 | 11,424 | ||||||
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Diluted
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10,504 | 12,425 | ||||||
5
STRAIGHT PATH COMMUNICATIONS INC.
COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS
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Year ended July 31
(in thousands)
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2013
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2012
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OPERATING ACTIVITIES
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Net (loss) income
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$ | (3,612 | ) | $ | 4,756 | |||
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Adjustments to reconcile net (loss) income to net cash used in operating activities:
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Stock-based compensation
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675 | 52 | ||||||
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Gain on sale of rights in wireless spectrum
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— | (5,330 | ) | |||||
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Change in assets and liabilities:
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Trade accounts receivable
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(23 | ) | 26 | |||||
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Other current assets and prepaid expenses
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(149 | ) | 15 | |||||
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Trade accounts payable and accrued expenses
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305 | (779 | ) | |||||
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Income taxes payable
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(5 | ) | 20 | |||||
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Deferred revenue
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172 | 114 | ||||||
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Net cash used in operating activities
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(2,637 | ) | (1,126 | ) | ||||
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INVESTING ACTIVITIES
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Proceeds from sale of rights in wireless spectrum
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— | 6,800 | ||||||
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Purchase of spectrum licenses
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(350 | ) | ||||||
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Proceeds from maturity of certificate of deposit
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— | 240 | ||||||
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Net cash (used in) provided by investing activities
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(350 | ) | 7,040 | |||||
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FINANCING ACTIVITIES
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Funding provided by (repayment of funding to) IDT Corporation, net
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15,389 | (3,250 | ) | |||||
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Repayment of note payable
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— | (666 | ) | |||||
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Net cash provided by (used in) financing activities
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15,389 | (3,916 | ) | |||||
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Net increase in cash and cash equivalents
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12,402 | 1,998 | ||||||
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Cash and cash equivalents at beginning of year
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2,598 | 600 | ||||||
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Cash and cash equivalents at end of year
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$ | 15,000 | $ | 2,598 | ||||
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
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Cash payments made for interest
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$ | — | $ | 34 | ||||
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SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
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Amount due to IDT Corporation contributed to equity
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$ | 2,757 | $ | 233,405 | ||||
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