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GLOBAL EAGLE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2016 RESULTS
LOS ANGELES, CA, October 18, 2017Global Eagle Entertainment Inc. (NASDAQ: ENT) (Global Eagle or the Company), a leading provider of media, content and connectivity to markets across air, sea and land, today announced unaudited financial results for the fourth quarter and full year ended December 31, 2016. For the fourth quarter of 2016, Global Eagle posted revenue of $165 million, up 45.5% compared to the prior-year period; incurred net loss of $91.7 million; and generated Adjusted EBITDA* of $19.4 million, up 24.9% compared to the prior-year period. For the full year 2016, Global Eagle posted revenue of $538 million, up 26.2% compared to the prior year; incurred net loss of $112.9 million; and generated Adjusted EBITDA of $57.5 million, up 15.0% compared to the prior year.
2017 has been a year of transition for Global Eagle, and we are building a solid foundation to position our company for future growth, reiterated Jeff Leddy, CEO of Global Eagle. Importantly, we have strengthened key areas in our finance and other shared service functions and continue to integrate past acquisitions across our business lines.
Under its new leadership, Global Eagle is further strengthening its talent. This includes many new hires as well as adding new leadership positions within our finance, Media & Content and Connectivity teams. The Company is also implementing new software tools designed to enhance operations, improve the timeliness of our financial reporting and reduce future extraordinary expenses, such as audit, professional services and legal fees.
Our Media & Content and Connectivity teams are winning new business and major renewals, with both businesses benefiting from strong secular growth within their industries, continued Mr. Leddy. We have a number of opportunities in front of us and are poised to execute on them in the coming months. As we near the completion of the 2016 audit, we are focused on driving growth in 2018.
We have made significant enhancements to our finance department in the last six months as we improve both our processes and controls, reiterated Paul Rainey, CFO of Global Eagle. We are already seeing these benefits as we near the close of our audit process. In addition, we are taking tremendous steps forward across our businesses to improve customer relations and make better informed decisions to enhance performance.
Fourth Quarter 2016 Results Summary
Total revenue increased to $165 million in the fourth quarter of 2016, which was a 45.5% increase versus the prior year period, driven largely by the acquisition of Emerging Market Communications (EMC) in July 2016 and continued growth in our Aviation Connectivity business. Our fourth quarter 2016 results include a full quarter of operating results for EMC.
Net loss was $91.7 million in the fourth quarter of 2016. During the quarter, the Company recorded a non-cash goodwill impairment charge of $64.0 million related to our Maritime & Land Connectivity business acquired with EMC. In addition, during the first quarter 2017, due to a significant decline in our stock price and changes in our management during the that quarter, we again tested our goodwill for impairment. As such, we preliminarily estimate having to record an additional non-cash charge ranging from $75 million to $80 million for that quarter related to the impairment of goodwill associated with the Maritime & Land Connectivity business in that quarter. We do not anticipate further impairments in goodwill for this business in the second or third quarters of 2017.
The following information was filed by Global Eagle Entertainment Inc. (ENT) on Wednesday, October 18, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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