pitch rnet

Vishal Bhat | Matthew Rindelaub | Connor Ruddick

NASDAQ: RNET

The University of Texas at Austin

2

NASDAQ: RNET

Investment Thesis

Thesis Company Industry Risks Valuation

1

2

3

RigNet shares punished by unfair industry

based sentiment

Recent favorable management changes have

driven down the stock

Misunderstood impacts from 2014 Inmarsat

acquisition

Company Overview

Company Overview

4

Business


Pure-play remote

oil & gas

communications

Fully managed

voice and

broadband

services

Custom designed

solutions for each

application

Business

5

Installations


Pure-play remote

oil & gas

communications

Fully managed

voice and

broadband

services

Custom designed

solutions for each

application

Over 1,100 remote sites

Six continents

45 countries

262

Offshore

266

Onshore253

Strategic

Initiatives

346

Other

Sites

47%

Europe &

Russia

28.5%

Asia

Pacific

24.6%

United

States

Revenue FY2013

47%

Europe &

Russia

28.5%

Asia

Pacific

24.6%

United

States

Revenue FY2013Ultra Deepwater

Oil Plays

Strategic LocationsInstallations

6Thesis Company Industry Risks Valuation

7

Strategic LocationsChannels

VSATMicrowave/

WiMAX

Mobile

Satellite

Services

Cellular FiberSCADA

M2M


VSATMicrowave/

WiMAX

Mobile

Satellite

Services

Cellular FiberSCADA

M2M

Secure Oil Information Link

Crew Wi-Fi

Alert Logic

Tunnel Radio™

MetOcean Systems

Video Conferencing

SnapTV

TurboNet

Mission Critical

Quality of Life

Cost Saving & Efficient

8

ChannelsServices


7%15%

22%30%

38%14%

6%

7%6%

51% 48%44%

43% 43%

27% 31% 26% 21% 19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2007 2009 2011 2013

Market Share

Rignet Stratos Harris CapRock Other

Secure Oil Information Link

Crew Wi-Fi

Alert Logic

Tunnel Radio™

MetOcean Systems

Video Conferencing

SnapTV

TurboNet

Mission Critical

Quality of Life

Cost Saving & Efficient

Competitors

9

Services


History

10

Competitors


Competitors

11

Management

30+ years of experience in both telecom and

energy industries

Served on management of major players in oil

& gas markets

Strategic partnerships throughout industry

Progressive outlook on the increasing

technological focus of oil & gas industry

Mark SlaughterCEO & President


Management

12

Several new members of management from Harris CapRock, RigNet’s

primary competitor

Pal Jensen, Brian Keefover, Mauricio Rubinsztajn

Indicates general movement in market towards RigNet

Management brings unique perspectives and market knowledge

Recent Changes in Management

New core competencies and market insights

Many strategic leaders added from Inmarsat acquisition

Identifying areas with a greater need for hands-on management and

allocate talent accordingly

Rotation of management across the globe


Growth Prospects

14

Growth Prospects

Sources of Growth

Inmarsat Acquisition

Revenue Growth

Increased ARPU

Increased Rig Count

Increasing current margins

Knowledge of terrestrial wireless networks

Increased Microwave/WiMAX networks


Other Growth Factors

15

Sources of Growth

“One Stop Shop”

Increase in

Unconventional Energy

Demands

Promising Revenue

Trajectory

Expand services to encompass

entire operation

Shale boom increases onshore

prospects

Deepwater rig demand necessitates

strong telecommunication infrastructure

Increased customer lock-in

Increased rig efficiency

Well poised for this advancement

Established Global

Network

Increasing

Digitalization of O/G

Record Revenue

& EBITDA

New Value-adding

Services in Pipeline

Projected Bandwidth

Demand Growth


Industry Overview

17

Industry Overview

Oil Downturn


Satellite Telecom

18

Oil Downturn


0

1000

2000

3000

4000

5000

6000

7000

8000

2008 2009 2010* 2011* 2012* 2013* 2014* 2015* 2016* 2017* 2018*

Revenue in

mill

ion U

.S. dolla

rs

Projected Revenue of Satellite Telecommunications ‘08-’18

19

Satellite TelecomIndustry Uptrends


Risks & Mitigations

Risks & Mitigations

21

Risks & Mitigations

TSI helps make rigs efficient; fight price drops

Less exposure to risks of industry than O/G firms

Well-established network (lock-in)

Room to expand market share and market size

Nessco acquisition

Synergistic businesses

Subject to volatility of

energy markets

Oil & gas industry

currently in decline

Dilutive margins

GX is a risky endeavor

PE backed entrants

Possible market saturation


Macro Trends

Pricing & Competition

Inmarsat

Valuation

23

Valuation

DCF Analysis


24

DCF Analysis


Results & Sensitivity

SummaryResults & Sensitivity

25Thesis Company Industry Risks Valuation

1

2

3

Unfair punishment by market

Upside from strategic management changes

Synergistic Inmarsat acquisition

Q & A

27

Appendix


Valuation

NWC Base - 28

Risk Analysis - 29

Aggressive - 31

Conservative - 34

Analyst - 37

Assumptions - 40

WACC - 41

Price Performance Charts - 42

Statements

Annual Income Statement - 46

Annual Balance Sheet - 47

Annual Cash Flow Statement - 48

Quarterly Income Statement - 49

Quarterly Balance Sheet - 50

Quarterly Cash Flow Statement - 51

Multiple History - 52

Capital Structure & Debt Capitalization - 53

Ratios & Growth - 54

Solvency - 55

Long-Term Historical Growth - 56

Land Rig Projections - 57

UDW Projections - 58

Industry

Different Rig Usage & Day Rates - 59

Offshore Rig Utilization by Type - 61

Current Offshore Rig Utilization - 62

Tables-Offshore Utilization by Region - 63

Worldwide Offshore Utilization - 65

Company

Gulf of Mexico WiMAX - 67

U.S. Onshore Service Centers - 68

Management

Brad Alexander - 69

Jim Crenshaw - 70

Chad Winkle - 71

Pal Jensen (Harris) - 72

Brian Keefover (Harris) - 73

Mauricio Rubinsztajn (Harris) - 74

Solutions

Alert Logic - 75

Tunnel Radio™ - 76

MetOcean Systems - 77

SnapTV - 78

TurboNet (Riverbed SteelHead) - 79

Technology

IP/MPLS - 80

VSAT - 81

Microwave/WiMAX - 82

MSS - 83

M2M - 84

SCADA – 85

Oil Segment Performance - 86

28

NWC Base


29

Risk Analysis - Downside


30

Risk Analysis - IQR


31

Aggressive DCF


32

Aggressive Results & Sensitivity


33

NWC Aggressive


34

Conservative DCF


35

Conservative Results & Sensitivity


36

NWC Conservative


37

Analyst DCF


38

Analyst Results & Sensitivity


39

NWC Analyst


40

Assumptions


41

WACC


42

Chart – One Week


43

Chart – Three Month


44

Chart – One Year


45

Chart - History


46

Annual Income Statement


Income Statement

For the Fiscal Period Ending 12 months

Dec-31-2009

12 months

Dec-31-2010

12 months

Dec-31-2011

12 months

Dec-31-2012

12 months

Dec-31-2013

LTM

12 months

Revenue 80.9 92.9 109.4 161.7 220.7 272.3

Other Revenue - - - - - -

Total Revenue 80.9 92.9 109.4 161.7 220.7 272.3

Cost Of Goods Sold 35.2 42.5 48.6 81.1 118.9 156.0

Gross Profit 45.8 50.4 60.7 80.6 101.8 116.3

Selling General & Admin Exp. 18.6 21.0 29.2 38.9 48.4 54.7

R & D Exp. - - - - - -

Depreciation & Amort. 12.6 15.0 14.6 17.5 21.0 24.9

Other Operating Expense/(Income) - - - - - -

Other Operating Exp., Total 31.2 36.0 43.8 56.4 69.5 79.6

Operating Income 14.6 14.4 16.9 24.2 32.3 36.6

Interest Expense (5.1) (1.6) (1.2) (1.6) (2.3) (2.4)

Interest and Invest. Income - - - - - -

Net Interest Exp. (5.1) (1.6) (1.2) (1.6) (2.3) (2.4)

Other Non-Operating Inc. (Exp.) 0.3 (0.4) 0.6 (0.5) (0.2) (0.6)

EBT Excl. Unusual Items 9.7 12.4 16.3 22.1 29.8 33.7

Merger & Related Restruct. Charges - (1.8) - (1.4) (4.1) (7.0)

Impairment of Goodwill (2.9) - - - - -

Other Unusual Items (21.0) (17.2) - - - -

EBT Incl. Unusual Items (14.2) (6.6) 16.3 20.8 25.7 26.7

Income Tax Expense 5.5 8.7 6.5 8.7 9.2 10.7

Earnings from Cont. Ops. (19.6) (15.3) 9.8 12.0 16.5 15.9

Earnings of Discontinued Ops. - - - - - -

Extraord. Item & Account. Change - - - - - -

Net Income to Company (19.6) (15.3) 9.8 12.0 16.5 15.9

Minority Int. in Earnings (0.3) (0.3) (0.2) (0.1) (0.2) (0.3)

Net Income (19.9) (15.6) 9.5 11.9 16.3 15.6

47

Annual Balance Sheet


Annual Balance Sheet

Balance Sheet as of:

Dec-31-2009 Dec-31-2010 Dec-31-2011 Dec-31-2012 Dec-31-2013 Jun-30-2014

ASSETS

Cash And Equivalents 11.4 50.4 53.1 59.7 59.8 61.0

Total Cash & ST Investments 11.4 50.4 53.1 59.7 59.8 61.0

Accounts Receivable 12.7 16.0 26.4 40.0 45.4 83.0

Total Receivables 12.7 16.0 26.4 40.0 45.4 83.0

Prepaid Exp. 4.4 3.4 3.6 6.2 14.2 12.8

Restricted Cash 2.5 2.5 - 1.0 0.5 0.5

Other Current Assets - - - - - -

Total Current Assets 31.0 72.3 83.0 107.0 120.0 157.3

Gross Property, Plant & Equipment 62.1 74.6 93.8 126.9 155.8 -

Accumulated Depreciation (35.0) (48.2) (61.1) (80.2) (96.7) -

Net Property, Plant & Equipment 27.0 26.4 32.7 46.7 59.1 76.3

Goodwill 13.9 13.8 13.8 34.5 34.5 35.2

Other Intangibles 8.4 6.8 5.8 21.2 17.6 20.7

Deferred Tax Assets, LT 1.1 3.0 4.0 1.1 3.8 7.8

Other Long-Term Assets 7.5 7.5 1.5 5.5 3.9 1.0

Total Assets 88.8 129.8 140.9 215.9 238.8 298.1

LIABILITIES

Accounts Payable 3.8 4.9 5.5 11.8 13.7 16.4

Accrued Exp. 5.9 6.6 7.1 8.7 12.9 25.3

Curr. Port. of LT Debt 8.7 8.7 8.7 9.4 8.4 8.4

Curr. Income Taxes Payable 6.0 4.8 5.3 5.5 4.4 2.9

Unearned Revenue, Current 1.3 1.3 1.5 6.8 2.9 7.0

Other Current Liabilities - - - - - -

Total Current Liabilities 25.7 26.2 28.1 42.2 42.3 60.0

Long-Term Debt 21.0 23.5 14.8 51.9 51.2 76.9

Unearned Revenue, Non-Current 0.3 0.3 0.5 0.3 0.6 0.9

Def. Tax Liability, Non-Curr. 0.4 0.6 0.0 1.6 0.7 0.8

Other Non-Current Liabilities 35.6 11.3 14.1 18.0 19.2 20.6

Total Liabilities 83.1 61.9 57.5 114.0 114.0 159.2

Pref. Stock, Convertible 17.3 - - - - -

Total Pref. Equity 17.3 - - - - -

Common Stock 0.0 0.0 0.0 0.0 0.0 0.0

Additional Paid In Capital 9.5 110.1 116.7 120.1 128.9 133.3

Retained Earnings (26.8) (42.4) (32.9) (21.0) (4.7) 3.2

Treasury Stock - - - - - -

Comprehensive Inc. and Other 0.9 0.0 (0.6) 2.8 0.4 2.3

Total Common Equity (16.4) 67.7 83.2 101.9 124.7 138.8

Minority Interest 4.7 0.2 0.2 0.1 0.1 0.2

Total Equity 5.7 67.9 83.4 102.0 124.8 138.9

Total Liabilities And Equity 88.8 129.8 140.9 215.9 238.8 298.1

48

Annual Cash Flow Statement


Annual Cash Flow Statement

For the Fiscal Period Ending 12 months

Dec-31-2009

12 months

Dec-31-2010

12 months

Dec-31-2011

12 months

Dec-31-2012

12 months

Dec-31-2013

LTM

12 months

Jun-30-2014

Net Income (19.9) (15.6) 9.5 11.9 16.3 15.6

Depreciation & Amort. 10.5 15.0 14.6 14.7 16.7 20.2

Amort. of Goodwill and Intangibles 2.0 - - 2.5 4.0 4.4

Depreciation & Amort., Total 12.6 15.0 14.6 17.2 20.7 24.6

Other Amortization 0.4 0.1 0.1 0.4 0.9 0.9

(Gain) Loss From Sale Of Assets 0.1 0.3 (0.2) (0.1) 0.1 (0.1)

Asset Writedown & Restructuring Costs 2.9 - - - 0.5 0.5

Stock-Based Compensation 0.3 0.4 1.5 2.5 3.0 3.8

Other Operating Activities 20.5 16.1 (2.8) (1.2) (2.6) (2.3)

Change in Acc. Receivable 3.7 (3.2) (10.3) (0.9) (5.5) (16.7)

Change in Acc. Payable 0.6 0.9 0.4 (0.3) 1.4 (13.0)

Change in Unearned Rev. (0.5) 0 0.4 (4.3) (3.4) (0.6)

Change in Other Net Operating Assets 5.6 5.9 3.3 7.1 (3.4) 16.0

Cash from Ops. 26.2 19.9 16.6 32.3 28.0 28.6

Capital Expenditure (10.2) (13.5) (19.2) (21.9) (30.2) (30.8)

Sale of Property, Plant, and Equipment 0.1 0.0 0.2 0.4 0.5 1.1

Cash Acquisitions - - - (42.6) (0.1) (23.3)

Divestitures - - - - - -

Invest. in Marketable & Equity Securt. - - - - - -

Net (Inc.) Dec. in Loans Originated/Sold - - - - - -

Other Investing Activities (9.2) - 10.0 (2.7) 1.0 0.7

Cash from Investing (19.3) (13.4) (9.0) (66.8) (28.8) (52.2)

Short Term Debt Issued - - - - - -

Long-Term Debt Issued 35.0 11.1 0.1 47.2 5.5 -

Total Debt Issued 35.0 11.1 0.1 47.2 5.5 35.5

Short Term Debt Repaid - - - - - -

Long-Term Debt Repaid (40.4) (8.8) (8.8) (9.2) (7.2) -

Total Debt Repaid (40.4) (8.8) (8.8) (9.2) (7.2) (6.7)

Issuance of Common Stock 0.1 36.4 4.6 0.9 5.0 5.2

Repurchase of Common Stock - - - (0.1) - -

Pref. Dividends Paid - (0.2) - - - -

Total Dividends Paid - (0.2) - - - -

Special Dividend Paid - - - - - -

Other Financing Activities (5.5) (5.0) (0.2) (1.2) (0.1) 0.6

Cash from Financing (10.8) 33.5 (4.3) 37.7 3.2 34.5

Foreign Exchange Rate Adj. (0.1) (0.9) (0.6) 3.4 (2.3) 1.5

Net Change in Cash (4.0) 39.1 2.7 6.6 0.1 12.4

49

Quarterly Income Statement


Quaterly Income Statement

For the Fiscal Period Ending

3 months

Q1

Mar-31-2012

3 months

Q2

Jun-30-2012

3 months

Q3

Sep-30-2012

3 months

Q4

Dec-31-2012

3 months

Q1

Mar-31-2013

3 months

Q2

Jun-30-2013

3 months

Q3

Sep-30-2013

3 months

Q4

Dec-31-2013

3 months

Q1

Mar-31-2014

3 months

Q2

Jun-30-2014

Revenue 31.2 33.2 47.9 49.3 52.8 51.3 56.9 59.7 75.0 80.7

Other Revenue - - - - - - - - - -

Total Revenue 31.2 33.2 47.9 49.3 52.8 51.3 56.9 59.7 75.0 80.7

Cost Of Goods Sold 14.2 15.2 24.9 26.9 29.1 25.9 31.1 32.7 46.5 45.7

Gross Profit 17.0 18.1 23.1 22.4 23.7 25.4 25.7 27.0 28.5 35.0

Selling General & Admin Exp. 8.2 9.6 11.3 9.8 12.5 12.6 11.2 12.2 14.0 17.3

R & D Exp. - - - - - - - - - -

Depreciation & Amort. 3.9 3.8 4.8 5.0 5.0 5.2 5.5 5.4 6.8 7.3

Other Operating Expense/(Income) - - - - - - - - - -

Other Operating Exp., Total 12.1 13.4 16.2 14.7 17.5 17.8 16.6 17.5 20.8 24.6

Operating Income 4.9 4.7 6.9 7.7 6.2 7.6 9.1 9.5 7.7 10.4

Interest Expense (0.2) (0.1) (0.6) (0.6) (0.5) (0.4) (0.4) (0.9) (0.5) (0.6)

Interest and Invest. Income - - - - - - - - - -

Net Interest Exp. (0.2) (0.1) (0.6) (0.6) (0.5) (0.4) (0.4) (0.9) (0.5) (0.6)

Other Non-Operating Inc. (Exp.) (0.1) 0.2 (0.3) (0.3) 0.6 0.3 (0.9) (0.3) 0.7 (0.1)

EBT Excl. Unusual Items 4.6 4.8 6.0 6.7 6.3 7.5 7.8 8.3 7.9 9.8

Merger & Related Restruct. Charges - - - (1.4) - - (2.8) (1.3) (2.3) (0.6)

Impairment of Goodwill - - - - - - - - - -

Other Unusual Items - - - - - - - - - -

EBT Incl. Unusual Items 4.6 4.8 6.0 5.3 6.3 7.5 5.0 7.0 5.5 9.2

Income Tax Expense 2.1 1.9 2.8 1.9 2.5 2.6 2.6 1.5 3.2 3.4

Earnings from Cont. Ops. 2.5 2.9 3.2 3.5 3.8 4.9 2.4 5.4 2.3 5.7

Earnings of Discontinued Ops. - - - - - - - - - -

Extraord. Item & Account. Change - - - - - - - - - -

Net Income to Company 2.5 2.9 3.2 3.5 3.8 4.9 2.4 5.4 2.3 5.7

Minority Int. in Earnings (0.1) 0 0.1 (0.1) 0 (0.1) (0.1) (0.1) (0.1) (0.1)

Net Income 2.4 2.9 3.2 3.4 3.7 4.9 2.3 5.4 2.2 5.7

50

Quarterly Balance Sheet


Quaterly Balance Sheet

Balance Sheet as of: Q1

Mar-31-2012

Q2

Jun-30-2012

Q3

Sep-30-2012

Q4

Dec-31-2012

Q1

Mar-31-2013

Q2

Jun-30-2013

Q3

Sep-30-2013

Q4

Dec-31-2013

Q1

Mar-31-2014

Q2

Jun-30-2014

ASSETS

Cash And Equivalents 52.8 52.0 53.7 59.7 54.7 48.6 49.6 59.8 66.7 61.0

Total Cash & ST Investments 52.8 52.0 53.7 59.7 54.7 48.6 49.6 59.8 66.7 61.0

Accounts Receivable 24.4 24.8 43.6 40.0 40.2 46.3 47.2 45.4 65.1 83.0

Total Receivables 24.4 24.8 43.6 40.0 40.2 46.3 47.2 45.4 65.1 83.0

Prepaid Exp. 4.9 4.9 3.8 6.2 9.1 9.0 12.3 14.2 13.6 12.8

Restricted Cash - - 0.8 1.0 1.2 0.9 0.8 0.5 0.9 0.5

Other Current Assets - - - - - - - - - -

Total Current Assets 82.2 81.7 101.9 107.0 105.2 104.8 109.9 120.0 146.4 157.3

Gross Property, Plant & Equipment - - - 126.9 - - - 155.8 - -

Accumulated Depreciation - - - (80.2) - - - (96.7) - -

Net Property, Plant & Equipment 35.2 36.0 45.3 46.7 48.9 52.7 57.2 59.1 73.4 76.3

Goodwill 13.9 13.8 33.8 34.5 33.0 32.9 34.1 34.5 34.7 35.2

Other Intangibles 5.6 5.3 22.2 21.2 19.3 18.3 18.3 17.6 21.2 20.7

Deferred Tax Assets, LT 6.0 6.2 4.5 1.1 5.1 5.7 5.5 3.8 7.1 7.8

Other Long-Term Assets - - 2.1 5.5 1.3 1.3 1.3 3.9 0.9 1.0

Total Assets 142.9 143.0 209.8 215.9 212.8 215.6 226.4 238.8 283.8 298.1

LIABILITIES

Accounts Payable 5.7 5.9 10.4 11.8 13.4 14.0 12.4 13.7 21.5 16.4

Accrued Exp. 6.2 6.2 8.0 8.7 9.0 8.5 13.6 12.9 21.2 25.3

Curr. Port. of LT Debt 8.7 8.7 9.4 9.4 9.4 9.4 9.4 8.4 8.4 8.4

Curr. Income Taxes Payable 5.4 3.8 3.7 5.5 5.0 4.2 2.9 4.4 4.2 2.9

Unearned Revenue, Current 1.4 1.5 7.1 6.8 3.8 3.7 3.5 2.9 3.5 7.0

Other Current Liabilities - - - - - - - - - -

Total Current Liabilities 27.3 26.1 38.6 42.2 40.6 39.8 41.8 42.3 58.8 60.0

Long-Term Debt 12.6 10.4 54.2 51.9 49.5 47.1 44.8 51.2 74.1 76.9

Unearned Revenue, Non-Current 0.4 0.4 0.4 0.3 0.3 0.4 0.4 0.6 0.5 0.9

Def. Tax Liability, Non-Curr. 0.0 0.0 2.6 1.6 1.4 1.4 1.6 0.7 0.7 0.8

Other Non-Current Liabilities 15.1 16.0 17.4 18.0 18.8 19.7 20.5 19.2 19.6 20.6

Total Liabilities 55.5 53.0 113.1 114.0 110.5 108.4 109.1 114.0 153.8 159.2

Pref. Stock, Convertible - - - - - - - - - -

Total Pref. Equity - - - - - - - - - -

Common Stock 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Additional Paid In Capital 117.3 118.3 119.2 120.1 121.3 122.7 127.0 128.9 131.1 133.3

Retained Earnings (30.5) (27.7) (24.4) (21.0) (17.3) (12.4) (10.1) (4.7) (2.5) 3.2

Treasury Stock - - - - - - - - - -

Comprehensive Inc. and Other 0.5 (0.8) 1.8 2.8 (1.8) (3.2) 0.3 0.4 1.4 2.3

Total Common Equity 87.3 89.9 96.6 101.9 102.3 107.1 117.2 124.7 130.0 138.8

Minority Interest 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2

Total Equity 87.4 90.0 96.7 102.0 102.3 107.2 117.3 124.8 130.1 138.9

Total Liabilities And Equity 142.9 143.0 209.8 215.9 212.8 215.6 226.4 238.8 283.8 298.1

51

Quarterly Cash Flow Statement


Quaterly Cash Flow


3 months

Q1

Mar-31-2012

3 months

Q2

Jun-30-2012

3 months

Q3

Sep-30-2012

3 months

Q4

Dec-31-2012

3 months

Q1

Mar-31-2013

3 months

Q2

Jun-30-2013

3 months

Q3

Sep-30-2013

3 months

Q4

Dec-31-2013

3 months

Q1

Mar-31-2014

3 months

Q2

Jun-30-2014

Net Income 2.4 2.9 3.2 3.4 3.7 4.9 2.3 5.4 2.2 5.7

Depreciation & Amort. 3.6 3.5 3.7 3.9 3.9 4.2 4.4 4.2 5.5 6.1

Amort. of Goodwill and Intangibles 0.3 0.3 1.1 0.8 1.1 1.0 1.1 0.8 1.3 1.2

Depreciation & Amort., Total 3.9 3.8 4.8 4.6 5.0 5.2 5.5 5.1 6.8 7.3

Other Amortization 0.0 0.0 0.0 0.4 0.0 0 0.1 0.7 0.1 0.0

Minority Int. in Earnings - - - - - - - - - -

(Gain) Loss From Sale Of Assets (0.1) 0 (0.1) 0.0 0.0 0.0 0.1 (0.1) (0.1) 0

Asset Writedown & Restructuring Costs - - - - - - - 0.5 - -

Stock-Based Compensation 0.6 0.7 0.6 0.6 0.8 0.7 0.7 0.7 1.1 1.2

Other Operating Activities 1.0 (1.3) 5.8 (6.7) (0.2) (0.2) (0.4) (1.6) 0.3 (0.5)

Change in Acc. Receivable 1.5 0.3 (7.9) 5.2 (1.1) (6.6) 0 2.1 0.9 (19.7)

Change in Acc. Payable 1.2 (1.0) (2.0) 1.4 0.9 1.6 (3.8) 2.8 (0.9) (11.1)

Change in Unearned Rev. (0.3) 0.1 (3.8) (0.4) (2.7) 0.1 (0.4) (0.4) (3.0) 3.2

Change in Other Net Operating Assets (2.6) 0.5 3.0 6.3 (2.6) (0.1) 1.9 (2.5) 7.6 9.0

Cash from Ops. 7.7 6.1 3.7 14.8 3.9 5.6 5.9 12.7 15.1 (5.0)

Capital Expenditure (7.1) (3.6) (5.9) (5.3) (5.6) (9.6) (6.9) (8.1) (9.4) (6.4)

Sale of Property, Plant, and Equipment 0.2 0.0 0.2 0.0 0.1 0.0 0.0 0.4 0.7 0.0

Cash Acquisitions - - (40.5) (2.0) (0.1) 0 0 0 (23.3) 0

Divestitures - - - - - - - - - -

Invest. in Marketable & Equity Securt. - - - - - - - - - -

Net (Inc.) Dec. in Loans Originated/Sold - - - - - - - - - -

Other Investing Activities - - (2.9) 0.2 0.3 0.3 0.0 0.3 0 0.4

Cash from Investing (6.9) (3.6) (49.2) (7.1) (5.3) (9.3) (6.9) (7.5) (31.9) (5.9)

Short Term Debt Issued - - - - - - - - - -

Long-Term Debt Issued - - - - - - - - 25.0 -

Total Debt Issued - - 47.2 0 - - - 5.5 25.0 5.0

Short Term Debt Repaid - - - - - - - - - -

Long-Term Debt Repaid (2.2) - - - (2.4) - - - (2.2) -

Total Debt Repaid (2.2) (2.2) (2.4) (2.4) (2.4) (2.3) (2.4) 0.0 (2.2) (2.2)

Issuance of Common Stock 0.0 0.4 0.3 0.2 0.5 0.7 3.6 0.3 0.8 0.6

Repurchase of Common Stock - (0.1) 0 - - - - - - -

Pref. Dividends Paid - - - - - - - - - -

Total Dividends Paid - - - - - - - - - -

Special Dividend Paid - - - - - - - - - -

Other Financing Activities (0.1) 0.0 (0.6) (0.5) (0.1) (0.1) (0.1) 0.2 0.0 0.5

Cash from Financing (2.3) (1.9) 44.6 (2.7) (2.0) (1.7) 1.0 5.9 23.7 3.9

Foreign Exchange Rate Adj. 1.1 (1.3) 2.6 1.0 (1.6) (0.7) 0.9 (0.9) 0.2 1.3

Net Change in Cash (0.3) (0.8) 1.7 6.1 (5.0) (6.1) 1.0 10.2 6.9 (5.7)

52

Multiple History


Multiples Detail

Mar-30-2012 Jun-29-2012 Sep-28-2012 Dec-31-2012 Mar-28-2013 Jun-28-2013 Sep-30-2013 Dec-31-2013 Mar-31-2014 Jun-30-2014

TEV/LTM Total Revenue Average 2.20x 1.99x 2.06x 2.13x 2.35x 2.26x 2.57x 3.34x 3.91x 3.80x

High 2.29x 2.34x 2.31x 2.35x 2.51x 2.44x 3.02x 3.95x 4.37x 4.22x

Low 2.04x 1.76x 1.92x 1.70x 2.04x 2.10x 2.17x 2.87x 3.47x 3.36x

Close 2.21x 2.06x 2.09x 2.32x 2.45x 2.24x 2.92x 3.95x 4.23x 3.96x

TEV/LTM EBITDA Average 7.44x 6.87x 7.19x 7.75x 8.85x 9.20x 10.78x 13.87x 16.23x 16.11x

High 7.96x 8.13x 7.96x 8.70x 9.58x 9.76x 12.66x 16.34x 18.19x 17.57x

Low 6.82x 6.07x 6.77x 6.50x 7.98x 8.79x 9.08x 12.03x 14.35x 14.46x


TEV/NTM EBITDA Average 5.85x 5.34x 5.54x 5.66x 6.48x 6.89x 8.27x 10.94x 12.21x 11.54x

High 6.16x 6.24x 6.25x 6.24x 7.04x 7.40x 9.82x 12.69x 13.55x 12.37x

Low 5.34x 4.77x 4.95x 4.71x 5.94x 6.46x 6.91x 9.33x 11.15x 10.54x


TEV/LTM EBIT Average 13.92x 12.56x 12.82x 13.59x 15.34x 15.78x 18.36x 23.24x 26.95x 26.65x

High 14.83x 15.15x 14.33x 15.15x 16.39x 16.76x 21.45x 27.21x 31.52x 28.83x

Low 12.79x 10.93x 12.00x 11.57x 13.66x 15.05x 15.38x 20.38x 23.90x 24.09x


P/LTM EPS Average 92.71x 25.87x 24.48x 28.18x 33.72x 32.89x 36.43x 48.01x 55.96x 57.50x

High 122.73x 32.42x 27.77x 33.29x 35.71x 35.51x 42.12x 57.75x 60.20x 65.00x

Low 29.89x 21.87x 22.67x 23.27x 30.40x 30.76x 30.03x 39.99x 50.70x 49.82x


P/Tangible BV Average 4.23x 3.86x 4.02x 5.99x 8.06x 8.01x 9.19x 11.08x 12.31x 11.81x

High 4.40x 4.49x 4.42x 7.96x 8.54x 8.46x 10.75x 12.61x 13.52x 12.76x

Low 3.96x 3.48x 3.80x 3.87x 7.24x 7.61x 7.66x 10.14x 11.07x 10.67x


TEV/LTM Unlevered FCF Average 104.05x 187.96x 168.88x 174.93x 38.30x 45.66x 53.07x 114.74x 123.59x 255.03x

High 201.21x 205.55x 177.75x 180.54x 42.40x 51.76x 56.25x 129.74x 135.12x 276.28x

Low 64.08x 173.01x 162.53x 167.42x 35.34x 38.92x 48.79x 104.44x 113.99x 234.32x

Close 193.77x NM 176.46x NM 42.40x 49.74x NM 129.74x NM 276.28x

For Quarter Ending

53

Capital Structure Summary


Capital Structure Data


Units Millions % of Total Millions % of Total Millions % of Total Millions % of Total

Total Debt 54.2 31.6% 59.6 32.3% 82.5 38.8% 85.3 38.0%

Total Common Equity 117.2 68.4% 124.7 67.6% 130.0 61.2% 138.8 61.9%

Total Minority Interest 0.1 0.0% 0.1 0.1% 0.1 0.0% 0.2 0.1%

Total Capital 171.5 100.0% 184.4 100.0% 212.5 100.0% 224.3 100.0%

3 months Q3

Sep-30-2013

3 months Q4

Dec-31-2013

3 months Q1

Mar-31-2014

3 months Q2

Jun-30-2014

Debt Capitalization

FY 2013 (Dec-31-2013) Capital Structure As Reported Details

Description Type Principal Due (USD)

Coupon/Base

Rate Floating Rate Maturity Seniority Secured

Equipment

Notes

Bonds and Notes - 5.500% NA May-09-2011 Senior Yes

Revolving Loan Revolving Credit - 2.200% NA - Senior Yes

Term Loan Term Loans 59.5 2.200% LIBOR + 2.500% Oct-01-2018 Senior Yes

54

Ratios & Growth


Ratios


3 months

Q1

Mar-31-2012

3 months

Q2

Jun-30-2012

3 months

Q3

Sep-30-2012

3 months

Q4

Dec-31-2012

3 months

Q1

Mar-31-2013

3 months

Q2

Jun-30-2013

3 months

Q3

Sep-30-2013

3 months

Q4

Dec-31-2013

3 months

Q1

Mar-31-2014

3 months

Q2

Jun-30-2014

Profitability

Return on Assets % 8.6% 8.2% 9.8% 9.0% 7.2% 8.9% 10.3% 10.2% 7.4% 8.9%

Return on Capital % 11.4% 10.7% 12.9% 11.8% 9.5% 11.7% 13.6% 13.3% 9.7% 11.9%

Return on Equity % 11.7% 12.9% 13.6% 14.1% 14.8% 18.8% 8.6% 18.0% 7.2% 17.1%

Return on Common Equity % 11.3% 12.9% 13.9% 13.6% 14.6% 18.6% 8.4% 17.8% 6.9% 16.9%

Margin Analysis

Gross Margin % 54.6% 54.4% 48.2% 45.5% 44.9% 49.5% 45.2% 45.2% 38.0% 43.4%

SG&A Margin % 26.3% 28.8% 23.6% 19.8% 23.8% 24.5% 19.7% 20.4% 18.7% 21.5%

EBITDA Margin % 28.3% 25.5% 24.6% 24.9% 21.1% 25.0% 25.6% 24.3% 19.3% 21.9%

EBIT Margin % 15.7% 14.1% 14.5% 15.5% 11.7% 14.8% 16.0% 15.9% 10.2% 12.9%

Earnings from Cont. Ops Margin % 8.0% 8.6% 6.6% 7.1% 7.1% 9.6% 4.2% 9.1% 3.1% 7.1%

Net Income Margin % 7.7% 8.6% 6.8% 6.9% 7.1% 9.5% 4.1% 9.0% 2.9% 7.0%

Growth Over Prior Year

Total Revenue 27.6% 26.9% 65.9% 65.4% 69.2% 54.4% 18.6% 21.2% 42.1% 57.1%

Gross Profit 28.1% 22.2% 44.8% 34.3% 39.2% 40.5% 11.4% 20.6% 20.4% 37.8%

EBITDA 34.4% 6.5% 33.8% 56.6% 26.3% 51.3% 23.5% 18.2% 29.9% 37.6%

EBITA 55.0% 6.6% 49.2% 92.4% 40.1% 72.5% 26.8% 22.2% 23.4% 34.9%

EBIT 60.4% 7.1% 36.4% 74.8% 26.2% 62.2% 31.0% 23.8% 24.4% 36.8%

Earnings from Cont. Ops. 10,743.5% 30.0% (42.0%) 70.1% 51.4% 71.8% (24.1%) 55.9% (38.9%) 16.9%

Net Income NM 34.6% (40.6%) 71.3% 54.9% 70.4% (27.5%) 59.6% (41.2%) 16.6%

Normalized Net Income 84.4% 19.0% 18.4% 52.6% 38.1% 54.4% 26.3% 25.5% 23.3% 30.7%

Diluted EPS before Extra NM 30.8% (40.6%) 65.3% 57.1% 64.7% (31.6%) 51.3% (45.5%) 10.7%

Accounts Receivable 49.4% 34.0% 107.3% 51.9% 64.5% 86.6% 8.2% 13.4% 62.1% 79.4%

Inventory NA NA NA NA NA NA NA NA NA NA

Net PP&E 27.6% 20.0% 46.7% 42.9% 38.9% 46.4% 26.3% 26.6% 50.3% 44.8%

Total Assets 5.1% 4.4% 52.9% 53.2% 48.9% 50.8% 7.9% 10.6% 33.4% 38.3%

Tangible Book Value 26.4% 24.9% (34.1%) (27.5%) (26.2%) (21.1%) 59.4% 57.4% 48.1% 48.5%

Common Equity 17.7% 16.5% 18.4% 22.4% 17.2% 19.2% 21.3% 22.4% 27.1% 29.6%

Cash from Ops. 57.6% 47.2% (39.0%) 847.9% (49.7%) (7.8%) 60.4% (14.2%) 287.0% NM

Capital Expenditures 137.3% (41.5%) 3.1% 21.6% (21.2%) 165.5% 16.3% 54.8% 68.4% (33.5%)

55

Solvency


Ratios


3 months

Q1

Mar-31-2012

3 months

Q2

Jun-30-2012

3 months

Q3

Sep-30-2012

3 months

Q4

Dec-31-2012

3 months

Q1

Mar-31-2013

3 months

Q2

Jun-30-2013

3 months

Q3

Sep-30-2013

3 months

Q4

Dec-31-2013

3 months

Q1

Mar-31-2014

3 months

Q2

Jun-30-2014

Asset Turnover

Total Asset Turnover 0.9x 0.9x 1.1x 0.9x 1.0x 1.0x 1.0x 1.0x 1.1x 1.1x

Fixed Asset Turnover 3.7x 3.7x 4.7x 4.3x 4.4x 4.0x 4.1x 4.1x 4.5x 4.3x

Accounts Receivable Turnover 4.9x 5.4x 5.6x 4.7x 5.3x 4.7x 4.9x 5.2x 5.4x 4.4x

Inventory Turnover NA NA NA NA NA NA NA NA NA NA

Short Term Liquidity

Current Ratio 3.0x 3.1x 2.6x 2.5x 2.6x 2.6x 2.6x 2.8x 2.5x 2.6x

Quick Ratio 2.8x 2.9x 2.5x 2.4x 2.3x 2.4x 2.3x 2.5x 2.2x 2.4x

Cash from Ops. to Curr. Liab. 1.1x 0.9x 0.4x 1.4x 0.4x 0.6x 0.6x 1.2x 1.0x NM

Avg. Days Sales Out. 74.0 67.4 65.7 78.1 68.3 76.7 75.6 71.3 66.3 83.6

Avg. Days Payable Out. 35.7 34.8 30.1 37.8 38.9 48.1 39.0 36.7 34.1 37.8

Long Term Solvency

LT Debt/Equity 14.4% 11.6% 56.0% 50.9% 48.4% 44.0% 38.2% 41.0% 56.9% 55.4%

LT Debt/Capital 11.6% 9.5% 33.8% 31.8% 30.7% 28.8% 26.1% 27.8% 34.9% 34.3%

Total Liabilities/Total Assets 38.8% 37.0% 53.9% 52.8% 51.9% 50.3% 48.2% 47.7% 54.2% 53.4%

EBITDA / Interest Exp. 47.2x 65.8x 19.3x 19.7x 22.0x 29.2x 33.6x 16.1x 30.1x 31.3x

(EBITDA-CAPEX) / Interest Exp. 9.4x 37.8x 9.6x 11.3x 11.0x 7.4x 17.7x 7.1x 10.6x 20.0x

Total Debt/EBITDA 0.6x 0.6x 1.3x 1.2x 1.3x 1.1x 0.9x 1.0x 1.4x 1.2x

Net Debt/EBITDA NM NM 0.2x 0.0x 0.1x 0.2x 0.1x NM 0.3x 0.3x

56

Long-Term Historical Growth


Ratios


3 months

Q1

Mar-31-2012

3 months

Q2

Jun-30-2012

3 months

Q3

Sep-30-2012

3 months

Q4

Dec-31-2012

3 months

Q1

Mar-31-2013

3 months

Q2

Jun-30-2013

3 months

Q3

Sep-30-2013

3 months

Q4

Dec-31-2013

3 months

Q1

Mar-31-2014

3 months

Q2

Jun-30-2014

Compound Annual Growth Rate Over Two Years

Total Revenue 19.6% 21.4% 40.6% 42.4% 46.9% 40.0% 40.2% 41.6% 55.1% 55.8%

Gross Profit 21.4% 22.3% 29.7% 30.9% 33.5% 31.0% 27.0% 27.3% 29.4% 39.1%

EBITDA 23.2% 12.9% 25.7% 14.0% 30.3% 26.9% 28.5% 36.1% 28.1% 44.3%

EBITA 66.9% 14.2% 35.3% 16.1% 47.3% 35.6% 37.5% 53.3% 31.5% 52.5%

EBIT 62.0% 28.8% 33.5% 14.7% 42.3% 31.8% 33.7% 47.1% 25.3% 49.0%

Earnings from Cont. Ops. NM NM 156.6% NM 1,181.1% 49.4% (33.7%) 62.9% (3.8%) 41.7%

Net Income NM NM 173.5% NM NM 51.4% (34.4%) 65.4% (4.6%) 40.9%


Diluted EPS before Extra NM NM NM NM NM 46.8% (36.3%) 58.1% (7.4%) 35.0%

Accounts Receivable NA 21.9% 65.3% 58.3% 56.7% 58.2% 49.8% 31.2% 63.3% 83.0%

Inventory NA NA NA NA NA NA NA NA NA NA

Net PP&E NA 17.1% 32.5% 33.0% 33.1% 32.5% 36.1% 34.5% 44.5% 45.6%

Total Assets NA 28.7% 50.0% 29.0% 25.1% 25.5% 28.4% 30.2% 40.9% 44.4%

Tangible Book Value NM NM NM (1.0%) (3.4%) (0.8%) 2.5% 6.8% 4.6% 8.2%

Common Equity NM NM NM 22.7% 17.4% 17.8% 19.9% 22.4% 22.0% 24.3%

Cash from Ops. 29.9% 23.2% (23.3%) 70.6% (11.0%) 16.5% (1.1%) 185.1% 39.5% NM

Capital Expenditures 33.5% 17.8% 40.1% 16.2% 36.8% 24.7% 9.5% 37.2% 15.2% 32.9%

Compound Annual Growth Rate Over Three Years

Total Revenue 15.2% 17.6% 33.8% 34.9% 34.3% 31.5% 32.9% 34.9% 45.3% 45.5%

Gross Profit 13.8% 16.1% 25.9% 26.4% 27.1% 28.1% 23.3% 27.4% 29.0% 33.2%

EBITDA 5.5% 4.2% 19.6% 32.9% 24.2% 24.5% 25.0% 15.4% 30.2% 30.4%

EBITA 1.8% 0.3% 23.8% 49.9% 57.4% 31.0% 32.4% 18.1% 38.9% 35.4%

EBIT 4.2% 2.6% 24.0% 49.7% 49.0% 39.1% 32.7% 17.7% 36.0% 33.4%

Earnings from Cont. Ops. NM NM NM NM NM NM 70.9% NM 364.7% 37.7%

Net Income NM NM NM NM NM NM 75.7% NM NM 38.8%


Accounts Receivable NA NA NA 46.5% NA 40.5% 43.5% 41.6% 58.5% 65.0%

Net PP&E NA NA NA 20.0% NA 26.2% 30.4% 30.8% 38.6% 36.5%

Total Assets NA NA NA 34.5% NA 35.7% 34.4% 22.5% 27.8% 29.6%

Tangible Book Value 160.6% NA NA NM NM NM NM 15.5% 11.4% 13.5%

Common Equity 183.6% NA NA NM NM NM NM 22.6% 20.6% 21.6%

Cash from Ops. 1.6% (6.4%) (22.6%) 61.0% (5.3%) 11.9% (2.0%) 35.7% 45.3% NM

Capital Expenditures 48.5% 18.7% 29.1% 19.3% 12.0% 54.5% 31.7% 27.8% 46.6% 1.1%

57

Land Rig Projections


58

UDW Projections


59

Different Rig Usage & Day Rates


60

Rig Costs


61

Offshore Rig Utilization by Type


Drillship fleet >80(2013) more than double the size of the fleet in 2009

62

Current Offshore Rig Utilization


63

Tables-Offshore Utilization by Region


64

Tables-Offshore Utilization by Region


65

Worldwide Offshore Utilization


66

Worldwide Drillship & Semisubmersible Utilization


67

Gulf of Mexico Microwave/WiMAX


68

U.S. Onshore Service Centers


69

Brad Alexander


Corporate Development

Focuses on new growth opportunities and potential

acquisitions

Spent past decade with Texas based energy banks

Brought in 2011

70

Jim Crenshaw


Manages RigNet’s offshore and onshore business segments in Western

Hemisphere

Previous

Region engineering manager, North America for Weatherford Secure

Drilling Services

Halliburton

Baker Hughes

Joined in 2013

71

Chad Winkle


Enterprise experience with CenturyLink

Works to provide customized communications

Joined in 2011

72

Pal Jensen


Headed the Maritime division of Harris CapRock

Worked at Harris CapRock for over a decade

Left Harris CapRock for RigNet in September 2014

73

Brian Keefover


20+ years of Oil & Gas experience serving telecom and satellite

industry

Worked for Schlumberger

Left Harris CapRock for RigNet in 2008

74

Mauricio Rubinsztajn


Lead Business expansion into Brazil

Left Harris CapRock for RigNet in 2011

75

Alert Logic


Network security monitor for external and internal vulnerabilities

Collects and manages log data

Eliminate subcontractor network integration issues

76

Tunnel Radio™


77

MetOcean Systems


Accurate, reliable weather measurement and processing

Turnkey Meteorological and Oceanographic Monitoring system

Chosen by UK O/G industry to operate Helimet system

78

SnapTV


Leading vendor of IPTV solutions within managed networks

IP-based infotainment and video management solutions

IPTV, video on demand, recording services, and subscription services

Crew Morale Health & SafetyManagement &

Monitoring

79

TurboNet (Riverbed SteelHead)


WAN accelerator

Reduces communication “chatter” between server locations

Accelerates data communication over a WAN

Lowers bandwidth usage

Traditional

Clien

t

Serv

er

SteelHead

Clien

t

Serv

er

80

IP/MPLS

IP (Internet Protocol)

Data broken into packets and sent through routers to destination

where they are reassembled

Each router makes own calculations to determine the next router in

chain

MPLS (Multiprotocol Label Switching)

First router determines entire path to destination through specific

routers

Attaches a “label” with path for each router to read

“Label is removed at destination and packets are reassembled

Advantages

Frees up processing time on core router

More efficient and cost effective

Can route packets around highly trafficked routers to speed up

communication


Internet Protocol/Multiprotocol Label Switching

81

VSAT


Very Small Aperture Terminal

82

Microwave / WiMAX

Worldwide Interoperability for Microwave Access


83

MSS


Versatile

Highly mobile

Voice, internet access, and file transfer

Designed to withstand adverse conditions

Use of Ku, C, and L-band terminals

Inmarsat distribution deal

L-band

Global Handheld Satellite Phone

(IsatPhone Pro)

BGAN

FleetBroadband

Mobile Satellite Services

84

M2M


Machine to MachineInternet of things

Communication between technology regardless of wired or

wireless connection

Allows less support infrastructure requirements on pipelines

85

SCADA


Supervisory Control and Data AcquisitionType of Industrial Control System (ICS) that monitors and controls industrial operations

Provides sensory data acquisition and remote control operations

Uses M2M to share information across long distances of connected operations

Ex. Pipelines

Connects to communication networks with VSAT in remote locations

86

Oil Segment Performance


RigNet Inc (RNET US) - By MeasureIn Millions of USD except Per Share FY 2008 % FY 2009 % FY 2010 % FY 2011 %

12 Months Ending 2008-12-31 2009-12-31 2010-12-31 2011-12-31

Revenue 89.9 100.0 80.9 100.0 92.9 100.0 109.4 100.0

Corporate Adjustments 0.1 -1.1 -0.3 -0.3

Eastern Hemisphere 54.6 60.7 60.9 74.3 61.4 65.8 68.2 62.1

U.S. Land 23.0 25.6 9.9 12.0 12.8 13.8 19.3 17.6

Western Hemisphere 12.2 13.6 11.2 13.7 19.0 20.4 22.2 20.2

Cost of Revenue 38.3 100.0 33.3 100.0 42.5 100.0 48.6 100.0

Reconciliation -- -- 2.6 2.7


U.S. Land 9.0 23.5 5.2 15.6 6.9 17.4 9.9 21.6


Gross Profit 51.5 100.0 48.7 100.0 53.4 100.0 63.7 100.0


U.S. Land 14.0 27.2 4.7 9.6 5.9 11.1 9.4 14.8


Operating Income 27.9 100.0 22.9 100.0 12.6 100.0 16.9 100.0

Reconciliation -- -- -13.9 -15.2


U.S. Land 6.5 23.5 -4.2 -18.3 0.2 0.8 3.7 11.7


Assets -- -- 129.8 100.0 140.9 100.0

Corporate Adjustments -- -- 4.6 -12.8

Eastern Hemisphere -- -- 45.0 36.0 67.3 43.8

U.S. Land -- -- 25.6 20.4 27.3 17.8

Western Hemisphere -- -- 54.6 43.6 59.0 38.4

Depreciation and Amortization 10.5 100.0 12.5 100.0 15.0 100.0 14.6 100.0

Reconciliation -- -- -0.1 -0.2


U.S. Land 3.3 31.7 3.2 25.6 3.1 20.7 1.9 12.6


Capital Expenditures -- -- -13.1 -19.8

Corporate Adjustments -- -- -0.1 -0.2

Eastern Hemisphere -- -- -6.5 50.2 -9.0 46.2

U.S. Land -- -- -1.0 7.4 -2.2 11.2

Western Hemisphere -- -- -5.5 42.4 -8.3 42.6

SG&A 13.2 100.0 10.4 100.0 11.8 100.0 16.9 100.0


U.S. Land 4.2 31.7 2.7 26.4 2.6 21.9 3.8 22.6


Source: Bloomberg

87

Oil Segment Performance


RigNet Inc (RNET US) - By SegmentIn Millions of USD except Per Share Q1 2012 Q2 2012 Q3 2012 Q1 2014 Q2 2014

3 Months Ending 2012-03-31 2012-06-30 2012-09-30 2014-03-31 2014-06-30

Western Hemisphere

Revenue 6.7 7.2 22.0 21.4 30.1

Operating Income 1.4 1.3 4.0 3.7 6.8

Assets 59.0 64.1 168.5 123.8 135.3

Depreciation and Amortization 1.4 1.2 1.8 2.8 2.7

Capital Expenditures -2.4 -1.3 -0.7 -3.7 -5.1

Gross Profit 3.5 3.8 8.4 8.7 13.5

Cost of Revenue 3.2 3.4 13.5 12.7 16.6

SG&A 0.7 1.2 2.7 2.3 4.0

Eastern Hemisphere

Revenue 19.4 21.1 12.9 38.0 39.8

Operating Income 7.9 8.0 6.2 13.6 13.5

Assets 42.8 44.4 38.9 130.6 142.0

Depreciation and Amortization 2.0 2.1 1.2 2.7 3.4

Capital Expenditures -3.0 -3.2 -1.7 -5.2 -5.7

Gross Profit 11.8 12.4 8.4 19.3 20.6

Cost of Revenue 7.6 8.7 4.5 18.7 19.2

SG&A 1.8 2.4 1.1 3.0 3.8

Corporate and Eliminations

Revenue -- -- -- 0.0 0.0

Operating Income -- -- -- -12.9 -12.0

Assets 14.0 7.0 -87.7 -36.1 -40.7

Depreciation and Amortization -- -- -- 0.3 0.3

Capital Expenditures -- 0.0 -0.1 -0.7 -0.5

Cost of Revenue -- -- -- 2.2 2.4

SG&A -- -- -- 10.4 9.3

Telecom Systems

Revenue -- -- -- 15.6 10.8

Operating Income -- -- -- 1.0 1.5

Assets -- -- -- 65.5 61.6

Depreciation and Amortization -- -- -- 1.1 1.0

Capital Expenditures -- -- -- 0.0 -0.4

Gross Profit -- -- -- 2.7 3.3

Cost of Revenue -- -- -- 12.9 7.5

SG&A -- -- -- 0.7 0.8

U.S. Land

Revenue 5.1 5.0 13.1 -- --

Operating Income 1.3 1.4 3.4 -- --

Assets 27.2 27.5 90.1 -- --

Depreciation and Amortization 0.5 0.5 1.9 -- --

Capital Expenditures -0.6 -0.2 -2.6 -- --

Gross Profit 2.7 2.8 7.3 -- --

Cost of Revenue 2.4 2.2 5.8 -- --

SG&A 0.9 0.9 2.0 -- --

Source: Bloomberg

88

Exit Multiple Comps


Company Name Exchange:Ticker Industry Classifications

Market Capitalization [Latest]

($USDmm, Historical rate)

TEV/LTM EBITDA

[Latest] (x)

Total Revenues, 1

Yr Growth % [LTM]

(%) Business Description

Intelsat S.A. (NYSE:I) NYSE:I Telecommunication Services

(Primary)

1,699.7 8.46 (3.68) Provides satellite communications services w orldw ide, including transponder services;

managed services that combine satellite capacity, teleport facilities, satellite

communications hardw are, and other ground facilities to provide managed and monitored

broadband, Internet, video, and private netw ork services to customers

Enventis Corporation

(NasdaqGS:ENVE)

NasdaqGS:ENVE Telecommunication Services

(Primary)

263.5 8.45 (0.559) Provides integrated communication services to business and residential customers. It

operates through three segments: Fiber and Data, Equipment, and Telecom. Its operations

include Ethernet, private line, multiprotocol label sw itching netw orking, data center, Internet,

and hosted VoIP SingleLink services

Asia Satellite

Telecommunications

Holdings Limited

(SEHK:1135)

SEHK:1135 Telecommunication Services

(Primary)

1,309.3 7.14 (6.54) Engaged in the operation, maintenance, and provision of satellite telecommunication

systems for broadcasting and telecommunication applications in Hong Kong and

internationally. The company offers a range of telecommunication services, such as voice

netw orks, private VSAT netw orks, and broadband multimedia services to

telecommunications operators and end users. It also provides satellite capacity leasing

services that support broadcast, occasional service, telecommunications, and broadband

service applications; and satellite transmission services comprising space segment, f iber

links, signal dow nlink and turnaround, uplink, conditional access, and playout services in C

or Ku-band, as w ell as back up services

Inmarsat Plc (LSE:ISAT) LSE:ISAT Satellite Communication

Services (Primary);

Telecommunication Services

(Primary)

3,065.7 10.9 (1.55)

Provides mobile satellite communications services on land, at sea, and in the air w orldw ide.

The company supplies advanced mobile and fixed-site remote telecommunications

services; and provides customized turnkey remote telecommunications solutions, value-

added services, equipment, and engineering services to service providers and end-users

Samart Telcoms Public

Company Limited

(SET:SAMTEL)

SET:SAMTEL Telecommunication Services

(Primary)

400.4 8.54 2.63 Operates as a fully-integrated information and communication technology (ICT) services

provider in Thailand. It offers telecommunications, communication netw ork, and information

technology services on a range of netw ork, including the rental of high-speed, and satellite-

based communication netw ork iPSTAR and very small aperture terminal; high-speed

multimedia communication netw orks comprising leased line, frame relay, ATM, and w ireless

communication services; installation and maintenance services for telecommunication

netw ork system; and repair services for telecommunication and related electronic

equipment.

Mean 8.7

Adjusted Mean 8.48

Median 8.46

pitch rnet

Economy & Finance