Item 2.02. Results of Operations and Financial Condition.
On August 7, 2014, ORBCOMM Inc. ("ORBCOMM" or the "Company") released its
earnings for the second quarter 2014 and is furnishing a copy of the earnings
release to the Securities and Exchange Commission under Item 2.02 of this
Current Report on Form 8-K. The press release is attached herewith as Exhibit 99
and is incorporated herein by reference. In addition, the Company will discuss
its financial results during a webcast and teleconference call Thursday
August 7, 2014 at 10:30 a.m. (ET). To access the webcast and teleconference
call, go to the Company's website at www.orbcomm.com.
The information contained in Exhibit 99 shall not be deemed "filed" for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), or incorporated by reference in any filing under the Securities Act of
1933, as amended, or the Exchange Act, except as shall be expressly set forth by
specific reference in such filing.
EBITDA is defined as earnings attributable to the Company before interest income
(expense), provision for income taxes and depreciation and amortization. ORBCOMM
believes EBITDA is useful to its management and investors in evaluating
operating performance because it is one of the primary measures used to evaluate
the economic productivity of the Company's operations, including its ability to
obtain and maintain its customers, its ability to operate its business
effectively, the efficiency of its employees and the profitability associated
with their performance. It also helps ORBCOMM's management and investors to
meaningfully evaluate and compare the results of the Company's operations from
period to period on a consistent basis by removing the impact of its financing
transactions and the depreciation and amortization impact of capital investments
from its operating results. In addition, ORBCOMM management uses EBITDA in
presentations to its board of directors to enable it to have the same
measurement of operating performance used by management and for planning
purposes, including the preparation of the annual operating budget. The Company
also believes that EBITDA, adjusted for Stock-based compensation expense,
noncontrolling interests, impairment loss, non-capitalized satellite launch and
in-orbit insurance, insurance recovery, and acquisition-related costs is useful
to investors to evaluate the Company's core operating results and financial
performance and its capacity to fund capital expenditures, because it excludes
items that are significant non-cash expenses reflected in the Condensed
Consolidated Statements of Income. EBITDA and Adjusted EBITDA are not
performance measures calculated in accordance with accounting principles
generally accepted in the United States, or GAAP. While ORBCOMM considers EBITDA
and Adjusted EBITDA to be important measures of operating performance, they
should be considered in addition to, and not as a substitute for, or superior
to, Net Income or other measures of financial performance prepared in accordance
with GAAP and may be different than EBITDA and Adjusted EBITDA measures
presented by other companies.
Item 9.01. Financial Statements and Exhibits.
99 Press Release of the Company dated August 7, 2014.