Identiv (INVE) Reports $20M Refi and Offers Prelim Q4 Results

Identiv, Inc. (NASDAQ: INVE) today announced that it has entered into a $10.0 million term loan agreement with Western Technology Investment (WTI) and an up to $10.0 million asset-backed line-of-credit agreement through East West Bank’s Technology Banking Division (EWB). The proceeds of the refinancing have been used to retire existing debt. The Company also announced unaudited preliminary results for the fourth quarter of fiscal year 2016 at or above plan, with revenues in the range of $14.4M to $14.8M and adjusted EBITDA in excess of $0.7M.

"We’re very pleased to welcome WTI and East West Bank as partners going forward, as Identiv strengthens its position to provide highly secure, convenient access to all physical resources,” said Steven Humphreys, Identiv CEO. “After refocusing the Company in 2016, returning to positive adjusted EBITDA and re-establishing growth in our core business, we’re excited to have partners who share our long-term vision for the Company and the market. We are repaying debt that was due this year, replacing it with debt terms extending over the next two to three plus years. More importantly, we’ve replaced a lending partner which announced its intention to de-emphasize technology investing, with partners who are committed to technology and have expressed support for Identiv’s business opportunity. We believe this refinancing provides excellent operational flexibility, and represents a strong vote of confidence in our business model and our future growth prospects.”

The Company used the funds available under the financing agreements, together with approximately $0.2 million of cash on hand, to repay both the term loan and line-of-credit balances with Opus Bank. In connection with the transaction, the 400,000 Identiv warrants previously issued to Opus Bank have been canceled. The asset-backed line-of-credit agreement with EWB has a term of 24-months and includes a warrant to purchase 40,000 shares of the Company’s common stock, and the term loan agreement with WTI has a term of 42 months and includes a warrant to purchase 580,000 shares of the Company’s common stock.

“Through 2016 we’ve re-established our strong market position and our stable business platform, hitting our targets throughout the year while completing a thorough business alignment. This progress continued into the fourth quarter of 2016, and we’re pleased to report a preliminary revenue range for the fourth quarter of 2016 of $14.4M to $14.8M and adjusted EBITDA in excess of $0.7 million, both at or above our internal plans, representing solid year-over-year growth and business model improvement. Cash has been stable, closing the year above the $9M level,” added Humphreys. “Going forward, we believe our recently completed financing provides the strength and stability to focus our energy on driving our business’ growth and expanding our market position as we enter one of the most dynamic times in our industry, as all devices, sensors and access systems become interconnected, and as enterprises and individuals expect highly secure, convenient and business-enabling infrastructure. Our business focus now can be more directed to realizing our market potential.”

The preliminary results for the fourth quarter of 2016 are unaudited and based on management's preliminary financial analysis and may be adjusted as a result of, among other things, completion of customary financial close review.

Non-GAAP Financial Measures (Unaudited)This press release includes preliminary financial information that has not been prepared in accordance with GAAP, including preliminary non-GAAP adjusted EBITDA. Identiv uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. The non-GAAP measures discussed above will exclude items that are included in GAAP net income (loss) and GAAP operating expenses, and excludes provision (benefit) for income taxes, net income (loss) attributable to non-controlling interest, interest expense, foreign currency losses (gains), impairment of goodwill, stock-based compensation, amortization and depreciation, and restructuring and severance. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. We have not provided reconciliations of preliminary and projected adjusted EBITDA to the most comparable GAAP measure of net income. Providing net income guidance is not practical at this time, given the difficulty of projecting certain operating items that are included in net income, including income tax valuation adjustments. Reconciliations of these non-GAAP measures with the most comparable GAAP measures for historical periods are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance. Please reference the "Non-GAAP financial information" accompanying our quarterly earnings releases on our website at www.identiv.com for our GAAP results and the reconciliations of these measures, where used, to the comparable GAAP measures.

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