Company Re-affirms Full-Year 2011 Outlook
LONGMONT, Colo. — (BUSINESS WIRE) — November 1, 2011 — DigitalGlobe, Inc. (NYSE: DGI), a leading global provider of commercial high-resolution earth imagery products and services, today reported financial results for the third quarter ended Sept. 30, 2011.
Third quarter 2011 revenue was $81.3 million, up 1% compared with the same period last year. Included in third quarter revenue is $6.4 million of amortized revenue related to NextView, the predecessor to the EnhancedView contract with the National Geospatial-Intelligence Agency (NGA). Not included in third quarter revenue is $23.2 million of deferrals related to the service level agreement (SLA) portion of EnhancedView.
The company reported a third quarter 2011 net income of $1.1 million, or $0.02 per diluted share, compared with net income of $800 thousand, or $0.02 earnings per diluted share, for the same period last year.
Third quarter 2011 Adjusted EBITDA, a non-GAAP financial measure, was $52.0 million, an increase of 16.0% compared with third quarter 2010 Adjusted EBITDA of $44.9 million. Adjusted EBITDA includes current-quarter deferrals related to EnhancedView and, for both periods, excludes approximately $6.4 million of amortized revenue related to NextView.
Cash Flow from Operations was $156.7 million for the nine months ended September 30, 2011, up 40.2% compared with Cash Flow from Operations of $111.8 million for the nine months ended September 30, 2010.
On Oct. 12, the company completed a refinancing of its debt, entering into a senior secured credit agreement that provides for a $500 million term loan facility and a $100 million revolving credit facility. The company used these funds to repay the principal and premium related to its 10.5% Senior Secured Notes, 100% of which were redeemed and which have been retired. The company will use the remaining cash proceeds for general corporate purposes, which may include acquisitions and share repurchases. The impact of this refinancing will be included in fourth quarter 2011 financial results, and will include one-time charges related to the premium paid for early extinguishment of the debt as well as deferred financing fees.
“Our team did an outstanding job in the quarter positioning the company for future profitable growth,” said Jeffrey R. Tarr, President and Chief Executive Officer. “We won important new contracts, including a new value-added services agreement with the NGA and a large multi-year contract with a location-based services provider. We grew our 12-month backlog at a double-digit rate both year over year and sequentially, and increased our total backlog to $3.14 billion. We are well positioned for a strong 2012.”
Third Quarter Business Highlights
- The company was awarded a one-year contract by the NGA under the Enhanced GEOINT Delivery (EGD) program. Through the program, DigitalGlobe will provide NGA with continuous delivery of daily images via the web within 24 hours of collect for specific, high-priority geographic locations.
- The company completed the first phase of its remote ground terminal expansion, adding four new RGTs in the quarter, increasing capacity and refresh by 51% and accelerating delivery by up to 34%.
- DigitalGlobe and Ball Aerospace & Technologies Corp. successfully completed the Critical Design Review (CDR) for DigitalGlobe’s next generation remote-sensing satellite, WorldView-3.
- The company launched a new online geospatial intelligence service with NTT GEOSPACE in Japan, whose GEOSPACE-CDS service features on-demand access to imagery sourced from DigitalGlobe. The company also sold a subscription to its FirstLookTM global event monitoring service to the United Nations Institute for Training and Research (UNITAR).
The company’s full year 2011 outlook remains unchanged, with the exception that expected diluted earnings per share now exclude the impact of one-time expenses related to the company’s recent debt refinancing.
- Revenue in a range of $330 million to $355 million. This excludes any deferrals related to EnhancedView and includes amortized revenue related to NextView.
- Diluted earnings per share of $0.10 to $0.20, assuming an average diluted share count of approximately 47 million, and excluding the impact of one-time expenses related to the company’s recent debt refinancing.
- Adjusted EBITDA of $223 million to $243 million.
- Capital expenditures for 2011 of approximately $275 million.
Important factors, including those discussed in the company’s filings
with the Securities and Exchange Commission, could cause actual results
to differ from the company’s expectations and those differences may be