WorldView-3 Now Operational
Company Completes Integration, Realizing $120 Million Synergy Target
Raises 2014 Revenue to Top End of Prior Range
October 31, 2014 -- DigitalGlobe, Inc. (NYSE: DGI), a leading global provider of commercial high-resolution earth observation and advanced geospatial solutions, today reported financial results for the quarter ended September 30, 2014.
Third quarter 2014 revenue was $154.6 million, a (6.2)% decrease compared with the same period last year. Net income for the third quarter was $0.9 million, with a net loss available to common shareholders of $(0.1) million, or $0.00 per diluted share. In the third quarter 2013, the company reported a net loss of $(1.8) million, with a net loss available to common shareholders of $(2.8) million, or a loss of $(0.04) per diluted share.
Third quarter 2014 EBITDA was $58.0 million with an EBITDA margin of 37.5%, an increase of 440 basis points compared with EBITDA of $54.5 million in third quarter 2013, and an associated margin of 33.1%. Third quarter 2014 Adjusted EBITDA was $61.5 million with an Adjusted EBITDA margin of 39.8%. This compares with Adjusted EBITDA of $65.6 million in third quarter 2013, also with an associated margin of 39.8%. Adjusted EBITDA excludes the impact of restructuring, integration and other costs.
On August 13, 2014, DigitalGlobe successfully launched WorldView-3, the world’s highest resolution and most capable commercial earth observation satellite. On October 1, 2014, the company completed calibrations on WorldView-3 to enable it to provide visible spectrum imagery to its customers. As a result, the company began recognizing revenue from the EnhancedView Service Level Agreement at a new annualized rate of approximately $337 million on October 1.
“This quarter was highlighted by the launch and commissioning of WorldView-3, the conclusion of our 18-month GeoEye integration, and more recently, the completion of pre-storage construction on WorldView-4,” said Jeffrey R. Tarr, CEO of DigitalGlobe. “These achievements mark our transition from a period of investment in building the world’s leading earth observation capability to a new era of profitable growth, strong free cash flow and improving returns.”
In addition to the recent launch of WorldView-3 and completion of both the GeoEye integration and pre-storage construction on WorldView-4, other highlights included:
- The National Geospatial-Intelligence Agency awarded DigitalGlobe the third year of the Global Enhanced GEOINT Delivery (Global-EGD) contract.
- DigitalGlobe repurchased 495,870 shares of its stock for $15 million at an average price of $30.27.
- U. S. Government revenue declined 12.9% to $87.8, due primarily to $9 million in one-time Global-EGD recognized revenue in the third quarter of 2013.
- Diversified Commercial revenue increased 4.4% to $66.8 million in the quarter, driven by growth in Direct Access, Spatial Energy, and location-based services customers.
- DigitalGlobe has signed multi-year agreements to support pipeline monitoring for one of the largest gas producing companies in Asia and to enable reservoir management in Brazil for one of the largest domestic power companies in the world.
- The company signed agreements for its Geospatial Big Data (GBD) platform with partners focused on financial services and insurance.
- DigitalGlobe signed multiple agreements with Global Developmental Organizations focused on addressing infectious diseases in Africa.
- The company further diversified its partner channel in China, working with a new reseller to provide imagery to the Guangzhou Land Bureau.
For 2014, the company now expects to report revenue in a range of $640 million to $660 million. The company continues to expect to achieve a full-year Adjusted EBITDA margin of approximately 43% with a fourth quarter 2014 Adjusted EBITDA margin of approximately 50% at the mid-point of the company’s annual revenue guidance. The company also expects 2014 capital expenditures of approximately $185 million, due to a reduction in projected year-end payables related to satellite construction projects.
Conference Call Information
DigitalGlobe’s management will host a conference call today, October 30, 2014 at 5 p.m. ET to discuss its 2014 third quarter financial and operating results.
|The conference call dial-in numbers are as follows:|
|U.S./Canada dial-in: (855) 212-2368|
|International dial-in: (315) 625-6886|
|A replay of the call will be available through November 30, 2014 at the following numbers:|
|U.S./Canada dial-in: (855) 859-2056|
|International dial-in: (404) 537-3406|
DigitalGlobe will also sponsor a live and archived webcast of the conference call on the Investor Relations portion of its website. Click here to directly access the live webcast.
Supplemental earnings materials, including conference call slides and management scripts, are available on the Investor Relations section of the company’s website at www.digitalglobe.com.
DigitalGlobe is a leading provider of commercial high-resolution earth observation and advanced geospatial solutions that help decision makers better understand our changing planet in order to save lives, resources and time. Sourced from the world's leading constellation, our imagery solutions deliver unmatched coverage and capacity to meet our customers' most demanding mission requirements. Each day customers in defense and intelligence, public safety, civil agencies, map making and analysis, environmental monitoring, oil and gas exploration, infrastructure management, navigation technology, and providers of location-based services depend on DigitalGlobe data, information, technology and expertise to gain actionable insight.
DigitalGlobe is a registered trademark of DigitalGlobe.
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