LONGMONT, Colo. — (BUSINESS WIRE) — May 3, 2011 — DigitalGlobe, Inc. (NYSE: DGI), a leading global provider of commercial high-resolution earth imagery products and services, today reported financial results for the first quarter ended March 31, 2011.
First quarter 2011 revenue was $77.1 million, flat compared with the same period last year. Included in first quarter revenue is $6.4 million of amortized revenue related to NextView, the predecessor to the EnhancedView contract with the U.S. Government. Not included in first quarter revenue is $24.8 million of deferrals related to the service level agreement (SLA) portion of EnhancedView.
The company reported a first quarter 2011 net loss of $(0.7) million, or $(0.02) per diluted share, compared with net income of $1.5 million, or $0.03 earnings per diluted share, for the same period last year.
First quarter 2011 Adjusted EBITDA, a non-GAAP financial measure, was $55.4 million, an increase of 49% compared with first quarter 2010 Adjusted EBITDA of $37.2 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 $60.5 million in the first quarter, up 37% compared with first quarter 2010. In the quarter, the company signed its fifth direct access program (DAP) customer and expects to bring that customer into service in early 2012.
“We are generating significant cash flow as evidenced by the strong growth in adjusted EBITDA, and are focused on improving revenue growth," said Jeff Tarr, the company’s new President and Chief Executive Officer. "Looking toward the future, we were pleased to sign our fifth direct access customer. This multi-year agreement is expected to come on line in early 2012 and to drive revenue from this important product line up to approximately $50 million annually.”
First Quarter Business Highlights
- Defense and Intelligence segment revenue was $61.7 million, down 1.4% compared with first quarter 2010. This excludes $24.8 million of deferrals related to EnhancedView SLA, and includes $6.4 million related to NextView.
- The company’s DAP product line generated $9.4 million in revenue for the first quarter.
- Commercial segment revenue was $15.4 million, up 6.2% compared with first quarter 2010.
- The company signed a five-year agreement with Turksat, the leading communications provider in Turkey. Turksat will re-sell imagery to both government and commercial customers in that country.
For the full year 2011, the company expects:
- 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.
- Adjusted EBITDA of $223 million to $243 million.
- Capital expenditures for 2011 of at least $275 million, with all but approximately $35 million related to the company’s construction of WorldView-3 and other EnhancedView-related infrastructure investments.
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 material.
Conference Call Information
DigitalGlobe’s management will host a conference call today at 5 p.m. EDT to discuss first quarter 2011 results.
The conference call dial-in numbers are as follows:
U.S./Canada dial-in: 866-921-3936
International dial-in: 706-679-9623
A replay of the call will be available through June 3, 2011 at the
U.S./Canada dial-in: 800-642-1687
International dial-in: 706-645-9291
DigitalGlobe will also sponsor a live and archived webcast of the conference call on its website, www.digitalglobe.com. Supplemental earnings materials are also available at this website.
Longmont, Colorado-based DigitalGlobe is a leading global provider of
commercial high-resolution earth imagery products and services. Sourced
from our own advanced satellite constellation, our imagery solutions
support a wide variety of uses within defense, intelligence, and
homeland security applications, mapping and analysis, environmental
monitoring, oil and gas exploration, infrastructure management, Internet
portals and navigation technology. With our collection sources and
comprehensive ImageLibrary (containing more than 1 billion square
kilometers of earth imagery and imagery products) we offer a range of
on- and off-line products and services designed to enable customers to
easily access and integrate our imagery into their business operations
and applications. For more information, please visit