Raises Full Year Revenue and Adjusted EBITDA Outlook
Revenue
up 4.9% to $181.8 Million
Net income up 56.3% to $15.0
Million
Adjusted EBITDA up 6.2% to $97.6 Million
WESTMINSTER, Colo. — (BUSINESS WIRE) — October 25, 2016 — 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, 2016.
Third Quarter Financial Summary:
- Diversified Commercial revenue grew 8.0% due to new commercial contracts and timing of deliveries.
- U.S. Government revenue grew 3.2% driven by demand for analytic value-added products and services.
- Net income increased 56.3% to $15.0 million, or $0.21 per diluted share.
- Net income margin improved 280 bps to 8.3%.
- Adjusted EBITDA increased 6.2% to $97.6 million.
- Adjusted EBITDA margin improved 70 bps to 53.7%.
- Net cash flows from operations decreased 22.8% to $66.1 million due to timing of collections.
- Free cash flow was $0.1 million due to timing of collections and launch payments for WorldView-4.
Recent Highlights:
- On October 7, 2016, entered into a definitive agreement to acquire The Radiant Group, Inc., a leading provider of geospatial solutions to the U.S. intelligence community.
- The National Geospatial-Intelligence Agency awarded the fifth year of the Global Enhanced GEOINT Delivery platform (Global-EGD).
- Repurchased 364,226 shares of common stock for $9.6 million at an average price of $26.30 during the third quarter and repurchased 14,326,091 shares of common stock for $306.0 million since initiation of the program in July 2014.
- Prepared for the launch of WorldView-4 in early November 2016.
“We are pleased to report that solid execution of our strategy is delivering better than expected results," said Jeffrey R. Tarr, DigitalGlobe CEO. "With the upcoming launch of WorldView-4 and our acquisition of Radiant Group, we will be even better positioned to support our customers as the leading commercial source of earth imagery and geospatial analytics.”
Revised 2016 Revenue and Adjusted EBITDA Outlook:
- Revenue in a range of $700 million to $710 million.
- Adjusted EBITDA in a range of $365 million to $375 million.
- Capital expenditures of approximately $135 million.(1)
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(1) Excludes capitalized interest
We have not provided a reconciliation of our Adjusted EBITDA outlook to forward-looking net income, the comparable U.S. GAAP financial measure, because it is difficult to reasonably provide a forward-looking estimate of the reconciling items between such non-U.S. GAAP forward-looking measure and the comparable forward-looking U.S. GAAP measure. Certain factors that are materially significant to our ability to estimate these items are out of our control and/or cannot be reasonably predicted. The nature of the assets under construction, timing of capital expenditures and uncertainty of timing of placing assets in service impact certain components of net income and our ability to reasonably predict net income. These items include income tax expense, interest expense and depreciation. Accordingly, a reconciliation to the comparable forward-looking U.S. GAAP measure is not available within a reasonable range of predictability.
Conference Call Information:
DigitalGlobe’s management will host a conference call today, October 25, 2016 at 5 p.m. ET to discuss its 2016 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 |
| Passcode: 97915625 |
| A replay of the call will be available through November 25, 2016 at the following numbers: |
| U.S./Canada dial-in: (855) 859-2056 |
| International dial-in: (404) 537-3406 |
| Passcode: 97915625 |
