ORBIMAGE Announces Results for First Nine Months of 2005

Cash Flow and Leverage

As of September 30, 2005, ORBIMAGE had $253.3 million of cash and cash equivalents. Net cash provided by operating activities for the nine months ended September 30, 2005 was $92.1 million. During 2005, ORBIMAGE received approximately $75.6 million of milestone payments from the National Geospatial-Intelligence Agency ("NGA") related to the construction of the OrbView-5 satellite. Net cash used for investing activities were $119.4 million for the first nine months of 2005. Capital expenditures for the first nine months of 2005 were $112.7 million, much of which represents expenditures associated with the OrbView-5 satellite and related systems. ORBIMAGE also used approximately $6.7 million for the initial payment and other acquisition- related costs associated with the purchase of Space Imaging.

Net cash provided by financing activities were $220.0 million for the first nine months of 2005. During the first quarter ORBIMAGE received approximately $74.0 million of proceeds from the exercise of warrants by certain of its investors and from the issuance of shares in conjunction with a subscription rights offering which concluded in March 2005. Approximately $22.2 million of the warrant proceeds were used to redeem the Senior Notes on March 31, 2005 as discussed above. On June 29, 2005, ORBIMAGE Holdings Inc. issued $250 million aggregate principal amount of Senior Secured Floating Rate Notes due 2012 (the "Notes"). The Notes were offered in a private placement to certain qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. The purpose of the offering was to contribute the proceeds to the capital of its wholly-owned subsidiary, ORBIMAGE Inc., to be used for construction costs for the OrbView-5 satellite, to mandatorily redeem all of the outstanding Senior Subordinated Notes of ORBIMAGE Inc. that were to mature in 2008 and for general working capital purposes. The Notes bear interest at a rate per annum, reset semi-annually, equal to the greater of nine-month LIBOR or three percent, plus a margin of 9.5 percent. ORBIMAGE Holdings entered into an interest rate swap arrangement pursuant to which it has fixed its effective interest rate under the Notes at 13.75 percent through July 1, 2008.



                            ORBIMAGE HOLDINGS INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
          (Unaudited; in thousands, except share and per share data)

                                   Three Months Ended        Nine Months Ended
                                      September 30,            September 30,
                                     2005      2004           2005       2004

    Revenues                    $  11,197   $  8,891     $  28,357  $  20,650

    Direct expenses                 9,685      9,162        27,843     24,997

    Gross profit (loss)             1,512       (271)          514     (4,347)

    Selling, general and
     administrative expenses        3,146      3,293         8,792      7,127

    Loss from operations           (1,634)    (3,564)       (8,278)   (11,474)

    Interest expense, net           5,795      2,576         9,480      7,483

    Loss from early
     extinguishment of debt         2,119          -         2,758          -

    Loss before benefit for
     income taxes                  (9,548)    (6,140)      (20,516)   (18,957)

    Benefit for income taxes            -          -             -           -

    Net loss                    $  (9,548)  $ (6,140)    $ (20,516) $ (18,957)

    Loss per common share --
     basic and diluted          $   (0.55)  $  (0.95)    $   (1.29) $   (2.97)

    Weighted average shares
     outstanding -- basic
     and diluted               17,291,587  6,497,292    15,849,818  6,388,335



                            ORBIMAGE HOLDINGS INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                 (Unaudited; in thousands, except share data)


                             ASSETS
                                                September 30,   December 31,
                                                    2005           2004
    Current assets:
          Cash and cash equivalents              $  253,318     $   60,565
          Receivables net of allowances of
           $127 and $126, respectively                8,444         12,148
          Other current assets                        3,634          2,612
               Total current assets                                  265,396                  75,325

        Property,  plant  and  equipment,  at  cost,
          less  accumulated  depreciation  of  $6,635
          and  $3,751,  respectively                                                27,455                  18,263
        Satellites  and  related  rights,  at  cost,
          less  accumulated  depreciation  and
          amortization  of  $32,687  and  $18,142,
          respectively                                                                      221,483                116,640
        Goodwill                                                                                  28,490                  28,490
        Other  assets                                                                          26,092                  10,428
            Total  assets                                                              $    568,916          $    249,146


                    LIABILITIES  AND  STOCKHOLDERS'  EQUITY

        Current  liabilities:
                    Accounts  payable  and  accrued  expenses    $      13,484          $        3,970
                    Amounts  payable  to  subcontractors                    62,984                  47,545
                    Deferred  revenue                                                        1,113                    2,234
                    Other  current  liabilities                                      1,561                            -
                              Total  current  liabilities                          79,142                  53,749

        Long-term  debt                                                                    245,182                  85,018
        Deferred  revenue,  net  of  current  portion                100,791                  24,491
        Other  noncurrent  liabilities                                            3,811                            -

                    Total  liabilities                                                  428,926                163,258


        Stockholders'  equity:
                    Common  stock,  par  value  $0.01;
                      25,000,000  shares  authorized;
                      17,434,889  shares  and  9,917,078  shares
                      issued  and  outstanding  as  of  September
                      30,  2005  and  December  31,  2004,
                      respectively                                                                  174                          99
                    Additional  paid-in-capital                                186,043                112,373
                    Unearned  compensation                                                (765)                (1,845)
                    Accumulated  deficit                                              (45,255)              (24,739)
                    Accumulated  other  comprehensive  loss                  (207)                          -

                    Total  stockholders'  equity                                139,990                  85,888

                    Total  liabilities  and  stockholders'
                      equity                                                                $    568,916          $    249,146



                                                        ORBIMAGE  HOLDINGS  INC.
                              CONDENSED  CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS
                                                    (Unaudited;  in  thousands)

                                                                                              Nine  Months  Ended  September  30,
                                                                                                          2005                      2004

        Cash  flows  from  operating  activities:
                  Net  loss                                                                $    (20,516)          $  (18,957)
                  Adjustments  to  reconcile  net  loss  to
                    net  cash  provided  by  (used  in)
                    operating  activities:
                          Depreciation  and  amortization                      18,665                  16,090
                          Interest  paid  in  kind                                                -                    7,559
                          Stock  compensation                                              1,080                    2,027
                          Loss  on  early  extinguishment  of  debt          2,758                        -
                  Changes  in  assets  and  liabilities:
                          Decrease  (increase)  in  receivables
                            and  other  current  assets                                3,992                  (7,277)
                          Decrease  in  other  assets                                      992                            -
                          Increase  (decrease)  in  accounts
                            payable  and  accrued  expenses                        9,512                  (1,331)
                          Increase  in  deferred  revenue                        75,627                    1,295
                  Net  cash  provided  by  (used  in)  operating
                    activities                                                                  92,110                      (594)

        Cash  flows  from  investing  activities:
                  Capital  expenditures                                            (112,693)                (1,060)
                  Acquisition  of  Space  Imaging                                (6,688)                          -
                  Net  cash  used  in  investing  activities          (119,381)                (1,060)

        Cash  flows  from  financing  activities:
                  Issuance  of  long-term  debt                                  245,000                            -
                  Extinguishment  of  long-term  debt                      (85,016)                          -
                  Long-term  debt  repayment  and
                    issuance  costs                                                        (13,706)                          -
                  Issuance  of  common  stock                                        73,746                            -
                  Net  cash  provided  by  financing
                    activities                                                                220,024                            -

        Net  increase  (decrease)  in  cash  and                          192,753                  (1,654)
          cash  equivalents

        Cash  and  cash  equivalents,  beginning
          of  period                                                                              60,565                  14,405
        Cash  and  cash  equivalents,  end  of  period          $    253,318            $    12,751

        Supplemental  cash  flow  information:
                  Interest  paid                                                      $        4,295            $              -
                  Payments  made  in  conjunction
                    with  Chapter  11  reorganization                  $                -            $      1,040

        Non-cash  items:
                  Capital  expenditures                                        $    (67,625)          $              -
                  Amounts  payable  to  subcontractors                      62,984                            -


        About  ORBIMAGE: 


Featured Video
Jobs
Principal Engineer for Autodesk at San Francisco, California
Machine Learning Engineer 3D Geometry/ Multi-Modal for Autodesk at San Francisco, California
Senior Principal Software Engineer for Autodesk at San Francisco, California
Business Development Manager for Berntsen International, Inc. at Madison, Wisconsin
Mechanical Engineer 3 for Lam Research at Fremont, California
Manufacturing Test Engineer for Google at Prague, Czechia, Czech Republic
Upcoming Events
Dimensions User Conference 2024 at The Venetian Resort Las Vegas NV - Nov 11 - 13, 2024
Greenbuild 2024 at Pennsylvania Convention Center Philadelphia PA - Nov 12 - 15, 2024
Digital Construction North (DCN) 2024 at Manchester Central. Manchester United Kingdom - Nov 13, 2024
Digital Twins 2024 at the Gaylord National Resort & Convention Center in, MD. National Harbor MD - Dec 9 - 11, 2024



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
TechJobsCafe - Technical Jobs and Resumes EDACafe - Electronic Design Automation GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise