- Conference Call Scheduled for 8:30 a.m. EDT, Monday, May 10, 2010 -
(PRNewswire) — GeoEye, Inc. (Nasdaq: GEOY), a premier provider of superior satellite and aerial-based geospatial information and services, announced today results for its first quarter ended March 31, 2010.(Logo: http://www.newscom.com/cgi-bin/prnh/20080625/LAW528LOGO)
“This quarter we delivered strong revenue and operating income growth. Our pipeline remains robust, and we are experiencing growth in our commercial business,” said Matt O'Connell, chief executive officer and president. “We have excellent revenue visibility and a solid balance sheet. We also have expanded the services our customers need to turn imagery into business solutions, and we are well positioned to expand our satellite constellation.”
Total revenues were $80.4 million for the first quarter of 2010, a 77.8 percent increase from $45.2 million for the first quarter of 2009. Net income for the first quarter of 2010 was $0.8 million, or $0.04 per fully diluted share, compared to a net loss of $1.7 million, or a loss of $0.09 per share, for the first quarter of 2009.
Net income for the first quarter includes a non-cash charge of $10.5 million related to fair value accounting for the Company’s previously disclosed financing commitment with Cerberus Capital Management L.P. (“Cerberus”) entered into March 4, 2010. There was no tax benefit related to this charge. Excluding this charge, adjusted net income for the first quarter of 2010 was $11.2 million and adjusted EPS was $0.52 per fully diluted share. Additional charges or benefits may be incurred related to the commitment until such time as the commitment is terminated or settled. These charges or benefits will be based on movements in the Company’s stock price and other factors.
FIRST QUARTER HIGHLIGHTS
- Revenues related to contracts with the U.S. Government, the Company's largest customer, were $54.2 million for the first quarter of 2010, representing 67.4 percent of total revenues for the period and an increase of 89.3 percent over the prior year’s first quarter.
- Domestic revenues were $59.8 million for the first quarter of 2010, which were 74.4 percent of total revenues for the period.
- Domestic revenues included $37.1 million from the Company’s Service Level Agreement (SLA) with the National Geospatial-Intelligence Agency (NGA).
- International revenues were $20.6 million for the first quarter of 2010, which accounted for 25.6 percent of total revenues for the period.
- Operating income for the first quarter of 2010 was $26.5 million.
- Operating margin was 33.0 percent for the first quarter of 2010 compared to 3.8 percent in the same period in 2009.
- Adjusted EBITDA, a non-GAAP measurement defined as net income (loss) before interest, taxes, depreciation, amortization, non-cash stock-based compensation expense and other items, increased $32.9 million to $43.5 million for the first quarter of 2010, from $10.6 million in the same period in 2009.
- Adjusted EBITDA margin was 54.1 percent for the first quarter of 2010 compared to 23.5 percent for the same period in 2009.
- The Company ended the first quarter of 2010 with cash and cash equivalents of $227.5 million, restricted cash of $64.4 million, current income tax receivable of $33.4 million, total assets of $992.6 million, long-term debt of $381.2 million and stockholders' equity of $300.5 million.
FISCAL YEAR 2010 FINANCIAL OUTLOOK
GeoEye currently expects fiscal 2010 revenue to range from $310 million to $320 million, with adjusted EBITDA in the range of $150 million to $160 million. These estimates represent management's current expectations about the Company's future financial performance, based on information available at this time.
CONFERENCE CALL INFORMATION
GeoEye, Inc. (NASDAQ: GEOY), will host a conference call for investors and analysts to discuss financial results for the first quarter ended March 31, 2010.
When: May 10, 2010, at 8:30 a.m. Eastern Daylight Time
To Participate: Callers wishing to participate in the conference call may dial 1-631-291-4808 at least 10 minutes prior to the start time. Domestic callers who wish to listen may dial toll-free at 1-877-776-4039. The conference ID number is 70442926.
Participants are encouraged to listen via webcast, which will be broadcast live at www.geoeye.com, under the Investor Relations section of the Company's corporate Web site. To access a live webcast go to: http://www.geoeye.com/CorpSite/corporate/investor-relations/Default.aspx and click on the “May 10, 2010, Investor Update Webcast” link. Please allow 15 minutes before the scheduled start time to register, download and install any necessary audio software.
Replay: A replay of the teleconference will be available starting at 10:30 a.m. EDT, May 10, 2010, and will run until midnight EDT on Friday, May 21. To access the replay, please dial (800) 642-1687. The conference ID number for the replay is 70442926.
Selected financial results for the Company are as follows (dollars in thousands, except earnings per share):
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in thousands, except per share amounts) | |||||||
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| Three Months Ended |
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| 3/31/10 |
| 3/31/09 |
| Change | |
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| (unaudited) |
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Revenues | $ 80,389 |
| $ 45,211 |
| $ 35,178 | ||
Operating expenses: |
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| Direct costs of revenue (exclusive of depreciation and amortization) | 24,481 |
| 23,592 |
| 889 | |
|
| Depreciation and amortization | 16,022 |
| 8,460 |
| 7,562 | |
|
| Selling, general and administrative | 13,382 |
| 11,454 |
| 1,928 | |
|
| Total operating expenses | 53,885 |
| 43,506 |
| 10,379 | |
| Income from operations | 26,504 |
| 1,705 |
| 24,799 | ||
| Interest expense, net | (8,243) |
| (5,562) |
| (2,681) | ||
| Other non-operating expense | (10,474) |
| - |
| (10,474) | ||
| Loss from early extinguishment of debt | (37) |
| - |
| (37) | ||
| Income (loss) before provision for income taxes | 7,750 |
| (3,857) |
| 11,607 | ||
| (Provision) benefit for income taxes | (6,976) |
| 2,120 |
| (9,096) | ||
| Net income (loss) | $ 774 |
| $ (1,737) |
| $ 2,511 | ||
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| Earnings (loss) per share basic | $ 0.04 |
| $ (0.09) |
| $ 0.13 | ||
| Earnings (loss) per share diluted | $ 0.04 |
| $ (0.09) |
| $ 0.13 | ||
| Weighted average shares basic | 21,068 |
| 18,469 |
| 2,599 | ||
| Weighted average shares diluted | 21,687 |
| 18,469 |
| 3,218 | ||
| ADJUSTED EBITDA | ||||
| (in thousands) | ||||
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| Three Months Ended | |||
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| 3/31/10 |
| 3/31/09 | |
| Net income (loss) | $ 774 |
| $ (1,737) | |
| Adjustments: |
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| |
| Interest expense, net | 8,243 |
| 5,562 | |
| Loss from early extinguishment of debt | 37 |
| - | |
| Provision (benefit) for income taxes | 6,976 |
| (2,120) | |
| Depreciation and amortization | 16,022 |
| 8,460 | |
| Non-cash stock-based compensation expense | 993 |
| 472 | |
| Non-cash change in fair value of financial instrument | 10,474 |
| - | |
| Adjusted EBITDA | $ 43,519 |
| $ 10,637 | |
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| Adjusted EBITDA is a non-GAAP financial measure that represents net income (loss) before net interest income or expense, income tax expense (benefit), depreciation and amortization expenses, non-cash stock-based compensation expense and other items. We believe that Adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing operations. However, Adjusted EBITDA is not a recognized term under financial performance under GAAP, and our calculation of Adjusted EBITDA may not be comparable to the calculation of similarly titled measures of other companies. | ||||
| ADJUSTED NET INCOME AND ADJUSTED EPS | ||||
| (in thousands, except per share amounts) | ||||
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| Three Months Ended 3/31/10 | |||
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| Diluted EPS | |
| Net income and diluted EPS | $ 774 |
| $ 0.04 | |
| Adjustment: |
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| Non-cash change in fair value of financial instrument | 10,474 |
| 0.48 | |
| Adjusted net income and adjusted diluted EPS | $ 11,248 |
| $ 0.52 | |
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| Adjusted Net Income is a non-GAAP financial measure that represents Net Income before other items, net of tax. Adjusted EPS is a non-GAAP financial measure that represents fully diluted Earnings per Share before other items, net of tax. We believe that Adjusted Net Income and Adjusted EPS provide useful information to investors because they allow investors to evaluate our performance for different periods on a more comparable basis by excluding items that are not related to the ongoing operations of our business. However, Adjusted Net Income and Adjusted EPS are not recognized terms under financial performance under GAAP, and our calculation of Adjusted Net Income and Adjusted EPS may not be comparable to the calculation of similarly titled measures of other companies. | ||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands) | ||||||
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| March 31, |
| December 31, |
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| 2010 |
| 2009 |
| Change | |
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| (unaudited) |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents | $ 227,509 |
| $ 208,872 |
| $ 18,637 | |
| Accounts receivable - trade and unbilled receivables (net of allowances: 2010 - $1,140; 2009 - $923) | 36,320 |
| 32,578 |
| 3,742 | |
| Income tax receivable | 33,439 |
| 40,237 |
| (6,798) | |
| Restricted cash | 51,716 |
| 52,268 |
| (552) | |
| Prepaid expenses | 6,460 |
| 5,898 |
| 562 | |
| Other current assets | 11,276 |
| 10,938 |
| 338 | |
| Total current assets | 366,720 |
| 350,791 |
| 15,929 | |
| Property, plant and equipment, net | 28,147 |
| 25,381 |
| 2,766 | |
| Satellites and related ground systems, net | 528,095 |
| 505,035 |
| 23,060 | |
| Goodwill | 34,264 |
| 34,264 |
| - | |
| Intangible assets, net | 11,024 |
| 11,685 |
| (661) | |
| Non-current restricted cash | 12,666 |
| 13,653 |
| (987) | |
| Other non-current assets | 11,692 |
| 6,398 |
| 5,294 | |
| Total assets | $ 992,608 |
| $ 947,207 |
| $ 45,401 | |
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| LIABILITIES AND STOCKHOLDERS' EQUITY |
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| Current liabilities: |
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| Accounts payable and accrued expenses | $ 49,297 |
| $ 33,997 |
| $ 15,300 | |
| Current portion of deferred revenue | 53,982 |
| 52,221 |
| 1,761 | |
| Current deferred tax liabilities | 4,744 |
| 4,744 |
| - | |
| Current portion of long-term debt | - |
| 497 |
| (497) | |
| Other current liabilities | 12,568 |
| - |
| 12,568 | |
| Total current liabilities | 120,591 |
| 91,459 |
| 29,132 | |
| Long-term debt | 381,204 |
| 380,594 |
| 610 | |
| Long-term deferred revenue, net of current portion | 187,462 |
| 192,313 |
| (4,851) | |
| Non-current income tax reserve | 248 |
| 248 |
| - | |
| Deferred tax liabilities | 2,078 |
| 2,078 |
| - | |
| Other non-current liabilities | 487 |
| 560 |
| (73) | |
| Total liabilities | 692,070 |
| 667,252 |
| 24,818 | |
| Commitments and contingencies |
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| Stockholders’ equity: |
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| Common stock | 221 |
| 199 |
| 22 | |
| Additional paid-in capital | 247,775 |
| 227,988 |
| 19,787 | |
| Retained earnings | 52,542 |
| 51,768 |
| 774 | |
| Total stockholders’ equity | 300,538 |
| 279,955 |
| 20,583 | |
| Total liabilities and stockholders’ equity | $ 992,608 |
| $ 947,207 |
| $ 45,401 | |
| STATEMENT OF CASH FLOWS INFORMATION | ||||||
| (in thousands) | ||||||
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| Three Months Ended |
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| 3/31/10 |
| 3/31/09 |
| Change | |
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| (unaudited) |
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| Net cash provided by operating activities | $ 31,470 |
| $ 725 |
| $ 30,745 | |
| Net cash used in investing activities | (28,773) |
| (16,069) |
| (12,704) | |
| Net cash provided by financing activities | 15,940 |
| 1,742 |
| 14,198 | |
| Net increase (decrease) in cash and cash equivalents | 18,637 |
| (13,602) |
| 32,239 | |
| Cash and cash equivalents, beginning of period | 208,872 |
| 106,733 |
| 102,139 | |
| Cash and cash equivalents, end of period | $ 227,509 |
| $ 93,131 |
| $ 134,378 | |
