HERNDON, Va., Nov. 6, 2012 /PRNewswire/ -- GeoEye, Inc.
(NASDAQ: GEOY), a leading source of geospatial information and
insight, announced today results for its fiscal third quarter ended
Sept. 30, 2012.
(Logo:
http://photos.prnewswire.com/prnh/20080625/LAW528LOGO)
"Third quarter revenue and operating results were in line with
our expectations. As expected, on Oct.
31, the National Geospatial-Intelligence Agency (NGA)
notified us that they have decided to cancel our Service Level
Agreement (SLA) part of the EnhancedView contract. Effective
Dec. 1, 2012, we will no longer be
providing imagery to the NGA," said Matt O'Connell, GeoEye's chief
executive officer and president.
"We will continue to provide other services to the NGA under
EnhancedView, including the Web delivery platform, secure
operations and value-added production services," O'Connell
continued. "We continue to move forward with our combination with
DigitalGlobe. We expect to close the transaction late this year or
in the first quarter of 2013."
THIRD QUARTER RESULTS
Total revenues were $87.1 million
for the third quarter of 2012, a $1.3
million increase from the third quarter of 2011. Net income
available to common stockholders for the third quarter of 2012 was
$7.6 million, or $0.33 per fully diluted share, compared to
$11.7 million, or $0.51 per fully diluted share, for the third
quarter of 2011. When adjusted for transaction costs related to the
combination with DigitalGlobe, net income available to common
stockholders for the three months ended Sept. 30, 2012, was $12.0
million, or $0.53 per fully
diluted share.
Operating profit was $15.2 million
for the third quarter of 2012, which included $8.3 million of transaction-related costs.
Operating margin was 17.4 percent for the third quarter of 2012,
compared to 27.7 percent in the third quarter of 2011. Adjusted
EBITDA (a non-GAAP measurement defined as net income before
interest, taxes, depreciation, amortization, non-cash recognition
of stock compensation expense and other items including transaction
related costs) was $43.4 million for
the third quarter of 2012, compared to $43.7
million in the same period in 2011.
The company ended the third quarter of 2012 with unrestricted
cash, cash equivalents and short-term investments of $229.4 million; total assets of approximately
$1.5 billion; stockholders' equity of
$550.8 million and long-term debt of
$513.4 million.
THIRD QUARTER 2012 OPERATING HIGHLIGHTS
Revenue Mix
- Imagery revenues in the third quarter of 2012 were $59.7 million, or 68.6 percent of total revenues.
Production and other services revenues were $21.3 million, or 24.5 percent of total revenues.
The NextView cost share accounted for revenues of $6.0 million, or 6.9 percent of total
revenues.
- The company recognized $37.5
million of imagery and other revenue under the EnhancedView
SLA during the third quarter. U.S. government revenues were
$58.9 million, or 68 percent of total
revenues in the quarter.
Geographic Information
- Domestic revenues were $66.1
million for the third quarter of 2012, or 75.8 percent of
total revenues for the period. International revenues were
$21.0 million for the third quarter
of 2012, or 24.2 percent of total revenues for the period.
GeoEye-2 Capital Expenditures
- During the quarter, the company invested $55.3 million for the continued development and
construction of the GeoEye-2 satellite, including $13.4 million of capitalized interest. To date,
the company has invested $773.6
million in the GeoEye-2 satellite program, including
$103.1 million of capitalized
interest.
NINE MONTH RESULTS
Total revenues for the nine months ended Sept. 30, 2012, were $264.8 million, a 2.0 percent increase from
$259.6 million in the nine months
ended Sept. 30, 2011. The company's
Adjusted EBITDA for the nine-month period ended Sept. 30, 2012, was $134.3
million, an increase of 2.2 percent from the same period in
2011. Net income available to common stockholders for the nine
months ended Sept. 30, 2012, was
$32.5 million, or $1.43 per fully diluted share, as compared to net
income available to common stockholders of $32.8 million, or $1.44 per fully diluted share, in the same period
in 2011. When adjusted for transaction related and other costs of
$10.9 million, net income available
to common stockholders for the nine months ended Sept. 30, 2012, was $38.3
million, or $1.68 per fully
diluted share.
FISCAL YEAR 2012 FINANCIAL OUTLOOK
Given the execution of a definitive merger agreement with
DigitalGlobe in July 2012, and the
nature of the ongoing business transaction, the company has
suspended its full year 2012 guidance.
CONFERENCE CALL
Due to the pending merger of GeoEye, Inc. with DigitalGlobe,
Inc., GeoEye will not host a conference call to discuss financial
results for the third quarter of 2012.
Selected financial results for the company are as follows
(dollars in thousands, except earnings per share):
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
September 30,
|
|
|
|
|
2012
|
|
2011
|
|
Change
|
|
|
(unaudited)
|
|
|
|
Revenues
|
$
87,109
|
|
$
85,769
|
|
$
1,340
|
|
Operating
expenses:
|
|
|
|
|
|
|
Direct
costs of revenue (exclusive of depreciation and
amortization)
|
31,227
|
|
28,508
|
|
2,719
|
|
Depreciation and amortization
|
17,860
|
|
17,986
|
|
(126)
|
|
Selling,
general and administrative
|
22,822
|
|
15,516
|
|
7,306
|
|
Total
operating expenses
|
71,909
|
|
62,010
|
|
9,899
|
|
Income
from operations
|
15,200
|
|
23,759
|
|
(8,559)
|
|
Interest
income (expense), net
|
22
|
|
(1,122)
|
|
1,144
|
|
Income
before provision for income taxes
|
15,222
|
|
22,637
|
-
|
(7,415)
|
|
Provision
for income taxes
|
(5,666)
|
|
(8,549)
|
|
2,883
|
|
Net
income
|
9,556
|
|
14,088
|
-
|
(4,532)
|
|
Preferred
stock dividends
|
(1,007)
|
|
(1,008)
|
|
1
|
|
|
8,549
|
|
13,080
|
|
(4,531)
|
|
Income
allocated to participating securities
|
(912)
|
|
(1,416)
|
|
504
|
|
Net
income available to common stockholders
|
$
7,637
|
|
$
11,664
|
|
$
(4,027)
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
Basic
|
$
0.34
|
|
$
0.53
|
|
$
(0.19)
|
|
Diluted
|
$
0.33
|
|
$
0.51
|
|
$
(0.18)
|
|
Weighted
average shares basic
|
22,519
|
|
22,147
|
|
|
|
Weighted
average shares diluted
|
22,845
|
|
22,789
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended
September 30,
|
|
|
|
|
2012
|
|
2011
|
|
Change
|
|
|
(unaudited)
|
|
|
|
Revenues
|
$
264,786
|
|
$
259,601
|
|
$
5,185
|
|
Operating
expenses:
|
|
|
|
|
|
|
Direct
costs of revenue (exclusive of depreciation and
amortization)
|
91,937
|
|
91,246
|
|
691
|
|
Depreciation and amortization
|
53,355
|
|
52,204
|
|
1,151
|
|
Selling,
general and administrative
|
56,469
|
|
44,606
|
|
11,863
|
|
Total
operating expenses
|
201,761
|
|
188,056
|
|
13,705
|
|
Income
from operations
|
63,025
|
|
71,545
|
|
(8,520)
|
|
Interest
income (expense), net
|
1,382
|
|
(8,249)
|
|
9,631
|
|
Income
before provision for income taxes
|
64,407
|
|
63,296
|
-
|
1,111
|
|
Provision
for income taxes
|
(25,004)
|
|
(23,552)
|
|
(1,452)
|
|
Net
income
|
39,403
|
|
39,744
|
-
|
(341)
|
|
Preferred
stock dividends
|
(3,002)
|
|
(2,992)
|
|
(10)
|
|
|
36,401
|
|
36,752
|
|
(351)
|
|
Income
allocated to participating securities
|
(3,902)
|
|
(3,984)
|
|
82
|
|
Net
income available to common stockholders
|
$
32,499
|
|
$
32,768
|
|
$
(269)
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
Basic
|
$
1.45
|
|
$
1.48
|
|
$
(0.03)
|
|
Diluted
|
$
1.43
|
|
$
1.44
|
|
$
(0.01)
|
|
Weighted
average shares basic
|
22,392
|
|
22,107
|
|
|
|
Weighted
average shares diluted
|
22,799
|
|
22,767
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
(in
thousands)
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
Change
|
|
(unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and
cash equivalents
|
$
220,860
|
|
$
188,738
|
|
$
32,122
|
|
Short-term
investments
|
8,500
|
|
9,220
|
|
(720)
|
|
Accounts
receivable - trade and unbilled receivables, net
|
44,973
|
|
39,917
|
|
5,056
|
|
Income tax
receivable
|
2,748
|
|
19,645
|
|
(16,897)
|
|
Restricted
cash
|
3,952
|
|
4,207
|
|
(255)
|
|
Current
deferred tax assets
|
2,148
|
|
2,148
|
|
-
|
|
Prepaid
expenses and other current assets
|
11,360
|
|
14,805
|
|
(3,445)
|
|
Total
current assets
|
294,541
|
|
278,680
|
|
15,861
|
|
Property,
plant and equipment, net
|
56,857
|
|
48,065
|
|
8,792
|
|
Satellites
and related ground systems, net
|
1,070,795
|
|
913,454
|
|
157,341
|
|
Goodwill
|
67,945
|
|
68,130
|
|
(185)
|
|
Intangible
assets, net
|
8,130
|
|
10,526
|
|
(2,396)
|
|
Non-current restricted cash
|
3,915
|
|
6,875
|
|
(2,960)
|
|
Other
non-current assets
|
11,051
|
|
8,855
|
|
2,196
|
|
Total
assets
|
$
1,513,234
|
|
$
1,334,585
|
|
$
178,649
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable and accrued expenses
|
$
63,240
|
|
$
58,510
|
|
$
4,730
|
|
Current
portion of deferred revenue
|
67,322
|
|
53,433
|
|
13,889
|
|
Total
current liabilities
|
130,562
|
|
111,943
|
|
18,619
|
|
Long-term
debt
|
513,379
|
|
511,019
|
|
2,360
|
|
Long-term
deferred revenue, net of current portion
|
220,869
|
|
131,968
|
|
88,901
|
|
Deferred
tax liabilities
|
89,748
|
|
64,694
|
|
25,054
|
|
Other
non-current liabilities
|
7,879
|
|
7,674
|
|
205
|
|
Total
liabilities
|
962,437
|
|
827,298
|
|
135,139
|
|
Commitments and contingencies
|
-
|
|
-
|
|
-
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Series A
convertible preferred stock
|
1
|
|
1
|
|
-
|
|
Series B
junior participating preferred stock
|
-
|
|
-
|
|
-
|
|
Common
stock
|
226
|
|
222
|
|
4
|
|
Additional
paid-in capital
|
386,259
|
|
379,154
|
|
7,105
|
|
Retained
earnings
|
164,311
|
|
127,910
|
|
36,401
|
|
Total
stockholders' equity
|
550,797
|
|
507,287
|
|
43,510
|
|
Total
liabilities and stockholders' equity
|
$
1,513,234
|
|
$
1,334,585
|
|
$
178,649
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
INFORMATION
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Nine
Months Ended September 30,
|
|
|
|
2012
|
|
2011
|
|
Change
|
|
(unaudited)
|
|
|
|
Net cash
provided by operating activities
|
$
238,110
|
|
$
133,702
|
|
$
104,408
|
|
Net cash
used in investing activities
|
(204,352)
|
|
(205,765)
|
|
1,413
|
|
Net cash
used in financing activities
|
(1,636)
|
|
(1,842)
|
|
206
|
|
Net
increase (decrease) in cash and cash equivalents
|
32,122
|
|
(73,905)
|
|
106,027
|
|
Cash and
cash equivalents, beginning of period
|
188,738
|
|
283,233
|
|
(94,495)
|
|
Cash and
cash equivalents, end of period
|
$
220,860
|
|
$
209,328
|
|
$
11,532
|
|
|
ADJUSTED EBITDA
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three
Months Ended September 30,
|
|
Nine
Months Ended September 30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Net
income
|
$
9,556
|
|
$
14,088
|
|
$
39,403
|
|
$
39,744
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Interest
(income) expense, net
|
(22)
|
|
1,122
|
|
(1,382)
|
|
8,249
|
|
Provision
for income taxes
|
5,666
|
|
8,549
|
|
25,004
|
|
23,552
|
|
Depreciation and amortization
|
17,860
|
|
17,986
|
|
53,355
|
|
52,204
|
|
Transaction costs
|
8,339
|
|
-
|
|
10,715
|
|
-
|
|
Non-cash
stock-based compensation expense
|
2,043
|
|
1,928
|
|
7,219
|
|
7,665
|
|
Adjusted EBITDA
|
$
43,442
|
|
$
43,673
|
|
$
134,314
|
|
$
131,414
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA is a non-GAAP financial measure
that represents net income before depreciation and amortization
expenses, net interest income or expense, provision for income
taxes, non-cash stock-based compensation expense and other items
including transaction related costs. 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 AVAILABLE TO COMMON
STOCKHOLDERS AND ADJUSTED DILUTED EPS
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three
Months Ended 9/30/12
|
|
Three
Months Ended 9/30/11
|
|
Nine
Months Ended 9/30/12
|
|
Nine
Months Ended 9/30/11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income available to common stockholders
|
$
7,637
|
|
$
11,664
|
|
$
32,499
|
|
$
32,768
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Transaction costs
|
8,339
|
|
|
|
10,715
|
|
|
|
Adjustment
to normalize provision for income taxes
|
(3,416)
|
|
|
|
(4,254)
|
|
|
|
Impact of
adjustments on income allocated to participating
securities
|
(525)
|
|
|
|
(693)
|
|
|
|
Adjusted net income available to common
stockholders
|
$
12,035
|
|
$
11,664
|
|
$
38,267
|
|
$
32,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares - fully diluted
|
22,845
|
|
22,789
|
|
22,799
|
|
22,767
|
|
Adjusted
diluted EPS
|
$
0.53
|
|
$
0.51
|
|
$
1.68
|
|
$
1.44
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income Available to Common
Stockholders is a non-GAAP financial measure that represents net
income available to common stockholders before other items
including transaction related costs, net of tax. Adjusted
Diluted 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 Available to Common Stockholders
and Adjusted Diluted 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 Available to Common
Stockholders and Adjusted Diluted EPS are not recognized terms
under financial performance under GAAP, and our calculation of
Adjusted Net Income Available to Common Stockholders and Adjusted
Diluted EPS may not be comparable to the calculation of similarly
titled measures of other companies.
|
About GeoEye
GeoEye is a leading source of geospatial information and insight
for decision makers and analysts, who need a clear understanding of
our changing world to protect lives, manage risk and optimize
resources. Each day, organizations in defense and intelligence,
public safety, critical infrastructure, energy and online media
rely on GeoEye's imagery, tools and expertise to support important
missions around the globe. Widely recognized as a pioneer in
high-resolution satellite imagery, GeoEye has evolved into a
complete provider of geospatial intelligence solutions. GeoEye's
ability to collect, process and analyze massive amounts of
geospatial data allows our customers to quickly see precise changes
on the ground and anticipate where events may occur in the future.
GeoEye is a public company listed on NASDAQ as GEOY and is
headquartered in Herndon, Virginia
with more than 700 employees worldwide. Learn more at
www.geoeye.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
This release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Without limitation, the words "anticipates," "believes,"
"estimates," "expects," "intends," "plans," "will" and similar
expressions are intended to identify forward-looking statements.
All statements that address operating performance, events or
developments that we expect or anticipate will occur in the future,
including statements relating to growth, expected levels of
expenditures and statements expressing general optimism about
future operating results, are forward-looking statements.
Similarly, statements that describe our business strategy, outlook,
objectives, plans, intentions or goals also are forward-looking
statements. All such forward-looking statements and those presented
elsewhere by our management from time to time are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those in forward-looking statements. These
risks and uncertainties include, but are not limited to, those
described in "Risk Factors" included in our Annual Report on Form
10-K for the year ended December 31,
2011, which we filed with the Securities and Exchange
Commission ("SEC") on March 13, 2012,
as updated in our Quarterly Reports on Form 10-Q for the periods
ended March 31, 2012, and
June 30, 2012, which we filed with
the SEC on May 4, 2012, and
August 7, 2012, respectively. Copies
of all SEC filings may be obtained from the SEC's EDGAR Web site,
http://www.sec.gov/ or by contacting: William L. Warren, Executive Vice President,
General Counsel and Secretary, at 703-480-5672.
SOURCE GeoEye, Inc.
