DULLES, Va., May 10, 2010 /PRNewswire via COMTEX/ -- 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) Three Months Ended 3/31/10 3/31/09 Change ------- ------- ------ (unaudited) Revenues $80,389 $45,211 $35,178 Operating expenses: 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 ==== ======= ====== 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) Three Months Ended ------------------ 3/31/10 3/31/09 ------- ------- Net income (loss) $774 $(1,737) Adjustments: 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 ======= ======= 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) Three Months Ended 3/31/10 ------- Diluted EPS -------- Net income and diluted EPS $774 $0.04 Adjustment: Non-cash change in fair value of financial instrument 10,474 0.48 Adjusted net income and adjusted diluted EPS $11,248 $0.52 ======= ===== 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) December March 31, 31, 2010 2009 Change ---- ---- ------ (unaudited) ASSETS Current assets: 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 ======== ======== ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: 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 Stockholders' equity: 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) Three Months Ended 3/31/10 3/31/09 Change ------- ------- ------ (unaudited) 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 ======== ======= ======== About GeoEye GeoEye, Inc. is an international information services company serving government and commercial markets. The Company is recognized as one of the geospatial industry's imagery experts, delivering exceptional quality imagery products, services and solutions to customers around the world. Headquartered in Dulles, Virginia, the Company has 532 employees, as of March 31, 2010, dedicated to developing best-in-class geospatial information products and services. GeoEye is a public company listed on the NASDAQ stock exchange under the symbol GEOY. The Company provides support to academic institutions and non-governmental organizations through the GeoEye Foundation (http://www.geoeyefoundation.org).
Additional information about GeoEye is available 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 the Company expects or anticipates 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 the Company's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements and those presented elsewhere by the Company's 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 the Company's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2009, which was filed with the Securities and Exchange Commission ("SEC") on March 12, 2010, and the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2010, which is expected to be filed with the SEC on May 10, 2010. 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, senior vice president, general counsel and secretary, at 703-480-5672.
SOURCE GeoEye, Inc.
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