-- Conference Call Scheduled for Tuesday, November 1, 2011, 8:30 a.m. EDT --
(PRNewswire) — GeoEye, Inc. (NASDAQ: GEOY), a leading source of geospatial information and insight, announced today results for its fiscal third quarter ended Sept. 30, 2011.(Logo: http://photos.prnewswire.com/prnh/20080625/LAW528LOGO)
"While results for the third quarter were below our expectations, our core business continues to be strong," said Matt O'Connell, GeoEye's chief executive officer and president. "We renewed our Service Level Agreement with the National Geospatial-Intelligence Agency for another year, booked some significant new production orders and maintained strong margins. We have positioned the Company to resume growth from our government, international and commercial clients in the fourth quarter."
THIRD QUARTER RESULTS
Total revenues were $85.8 million for the third quarter of 2011, an 0.8 percent decrease from the third quarter of 2010. The net income available to common stockholders for the third quarter of 2011 was $11.7 million, or $0.51 per fully diluted share, compared to a loss of $6.5 million, or ($0.30) per fully diluted share, for the third quarter of 2010. Adjusted net income available to common shareholders (a non-GAAP measurement that excludes the impact of non-operating charges, gains and one-time charges and tax benefits) for the third quarter of 2011 was also $11.7 million, or $0.51 per diluted share, as compared to $13.6 million, or $0.61 per diluted share, in the same period in 2010.
Operating profit was $23.8 million for the third quarter of 2011. Operating margin was 27.7 percent for the third quarter of 2011, compared to 33.7 percent in the third quarter of 2010. 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) was approximately $43.7 million for the third quarter of 2011, compared to $47.4 million in the same period in 2010. The Adjusted EBITDA as a percentage of revenues was 50.9 percent for the third quarter of 2011, compared to 54.8 percent in the third quarter of 2010.
The Company ended the third quarter of 2011 with unrestricted cash, cash equivalents and short-term investments of $218.5 million; total assets of approximately $1.3 billion; stockholders' equity of $488.4 million and long-term debt of $510.3 million.
THIRD QUARTER 2011 OPERATING HIGHLIGHTS
Revenue Mix
- Imagery revenues in the third quarter of 2011 were $63.5 million, or 74.0 percent of total revenues. Production and other services revenues were $16.2 million, or 19.0 percent of total revenues. The NextView cost share accounted for revenues of $6.0 million, or 7.0 percent of total revenues.
Geographic Information
- Domestic revenues were $63.7 million for the third quarter of 2011, or 74.3 percent of total revenues for the period. International revenues were $22.1 million for the third quarter of 2011, or 25.7 percent of total revenues for the period.
- Domestic revenues increased 1.9 percent for the third quarter of 2011, compared to the same period in 2010. International revenues were down 7.8 percent for the third quarter of 2011, compared to the same period in 2010.
GeoEye-2 Capital Investments
- During the quarter, the Company invested $62.7 million for the continued development and construction of the GeoEye-2 satellite, including $12.1 million of capitalized interest. To date, the Company has invested $518.1 million in the GeoEye-2 satellite program, including $49.7 million of capitalized interest.
NINE MONTH RESULTS
Total revenues for the nine months ended Sept. 30, 2011, were $259.6 million, a 4.8 percent increase from $247.8 million in the nine months ended Sept. 30, 2010. The Company's Adjusted EBITDA for the nine-month period ended Sept. 30, 2011, was $131.4 million, a decrease of 1.3 percent from the same period in 2010. The net income available to common stockholders for the nine months ended Sept. 30, 2011, was $32.8 million, or $1.44 per fully diluted share, as compared to net income available to common stockholders of $6.4 million, or $0.29 per fully diluted share, in the same period in 2010.
FISCAL YEAR 2011 FINANCIAL OUTLOOK
For the full year, the Company is revising its previous revenue, Adjusted EBITDA and earnings per share guidance. Our new expectations for 2011 are for revenues to range from $348 million to $355 million, Adjusted EBITDA to range from $176 million to $181 million and earnings per share of $1.95 to $2.15. In the fourth quarter, we anticipate sequential growth and expect revenues to be in the range of $88 million to $95 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 third quarter, which ended Sept. 30, 2011.
When: Tuesday, Nov. 1, 2011, at 8:30 a.m. Eastern Daylight Time
To Participate:
To participate in the call via phone, domestic callers may dial toll-free at (877) 776-4039. International callers may dial (631) 291-4808 approximately 10 minutes prior to the start time. Callers may identify themselves to the operator as GeoEye conference call participants or by using the conference ID: 10931966. Questions will be accepted from phone participants during the live call after prepared remarks and as time permits.
The conference call will also be webcast on the "Investor Relations" section of the Company's corporate Web site, www.geoeye.com. To directly access the live webcast go to: http://geoy.client.shareholder.com/eventdetail.cfm?eventid=102870 and click on the "November 1, 2011 Investor Update Webcast" link. Please allow 15 minutes before the scheduled start time to register, download and install any necessary audio software.
Replay:
An audio replay of the third quarter conference call will be available through midnight Nov. 15, 2011, by dialing (855) 859-2056 and typing in the conference ID number 10931966.
An archived webcast of the conference call will be available at the same URL address approximately two hours after the conclusion of the call.
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) | |||||||
|
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| |
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| Three Months Ended September 30, |
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| |||
|
|
| 2011 |
| 2010 |
| Change | |
|
|
| (unaudited) |
|
| |||
| Revenues | $ 85,769 |
| $ 86,452 |
| $ (683) | ||
| Operating expenses: |
|
|
|
|
| ||
|
| Direct costs of revenue (exclusive of depreciation and amortization) | 28,508 |
| 26,722 |
| 1,786 | |
|
| Depreciation and amortization | 17,986 |
| 16,363 |
| 1,623 | |
|
| Selling, general and administrative | 15,516 |
| 14,219 |
| 1,297 | |
|
| Total operating expenses | 62,010 |
| 57,304 |
| 4,706 | |
| Income from operations | 23,759 |
| 29,148 |
| (5,389) | ||
| Interest expense, net | (1,122) |
| (5,719) |
| 4,597 | ||
| Other non-operating expense | - |
| (16,047) |
| 16,047 | ||
| Gain from investments | - |
| 700 |
| (700) | ||
| Write-off of prepaid financing costs | - |
| (6,412) |
| 6,412 | ||
| Income before provision for income taxes | 22,637 |
| 1,670 |
| 20,967 | ||
| Provision for income taxes | (8,549) |
| (8,046) |
| (503) | ||
| Net income (loss) | 14,088 |
| (6,376) |
| 20,464 | ||
| Preferred stock dividends | (1,008) |
| (99) |
| (909) | ||
|
|
| 13,080 |
| (6,475) |
| 19,555 | |
| Income allocated to participating securities | (1,416) |
| - |
| (1,416) | ||
| Net income (loss) available to common stockholders | $ 11,664 |
| $ (6,475) |
| $ 18,139 | ||
|
|
|
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|
|
|
| |
| Earnings (loss) per share |
|
|
|
|
| ||
|
| Basic | $ 0.53 |
| $ (0.30) |
| $ 0.83 | |
|
| Diluted | $ 0.51 |
| $ (0.30) |
| $ 0.81 | |
| Shares used to compute basic earnings per share | 22,147 |
| 21,792 |
|
| ||
| Shares used to compute diluted earnings per share | 22,789 |
| 21,792 |
|
| ||
|
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| |
|
|
| Nine Months Ended September 30, |
|
| |||
|
|
| 2011 |
| 2010 |
| Change | |
|
|
| (unaudited) |
|
| |||
| Revenues | $ 259,601 |
| $ 247,802 |
| $ 11,799 | ||
| Operating expenses: |
|
|
|
|
| ||
|
| Direct costs of revenue (exclusive of depreciation and amortization) | 91,246 |
| 77,905 |
| 13,341 | |
|
| Depreciation and amortization | 52,204 |
| 48,585 |
| 3,619 | |
|
| Selling, general and administrative | 44,606 |
| 41,384 |
| 3,222 | |
|
| Total operating expenses | 188,056 |
| 167,874 |
| 20,182 | |
| Income from operations | 71,545 |
| 79,928 |
| (8,383) | ||
| Interest expense, net | (8,249) |
| (21,714) |
| 13,465 | ||
| Other non-operating expense | - |
| (24,466) |
| 24,466 | ||
| Gain from investments | - |
| 700 |
| (700) | ||
| Loss from early extinguishment of debt | - |
| (37) |
| 37 | ||
| Write-off of prepaid financing costs | - |
| (6,412) |
| 6,412 | ||
| Income before provision for income taxes | 63,296 |
| 27,999 |
| 35,297 | ||
| Provision for income taxes | (23,552) |
| (21,452) |
| (2,100) | ||
| Net income | 39,744 |
| 6,547 |
| 33,197 | ||
| Preferred stock dividends | (2,992) |
| (99) |
| (2,893) | ||
|
|
| 36,752 |
| 6,448 |
| 30,304 | |
| Income allocated to participating securities | (3,984) |
| (27) |
| (3,957) | ||
| Net income available to common stockholders | $ 32,768 |
| $ 6,421 |
| $ 26,347 | ||
|
|
|
|
|
|
|
| |
| Earnings per share |
|
|
|
|
| ||
|
| Basic | $ 1.48 |
| $ 0.30 |
| $ 1.18 | |
|
| Diluted | $ 1.44 |
| $ 0.29 |
| $ 1.15 | |
| Shares used to compute basic earnings per share | 22,107 |
| 21,544 |
|
| ||
| Shares used to compute diluted earnings per share | 22,767 |
| 21,982 |
|
| ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands) | ||||||
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| |
|
| September 30, |
| December 31, |
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| |
|
| 2011 |
| 2010 |
| Change | |
|
| (unaudited) |
|
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| |
| ASSETS | ||||||
| Current assets: |
|
|
|
|
| |
| Cash and cash equivalents | $ 209,328 |
| $ 283,233 |
| $ (73,905) | |
| Short-term investments | 9,220 |
| 50,124 |
| (40,904) | |
| Accounts receivable - trade and unbilled receivables, net | 36,014 |
| 42,868 |
| (6,854) | |
| Income tax receivable | 20,014 |
| 34,385 |
| (14,371) | |
| Restricted cash | 4,207 |
| 3,952 |
| 255 | |
| Prepaid expenses and other current assets | 13,427 |
| 16,183 |
| (2,756) | |
| Total current assets | 292,210 |
| 430,745 |
| (138,535) | |
| Property, plant and equipment, net | 48,097 |
| 35,924 |
| 12,173 | |
| Satellites and related ground systems, net | 867,480 |
| 697,126 |
| 170,354 | |
| Goodwill | 71,250 |
| 71,568 |
| (318) | |
| Intangible assets, net | 12,277 |
| 14,943 |
| (2,666) | |
| Non-current restricted cash | 7,862 |
| 10,822 |
| (2,960) | |
| Other non-current assets | 8,366 |
| 7,957 |
| 409 | |
| Total assets | $ 1,307,542 |
| $ 1,269,085 |
| $ 38,457 | |
|
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| |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: |
|
|
|
|
| |
| Accounts payable and accrued expenses | $ 54,464 |
| $ 70,936 |
| $ (16,472) | |
| Current portion of deferred revenue | 55,122 |
| 50,533 |
| 4,589 | |
| Current deferred tax liabilities | 6,656 |
| 6,656 |
| - | |
| Total current liabilities | 116,242 |
| 128,125 |
| (11,883) | |
| Long-term debt | 510,275 |
| 508,160 |
| 2,115 | |
| Long-term deferred revenue, net of current portion | 139,406 |
| 161,673 |
| (22,267) | |
| Deferred tax liabilities | 45,492 |
| 21,336 |
| 24,156 | |
| Other non-current liabilities | 7,713 |
| 6,548 |
| 1,165 | |
| Total liabilities | 819,128 |
| 825,842 |
| (6,714) | |
| Commitments and contingencies | - |
| - |
| - | |
| Stockholders’ equity: |
|
|
|
|
| |
| Series A convertible preferred stock | 1 |
| 1 |
| - | |
| Series B junior participating preferred stock | - |
| - |
| - | |
| Common stock | 222 |
| 221 |
| 1 | |
| Additional paid-in capital | 376,141 |
| 367,723 |
| 8,418 | |
| Retained earnings | 112,050 |
| 75,298 |
| 36,752 | |
| Total stockholders’ equity | 488,414 |
| 443,243 |
| 45,171 | |
| Total liabilities and stockholders’ equity | $ 1,307,542 |
| $ 1,269,085 |
| $ 38,457 | |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION | ||||||
| (in thousands) | ||||||
|
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| |
|
| Nine Months Ended September 30, |
|
| |||
|
| 2011 |
| 2010 |
| Change | |
|
| (unaudited) |
|
| |||
| Net cash provided by operating activities | $ 133,702 |
| $ 94,995 |
| $ 38,707 | |
| Net cash used in investing activities | (205,765) |
| (149,905) |
| (55,860) | |
| Net cash (used in) provided by financing activities | (1,842) |
| 92,739 |
| (94,581) | |
| Net (decrease) increase in cash and cash equivalents | (73,905) |
| 37,829 |
| (111,734) | |
| Cash and cash equivalents, beginning of period | 283,233 |
| 208,872 |
| 74,361 | |
| Cash and cash equivalents, end of period | $ 209,328 |
| $ 246,701 |
| $ (37,373) | |
| ADJUSTED EBITDA | ||||||||
| (in thousands) | ||||||||
|
|
|
|
|
|
|
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| |
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||
|
| 2011 |
| 2010 |
| 2011 |
| 2010 | |
| Net income (loss) | $ 14,088 |
| $ (6,376) |
| $ 39,744 |
| $ 6,547 | |
| Adjustments: |
|
|
|
|
|
|
| |
| Interest expense, net | 1,122 |
| 5,719 |
| 8,249 |
| 21,714 | |
| Loss from early extinguishment of debt | - |
| - |
| - |
| 37 | |
| Write-off of prepaid financing costs | - |
| 6,412 |
| - |
| 6,412 | |
| Provision for income taxes | 8,549 |
| 8,046 |
| 23,552 |
| 21,452 | |
| Depreciation and amortization | 17,986 |
| 16,363 |
| 52,204 |
| 48,585 | |
| Non-cash stock-based compensation expense | 1,928 |
| 1,844 |
| 7,665 |
| 4,685 | |
| Non-cash change in fair value of financial instrument | - |
| 16,047 |
| - |
| 24,466 | |
| Gain from investments | - |
| (700) |
| - |
| (700) | |
| Adjusted EBITDA | $ 43,673 |
| $ 47,355 |
| $ 131,414 |
| $ 133,198 | |
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| 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. 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 | ||||||||
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| (in thousands, except per share amounts) | ||||||||
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| |||
|
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| Three Months Ended September 30, 2011 |
| Three Months Ended September 30, 2010 |
| Nine Months Ended September 30, 2011 |
| Nine Months Ended September 30, 2010 | |
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| |
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|
|
| |
|
| Net income available to common stockholders | $ 11,664 |
| $ (6,475) |
| $ 32,768 |
| $ 6,421 | |
|
| Adjustments: |
|
|
|
|
|
|
| |
|
| Non-cash change in fair value of financial instrument | - |
| 16,047 |
| - |
| 24,466 | |
|
| Write-off of prepaid financing costs | - |
| 6,412 |
| - |
| 6,412 | |
|
| Gain from sale of investment | - |
| (700) |
| - |
| (700) | |
|
| Income allocated to participating securities | - |
| (164) |
| - |
| - | |
|
| Tax impact of adjustments | - |
| (1,521) |
| - |
| (1,543) | |
|
| Adjusted net income available to common stockholders | $ 11,664 |
| $ 13,599 |
| $ 32,768 |
| $ 35,056 | |
|
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| |
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|
|
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| |
|
| Weighted average shares diluted | 22,789 |
| 21,792 |
| 22,767 |
| 21,982 | |
|
| Dilutive effect of stock options and other instruments | - |
| 355 |
| - |
| - | |
|
| Adjusted fully diluted shares | 22,789 |
| 22,147 |
| 22,767 |
| 21,982 | |
|
| Adjusted diluted EPS | $ 0.51 |
| $ 0.61 |
| $ 1.44 |
| $ 1.59 | |
|
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| Adjusted Net Income Available to Common Stockholders is a non-GAAP financial measure that represents net income available to common stockholders before other items, 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. | ||||||||
