Revenue of $173 Million, Increased 12%
Operating Cash Flow of $86 Million, Increased 81%
$37 Million of Share Repurchases Bring Total to $176 Million
WESTMINSTER, Colo. — (BUSINESS WIRE) — October 29, 2015 — DigitalGlobe, Inc. (NYSE: DGI), a leading global provider of commercial high-resolution earth observation and advanced geospatial solutions, today reported financial results for the quarter ended September 30, 2015.
Third Quarter Financial Summary:
- Grew revenue 12.1% to $173.3 million.
- Increased U.S. Government revenue 26.4% to $111.0 million.
- Diversified Commercial revenue declined 6.7% to $62.3 million principally due to revenue from location based services.
- Net income was $9.6 million and net income less preferred stock dividends and Income allocated to participating securities was $8.2 million, or $0.12 per diluted share.
- Grew Adjusted EBITDA 48.6% to $91.4 million.
- Expanded Adjusted EBITDA margin 1290 bps to 52.7%.
- Increased Net cash flows from operations 80.6% to $85.6 million.
- Free cash flow was $51.5 million, yielding a free cash flow margin of 29.7%.
Recent Highlights:
- The National Geospatial-Intelligence Agency recently exercised the 6th option year of the EnhancedView SLA and awarded DigitalGlobe the fourth year of the Global Enhanced GEOINT Delivery (Global-EGD) contract.
- The company repurchased 1,491,098 shares of its common stock for $36.7 million at an average price of $24.62 per share.
- The company’s Board of Directors authorized an increase to the share repurchase program by an additional $130 million.
“Our margin expansion and strong free cash flow growth was driven by solid revenue growth and our continued focus on operational excellence,” said Jeffrey R. Tarr, DigitalGlobe CEO. “We are now generating ROIC above our weighted cost of capital, representing meaningful progress on our journey toward our long term returns target. While we have lowered our guidance, we are confident in our ability to continue to drive margin expansion and strong free cash flows. We are also firmly committed to returning capital to shareowners, as evidenced by our board’s decision, announced today, to increase our share repurchase authorization from $205 million to $335 million.”
Performance against key metrics:
| For the three months ended | |||||||||||||||||
| September 30, | |||||||||||||||||
| ($ in millions) | 2015 | 2014 | |||||||||||||||
| Revenue | $ | 173.3 | $ | 154.6 | |||||||||||||
| Net income (loss) available to common stockholders | $ | 8.2 | $ | (0.1) | |||||||||||||
| Adjusted EBITDA | $ | 91.4 | $ | 61.5 | |||||||||||||
| Adjusted EBITDA margin | 52.7 | % | 39.8 | % | |||||||||||||
| Net cash flows provided by operating activities | $ | 85.6 | $ | 47.4 | |||||||||||||
| Free cash flow | $ | 51.5 | $ | (40.4) | |||||||||||||
| Free cash flow margin | 29.7 | % | (26.1) | % | |||||||||||||
Lowered 2015 Revenue and Adjusted EBITDA Outlook:
- Revenue in a range of $685 million to $700 million.
- Adjusted EBITDA in a range of $330 million to $345 million.
- Capital expenditures of approximately $110 million.(1)
____________
(1) Excludes capitalized interest and amounts reimbursed from tenant improvement allowance.
Conference Call Information:
DigitalGlobe’s management will host a conference call today, October 29, 2015 at 5 p.m. ET to discuss its 2015 third quarter financial and operating results.
The conference call dial-in numbers are as follows:
U.S./Canada dial-in: (855) 212-2368
International dial-in: (315) 625-6886
Passcode: 60123751
A replay of the call will be available through November 28, 2015 at the following numbers:
U.S./Canada dial-in: (855) 859-2056
International dial-in: (404) 537-3406
Passcode: 60123751
DigitalGlobe will also sponsor a live and archived webcast of the conference call on the Investor Relations portion of its website. Click here to directly access the live webcast.
Supplemental earnings materials, including conference call slides and management scripts, are available on the Investor Relations section of the company’s website at www.digitalglobe.com.
About DigitalGlobe
DigitalGlobe is a leading global provider of commercial high-resolution earth observation and advanced geospatial solutions that help decision makers better understand our changing planet in order to save lives, resources and time. Sourced from the world's leading constellation, our imagery solutions deliver unmatched coverage and capacity to meet our customers' most demanding mission requirements. Each day customers in defense and intelligence, public safety, civil agencies, map making and analysis, environmental monitoring, oil and gas exploration, infrastructure management, navigation technology, and providers of location-based services depend on DigitalGlobe data, information, technology and expertise to gain actionable insight.
DigitalGlobe is a registered trademark of DigitalGlobe.
Special Note Regarding Forward-Looking Statements
Certain statements contained herein, including statements about our 2015 outlook and in the management quotation, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements relate to future events or future financial performance. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or “looks forward to” or the negative of these terms or other similar words, although not all forward-looking statements contain these words.
