GeoEye Reports Fourth Quarter and Fiscal Year 2011 Earnings

GeoEye Reports Fourth Quarter and Fiscal Year 2011 Earnings Results

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://www.geoeye.com/CorpSite/corporate/investor-relations/Default.aspx and click on the "March 13, 2012 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 fourth quarter conference call will be available through midnight March 22, 2012, by dialing (800) 642-1687 and typing in the conference ID number: 40408544.

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)

		Three Months Ended December 31,
		2011	2010	Change
		(unaudited)
Revenues		$ 96,806	$ 82,543	$ 14,263
Operating expenses:
	Direct costs of revenue (exclusive of depreciation and amortization)	31,726	26,105	5,621
	Depreciation and amortization	19,636	16,677	2,959
	Selling, general and administrative	16,315	16,067	248
	Goodwill impairment	2,500	-	2,500
	Total operating expenses	70,177	58,849	11,328
Income from operations		26,629	23,694	2,935
Interest expense, net		-	(6,204)	6,204
Gain from investments		-	2,500	(2,500)
Income before provision for income taxes		26,629	19,990	6,639
Provision for income taxes		(9,761)	(1,900)	(7,861)
Net income		16,868	18,090	(1,222)
Preferred stock dividends		(1,008)	(1,008)	-
Net income less preferred stock dividends		15,860	17,082	(1,222)
Income allocated to participating securities		(1,716)	(1,871)	155
Net income available to common stockholders		$ 14,144	$ 15,211	$ (1,067)

Earnings per share
	Basic	$ 0.64	$ 0.70	$ (0.06)
	Diluted	$ 0.62	$ 0.68	$ (0.06)
Shares used to compute basic earnings per share		22,157	21,855
Shares used to compute diluted earnings per share		22,797	22,523

		Year Ended December 31,
		2011	2010	Change
		(unaudited)
Revenues		$ 356,407	$ 330,345	$ 26,062
Operating expenses:
	Direct costs of revenue (exclusive of depreciation and amortization)	122,972	104,010	18,962
	Depreciation and amortization	71,840	65,262	6,578
	Selling, general and administrative	60,921	57,451	3,470
	Goodwill impairment	2,500	-	2,500
	Total operating expenses	258,233	226,723	31,510
Income from operations		98,174	103,622	(5,448)
Interest expense, net		(8,249)	(27,918)	19,669
Other non-operating expense		-	(24,466)	24,466
Gain from investments		-	3,200	(3,200)
Loss from early extinguishment of debt		-	(37)	37
Write-off of prepaid financing costs		-	(6,412)	6,412
Income before provision for income taxes		89,925	47,989	41,936
Provision for income taxes		(33,313)	(23,352)	(9,961)
Net income		56,612	24,637	31,975
Preferred stock dividends		(4,000)	(1,107)	(2,893)
Net income less preferred stock dividends		52,612	23,530	29,082
Income allocated to participating securities		(5,701)	(783)	(4,918)
Net income available to common stockholders		$ 46,911	$ 22,747	$ 24,164

Earnings per share
	Basic	$ 2.12	$ 1.05	$ 1.07
	Diluted	$ 2.06	$ 1.02	$ 1.04
Shares used to compute basic earnings per share		22,119	21,622
Shares used to compute diluted earnings per share		22,788	22,250

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

	December 31,	December 31,
	2011	2010	Change
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$ 188,738	$ 283,233	$ (94,495)
Short-term investments	9,220	50,124	(40,904)
Accounts receivable - trade and unbilled receivables, net	39,917	42,868	(2,951)
Income tax receivable	19,645	34,385	(14,740)
Restricted cash	4,207	3,952	255
Current deferred tax assets	2,148	-	2,148
Prepaid expenses and other current assets	14,805	16,183	(1,378)
Total current assets	278,680	430,745	(152,065)
Property, plant and equipment, net	48,065	35,924	12,141
Satellites and related ground systems, net	913,454	697,126	216,328
Goodwill	68,130	71,568	(3,438)
Intangible assets, net	10,526	14,943	(4,417)
Non-current restricted cash	6,875	10,822	(3,947)
Other non-current assets	8,855	7,957	898
Total assets	$ 1,334,585	$ 1,269,085	$ 65,500

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses	$ 58,510	$ 70,936	$ (12,426)
Current portion of deferred revenue	53,433	50,533	2,900
Current deferred tax liabilities	-	6,656	(6,656)
Total current liabilities	111,943	128,125	(16,182)
Long-term debt	511,019	508,160	2,859
Long-term deferred revenue, net of current portion	131,968	161,673	(29,705)
Deferred tax liabilities	64,694	21,336	43,358
Other non-current liabilities	7,674	6,548	1,126
Total liabilities	827,298	825,842	1,456
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	379,154	367,723	11,431
Retained earnings	127,910	75,298	52,612
Total stockholders’ equity	507,287	443,243	64,044
Total liabilities and stockholders’ equity	$ 1,334,585	$ 1,269,085	$ 65,500

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION
(in thousands)

	Year Ended December 31,
	2011	2010	Change
	(unaudited)
Net cash provided by operating activities	$ 182,908	$ 126,693	$ 56,215
Net cash used in investing activities	(274,425)	(265,921)	(8,504)
Net cash (used in) provided by financing activities	(2,978)	213,589	(216,567)
Net (decrease) increase in cash and cash equivalents	(94,495)	74,361	(168,856)
Cash and cash equivalents, beginning of period	283,233	208,872	74,361
Cash and cash equivalents, end of period	$ 188,738	$ 283,233	$ (94,495)

ADJUSTED EBITDA
(in thousands)
(unaudited)

	Three Months Ended December 31,		Year Ended December 31,
	2011	2010	2011	2010
Net income	$ 16,868	$ 18,090	$ 56,612	$ 24,637
Adjustments:
Interest expense, net	-	6,204	8,249	27,918
Loss from early extinguishment of debt	-	-	-	37
Write-off of prepaid financing costs	-	-	-	6,412
Provision for income taxes	9,761	1,900	33,313	23,352
Depreciation and amortization	19,636	16,677	71,840	65,262
Non-cash stock-based compensation expense	2,855	2,192	10,520	6,877
Non-cash change in fair value of financial instrument	-	-	-	24,466
Gain from investments	-	(2,500)	-	(3,200)
Goodwill impairment	2,500	-	2,500	-
Acquisition costs	-	1,167	-	1,167
Adjusted EBITDA	$ 51,620	$ 43,730	$ 183,034	$ 176,928

Adjusted EBITDA is a non-GAAP financial measure that represents net income before interest, net, provision for income taxes, 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 of 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)
(unaudited)

	Three Months Ended December 31,		Year Ended December 31,
	2011	2010	2011	2010

Net income available to common stockholders	$ 14,144	$ 15,211	$ 46,911	$ 22,747
Adjustments:
Non-cash change in fair value of financial instrument	-	-	-	24,466
Loss from early extinguishment of debt	-	-	-	37
Write-off of prepaid financing costs	-	-	-	6,412
Gain from investments	-	(2,500)	-	(3,200)
Goodwill impairment	2,500	-	2,500	-
Long-lived asset impairment	1,600	-	1,600	-
Acquisition costs	-	1,167	-	1,167
Impact of adjustments on income allocated to participating securities	(382)	703	(382)	(740)
Adjustment to normalize provision for income taxes	(624)	(5,085)	(624)	(6,628)
Adjusted net income available to common stockholders	$ 17,238	$ 9,496	$ 50,005	$ 44,261

Adjusted fully diluted shares	22,797	22,523	22,788	22,250
Adjusted diluted EPS	$ 0.76	$ 0.42	$ 2.19	$ 1.99

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 of 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.

« Previous Page 1 | 2 | 3 Next Page »