DULLES, Va., Aug. 10 /PRNewswire-FirstCall/ -- GeoEye, Inc. (NASDAQ: GEOY), a premier provider of satellite, aerial and geospatial information, announced today results for its fiscal second quarter ended June 30, 2009.
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SECOND QUARTER RESULTS
Total revenues were $72.7 million for the second quarter of 2009, a 112 percent increase from $34.2 million for the second quarter of 2008. Net income for the second quarter of 2009 was $9.6 million, or $0.46 per fully diluted share, compared to a net loss of $558,000, or ($0.03) per fully diluted share, for the second quarter of 2008.
Revenues related to contracts with the U.S. Government, the Company's largest customer, were $47.5 million for the second quarter of 2009, representing 65.3 percent of total revenues for the period. Domestic revenues were $50.4 million for the second quarter of 2009, which were 69.4 percent of total revenues for the period. International revenues were $22.3 million for the second quarter of 2009, which were 30.6 percent of total revenues for the period. Domestic revenues increased 173.3 percent for the second quarter of 2009 compared to the same period in 2008, and international revenues increased 41.2 percent for the second quarter of 2009 compared to the same period in 2008.
Operating profit for the second quarter of 2009 increased $18.8 million from the second quarter of 2008 to $23.9 million. Operating margin was 32.8 percent for the second quarter of 2009 compared to 14.9 percent in the same period in 2008. Adjusted EBITDA, a non-GAAP measurement defined as net income before interest, taxes, depreciation, amortization, and non-cash recognition of stock compensation expense, increased approximately $31.6 million to approximately $40.5 million for the second quarter of 2009 from $8.8 million the same period in 2008. Adjusted EBITDA margin was 55.6 percent for the second quarter of 2009 compared to 25.7 percent for the same period in 2008.
The Company ended the second quarter of 2009 with unrestricted cash and cash equivalents of $47.8 million, total assets of $785.3 million, stockholders' equity of $241.0 million, and long-term debt of $247.9 million.
SIX-MONTH RESULTS
Total revenues for the six months ended June 30, 2009 were $117.9 million, a 68.1 percent increase from $70.1 million in the six months ended June 30, 2008. The Company's Adjusted EBITDA for the six-month period ended June 30, 2009 was $51.0 million, an increase of 179.5 percent from the same period in 2008. Net income for the six months ended June 30, 2009 was $7.8 million, or $0.38 per fully diluted share, as compared to a loss of $1.4 million, or ($0.08) per fully diluted share, in the same period of 2008.
FISCAL YEAR 2009 FINANCIAL OUTLOOK
Matt O'Connell, Chief Executive Officer and President, commented, "We are very pleased with the strong year-over-year revenue growth and operating performance in the second quarter. The operating success and financial results of the second quarter are due in large part because we are finally reaping the benefits of GeoEye-1, the world's best commercial imaging satellite.
"The GeoEye-1 satellite, the world's highest-resolution and highest-accuracy commercial imagery satellite, started commercial operations in February 2009. We achieved a significant ramp in revenues from our NGA contract in the second quarter, which was attributable to GeoEye-1's operating capabilities. We are pleased with the strong fundamentals of our business, and we believe we are strategically positioned for further expansion in both the government and commercial markets. We believe our solid financial position and strong operating cash flow will allow us to continue to invest for future growth.
"With the healthy mix of U.S. Government agency and commercial contracts, and the increasing growth of our international business, we believe we have strong visibility into the second half of 2009. GeoEye currently expects fiscal 2009 revenue to be between $270 million to $280 million, with adjusted EBITDA in the range of $125 million to $133 million, and EPS in a range of $1.10 per share to $1.37 per share. 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 second quarter ended June 30, 2009.
When: Aug. 11, 2009 at 8:30 a.m. EDT
To Participate: At least 10 minutes prior to the conference call, please dial (877) 675-4752 for U.S. domestic calls. For international calls please dial (719) 325-4906. Participants are encouraged to listen via Webcast, which will be broadcast live at www.geoeye.com.
Replay: A replay of the teleconference will be available starting at 10:30 a.m. EDT, Aug. 11, 2009 and will run until midnight EDT on Wednesday, Aug. 19. To access the replay, please dial (888)-203-1112, access code 5602409.
Selected financial results for the Company are as follows (dollars in
thousands, except earnings per share):
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
6/30/09 6/30/08 Change
------- ------- ------
Revenues $72,701 $34,219 $38,482
Operating expenses:
Direct costs of revenue
(exclusive of depreciation
and amortization) 22,808 17,319 5,489
Depreciation and
amortization 15,936 3,196 12,740
Selling, general and
administrative 10,098 8,605 1,493
Satellite impairment
settlement - (9) 9
--- --- ---
Total operating expenses 48,842 29,111 19,731
------ ------ ------
Income from operations 23,859 5,108 18,751
Interest expense, net 8,618 2,030 6,588
----- ----- -----
Income before provision for
income taxes 15,241 3,078 12,163
Provision for income taxes 5,689 3,636 2,053
----- ----- -----
Net income (loss) $9,552 $(558) $10,110
====== ===== =======
Earnings (loss) per share
basic $0.52 $(0.03) $0.55
===== ====== =====
Earnings (loss) per share
diluted $0.46 $(0.03) $0.49
===== ====== =====
Six Months Ended
6/30/09 6/30/08 Change
------- ------- ------
Revenues $117,912 $70,131 $47,781
Operating expenses:
Direct costs of revenue
(exclusive of depreciation
and amortization) 46,400 35,219 11,181
Depreciation and
amortization 24,396 6,469 17,927
Selling, general and
administrative 21,552 16,570 4,982
Satellite impairment
settlement - 1,141 (1,141)
--- ----- ------
Total operating expenses 92,348 59,399 32,949
------ ------ ------
Income from operations 25,564 10,732 14,832
Interest expense, net 14,180 5,758 8,422
------ ----- -----
Income before provision for
income taxes 11,384 4,974 6,410
Provision for income taxes 3,569 6,350 (2,781)
----- ----- ------
Net income (loss) $7,815 $(1,376) $9,191
====== ======= ======
Earnings (loss) per share
basic $0.42 $(0.08) $0.50
===== ====== =====
Earnings (loss) per share
diluted $0.38 $(0.08) $0.46
===== ====== =====
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
For the Three For the Six
Months Ended Months Ended
June 30, June 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited) (Unaudited)
Net income (loss) $9,552 $(558) $7,815 $(1,376)
Adjustments:
Interest expense, net 8,618 2,030 14,180 5,758
Provision for income taxes 5,689 3,636 3,569 6,350
Depreciation and amortization 15,936 3,196 24,396 6,469
Non-cash stock-based compensation
expense 657 501 1,029 1,043
--- --- ----- -----
Adjusted EBITDA $40,452 $8,805 $50,989 $18,244
======= ====== ======= =======
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2009 2008 Change
---- ---- ------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $47,755 $106,733 $(58,978)
Short-term investments - 3,813 (3,813)
Accounts receivable -
trade and unbilled
receivables (net of
allowances: 2009 -$1,048;
2008 -$738) 52,996 26,851 26,145
Income tax receivable 16,050 20,142 (4,092)
Restricted cash 4,473 - 4,473
Other current assets 15,293 34,325 (19,032)
------ ------ -------
Total current assets 136,567 191,864 (55,297)
Property, plant and
equipment, net 25,956 22,748 3,208
Satellites and related
ground systems, net 517,648 488,145 29,503
Goodwill 34,264 34,264 -
Intangible assets, net 13,006 14,335 (1,329)
Restricted cash 15,628 - 15,628
Other non-current assets 11,974 12,978 (1,004)
Deferred tax asset 30,271 30,271 -
------ ------ ---
Total assets $785,314 $794,605 $(9,291)
======== ======== =======
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued expenses $41,962 $69,763 $(27,801)
Current portion of deferred
revenue 56,264 40,629 15,635
Current deferred tax
liability 5,594 5,594 -
----- ----- ---
Total current liabilities 103,820 115,986 (12,166)
Long-term debt 247,859 247,502 357
Long-term deferred revenue,
net of current portion 191,959 199,317 (7,358)
Non-current income tax
reserve 688 1,396 (708)
--- ----- ----
Total liabilities 544,326 564,201 (19,875)
------- ------- -------
Commitments and contingencies - - -
Stockholders' equity:
Preferred stock - - -
Common stock 186 184 2
Additional paid-in capital 213,280 210,513 2,767
Retained earnings 27,522 19,707 7,815
------ ------ -----
Total stockholders' equity 240,988 230,404 10,584
------- ------- ------
Total liabilities and
stockholders' equity $785,314 $794,605 $(9,291)
======== ======== =======
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
------------------
2009 2008 Change
---- ---- ------
Net cash (used in)
provided by operating
activities $(11,301) $36,027 $(47,328)
Net cash used in
investing activities (49,525) (46,179) (3,346)
Net cash provided by
financing activities 1,848 1,075 773
Net decrease in cash and
cash equivalents (58,978) (9,077) (49,901)
Cash and cash equivalents,
beginning of period 106,733 226,761 (120,028)
------- ------- --------
Cash and cash
equivalents, end of
period $47,755 $217,684 $(169,929)
======= ======== =========
ABOUT GEOEYE
GeoEye, Inc. is an international technology company serving government and commercial markets. The Company is recognized as one of the geospatial industry's imagery experts, delivering exceptional quality imagery products and solutions to customers around the world. Headquartered in Dulles, Virginia, the Company has 534 employees, as of June 30, 2009, dedicated to developing best-in-class geospatial, communications and information products, systems, and services. The Company provides support to academic institutions and non-governmental organizations through the GeoEye Foundation ( http://www.geoeyefoundation.org). GeoEye is a public company listed on the NASDAQ stock exchange under the symbol GEOY. 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 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 fiscal year ended Dec. 31, 2008, which we filed with the Securities and Exchange Commission ("SEC") on April 2, 2009, and our Quarterly Report on Form 10-Q for the period ended March 31, 2009 and June 30, 2009, which we filed with the SEC on May 12, 2009 and Aug. 10, 2009, respectively. A copy 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.
Web site: http://www.geoeye.com/