DULLES, Va., Nov. 9 /PRNewswire-FirstCall/ -- GeoEye, Inc. (NASDAQ: GEOY), a premier provider of satellite and aerial-based geospatial information and services, announced today results for its fiscal third quarter ended September 30, 2009.
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THIRD QUARTER RESULTS
Total revenues were $79.9 million for the third quarter of 2009, a 123% increase from $35.8 million for the third quarter of 2008. Net income for the third quarter of 2009 was $12.5 million, or $0.61 per fully diluted share, compared to net income of $31.6 million, or $1.57 per fully diluted share, for the third quarter of 2008. The 2008 third quarter earnings included a $27.8 million non-recurring net tax benefit which amounted to $1.38 per share of net income.
Revenues related to contracts with the U.S. Government, the Company's largest customer, were $53.6 million for the third quarter of 2009, representing 67% of total revenues for the period. Domestic revenues were $57.9 million for the third quarter of 2009, which were 72.5% of total revenues for the period. International revenues were $22.0 million for the third quarter of 2009, which were 27.5% of total revenues for the period. Domestic revenues increased 186% for the third quarter of 2009 compared to the same period in 2008, and international revenues increased 41.3% for the third quarter of 2009 compared to the same period in 2008.
Operating profit for the third quarter of 2009 increased $19.3 million from the third quarter of 2008 to $27.7 million. Operating margin was 34.7% for the third quarter of 2009 compared to 23.5% 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 $32.3 million to approximately $44.5 million for the third quarter of 2009 from $12.2 million the same period in 2008. Adjusted EBITDA margin was 55.7% for the third quarter of 2009 compared to 34.0% for the same period in 2008.
The Company ended the third quarter of 2009 with unrestricted cash and cash equivalents of $123.6 million, total assets of $812.1 million, and stockholders' equity of $257.6 million and long-term debt of $248.0 million.
NINE MONTH RESULTS
Total revenues for the nine months ended September 30, 2009 were $197.9 million, an 86.7% increase from $106.0 million in the nine months ended September 30, 2008. The Company's Adjusted EBITDA for the nine month period ended September 30, 2009 was $95.5 million, an increase of 213.8% from the same period in 2008. Net income for the nine months ended September 30, 2009 was $20.3 million, or $0.99 per fully diluted share, as compared to net income of $30.3 million, or $1.49 per fully diluted share, in the same period of 2008. The 2008 number includes $23.7 million of non-recurring net tax benefits which amounts to $1.17 per share of net income.
FISCAL YEAR 2009 FINANCIAL OUTLOOK
Matt O'Connell, Chief Executive Officer and President, commented, "We're very pleased with our third quarter results. We experienced very strong year-over-year revenue growth, cash flow growth, solid operating performance in our business and superior EPS results.
"We continued to ramp our revenues from the National Geospatial-Intelligence Agency (the NGA) contract in the third quarter, which was attributable to GeoEye-1's best-in-class operating capabilities. We successfully negotiated terms of an extension to our existing Service Level Agreement with the NGA that will take us through March 31, 2010, with an option by the NGA to extend the agreement through December 2010. We successfully completed a $400.0 million notes offering that closed in October. This notes offering process was a very positive event in that it laid the foundation for the Company's growth over the next three to five years.
"With the healthy mix of U.S. Government agency and commercial contracts, and the growth of our international business, we believe we have strong visibility into the fourth quarter of 2009. GeoEye currently expects fiscal 2009 revenue to be between $275.0 million to $280.0 million, with adjusted EBITDA (excluding a non-recurring charge related to the extinguishment of debt) in the range of $133.0 million to $137.0 million, and proforma EPS in a range of $1.30 per share to $1.45 per share (excluding a non-recurring charge related to the extinguishment of debt). 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 ended September 30, 2009.
When: November 10, 2009 at 8:30 a.m. Eastern Time
To Participate: At least 10 minutes prior to the conference call, callers wishing to participate on the call may dial (719) 325-2336. Domestic callers who wish to listen may dial toll-free at (888)-417-2254. Participants are encouraged to listen via web cast, which will be broadcast live at www.geoeye.com, under Investor Relations.
Replay: A replay of the teleconference will be available starting at 10:30 a.m. ET, November 10, 2009 and will run until midnight ET on Wednesday, November 18. To access the replay, please dial (888)-203-1112, access code 5411232.
Selected financial results for the Company are as follows (dollars in thousands, except earnings per share):
Three Months Ended
9/30/09 9/30/08 Change
------- ------- ------
(unaudited)
Revenues $79,941 $35,840 $44,101
Operating expenses:
Direct costs of revenue (exclusive of
depreciation and amortization) 23,836 16,546 7,290
Depreciation and amortization 16,347 2,221 14,126
Selling, general and administrative 12,042 8,655 3,387
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Total operating expenses 52,225 27,422 24,803
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Income from operations 27,716 8,418 19,298
Interest expense, net 8,659 2,783 5,876
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Income before provision for income taxes 19,057 5,635 13,422
Provision (benefit) for income taxes 6,530 (25,994) 32,524
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Net income $12,527 $31,629 $(19,102)
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Earnings per share basic $0.67 $1.76 $(1.09)
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Earnings per share diluted $0.61 $1.57 $(0.96)
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Nine Months Ended
9/30/09 9/30/08 Change
------- ------- ------
(unaudited)
Revenues $197,853 $105,971 $91,882
Operating expenses:
Direct costs of revenue (exclusive of
depreciation and amortization) 70,235 51,765 18,470
Depreciation and amortization 40,743 8,690 32,053
Selling, general and administrative 33,594 25,225 8,369
Satellite impairment - 1,141 (1,141)
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Total operating expenses 144,572 86,821 57,751
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Income from operations 53,281 19,150 34,131
Interest expense, net 22,839 8,541 14,298
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Income before provision for income taxes 30,442 10,609 19,833
Provision (benefit) for income taxes 10,100 (19,645) 29,745
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Net income $20,342 $30,254 $(9,912)
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Earnings per share basic $1.10 $1.69 $(0.59)
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Earnings per share diluted $0.99 $1.49 $(0.50)
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For the Three For the Nine
Months Ended Months Ended
9/30/09 9/30/08 9/30/09 9/30/08
------- ------- ------- -------
Net income $12,527 $31,629 $20,342 $30,254
Adjustments:
Interest expense, net 8,659 2,783 22,839 8,541
Provision (benefit) for income taxes 6,530 (25,994) 10,100 (19,645)
Depreciation and amortization 16,347 2,221 40,743 8,690
Non-cash stock-based compensation
expense 466 1,558 1,495 2,601
--- ----- ----- -----
Adjusted EBITDA $44,529 $12,197 $95,519 $30,441
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We believe that Adjusted EBITDA provides useful information to investors
because it is an indicator of the strength and performance of our ongoing
business operations.
September 30, December 31,
2009 2008 Change
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(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $123,588 $106,733 $16,855
Short-term investments - 3,813 (3,813)
Accounts receivable - trade and
unbilled receivables (net of
allowances: 2009 -$1,015; 2008 -
$738) 43,234 26,851 16,383
Income tax receivable - 20,142 (20,142)
Restricted cash 4,308 - 4,308
Other current assets 15,374 34,325 (18,951)
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Total current assets 186,504 191,864 (5,360)
Property, plant and equipment, net 24,977 22,748 2,229
Satellites and related ground systems,
net 511,333 488,145 23,188
Goodwill 34,264 34,264 -
Intangible assets, net 12,346 14,335 (1,989)
Non-current restricted cash 14,640 - 14,640
Other non-current assets 12,986 12,978 8
Deferred tax assets 15,005 30,271 (15,266)
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Total assets $812,055 $794,605 $17,450
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $44,437 $69,763 $(25,326)
Current portion of deferred revenue 55,782 40,629 15,153
Current deferred tax liability 5,594 5,594 -
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Total current liabilities 105,813 115,986 (10,173)
Long-term debt 248,037 247,502 535
Long-term deferred revenue, net of
current portion 200,350 199,317 1,033
Non-current income tax reserve 288 1,396 (1,108)
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Total liabilities 554,488 564,201 (9,713)
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Commitments and contingencies - - -
Stockholders' equity: -
Preferred stock - - -
Common stock 189 184 5
Additional paid-in capital 217,330 210,513 6,817
Retained earnings 40,048 19,707 20,341
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Total stockholders' equity 257,567 230,404 27,163
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Total liabilities and
stockholders' equity $812,055 $794,605 $17,450
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Nine Months Ended
9/30/09 9/30/08 Change
------- ------- ------
(unaudited)
Net cash provided by operating activities $69,277 $45,418 $23,859
Net cash used in investing activities (57,918) (127,193) 69,275
Net cash provided by financing activities 5,496 1,080 4,416
Net increase (decrease) in cash and
cash equivalents 16,855 (80,695) 97,550
Cash and cash equivalents, beginning of
period 106,733 226,761 (120,028)
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Cash and cash equivalents, end of period $123,588 $146,066 $(22,478)
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