LONGMONT, Colo. — (BUSINESS WIRE) — August 2, 2011 — DigitalGlobe, Inc. (NYSE: DGI), a leading global provider of commercial high-resolution earth imagery products and services, today reported financial results for the second quarter ended June 30, 2011.
Second quarter 2011 revenue was $81.7 million, up 1% compared with the same period last year. Included in second quarter revenue is $6.4 million of amortized revenue related to NextView, the predecessor to the EnhancedView contract with the U.S. Government. Not included in second quarter revenue is $24.8 million of deferrals related to the service level agreement (SLA) portion of EnhancedView.
The company reported a second quarter 2011 net loss of $0.4 million, or $(0.01) per diluted share, compared with net income of $0.5 million, or $0.01 earnings per diluted share, for the same period last year.
Second quarter 2011 Adjusted EBITDA, a non-GAAP financial measure, was $59.3 million, an increase of 57% compared with second quarter 2010 Adjusted EBITDA of $37.8 million. Adjusted EBITDA includes current-quarter deferrals related to EnhancedView and, for both periods, excludes approximately $6.4 million of amortized revenue related to NextView.
Cash Flow from Operations was $104.6 million for the six months ended June 30, 2011, up 84% compared with Cash Flow from Operations of $56.8 million for the six months ended June 30, 2010.
“During the quarter, we built our backlog, expanded our margins, generated solid cash flow, and made progress positioning the company for stronger revenue growth,” said Jeffrey R. Tarr, President and Chief Executive Officer. “I’m proud of our team and look forward to delivering to our shareowners continued improvement in our financial performance.”
Second Quarter Business Highlights
- Defense and Intelligence segment revenue was $63.1 million, flat compared with second quarter 2010. This excludes $24.8 million of deferrals related to EnhancedView SLA, and includes $6.4 million related to NextView.
- In June, the company passed the Critical Design Review of infrastructure enhancements at its Colorado headquarters under the terms of the EnhancedView contract with the National Geospatial-Intelligence Agency (NGA). On July 25, NGA provided DigitalGlobe with an amendment to the EnhancedView contract exercising year two of the SLA for the period Sept. 1, 2011 though Aug. 31, 2012.
- The company’s Direct Access product line grew 31%, generating $12.6 million in revenue for the quarter.
- Commercial segment revenue was $18.6 million, up 5% compared with second quarter 2010.
- Bloomberg launched a new DigitalGlobe-developed service that gives their clients early insight into inventory levels at the U.S. strategic oil reserve in Cushing, Okla., providing its users with an information edge in the commodities market.
- The company signed a new agreement with PEMEX, the national oil and gas company of Mexico and the fourth largest crude oil producer in the world. The agreement gives PEMEX, a DigitalGlobe customer since 2007, on-demand, cloud-based access to the company’s new Global Basemap service.
- California’s Stanislaus County contracted to use DigitalGlobe’s Precision Aerial Imagery to monitor changes and manage government projects across the Central Valley county’s 1,500 square-mile area.
- Magellan contracted with DigitalGlobe for satellite- and aerial-based imagery to power a new series of worldwide maps used in multiple Magellan handheld GPS units.
- DigitalGlobe Platinum reseller Sovzond signed a new agreement with Roslesinforg, a division of the Federal Forestry Agency of Russia, to use satellite imagery to monitor 1.3 million square kilometers of the country’s forest.
- The company entered into a joint venture with China Siwei Surveying & Mapping Technology Co., Ltd., known as China Siwei, a China state-owned high-tech GIS developer in China, and with Navinfo, China’s leading map and dynamic traffic information services provider. The joint venture entity, known as Siwei Worldview Technology (Beijing) Co., Ltd. will serve as DigitalGlobe’s exclusive channel partner in China to expand our presence in civil government, location-based mapping services, and other enterprises in China.
2011 Outlook
For the full year 2011, the company expects:
- Revenue in a range of $330 million to $355 million. This excludes any deferrals related to EnhancedView and includes amortized revenue related to NextView.
- Diluted earnings per share of $0.10 to $0.20, assuming an average diluted share count of approximately 47 million.
- Adjusted EBITDA of $223 million to $243 million.
- Capital expenditures for 2011 of approximately $275 million.
