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) | |||||||
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| |
|
|
| Three Months Ended December 31, |
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| |||
|
|
| 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) | ||
|
|
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|
| |
| Earnings per share |
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|
|
|
| ||
|
| 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 | ||
|
|
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| |
| 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) | ||||||
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|
| |
|
| December 31, |
| December 31, |
|
| |
|
| 2011 |
| 2010 |
| Change | |
|
| (unaudited) |
|
|
|
| |
| ASSETS | ||||||
| Current assets: |
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|
|
|
| |
| 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 | |
|
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| |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: |
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|
|
|
| |
| 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) | ||||||
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|
| |
|
| 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) | ||||||||
|
|
|
|
|
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|
|
| |
|
| 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 | |
|
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| |
| 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 | |
|
|
|
|
|
|
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|
| |
| 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. | ||||||||
