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|DigitalGlobe Reports Fourth Quarter and Full Year 2009 Financial Results|
LONGMONT, Colo., Feb 24, 2010 (BUSINESS WIRE) -- DigitalGlobe (NYSE:DGI), a leading global provider of commercial high-resolution earth imagery products and services, today reported financial results for the fourth quarter and year ended December 31, 2009.
Fourth quarter 2009 revenue was $72.9 million, an increase of 1.0% compared to the same period last year. Fourth quarter net income was $13.8 million or $0.30 per diluted share as compared to net income of $13.8 million or $0.31 per diluted share for the fourth quarter 2008. Fourth quarter 2009 Adjusted EBITDA, a non-GAAP financial measure, was $42.7 million, compared to fourth quarter 2008 Adjusted EBITDA of $43.7 million.
For 2009, the company reported record revenue of $281.9 million, an increase of 2.4% compared to 2008. Net income for 2009 was $47.4 million or $1.06 per diluted share as compared to net income of $53.8 million or $1.22 per diluted share for 2008. Adjusted EBITDA for 2009 was $169.4 million compared to 2008 Adjusted EBITDA of $174.8 million. The definition of Adjusted EBITDA and reconciliation to net income are set forth in this press release.
"I am very pleased with DigitalGlobe's performance in the fourth quarter. Not only did we deliver record revenue, but we also executed on a number of key milestones, concluding an extraordinary year," said Jill Smith, Chairman, and Chief Executive Officer. "We delivered growth in all our target business segments, and continued to add significant new capabilities, including WorldView-2, with its unique 8-band imagery and tremendous collection capacity, and expansion of our web services and cloud computing offering. We are confident that the superior collection capability of our constellation and ability to deliver geointelligence to customers with the speed and accuracy that they demand is strengthening DigitalGlobe's position as the industry leader."
Ms. Smith continued, "We enter 2010 with strong momentum in all our key markets. We look forward to expanding our relationship with NGA under the EnhancedView contract, expected to be awarded later this year, and to strengthening our international defense and intelligence sector as operations are initiated with our Direct Access Program customers over the course of the year. This, together with promising opportunities in the commercial sector, further increases our optimism about DigitalGlobe's growth outlook."
Full Year 2010 Outlook
Conference Call Information
DigitalGlobe's management will host a conference call today at 5:00p.m. ET/ 3:00p.m. MT to discuss its fourth quarter 2009 financial results and 2010 financial outlook.
The conference call dial-in numbers are as follows:
A replay of the call can be accessed by phone at the following number for 30 days following the call:
US/Canada dial-in: 800.642.1687
DigitalGlobe will also sponsor a live and archived webcast of the conference call on its website, http://www.digitalglobe.com.
Longmont, Colorado-based DigitalGlobe (http://www.digitalglobe.com) is a leading global provider of commercial high-resolution earth imagery products and services. Sourced from our own advanced satellite constellation, our imagery solutions support a wide variety of uses within defense, intelligence, and homeland security applications, mapping and analysis, environmental monitoring, oil and gas exploration, infrastructure management, internet portals and navigation technology.
With our collection sources and comprehensive ImageLibrary (containing more than 900 million square kilometers of earth imagery and imagery products) we offer a range of on- and off-line products and services designed to enable customers to easily access and integrate our imagery into their business operations and applications.
DigitalGlobe is a registered trademark of DigitalGlobe.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This presentation and other of our reports, filings, and public announcements may contain or incorporate forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements relate to future events or our future financial performance. We generally identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar words, although not all forward-looking statements contain these words.
Any forward-looking statements are based upon our historical performance and on our current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions. A number of important factors could cause our actual results or performance to differ materially from those indicated by such forward looking statements, including: the loss or reduction of any of our primary contracts; the loss or impairment of our satellites; loss or damage to the content contained in our ImageLibrary; interruption or failure of our ground system and other infrastructure, decrease in demand for our imagery products and services; increased competition that may reduce our market share or cause us to lower our prices; our failure to obtain or maintain required regulatory approvals and licenses; changes in U.S. foreign law or regulation that may limit our ability to distribute our imagery products and services; the costs associated with being a public company; and other important factors, all as described more fully in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on any of these forward looking statements.
Non-GAAP Financial Measures
Adjusted EBITDA is a key measure used in internal operating reports by management and the board of directors to evaluate the performance of our operations and is also used by analysts, investment banks and lenders for the same purpose. Adjusted EBITDA is a measure of our current period operating performance, excluding charges for capital, depreciation related to prior period capital expenditures and items which are considered non-core or non-recurring in nature.
We believe that the elimination of certain non-cash, non-operating or non-recurring items enables a more consistent measurement of period to period performance of our operations, as well as a comparison of our operating performance to companies in our industry. We believe this measure is particularly important in a capital intensive industry such as ours, in which our current period depreciation is not a good indication of our current or future period capital expenditures. The cost to construct and launch a satellite and build the related ground infrastructure may vary greatly from one satellite to another, depending on the satellite's size, type and capabilities. For example, our QuickBird satellite, which we are currently depreciating, cost significantly less than our WorldView-1 or WorldView-2 satellites. Current depreciation expense is not indicative of the revenue generating potential of the satellites.
Adjusted EBITDA excludes interest income, expense, net income taxes and loss from early extinguishment of debt because these items are associated with our capitalization and tax structures. Adjusted EBITDA excludes depreciation and amortization expense because these non-cash expenses reflect the impact of prior capital expenditure decisions which are not indicative of future capital expenditure requirements. Adjusted EBITDA excludes non-cash stock compensation expense because these are non-cash expenses and loss on derivative instrument because these items are not related to our primary operations.
We use Adjusted EBITDA in conjunction with traditional GAAP operating performance measures as part of our overall assessment of our performance and we do not place undue reliance on this measure as our only measure of operating performance. Adjusted EBITDA should not be considered a substitute for other measures of financial performance reported in accordance with GAAP.
FINANCIAL TABLES TO FOLLOW