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DigitalGlobe Reports Fourth Quarter and Full Year 2012 Results

Tuesday, February 26th 2013
DigitalGlobe | Longmont, CO

 

Revenue Up 28%
Next Twelve-Month Revenue Backlog Up 37%
EPS of 36 Cents Up From Year-Ago Loss

LONGMONT, CO -- 02/26/13 -- DigitalGlobe, Inc. (NYSE: DGI), a leading global provider of high-resolution earth imagery solutions, today reported financial results for the fourth quarter and full year ended December 31, 2012.

 

Fourth quarter 2012 revenue was $125.4 million, a 28% increase compared with the same period last year. Net income for the fourth quarter was $17.1 million, or $0.36 per diluted share, compared with a net loss of $27.0 million or $(0.58) per diluted share in fourth quarter 2011. Fourth quarter 2012 EBITDA was $57.6 million, driving an EBITDA margin of 45.9%. Fourth quarter 2012 EBITDA margin expanded year-over-year despite incurring $10.2 million in one-time expenses related to the combination with GeoEye, which negatively impacted fourth quarter 2012 EBITDA margin by approximately 810 basis points.

Full year 2012 revenue was $421.4 million, a 24% increase compared with 2011. The company reported net income of $39.0 million, or $0.84 per share, compared with a net loss of $28.1 million, or $(0.61) per share in 2011. Note that reported fourth quarter and full-year 2012 results reflect fully diluted share counts of 47.0 million and 46.4 million, respectively. Full-year EBITDA was $189.6 million, yielding an EBITDA margin of 45.0% compared with a full-year 2011 EBITDA margin of 27.3%, or 42.6% not including the impact of a $51.8 millionpre-tax loss related to the early extinguishment of debt. Full-year 2012 EBITDA margin expanded year over year in spite of incurring $19.9 million in one-time expenses related to the combination with GeoEye, which negatively impacted full-year 2012 EBITDA margin by approximately 470 basis points.

The company closed its combination with GeoEye on Jan. 31, 2013. According to the terms of the transaction, GeoEye common stockholders received approximately 26.0 million shares of DigitalGlobe common stock and cash consideration of approximately $93.8 millionDigitalGlobe common shares outstanding as of February 21, 2013 total approximately 73.7 million.

"This was an extraordinary year and quarter for DigitalGlobe," said Jeffrey R. Tarr, President and Chief Executive Officer. "We drove strong, profitable double-digit revenue growth across all customer categories, generated positive free cash flow, and grew our next 12-month revenue backlog by 37 percent. We also entered into a transformational agreement to combine with GeoEye. As a result of this combination, we are a more diversified, less capital intensive geospatial information business with a more complete set of capabilities to serve customers and fuel our growth."

Recent Business Highlights

  • Fourth quarter 2012 Defense & Intelligence segment revenue grew 29% to $90.3 million compared with fourth quarter 2011. Performance was driven by increased revenue related to the service level agreement (SLA) portion of the EnhancedView contract with the National Geospatial-Intelligence Agency (NGA), and growth in value-added services of 64% to $12.3 million.
  • Commercial segment revenue grew 27% to $35.1 million in the quarter compared with fourth quarter 2011. Growth continues to be strong among International Civil Governments, providers of Location-based Services and Other Industry Verticals.
  • The company continued to expand its footprint among International Civil Government customers, growing revenue from this customer group at double-digit rates driven primarily by new, renewed and upsized agreements with key customers in emerging growth markets.
  • Effective January 1, 2013, the company signed an existing Location-Based Services customer to a new, larger, multi-year agreement through delivery of its Global Basemap product that takes advantage of the company's ImageLibrary, which contains more than 2.8 billion square kilometers, equivalent to 24 times the earth's landmass.
  • Among customers in Other Industry Verticals, the company signed a new agreement with a leading global provider of information services, building on DigitalGlobe's monitoring and analysis capabilities for extractive industries such as mining and oil & gas. DigitalGlobe also expanded its relationship with a large humanitarian relief organization to provide FirstLook monitoring services and imagery for monitoring humanitarian crises and human rights violations.
  • The company's next 12-month backlog increased to $419.5 million, up 37% year over year, driven by continued growth across the customer base and demonstrating the company's continued success in building improved revenue visibility from recurring customer relationships.

2013 Outlook
For 2013, the company expects to report revenue in a range of $635 million to $660 million, which includes the revenue contribution from GeoEye beginning on February 1, 2013. This 2013 revenue outlook is compared with 2012 pro forma revenue of approximately $600 million for the combined company, which included a full 12-month contribution from GeoEye in 2012. Not included in this pro forma calculation is revenue that GeoEye reported in 2012 related to its EnhancedView SLA with the NGA, including the non-cash amortization for payments received in connection with its NextView contract with the NGA. The company expects to achieve a full-year EBITDA margin of approximately 36%, not including the impact of approximately $90 million of combination-related expenses to integrate with GeoEye. The company also expects 2013 capital expenditures of approximately $230 million, including spending to complete, but not launch, the GeoEye-2 satellite in 2013, continued work on the WorldView-3 satellite, and maintenance.

Conference Call Information
DigitalGlobe's
 management will host a conference call today, February 26, 2013 at 5 p.m. ET to discuss its 2012 fourth quarter and full-year financial and operating results.

The conference call dial-in numbers are as follows: 
U.S./Canada dial-in: (866) 863-0053
International dial-in: (706) 758-7563
Passcode: 97601226

A replay of the call will be available through March 27, 2013 at the following numbers:
U.S./Canada dial-in: (855) 859-2056
International dial-in: (404) 537-3406
Passcode: 97601226

DigitalGlobe will also sponsor a live and archived webcast of the conference call on the Investor Relations portion of its website. Click here to directly access the live webcast.

Supplemental earnings materials are available on the Investor Relations section of the company's website atwww.digitalglobe.com.

About DigitalGlobe
DigitalGlobe
 is a leading provider of commercial high-resolution earth observation and advanced geospatial solutions that help decision makers better understand our changing planet in order to save lives, resources and time. Sourced from the world's leading constellation, our imagery solutions deliver unmatched coverage and capacity to meet our customers' most demanding mission requirements. Each day customers in defense and intelligence, public safety, civil agencies, map making and analysis, environmental monitoring, oil and gas exploration, infrastructure management, navigation technology, and providers of location-based services depend on DigitalGlobe data, information, technology and expertise to gain actionable insight.

In January 2013DigitalGlobe and GeoEye combined to become one DigitalGlobe, creating a company capable of providing greater value to customers through an integrated constellation and a broader set of products and services. For more information on the combination and its benefits, visit www.digitalglobe.com/combination.

DigitalGlobe is a registered trademark of DigitalGlobe.

Revenue Up 28%
Next Twelve-Month Revenue Backlog Up 37%
EPS of 36 Cents Up From Year-Ago Loss
 
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