Revenue Increases 23% EBITDA Margin Expands by 700 Basis Points EPS of 21 Cents Versus Year-Ago Loss Company Raises 2012 Revenue Growth Outlook
LONGMONT, CO, Jul 31, 2012 - DigitalGlobe, Inc., a leading global provider of high-resolution earth imagery solutions, today reported financial results for the second quarter ended June 30, 2012.
Second quarter 2012 revenue was $101.8 million, up 23% compared with the same period last year. Net income in the second quarter was $9.6 million, or $0.21 per share, compared with a net loss of $(0.9) million, or $(0.02) per share in second quarter 2011. Second quarter 2012 EBITDA was $47.9 million, delivering an EBITDA margin of 47%, up more than 700 basis points year over year compared with the second quarter 2011 EBITDA margin of 39.9%. This margin expansion occurred despite incurring $2.0 million of non-recurring costs in connection with the recently announced combination with GeoEye.
"Our team delivered an outstanding second quarter," said Jeffrey R. Tarr, President and Chief Executive Officer. "We grew revenue at a strong double-digit rate, expanded margins and raised our guidance. We are excited about our planned business combination with GeoEye and are on track to close the transaction in late 2012 or early 2013. Across the board, we are successfully transforming DigitalGlobe into a high-growth, recurring-revenue geospatial information business."
Second Quarter Business Highlights
-- Defense & Intelligence segment revenue grew 27% to $81.4 million compared with the second quarter of 2011. Performance was driven by increased revenue related to the service level agreement (SLA) portion of EnhancedView and year-over-year growth of $5.5 million from value-added services. -- Commercial segment revenue grew 10% to $20.4 million in the quarter compared with the prior-year period. Growth was driven primarily by international civil government customers in China and Russia, as well as a full quarter contribution from a large, well-known location-based services customer. -- The company's 12-month backlog increased to $355.3 million, up 32% year over year, indicative of both broad-based growth and of the company's success in shifting its revenue mix to a more visible recurring model. -- The company completed, on time, an extensive number of infrastructure upgrades to increase the integration of its infrastructure with the U.S. government to deliver more value for the taxpayer under the EnhancedView contract. -- International Civil Government growth was enhanced with recently signed agreements with Hunan Land Resources, through its partnership with China Siwei, and in Russia with an expanded relationship with the Federal Forestry Agency, through its partnership with Sovzond. -- Enhancing growth prospects among customers who provide Location Based Services, the company announced an upsized and expanded relationship with Garmin. -- Building momentum in the Financial Services vertical, in July, the company announced that Genscape, a pioneer in sophisticated and patented monitoring systems, has signed an agreement to incorporate DigitalGlobe imagery and analysis into their Energy Commodities reporting services worldwide. -- On July 25, the company announced a new multi-year, multi-million dollar agreement with Esri, a leading provider of GIS software, for delivery of its Global Basemap product.
2012 Outlook For the full year, the company now expects to report GAAP revenue growth of approximately 16% compared with 2011, an increase from its previous expectation of approximately 14% growth. Including the impact of certain non-recurring expenses related to its planned business combination with GeoEye, the company expects to achieve a full-year EBITDA margin of approximately 46% and to incur capital expenditures of approximately $200 million. Both expectations for EBITDA margin and total capital expenditures are unchanged from prior expectations.
"Our ability to raise revenue guidance for the year while maintaining our EBITDA margin despite incurring significant costs related to our combination with GeoEye is a testament to the strength of our model," said Yancey Spruill, Chief Financial Officer.
Supplemental earnings materials are available on the company's website at www.digitalglobe.com .
DigitalGlobe 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 and intelligence, civil agencies, 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 one billion 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. For more information, visit www.digitalglobe.com .
DigitalGlobe is a registered trademark of DigitalGlobe, Inc.