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GeoEye Reports Record Revenues for Second Quarter 2010
Aug 09, 2010 (04:08 PM EDT)
Wins Contract Under National Geospatial-Intelligence Agency EnhancedView Program
-- Conference Call Scheduled for 8:30 a.m. EDT, Tuesday, August 10, 2010 --
DULLES, Va., Aug. 9 /PRNewswire-FirstCall/ -- GeoEye, Inc. (Nasdaq: GEOY), a premier provider of satellite, aerial and geospatial information, announced today record revenue results for its second quarter ended June 30, 2010.
"For the second quarter, we delivered record setting revenues and 11 percent year-over-year revenue growth. Operating margins and adjusted EBITDA margins have continued to be strong as well. Our pipeline of work with the U.S. Government and commercial customers remains robust, we are encouraged by our growth, and we continue to have excellent revenue visibility," said Matt O'Connell, chief executive officer and president. "The recent award we received from the National Geospatial-Intelligence Agency (NGA) under the EnhancedView program increases that visibility – we now have a sustaining relationship with the NGA for the next 10 years. We are focused on expanding our satellite constellation over the next few years by putting GeoEye-2 into service in 2013. We look forward to providing the NGA continued access to Earth imagery with unprecedented resolution and accuracy that delivers geospatial insight – anytime, anywhere. The additional capacity GeoEye-2 can provide will also benefit our commercial customers in the U.S. and overseas. We are also excited by the customer response to our innovative new Web services platform, EyeQ™, which allows our customers to turn imagery into business solutions."
SECOND QUARTER RESULTS
Total revenues were $81.0 million for the second quarter of 2010, an 11.4 percent increase from $72.7 million for the second quarter of 2009. Net income for the second quarter of 2010 was $12.1 million, or $0.55 per fully diluted share, compared to net income of $9.6 million, or $0.46 per fully diluted share, for the second quarter of 2009.
Net income for the second quarter of 2010 includes a non-cash credit of $2.1 million related to fair value accounting for the Company's financing commitment with Cerberus Capital Management L.P. ("Cerberus"). This credit reduced the charge taken in the first quarter. There is no income tax charge or benefit related to this credit. Excluding this credit, net income for the second quarter of 2010 was $10.1 million, or $0.46 per fully diluted share.
Revenues related to contracts with the U.S. Government, the Company's largest customer, were $55.5 million for the second quarter of 2010, representing 68.5 percent of total revenues for the period. Domestic revenues were $62.1 million for the second quarter of 2010, which were 76.7 percent of total revenues for the period. These revenues included $37.5 million from our Service Level Agreement (SLA) with the National Geospatial-Intelligence Agency (NGA). International revenues were $18.9 million for the second quarter of 2010, which were 23.3 percent of total revenues for the period.
Operating income for the second quarter of 2010 was $24.3 million or 30.0 percent of revenues. Adjusted EBITDA, a non-GAAP measure that represents net income before net interest income or expense, income tax expense (benefit), depreciation and amortization expenses, non-cash stock-based compensation expense and other items, increased approximately $2 million to $42.3 million for the second quarter of 2010, from $40.4 million for the same period in 2009. Adjusted EBITDA margin was 52.3 percent for the second quarter of 2010.
The Company ended the second quarter of 2010 with cash and cash equivalents of $184.8 million, restricted cash of $63.4 million, current income tax receivable of $27.2 million, total assets of $972.3 million, long-term debt of $381.8 million and stockholders' equity of $314.7 million.
FISCAL YEAR 2010 FINANCIAL OUTLOOK
GeoEye has revised its guidance upwards and now expects fiscal 2010 revenue to range from $320 million to $330 million, with adjusted EBITDA in the range of $160 million to $170 million. These estimates represent management's current expectations about the Company's future financial performance, based on information available at this time.
CONFERENCE CALL INFORMATION
GeoEye, Inc. (NASDAQ: GEOY) will host a conference call for investors and analysts to discuss financial results for the second quarter ended June 30, 2010.
When: Aug. 10, 2010, at 8:30 a.m. Eastern Daylight Time
To Participate: Callers wishing to participate on the conference call may dial 1-631-291-4808 at least 10 minutes prior to the start time. Domestic callers who wish to listen may dial toll-free at 1-877-776-4039. The conference ID number is 86302699. Questions will be accepted from phone participants during the live call after prepared remarks and as time permits.
Participants are encouraged to listen via webcast, which will be broadcast live at www.geoeye.com, under the Investor Relations section of the Company's corporate Web site. To directly access the live webcast, go to: http://www.geoeye.com/CorpSite/corporate/investor-relations/Default.aspx and click on the "Aug. 10, 2010, Investor Update Webcast" link. Please allow 15 minutes before the scheduled start time to register, download and install any necessary audio software.
Replay: A replay of the teleconference will be available starting at 10:30 a.m. EDT, Aug. 10, 2010, and will run until midnight EDT on Tuesday, Aug. 17. To access the replay, please dial (800) 642-1687. The conference ID number for the replay is 86302699.
Selected financial results for the Company are as follows (dollars in thousands, except earnings per share):
GeoEye, Inc. is a leading international information services company serving government and commercial markets. The Company is recognized as one of the geospatial industry's imagery experts, delivering exceptional quality imagery products, services and solutions to customers around the world. Headquartered in Dulles, Virginia, the Company has over 500 employees dedicated to developing best-in-class geospatial information products and services. GeoEye is a public company listed on the NASDAQ stock exchange under the symbol GEOY. The Company provides support to academic institutions and non-governmental organizations through the GeoEye Foundation (www.geoeyefoundation.org). Additional information about GeoEye is available at www.geoeye.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Without limitation, the words "anticipates," "believes," "estimates," "expects," "intends," "plans," "will" and similar expressions are intended to identify forward-looking statements. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future, including statements relating to growth, expected levels of expenditures and statements expressing general optimism about future operating results, are forward-looking statements. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements and those presented elsewhere by our management from time to time are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. These risks and uncertainties include, but are not limited to, those described in "Risk Factors" included in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2009, which we filed with the Securities and Exchange Commission ("SEC") on March 12, 2010, and our Quarterly Reports on Form 10-Q for the period ended March 31, 2010, and June 30, 2010, which we filed with the SEC on May 10, 2010 and August 9, 2010 respectively. Copies of all SEC filings may be obtained from the SEC's EDGAR web site, http://www.sec.gov/, or by contacting: William L. Warren, Senior Vice President, General Counsel and Secretary, at 703-480-5672.
SOURCE GeoEye, Inc.