Dulles, Va., May 10 — GeoEye, Inc. (Nasdaq: GEOY), a premier provider of superior satellite and aerial-based geospatial information and services, announced today results for its first quarter ended March 31, 2010.
“This quarter we delivered strong revenue and operating income growth. Our pipeline remains robust, and we are experiencing growth in our commercial business,” said Matt O’Connell, chief executive officer and president. “We have excellent revenue visibility and a solid balance sheet. We also have expanded the services our customers need to turn imagery into business solutions, and we are well positioned to expand our satellite constellation.”
Total revenues were $80.4 million for the first quarter of 2010, a 77.8 percent increase from $45.2 million for the first quarter of 2009. Net income for the first quarter of 2010 was $0.8 million, or $0.04 per fully diluted share, compared to a net loss of $1.7 million, or a loss of $0.09 per share, for the first quarter of 2009.
Net income for the first quarter includes a non-cash charge of $10.5 million related to fair value accounting for the Company’s previously disclosed financing commitment with Cerberus Capital Management L.P. (“Cerberus”) entered into March 4, 2010. There was no tax benefit related to this charge. Excluding this charge, adjusted net income for the first quarter of 2010 was $11.2 million and adjusted EPS was $0.52 per fully diluted share. Additional charges or benefits may be incurred related to the commitment until such time as the commitment is terminated or settled. These charges or benefits will be based on movements in the Company’s stock price and other factors.
First Quarter Highlights
• Revenues related to contracts with the U.S. Government, the Company’s largest customer, were $54.2 million for the first quarter of 2010, representing 67.4 percent of total revenues for the period and an increase of 89.3 percent over the prior year’s first quarter.
• Domestic revenues were $59.8 million for the first quarter of 2010, which were 74.4 percent of total revenues for the period.
• Domestic revenues included $37.1 million from the Company’s Service Level Agreement (SLA) with the National Geospatial-Intelligence Agency (NGA).
• International revenues were $20.6 million for the first quarter of 2010, which accounted for 25.6 percent of total revenues for the period.
• Operating income for the first quarter of 2010 was $26.5 million.
• Operating margin was 33.0 percent for the first quarter of 2010 compared to 3.8 percent in the same period in 2009.
• Adjusted EBITDA, a non-GAAP measurement defined as net income (loss) before interest, taxes, depreciation, amortization, non-cash stock-based compensation expense and other items, increased $32.9 million to $43.5 million for the first quarter of 2010, from $10.6 million in the same period in 2009.
• Adjusted EBITDA margin was 54.1 percent for the first quarter of 2010 compared to 23.5 percent for the same period in 2009.
• The Company ended the first quarter of 2010 with cash and cash equivalents of $227.5 million, restricted cash of $64.4 million, current income tax receivable of $33.4 million, total assets of $992.6 million, long-term debt of $381.2 million and stockholders’ equity of $300.5 million.
Fiscal Year 2010 Financial Outlook
GeoEye currently expects fiscal 2010 revenue to range from $310 million to $320 million, with adjusted EBITDA in the range of $150 million to $160 million. These estimates represent management’s current expectations about the Company’s future financial performance, based on information available at this time.
About GeoEye
GeoEye, Inc. is an 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 532 employees, as of March 31, 2010, 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 (http://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 the Company expects or anticipates 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 the Company’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements and those presented elsewhere by the Company’s 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 the Company’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2009, which was filed with the Securities and Exchange Commission ("SEC") on March 12, 2010, and the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2010, which is expected to be filed with the SEC on May 10, 2010. 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.