GeoEye, Inc. (NASDAQ: GEOY), a leading source of geospatial information and insight, announced today results for its fiscal third quarter ended Sept. 30, 2011.
“While results for the third quarter were below our expectations, our core business continues to be strong,” said Matt O’Connell, GeoEye’s chief executive officer and president. “We renewed our Service Level Agreement with the National Geospatial-Intelligence Agency for another year, booked some significant new production orders and maintained strong margins. We have positioned the Company to resume growth from our government, international and commercial clients in the fourth quarter.”
THIRD QUARTER RESULTS
Total revenues were $85.8 million for the third quarter of 2011, an 0.8 percent decrease from the third quarter of 2010. The net income available to common stockholders for the third quarter of 2011 was $11.7 million, or $0.51 per fully diluted share, compared to a loss of $6.5 million, or ($0.30) per fully diluted share, for the third quarter of 2010. Adjusted net income available to common shareholders (a non-GAAP measurement that excludes the impact of non-operating charges, gains and one-time charges and tax benefits) for the third quarter of 2011 was also $11.7 million, or $0.51 per diluted share, as compared to $13.6 million, or $0.61 per diluted share, in the same period in 2010.
Operating profit was $23.8 million for the third quarter of 2011. Operating margin was 27.7 percent for the third quarter of 2011, compared to 33.7 percent in the third quarter of 2010. Adjusted EBITDA (a non-GAAP measurement defined as net income before interest, taxes, depreciation, amortization, non-cash recognition of stock compensation expense and other items) was approximately $43.7 million for the third quarter of 2011, compared to $47.4 million in the same period in 2010. The Adjusted EBITDA as a percentage of revenues was 50.9 percent for the third quarter of 2011, compared to 54.8 percent in the third quarter of 2010.
The Company ended the third quarter of 2011 with unrestricted cash, cash equivalents and short-term investments of $218.5 million; total assets of approximately $1.3 billion; stockholders’ equity of $488.4 million and long-term debt of $510.3 million.
THIRD QUARTER 2011 OPERATING HIGHLIGHTS
Revenue Mix
Imagery revenues in the third quarter of 2011 were $63.5 million, or 74.0 percent of total revenues. Production and other services revenues were $16.2 million, or 19.0 percent of total revenues. The NextView cost share accounted for revenues of $6.0 million, or 7.0 percent of total revenues.
Geographic Information
Domestic revenues were $63.7 million for the third quarter of 2011, or 74.3 percent of total revenues for the period. International revenues were $22.1 million for the third quarter of 2011, or 25.7 percent of total revenues for the period.
Domestic revenues increased 1.9 percent for the third quarter of 2011, compared to the same period in 2010. International revenues were down 7.8 percent for the third quarter of 2011, compared to the same period in 2010.
GeoEye-2 Capital Investments
During the quarter, the Company invested $62.7 million for the continued development and construction of the GeoEye-2 satellite, including $12.1 million of capitalized interest. To date, the Company has invested $518.1 million in the GeoEye-2 satellite program, including $49.7 million of capitalized interest.
NINE MONTH RESULTS
Total revenues for the nine months ended Sept. 30, 2011, were $259.6 million, a 4.8 percent increase from $247.8 million in the nine months ended Sept. 30, 2010. The Company’s Adjusted EBITDA for the nine-month period ended Sept. 30, 2011, was $131.4 million, a decrease of 1.3 percent from the same period in 2010. The net income available to common stockholders for the nine months ended Sept. 30, 2011, was $32.8 million, or $1.44 per fully diluted share, as compared to net income available to common stockholders of $6.4 million, or $0.29 per fully diluted share, in the same period in 2010.
FISCAL YEAR 2011 FINANCIAL OUTLOOK
For the full year, the Company is revising its previous revenue, Adjusted EBITDA and earnings per share guidance. Our new expectations for 2011 are for revenues to range from $348 million to $355 million, Adjusted EBITDA to range from $176 million to $181 million and earnings per share of $1.95 to $2.15. In the fourth quarter, we anticipate sequential growth and expect revenues to be in the range of $88 million to $95 million.
These estimates represent management’s current expectations about the Company’s future financial performance, based on information available at this time.
