GeoEye Reports Strong First Quarter 2010 Results

07 May 2010, 4:14pm

DULLES, Va., May 10 /PRNewswire-FirstCall/ -- 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. 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.

CONFERENCE CALL INFORMATION

GeoEye, Inc. will host a conference call for investors and analysts to discuss financial results for the first quarter ended March 31, 2010.

When: May 10, 2010, at 8:30 a.m. Eastern Daylight Time

To Participate: Â Callers wishing to participate in 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 70442926.

Participants are encouraged to listen via webcast, which will be broadcast live at the link below, under the Investor Relations section of the Company's corporate Web site.

GeoEye

Access a live webcast

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