Posted: Thursday, February 26, 2015
DigitalGlobe, Inc. (NYSE: DGI), a leading global provider of commercial high-resolution earth observation and advanced geospatial solutions, today reported financial results for the full year and quarter ended December 31, 2014.
Fourth Quarter Financial Summary:
- Revenue increased 9.4% to $185.7 million.
- Net income was $12.2 million.
- Net income available to common shareholders was $10.7 million, or $0.14 per diluted share.
- U.S. Government revenue increased 17.8% to $114.4 million.
- Diversified Commercial revenue decreased (1.8)% to $71.3 million, due to a $5.8 million year over year decline in Russia.
- EBITDA was $92.9 million, yielding a margin of 50.0%.
- Free cash flow was $49.5 million, yielding a free cash flow margin of 26.7%.
Full Year Financial Summary:
- Revenue increased 6.8% to $654.6 million.
- Net income was $18.5 million.
- Net income available to common shareholders was $13.9 million, or $0.18 per diluted share.
- U.S. Government revenue increased 10.4% to $395.3 million.
- Diversified Commercial revenue increased 1.8% year over year to $259.3 million.
- EBITDA was $271.0 million, yielding a margin of 41.4%.
- Adjusted EBITDA was $286.2 million, yielding a margin of 43.7%.
Recent Operational Highlights:
- The company began recognizing revenue from the EnhancedView Service Level Agreement at an increased annualized rate of $337.1 million, or $84.3 million per quarter, effective October 1 as a result of the successful launch and commissioning of WorldView-3.
- In December, DigitalGlobe extended the useful lives of its WorldView-1 and WorldView-2 satellites by 24% and 18%, respectively, to 13 years for each.
- In January, DigitalGlobe announced that Gary W. Ferrera will become the company’s Executive Vice President and Chief Financial Officer on March 2, 2015.
- In December, the company increased its share repurchase authorization from $75 million to $205 million. In the fourth quarter, the company repurchased 2,230,879 shares of its stock for $60.1 million at an average price of $26.92. For the full year, the company repurchased 2,726,749 shares of its stock for $75.1 million at an average price of $27.53.
“2014 was a milestone year for DigitalGlobe, as we marked our transition from a period of investment in building the world’s leading earth observation capability to a new era of growth, margin expansion, free cash flow and improving returns,” said Jeffrey R. Tarr, CEO of DigitalGlobe. “In 2015, we will accelerate growth through increased capacity and new product offerings that leverage our data, analytics and unique geospatial information capabilities. We will also remain keenly focused on driving operating efficiencies in order to both invest in growth and return capital to shareowners.”
- Revenue in a range of $725 million to $750 million.
- Adjusted EBITDA in a range of $355 million to $375 million.
- Capital expenditures of approximately $110 million.
Conference Call Information:
DigitalGlobe’s management will host a conference call today, February 26, 2015 at 5 p.m. ET to discuss its 2014 fourth quarter and full year financial and operating results.
The conference call dial-in numbers are as follows:
U.S./Canada dial-in: (855) 212-2368
International dial-in: (315) 625-6886
A replay of the call will be available through March 25, 2015 at the following numbers:
U.S./Canada dial-in: (855) 859-2056
International dial-in: (404) 537-3406
DigitalGlobe will also sponsor a live and archived webcast of the conference call on the Investor Relations portion of its website. Click here to directly access the live webcast.
Supplemental earnings materials, including conference call slides and management scripts, are available on the Investor Relations section of the company’s website at www.digitalglobe.com.
DigitalGlobe is a leading provider of commercial high-resolution earth observation and advanced geospatial solutions that help decision makers better understand our changing planet in order to save lives, resources and time. Sourced from the world's leading constellation, our imagery solutions deliver unmatched coverage and capacity to meet our customers' most demanding mission requirements. Each day customers in defense and intelligence, public safety, civil agencies, map making and analysis, environmental monitoring, oil and gas exploration, infrastructure management, navigation technology, and providers of location-based services depend on DigitalGlobe data, information, technology and expertise to gain actionable insight.
- Full financial details available here.
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