DigitalGlobe Reports First Quarter 2014 Results

LONGMONT, CO -- (Marketwired) -- May 01, 2014 -- DigitalGlobe, Inc. (NYSE: DGI), a leading global provider of commercial high-resolution earth observation and advanced geospatial solutions, today reported financial results for the quarter ended March 31, 2014.

First quarter 2014 revenue was $156.5 million, a 23% increase compared with the same period last year. Net income for the first quarter was $0.4 million, with net loss available to common shareholders of $(0.6) million, or a loss of $(0.01) per diluted share. In the first quarter 2013, the company reported a net loss of $(60.6) million, with a net loss available to common shareholders of $(61.2), or a loss of $(0.96) per diluted shares.

First quarter Adjusted EBITDA was $67.9 million with an Adjusted EBITDA margin of 43%. This compares with Adjusted EBITDA of $35.9 million in first quarter 2013, with an associated margin of 28%. Adjusted EBITDA excludes the impact of restructuring, integration and other costs.

First quarter 2013 results exclude GeoEye financial results for the month of January as a result of timing of the close of the acquisition.

"We delivered a good start to 2014," said Jeffrey R. Tarr, CEO. "We drove double-digit top-line growth and strong EBITDA margin expansion primarily from our U.S. and international government businesses and continued success with our integration efforts. We also made progress on a number of important growth initiatives that will extend our industry leadership in resolution, accuracy and revisit, and add unique capabilities that we believe will drive sustained growth toward the end of this year, in 2015 and beyond. In the quarter, we also scaled our Tomnod crowdsourcing platform -- enabling more than 8 million volunteers to aid government customers in the search for Malaysia Airlines Flight MH370."

Recent Business Highlights

  • First quarter 2014 revenue from the U. S. Government grew 26% to $97.6 million compared with first quarter 2013, including a 141% increase in value-added services to $34.4 million, driven by continued growth in the Global Enhanced GEOINT Delivery (G-EGD) program.
  • Diversified Commercial revenue grew 18% to $58.9 million in the quarter compared with first quarter 2013. Growth was driven primarily by Direct Access Program (DAP) revenue of $26.5 million in the quarter, up 47% year over year.
  • This quarter's revenue results include the activation of one new DAP customer in the Middle East.
  • Within its location based services base of customers, the company signed a multi-year agreement to provide archived imagery for applications harnessing OpenStreetMap, a collaborative open source mapping project.
  • Within oil & gas, recently acquired Spatial Energy contributed to first quarter growth and renewed 100% of its on-line subscriptions in the quarter. It also signed new on-shore and off-shore monitoring programs with both new and existing accounts. Among mining customers, the company agreed to provide tasked images for mine monitoring in Peru for a major multi-national mining company.
  • Among non-governmental organizations, the company signed a new multi-year agreement with a global development foundation to provide geospatial imagery and analytics to help prove the efficacy of remote sensing in monitoring the nature and condition of smallholder farms, with an initial focus in Sub-Saharan Africa and Southeast Asia.
  • Among international civil governments, the company received two awards in India to provide tasked images for change detection and feature extraction of forest resources and cadastral mapping.
  • The company remains on track with construction of its WorldView-3 satellite in preparation for an expected mid-August launch.

2014 Outlook
For 2014, the company continues to expect to report revenue in a range of $630 million to $660 million. The company expects to achieve a full-year Adjusted EBITDA margin of approximately 43% with a fourth quarter 2014 Adjusted EBITDA margin of at least 50%. The company also expects 2014 capital expenditures of approximately $170 million, including spending to complete and launch the WorldView-3 satellite, and to complete, but not launch, the GeoEye-2 satellite.

Conference Call Information
DigitalGlobe's management will host a conference call today, May 1, 2014 at 5 p.m. ET to discuss its 2014 first quarter 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
Passcode: 32166574

A replay of the call will be available through May 30, 2014 at the following numbers:
U.S./Canada dial-in: (855) 859-2056
International dial-in: (404) 537-3406
Passcode: 32166574

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

About DigitalGlobe
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.

DigitalGlobe is a registered trademark of DigitalGlobe.


Certain statements contained herein and in other of our reports, filings, and public announcements may contain or incorporate forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements relate to future events or future financial performance. We generally identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "continue" or "looks forward to" or the negative of these terms or other similar words, although not all forward-looking statements contain these words.

Any forward-looking statements are based upon our historical performance and on our current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions. A number of important factors could cause our actual results or performance to differ materially from those indicated by such forward looking statements, including: the loss, reduction or change in terms of any of our primary contracts or decisions by customers not to exercise renewal options; the availability of government funding for our products and services both domestically and internationally; changes in government and customer priorities and requirements (including cost-cutting initiatives, the potential deferral of awards, terminations or reduction of expenditures to respond to the priorities of Congress and the administration, or budgetary cuts resulting from Congressional committee recommendations or automatic sequestration under the Budget Control Act of 2011); the risk that U.S. government sanctions against specified companies and individuals in Russia may limit our ability to conduct business with potential or existing customers; the risk that the anticipated benefits and synergies from the strategic combination of the company and GeoEye, Inc. cannot be fully realized or may take longer to realize than expected; the outcome of pending or threatened litigation; the loss or impairment of any of our satellites; delays in the construction and launch of any of our satellites or our ability to achieve and maintain full operational capacity of all our satellites; delays in implementation of planned ground system and infrastructure enhancements; loss or damage to the content contained in our imagery archives; interruption or failure of our ground system and other infrastructure, decrease in demand for our imagery products and services; increased competition, including possibly from companies with substantial financial and other resources and services, that may reduce our market share or cause us to lower our prices; our inability to fully integrate acquisitions or to achieve planned synergies; changes in satellite imaging technology; our failure to obtain or maintain required regulatory approvals and licenses; changes in U.S. or foreign law or regulation that may limit our ability to distribute our imagery products and services; the costs associated with being a public company; and other important factors, all as described more fully in our filings with the Securities and Exchange Commission ("SEC"), including our Annual Report on Form 10 K.

We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on any of these forward looking statements.

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