Net cash flows from operations up 47% to $330 million~ ~Exceeds Revised 2015 Guidance Range and Provides 2016 Outlook
WESTMINSTER, Colo.–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 fourth quarter ended December 31, 2015.
“We are also encouraged by the performance of our International Defense and Intelligence business, highlighted by strong growth in the quarter, unprecedented early demand for WorldView-4, and our expanded partnership with KACST, a long time direct access customer.”
Full Year Financial Summary:
- Revenue increased 7.3% year over year to $702.4 million.
- Adjusted EBITDA grew 24.3% year over year to $355.7 million.
- Adjusted EBITDA margin expanded 692 bps to 50.6%.
- Net income was $23.3 million.
- Net income available to common shareholders was $18.5 million, or $0.26 per diluted share.
- Net cash flows from operations increased 46.6% year over year to $329.7 million.
- Free cash flow was $159.8 million.
Fourth Quarter Financial Summary:
- Revenue declined 2.2% year over year to $181.7 million.
- Adjusted EBITDA grew 10.2% year over year to $102.4 million.
- Adjusted EBITDA margin expanded 633 bps to 56.4%.
- Net income was $10.6 million.
- Net income available to common shareholders was $9.2 million, or $0.13 per diluted share.
- Net cash flows from operations increased 20.8% year over year to $92.2 million.
- Free cash flow was $28.6 million.
Recent Highlights:
- Announced an agreement with KACST, a long-time direct access customer in Saudi Arabia, and their affiliate, TAQNIA Space, to develop and launch six or more sub-meter small satellites. KACST and TAQNIA will fully fund and build the satellites and DigitalGlobe will provide its industry leading ground infrastructure, operations expertise, production capabilities, and worldwide sales and distribution capabilities.
- Announced several early contractual agreements and letters of intent for direct access capacity from international defense and intelligence customers for WorldView-4, scheduled for launch in September 2016.
- Amended credit agreement to allow additional flexibility on timing of share repurchase program and to increase the threshold for certain mandatory debt repayments.
- Repurchased 2,660,202 shares of common stock in the fourth quarter for $44.0 million at an average price of $16.54 per share and repurchased a total of $219.6 million of its common stock through December 31, 2015.
- Repurchased another $44.1 million, or 3,105,912 shares, at an average price of $14.20 since the end of the fourth quarter, and have approximately $71.6 million remaining on our $335.0 million share repurchase authorization.
“We are pleased to report solid Adjusted EBITDA margin expansion and strong free cash flow growth resulting from our continued focus on operational excellence,” said Jeffrey R. Tarr, DigitalGlobe CEO. “We are also encouraged by the performance of our International Defense and Intelligence business, highlighted by strong growth in the quarter, unprecedented early demand for WorldView-4, and our expanded partnership with KACST, a long time direct access customer.”
2016 Revenue and Adjusted EBITDA Outlook:
- Revenue in a range of $670 million to $700 million.
- Adjusted EBITDA in a range of $330 million to $355 million.
- Capital expenditures of approximately $125 million.(1)
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(1) Excludes capitalized interest
Conference Call Information:
DigitalGlobe’s management will host a conference call today, February 25, 2016 at 5 p.m. ET to discuss its 2015 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
Passcode: 48934805
A replay of the call will be available through March 25, 2016 at the following numbers:
U.S./Canada dial-in: (855) 859-2056
International dial-in: (404) 537-3406
Passcode: 48934805
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.
About DigitalGlobe
DigitalGlobe is a leading global provider of high-resolution Earth-imagery products and services sourced from our own advanced satellite constellation and third-party providers. Our imagery solutions support a wide variety of users in defense and intelligence, civil agencies, mapping and analysis, environmental monitoring, oil and gas exploration, infrastructure management, Internet portals, and navigation technology. Each day users depend on us to better understand our changing planet in order to save lives, resources and time.
DigitalGlobe is a registered trademark of DigitalGlobe.