Revenue Up 13% Operating Cash Flow of $95 million up 55% $33 Million of Share Repurchases Bring Total to $139 Million
WESTMINSTER, Colo.–(BUSINESS WIRE)–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 June 30, 2015.
“net cash flows provided by (used in) operating activities”
Second Quarter Financial Summary:
- Grew revenue 12.8% to $178.0 million.
- Increased U.S. Government revenue 18.4% to $113.1 million.
- Grew Diversified Commercial revenue 4.2% to $64.9 million.
- Net income was $8.0 million and net income less preferred stock dividends was $7.0 million, or $0.09 per diluted share.
- Adjusted EBITDA was $87.7 million, yielding a margin of 49.3%.
- Net cash flows from operations were $95.0 million, up 55.0%.
- Free cash flow was $54.1 million, yielding a free cash flow margin of 30.4%.
Recent Highlights:
- Saab and DigitalGlobe announced the Vricon joint venture, which combines Saab’s unique 3D technology with DigitalGlobe’s high resolution imagery archive to produce highly accurate 3D products and digital elevation models with global coverage and rapid delivery timelines.
- The company repurchased 1,075,037 shares of its common stock for $32.7 million at an average price of $30.44 per share.
“We are pleased with our second quarter results, with revenue growth in line with expectations and better-than-expected adjusted EBITDA and free cash flow,” said Jeffrey R. Tarr, DigitalGlobe CEO. “While top-line growth may be somewhat moderated in the second half relative to our original expectations, we still expect revenue to grow at a double-digit rate driven by new capacity, new products and new customers. This growth, combined with our continued focus on operational excellence, should enable us to deliver continued margin expansion, strong free cash flow and improving returns that will contribute to the creation of shareowner value.”
Performance against key metrics:
| For the three months ended | |||||||||
| June 30, | |||||||||
| ($ in millions) | 2015 | 2014 | |||||||
| Revenue | $ | 178.0 | $ | 157.8 | |||||
| Net income | $ | 8.0 | $ | 5.0 | |||||
| Adjusted EBITDA | $ | 87.7 | $ | 63.9 | |||||
| Adjusted EBITDA margin | 49.3 | % | 40.5 | % | |||||
| Net cash flows provided by operating activities | $ | 95.0 | $ | 61.3 | |||||
| Free cash flow | $ | 54.1 | $ | 9.0 | |||||
| Free cash flow margin | 30.4 | % | 5.7 | % | |||||
Reiterated 2015 Outlook:
- 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, July 30, 2015 at 5 p.m. ET to discuss its 2015 second 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: 83626675
A replay of the call will be available through August 30, 2015 at the following numbers:
U.S./Canada dial-in: (855) 859-2056
International dial-in: (404) 537-3406
Passcode: 83626675
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.