DigitalGlobe Revenues up 47% to $127M, Suffers $60.6M loss in 1Q 2013

Longmont, Colo., May 8, 2013--DigitalGlobe, Inc. has reported first-quarter loss of $60.6 million or $0.96 per share, compared to a profit of $3.8 million or $0.08 per share in the same period last year. First quarter 2013 revenue increased 47 percent to $127.6 million, although it disappointed analysts who expected revenues of up to $136.80 million.

First quarter 2013 EBITDA was $(30.9) million, which included 66.8 million of one-time expenses related to the combination with GeoEye. The resulting EBITDA, not including combination-related expenses, was $35.9 million, with an associated margin of 28.1 percent.

"We are pleased to have successfully closed our combination with GeoEye in the quarter, and are on track in executing our integration plan," said Jeffrey R. Tarr, Chief Executive Officer. "We are more confident than ever in our ability to achieve 50 percent EBITDA margins after six quarters and deliver more than $1.8 billion in synergies.

He said the company, a provider of high-resolution earth imagery solutions, is well on our way toward its aspiration of building a global leader in geospatial information and insight.

During the quarter, the company 2013 U. S. Government revenue grew 44% to $77.5 million compared with first quarter 2012, driven by increased revenue related to the EnhancedView Service Level Agreement and a five-fold increase in value-added services to $14.3 million.

The company also received its first full quarter of revenue from an expanded contract it signed late in 2012 with the National Geospatial-Intelligence Agency (NGA) under its Global Enhanced GEOINT Delivery (G-EGD) program. The contract also increases the scope of G-EGD, making DigitalGlobe imagery available to a broader array of U.S. Government customers globally.

In January, the company completed a multi-year development project to more deeply integrate its operations with NGA. This now enables DigitalGlobe to serve a broader set of mission requirements for the U.S. Government, further advancing its goal of EnhancedView Success.

The company said it incurred $66.8 million of expenses related to the GeoEye acquisition consisting of $17.8 million from the loss on the early extinguishment of debt related to the refinancing of both GeoEye and DigitalGlobe debt. It also included transaction costs of $20.8 million. In addition, the company incurred $28.2 million of restructuring and integration-related expenses related to the combination.

For 2013, the company expects revenue in a range of $635 million to $660 million, with greater likelihood at the bottom half of the range. This 2013 revenue outlook compares with 2012 pro forma revenue of $581 million for the combined company, which includes a revenue contribution from GeoEye in 2012 from February 1 through December 31.