Current Report

EXHIBIT 99.1

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

		Three Months Ended December 31,
		2011				2010				Change
		(unaudited)
Revenues		$	96,806			$	82,543			$	14,263
Operating expenses:
Direct costs of revenue (exclusive of depreciation and amortization)			31,726				26,105				5,621
Depreciation and amortization			19,636				16,677				2,959
Selling, general and administrative			16,315				16,067				248
Goodwill impairment			2,500				-				2,500
Total operating expenses			70,177				58,849				11,328
Income from operations			26,629				23,694				2,935
Interest expense, net			-				(6,204	)			6,204
Gain from investments			-				2,500				(2,500	)
Income before provision for income taxes			26,629				19,990				6,639
Provision for income taxes			(9,761	)			(1,900	)			(7,861	)
Net income			16,868				18,090				(1,222	)
Preferred stock dividends			(1,008	)			(1,008	)			-
Net income less preferred stock dividends			15,860				17,082				(1,222	)
Income allocated to participating securities			(1,716	)			(1,871	)			155
Net income available to common stockholders		$	14,144			$	15,211			$	(1,067	)
Earnings per share
Basic		$	0.64			$	0.70			$	(0.06	)
Diluted		$	0.62			$	0.68			$	(0.06	)
Shares used to compute basic earnings per share			22,157				21,855
Shares used to compute diluted earnings per share			22,797				22,523

 

 

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		Year Ended December 31,
			2011				2010			Change
			(unaudited)
Revenues		$	356,407			$	330,345			$	26,062
Operating expenses:
Direct costs of revenue (exclusive of depreciation and amortization)			122,972				104,010				18,962
Depreciation and amortization			71,840				65,262				6,578
Selling, general and administrative			60,921				57,451				3,470
Goodwill impairment			2,500				-				2,500
Total operating expenses			258,233				226,723				31,510
Income from operations			98,174				103,622				(5,448	)
Interest expense, net			(8,249	)			(27,918	)			19,669
Other non-operating expense			-				(24,466	)			24,466
Gain from investments			-				3,200				(3,200	)
Loss from early extinguishment of debt			-				(37	)			37
Write-off of prepaid financing costs			-				(6,412	)			6,412
Income before provision for income taxes			89,925				47,989				41,936
Provision for income taxes			(33,313	)			(23,352	)			(9,961	)
Net income			56,612				24,637				31,975
Preferred stock dividends			(4,000	)			(1,107	)			(2,893	)
Net income less preferred stock dividends			52,612				23,530				29,082
Income allocated to participating securities			(5,701	)			(783	)			(4,918	)
Net income available to common stockholders		$	46,911			$	22,747			$	24,164
Earnings per share
Basic		$	2.12			$	1.05			$	1.07
Diluted		$	2.06			$	1.02			$	1.04
Shares used to compute basic earnings per share			22,119				21,622
Shares used to compute diluted earnings per share			22,788				22,250

 

 

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News Release

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

		December 31, 2011				December 31, 2010				Change
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	188,738			$	283,233			$	(94,495	)
Short-term investments			9,220				50,124				(40,904	)
Accounts receivable - trade and unbilled receivables, net			39,917				42,868				(2,951	)
Income tax receivable			19,645				34,385				(14,740	)
Restricted cash			4,207				3,952				255
Current deferred tax assets			2,148				-				2,148
Prepaid expenses and other current assets			14,805				16,183				(1,378	)
Total current assets			278,680				430,745				(152,065	)
Property, plant and equipment, net			48,065				35,924				12,141
Satellites and related ground systems, net			913,454				697,126				216,328
Goodwill			68,130				71,568				(3,438	)
Intangible assets, net			10,526				14,943				(4,417	)
Non-current restricted cash			6,875				10,822				(3,947	)
Other non-current assets			8,855				7,957				898
Total assets		$	1,334,585			$	1,269,085			$	65,500
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses		$	58,510			$	70,936			$	(12,426	)
Current portion of deferred revenue			53,433				50,533				2,900
Current deferred tax liabilities			-				6,656				(6,656	)
Total current liabilities			111,943				128,125				(16,182	)
Long-term debt			511,019				508,160				2,859
Long-term deferred revenue, net of current portion			131,968				161,673				(29,705	)
Deferred tax liabilities			64,694				21,336				43,358
Other non-current liabilities			7,674				6,548				1,126
Total liabilities			827,298				825,842				1,456
Commitments and contingencies			-				-				-
Stockholders’ equity:
Series A convertible preferred stock			1				1				-
Series B junior participating preferred stock			-				-				-
Common stock			222				221				1
Additional paid-in capital			379,154				367,723				11,431
Retained earnings			127,910				75,298				52,612
Total stockholders’ equity			507,287				443,243				64,044
Total liabilities and stockholders’ equity		$	1,334,585			$	1,269,085			$	65,500

 

 

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News Release

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION

(in thousands)

 

		Year Ended December 31,
		2011				2010				Change
		(unaudited)
Net cash provided by operating activities		$	182,908			$	126,693			$	56,215
Net cash used in investing activities			(274,425	)			(265,921	)			(8,504	)
Net cash (used in) provided by financing activities			(2,978	)			213,589				(216,567	)
Net (decrease) increase in cash and cash equivalents			(94,495	)			74,361				(168,856	)
Cash and cash equivalents, beginning of period			283,233				208,872				74,361
Cash and cash equivalents, end of period		$	188,738			$	283,233			$	(94,495	)

 

 

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News Release

ADJUSTED EBITDA

(in thousands)

(unaudited)

 

		Three Months Ended December 31,								Year Ended December 31,
		2011				2010				2011				2010
Net income		$	16,868			$	18,090			$	56,612			$	24,637
Adjustments:
Interest expense, net			-				6,204				8,249				27,918
Loss from early extinguishment of debt			-				-				-				37
Write-off of prepaid financing costs			-				-				-				6,412
Provision for income taxes			9,761				1,900				33,313				23,352
Depreciation and amortization			19,636				16,677				71,840				65,262
Non-cash stock-based compensation expense			2,855				2,192				10,520				6,877
Non-cash change in fair value of financial instrument			-				-				-				24,466
Gain from investments			-				(2,500	)			-				(3,200	)
Goodwill impairment			2,500				-				2,500				-
Acquisition costs			-				1,167				-				1,167
Adjusted EBITDA		$	51,620			$	43,730			$	183,034			$	176,928

Adjusted EBITDA is a non-GAAP financial measure that represents net income before interest, net, provision for income taxes, depreciation and amortization expenses, non-cash stock-based compensation expense and other items.  We believe that Adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing operations.  However, Adjusted EBITDA is not a recognized term of financial performance under GAAP, and our calculation of Adjusted EBITDA may not be comparable to the calculation of similarly titled measures of other companies.

 

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News Release

 

ADJUSTED NET INCOME AVAILABLE TO COMMON STOCKHOLDERS AND ADJUSTED DILUTED EPS

(in thousands, except per share amounts)

(unaudited)

 

		Three Months Ended December 31,								Year Ended December 31,
		2011				2010				2011				2010
Net income available to common stockholders		$	14,144			$	15,211			$	46,911			$	22,747
Adjustments:
Non-cash change in fair value of financial instrument			-				-				-				24,466
Loss from early extinguishment of debt			-				-				-				37
Write-off of prepaid financing costs			-				-				-				6,412
Gain from investments			-				(2,500	)			-				(3,200	)
Goodwill impairment			2,500				-				2,500				-
Long-lived asset impairment			1,600				-				1,600				-
Acquisition costs			-				1,167				-				1,167
Impact of adjustments on income allocated to participating securities			(382	)			703				(382	)			(740	)
Adjustment to normalize provision for income taxes			(624	)			(5,085	)			(624	)			(6,628	)
Adjusted net income available to common stockholders		$	17,238			$	9,496			$	50,005			$	44,261
Adjusted fully diluted shares			22,797				22,523				22,788				22,250
Adjusted diluted EPS		$	0.76			$	0.42			$	2.19			$	1.99

Adjusted Net Income Available to Common Stockholders is a non-GAAP financial measure that represents net income available to common stockholders before other items, net of tax.  Adjusted Diluted EPS is a non-GAAP financial measure that represents fully diluted earnings per share before other items, net of tax.  We believe that Adjusted Net Income Available to Common Stockholders and Adjusted Diluted EPS provide useful information to investors because they allow investors to evaluate our performance for different periods on a more comparable basis by excluding items that are not related to the ongoing operations of our business.  However, Adjusted Net Income Available to Common Stockholders and Adjusted Diluted EPS are not recognized terms of financial performance under GAAP, and our calculation of Adjusted Net Income Available to Common Stockholders and Adjusted Diluted EPS may not be comparable to the calculation of similarly titled measures of other companies

 

 

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About GeoEye

GeoEye is a leading source of geospatial information and insight for decision makers and analysts, who need a clear understanding of our changing world to protect lives, manage risk and optimize resources. Each day, organizations in defense and intelligence, public safety, critical infrastructure, energy and online media rely on GeoEye's imagery, tools and expertise to support important missions around the globe. Widely recognized as a pioneer in high-resolution satellite imagery, GeoEye has evolved into a complete provider of geospatial intelligence solutions. GeoEye's ability to collect, process and analyze massive amounts of geospatial data allows our customers to quickly see precise changes on the ground and anticipate where events may occur in the future. GeoEye is a public company listed on NASDAQ as GEOY and is headquartered in Herndon, Virginia with more than 700 employees worldwide. Learn more at www.geoeye.com .

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Without limitation, the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “will” and similar expressions are intended to identify forward-looking statements. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future, including statements relating to growth, expected levels of expenditures and statements expressing general optimism about future operating results, are forward-looking statements. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements and those presented elsewhere by our management from time to time are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. These risks and uncertainties include, but are not limited to, those described in "Risk Factors" included in our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2010, which we filed with the Securities and Exchange Commission ("SEC") on March 15, 2011, and our Quarterly Reports on Form 10-Q for the periods ended March 31, 2011, June 30, 2011, and Sept. 30, 2011, which we filed with the SEC on May 10, 2011, Aug. 2, 2011, and Nov. 1, 2011, respectively. Copies of all SEC filings may be obtained from the SEC's EDGAR Web site, http://www.sec.gov / or by contacting: William L. Warren, Executive Vice President, General Counsel and Secretary, at 703-480-5672.

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