DigitalGlobe (NYSE: DGI), a leading global content provider of
high-resolution earth imagery solutions, today announced that it
has entered into a $3.55 billion agreement with NGA, under the
EnhancedView procurement, effective September 1, 2010 upon
expiration of the company's NextView Agreement.
The agreement provides for DigitalGlobe to supply satellite
imagery deliveries from the WorldView satellite constellation under
a Service Level Agreement ("EnhancedView SLA") in a total amount of
$2.8 billion. The agreement also provides for up to $750 million
for value added products, infrastructure enhancements and other
services.
The agreement has a ten year term, inclusive of nine one-year
options exercisable by NGA, and is subject to Congressional
appropriations and the right of NGA to terminate or suspend the
contract at any time. The EnhancedView SLA portion of the award is
sized at $2.8 billion over the term of the contract; $250 million
annually, or $20.8 million per month, for the first four contract
years, commencing September 1, 2010, with an increase to $300
million annually, or $25 million per month, for the remaining six
years of the agreement term. To support requirements under the
agreement, DigitalGlobe will immediately begin procurement and
construction of its next satellite, WorldView-3, which the Company
anticipates will be ready for launch by the end of 2014.
Updated Full-Year 2010 Outlook
As a result on the EnhancedView SLA, DigitalGlobe is updating
its full-year 2010 outlook as follows:
- Full-year 2010 total revenue is expected to be between $340
million and $360 million.
- Full-year 2010 diluted earnings per share are expected to be
between $0.40 and $0.55.
- Full-year 2010 Adjusted EBITDA is expected to be between $195
million and $210 million, with margins between 57% and 59%.
- Total capital expenditures for 2010 are expected to be between
$110 and $120 million, including between $30 and $35 million
related to maintenance and between $80 and $85 million related to
incremental capital required to meet new requirements of the
EnhancedView SLA.
Webcast and Conference Call Information
The company will host a conference call and webcast at 11:30 a.m.
MDT (1:30 p.m. EDT) today to provide additional details on its new
EnhancedView SLA and discuss its updated full-year 2010
outlook.
The dial-in numbers and pass code to participate in the
conference call via telephone are: United States -- 866-713-8564
International -- 617-597-5312 Pass code: 2406-5551
The conference call can also be accessed online by visiting the
investor relations section of DigitalGlobe's website at:
www.digitalglobe.com.
A replay of the call will be available for seven days and can be
accessed using the following numbers and pass codes:
United States -- 888-286-8010 International -- 617-801-6888 Pass
code: 4031-5632
About DigitalGlobe Longmont,
Colorado-based DigitalGlobe (http://www.digitalglobe.com) is a
leading global provider of commercial high-resolution earth imagery
products and services. Sourced from our own advanced satellite
constellation, our imagery solutions support a wide variety of uses
within defense, intelligence, and homeland security applications,
mapping and analysis, environmental monitoring, oil and gas
exploration, infrastructure management, internet portals and
navigation technology. With our collection sources and
comprehensive ImageLibrary (containing more than 1 billion square
kilometers of earth imagery and imagery products) we offer a range
of on- and off-line products and services designed to enable
customers to easily access and integrate our imagery into their
business operations and applications. For more information, please
visit www.digitalglobe.com.
DigitalGlobe is a registered trademark of DigitalGlobe.
Forward-Looking Statements This release
may contain forward-looking statements. Forward-looking statements
relate to future events or our 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" or "continue" or
the negative of these terms or other similar words, although not
all forward-looking statements contain these words. These
statements are only predictions.
Any forward-looking statements contained in this release 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 that the
future plans, estimates or expectations contemplated by us will be
achieved. Such forward-looking statements are subject to various
risks and uncertainties and assumptions relating to our operations,
financial results, financial condition, business, prospects, growth
strategy and liquidity. If one or more of these or other risks or
uncertainties materialize, or if our underlying assumptions prove
to be incorrect, our actual results may vary materially from those
indicated in these statements.
Non-GAAP Financial Measures Adjusted
EBITDA is a key measure used in internal operating reports by
management and the board of directors to evaluate the performance
of our operations and is also used by analysts, investment banks
and lenders for the same purpose. Adjusted EBITDA is a measure of
our current period operating performance, excluding charges for
capital, depreciation related to prior period capital expenditures
and items which are considered non-core in nature.
We believe that the elimination of certain non-cash and
non-operating items enables a more consistent measurement of period
to period performance of our operations, as well as a comparison of
our operating performance to companies in our industry. We believe
this measure is particularly important in a capital intensive
industry such as ours, in which our current period depreciation is
not a good indication of our current or future period capital
expenditures. The cost to construct and launch a satellite and
build the related ground infrastructure may vary greatly from one
satellite to another, depending on the satellite's size, type and
capabilities. For example, our QuickBird satellite, which we are
currently depreciating, cost significantly less than our
WorldView-1 or WorldView-2 satellites. Current depreciation expense
is not indicative of the revenue generating potential of the
satellites.
Adjusted EBITDA excludes interest income (expense), net, income
taxes and loss from early extinguishment of debt because these
items are associated with our capitalization and tax structures.
Adjusted EBITDA excludes depreciation and amortization expense
because these non-cash expenses reflect the impact of prior capital
expenditure decisions which are not indicative of future capital
expenditure requirements. Adjusted EBITDA excludes non-cash stock
compensation expense because these are non-cash expenses and loss
on derivative instrument because these items are not related to our
primary operations.
We use Adjusted EBITDA in conjunction with traditional GAAP
operating performance measures as part of our overall assessment of
our performance and we do not place undue reliance on this measure
as our only measure of operating performance. Adjusted EBITDA is
not a recognized term under generally accepted accounting
principles, or GAAP, in the United States and may not be defined
similarly by other companies. Adjusted EBITDA should not be
considered an alternative to net income, as an indication of
financial performance, or as an alternative to cash flow from
operations as a measure of liquidity. There are limitations to
using non-GAAP financial measures, including the difficulty
associated with comparing companies that use similar performance
measures whose calculations may differ from ours.
Media Contact: Erika Dornaus Racepoint Group 781.487.4637 Email
Contact Investor Contact: David Banks DigitalGlobe 303.684.4210
Email Contact
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