DigitalGlobe Reports First Quarter 2014 Results

DigitalGlobe (DGI) , 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 March 31, 2014.

First quarter 2014 revenue was $156.5 million, a 23% increase compared with the same period last year. Net income for the first quarter was $0.4 million, with net loss available to common shareholders of $(0.6) million, or a loss of $(0.01) per diluted share. In the first quarter 2013, the company reported a net loss of $(60.6) million, with a net loss available to common shareholders of $(61.2), or a loss of $(0.96) per diluted shares.

First quarter Adjusted EBITDA was $67.9 million with an Adjusted EBITDA margin of 43%. This compares with Adjusted EBITDA of $35.9 million in first quarter 2013, with an associated margin of 28%. Adjusted EBITDA excludes the impact of restructuring, integration and other costs.

First quarter 2013 results exclude GeoEye (GEOY) financial results for the month of January as a result of timing of the close of the acquisition.

"We delivered a good start to 2014," said Jeffrey R. Tarr, CEO. "We drove double-digit top-line growth and strong EBITDA margin expansion primarily from our U.S. and international government businesses and continued success with our integration efforts. We also made progress on a number of important growth initiatives that will extend our industry leadership in resolution, accuracy and revisit, and add unique capabilities that we believe will drive sustained growth toward the end of this year, in 2015 and beyond. In the quarter, we also scaled our Tomnod crowdsourcing platform -- enabling more than 8 million volunteers to aid government customers in the search for Malaysia Airlines Flight MH370."

Recent Business Highlights

- First quarter 2014 revenue from the U. S. Government grew 26% to $97.6 million compared with first quarter 2013, including a 141% increase in value-added services to $34.4 million, driven by continued growth in the Global Enhanced GEOINT Delivery (G-EGD) program.
- Diversified Commercial revenue grew 18% to $58.9 million in the quarter compared with first quarter 2013. Growth was driven primarily by Direct Access Program (DAP) revenue of $26.5 million in the quarter, up 47% year over year.
- This quarter's revenue results include the activation of one new DAP customer in the Middle East.
- Within its location based services base of customers, the company signed a multi-year agreement to provide archived imagery for applications harnessing OpenStreetMap, a collaborative open source mapping project.
- Within oil & gas, recently acquired Spatial Energy contributed to first quarter growth and renewed 100% of its on-line subscriptions in the quarter. It also signed new on-shore and off-shore monitoring programs with both new and existing accounts. Among mining customers, the company agreed to provide tasked images for mine monitoring in Peru for a major multi-national mining company.
- Among non-governmental organizations, the company signed a new multi-year agreement with a global development foundation to provide geospatial imagery and analytics to help prove the efficacy of remote sensing in monitoring the nature and condition of smallholder farms, with an initial focus in Sub-Saharan Africa and Southeast Asia.
- Among international civil governments, the company received two awards in India to provide tasked images for change detection and feature extraction of forest resources and cadastral mapping.
- The company remains on track with construction of its WorldView-3 satellite in preparation for an expected mid-August launch.

- Read the full financials on the DigitalGlobe website.

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