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 September 30, 2015.
Third Quarter Financial Summary:
– Grew revenue 12.1% to $173.3 million.
– Increased U.S. Government revenue 26.4% to $111.0 million.
– Diversified Commercial revenue declined 6.7% to $62.3 million principally due to revenue from location based services.
– Net income was $9.6 million and net income less preferred stock dividends and Income allocated to participating securities was $8.2 million, or $0.12 per diluted share.
– Grew Adjusted EBITDA 48.6% to $91.4 million.
– Expanded Adjusted EBITDA margin 1290 bps to 52.7%.
– Increased Net cash flows from operations 80.6% to $85.6 million.
– Free cash flow was $51.5 million, yielding a free cash flow margin of 29.7%.
Recent Highlights:
– The National Geospatial-Intelligence Agency recently exercised the 6th option year of the EnhancedView SLA and awarded DigitalGlobe the fourth year of the Global Enhanced GEOINT Delivery (Global-EGD) contract.
– The company repurchased 1,491,098 shares of its common stock for $36.7 million at an average price of $24.62 per share.
– The company’s Board of Directors authorized an increase to the share repurchase program by an additional $130 million.
“Our margin expansion and strong free cash flow growth was driven by solid revenue growth and our continued focus on operational excellence,” said Jeffrey R. Tarr, DigitalGlobe CEO. “We are now generating ROIC above our weighted cost of capital, representing meaningful progress on our journey toward our long term returns target. While we have lowered our guidance, we are confident in our ability to continue to drive margin expansion and strong free cash flows. We are also firmly committed to returning capital to shareowners, as evidenced by our board’s decision, announced today, to increase our share repurchase authorization from $205 million to $335 million.”
