ORBITAL IMAGING CORP

CIK:0001040570|SEC Filings

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Revenues	$ 87,109	$ 85,769	$ 264,786	$ 259,601
Operating expenses:
Direct costs of revenue (exclusive of depreciation and amortization)	31,227	28,508	91,937	91,246
Depreciation and amortization	17,860	17,986	53,355	52,204
Selling, general and administrative	22,822	15,516	56,469	44,606
Total operating expenses	71,909	62,010	201,761	188,056
Income from operations	15,200	23,759	63,025	71,545
Interest income (expense), net	22	(1,122)	1,382	(8,249)
Income before provision for income taxes	15,222	22,637	64,407	63,296
Provision for income taxes	(5,666)	(8,549)	(25,004)	(23,552)
Net income	9,556	14,088	39,403	39,744
Preferred stock dividends	(1,007)	(1,008)	(3,002)	(2,992)
Net income less preferred stock dividends	8,549	13,080	36,401	36,752
Income allocated to participating securities	(912)	(1,416)	(3,902)	(3,984)
Net income available to common stockholders	7,637	11,664	32,499	32,768
Earnings per share:
Basic (in dollars per share)	$ 0.34	$ 0.53	$ 1.45	$ 1.48
Diluted (in dollars per share)	$ 0.33	$ 0.51	$ 1.43	$ 1.44
Shares used to compute basic earnings per share (in shares)	22,519	22,147	22,392	22,107
Shares used to compute diluted earnings per share (in shares)	22,845	22,789	22,799	22,767
Other comprehensive income (loss):
Foreign currency translation adjustments	(141)	105	(188)	45
Income tax benefit/(provision) related to items of other comprehensive income	58	(40)	75	(17)
Other comprehensive income (loss), net of tax	(83)	65	(113)	28
Comprehensive income	9,473	14,153	39,290	39,772
Preferred stock dividends	(1,007)	(1,008)	(3,002)	(2,992)
Comprehensive income less preferred stock dividends	8,466	13,145	36,288	36,780
Comprehensive income allocated to participating securities	(903)	(1,423)	(3,890)	(3,987)
Comprehensive income available to common stockholders	$ 7,563	$ 11,722	$ 32,398	$ 32,793

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Net income	$ 39,403	$ 39,744
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	53,355	52,204
Non-cash recognition of deferred revenue	(25,602)	(24,880)
Non-cash amortization of deferred costs	2,797	2,667
Amortization of debt discount and issuance costs	0	2,845
Gains, impairments and other	174	1,250
Deferred income taxes	25,004	23,533
Stock-based compensation	7,219	7,665
Changes in deferred revenue	128,392	5,277
Changes in assets and other liabilities	7,368	23,397
Net cash provided by operating activities	238,110	133,702
Cash flows from investing activities:
Capital expenditures	(207,717)	(246,864)
Proceeds from sale of property, plant and equipment	3,145	0
Investment purchase	(500)	0
Redemptions of short-term investments	720	40,780
Adjustment for SPADAC acquisition	0	319
Net cash used in investing activities	(204,352)	(205,765)
Cash flows from financing activities:
Prepaid financing costs	0	(118)
Preferred stock dividend payments	(3,002)	(2,992)
Proceeds from exercise of stock options and other	1,366	1,268
Net cash used in financing activities	(1,636)	(1,842)
Net increase (decrease) in cash and cash equivalents	32,122	(73,905)
Cash and cash equivalents, beginning of period	188,738	283,233
Cash and cash equivalents, end of period	220,860	209,328
Supplemental disclosures of cash flow information:
Income taxes paid	521	31
Non-cash surrender of common stock to cover employees' minimum tax liability	(2,240)	(1,302)
Non-cash preferred stock dividend accrual	1,007	1,008
Conversion of note receivable to cost-method investment	1,500	0
Non-cash consideration on customer transaction	$ 0	$ 1,920

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 220,860	$ 188,738
Short-term investments	8,500	9,220
Accounts receivable - trade and unbilled receivables (net of allowances: 2012 - $632; 2011 - $718)	44,973	39,917
Income tax receivable	2,748	19,645
Restricted cash	3,952	4,207
Current deferred tax assets	2,148	2,148
Prepaid expenses and other current assets	11,360	14,805
Total current assets	294,541	278,680
Property, plant and equipment, net	56,857	48,065
Satellites and related ground systems, net	1,070,795	913,454
Goodwill	67,945	68,130
Intangible assets (net of accumulated amortization: 2012 - $20,030; 2011 - $17,634)	8,130	10,526
Non-current restricted cash	3,915	6,875
Other non-current assets	11,051	8,855
Total assets	1,513,234	1,334,585
Current liabilities:
Accounts payable and accrued expenses	63,240	58,510
Current portion of deferred revenue	67,322	53,433
Total current liabilities	130,562	111,943
Long-term debt	513,379	511,019
Long-term deferred revenue, net of current portion	220,869	131,968
Deferred tax liabilities	89,748	64,694
Other non-current liabilities	7,879	7,674
Total liabilities	962,437	827,298
Commitments and contingencies	0	0
Stockholders' equity:
Common stock	226	222
Additional paid-in capital	386,259	379,154
Retained earnings	164,311	127,910
Total stockholders' equity	550,797	507,287
Total liabilities and stockholders' equity	1,513,234	1,334,585
Series A convertible preferred stock [Member]
Stockholders' equity:
Preferred stock	1	1
Series B junior participating preferred stock [Member]
Stockholders' equity:
Preferred stock	$ 0	$ 0