DigitalGlobe CFO expecting robust free cash flow long term

By Jennifer Lanning Drey

Savannah, Ga., May 16 - DigitalGlobe Inc.'s free cash flow will ramp up over time to be very robust in the future, the company's chief financial officer, Yancey Spruill, said during a Monday presentation at the JPMorgan Annual Technology, Media and Telecom Conference in Boston.

Long term, DigitalGlobe is targeting at least 10% free cash flow as a percentage of revenue, Spruill said.

"We actually have a lot of cash flow today. We're spending it on the [WorldView-3] satellite and other infrastructure, but that's heavily front-end weighted," he said.

"We're going to be over the hump on a lot of that front-end weighting as we exit this year, so I think free cash flow is going to have a different sign on it next year," Spruill said.

DigitalGlobe expects capital expenditures of at least $275 million in 2011, with all but $35 million of that amount related to construction of the WorldView-3 and other EnhancedView-related infrastructure investments, according to its most recent earnings release.

DigitalGlobe is a Longmont, Colo.-based space imagery company.

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