(1) Restructuring, acquisition and integration costs consist of non-recurring charges related to the combination with GeoEye.
EBITDA margin of 37.5% for third quarter 2014 and 33.1% for third quarter 2013 is calculated by dividing EBITDA by U.S. GAAP revenue. Adjusted EBITDA margin of 39.8% for third quarter 2014 and 39.8% for third quarter 2013 is calculated by dividing Adjusted EBITDA by U.S. GAAP revenue. We have not provided a reconciliation of our Adjusted EBITDA or Adjusted EBITDA margin outlook to the comparable forward-looking U.S. GAAP financial measures because we are unable to provide a forward-looking estimate of the reconciling items between such non-U.S. GAAP forward-looking measures and the comparable forward-looking U.S. GAAP measures. Certain factors that are materially significant to our ability to estimate these items are out of our control and/or cannot be reasonably predicted. Accordingly, a reconciliation to the comparable forward-looking U.S. GAAP measures is not available without unreasonable effort.
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DigitalGlobe, Inc.
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| September 30, | December 31, | |||||||
| (in millions, except par value) | 2014 | 2013 | ||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 127.4 | $ | 229.1 | ||||
| Restricted cash | 4.8 | 6.9 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $0.6 and $2.4, respectively | 127.3 | 116.3 | ||||||
| Short-term deferred contract costs | 10.6 | 10.0 | ||||||
| Prepaid and current assets | 20.6 | 23.8 | ||||||
| Deferred taxes (Note 12) | 5.5 | 5.9 | ||||||
| Total current assets | 296.2 | 392.0 | ||||||
| Property and equipment, net of accumulated depreciation of $1,044.2 and $880.6, respectively | 2,209.6 | 2,177.5 | ||||||
| Goodwill | 484.2 | 459.3 | ||||||
| Intangible assets, net of accumulated amortization of $16.7 and $8.7, respectively | 45.8 | 39.9 | ||||||
| Aerial image library, net of accumulated amortization of $45.2 and $41.3, respectively | 5.2 | 9.1 | ||||||
| Long-term restricted cash | 2.7 | 4.5 | ||||||
| Long-term deferred contract costs | 42.6 | 44.9 | ||||||
| Other assets | 34.4 | 38.6 | ||||||
| Total assets | $ | 3,120.7 | $ | 3,165.8 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 10.5 | $ | 20.9 | ||||
| Current portion of long-term debt | 5.5 | 5.5 | ||||||
| Other accrued liabilities | 60.5 | 80.3 | ||||||
| Current portion of deferred revenue | 103.8 | 81.3 | ||||||
| Total current liabilities | 180.3 | 188.0 | ||||||
| Deferred rev e nue | 329.4 | 374.6 | ||||||
| Long-term debt, net of discount | 1,133.4 | 1,137.1 | ||||||
| Long-term deferred tax liability, net (Note 12) | 76.8 | 80.0 | ||||||
| Other liabilities | 6.5 | 2.8 | ||||||
| Total liabilities | $ | 1,726.4 | $ | 1,782.5 | ||||
| COMMITMENTS AND CONTINGENCIES (Note 16) | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| DigitalGlobe, Inc. stockholders’ equity: | ||||||||
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Series A convertible preferred stock, $0.001 par value; 0.08 shares authorized; 0.08 shares
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— | — | ||||||
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Common stock; $0.001 par value; 250.0 shares authorized; 75.9 shares issued and 75.2
|
0.2 | 0.2 | ||||||
| Treasury stock, at cost; 0.7 shares at September 30, 2014 and 0.2 shares at December 31, 2013 | (19.8 | ) | (3.5 | ) | ||||
| Additional paid-in capital | 1,476.6 | 1,457.5 | ||||||
| Accumulated deficit | (64.6 | ) | (70.9 | ) | ||||
| Total DigitalGlobe, Inc. stockholders’ equity | 1,392.4 | 1,383.3 | ||||||
| Noncontrolling interest | 1.9 | — | ||||||
| Total stockholders’ equity | 1,394.3 | 1,383.3 | ||||||
| Total liabilities and stockholders’ equity | $ | 3,120.7 | $ | 3,165.8 | ||||
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DigitalGlobe, Inc.
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||||||||
| For the nine months ended | ||||||||
| September 30, | ||||||||
| (in millions) | 2014 | 2013 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income (loss) | $ | 6.3 | $ | (83.4 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization expense | 172.9 | 165.7 | ||||||
| Amortization of aerial image library, deferred contract costs and lease incentive | 11.6 | 12.6 | ||||||
| Non-cash stock-based compensation expense, net of capitalized stock-based compensation expense | 13.3 | 19.9 | ||||||
| Excess tax benefit from share-based compensation | (1.9 | ) | — | |||||
| Amortization of debt issuance costs and accretion of debt discount, net of capitalized interest | — | 3.6 | ||||||
| Write-off of debt issuance costs and debt discount | — | 12.8 | ||||||
| Deferred income taxes | (1.3 | ) | (38.1 | ) | ||||
| Loss on disposal of assets and other | 1.4 | (0.3 | ) | |||||
| Changes in working capital, net of assets acquired and liabilities assumed in business combinations: | ||||||||
| Accounts receivable, net | (8.1 | ) | 15.8 | |||||
| Deferred contract costs | (6.4 | ) | (16.5 | ) | ||||
| Other current and non-current assets | 4.5 | 3.1 | ||||||
| Accounts payable | (16.0 | ) | (3.4 | ) | ||||
| Accrued liabilities | (2.0 | ) | (37.4 | ) | ||||
| Deferred revenue | (25.7 | ) | 35.3 | |||||
| Cash fees paid for early extinguishment of long-term debt and debt discount | — | (13.8 | ) | |||||
| Net cash flows provided by operating activities | 148.6 | 75.9 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Construction in progress additions | (193.9 | ) | (198.9 | ) | ||||
| Acquisition of businesses, net of cash acquired | (35.7 | ) | (524.0 | ) | ||||
| Other property and equipment additions | (12.0 | ) | (12.7 | ) | ||||
| Decrease in restricted cash | 3.8 | 4.7 | ||||||
| Net cash flows used in investing activities | (237.8 | ) | (730.9 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of debt | — | 1,150.0 | ||||||
| Repayment of debt | (4.1 | ) | (483.9 | ) | ||||
| Payment of debt issuance costs | — | (36.2 | ) | |||||
| Proceeds from exercise of stock options | 8.6 | 36.9 | ||||||
| Excess tax benefit from share-based compensation | 1.9 | — | ||||||
| Preferred stock dividend payment | (3.0 | ) | (2.0 | ) | ||||
| Repurchase of common stock | (15.0 | ) | — | |||||
| Principal payments on capital lease obligations | (0.9 | ) | — | |||||
| Net cash flows (used in) provided by financing activities | (12.5 | ) | 664.8 | |||||
| Net (decrease) increase in cash and cash equivalents | (101.7 | ) | 9.8 | |||||
| Cash and cash equivalents, beginning of period | 229.1 | 246.2 | ||||||
| Cash and cash equivalents, end of period | $ | 127.4 | $ | 256.0 | ||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Cash paid for interest, net of capitalized amounts of $47.6 million and $32.6 million, respectively | — | — | ||||||
| NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Changes to non-cash property, equipment and construction in progress accruals, including interest | 16.3 | (5.0 | ) | |||||
| Changes to non-cash deferred contract cost accruals | (0.3 | ) | (2.4 | ) | ||||
| Additions to capital lease obligations | (3.1 | ) | — | |||||
| Issuance of shares of common and convertible preferred stock for acquisition of business | — | 837.8 | ||||||
| Stock-based compensation awards issued in acquisition of business, net of income taxes | — | 13.4 | ||||||
| Non-cash preferred stock dividend accrual | (1.0 | ) | (1.0 | ) | ||||
