DigitalGlobe Reports Third Quarter 2016 Results

Net income margin is calculated by dividing net income by U.S. GAAP revenue. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by U.S. GAAP revenue.


DigitalGlobe, Inc. Consolidated Statements of Operations

	For the three months ended						For the nine months ended
	September 30,						September 30,
(in millions, except per share data)	2016			2015			2016			2015
Revenue	$	181.8		$	173.3		$	532.7		$	520.7
Costs and expenses:
Cost of revenue, excluding depreciation and amortization		39.9			34.3			112.5			110.8
Selling, general and administrative		46.5			49.6			135.7			159.5
Depreciation and amortization		64.6			70.4			202.5			206.4
Restructuring charges		1.0			0.4			5.5			3.0
Income from operations		29.8			18.6			76.5			41.0
Interest expense, net		(4.0	)		(5.6	)		(13.8	)		(23.7	)
Other income, net		—			1.6			—			1.6
Income before income taxes		25.8			14.6			62.7			18.9
Income tax expense		(9.5	)		(4.6	)		(23.4	)		(5.8	)
Equity in earnings from joint ventures, net of tax		(1.3	)		(0.4	)		(3.5	)		(0.4	)
Net income		15.0			9.6			35.8			12.7
Preferred stock dividends		(1.0	)		(1.0	)		(3.0	)		(3.0	)
Net income less preferred stock dividends		14.0			8.6			32.8			9.7
Income allocated to participating securities		(0.7	)		(0.4	)		(1.5	)		(0.4	)
Net income available to common stockholders	$	13.3		$	8.2		$	31.3		$	9.3

Earnings per share:
Basic earnings per share	$	0.21		$	0.12		$	0.49		$	0.13
Diluted earnings per share	$	0.21		$	0.12		$	0.49		$	0.13
Weighted average common shares outstanding:
Basic		62.6			70.5			63.5			71.7
Diluted		63.4			70.9			64.0			72.4

DigitalGlobe, Inc. Reconciliation of Net Income to EBITDA and Adjusted EBITDA

	For the three months ended					For the nine months ended
	September 30,					September 30,
(in millions)	2016		2015			2016		2015
Net income	$	15.0	$	9.6		$	35.8	$	12.7
Depreciation and amortization		64.6		70.4			202.5		206.4
Interest expense, net		4.0		5.6			13.8		23.7
Income tax expense		9.5		4.6			23.4		5.8
EBITDA		93.1		90.2			275.5		248.6
Restructuring charges		1.0		0.4			5.5		3.0
Other re-engineering charges		2.2		2.5			3.8		2.9
Joint venture losses, net		1.3		0.4			3.5		0.4
Gain on disposition of subsidiary		—		(1.6	)		—		(1.6	)
Adjusted EBITDA	$	97.6	$	91.9		$	288.3	$	253.3

DigitalGlobe, Inc. Reconciliation of Net Cash Flows Provided by Operating Activities to Free Cash Flow

	For the three months ended						For the nine months ended
	September 30,						September 30,
(in millions)	2016			2015			2016			2015
Net cash flows provided by operating activities	$	66.1		$	85.6		$	214.7		$	237.5
Net cash flows used in investing activities		(68.5	)		(34.1	)		(161.3	)		(106.3	)
Investment in joint venture		2.5			—			10.0			5.0
Free cash flow	$	0.1		$	51.5		$	63.4		$	136.2

DigitalGlobe, Inc. Consolidated Balance Sheets

	September 30,			December 31,
(in millions, except par value)	2016			2015
ASSETS
Current Assets:
Cash and cash equivalents	$	87.9		$	126.1
Restricted cash		2.4			3.6
Accounts receivable, net of allowance for doubtful accounts of $1.7 and $2.8, respectively		104.5			90.8
Deferred contract costs		12.1			13.5
Prepaid and other current assets		20.7			17.4
Total current assets		227.6			251.4
Property and equipment, net of accumulated depreciation of $1,334.3 and $1,179.4, respectively		2,027.3			2,080.2
Goodwill		484.1			484.1
Intangible assets, net of accumulated amortization of $35.8 and $29.6, respectively		26.7			32.9
Long-term restricted cash		5.0			4.3
Long-term deferred contract costs		49.7			47.1
Other assets		23.5			13.2
Total assets	$	2,843.9		$	2,913.2
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	8.3		$	3.9
Current portion of long-term debt		5.5			5.5
Deferred revenue		86.0			80.3
Other accrued liabilities		53.4			64.4
Total current liabilities		153.2			154.1
Long-term debt, net of discount and debt issuance costs		1,104.4			1,104.4
Deferred revenue, non-current		233.2			284.0
Deferred income taxes, net, non-current		112.8			86.4
Other liabilities		35.1			36.2
Total liabilities	$	1,638.7		$	1,665.1
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
DigitalGlobe, Inc. stockholders’ equity:
Series A convertible preferred stock, $0.001 par value; 0.08 shares authorized; 0.08 shares issued and outstanding at September 30, 2016 and December 31, 2015		—			—
Common stock; $0.001 par value; 250.0 shares authorized; 76.9 shares issued and 62.4 shares outstanding at September 30, 2016 and 76.6 shares issued and 67.4 shares outstanding at December 31, 2015		0.2			0.2
Treasury stock, at cost; 14.5 shares at September 30, 2016 and 9.2 shares at December 31, 2015		(312.5	)		(225.8	)
Additional paid-in capital		1,511.8			1,502.8
Retained earnings (accumulated deficit)		5.7			(29.1	)
Total stockholders’ equity		1,205.2			1,248.1
Total liabilities and stockholders’ equity	$	2,843.9		$	2,913.2

DigitalGlobe, Inc. Consolidated Statements of Cash Flows

	For the nine months ended
	September 30,
(in millions)	2016		2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	35.8	$	12.7
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		202.5		206.4
Stock-based compensation expense, net of capitalized stock-based compensation expense		12.9		14.2
Amortization of aerial image library, deferred contract costs and lease incentive		12.3		12.3
Deferred income taxes		23.4		5.1
Excess tax benefit from share-based compensation		(0.2)		(1.3)
Amortization of debt issuance costs, accretion of debt discount, and other		10.2		3.8
Changes in working capital:
Accounts receivable, net		(13.7)		46.2
Deferred contract costs		(13.1)		(13.1)
Other current and non-current assets		(10.2)		2.5
Accounts payable		2.3		(1.8)
Accrued liabilities		(2.4)		5.8
Deferred revenue		(45.1)		(55.3)
Net cash flows provided by operating activities		214.7		237.5
CASH FLOWS FROM INVESTING ACTIVITIES:
Construction in progress additions		(154.6)		(97.9)
Property and equipment additions		(0.2)		(2.5)
Proceeds from sale of property		3.0		—
Decrease (increase) in restricted cash		0.5		(0.9)
Investment in joint venture		(10.0)		(5.0)
Net cash flows used in investing activities		(161.3)		(106.3)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of debt and capital lease obligations		(4.7)		(4.6)
Repurchase of common stock		(86.4)		(100.5)
Proceeds from exercise of stock options		2.3		5.4
Preferred stock dividend payment		(3.0)		(3.0)
Excess tax benefit from share-based compensation		0.2		1.3
Net cash flows used in financing activities		(91.6)		(101.4)
Net (decrease) increase in cash and cash equivalents		(38.2)		29.8
Cash and cash equivalents, beginning of period		126.1		117.8
Cash and cash equivalents, end of period	$	87.9	$	147.6

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest, net of capitalized amounts of $40.1 and $28.2, respectively		11.5		22.6
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Changes to non-cash property, equipment and construction in progress accruals, including interest		9.4		1.3
Non-cash preferred stock dividend accrual		(1.0)		(1.0)

« Previous Page 1 | 2 | 3 | 4 | 5 Next Page »