FINANCIAL TABLES TO FOLLOW
DigitalGlobe, Inc. |
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Consolidated Statements of Operations |
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For the three
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For the twelve
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(in millions, except per share amounts) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Revenue | $ | 192.7 | $ | 181.7 | $ | 725.4 | $ | 702.4 | |||||||
Costs and expenses: | |||||||||||||||
Cost of revenue, excluding depreciation and amortization | 51.9 | 34.1 | 164.4 | 144.9 | |||||||||||
Selling, general and administrative | 49.4 | 47.5 | 185.1 | 207.0 | |||||||||||
Depreciation and amortization | 64.7 | 74.3 | 267.2 | 280.7 | |||||||||||
Restructuring charges | 1.1 | 6.0 | 6.6 | 9.0 | |||||||||||
Income from operations | 25.6 | 19.8 | 102.1 | 60.8 | |||||||||||
Loss from early extinguishment of debt | (35.7) | — | (35.7) | — | |||||||||||
Interest expense, net | (4.0) | (5.3) | (17.8) | (29.0) | |||||||||||
Other income, net | 0.1 | — | 0.1 | 1.6 | |||||||||||
(Loss) income before income taxes | (14.0) | 14.5 | 48.7 | 33.4 | |||||||||||
Income tax benefit (expense) | 5.1 | (3.4) | (18.3) | (9.2) | |||||||||||
Equity in earnings from joint ventures, net of tax | (0.4) | (0.5) | (3.9) | (0.9) | |||||||||||
Net (loss) income | (9.3) | 10.6 | 26.5 | 23.3 | |||||||||||
Preferred stock dividends | (1.0) | (1.0) | (4.0) | (4.0) | |||||||||||
Net (loss) income less preferred stock dividends | (10.3) | 9.6 | 22.5 | 19.3 | |||||||||||
Loss (income) allocated to participating securities | — | (0.4) | (1.0) | (0.8) | |||||||||||
Net (loss) income available to common stockholders | $ | (10.3) | $ | 9.2 | $ | 21.5 | $ | 18.5 | |||||||
(Loss) earnings per share: | |||||||||||||||
Basic (loss) earnings per share | $ | (0.17) | $ | 0.13 | $ | 0.34 | $ | 0.26 | |||||||
Diluted (loss) earnings per share | $ | (0.17) | $ | 0.13 | $ | 0.34 | $ | 0.26 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 61.9 | 68.8 | 63.1 | 71.0 | |||||||||||
Diluted | 63.0 | 69.1 | 63.8 | 71.5 | |||||||||||
DigitalGlobe, Inc. |
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Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
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For the three months ended | For the year ended | |||||||||||
December 31, | December 31, | |||||||||||
(in millions) | 2016 | 2015 | 2016 | 2015 | ||||||||
Net (loss) income | $ | (9.3) | 10.6 | $ | 26.5 | $ | 23.3 | |||||
Depreciation and amortization | 64.7 | 74.3 | 267.2 | 280.7 | ||||||||
Interest expense, net | 4.0 | 5.3 | 17.8 | 29.0 | ||||||||
Income tax (benefit) expense | (5.1) | 3.4 | 18.3 | 9.2 | ||||||||
EBITDA | 54.3 | 93.6 | 329.8 | 342.2 | ||||||||
Loss from early extinguishment of debt | 35.7 | — | 35.7 | — | ||||||||
Restructuring charges | 1.1 | 6.0 | 6.6 | 9.0 | ||||||||
Other re-engineering charges | 1.9 | 2.3 | 5.7 | 5.2 | ||||||||
Joint venture losses, net | 0.4 | 0.5 | 3.9 | 0.9 | ||||||||
Integration and acquisition costs | 1.0 | — | 1.0 | — | ||||||||
Gain on disposition of subsidiary | — | — | — | (1.6) | ||||||||
Adjusted EBITDA | $ | 94.4 | 102.4 | $ | 382.7 | $ | 355.7 | |||||
DigitalGlobe, Inc. |
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Reconciliation of Net Cash Flows Provided by Operating Activities to Free Cash Flow |
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For the year ended December 31, | ||||||||||||
(in millions) | 2016 | 2015 | 2014 | |||||||||
Net cash flows provided by operating activities | $ | 301.6 | $ | 329.7 | $ | 224.9 | ||||||
Capital expenditures (1) | (192.0 | ) | (163.4 | ) | (234.0 | ) | ||||||
Free cash flow (2) | $ | 109.6 | $ | 166.3 | $ | (9.1 | ) |
(1) | Note that capital expenditures includes capitalized interest, tenant improvements and capital expenditures. | |
(2) | We modified our definition of free cash flow in the current year. Prior period amounts have been revised to conform to the current definition. | |
DigitalGlobe, Inc. |
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Consolidated Balance Sheets |
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As of December 31, | ||||||||
(in millions, except par value) | 2016 | 2015 | ||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 109.3 | $ | 126.1 | ||||
Restricted cash | 2.4 | 3.6 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $1.6 and $2.8, respectively | 114.6 | 90.8 | ||||||
Deferred contract costs | 10.3 | 13.5 | ||||||
Prepaid and other current assets | 23.8 | 17.4 | ||||||
Total current assets | 260.4 | 251.4 | ||||||
Property and equipment, net of accumulated depreciation of $1,387.8 and $1,179.4, respectively | 2,002.5 | 2,080.2 | ||||||
Goodwill | 578.1 | 484.1 | ||||||
Intangible assets, net of accumulated amortization of $39.0 and $29.6, respectively | 87.0 | 32.9 | ||||||
Long-term restricted cash | 4.8 | 4.3 | ||||||
Long-term deferred contract costs | 49.3 | 47.1 | ||||||
Other assets | 27.8 | 13.2 | ||||||
Total assets | $ | 3,009.9 | $ | 2,913.2 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 15.0 | $ | 3.9 | ||||
Current portion of long-term debt | 47.2 | 5.5 | ||||||
Deferred revenue | 86.3 | 80.3 | ||||||
Other accrued liabilities | 70.7 | 64.4 | ||||||
Total current liabilities | 219.2 | 154.1 | ||||||
Long-term debt, net of discount and debt issuance costs | 1,242.1 | 1,104.4 | ||||||
Deferred revenue, non-current | 216.9 | 284.0 | ||||||
Deferred income taxes, net, non-current | 124.0 | 86.4 | ||||||
Other liabilities | 34.8 | 36.2 | ||||||
Total liabilities | $ | 1,837.0 | $ | 1,665.1 | ||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||
Stockholders' equity: | ||||||||
Series A convertible preferred stock, $0.001 par value, 0.08 shares authorized; 0.08 issued and outstanding at December 31, 2016 and 2015 | — | — | ||||||
Common stock; $0.001 par value; 250.0 shares authorized; 77.0 shares issued and 61.4 shares outstanding at December 31, 2016 and 76.6 shares issued and 67.4 shares outstanding at December 31, 2015 | 0.2 | 0.2 | ||||||
Treasury stock, at cost; 15.6 shares at December 31, 2016 and 9.2 shares at December 31, 2015 | (342.0 | ) | (225.8 | ) | ||||
Additional paid-in capital | 1,518.3 | 1,502.8 | ||||||
Accumulated deficit | (3.6 | ) | (29.1 | ) | ||||
Total stockholders’ equity | 1,172.9 | 1,248.1 | ||||||
Total liabilities and stockholders’ equity | $ | 3,009.9 | $ | 2,913.2 | ||||
DigitalGlobe, Inc. |
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Consolidated Statements of Cash Flows |
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For the year ended December 31, | ||||||||||||
(in millions) | 2016 | 2015 | 2014 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | $ | 26.5 | $ | 23.3 | $ | 18.5 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization expense | 267.2 | 280.7 | 239.7 | |||||||||
Stock-based compensation expense, net of capitalized stock-based compensation expense | 18.2 | 18.8 | 14.7 | |||||||||
Amortization of aerial image library, deferred contract costs and lease incentive | 18.5 | 17.8 | 18.1 | |||||||||
Deferred income taxes | 18.0 | 9.2 | 6.7 | |||||||||
Excess tax benefit from share-based compensation | (1.3 | ) | (1.0 | ) | (3.0 | ) | ||||||
Loss from early extinguishment of debt | 35.7 | — | — | |||||||||
Amortization of debt issuance costs, accretion of debt discount, and other | 11.2 | 5.8 | 1.8 | |||||||||
Changes in working capital, net of assets acquired and liabilities assumed in business combinations: | ||||||||||||
Accounts receivable, net | (4.8 | ) | 42.8 | (14.7 | ) | |||||||
Deferred contract costs | (16.9 | ) | (18.5 | ) | (7.2 | ) | ||||||
Other current and non-current assets | (15.1 | ) | 3.2 | 2.0 | ||||||||
Accounts payable | (2.5 | ) | (3.7 | ) | (23.1 | ) | ||||||
Accrued liabilities | 8.7 | 13.1 | 4.2 | |||||||||
Deferred revenue | (61.8 | ) | (61.8 | ) | (32.8 | ) | ||||||
Net cash flows provided by operating activities | 301.6 | 329.7 | 224.9 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Construction in progress additions | (191.7 | ) | (160.9 | ) | (222.2 | ) | ||||||
Property and equipment additions | (0.3 | ) | (2.5 | ) | (11.8 | ) | ||||||
Acquisition of businesses, net of cash acquired | (140.0 | ) | — | (35.7 | ) | |||||||
Decrease (increase) in restricted cash | 0.7 | (1.6 | ) | 5.1 | ||||||||
Investment in joint venture | (10.0 | ) | (5.0 | ) | — | |||||||
Other | 3.0 | 0.1 | — | |||||||||
Net cash flows used in investing activities | (338.3 | ) | (169.9 | ) | (264.6 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from issuance of debt | 1,275.0 | — | — | |||||||||
Cash received from revolving credit facility | 110.0 | — | — | |||||||||
Repayment of debt, revolving credit facility and capital lease obligations | (1,212.3 | ) | (6.6 | ) | (6.6 | ) | ||||||
Cash paid for debt issuance costs, original issue discount, modification and early extinguishment of long-term debt | (37.6 | ) | (3.0 | ) | — | |||||||
Repurchase of common stock | (115.7 | ) | (144.5 | ) | (75.1 | ) | ||||||
Proceeds from exercise of stock options | 3.2 | 5.6 | 11.1 | |||||||||
Preferred stock dividend payment | (4.0 | ) | (4.0 | ) | (4.0 | ) | ||||||
Excess tax benefit from share-based compensation | 1.3 | 1.0 | 3.0 | |||||||||
Net cash flows provided by (used in) financing activities | 19.9 | (151.5 | ) | (71.6 | ) | |||||||
Net (decrease) increase in cash and cash equivalents | (16.8 | ) | 8.3 | (111.3 | ) | |||||||
Cash and cash equivalents, beginning of period | 126.1 | 117.8 | 229.1 | |||||||||
Cash and cash equivalents, end of period | $ | 109.3 | $ | 126.1 | $ | 117.8 | ||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||||||
Cash paid for interest, net of capitalized amounts of $55.6, $32.1 and $49.5, respectively | $ | 14.0 | $ | 24.0 | $ | — | ||||||
Cash paid (refunded) for income taxes | 0.1 | (0.5 | ) | (11.0 | ) | |||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||||||
Changes to non-cash property, equipment and construction in progress accruals, including interest | $ | 11.2 | $ | (9.2 | ) | $ | 16.5 | |||||
Additions to capital lease obligations | — | (6.9 | ) | (3.1 | ) | |||||||
Non-cash preferred stock dividend accrual | (1.0 | ) | (1.0 | ) | (1.0 | ) | ||||||