We use Adjusted EBITDA in conjunction with traditional GAAP operating performance measures as part of our overall assessment of our performance and we do not place undue reliance on this measure as our only measure of operating performance. Adjusted EBITDA should not be considered a substitute for other measures of financial performance reported in accordance with GAAP.
FINANCIAL TABLES TO FOLLOW
DigitalGlobe, Inc. Consolidated Statements of Operations |
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(in millions, except share and per share data) |
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Three Months Ended
December 31, |
Year Ended
December 31, |
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2008 | 2009 | 2008 | 2009 | ||||||||||||||
Historical results of operations: | (unaudited) | ||||||||||||||||
Defense and Intelligence revenue | $ | 55.9 | $ | 57.5 | $ | 222.4 | $ | 231.0 | |||||||||
Commercial revenue | 16.3 | 15.4 | 52.8 | 50.9 | |||||||||||||
Total revenue | 72.2 | 72.9 | 275.2 | 281.9 | |||||||||||||
Cost of revenue excluding depreciation and amortization |
8.6 | 8.9 | 28.5 | 31.1 | |||||||||||||
Selling, general and administrative | 21.6 | 23.0 | 76.1 | 88.6 | |||||||||||||
Depreciation and amortization | 19.3 | 18.2 | 75.7 | 74.4 | |||||||||||||
Income from operations | 22.7 | 22.8 | 94.9 | 87.8 | |||||||||||||
Loss from early extinguishment of debt | - | - | - | (7.7 | ) | ||||||||||||
Loss on derivative instruments | - | - | - | (1.8 | ) | ||||||||||||
Interest income (expense), net | 0.2 | - | (3.0 | ) | 0.1 | ||||||||||||
Income before income taxes | 22.9 | 22.8 | 91.9 | 78.4 | |||||||||||||
Income tax expense | (9.1 | ) | (9.0 | ) | (38.1 | ) | (31.0 | ) | |||||||||
Net income | $ | 13.8 | $ | 13.8 | $ | 53.8 | $ | 47.4 | |||||||||
Earnings per Share: | |||||||||||||||||
Basic earnings per share | $ | 0.32 | $ | 0.32 | $ | 1.24 | $ | 1.07 | |||||||||
Diluted earnings per share | $ | 0.31 | $ | 0.30 | $ | 1.22 | $ | 1.06 | |||||||||
Weighted average common shares outstanding | |||||||||||||||||
Basic | 43,434,251 | 43,219,134 | 43,513,506 | 44,234,019 | |||||||||||||
Diluted | 43,979,426 | 45,599,550 | 44,100,898 | 44,859,992 | |||||||||||||
DigitalGlobe, Inc. Unaudited Reconciliation of GAAP Net Income to Adjusted EBITDA |
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(in millions) |
Three Months Ended
December 31, |
Year Ended
December 31, |
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2008 | 2009 | 2008 | 2009 | ||||||||||||
Net income | $ | 13.8 | $ | 13.8 | $ | 53.8 | $ | 47.4 | |||||||
Depreciation and amortization | 19.3 | 18.2 | 75.7 | 74.4 | |||||||||||
Loss on derivative instrument | - | - | - | 1.8 | |||||||||||
Loss from early extinguishment of debt | - | - | - | 7.7 | |||||||||||
Interest (income), expense net | (0.2 | ) | - | 3.0 | (0.1 | ) | |||||||||
Income tax expense | 9.1 | 9.0 | 38.1 | 31.0 | |||||||||||
Non-cash stock compensation expense | 1.7 | 1.7 | 4.2 | 7.2 | |||||||||||
Adjusted EBITDA | $ | 43.7 | $ | 42.7 | $ | 174.8 | $ | 169.4 | |||||||
Adjusted EBITDA is not a recognized term under generally accepted accounting principles, or GAAP, in the United States and may not be defined similarly by other companies. Adjusted EBITDA should not be considered an alternative to net income, as an indication of financial performance, or as an alternative to cash flow from operations as a measure of liquidity. There are limitations to using non-GAAP financial measures, including the difficulty associated with comparing companies that use similar performance measures whose calculations may differ from ours. |
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DigitalGlobe, Inc. Consolidated Balance Sheets |
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(in millions, except per share data) | As of December 31, | ||||||||
2008 | 2009 | ||||||||
ASSETS | |||||||||
CURRENT ASSETS: | |||||||||
Cash and cash equivalents | $ | 60.8 | $ | 97.0 | |||||
Restricted cash | 2.5 | 7.3 | |||||||
Accounts receivable, net of allowance for doubtful accounts of $0.9 and $1.2, respectively | 44.3 | 49.7 | |||||||
Accounts receivable from related party | 2.5 | - | |||||||
Aerial image library | 4.9 | - | |||||||
Prepaid and current assets | 5.8 | 12.0 | |||||||
Income tax receivable | - | 3.9 | |||||||
Deferred taxes | 24.9 | 1.7 | |||||||
Total current assets | 145.7 | 171.6 | |||||||
Property and equipment, net of accumulated depreciation of $288.6 and $361.1, respectively | 792.9 | 891.0 | |||||||
Goodwill | 8.7 | 8.7 | |||||||
Intangibles, net of accumulated amortization of $5.4 and $7.2, respectively | 3.6 | 1.8 | |||||||
Aerial image library | - | 5.4 | |||||||
Long-term restricted cash | - | 16.7 | |||||||
Long-term deferred contract costs | 5.7 | 36.2 | |||||||
Long-term deferred contract costs from related party | 15.9 | - | |||||||
Other assets, net | 7.7 | 9.1 | |||||||
Total assets | $ | 980.2 | $ | 1,140.5 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES: |
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Accounts payable | $ | 0.7 | $ | 4.3 | |||||
Accounts payable to related party | 1.8 | - | |||||||
Accrued interest | 3.5 | 6.2 | |||||||
Other accrued liabilities | 20.6 | 17.9 | |||||||
Other accrued liabilities to related party | 2.7 | - | |||||||
Current portion of deferred revenue | 28.1 | 32.8 | |||||||
Total current liabilities | 57.4 | 61.2 | |||||||
Deferred revenue | 214.9 | 239.6 | |||||||
Deferred revenue related party | 24.7 | - | |||||||
Deferred lease incentive | 6.3 | 5.4 | |||||||
Long-term debt | 230.0 | 343.5 | |||||||
Long-term debt and accrued interest to related parties | 44.6 | - | |||||||
Long-term deferred tax liability | - | 11.3 | |||||||
Total liabilities | $ | 577.9 | $ | 661.0 | |||||
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY |
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Preferred stock, $0.001 par value; 24,000,000 shares authorized;
no shares issued and
|
- | - | |||||||
Common stock; $0.001 par value; 250,000,000 shares authorized; 43,468,941 shares issued and outstanding at December 31, 2008 and 45,122,593 shares issued and outstanding at December 31, 2009 | 0.2 | 0.2 | |||||||
Treasury stock, at cost; 21,555 shares at December 31, 2008 and 44,039 December 31, 2009 | (0.2 | ) | (0.7 | ) | |||||
Additional paid-in capital | 467.2 | 496.0 | |||||||
Accumulated other comprehensive loss | (1.5 | ) | - | ||||||
Accumulated deficit | (63.4 | ) | (16.0 | ) | |||||
Total stockholders' equity | 402.3 | 479.5 | |||||||
Total liabilities and stockholders' equity | $ | 980.2 | $ | 1,140.5 | |||||
DigitalGlobe, Inc. Consolidated Statements of Cash Flows |
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(in millions) | For the Year Ended December 31, | ||||||||
2008 | 2009 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net income | $ | 53.8 | $ | 47.4 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization expense | 75.7 | 74.4 | |||||||
Non-cash recognition of deferred revenue | (25.5 | ) | (26.6 | ) | |||||
Non-cash amortization | 1.5 | 5.3 | |||||||
Non-cash stock compensation expense | 4.2 | 7.2 | |||||||
Amortization of debt issuance costs | 0.3 | - | |||||||
Write off of debt financing fees | - | 5.3 | |||||||
Deferred income taxes | 34.7 | 33.6 | |||||||
Changes in working capital, net of investing activities: | |||||||||
Accounts receivable, net | (3.2 | ) | (2.6 | ) | |||||
Accounts receivable from related party | 3.0 | (0.3 | ) | ||||||
Income tax receivable | - | (3.9 | ) | ||||||
Aerial image library | (2.6 | ) | (6.1 | ) | |||||
Prepaid and other assets | 1.9 | (6.3 | ) | ||||||
Accounts payable | (1.5 | ) | 1.5 | ||||||
Accounts payable and accrued liabilities to related parties | (1.1 | ) | 3.5 | ||||||
Accrued liabilities | 8.1 | (5.0 | ) | ||||||
Deferred contract costs from related party | (10.3 | ) | (15.3 | ) | |||||
Deferred revenue | (1.9 | ) | 29.1 | ||||||
Deferred revenue related party | 6.5 | 2.1 | |||||||
Deferred lease incentive | 0.8 | - | |||||||
Net cash flows provided by operating activities | 144.4 | 143.3 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
Construction in progress additions | (131.8 | ) | (155.9 | ) | |||||
Other property, equipment and intangible additions | (10.2 | ) | (10.9 | ) | |||||
Increase in restricted cash | (0.1 | ) | (21.5 | ) | |||||
Settlements from derivative instrument | (1.4 | ) | (2.8 | ) | |||||
Net cash flows used in investing activities | (143.5 | ) | (191.1 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
Proceeds from issuance of debt, net of issuance costs | 38.5 | 330.9 | |||||||
Proceeds from initial public offering, net of issuance costs | (2.7 | ) | 21.7 | ||||||
Repayment of notes | - | (270.0 | ) | ||||||
Repurchase of common stock | - | (0.5 | ) | ||||||
Proceeds from exercise of stock options | 1.2 | 1.9 | |||||||
Net cash flows provided by financing activities | 37.0 | 84.0 | |||||||
Net increase in cash and cash equivalents | 37.9 | 36.2 | |||||||
Cash and cash equivalents, beginning of period | 22.9 | 60.8 | |||||||
Cash and cash equivalents, end of period | $ | 60.8 | $ | 97.0 | |||||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||||
Cash paid for income taxes | $ | 2.2 | $ | 2.4 | |||||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||||||
Non-cash items capitalized in construction in progress | $ | - | $ | 6.8 | |||||
Changes to non-cash property and equipment accruals, including interest | $ | 10.1 | $ | 2.9 |