DigitalGlobe Reports First Quarter 2012 Results

EBITDA and Adjusted EBITDA are key measures used in internal operating reports by management and the board of directors to evaluate the performance of our operations and are also used by analysts, investment banks and lenders for the same purpose. In 2012, EBITDA is being used as a key element of the company-wide bonus incentive plan. Prior to 2012, Adjusted EBITDA had been a key element of the company-wide bonus incentive plan.

EBITDA is a measure of our current period operating performance, excluding charges for depreciation related to prior period capital expenditures and items which are generally non-core in nature. Adjusted EBITDA is a measure of our current period operating performance, excluding charges for capital, depreciation related to prior period capital expenditures and items which are generally non-core in nature, and including EnhancedView deferred revenue and EnhancedView outstanding invoices not yet paid by NGA and excluding the amortization of pre-FOC payments related to our NextView contract. EnhancedView outstanding invoices not yet paid by NGA represent an irrevocable right to be paid in cash by NGA.

EBITDA
We believe that the elimination of material non-cash, non-operating items enables a more consistent measurement of period to period performance of our operations. In addition, we believe that elimination of these facilitate comparison of our operating performance to companies in our industry. We believe this EBITDA measure is particularly important in a capital intensive industry such as ours, in which our current period depreciation is not a good indication of our current or future period capital expenditures. The cost to construct and launch a satellite and build the related ground infrastructure may vary greatly from one satellite to another, depending on the satellite's size, type and capabilities. For example, our QuickBird satellite, which we are currently depreciating, cost significantly less than our WorldView-1 and WorldView-2 satellites. Current depreciation expense is not indicative of the revenue generating potential of the satellite.

EBITDA excludes interest income, interest expense, income taxes and loss on early extinguishment of debt because these items are associated with our capitalization and tax structures. EBITDA also excludes depreciation and amortization expense because these non-cash expenses reflect the impact of prior capital expenditure decisions which are not indicative of future capital expenditure requirements. EBITDA excludes loss on derivative instrument and disposal of assets because these are not related to our primary operations.

We use 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. EBITDA should not be considered a substitute for other measures of financial performance reported in accordance with GAAP.

Adjusted EBITDA
We believe that the elimination of material non-cash, non-operating items enables a more consistent measurement of period to period performance of our operations. In addition, we believe that elimination of these items in combination with the addition of the nonrefundable EnhancedView deferred revenue and EnhancedView outstanding invoices not yet paid by NGA as well as the elimination of amortization of pre-FOC payments related to NextView, facilitate comparison of our operating performance to companies in our industry. We believe this Adjusted EBITDA measure is particularly important in a capital intensive industry such as ours, in which our current period depreciation is not a good indication of our current or future period capital expenditures. The cost to construct and launch a satellite and build the related ground infrastructure may vary greatly from one satellite to another, depending on the satellite's size, type and capabilities. For example, our QuickBird satellite, which we are currently depreciating, cost significantly less than our WorldView-1 and WorldView-2 satellites. Current depreciation expense is not indicative of the revenue generating potential of the satellite.

Adjusted EBITDA excludes interest income, interest expense, income taxes and loss on early extinguishment of debt because these items are associated with our capitalization and tax structures. Adjusted EBITDA also excludes depreciation and amortization expense because these non-cash expenses reflect the impact of prior capital expenditure decisions which are not indicative of future capital expenditure requirements. Adjusted EBITDA excludes non-cash stock compensation expense, because these items are non-cash expenses and loss on derivative instrument and disposal of assets because these are not related to our primary operations.

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.                             
         Unaudited Condensed Consolidated Statements of Operations          
                                                                            
                                                 For the three months ended 
                                                          March 31,         
                                                 -------------------------- 
                                                                   2011     
(in millions, except share and per share data)       2012         Revised   
                                                 ------------  ------------ 
Revenue                                          $       87.0  $       77.4 
Costs and expenses:                                                                                                        
    Cost  of  revenue,  excluding  depreciation  and                                                              
      amortization                                                                                    18.0                    13.1  
    Selling,  general  and  administrative                                        29.8                    30.2  
    Depreciation  and  amortization                                                    29.1                    29.2  
                                                                                                  ------------    ------------  
Income  from  operations                                                                      10.1                      4.9  
    Other  income  (expense),  net                                                              -                      0.2  
    Interest  income  (expense),  net                                                  (3.2)                  (7.9)
                                                                                                  ------------    ------------  
Income  (loss)  before  income  taxes                                                  6.9                    (2.8)
    Income  tax  (expense)  benefit                                                      (3.1)                    1.5  
                                                                                                  ------------    ------------  
        Net  income  (loss)                                                        $                3.8    $              (1.3)
                                                                                                  ============    ============  
Comprehensive  Income:                                                                                                              
        Net  income  (loss)                                                        $                3.8    $              (1.3)
                                                                                                  ============    ============  
Earnings  (loss)  per  share:                                                                                                    
    Basic  earnings  (loss)  per  share                                $              0.08    $            (0.03)
                                                                                                  ============    ============  
    Diluted  earnings  (loss)  per  share                            $              0.08    $            (0.03)
                                                                                                  ============    ============  
Weighted  average  common  shares  outstanding:                                                                  
    Basic                                                                                                    46.0                    46.1  
                                                                                                  ============    ============  
    Diluted                                                                                                46.7                    46.1  
                                                                                                  ============    ============  
                                                                                                                                                        
                                                                                                                                                        
                                                          DigitalGlobe,  Inc.                                                          
      Reconciliation  of  GAAP  Net  Income  (loss)  to  EBITDA  and  Adjusted  EBITDA      
                                                                (unaudited)                                                                  
                                                                                                                                                        
                                                                                                          Three  months  ended          
                                                                                                                    March  31,                  
                                                                                                  --------------------------  
                                                                                                                                      2011          
(in  millions)                                                                                2012              Revised(1)    
                                                                                                  ------------    ------------  
Net  income  (loss)                                                                $                3.8    $              (1.3)
Depreciation  and  amortization                                                        29.1                    29.2  
Interest  (income)  expense,  net                                                        3.2                      7.9  
Income  tax  expense  (benefit)                                                            3.1                    (1.5)
                                                                                                  ------------    ------------  
EBITDA                                                                                      $              39.2    $              34.3  
Non-cash  stock  compensation  expense                                              2.5                      2.1  
EnhancedView  deferred  revenue                                                        13.4                    16.5  
EnhancedView  outstanding  invoices  not  yet  paid                                                            
  by  NGA                                                                                                      4.6                      8.3  
Amortization  of  pre-FOC  payment  related  to                                                                    
  NextView                                                                                                (6.4)                  (6.4)
                                                                                                  ------------    ------------  
Adjusted  EBITDA                                                                    $              53.3    $              54.8  
                                                                                                  ============    ============  
                                                                                                                                                        
(1)  The  Company  revised  its  financial  information  for  the  first  three              
quarters  of  2011  as  a  result  of  the  full-year  2011  audit  completed  in              
February  2012.  Please  refer  to  the  company's  2011  Annual  Report  on  form  10-K
for  detail.                                                                                                                                  
                                                                                                                                                        
 

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