DigitalGlobe Reports Full Year and Fourth 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.

FINANCIAL TABLES TO FOLLOW


DigitalGlobe, Inc.
Consolidated Statements of Operations

	For the three months ended December 31,				For the twelve months ended December 31,
(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.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA

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

	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.
Consolidated Balance Sheets

	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.
Consolidated Statements of Cash Flows

	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	)

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 Next Page »