DigitalGlobe Reports First Quarter 2016 Results

Performance against key metrics:

		For the three months ended
		March 31,
($ in millions)		2016			2015
Revenue	$	175.4		$	169.4
Net income (loss) available to common stockholders	$	7.3		$	(5.9	)
Adjusted EBITDA	$	95.4		$	73.1
Adjusted EBITDA margin		54.4	%		43.2		%
Net cash flows provided by operating activities	$	57.6		$	56.9
Free cash flow	$	17.8		$	25.6
Free cash flow margin		10.1	%		15.1		%


DigitalGlobe, Inc. Consolidated Statements of Operations

	For the three months ended
	March 31,
(in millions, except per share data)	2016			2015
Revenue	$	175.4		$	169.4
Costs and expenses:
Cost of revenue, excluding depreciation and amortization		32.2			39.3
Selling, general and administrative		48.7			57.0
Depreciation and amortization		71.0			67.3
Restructuring charges		2.9			2.2
Income from operations		20.6			3.6
Interest expense, net		(5.1	)		(12.7	)
Income (loss) before income taxes		15.5			(9.1	)
Income tax (expense) benefit		(6.0	)		4.2
Equity in earnings from joint venture, net of tax		(0.9	)		—
Net income (loss)		8.6			(4.9	)
Preferred stock dividends		(1.0	)		(1.0	)
Net income (loss) less preferred stock dividends		7.6			(5.9	)
Income allocated to participating securities		(0.3	)		—
Net income (loss) available to common stockholders	$	7.3		$	(5.9	)

Earnings per share:
Basic earnings (loss) per share	$	0.11		$	(0.08	)
Diluted earnings (loss) per share	$	0.11		$	(0.08	)
Weighted average common shares outstanding:
Basic		64.9			72.4
Diluted		65.1			72.4


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

	For the three months ended
	March 31,
(in millions)	2016		2015
Net income	$	8.6	$	(4.9	)
Depreciation and amortization		71.0		67.3
Interest expense, net		5.1		12.7
Income tax expense (benefit)		6.0		(4.2	)
EBITDA		90.7		70.9
Restructuring charges		2.9		2.2
Other re-engineering charges		0.9		—
Joint venture losses, net		0.9		—
Adjusted EBITDA	$	95.4	$	73.1