DigitalGlobe Reports Second 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.


DigitalGlobe, Inc. Consolidated Statements of Operations

	For the three months ended						For the six months ended
	June 30,						June 30,
(in millions, except per share data)	2016			2015			2016			2015
Revenue	$	175.5		$	178.0		$	350.9		$	347.4
Costs and expenses:
Cost of revenue, excluding depreciation and amortization		35.8			37.2			68.0			76.5
Selling, general and administrative		45.1			52.9			93.8			109.9
Depreciation and amortization		66.9			68.7			137.9			136.0
Restructuring charges		1.6			0.4			4.5			2.6
Income from operations		26.1			18.8			46.7			22.4
Interest expense, net		(4.7	)		(5.4	)		(9.8	)		(18.1	)
Income before income taxes		21.4			13.4			36.9			4.3
Income tax expense		(7.9	)		(5.4	)		(13.9	)		(1.2	)
Equity in earnings from joint ventures, net of tax		(1.3	)		—			(2.2	)		—
Net income		12.2			8.0			20.8			3.1
Preferred stock dividends		(1.0	)		(1.0	)		(2.0	)		(2.0	)
Net income less preferred stock dividends		11.2			7.0			18.8			1.1
Income allocated to participating securities		(0.5	)		(0.3	)		(0.9	)		—
Net income available to common stockholders	$	10.7		$	6.7		$	17.9		$	1.1

Earnings per share:
Basic earnings per share	$	0.17		$	0.09		$	0.28		$	0.02
Diluted earnings per share	$	0.17		$	0.09		$	0.28		$	0.02
Weighted average common shares outstanding:
Basic		62.9			72.1			63.9			72.3
Diluted		63.4			72.8			64.2			73.1


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

	For the three months ended				For the six months ended
	June 30,				June 30,
(in millions)	2016		2015		2016		2015
Net income	$	12.2	$	8.0	$	20.8	$	3.1
Depreciation and amortization		66.9		68.7		137.9		136.0
Interest expense, net		4.7		5.4		9.8		18.1
Income tax expense		7.9		5.4		13.9		1.2
EBITDA		91.7		87.5		182.4		158.4
Restructuring charges		1.6		0.4		4.5		2.6
Other re-engineering charges		0.7		0.4		1.6		0.4
Joint venture losses, net		1.3		—		2.2		—
Adjusted EBITDA	$	95.3	$	88.3	$	190.7	$	161.4


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

	For the three months ended						For the six months ended
	June 30,						June 30,
(in millions)	2016			2015			2016			2015
Net cash flows provided by operating activities	$	91.0		$	95.0		$	148.6		$	151.9
Net cash flows used in investing activities		(45.5	)		(40.9	)		(92.8	)		(72.2	)
Investment in joint venture		—			5.0			7.5			5.0
Free cash flow	$	45.5		$	59.1		$	63.3		$	84.7


DigitalGlobe, Inc. Consolidated Balance Sheets

	June 30,			December 31,
(in millions, except par value)	2016			2015
ASSETS
Current Assets:
Cash and cash equivalents	$	100.5		$	126.1
Restricted cash		2.3			3.6
Accounts receivable, net of allowance for doubtful accounts of $2.1 and $2.8, respectively		99.3			90.8
Deferred contract costs		11.2			13.5
Prepaid and other current assets		15.1			17.4
Total current assets		228.4			251.4
Property and equipment, net of accumulated depreciation of $1,285.5 and $1,179.4, respectively		2,032.5			2,080.2
Goodwill		484.1			484.1
Intangible assets, net of accumulated amortization of $33.8 and $29.6, respectively		28.7			32.9
Long-term restricted cash		5.1			4.3
Long-term deferred contract costs		49.8			47.1
Other assets		21.1			13.2
Total assets	$	2,849.7		$	2,913.2
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	9.5		$	3.9
Current portion of long-term debt		5.5			5.5
Deferred revenue		85.9			80.3
Other accrued liabilities		59.1			64.4
Total current liabilities		160.0			154.1
Long-term debt, net of discount and debt issuance costs		1,104.4			1,104.4
Deferred revenue, non-current		251.0			284.0
Deferred income taxes, net, non-current		103.3			86.4
Other liabilities		36.0			36.2
Total liabilities	$	1,654.7		$	1,665.1
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
DigitalGlobe, Inc. stockholders’ equity:
Series A convertible preferred stock, $0.001 par value; 0.08 shares authorized; 0.08 shares issued and outstanding at June 30, 2016 and December 31, 2015		—			—
Common stock; $0.001 par value; 250.0 shares authorized; 76.9 shares issued and 62.7 shares outstanding at June 30, 2016 and 76.6 shares issued and 67.4 shares outstanding at December 31, 2015		0.2			0.2
Treasury stock, at cost; 14.2 shares at June 30, 2016 and 9.2 shares at December 31, 2015		(302.9	)		(225.8	)
Additional paid-in capital		1,506.0			1,502.8
Accumulated deficit		(8.3	)		(29.1	)
Total stockholders’ equity		1,195.0			1,248.1
Total liabilities and stockholders’ equity	$	2,849.7		$	2,913.2

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