DigitalGlobe Reports Full Year and Fourth Quarter 2015 Results

Free Cash Flow margin is calculated by dividing Free Cash Flow by U.S. GAAP revenue.


DigitalGlobe, Inc. Consolidated Balance Sheets

	As of December 31,
(in millions, except par value)	2015			2014
ASSETS
Current Assets:
Cash and cash equivalents	$	126.1		$	117.8
Restricted cash		3.6			2.3
Accounts receivable, net of allowance for doubtful accounts of $2.8 and $0.5, respectively		90.8			133.6
Deferred contract costs		13.5			9.1
Prepaid and current assets		17.4			22.6
Deferred taxes (Note 11)		11.9			24.1
Total current assets		263.3			309.5
Property and equipment, net of accumulated depreciation of $1,179.4 and $1,095.5, respectively		2,080.2			2,174.7
Goodwill		484.1			484.5
Intangible assets, net of accumulated amortization of $29.6 and $19.5, respectively		32.9			43.0
Long-term restricted cash		4.3			4.0
Long-term deferred contract costs		47.1			41.8
Other assets		13.2			13.7
Total assets	$	2,925.1		$	3,071.2
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	3.9		$	4.4
Current portion of long-term debt		5.5			5.5
Other accrued liabilities		64.4			62.2
Deferred revenue		80.3			91.0
Total current liabilities		154.1			163.1
Deferred revenue, non-current		284.0			335.1
Long-term debt, net of discount and debt issuance costs (Note 6)		1,104.4			1,108.1
Deferred tax liability, net, non-current (Note 11)		98.3			101.9
Other liabilities		36.2			9.5
Total liabilities	$	1,677.0		$	1,717.7
COMMITMENTS AND CONTINGENCIES (Note 16)
STOCKHOLDERS’ EQUITY
DigitalGlobe, Inc. stockholders' equity:
Series A convertible preferred stock, $0.001 par value, 0.08 shares authorized; 0.08 issued and outstanding at December 31, 2015 and 2014		—			—
Common stock; $0.001 par value; 250.0 shares authorized; 76.6 shares issued and 67.4 shares outstanding at December 31, 2015 and 76.1 shares issued and 73.2 shares outstanding at December 31, 2014		0.2			0.2
Treasury stock, at cost; 9.2 shares at December 31, 2015 and 2.9 shares at December 31, 2014		(225.8	)		(80.1	)
Additional paid-in capital		1,502.8			1,484.0
Accumulated deficit		(29.1	)		(52.4	)
Total DigitalGlobe, Inc. stockholders' equity		1,248.1			1,351.7
Noncontrolling interest		—			1.8
Total stockholders’ equity		1,248.1			1,353.5
Total liabilities and stockholders’ equity	$	2,925.1		$	3,071.2


DigitalGlobe, Inc. Consolidated Statements of Cash Flows

	For the year ended December 31,
(in millions)	2015			2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	23.3		$	18.5		$	(68.3	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense		280.7			239.7			224.8
Amortization of aerial image library, deferred contract costs and lease incentive		17.8			14.7			16.9
Non-cash stock-based compensation expense, net of capitalized stock-based compensation expense		18.8			18.1			23.0
Excess tax benefit from share-based compensation		(1.0	)		(3.0	)		—
Deferred income taxes		9.2			6.7			(31.4	)
Write-off of debt issuance costs and debt discount		—			—			12.8
Amortization of debt issuance costs and accretion of debt discount, and other		5.8			1.8			3.3
Changes in working capital, net of assets acquired and liabilities assumed in business combinations:
Accounts receivable, net		42.8			(14.7	)		(10.4	)
Deferred contract costs		(18.5	)		(7.2	)		(19.1	)
Other current and non-current assets		3.2			2.0			(2.2	)
Accounts payable		(3.7	)		(23.1	)		0.1
Accrued liabilities		13.1			4.2			(37.5	)
Deferred revenue		(61.8	)		(32.8	)		14.1
Cash fees paid for early extinguishment of long-term debt and debt discount		—			—			(13.8	)
Net cash flows provided by operating activities		329.7			224.9			112.3
CASH FLOWS FROM INVESTING ACTIVITIES:
Construction in progress additions		(160.9	)		(222.2	)		(273.8	)
Property and equipment additions		(2.5	)		(11.8	)		(13.3	)
Acquisition of businesses, net of cash acquired		—			(35.7	)		(524.0	)
(Increase) decrease in restricted cash		(1.6	)		5.1			16.6
Loan to joint venture and other		(4.9	)		—			—
Net cash flows used in investing activities		(169.9	)		(264.6	)		(794.5	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of debt		—			—			1,150.0
Repayment of debt and capital lease obligations		(6.6	)		(6.6	)		(485.3	)
Payment of debt issuance costs		(3.0	)		—			(36.2	)
Repurchase of common stock		(144.5	)		(75.1	)		—
Proceeds from exercise of stock options		5.6			11.1			39.6
Preferred stock dividend payment		(4.0	)		(4.0	)		(3.0	)
Excess tax benefit from share-based compensation		1.0			3.0			—
Net cash flows (used in) provided by financing activities		(151.5	)		(71.6	)		665.1
Net (decrease) increase in cash and cash equivalents		8.3			(111.3	)		(17.1	)
Cash and cash equivalents, beginning of period		117.8			229.1			246.2
Cash and cash equivalents, end of period	$	126.1		$	117.8		$	229.1
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest, net of capitalized amounts of $32.1, $49.5 and $38.1, respectively	$	24.0		$	—		$	—
Cash paid (refunded) for income taxes		(0.5	)		(11.0	)		13.9
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Changes to non-cash property, equipment and construction in progress accruals, including interest	$	(9.2	)	$	16.5		$	(12.9	)
Additions to capital lease obligations		(6.9	)		(3.1	)		(0.9	)
Issuance of shares of common and convertible preferred stock for acquisition of business		—			—			837.8
Stock-based compensation awards issued in acquisition of business, net of income taxes		—			—			13.4
Non-cash preferred stock dividend accrual		(1.0	)		(1.0	)		(1.0	)

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