DigitalGlobe Reports Second 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 the National Geospatial-Intelligence Agency (NGA) and excluding the amortization of pre-Final Operation-Capability (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          
                      and Comprehensive Income (Loss)                       
                                                                            
                       For the three months ended  For the six months ended 
                                June 30,                   June 30,         
                       --------------------------  ------------------------ 
(in millions, except                     2011                       2011    
 per share data)           2012       Revised(1)       2012      Revised(1) 
                       ------------  ------------  -----------  ----------- 
Revenue                $      101.8  $       82.5  $     188.8  $     159.9 
Costs and expenses:                                                         
  Cost of revenue,                                                          
   excluding                                                                                                                        
      depreciation  and                                                                                                                  
      amortization                                20.0                    15.4                  38.0                  28.5  
    Selling,  general  and                                                                                                            
      administrative                            33.5                    34.2                  63.3                  64.4  
    Depreciation  and                                                                                                                    
      amortization                                28.5                    29.2                  57.6                  58.4  
                                              ------------    ------------    -----------    -----------  
Income  from  operations                  19.8                      3.7                  29.9                    8.6  
    Other  income                                                                                                                            
      (expense),  net                            (0.4)                        -                  (0.4)                  0.2  
    Interest  income                                                                                                                      
      (expense),  net                            (2.6)                  (5.7)                (5.8)              (13.6)
                                              ------------    ------------    -----------    -----------  
Income  (loss)  before                                                                                                                
  income  taxes                                    16.8                    (2.0)                23.7                  (4.8)
    Income  tax  (expense)                                                                                                            
      benefit                                          (7.2)                    1.1                (10.3)                  2.6  
                                              ------------    ------------    -----------    -----------  
        Net  income  (loss)    $                9.6    $              (0.9)  $            13.4    $            (2.2)
                                              ------------    ------------    -----------    -----------  
Comprehensive  Income:                                                                                                              
        Net  income  (loss)    $                9.6    $              (0.9)  $            13.4    $            (2.2)
                                              ------------    ------------    -----------    -----------  
Earnings  (loss)  per                                                                                                                  
  share:                                                                                                                                          
    Basic  earnings                                                                                                                        
      (loss)  per  share        $              0.21    $            (0.02)  $            0.29    $            (0.5)
                                              ------------    ------------    -----------    -----------  
    Diluted  earnings                                                                                                                    
      (loss)  per  share        $              0.21    $            (0.02)  $            0.29    $            (0.5)
                                              ------------    ------------    -----------    -----------  
Weighted  average                                                                                                                        
  common  shares                                                                                                                            
  outstanding:                                                                                                                              
    Basic                                                46.0                    46.3                  46.0                  46.2  
                                              ------------    ------------    -----------    -----------  
    Diluted                                            46.2                    46.3                  46.1                  46.2  
                                              ------------    ------------    -----------    -----------  
                                                                                                                                                        
  (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.                                                                                                              
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                          DigitalGlobe,  Inc.                                                          
      Reconciliation  of  GAAP  Net  Income  (Loss)  to  EBITDA  and  Adjusted  EBITDA      
                                                                (unaudited)                                                                  
                                                                                                                                                        
                                                              Three  months  ended              Six  months  ended    
                                                                        June  30,                                June  30,                    
                                                          ----------------------    ----------------------  
                                                                                        2011                                        2011        
(in  millions)                                      2012          Revised(1)          2012          Revised(1)  
                                                          ----------    ----------    ----------    ----------  
Net  income  (loss)                        $            9.6    $          (0.9)  $          13.4    $          (2.2)
Depreciation  and                                                                                                                        
  amortization                                            28.5                29.2                57.6                58.4  
Interest  (income)  expense,                                                                                                    
  net                                                                2.6                  5.7                  5.8                13.6  
Income  tax  expense  (benefit)                7.2                (1.1)              10.3                (2.6)
                                                          ----------    ----------    ----------    ----------  
EBITDA                                              $          47.9    $          32.9    $          87.1    $          67.2  
Non-cash  stock  compensation                                                                                                  
  expense                                                        2.2                  7.4                  4.7                  9.5  
EnhancedView  deferred                                                                                                              
  revenue                                                        9.2                16.5                27.2                41.3  
EnhancedView  outstanding                                                                                                        
  invoices  not  yet  paid  by                                                                                                      
  NGA                                                                4.6                  8.3                  4.6                  8.3  
Amortization  of  pre-FOC                                                                                                          
  payment  related  to  NextView              (6.4)              (6.4)            (12.8)            (12.8)
                                                          ----------    ----------    ----------    ----------  
Adjusted  EBITDA                            $          57.5    $          58.7    $        110.8    $        113.5  
                                                          ----------    ----------    ----------    ----------  
                                                                                                                                                        
(2)    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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