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Digitalglobe Reports Third Quarter 2015 Results

The following excerpt is from the company's SEC filing.

Revenue of $173 Million, Increased 12%

Operating Cash Flow of $86 Million, Increased 81%

$37 Million of Share Repurchases Bring Total to $176 Million

Westminster, Colo., October 29, 2015 DigitalGlobe, Inc. (NYSE: DGI), a leading global provider of commercial high-resolution earth observation and advanced geospatial solutions, today reported financial results for the quarter ended September 30, 2015.

Third Quarter Financial Summary:

Grew revenue 12.1% to $173.3 million.

Increased U.S. Government revenue 26.4% to $111.0 million.

Diversified Commercial revenue declin ed 6.7% to $62.3 million principally due to revenue from location based services.

Net income was $9.6 million and net income less preferred stock dividends and Income allocated to participating securities was $8.2 million, or $0.12 per diluted share.

Grew Adjusted EBITDA 48.6% to $91.4 million.

Expanded Adjusted EBITDA margin 1290 bps to 52.7%.

Increased Net cash flows from operations 80.6% to $85.6 million.

Free cash flow was $51.5 million, yielding a free cash flow margin of 29.7%.

Recent Highlights:

The National Geospatial-Intelligence Agency recently exercised the 6

option year of the EnhancedView SLA and awarded DigitalGlobe the fourth year of the Global Enhanced GEOINT Delivery (Global-EGD) contract.

The company repurchased 1,491,098 shares of its common stock for $36.7 million at an average price of $24.62 per share.

The companys Board of Directors authorized an increase to the share repurchase program by an additional $130 million.

Our margin expansion and strong free cash flow growth was driven by solid revenue growth and our continued focus on operational excellence, said Jeffrey R. Tarr, DigitalGlobe CEO. We are now generating ROIC above our weighted cost of capital, representing meaningful progress on our journey toward our long term returns target. While we have lowered our guidance, we are confident in our ability to continue to drive margin expansion and strong free cash flows. We are also firmly committed to returning capital to shareowners, as evidenced by our boards decision, announced today, to increase our share repurchase authorization from $205 million to $335 million.

Performance against key metrics:

For the three months ended

($ in millions)

Net income (loss) available to common stockholders

Adjusted EBITDA margin

Net cash flows provided by operating activities

Free cash flow margin

Lowered 2015 Revenue and Adjusted EBITDA Outlook:

Revenue in a range of $685 million to $700 million.

Adjusted EBITDA in a range of $330 million to $345 million.

Capital expenditures of approximately $110 million.(1)

(1) Excludes capitalized interest and amounts reimbursed from tenant improvement allowance.

Conference Call Information:

DigitalGlobes management will host a conference call today, October 29, 2015 at 5 p.m. ET to discuss its 2015 third quarter financial and operating results.

The conference call dial-in numbers are as follows:

U.S./Canada dial-in: (855) 212-2368

International dial-in: (315) 625-6886

Passcode: 60123751

A replay of the call will be available through November 28, 2015 at the following numbers:

U.S./Canada dial-in: (855) 859-2056

International dial-in: (404) 537-3406

DigitalGlobe will also sponsor a live and archived webcast of the conference call on the Investor Relations portion of its website. Click here to directly access the live webcast.

Supplemental earnings materials, including conference call slides and management scripts, are available on the Investor Relations section of the companys website at www.digitalglobe.com.

About DigitalGlobe

DigitalGlobe is a leading global provider of commercial high-resolution earth observation and advanced geospatial solutions that help decision makers better understand our changing planet in order to save lives, resources and time. Sourced from the worlds

leading constellation, our imagery solutions deliver unmatched coverage and capacity to meet our customers most demanding mission requirements. Each day customers in defense and intelligence, public safety, civil agencies, map making and analysis, environmental monitoring, oil and gas exploration, infrastructure management, navigation technology, and providers of location-based services depend on DigitalGlobe data, information, technology and expertise to gain actionable insight.

DigitalGlobe is a registered trademark of DigitalGlobe.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained herein, including statements about our 2015 outlook and in the management quotation, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements relate to future events or future financial performance. We generally identify forward-looking statements by terminology such as may, will, should, expects, plans, anticipates, could, intends, target, projects, contemplates, believes, estimates, predicts, potential, continue or looks forward to or the negative of these terms or other similar words, although not all forward-looking statements contain these words.

Any forward-looking statements are based upon our historical performance and on our current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions. A number of important factors could cause our actual results or performance to differ materially from those indicated by such forward-looking statements, including: the loss, reduction or change in terms of any of our primary contracts or...


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