DigitalGlobe Reports Third Quarter 2013 Results

EBITDA excludes interest income, interest expense and income taxes 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.

Adjusted EBITDA further adjusts EBITDA to exclude restructuring costs, acquisition costs and integration costs as these are non-core items. Restructuring costs are costs incurred to realize efficiencies from the GeoEye acquisition, such as reducing excess workforce, consolidating facilities and systems, and relocating ground terminals. Acquisition costs are costs incurred to effect the acquisition, such as advisory, legal, accounting, consulting and other professional fees. Integration costs consist primarily of professional fees incurred to assist us with system and process improvements associated with integrating operations. Adjusted EBITDA margin is calculated by divided Adjusted EBITDA by U.S. GAAP net revenue.

We use EBITDA and Adjusted EBITDA in conjunction with traditional U.S. GAAP operating performance measures as part of our overall assessment of our performance and we do not place undue reliance on measures as our only measures of operating performance. EBITDA and Adjusted EBITDA should not be considered as substitutes for other measures of financial performance reported in accordance with U.S. GAAP.

                                                                            
                                                                            
                             DigitalGlobe, Inc.                             
         Unaudited Condensed Consolidated Statements of Operations          
                                                                            
                                                For the three months ended  
                                                       September 30,        
                                               ---------------------------- 
(in millions, except per share data)                2013           2012     
---------------------------------------------- -------------  ------------- 
Revenue                                        $       164.8  $       107.2 
Costs and expenses:                                                         
  Cost of revenue, excluding depreciation and                               
   amortization                                         46.7           21.5 
  Selling, general and administrative                   60.6           40.1 
  Depreciation and amortization                         59.4           28.9 
  Restructuring charges                                  3.1              - 
                                               -------------  ------------- 
(Loss) income from operations                           (5.0)          16.7 
  Loss from early extinguishment of debt                   -              - 
  Other income (expense), net                            0.1           (0.7)
  Interest expense, net                                 (0.7)          (1.9)
                                               -------------  ------------- 
(Loss) income before income taxes                       (5.6)          14.1 
  Income tax benefit (expense)                           3.8           (5.6)
                                               -------------  ------------- 
Net (loss) income                                                      (1.8)                      8.5  
Preferred  stock  dividends                                                              (1.0)                        --  
                                                                                              -------------    -------------  
Net  (loss)  income  less  preferred  stock                                                                            
  dividends                                                                                            (2.8)                      8.5  
Income  allocated  to  participating  securities                            --                          --  
                                                                                              -------------    -------------  
Net  (loss)  income  available  to  common                                                                              
  stockholders                                                                    $                (2.8)  $                  8.5  
                                                                                              =============    =============  
                                                                                                                                                        
(Loss)  earnings  per  share:                                                                                                    
    Basic  (loss)  earnings  per  share                            $              (0.04)  $                0.18  
                                                                                              =============    =============  
    Diluted  (loss)  earnings  per  share                        $              (0.04)  $                0.18  
                                                                                              =============    =============  
Weighted  average  common  shares  outstanding:                                                                  
    Basic                                                                                                  74.5                      46.2  
                                                                                              =============    =============  
    Diluted                                                                                              74.5                      46.5  
                                                                                              =============    =============  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                          DigitalGlobe,  Inc.                                                          
                  Reconciliation  Net  Income  (Loss)  EBITDA  and  Adjusted  EBITDA                
                                                                                                                                                        
                                                                                                  For  the  three  months  ended  
                                                                                                                September  30,              
                                                                                                ----------------------------
(in  millions)                                                                                2013                      2012        
                                                                                                -------------    -------------
Net  (loss)  income                                                              $                (1.8)  $                  8.5
Depreciation  and  amortization                                                        59.4                      28.9
Interest  expense,  net                                                                          0.7                        1.9
Income  tax  expense  (benefit)                                                          (3.8)                      5.6
                                                                                                -------------    -------------
EBITDA                                                                                                      54.5                      44.9
Loss  from  early  extinguishment  of  debt                                          --                          --
Restructuring  charges  (1)                                                                  3.1                          --
Acquisition  costs  (1)                                                                            --                        7.5
Integration  costs  (1)                                                                          8.0                          --
                                                                                                -------------    -------------
Adjusted  EBITDA                                                                  $                65.6    $                52.4
                                                                                                =============    =============
                                                                                                                                                        
(1)  Restructuring,  acquisition  and  integration  costs  consist  of  charges          
        related  to  the  combination  with  GeoEye.                                                                  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                          DigitalGlobe,  Inc.                                                          
                            Unaudited  Condensed  Consolidated  Balance  Sheets                              
                                                                                                                                                        
                                                                                          September  30,        December  31,    
(in  millions,  except  par  value)                                      2013                        2012            
--------------------------------------------  --------------    --------------  
ASSETS                                                                                                                                            
CURRENT  ASSETS:                                                                                                                          
Cash  and  cash  equivalents                                        $                256.0    $                246.2  
Restricted  cash                                                                                16.6                          3.8  
Accounts  receivable,  net  of  allowance  for                                                                      
  doubtful  accounts  of  $3.2  and  $2.9,                                                                                
  respectively                                                                                    90.3                        67.0  
Prepaid  and  current  assets                                                          27.6                        18.6  
Deferred  taxes                                                                                  70.7                        43.9  
                                                                                          --------------    --------------  
    Total  current  assets                                                                461.2                      379.5  
Property  and  equipment,  net  of  accumulated                                                                    
  depreciation  of  $831.2  and  $676.2,                                                                                  
  respectively                                                                              2,162.2                  1,115.2  
Goodwill                                                                                            453.1                          8.7  
Intangible  assets,  net  of  accumulated                                                                              
  amortization  of  $6.1  and  $0,  respectively                          38.5                              -  
Aerial  image  library,  net  of  accumulated                                                                        
  amortization  of  $39.3  and  $33.4,                                                                                      
  respectively                                                                                    11.0                        16.4  
Long-term  restricted  cash                                                              6.7                          8.3  
Long-term  deferred  contract  costs                                            46.8                        37.3  
Other  assets                                                                                      41.0                        12.1  
                                                                                          --------------    --------------  
    Total  assets                                                              $            3,220.5    $            1,577.5  
                                                                                          ==============    ==============  
LIABILITIES  AND  STOCKHOLDERS'  EQUITY                                                                                
CURRENT  LIABILITIES:                                                                                                                
Accounts  payable                                                          $                  16.3    $                  10.2  
Current  portion  of  long-term  debt                                              5.5                          5.0  
Other  accrued  liabilities                                                            74.3                        56.3  
Current  portion  of  deferred  revenue                                      101.2                        42.9  
                                                                                          --------------    --------------  
    Total  current  liabilities                                                      197.3                      114.4  
Deferred  revenue                                                                            375.9                      386.8  
Long-term  debt,  net  of  discount                                          1,138.4                      478.6  
Long-term  deferred  tax  liability,  net                                  142.4                        55.6  
Other  liabilities                                                                              2.3                          2.7  
                                                                                          --------------    --------------  
    Total  liabilities                                                    $            1,856.3    $            1,038.1  
                                                                                          --------------    --------------  
COMMITMENTS  AND  CONTINGENCIES                                                                                              
STOCKHOLDERS'  EQUITY:                                                                                                              
Preferred  stock,  $0.001  par  value;  24.0                                                                          
  shares  authorized;  no  shares  issued  and                                                                        
  outstanding  at  September  30,  2013  and                                                                            
  December  31,  2012                                                                                -                              -  
Series  A  convertible  preferred  stock,  $0.001                                                                
  par  value,  0.08  shares  authorized;  0.08                                                                        
  issued  and  outstanding  at  September  30,                                                                        
  2013;  and  no  shares  authorized,  issued  and                                                                  
  outstanding  at  December  31,  2012                                                  -                              -  
Common  stock;  $0.001  par  value;  250.0  shares                                                                
  authorized;  75.4  shares  issued  and  75.2                                                                        
  shares  outstanding  at  September  30,  2013;                                                                    
  and  47.2  shares  issued  and  47.1  outstanding                                                                
  at  December  31,  2012                                                                      0.2                          0.2  
Treasury  stock,  at  cost;  0.2  shares  at                                                                            
  September  30,  2013  and  0.1  shares  at                                                                              
  December  31,  2012                                                                          (3.2)                      (2.0)
Additional  paid-in  capital                                                    1,453.2                      543.8  
Accumulated  deficit                                                                      (86.0)                      (2.6)
                                                                                          --------------    --------------  
    Total  stockholders'  equity                                                1,364.2                      539.4  
                                                                                          --------------    --------------  
    Total  liabilities  and  stockholders'  equity  $            3,220.5    $            1,577.5  
                                                                                          ==============    ==============  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                          DigitalGlobe,  Inc.                                                          
                  Unaudited  Condensed  Consolidated  Statements  of  Cash  Flows                    
                                                                                                                                                        
                                                                                                For  the  nine  months  ended      
                                                                                                              September  30,                
                                                                                              ----------------------------  
(in  millions)                                                                              2013                      2012          
----------------------------------------------  -------------    -------------  
CASH  FLOWS  FROM  OPERATING  ACTIVITIES:                                                                              
Net  (loss)  income                                                            $              (83.4)  $                21.9  
Adjustments  to  reconcile  net  income  (loss)  to                                                              
  net  cash  provided  by  operating  activities:                                                                  
    Depreciation  and  amortization  expense                                165.7                      86.5  
    Amortization  of  aerial  image  library,                                                                          
      deferred  contract  costs  and  lease  incentive                    12.6                      15.1  
    Non-cash  stock  compensation  expense                                      19.9                        7.2  
    Amortization  of  debt  issuance  costs  and                                                                      
      accretion  of  debt  discount                                                        3.6                        2.8  
    Deferred  income  taxes                                                                (38.1)                    15.0  
    Write-off  of  debt  issuance  costs  and  debt                                                                  
      discounts                                                                                        12.8                            -  
    Other                                                                                                  (0.3)                      1.1  
Changes  in  working  capital,  net  of  assets                                                                      
  acquired  and  liabilities  assumed  in  business                                                              
  combinations:                                                                                                                            
    Accounts  receivable,  net                                                            15.8                      (9.1)
    Other  current  and  non-current  assets                                      3.1                      (9.5)
    Accounts  payable                                                                            (3.4)                    (3.1)
    Accrued  liabilities                                                                    (37.4)                    (0.5)
    Deferred  revenue                                                                            35.3                      63.2  
    Deferred  contract  costs                                                            (16.5)                    (0.5)
    Payment  of  2011  Senior  Secured  debt  discount                  (13.8)                          -  
                                                                                              -------------    -------------  
Net  cash  flows  provided  by  operating                                                                                
  activities                                                                                          75.9                    190.1  
                                                                                              -------------    -------------  
CASH  FLOWS  FROM  INVESTING  ACTIVITIES:                                                                              
    Construction  in  progress  additions                                    (198.9)                (152.8)
    Acquisition  of  businesses,  net  of  cash                                                                        
      acquired                                                                                      (524.0)                          -  
    Other  property  and  equipment  additions                              (12.7)                    (7.8)
    Investment  in  joint  venture                                                            -                      (0.3)
    Decrease  in  restricted  cash                                                        4.7                        6.9  
                                                                                              -------------    -------------  
Net  cash  flows  used  in  investing  activities                      (730.9)                (154.0)
                                                                                              -------------    -------------  
CASH  FLOWS  FROM  FINANCING  ACTIVITIES:                                                                              
    Proceeds  from  issuance  of  debt                                          1,150.0                            -  
    Repayment  of  debt                                                                      (483.9)                    (3.8)
    Preferred  stock  dividend  payment                                            (2.0)                          -  
    Proceeds  from  exercise  of  stock  options                              36.9                        2.5  
    Tax  benefit  from  the  exercise  of  stock                                                                        
      options                                                                                                  -                        0.5  
    Payment  of  debt  issuance  costs                                              (36.2)                          -  
                                                                                              -------------    -------------  
Net  cash  flows  provided  by  (used  in)  financing                                                            
  activities                                                                                        664.8                      (0.8)
                                                                                              -------------    -------------  
Net  increase  in  cash  and  cash  equivalents                                9.8                      35.3  
Cash  and  cash  equivalents,  beginning  of  period                  246.2                    198.5  
                                                                                              -------------    -------------  
Cash  and  cash  equivalents,  end  of  period              $              256.0    $              233.8  
                                                                                              =============    =============  
SUPPLEMENTAL  CASH  FLOW  INFORMATION:                                                                                  
Cash  paid  for  interest,  net  of  capitalized                                                                    
  amounts  of  $32.6  and  $17.3,  respectively            $                      -    $                  4.8  
NON-CASH  INVESTING  AND  FINANCING  ACTIVITIES:                                                                
Changes  to  non-cash  property,  equipment  and                                                                  
  construction  in  progress  accruals,  including                                                              
  interest                                                                                              (5.0)                    10.1  
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)                          -  
                                                                                                                                                        
                                                                                                                                                        
 




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