DigitalGlobe Reports Third Quarter 2012 Results

DigitalGlobe Reports Third Quarter 2012 Results 
Revenue Increases 31%  
EBITDA Margin Expands by 210 Basis Points  
EPS of 18 Cents up Nine-Fold Versus Year-Ago EPS of 2 cents  
Company Raises 2012 Revenue Growth Outlook 
LONGMONT, CO -- (Marketwire) -- 10/30/12 --  DigitalGlobe, Inc.
(NYSE: DGI), a leading global provider of high-resolution earth
imagery solutions, today reported financial results for the third
quarter ended September 30, 2012.  
Third quarter 2012 revenue was $107.2 million, up 31% compared with
the same period last year. Net income in the third quarter was $8.5
million, or $0.18 per share, compared with net income of $1.1
million, or $0.02 per share in third quarter 2011. Third quarter 2012
EBITDA was $44.9 million, delivering an EBITDA margin of 41.9%, up
approximately 210 basis points year over year compared with the third
quarter 2011 EBITDA margin of 39.8%. Third Quarter EBITDA margin
expanded compared with the year-ago period despite incurring $7.5
million of non-recurring costs in connection with the recently
announced combination with GeoEye. 
"We are delighted to deliver our fourth straight quarter of
double-digit revenue growth," said Jeffrey R. Tarr, President and
Chief Executive Officer. "Combined with continued strong growth in
our 12-month backlog, our results this quarter are evidence of our
progress transforming DigitalGlobe into a high-growth, scalable,
recurring revenue information business. In addition, we expect to
close our combination with GeoEye late this year or in the first
quarter of 2013. We look forward to delivering on the substantial
benefits of this strategic transaction to our customers, shareholders
and other key stakeholders." 
Third Quarter Business Highlights 


 
--  Defense & Intelligence segment revenue grew 24% to $81.1 million
    compared with the third quarter of 2011. Performance was driven by
    increased revenue related to the service level agreement (SLA) portion
    of EnhancedView and year-over-year growth of 44% to $8.2 million from
    value-added services.
--  Commercial segment revenue grew 57% to $26.1 million in the quarter
    compared with the prior-year period. Growth was broad based, driven by
    international civil government customers, growth from
    recurring-revenue con
tracts with location-based services customers and
    significant improvement within a variety of other industry-verticals.
--  The company completed the final phase of its remote ground terminal
    expansion ahead of schedule, adding three additional Remote Ground
    Terminals (RGTs) in the quarter. Combined with the four RGTs added
    during 2011, this now enables the company to recognize substantially
    all of the EnhancedView SLA cash payments into revenue.
--  Further diversifying the company's revenue base, it signed its sixth
    Direct Access (DAP) customer during the quarter to a multi-year
    contract that the company expects will begin generating revenue in the
    second half of 2013.
--  The company continued to expand its business globally through a number
    of new, renewed or expanded agreements with international civil
    governments. Through its relationship with a key value-added reseller
    in the region, the company was awarded a contract to provide imagery
    in support of India's infrastructure modernization effort. The company
    also continued to expand its location-based services business,
    fostering a new, multi-year relationship with AutoNavi, a top provider
    of digital map content and navigation solutions, through its joint
    venture with China Siwei.
--  Among its industry verticals customers, the company signed an
    agreement with SAAB to integrate its stereoscopic satellite imagery
    and temporal analysis data into SAAB's Vricon solution under a newly
    formed partnership. This agreement will enable faster creation of
    highly accurate, photo-realistic three-dimensional maps of specific
    global areas of interest, primarily for use by international
    governments. The company also signed an agreement to provide its
    Global Basemap solution to Pemex, in Mexico, under a multi-year,
    multi-million-dollar arrangement.
--  The company's 12-month backlog increased to $366.2 million, up 20%
    year over year, indicative of the company's success in shifting its
    revenue mix to a more visible recurring model.

  
2012 Outlook
 For the full year, the company now expects to report GAAP
revenue growth of 18-21% compared with 2011, an increase from its
previous expectation of approximately 16% growth. The company
continues to expect to achieve a full-year EBITDA margin of
approximately 46%, including the expected impact of non-recurring
expenses related to its planned business combination with GeoEye. The
company's 2012 capital expenditure estimate of approximately $200
million remains unchanged. 
Conference Call Information
 DigitalGlobe's management will host a
conference call tomorrow, October 31, 2012 at 1 p.m. ET to discuss
third quarter 2012 results.  
The conference call dial-in numbers are as follows: 
 U.S./Canada
dial-in: (866) 863-0053 
 International dial-in: (706) 758-7563  
Passcode: 47136736 
A replay of the call will be available through December 1, 2012 at
the following numbers:
 U.S./Canada dial-in: (855) 859-2056  
International dial-in: (404) 537-3406 
 Passcode: 47136736 
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 are available on the company's
website at www.digitalglobe.com.  
About DigitalGlobe
 DigitalGlobe is a leading global provider of
commercial high-resolution earth imagery products and services.
Sourced from our own advanced satellite constellation, our imagery
solutions support a wide variety of uses within defense and
intelligence, civil agencies, mapping and analysis, environmental
monitoring, oil and gas exploration, infrastructure management,
Internet portals and navigation technology. With our collection
sources and comprehensive ImageLibrary (containing more than one
billion square kilometers of earth imagery and imagery products) we
offer a range of on- and off-line products and services designed to
enable customers to easily access and integrate our imagery into
their business operations and applications. For more information,
visit www.digitalglobe.com. 
DigitalGlobe is a registered trademark of DigitalGlobe, Inc. 
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS 
DigitalGlobe Forward-Looking Statement 
 This document may contain or
incorporate 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 and generally can be identified by the use of
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. 
This document contains forward-looking statements relating to the
proposed strategic combination of DigitalGlobe and GeoEye pursuant to
a merger. All statements, other than historical facts, including
statements regarding the expected timing of the closing of the
transaction; the 
ability of the parties to complete the transaction
considering the various closing conditions; the expected benefits of
the transaction such as efficiencies, cost savings, tax benefits,
enhanced revenues and cash flow, growth potential, market profile and
financial strength; the competitive ability and position of the
combined company; and any assumptions underlying any of the
foregoing, are forward-looking statements. Such statements are based
upon current plans, estimates and expectations that are subject to
risks, uncertainties and assumptions. The inclusion of such
statements should not be regarded as a representation that such
plans, estimates or expectations will be achieved. Important factors
that could cause actual results to differ materially from such plans,
estimates or expectations include, among others, that (1) one or more
closing conditions to the transaction may not be satisfied or waived,
on a timely basis or otherwise, including that a governmental entity
may prohibit, delay or refuse to grant approval for the consummation
of the transaction or that the required approvals by DigitalGlobe and
GeoEye stockholders may not be obtained; (2) there may be a material
adverse change of GeoEye or the business of GeoEye may suffer as a
result of uncertainty surrounding the transaction; (3) the
anticipated benefits of the transaction may not be fully realized or
may take longer to realize than expected; (4) the costs or challenges
related to the integration of DigitalGlobe and GeoEye operations
could be greater than expected; (5) the ability of the combined
company to retain and hire key personnel and maintain relationships
with customers, suppliers or other business partners; (6) the impact
of legislative, regulatory, competitive and technological changes;
(7) the risk that the credit ratings of the combined company may be
different from what the companies expect; (8) other business effects,
including the effects of industry, economic or political conditions
outside of the companies' control, transaction costs and actual or
contingent liabilities; (9) the outcome of any legal proceedings
related to the transaction; and (10) other risk factors as detailed
from time to time in DigitalGlobe's and GeoEye's reports filed with
the Securities and Exchange Commission ("SEC"), including their
respective Annual Reports on Form 10-K for the year ended December
31, 2011 and Quarterly Reports on Form 10-Q for the quarters ended
March 31, 2012 and June 30, 2012, which are available on the SEC's
website (www.sec.gov). There can be no assurance that the strategic
combination will be completed, or if it is completed, that it will
close within the anticipated time period or that the expected
benefits of the strategic combination will be realized. 
Neither DigitalGlobe nor GeoEye undertakes any obligation to update
any forward-looking statement to reflect events or circumstances
after the date on which the statement is made or to reflect the
occurrence of unanticipated events. Readers are cautioned not to
place undue reliance on any of these forward-looking statements. 
Additional Information and Where to Find It
 In connection with the
proposed strategic combination, DigitalGlobe filed with the SEC a
Registration Statement on Form S-4 that includes a joint proxy
statement of DigitalGlobe and GeoEye that also constitutes 
a
preliminary prospectus of DigitalGlobe. The Form S-4 was declared
effective by the SEC on October 30, 2012. DigitalGlobe and GeoEye
filed with the SEC the definitive proxy statement/prospectus on
October 30, 2012 and began mailing the final joint proxy
statement/prospectus to their respective shareholders on or about
October 31, 2012. INVESTORS ARE URGED TO READ THE REGISTRATION
STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC,
INCLUDING THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS, BECAUSE
THEY CONTAIN IMPORTANT INFORMATION. Investors may obtain the
definitive joint proxy statement/prospectus, as well as other filings
containing information about DigitalGlobe and GeoEye, free of charge,
from the SEC's website (www.sec.gov). Investors may also obtain
DigitalGlobe's SEC filings in connection with the transaction, free
of charge, from DigitalGlobe's website (www.digitalglobe.com) under
the tab "Investors" and then under the heading "SEC Filings," or by
directing a request to DigitalGlobe, Inc., 1601 Dry Creek Drive,
Suite 260, Longmont, Colorado 80503, Attention: Corporate Secretary.
Investors may also obtain GeoEye's SEC filings in connection with the
transaction, free of charge, from GeoEye's website (www.geoeye.com)
under the tab "About Us - Investor Relations" and then under the
heading "SEC Filings," or by directing a request to GeoEye, Inc.,
2325 Dulles Corner Boulevard, Herndon, Virginia 20171, Attention:
Corporate Secretary. 
Participants in the Merger Solicitation
 The respective directors,
executive officers and employees of DigitalGlobe and GeoEye and other
persons may be deemed to be participants in the solicitation of
proxies in respect of the transaction. Information regarding the
interests of the participants in the proxy solicitation is contained
in the definitive joint proxy statement/prospectus. Information
regarding DigitalGlobe's directors and executive officers is
available in its definitive proxy statement filed with the SEC on
April 10, 2012, and information regarding GeoEye's directors and
executive officers is available in its definitive proxy statement
filed with the SEC on April 27, 2012. These documents can be obtained
free of charge from the sources indicated above. This communication
shall not constitute an offer to sell or the solicitation of an offer
to sell or the solicitation of an offer to buy any securities, nor
shall there be any sale of securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction. No offer of securities shall be made except by means of
a prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended. 
Non-GAAP Financial Measures
 EBITDA and Adjusted EBITDA are not
recognized terms under generally accepted accounting principles in
the United States, or U.S. GAAP and may not be defined similarly by
other companies. EBITDA and Adjusted EBITDA should not be considered
alternatives to net income, as indications of financial performance,
or as alternatives to cash flow from operations as measures of
liquidity. There are limitations to using non- U.S. GAAP financial
measures, including the difficulty associated with comparing
companies in different industries that use similar performance
measures whose calculations may differ from ours. 
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, excluding certain deal costs, is a measure 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
expenditu
res 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 U.S. 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 U.S. 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 expenses
associated with the GeoEye combination, non-cash stock compensation
expense and loss from joint venture, because these items are non-cash
expenses and expenses associated with the pending GeoEye combination,
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 U.S. 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 U.S. GAAP. 
FINANCIAL TABLES TO FOLLOW 


 
                                                                            
                             DigitalGlobe, Inc.                             
          Unaudited Condensed Consolidated Statements of Operations         
                       and Comprehensive Income (Loss)                      
                                                                            
                                 For the three months   For the nine months 
                                         ended                 ended        
                                     September 30,         September 30,    
                                 --------------------  -------------------- 
(in millions, except per share                 2011                  2011   
 data)                              2012     Revised      2012     Revised  
-------------------------------- ---------  ---------  ---------  --------- 
Revenue                          $   107.2  $    81.9  $   296.0  $   241.8 
Costs and expenses:                                                         
  Cost of revenue, excluding                                                
   depreciation and amortization      21.5       18.5       59.5       47.0 
  Selling, general and                                                      
   administrative                     40.1       30.8      103.4       95.2 
  Depreciation and amortization       28.9       29.1       86.5       87.5 
                                 ---------  ---------  ---------  --------- 
Income from operations                16.7        3.5       46.6       12.1 
  Other income (expense), net,                                              
   including loss from joint                                                
   venture                            (0.7)         -       (1.1)       0.2 
  Interest income (expense), net      (1.9)      (4.1)      (7.7)     (17.7)
                                 ---------  ---------  ---------  --------- 
Income (loss) before income                                                 
 taxes                                14.1       (0.6)      37.8       (5.4)
  Income tax (expense) benefit        (5.6)       1.7      (15.9)       4.3 
                                 ---------  ---------  ---------  --------- 
    Net income (loss)            $     8.5  $     1.1  $    21.9  $    (1.1)
                                 =========  =========  =========  ========= 
Comprehensive Income:                                                       
    Net income (loss)            $     8.5  $     1.1  $    21.9  $    (1.1)
                                 =========  =========  =========  ========= 
Earnings (loss) per share:                                                  
  Basic earnings (loss) per                                                 
   share                         $    0.18  $    0.02  $    0.48  $   (0.02)
                                 =========  =========  =========  ========= 
  Diluted earnings (loss) per                                               
   share                         $    0.18  $    0.02  $    0.47  
$   (0.02)
                                 =========  =========  =========  ========= 
Weighted average common shares                                              
 outstanding:                                                               
  Basic                               46.2       46.3       46.1       46.2 
                                 =========  =========  =========  ========= 
  Diluted                             46.5       46.7       46.3       46.8 
                                 =========  =========  =========  ========= 
(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     Nine months ended   
                                   September 30,          September 30,     
                               ---------------------  --------------------- 
                                             2011                   2011    
(in millions)                     2012    Revised(1)     2012    Revised(1) 
------------------------------ ---------  ----------  ---------  ---------- 
Net income (loss)              $     8.5  $      1.1  $    21.9  $     (1.1)
Depreciation and amortization       28.9        29.1       86.5        87.5 
Interest (income) expense, net       1.9         4.1        7.7        17.7 
Income tax expense (benefit)         5.6        (1.7)      15.9        (4.3)
                               ---------  ----------  ---------  ---------- 
EBITDA                         $    44.9  $     32.6  $   132.0  $     99.8 
Expenses associated with                                                    
 GeoEye combination                  7.5           -        9.7           - 
Non-cash stock compensation                                                 
 expense                             2.5         2.3        7.2        11.8 
EnhancedView deferred revenue        9.2        16.5       40.9        66.2 
EnhancedView outstanding                                                    
 invoices not yet paid by NGA        1.9         6.7        1.9         6.6 
Loss (gain) on disposition of                                               
 assets                              0.3        (0.5)       0.3        (0.5)
Loss from joint venture              0.4           -        0.8           - 
Amortization of pre-FOC                                                     
 payment related to NextView        (6.4)       (6.4)     (19.1)      (19.1)
                               ---------  ----------  ---------  ---------- 
Adjusted EBITDA                $    60.3  $     51.2  $   173.7  $    164.8 
                               =========  ==========  =========  ========== 
(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.                                                        

 
EBITDA and Adjusted EBITDA are not recognized terms under generally
accepted accounting principles (GAAP), in the United States and may
not be defined similarly by other companies. EBITDA and Adjusted
EBITDA should not be considered an alternative to net income, as an
indication of financial performance, or as an alternative to 
cash
flow from operations as a measure of liquidity. There are limitations
to using non-GAAP financial measures, including the difficulty
associated with comparing companies that use similar performance
measures whose calculations may differ from ours. EBITDA margin is
calculated by dividing EBITDA by GAAP revenue. For the third quarter
of 2012, Adjusted EBITDA margin is calculated by dividing Adjusted
EBITDA by the sum of GAAP revenue, plus $11.1 million of deferrals
related to the SLA portion of EnhancedView $7.5 million of expenses
related to the GeoEye combination, $0.3 million loss from the
disposition of assets, and $0.4 million loss from a joint venture,
less $6.4 million of amortized revenue related to NextView. For the
nine months ended September 30, 2012, Adjusted EBITDA margin is
calculated by dividing Adjusted EBITDA by the sum of GAAP revenue,
plus $42.8 million of deferrals related to the SLA portion of
EnhancedView, $9.7 million of expenses related to the GeoEye
combination, $0.3 million loss from the disposition of assets, and
$0.8 million loss from joint venture, less $19.1 million of amortized
revenue related to NextView. 


 
                                                                            
                             DigitalGlobe, Inc.                             
               Unaudited Condensed Consolidated Balance Sheets              
                                                                            
                                                September 30,  December 31, 
(in millions, except share data)                     2012          2011     
----------------------------------------------- -------------  ------------ 
ASSETS                                                                      
CURRENT ASSETS:                                                             
Cash and cash equivalents                       $       233.8  $      198.5 
Restricted cash                                           3.8           7.7 
Accounts receivable, net of allowance for                                   
 doubtful accounts of $2.5 and $3.6,                                        
 respectively                                            59.9          50.7 
Prepaid and current assets                               19.8          19.6 
Deferred taxes                                           65.5          65.1 
                                                -------------  ------------ 
  Total current assets                                  382.8         341.6 
Property and equipment, net of accumulated                                  
 depreciation of $648.4 and $563.9,                                         
 respectively                                         1,083.7       1,019.8 
Goodwill                                                  8.7           8.7 
Aerial image library, net of accumulated                                    
 amortization of $31.2 and $25.1, respectively           17.3          13.0 
Long-term restricted cash                                 6.9           9.8 
Long-term deferred contract costs                        37.6          44.7 
Other assets                                             12.0          14.0 
                                                -------------  ------------ 
  Total assets                                  $     1,549.0  $    1,451.6 
                                                =============  ============ 
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
CURRENT LIABILITIES:                                                        
Accounts payable                                $         5.5  $       19.7 
Accrued interest                                          0.2           0.2 
Current note payable                                      5.0           5.0 
Other accrued liabilities                                42.9          37.5 
Current portion of deferred revenue                      41.7          36.6 
                         
                       -------------  ------------ 
  Total current liabilities                              95.3          99.0 
Long-term accrued liability                                 -           1.4 
Deferred revenue                                        377.7         319.3 
Deferred lease incentive                                  2.4           3.3 
Long-term debt, net of discount                         479.4         481.6 
Long-term deferred tax liability, net                    75.5          59.6 
                                                -------------  ------------ 
  Total liabilities                             $     1,030.3  $      964.2 
                                                -------------  ------------ 
COMMITMENTS AND CONTINGENCIES                                               
STOCKHOLDERS' EQUITY:                                                       
Preferred stock, $0.001 par value; 24,000,000                               
 shares authorized; no shares issued and                                    
 outstanding at September 30, 2012 and December                             
 31, 2011                                                   -             - 
Common stock, $0.001 par value; 250,000,000                                 
 shares authorized; 47,098,743 shares issued                                
 and 46,992,363 shares outstanding at September                             
 30, 2012 and 46,386,646 shares issued and                                  
 46,320,471 shares outstanding at December 31,                              
 2011                                                     0.2           0.2 
Treasury stock, at cost; 106,580 shares at                                  
 September 30, 2012 and 66,175 shares at                                    
 December 31, 2011                                       (2.0)         (1.2)
Additional paid-in capital                              540.2         530.0 
Accumulated deficit                                     (19.7)        (41.6)
                                                -------------  ------------ 
  Total stockholders' equity                            518.7         487.4 
                                                -------------  ------------ 
  Total liabilities and stockholders' equity    $     1,549.0  $    1,451.6 
                                                =============  ============ 
                                                                            
                                                                            
                             DigitalGlobe, Inc.                             
               Condensed Consolidated Statements of Cash Flows              
                                                                            
                                                       For the nine months  
                                                             ended          
                                                          September 30,     
                                                                    2011    
(in millions)                                           2012       Revised  
---------------------------------------------------- ----------  ---------- 
CASH FLOWS FROM OPERATING ACTIVITIES:                                       
Net income (loss)                                    $     21.9  $     (1.1)
Adjustments to reconcile net income (loss) to net                           
 cash provided by operating activities:                                     
  Depreciation and amortization expense                    86.5        87.5 
  EnhancedView deferred revenue                            47.6        74.5 
  Recognition of pre-FOC payments                         (19.1)      (19.1)
  Amortization of aerial image library, deferred                            
   contract costs and lease incentive                      15.1         6.8 
  Non-cash stock compensation expense                       7.2  
      11.8 
  Amortization of debt issuance costs                       2.8         2.9 
  Loss (gain) on disposition of asset                       0.3        (0.5)
  Loss from joint venture                                   0.8           - 
  Deferred income taxes                                    15.0        (4.3)
Changes in working capital, net of investing                                
 activities:                                                                
  Accounts receivable, net                                 (9.1)        2.2 
  Prepaids and other assets                                (9.5)       (9.0)
  Accounts payable                                         (3.1)        3.6 
  Accrued liabilities                                      (0.5)       (3.3)
  Deferred contract costs                                  (0.5)       (3.3)
  Deferred revenue                                         34.7         7.1 
                                                     ----------  ---------- 
Net cash flows provided by operating activities           190.1       155.8 
                                                     ----------  ---------- 
CASH FLOWS FROM INVESTING ACTIVITIES:                                       
  Construction in progress additions                     (152.8)     (187.2)
  Other property, equipment and intangible additions       (7.8)       (5.2)
  Investment in joint venture                              (0.3)          - 
  Decrease in restricted cash                               6.9         4.2 
                                                     ----------  ---------- 
Net cash flows used in investing activities              (154.0)     (188.2)
                                                     ----------  ---------- 
CASH FLOWS FROM FINANCING ACTIVITIES:                                       
  Repayment of long-term debt                              (3.8)          - 
  Proceeds from exercise of stock options                   2.5         1.8 
  Tax b
enefit from exercise of stock options                0.5           - 
                                                     ----------  ---------- 
Net cash flows (used in) provided by financing                              
 activities                                                (0.8)        1.8 
                                                     ----------  ---------- 
Net increase (decrease) in cash and cash equivalents       35.3       (30.6)
Cash and cash equivalents, beginning of period            198.5       179.3 
                                                     ----------  ---------- 
Cash and cash equivalents, end of period                  233.8       148.7 
                                                     ==========  ========== 
SUPPLEMENTAL CASH FLOW INFORMATION:                                         
Interest capitalized                                 $     17.3  $     14.1 
NON-CASH INVESTING AND FINANCING ACTIVITIES:                                
Changes to non-cash construction in progress                                
 accruals, including interest                              10.1        12.2 

  
Contacts 
Investor Contact: 
David Banks
(303) 684-4210
ir@digitalglobe.com 
Media Contact: 
Robert Keosheyan
(303) 684-4742
rkeoshey@digitalglobe.com 
 
 
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