Maxar Technologies Reports Second Quarter 2019 Results

WESTMINSTER, Colo. — (BUSINESS WIRE) — August 6, 2019 — Maxar Technologies (NYSE: MAXR) (TSX: MAXR) (“Maxar” or the “Company”), a trusted partner and innovator in Earth Intelligence and Space Infrastructure, today announced financial results for the quarter ended June 30, 2019. All dollar amounts in this press release are expressed in U.S. dollars.

Key points from the quarter include:

  • Consolidated revenues of $490 million
  • Net income of $2.45 per share
  • Adjusted EBITDA1 of $129 million and Adjusted EBITDA1 margin of 26 percent

1

This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in this earnings release

“We made solid progress this quarter on our near-term priorities to position Maxar for sustained top and bottom-line growth. We continued to track options to reduce debt and leverage levels, re-engineer the Space Solutions business, position our Imagery, Services, and MDA businesses for long-term growth, and create a leaner, more agile organization with a reduced cost structure,” stated Dan Jablonsky, President and Chief Executive Officer.

Jablonsky continued, “This quarter, we garnered some important wins, including NASA’s Power Propulsion Element for the Artemis program, we signed a study contract with National Reconnaissance Office to assess Maxar’s current and future capabilities and added an additional country to the installed base for the Company’s Rapid Access Program. Our Services business generated a greater than one book-to-bill again this quarter, and MDA started work on the Canadian Surface Combatant program and signed an award with the Canadian government for flight-ready repeaters that will be launched on the US Air Force’s GPS III satellites. Finally, we continued to advance our organizational re-engineering to strengthen our financial position and drive long-term value for our shareholders and customers.”

“Second quarter results were largely consistent with expectations,” stated Biggs Porter, Chief Financial Officer. “Cash flows and earnings benefited from the recovery of insurance proceeds related to the loss of the World-View 4 while Adjusted EBITDA experienced quarter over quarter growth given recent restructuring efforts and improved profitability.”

Total revenues decreased to $490 million from $579 million, or by $89 million, for the three months ended June 30, 2019, compared to the same period of 2018. The decrease in revenues was primarily driven by a $73 million decrease in the Space Systems segment and an $11 million decrease in the Imagery segment. These decreases were partially offset by an $8 million increase in revenues in the Services segment.

For the three months ended June 30, 2019, net income of $146 million compared to net loss of $40 million in the comparative period of 2018. The increase is primarily driven by the receipt of satellite insurance proceeds in the second quarter of 2019.

For the second quarter of 2019, Adjusted EBITDA was $129 million and Adjusted EBITDA as a percentage of consolidated revenues (“Adjusted EBITDA margin percentage”) was 26.3%. This is compared to Adjusted EBITDA of $133 million and Adjusted EBITDA margin percentage of 22.9% for the second quarter of 2018. The decline was driven largely by lower Adjusted EBITDA from the Imagery segment and higher corporate and other unallocated expenses, partially offset by an increase in the Space Systems segment.

The Company had total order backlog of $2.2 billion as of June 30, 2019 compared to $2.4 billion as at December 31, 2018. Backlog decreased primarily due to declines in backlog in our Imagery segment partially offset by an increase in our Space Systems segment and Services segment backlog as a result of new awards during the quarter. Imagery backlog declined primarily due to the recognition of EnhancedView revenue during the quarter and the loss of our WorldView-4 satellite. As of June 30, 2019 and December 31, 2018 unfunded contract options totaled $1.2 billion, respectively.

Financial Highlights

In addition to results reported in accordance with U.S. GAAP, the Company uses certain non-GAAP financial measures as supplemental indicators of its financial and operating performance. These non-GAAP financial measures include EBITDA and Adjusted EBITDA. The Company believes these supplementary financial measures reflect the Company’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Six months ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

2018

 

 

2019

 

2018

($ millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

490

$

579

 

 

$

994

$

1,136

 

Net income (loss)

 

 

146

 

(40

)

 

 

87

 

(25

)

Adjusted EBITDA 1

 

 

129

 

133

 

 

 

246

 

284

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share, diluted

 

$

2.45

$

(0.70

)

 

$

1.46

$

(0.44

)

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding (millions) :

 

 

 

 

 

 

 

 

 

 

Basic

 

 

59.6

 

57.2

 

 

 

59.6

 

56.8

 

Diluted

 

 

59.6

 

57.2

 

 

 

59.6

 

56.8

 

1

This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in this earnings release.


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