Maxar Technologies Reports Third Quarter 2019 Results

WESTMINSTER, Colo. — (BUSINESS WIRE) — November 4, 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 September 30, 2019. All dollar amounts in this press release are expressed in U.S. dollars.

Key points from the quarter include:

  • Consolidated revenues of $479 million
  • Net loss of $0.44 per share
  • Adjusted EBITDA1 of $128 million and Adjusted EBITDA1 margin of 26.7 percent

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

“We continued to make solid progress this quarter on our near-term priorities to position Maxar for sustained top and bottom-line growth, including efforts 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, “We recently signed a sale-lease back transaction on a facility in Palo Alto, California that we expect to reduce debt and leverage, and we garnered important wins in our Space Systems business, including initial work on Canadarm3 and the TEMPO instrument for NASA. We also saw solid bookings and revenue growth in our Imagery and Services segments, including a four-year contract award for our Global-EGD service, a program to support a GEOINT Cloud Architecture for US Air Force, and the addition of another country to the installed base for the Company’s Rapid and Direct Access Program.”

“Third quarter results were largely consistent with expectations,” stated Biggs Porter, Chief Financial Officer. “Adjusted EBITDA benefited from recent restructuring and reshaping efforts in Space Systems as well as growth in Services and Imagery. Our leverage and debt levels remain in-line with expectations and are expected to improve with the sale-lease back transaction on the Palo Alto facility.”

Total revenues decreased to $479 million from $509 million, or by $30 million, for the three months ended September 30, 2019, compared to the same period of 2018. The decrease in revenues was primarily driven by a $43 million decrease in the Space Systems segment. The decrease was partially offset by a $10 million increase in the Imagery segment and an $11 million increase in revenues in the Services segment.

For the three months ended September 30, 2019, net loss of $26 million compared to net loss of $289 million in the comparative period of 2018. The increase is primarily driven by impairment losses taken in the third quarter of 2018 that did not occur in 2019.

For the third quarter of 2019, Adjusted EBITDA was $128 million and Adjusted EBITDA as a percentage of consolidated revenues (“Adjusted EBITDA margin percentage”) was 26.7%. This is compared to Adjusted EBITDA of $105 million and Adjusted EBITDA margin percentage of 20.6% for the third quarter of 2018. The increase was driven largely by higher Adjusted EBITDA from the Space Systems and Imagery segments, partially offset by higher corporate and other expenses.

The Company had total order backlog of $2.2 billion as of September 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 September 30, 2019 and December 31, 2018 unfunded contract options totaled $1.4 billion and $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

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

($ millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

479

 

 

$

509

 

 

$

1,473

 

$

1,645

 

Net (loss) income

 

 

(26

)

 

 

(289

)

 

 

61

 

 

(314

)

Adjusted EBITDA 1

 

 

128

 

 

 

105

 

 

 

374

 

 

389

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share, diluted

 

$

(0.44

)

 

$

(4.88

)

 

$

1.02

 

$

(5.45

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding (millions) :

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

59.6

 

 

 

59.2

 

 

 

59.6

 

 

57.6

 

Diluted

 

 

59.6

 

 

 

59.2

 

 

 

60.0

 

 

57.6

 


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