Maxar Technologies Reports Second Quarter 2021 Results

WESTMINSTER, Colo. — (BUSINESS WIRE) — August 4, 2021 — 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, 2021. All dollar amounts in this press release are expressed in U.S. dollars, unless otherwise noted.

Key points from the quarter include:

  • Net income from continuing operations of $45 million
  • Diluted net income per share of $0.60
  • Consolidated revenues of $473 million
  • Adjusted EBITDA1 of $132 million

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

“We continued this quarter to make progress toward achieving our longer-term targets, including efforts to drive sustainable growth in both our Earth Intelligence and Space Infrastructure segments,” stated Dan Jablonsky, President and Chief Executive Officer. “In Earth Intelligence, we received multiple awards from the US and international government customers, including programs supporting persistent change monitoring and space domain awareness, as well as imagery and 3D data sales. Importantly, early in the third quarter, we received our first commitment for Legion capacity from a US ally and our 11th renewal of the Enhanced View program for the period starting September 1st of this year. Commercial awards included a data sale to a large social media company. In Space Infrastructure, wins in the quarter included a contract modification with NASA for work on the Power Propulsion Element and study contracts for National Security classified work as we continue to look to shape new programs and further diversify the business. Also, as announced earlier today, we received an award from Sirius XM to produce their XM-9 satellite.”

“We generated solid year-over-year revenue growth driven by performance on previously awarded programs in Space Infrastructure and robust book-ship activity in Earth Intelligence. Margin performance was also solid given improving execution and mix. Year-to-date free cash flow is exceeding our internal expectations even though this quarter was negatively impacted by the timing of receipts that were collected early in the current quarter,” stated Biggs Porter, Chief Financial Officer. “We are maintaining 2021 guidance for all metrics, including revenue, Adjusted EBITDA and cash flow.”

Total revenues increased to $473 million from $439 million, or by $34 million, for the three months ended June 30, 2021, compared to the same period in 2020. The increase was primarily driven by a $33 million increase in revenue in our Space Infrastructure segment. We also had an increase in revenue in our Earth Intelligence segment; however, the increase was partially offset by a $30 million decrease in the recognition of deferred revenue related to the EnhancedView Contract.

For the three months ended June 30, 2021, our net income from continuing operations was $45 million compared to $0 million for the three months ended June 30, 2020. The increase was primarily driven by an increase in revenue of $34 million as mentioned above and a $15 million decrease in interest on long-term debt primarily driven by lower principal balances on Term Loan B and the 2023 Notes due to a repayment made on Term Loan B in the second quarter of 2020 as well as a redemption made on the 2023 Notes in the first quarter of 2021. The increase was also driven by a $10 million income tax benefit, primarily due to a change in the 2020 estimated Base Erosion and Anti-Abuse Tax driven by a change in tax strategy enabled by a reduction in forecasted interest expense and tax on foreign earnings. This was partially offset by an increase in product and service costs of $25 million, driven by an increase in product costs within our Space Infrastructure segment and an increase in service costs within our Earth Intelligence segment.

For the three months ended June 30, 2021, Adjusted EBITDA was $132 million and Adjusted EBITDA margin was 27.9%. This is compared to Adjusted EBITDA of $138 million and Adjusted EBITDA margin of 31.4% for the same period of 2020. The decrease was primarily driven by lower Adjusted EBITDA from the Earth Intelligence and higher corporate and other expenses, partially offset by higher Adjusted EBITDA from the Space Infrastructure segment.

We had total order backlog of $1.5 billion as of June 30, 2021 compared to $1.9 billion as of December 31, 2020. The decrease in backlog was driven by decreases in both the Earth Intelligence and Space Infrastructure segments. Our unfunded contract options totaled $0.9 billion as of June 30, 2021 and December 31, 2020, respectively.

Financial Highlights

In addition to results reported in accordance with U.S. GAAP, we use certain non-GAAP financial measures as supplemental indicators of its financial and operating performance. These non-GAAP financial measures include EBITDA and Adjusted EBITDA. We believe these supplementary financial measures reflect our 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,

 

 

2021

 

 

2020

 

 

2021

 

 

 

2020

 

($ millions, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

Revenues

$

473

 

$

439

 

$

865

 

 

$

820

 

Income (loss) from continuing operations

 

45

 

 

 

 

(39

)

 

 

(78

)

Income from discontinued operations, net of tax

 

 

 

306

 

 

 

 

 

336

 

Net income (loss)

$

45

 

$

306

 

$

(39

)

 

$

258

 

EBITDA 1

 

132

 

 

441

 

 

199

 

 

 

533

 

Adjusted EBITDA 1

 

132

 

 

138

 

 

199

 

 

 

215

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

$

0.60

 

$

 

$

(0.57

)

 

$

(1.29

)

Income from discontinued operations, net of tax

 

 

 

4.94

 

 

 

 

 

5.56

 

Diluted net income (loss) per common share

$

0.60

 

$

4.94

 

$

(0.57

)

 

$

4.27

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding (millions) :

 

 

 

 

 

 

 

 

 

 

 

Basic

 

72.2

 

 

60.6

 

 

68.5

 

 

 

60.4

 

Diluted

 

74.7

 

 

62.0

 

 

68.5

 

 

 

60.4

 


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