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 and year ended December 31, 2019. All dollar amounts in
this press release are expressed in U.S. dollars, unless otherwise
noted.
Key points from the year include:
- Entered into a definitive agreement to sell our MDA business
for C$1.0 billion
- Issued $1.0 billion in 2023 Notes and completed the sale and
subsequent leaseback of our owned properties in Palo Alto,
California, the net proceeds of which were used to pay down
debt
- Consolidated revenues from continuing operations of $1,666
million
- Net income of $109 million
- Diluted income per share from continuing operations of
$1.38
- Adjusted EBITDA1 from continuing operations of $416 million and
Adjusted EBITDA1 margin of 25.0 percent
- Re-segmented our historical Imagery, Services, and Space
Systems segments into three reportable segments: Earth
Intelligence, Space Infrastructure and MDA
1 This is a non-GAAP financial measure. Refer to section
“Non-GAAP Financial Measures” in this earnings release.
“We made solid progress during the year in positioning Maxar for
sustained top and bottom-line growth, including efforts to reduce
debt and leverage levels, re-engineer the Space Infrastructure
business, position our Earth Intelligence 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, “The year ended with a flurry of activity,
including a sale leaseback of a facility in Palo Alto, California,
the refinancing of our nearer-term debt maturities, and the
announced divestiture of MDA, our Canadian subsidiary. We expect
these transactions to better align our debt maturities with cash
flow streams and to reduce both leverage and debt levels in the
near-term. The year also included several strategic wins across the
Company, including the Power Propulsion Element with NASA and two
GEO Comsats with commercial customers in our Space Infrastructure
segment, as well as a four-year contract for our Global-EGD
offering with the US government and several direct and rapid access
contracts with international allies in our Earth Intelligence
segment. Combined, these actions and business development successes
better position the Company for sustainable growth going
forward.”
“Full year results were largely consistent with expectations,”
stated Biggs Porter, Chief Financial Officer. “Adjusted EBITDA
benefited from recent restructuring and reshaping efforts in Space
Infrastructure, as well as growth in Earth Intelligence, while free
cash flow benefited from the timing of cash inflows and capital
expenditures. Our leverage and debt levels remain in line with
expectations and are expected to further improve with the closure
of the MDA divestiture later this year.”
In the fourth quarter of 2019, we entered into a definitive
agreement to sell MDA to a consortium of private investors led by
Northern Private Capital, for C$1 billion subject to customary
adjustments and regulatory approvals (“MDA Transaction”). We expect
to use the net proceeds to repay debt and improve our capital
structure to prioritize investments for growth in our core areas of
Earth Intelligence and Space Infrastructure. The MDA Transaction
includes all of MDA’s Canadian business, encompassing ground
stations, radar satellite products, robotics, defense and satellite
components, representing approximately 1,900 employees. As a result
of this announcement, this business, whose results were previously
in the MDA segment (described below), was classified as
discontinued operations. We expect the transaction to close in the
spring or early summer of 2020.
In December 2019, we issued $1.0 billion in principal amount of
9.75% Senior Secured Notes due 2023 (“2023 Notes”) in a private
placement to institutional buyers. The 2023 Notes were issued at a
price of 98% and bear interest at the rate of 9.75% per year,
payable semi-annually in cash in arrears. Interest payments will
commence in June 2020. The 2023 Notes are guaranteed on a senior
secured basis by each of our existing and future subsidiaries that
guarantees the Syndicated Credit Facility.
The proceeds from the 2023 Notes and the sale of our owned
properties in Palo Alto, California were used to repay the
outstanding borrowings under our existing senior secured first lien
Term A facility and the majority of the outstanding borrowings on
the Revolving Credit Facility.
In connection with Mr. Jablonsky’s appointment in January 2019
as President and Chief Executive Officer of Maxar, our Chief
Operating Decision Maker (“CODM”) also changed. During 2019, Mr.
Jablonsky rolled out a transformative plan to integrate, stabilize,
and position Maxar for future growth. As part of this plan, we
streamlined our operating structure to reflect a more efficient
model and integrated our existing business units so that they are
more aligned and collaborative. This resulted in a change in the
evaluation of our business by our CODM, which was completed in the
fourth quarter of 2019. The changes to our segments align our
business units to our future growth strategy. The CODM reviews
revenue and Adjusted EBITDA based on three reportable segments:
Earth Intelligence, Space Infrastructure and MDA. In connection
with the MDA Transaction discussed above, the MDA segment was
classified as discontinued operations as of the year ended December
31, 2019. The Earth Intelligence segment includes the financial
results of the legacy Imagery and Services segments, excluding the
legacy Canadian radar imagery business. The Space Infrastructure
segment includes the financial results of our legacy Space
Solutions business (previously referred to as Space Systems/Loral
LLC or SSL), which was included within our legacy Space Systems
segment. The MDA segment includes the financial results of the MDA
and legacy Canadian radar imagery business.
Total revenues from continuing operations decreased to $410
million from $418 million, or by $8 million, for the three months
ended December 31, 2019, compared to the same period of 2018. The
decrease in revenues was primarily driven by a net decrease in
revenues in the Space Infrastructure segment.
Total revenues from continuing operations decreased to $1,666
million from $1,804 million, or by $138 million, for the year ended
December 31, 2019, compared to the same period of 2018. The
decrease was primarily driven by a decrease in revenue in our Space
Infrastructure segment partially offset by an increase in revenue
in our Earth Intelligence segment.
For the year ended December 31, 2019, net income from continuing
operations increased to $83 million from a net loss of $873
million, or by $956 million, compared to the same period of 2018.
The increase is primarily driven by a decrease in impairment losses
of $635 million, a decrease in selling, general and administrative
expense of $121 million, a decrease in product and service costs of
$113 million and a decrease in depreciation and amortization
expense of $63 million. Additionally, we benefited from a satellite
insurance recovery of $183 million and an increase in gain on sale
of assets of $103 million.
For the fourth quarter of 2019, Adjusted EBITDA was $100 million
and Adjusted EBITDA as a percentage of consolidated revenues
(“Adjusted EBITDA margin percentage”) was 24.4%. This is compared
to Adjusted EBITDA of $70 million and Adjusted EBITDA margin
percentage of 16.7% for the fourth quarter of 2018. The increase
was driven largely by higher Adjusted EBITDA from the Earth
Intelligence and Space Infrastructure segments, partially offset by
higher corporate and other expenses.
We had total order backlog of $1.6 billion as of December 31,
2019 compared to $2.1 billion as at December 31, 2018. Backlog
decreased primarily due to declines in backlog in our Earth
Intelligence segment partially offset by an increase in our Space
Infrastructure segment backlog as a result of new awards during the
year. Earth Intelligence backlog declined primarily due to the
recognition of EnhancedView revenue during the year and the loss of
our WorldView-4 satellite. As of December 31, 2019 and December 31,
2018, our unfunded contract options totaled $1.4 billion and $1.2
billion, respectively.
Financial Highlights
In addition to results reported in accordance with U.S. GAAP,
the Company uses certain non-GAAP financial measures as
supplemental indicators of its financial and operating performance.
These non-GAAP financial measures include EBITDA and Adjusted
EBITDA. The Company believes these supplementary financial measures
reflect the Company’s ongoing business in a manner that allows for
meaningful period-to-period comparisons and analysis of trends in
its business.
Three months ended
Year ended
December 31,
December 31,
2019
2018
2019
2018
($ millions, except per share amounts)
Revenues
$
410
$
418
$
1,666
$
1,804
Income (loss) from continuing
operations
53
(485
)
83
(873
)
(Loss) income from discontinued
operations, net of tax
(10
)
(456
)
26
(377
)
Net income (loss)
43
(941
)
109
(1,250
)
EBITDA1
206
(803
)
707
(659
)
Adjusted EBITDA1
100
70
416
383
Diluted income (loss) per common
share:
Income (loss) from continuing
operations
$
0.87
$
(8.18
)
$
1.38
$
(15.03
)
(Loss) income from discontinued
operations, net of tax
(0.17
)
(7.69
)
0.43
(6.49
)
Diluted income (loss) per common share
$
0.70
$
(15.87
)
$
1.81
$
(21.52
)
Weighted average number of common shares
outstanding (millions):
Basic
59.8
59.0
59.6
58.1
Diluted
61.2
59.0
60.2
58.1
1 This is a non-GAAP financial measure.
Refer to section “Non-GAAP Financial Measures” in this earnings
release.
Revenues by segment were as follows:
Three months ended
Year ended
December 31,
December 31,
2019
2018
2019
2018
($ millions)
Revenues
Earth Intelligence
$
286
$
265
$
1,085
$
1,059
Space Infrastructure
153
175
706
823
Intersegment eliminations
(29
)
(22
)
(125
)
(78
)
Total revenues
$
410
$
418
$
1,666
$
1,804
The Company analyzes financial performance by segment, which
combine related activities within the Company.
Three months ended
Year ended
December 31,
December 31,
2019
2018
2019
2018
Adjusted EBITDA:
Earth Intelligence
$
154
$
120
$
548
$
516
Space Infrastructure
(19
)
(44
)
(17
)
(75
)
Intersegment eliminations
(9
)
—
(29
)
(9
)
Corporate and other expenses
(26
)
(6
)
(86
)
(49
)
Adjusted EBITDA1
$
100
$
70
$
416
$
383
1 This is a non-GAAP financial measure.
Refer to section “Non-GAAP Financial Measures” in this earnings
release.
Earth Intelligence
Three months ended
Year ended
December 31,
December 31,
2019
2018
2019
2018
($ millions)
Revenues
$
286
$
265
$
1,085
$
1,059
Adjusted EBITDA
$
154
$
120
$
548
$
516
Adjusted EBITDA margin percentage
53.8
%
45.3
%
50.5
%
48.7
%
Revenues from the Earth Intelligence segment increased to $286
million from $265 million, or by $21 million, for the three months
ended December 31, 2019, compared to the same period of 2018. The
increase was primarily driven by new contract awards and program
expansion on existing contracts with the U.S. government. These
increases were partially offset by the loss of WorldView-4
revenues.
Revenues from the Earth Intelligence segment increased to $1,085
million from $1,059 million, or by $26 million, for the year ended
December 31, 2019 compared to the same period in 2018. The increase
was primarily driven by new contract awards and expansion of
programs with the U.S. government of $63 million, partially offset
by a decrease of $36 million in revenues from our direct access
program primarily due to the loss of WorldView-4 revenues.
Adjusted EBITDA increased to $154 million from $120 million, or
by $34 million, for the three months ended December 31, 2019,
compared to the same period of 2018. The increase was primarily
driven by an increase in revenue of $21 million and an increase of
income related to our Vricon joint venture of $15 million. Adjusted
EBITDA was also impacted by a decrease in costs during the three
months ended December 31, 2019, partially offset by a decrease in
margins due to the loss of WorldView-4 revenues, which had higher
margins.
Adjusted EBITDA from the Earth Intelligence segment increased to
$548 million from $516 million, or by $32 million, for the year
ended December 31, 2019 compared to the same period in 2018. The
increase is primarily related to a decrease in selling, general and
administrative costs of $28 million partially related to headcount
reductions taken in the first half of the year and a shift of
certain functions to corporate, and an increase in equity in income
from our Vricon joint venture of $9 million. These increases were
partially offset by a net decrease in margins from our revenue
contracts, which were primarily driven by the loss of WorldView-4
revenues, which had higher margins.
Space Infrastructure
Three months ended
Year ended
December 31,
December 31,
2019
2018
2019
2018
($ millions)
Revenues
$
153
$
175
$
706
$
823
Adjusted EBITDA
$
(19
)
$
(44
)
$
(17
)
$
(75
)
Adjusted EBITDA Margin
(12.4
)%
(25.1
)%
(2.4
)%
(9.1
)%
Changes in revenues from year to year are influenced by the
size, timing and number of satellite contracts awarded in the
current and preceding years and the length of the construction
period for satellite contracts awarded. Revenues on satellite
contracts are recognized using the cost-to-cost method to determine
the percentage of completion over the construction period, which
typically range between 20 to 36 months and up to 48 months in
special situations. Adjusted EBITDA margins can vary from quarter
to quarter due to the mix of our revenues and changes in our
estimated costs to complete as our risks are retired and as our
estimated costs to complete are increased or decreased based on
contract performance.
Revenues from the Space Infrastructure segment decreased to $153
million from $175 million primarily as a result of the impact of
reduced volume in our geostationary satellite manufacturing
business (“GeoComm”) and an increase in estimated costs to complete
programs during the three months ended December 31, 2019 compared
to the same period in 2018. An increase in estimated costs to
complete directly impacts revenues, as revenues are recognized over
time under the cost-to-cost method. These decreases were partially
offset by increases in U.S. government programs year over year and
liquidated damages expense in 2018 which did not reoccur in
2019.
Revenues from the Space Infrastructure segment decreased to $706
million from $823 million, or by $117 million, for the year ended
December 31, 2019 compared to the same period in 2018. Revenues
decreased primarily as a result of the impact of reduced volume in
our GeoComm business and an increase in estimated costs to complete
programs. The reduced volume was a result of new business not fully
replacing existing backlog contracts that were completed during the
period
Adjusted EBITDA increased to a loss of $19 million from a loss
of $44 million, or by $25 million, for the three months ended
December 31, 2019, compared to the same period of 2018. The
increase in the Space Infrastructure segment is primarily related
to reduced research and development spend of $13 million, headcount
reductions from restructuring initiatives resulting in cost
reductions and the liquidated damages which did not reoccur in
2019. These increases were partially offset by decreases from the
effects of lower revenues and higher estimated costs to complete on
certain projects within the Space Infrastructure segment, including
higher costs related to the conversion of subcontract work
performed by our MDA business to fixed price.
Adjusted EBITDA from the Space Infrastructure segment was a loss
of $17 million compared to a loss of $75 million, or a change of
$58 million, for the year ended December 31, 2019 compared to the
same period in 2018. The decreased loss is primarily related to
reduced research and development spend of $72 million and headcount
reductions from restructuring initiatives resulting in cost
reductions and the impact of no new liquidated damages being
incurred compared to $28 million of liquidated damages in 2018.
These increases were partially offset by decreases from the effects
of lower revenues and higher estimated costs to complete on certain
projects along with losses incurred on developmental builds.
Corporate and other expenses
Corporate and other expenses include items such as corporate
office costs, regulatory costs, executive and director
compensation, foreign exchange gains and losses, retention costs,
and fees for legal and consulting services.
Corporate and other expenses increased to $26 million from $6
million, or by $20 million, for the three months ended December 31,
2019 compared to the same period in 2018. The increase was
primarily driven by a shift of certain functions to corporate and
other increases in selling, general and administrative expense and
an increase in retention costs related to the Space Infrastructure
segment of $7 million.
Corporate and other expenses increased to $86 million from $49
million, or by $37 million, for the year ended December 31, 2019
compared to the same period in 2018. The increase was primarily
driven by an increase in retention costs related to the Space
Infrastructure segment of $24 million and an increase as a result
of a shift of certain functions to corporate and other increases in
selling, general and administrative expense of approximately $12
million.
Intersegment eliminations
Intersegment eliminations are related to projects between our
segments, including WorldView Legion. Intersegment eliminations
have increased for the three months ended December 31, 2019
compared to the same period of 2018 primarily related to an
increase in intersegment activity.
MAXAR TECHNOLOGIES INC.
Consolidated Statements of Operations
(In millions, except per share
amounts)
Year Ended
December 31,
2019
2018
2017
Revenues:
Product
$
560
$
697
$
877
Service
1,106
1,107
380
Total revenues
$
1,666
$
1,804
$
1,257
Costs and expenses:
Product costs, excluding depreciation and
amortization
$
593
$
775
$
764
Service costs, excluding depreciation and
amortization
382
313
160
Selling, general and administrative
325
446
337
Depreciation and amortization
376
439
152
Impairment losses
14
586
—
Satellite insurance recovery
(183
)
—
—
Gain on sale of assets
(136
)
(33
)
—
Operating income (loss)
295
(722
)
(156
)
Interest expense, net
219
200
97
Other (income) expense, net
(1
)
1
(30
)
Income (loss) before taxes
77
(923
)
(223
)
Income tax expense (benefit)
5
(48
)
(168
)
Equity in (income) loss from joint
ventures, net of tax
(11
)
(2
)
1
Income (loss) from continuing
operations
83
(873
)
(56
)
Income (loss) from discontinued
operations, net of tax
26
(377
)
116
Net income (loss)
$
109
$
(1,250
)
$
60
Basic income (loss) per common share:
Income (loss) from continuing
operations
$
1.39
$
(15.03
)
$
(1.36
)
Income (loss) from discontinued
operations, net of tax
0.44
(6.49
)
2.82
Basic income (loss) per common share
$
1.83
$
(21.52
)
$
1.46
Diluted income (loss) per common
share:
Income (loss) from continuing
operations
$
1.38
$
(15.03
)
$
(1.36
)
Income (loss) from discontinued
operations, net of tax
0.43
(6.49
)
2.82
Diluted income (loss) per common share
$
1.81
$
(21.52
)
$
1.46
MAXAR TECHNOLOGIES INC.
Consolidated Balance Sheets
(In millions, except per share
amounts)
December 31,
December 31,
2019
2018
Assets
Current assets:
Cash and cash equivalents
$
59
$
19
Trade and other receivables, net
357
350
Inventory
20
29
Advances to suppliers
42
42
Prepaid and other current assets
32
35
Current assets held for sale
751
203
Total current assets
1,261
678
Non-current assets:
Orbital receivables
382
407
Property, plant and equipment, net
758
725
Intangible assets, net
991
1,204
Non-current operating lease assets
176
—
Goodwill
1,455
1,455
Other non-current assets
134
107
Non-current assets held for sale
—
482
Total assets
$
5,157
$
5,058
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
153
$
149
Accrued liabilities
130
124
Accrued compensation and benefits
93
80
Contract liabilities
271
332
Current portion of long-term debt
30
16
Current operating lease liabilities
40
—
Other current liabilities
49
27
Current liabilities held for sale
230
154
Total current liabilities
996
882
Non-current liabilities:
Pension and other postretirement
benefits
197
178
Contract liabilities
4
60
Operating lease liabilities
173
—
Long-term debt
2,915
3,027
Other non-current liabilities
110
186
Non-current liabilities held for sale
—
58
Total liabilities
4,395
4,391
Commitments and contingencies
Stockholders’ equity:
Common stock ($0.0001 par value, 240
million common shares authorized and 59.9 million outstanding at
December 31, 2019; nil par value, unlimited authorized common
shares and 59.4 million outstanding at December 31, 2018)
—
1,713
Additional paid-in capital
1,784
59
Accumulated deficit
(1,082
)
(1,188
)
Accumulated other comprehensive income
59
82
Total Maxar stockholders' equity
761
666
Noncontrolling interest
1
1
Total stockholders' equity
762
667
Total liabilities and stockholders'
equity
$
5,157
$
5,058
MAXAR TECHNOLOGIES INC.
Consolidated Statements of Cash Flows
(In millions)
Year Ended December
31,
2019
2018
2017
Cash flows provided by (used in):
Operating activities:
Net income (loss)
$
109
$
(1,250
)
$
60
Net (income) loss from discontinued
operations
(26
)
377
(116
)
Net income (loss) from continuing
operations
83
(873
)
(56
)
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Impairment losses including inventory
17
651
—
Depreciation and amortization
376
439
152
Amortization of debt issuance costs and
other noncash interest expense
11
9
3
Stock-based compensation expense
20
20
23
Loss from early extinguishment of debt
22
—
23
Gain on sale of assets
(136
)
(33
)
—
Deferred income tax expense (benefit)
—
(48
)
(169
)
Equity in (income) loss from joint
ventures, net of tax
(11
)
(2
)
1
Other
7
28
(5
)
Changes in operating assets and
liabilities:
Trade and other receivables
(20
)
(19
)
56
Accounts payables and accrued
liabilities
7
113
(7
)
Contract liabilities
(117
)
(158
)
(15
)
Other
(1
)
(13
)
50
Cash provided by operating activities -
continuing operations
258
114
56
Cash provided by operating activities -
discontinued operations
59
25
49
Cash provided by operating activities
317
139
105
Investing activities:
Purchase of property, plant and equipment
and development or purchase of software
(314
)
(206
)
(59
)
Sale of assets
280
68
—
Cash collected on note receivable
—
5
—
Cash paid for acquisition, net of tax
—
—
(2,273
)
Disposal of subsidiary and short-term
investments
—
4
—
Return of capital from discontinued
operations
28
—
—
Cash used in investing activities -
continuing operations
(6
)
(129
)
(2,332
)
Cash used in investing activities -
discontinued operations
(7
)
(21
)
(9
)
Cash used in investing activities
(13
)
(150
)
(2,341
)
Financing activities:
Net (payment) proceeds of revolving credit
facility
(595
)
—
3,160
Net proceeds from issuance of 2023 Notes
and other long-term debt
980
104
—
Repayments of long-term debt
(520
)
(24
)
(779
)
Payment of debt issuance costs
(4
)
(3
)
—
Refinancing fees paid to creditors
(20
)
—
(63
)
Repurchase of orbital receivables
(24
)
—
—
Settlement of securitization liability
(20
)
(15
)
(15
)
Proceeds from securitization of orbital
receivables
—
18
—
Payment of dividends
(2
)
(65
)
(47
)
Other
(3
)
—
1
Cash (used in) provided by financing
activities - continuing operations
(208
)
15
2,257
Cash used in financing activities -
discontinued operations
(30
)
(2
)
(22
)
Cash (used in) provided by financing
activities
(238
)
13
2,235
Increase in cash, cash equivalents, and
restricted cash
66
2
(1
)
Effect of foreign exchange on cash, cash
equivalents, and restricted cash
—
(1
)
4
Cash, cash equivalents, and restricted
cash, beginning of year
43
42
39
Cash, cash equivalents, and restricted
cash, end of year
$
109
$
43
$
42
Reconciliation of cash flow
information:
Cash and cash equivalents
$
105
$
35
$
19
Restricted cash included in prepaid and
other current assets
1
7
6
Restricted cash included in other
non-current assets
3
1
17
Total cash, cash equivalents, and
restricted cash
$
109
$
43
$
42
NON-GAAP FINANCIAL MEASURES
In addition to results reported in accordance with U.S. GAAP, we
use certain non-GAAP financial measures as supplemental indicators
of our financial and operating performance. These non-GAAP
financial measures include EBITDA and Adjusted EBITDA.
We define EBITDA as earnings before interest, taxes,
depreciation and amortization, and Adjusted EBITDA as EBITDA
adjusted for certain items affecting comparability as specified in
the calculation. Certain items affecting comparability include
restructuring, impairments, satellite insurance recovery, gain on
sale of assets, CEO severance and transaction and integration
related expense. Transaction and integration related expense
includes costs associated with de-leveraging activities,
acquisitions and dispositions and the integration of acquisitions.
Management believes that exclusion of these items assists in
providing a more complete understanding of our underlying results
and trends, and management uses these measures along with the
corresponding U.S. GAAP financial measures to manage our business,
evaluate our performance compared to prior periods and the
marketplace, and to establish operational goals. Adjusted EBITDA is
a measure being used as a key element of our incentive compensation
plan. The Syndicated Credit Facility also uses Adjusted EBITDA in
the determination of our debt leverage covenant ratio. The
definition of Adjusted EBITDA in the Syndicated Credit Facility
includes a more comprehensive set of adjustments.
We believe that these non-GAAP measures, when read in
conjunction with our U.S. GAAP results, provide useful information
to investors by facilitating the comparability of our ongoing
operating results over the periods presented, the ability to
identify trends in our underlying business, and the comparison of
our operating results against analyst financial models and
operating results of other public companies.
EBITDA and Adjusted EBITDA are not recognized terms under U.S.
GAAP and may not be defined similarly by other companies. EBITDA
and Adjusted EBITDA should not be considered alternatives to net
(loss) income as indications of financial performance or as
alternate to cash flows from operations as measures of liquidity.
EBITDA and Adjusted EBITDA have limitations as an analytical tool
and should not be considered in isolation or as a substitute for
our results reported under U.S. GAAP. The table below reconciles
our net (loss) income to EBITDA and Adjusted EBITDA for the years
ended December 31, 2019, 2018 and 2017.
Three Months Ended December
31,
Year ended December
31,
2019
2018
2019
2018
2017
($ millions)
Net income (loss)
$
43
$
(941
)
$
109
$
(1,250
)
$
60
Income tax expense (benefit)
2
(12
)
5
(48
)
(168
)
Interest expense, net
71
47
219
200
97
Interest income
(2
)
—
(2
)
—
—
Depreciation and amortization
92
103
376
439
152
EBITDA
$
206
$
(803
)
$
707
$
(659
)
$
141
(Income) loss from discontinued
operations, net of tax
10
456
(26
)
377
(116
)
Restructuring
4
2
18
13
—
Transaction and integration related
expense
2
10
16
33
60
Impairment losses, including inventory
14
438
17
652
—
Satellite insurance recovery
—
—
(183
)
—
—
Gain on sale of assets
(136
)
(33
)
(136
)
(33
)
—
CEO severance
—
—
3
—
—
Adjusted EBITDA
$
100
$
70
$
416
$
383
$
85
Adjusted EBITDA:
Earth Intelligence
154
120
548
516
152
Space Infrastructure
(19
)
(44
)
(17
)
(75
)
(59
)
Intersegment eliminations
(9
)
—
(29
)
(9
)
—
Corporate and other expenses
(26
)
(6
)
(86
)
(49
)
(8
)
Adjusted EBITDA
$
100
$
70
$
416
$
383
$
85
Cautionary Note Regarding Forward-Looking Statements
Certain statements and other information included in this
release constitute "forward-looking information" or
"forward-looking statements" (collectively, "forward-looking
statements") under applicable securities laws. Statements including
words such as "may", "will", "could", "should", "would", "plan",
"potential", "intend", "anticipate", "believe", "estimate" or
"expect" and other words, terms and phrases of similar meaning are
often intended to identify forward-looking statements, although not
all forward-looking statements contain these identifying words.
Forward-looking statements involve estimates, expectations,
projections, goals, forecasts, assumptions, risks and
uncertainties, as well as other statements referring to or
including forward-looking information included in this
presentation.
Forward-looking statements are subject to various risks and
uncertainties which could cause actual results to differ materially
from the anticipated results or expectations expressed in this
presentation. As a result, although management of the Company
believes that the expectations and assumptions on which such
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because the
Company can give no assurance that they will prove to be correct.
The risks that could cause actual results to differ materially from
current expectations include, but are not limited to, the risk
factors and other disclosures about the Company and its business
included in the Company's continuous disclosure materials filed
from time to time with U.S. securities and Canadian regulatory
authorities, which are available online under the Company's EDGAR
profile at www.sec.gov, under the Company\'s SEDAR profile at
www.sedar.com or on the Company's website at www.maxar.com.
The forward-looking statements contained in this release are
expressly qualified in their entirety by the foregoing cautionary
statements. All such forward-looking statements are based upon data
available as of the date of this presentation or other specified
date and speak only as of such date. The Company disclaims any
intention or obligation to update or revise any forward-looking
statements in this presentation as a result of new information or
future events, except as may be required under applicable
securities legislation.
Unless stated otherwise or the context otherwise requires,
references to the terms “Company,” “Maxar,” “we,” “us,” and “our”
to refer collectively to Maxar Technologies Inc. and its
consolidated subsidiaries. Financial information and results of
operations presented in this Earnings Release for the periods prior
to January 1, 2019 relate to Maxar Technologies Ltd., our
predecessor issuer, and relate to Maxar Technologies Inc. after
January 1, 2019.
Investor/Analyst Conference Call
Maxar President and Chief Executive Officer, Dan Jablonsky, and
Executive Vice President and Chief Financial Officer, Biggs Porter,
will host an earnings conference call Monday, March 2, 2020,
reviewing the fourth quarter and year end results, followed by a
question and answer session. The call is scheduled to begin
promptly at 3:00 p.m. MT (5:00 p.m. ET). To participate, dial:
Participant Toll Free Dial-In: 1-866-211-3067 Participant
International Dial-In: 1-647-689-6610
The Conference Call will also be Webcast live and then archived
at:
http://investor.maxar.com/events-and-presentations/default.aspx
Telephone replay will be available from Monday, March 2, 2020 at
6:00 p.m. MT (8:00 p.m. ET) to Monday, March 16, 2020 at 9:59 p.m.
MT (11:59 p.m. ET) at the following numbers: Toll free North
America: 1-800-585-8367 International Dial-In: 1-416-621-4642
Passcode: 5783875#
About Maxar
Maxar is a leading provider of solutions in Earth intelligence
and Space infrastructure. We help government and commercial
customers to monitor, understand and navigate the changing planet;
deliver global broadband communications infrastructure; and explore
and advance the use of space. Our approach combines decades of deep
mission understanding and a proven commercial and defense
foundation to deliver our services with speed, scale and cost
effectiveness. Maxar’s 5,800 team members in more than 30 global
locations work to help our customers harness the potential of
space. After the MDA Transaction closes, we will have approximately
3,900 team members in 17 global locations. Maxar’s stock trades on
the New York Stock Exchange and Toronto Stock Exchange under the
symbol “MAXR”. For more information, visit www.maxar.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200302005966/en/
Jason Gursky VP Investor Relations 1-303-684-2207
jason.gursky@maxar.com Turner Brinton Media Relations
1-303-684-4545 turner.brinton@maxar.com
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