- Revenue decline of ~6.5% (pro forma)
- Adjusted Segment EBITDA margins of ~32% (excluding corporate expense)
- Adjusted EPS of $4.05 to $4.10
- Adjusted operating cash flow of $300 million to $400 million
- Capital expenditures of $300 million to $315 million
Total Company revenues on a pro forma basis are now expected to decline roughly 6.5% from 2017 on a lower expected outlook in the Company's Space Systems and Services Segment. The outlook for Space Systems has been impacted by lower GEO Comsats' order activity and higher than expected costs as a result of supplier performance issues and delays, lower overhead absorption and lower labor productivity. The Services outlook has been impacted by contract transitions with the US government and lower volume levels recognized on sub-contractor work. Segment EBITDA margins are now expected at roughly 32% and have been impacted by lower volumes and higher costs in the Space Systems segment. Adjusted EPS is now expected in a range of $4.05 to $4.10 and has been primarily impacted by the profit outlook for the Space Systems segment. There has been no change to the Company's outlook for adjusted operating cash flow of $300 million to $400 million. Expected capital expenditures are now in a range from $300 million to $315 million and lower than the previous outlook.
Segment Results
The Company analyzes financial performance by segment, which combine related activities within the Company.
|
|
|
| Reported |
|
| Reported | ||||||
|
|
|
| Three months ended |
|
| Nine months ended | ||||||
|
|
|
| September 30, |
|
| September 30, | ||||||
|
|
|
| 2018 |
|
| 2017 |
|
| 2018 |
|
| 2017 |
($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Space Systems |
| $ | 262.5 |
| $ | 297.8 |
| $ | 885.8 |
| $ | 977.5 |
Imagery |
|
| 209.2 |
|
| 11.8 |
|
| 632.6 |
|
| 30.4 |
Services |
|
| 61.8 |
|
| 29.0 |
|
| 198.1 |
|
| 81.6 |
Intersegment eliminations |
|
| (25.3) |
|
| (1.2) |
|
| (71.7) |
|
| (3.4) |
Total Revenue |
|
| 508.2 |
|
| 337.4 |
|
| 1,644.8 |
|
| 1,086.1 |
Adjusted EBITDA1 |
|
|
|
|
|
|
|
|
|
|
|
|
Space Systems |
| $ | 19.0 |
| $ | 61.2 |
| $ | 115.8 |
| $ | 184.8 |
| Imagery |
|
| 132.9 |
|
| 7.5 |
|
| 407.2 |
|
| 17.0 |
| Services |
|
| 9.3 |
|
| 5.1 |
|
| 23.3 |
|
| 13.8 |
| Intersegment eliminations |
|
| (4.9) |
|
| — |
|
| (12.3) |
|
| — |
| Total Segment Adjusted EBITDA |
|
| 156.3 |
|
| 73.8 |
|
| 534.0 |
|
| 215.6 |
| Unallocated corporate expenses |
|
| (10.0) |
|
| (5.1) |
|
| (29.1) |
|
| (17.8) |
| Total Adjusted EBITDA |
| $ | 146.3 |
| $ | 68.7 |
| $ | 504.9 |
| $ | 197.8 |
| 1 | This is a non-IFRS financial measure. Refer to section "Non-IFRS Financial Measures" in this earnings release. |
