Revenues from the Space Infrastructure segment increased to $206 million from $184 million, or by $22 million, for the three months ended June 30, 2021, compared to the same period in 2020. Revenues increased primarily as a result of an increase in revenues from commercial programs of $36 million due to higher volumes related to new programs and lower EAC growth and no COVID-19 program impacts for the three months ended June 30, 2021. The increase is partially offset by a $14 million decrease in revenues from U.S. government contracts.
Adjusted EBITDA from the Space Infrastructure segment increased to $27 million from $11 million, or by $16 million, for the three months ended June 30, 2021, compared to the same period of 2020. The increase in the Space Infrastructure segment was primarily related to a $24 million increase in commercial program margins due to new programs and fewer negative EAC impacts during the period as compared to the three months ended June 30, 2020, which included negative EAC impacts due to COVID-19. The increase in commercial program margins has been driven by a change in program mix related to the completion of less profitable programs offset by new, more profitable programs. The remaining $8 million change is related to an increase in indirect costs and selling, general and administrative costs.
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 for the three months ended June 30, 2021 increased to $19 million from $12 million, or by $7 million, compared to the same period in 2020. The increase was primarily driven by a $6 million increase in selling, general and administrative costs primarily due to an increase in labor related expenses driven by an increase in headcount and employee compensation.
Intersegment eliminations
Intersegment eliminations are related to projects between our segments, including our WorldView Legion satellite constellation. Intersegment eliminations were $7 million for the three months ended June 30, 2021 and 2020, respectively.
MAXAR TECHNOLOGIES INC.
|
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Three Months Ended |
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Six Months Ended |
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|
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June 30, |
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June 30, |
||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product |
|
$ |
190 |
|
|
$ |
157 |
|
|
$ |
332 |
|
|
$ |
264 |
|
Service |
|
|
283 |
|
|
|
282 |
|
|
|
533 |
|
|
|
556 |
|
| Total revenues |
|
|
473 |
|
|
|
439 |
|
|
|
865 |
|
|
|
820 |
|
| Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Product costs, excluding depreciation and amortization |
|
|
156 |
|
|
|
144 |
|
|
|
304 |
|
|
|
289 |
|
| Service costs, excluding depreciation and amortization |
|
|
100 |
|
|
|
87 |
|
|
|
193 |
|
|
|
180 |
|
| Selling, general and administrative |
|
|
88 |
|
|
|
79 |
|
|
|
172 |
|
|
|
147 |
|
| Depreciation and amortization |
|
|
73 |
|
|
|
89 |
|
|
|
147 |
|
|
|
179 |
|
| Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
| Operating income |
|
|
56 |
|
|
|
40 |
|
|
|
49 |
|
|
|
11 |
|
| Interest expense, net |
|
|
24 |
|
|
|
48 |
|
|
|
102 |
|
|
|
97 |
|
| Other income, net |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
(7 |
) |
| Income (loss) before taxes |
|
|
35 |
|
|
|
(4 |
) |
|
|
(49 |
) |
|
|
(79 |
) |
| Income tax benefit |
|
|
(10 |
) |
|
|
(2 |
) |
|
|
(10 |
) |
|
|
— |
|
| Equity in income from joint ventures, net of tax |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(1 |
) |
| Income (loss) from continuing operations |
|
|
45 |
|
|
|
— |
|
|
|
(39 |
) |
|
|
(78 |
) |
| Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Income from operations of discontinued operations, net of tax |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
32 |
|
| Gain on disposal of discontinued operations, net of tax |
|
|
— |
|
|
|
304 |
|
|
|
— |
|
|
|
304 |
|
| Income from discontinued operations, net of tax |
|
|
— |
|
|
|
306 |
|
|
|
— |
|
|
|
336 |
|
| Net income (loss) |
|
$ |
45 |
|
|
$ |
306 |
|
|
$ |
(39 |
) |
|
$ |
258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Basic net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
| Income (loss) from continuing operations |
|
$ |
0.62 |
|
|
$ |
— |
|
|
$ |
(0.57 |
) |
|
$ |
(1.29 |
) |
| Income from discontinued operations, net of tax |
|
|
— |
|
|
|
5.05 |
|
|
|
— |
|
|
|
5.56 |
|
| Basic net income (loss) per common share |
|
$ |
0.62 |
|
|
$ |
5.05 |
|
|
$ |
(0.57 |
) |
|
$ |
4.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
| 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 |
|
|
MAXAR TECHNOLOGIES INC.
|
||||||||
|
|
|
|
|
|
|
|
||
|
|
|
June 30, |
|
December 31, |
||||
|
|
|
2021 |
|
|
2020 |
|
||
| Assets |
|
|
|
|
|
|
||
| Current assets: |
|
|
|
|
|
|
||
| Cash and cash equivalents |
|
$ |
10 |
|
|
$ |
27 |
|
| Trade and other receivables, net |
|
|
400 |
|
|
|
327 |
|
| Inventory |
|
|
43 |
|
|
|
31 |
|
| Advances to suppliers |
|
|
16 |
|
|
|
24 |
|
| Prepaid and other current assets |
|
|
64 |
|
|
|
59 |
|
| Total current assets |
|
|
533 |
|
|
|
468 |
|
| Non-current assets: |
|
|
|
|
|
|
||
| Orbital receivables, net |
|
|
333 |
|
|
|
361 |
|
| Property, plant and equipment, net |
|
|
896 |
|
|
|
883 |
|
| Intangible assets, net |
|
|
840 |
|
|
|
895 |
|
| Non-current operating lease assets |
|
|
151 |
|
|
|
163 |
|
| Goodwill |
|
|
1,627 |
|
|
|
1,627 |
|
| Other non-current assets |
|
|
90 |
|
|
|
86 |
|
| Total assets |
|
$ |
4,470 |
|
|
$ |
4,483 |
|
| Liabilities and stockholders’ equity |
|
|
|
|
|
|
||
| Current liabilities: |
|
|
|
|
|
|
||
| Accounts payable |
|
$ |
112 |
|
|
$ |
115 |
|
| Accrued liabilities |
|
|
63 |
|
|
|
65 |
|
| Accrued compensation and benefits |
|
|
76 |
|
|
|
105 |
|
| Contract liabilities |
|
|
272 |
|
|
|
278 |
|
| Current portion of long-term debt |
|
|
13 |
|
|
|
8 |
|
| Current operating lease liabilities |
|
|
42 |
|
|
|
41 |
|
| Other current liabilities |
|
|
45 |
|
|
|
51 |
|
| Total current liabilities |
|
|
623 |
|
|
|
663 |
|
| Non-current liabilities: |
|
|
|
|
|
|
||
| Pension and other postretirement benefits |
|
|
186 |
|
|
|
192 |
|
| Contract liabilities |
|
|
— |
|
|
|
1 |
|
| Operating lease liabilities |
|
|
144 |
|
|
|
158 |
|
| Long-term debt |
|
|
2,121 |
|
|
|
2,414 |
|
| Other non-current liabilities |
|
|
96 |
|
|
|
119 |
|
| Total liabilities |
|
|
3,170 |
|
|
|
3,547 |
|
| Commitments and contingencies |
|
|
|
|
|
|
||
| Stockholders’ equity: |
|
|
|
|
|
|
||
| Common stock ($0.0001 par value, 240 million common shares authorized; 72.4 million and 61.2 million outstanding at June 30, 2021 and December 31, 2020, respectively) |
|
|
— |
|
|
|
— |
|
| Additional paid-in capital |
|
|
2,211 |
|
|
|
1,818 |
|
| Accumulated deficit |
|
|
(803 |
) |
|
|
(763 |
) |
| Accumulated other comprehensive loss |
|
|
(109 |
) |
|
|
(120 |
) |
| Total Maxar stockholders' equity |
|
|
1,299 |
|
|
|
935 |
|
| Noncontrolling interest |
|
|
1 |
|
|
|
1 |
|
| Total stockholders' equity |
|
|
1,300 |
|
|
|
936 |
|
| Total liabilities and stockholders' equity |
|
$ |
4,470 |
|
|
$ |
4,483 |
|
|
MAXAR TECHNOLOGIES INC.
|
||||||||
|
|
|
|
|
|
|
|||
|
|
|
Six Months Ended |
||||||
|
|
|
June 30, |
||||||
|
|
|
2021 |
|
2020 |
|
|||
| Cash flows (used in) provided by: |
|
|
|
|
|
|||
| Operating activities: |
|
|
|
|
|
|||
| Net (loss) income |
|
$ |
(39 |
) |
$ |
258 |
|
|
| Income from operations of discontinued operations, net of tax |
|
|
— |
|
|
32 |
|
|
| Gain on disposal of discontinued operations, net of tax |
|
|
— |
|
|
304 |
|
|
| Loss from continuing operations |
|
|
(39 |
) |
|
(78 |
) |
|
| Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: |
|
|
|
|
|
|||
| Depreciation and amortization |
|
|
147 |
|
|
179 |
|
|
| Stock-based compensation expense |
|
|
21 |
|
|
13 |
|
|
| Amortization of debt issuance costs and other non-cash interest expense |
|
|
7 |
|
|
8 |
|
|
| Loss from early extinguishment of debt |
|
|
41 |
|
|
7 |
|
|
| Cumulative adjustment to SXM-7 revenue |
|
|
25 |
|
|
— |
|
|
| Impairment loss |
|
|
— |
|
|
14 |
|
|
| Other |
|
|
9 |
|
|
2 |
|
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|||
| Trade and other receivables |
|
|
(72 |
) |
|
40 |
|
|
| Accounts payable and liabilities |
|
|
(60 |
) |
|
(65 |
) |
|
| Contract liabilities |
|
|
(6 |
) |
|
(38 |
) |
|
| Other |
|
|
(23 |
) |
|
(16 |
) |
|
| Cash provided by operating activities - continuing operations |
|
|
50 |
|
|
66 |
|
|
| Cash used in operating activities - discontinued operations |
|
|
— |
|
|
(30 |
) |
|
| Cash provided by operating activities |
|
|
50 |
|
|
36 |
|
|
| Investing activities: |
|
|
|
|
|
|||
| Purchase of property, plant and equipment and development or purchase of software |
|
|
(105 |
) |
|
(128 |
) |
|
| Return of capital from discontinued operations |
|
|
— |
|
|
20 |
|
|
| Cash used in investing activities - continuing operations |
|
|
(105 |
) |
|
(108 |
) |
|
| Cash provided by investing activities - discontinued operations |
|
|
— |
|
|
723 |
|
|
| Cash (used in) provided by investing activities |
|
|
(105 |
) |
|
615 |
|
|
| Financing activities: |
|
|
|
|
|
|||
| Repurchase of 2023 Notes, including premium |
|
|
(384 |
) |
|
(169 |
) |
|
| Net proceeds from issuance of common stock |
|
|
380 |
|
|
— |
|
|
| Net proceeds from Revolving Credit Facility |
|
|
53 |
|
|
— |
|
|
| Net proceeds from issuance of 2027 Notes |
|
|
— |
|
|
147 |
|
|
| Settlement of securitization liability |
|
|
(6 |
) |
|
(7 |
) |
|
| Repayments of long-term debt |
|
|
(4 |
) |
|
(521 |
) |
|
| Other |
|
|
(6 |
) |
|
1 |
|
|
| Cash provided by (used in) financing activities - continuing operations |
|
|
33 |
|
|
(549 |
) |
|
| Cash used in financing activities - discontinued operations |
|
|
— |
|
|
(24 |
) |
|
| Cash provided by (used in) financing activities |
|
|
33 |
|
|
(573 |
) |
|
| (Decrease) increase in cash, cash equivalents, and restricted cash |
|
|
(22 |
) |
|
78 |
|
|
| Effect of foreign exchange on cash, cash equivalents, and restricted cash |
|
|
— |
|
|
(5 |
) |
|
| Cash, cash equivalents, and restricted cash, beginning of year |
|
|
32 |
|
|
110 |
|
|
| Cash, cash equivalents, and restricted cash, end of period |
|
$ |
10 |
|
$ |
183 |
|
|
|
|
|
|
|
|
|
|||
| Reconciliation of cash flow information: |
|
|
|
|
|
|||
| Cash and cash equivalents |
|
$ |
10 |
|
$ |
179 |
|
|
| Restricted cash included in prepaid and other current assets |
|
|
— |
|
|
1 |
|
|
| Restricted cash included in other non-current assets |
|
|
— |
|
|
3 |
|
|
| Total cash, cash equivalents, and restricted cash |
|
$ |
10 |
|
$ |
183 |
|
|
