Revenues from the Space Infrastructure segment increased to $740 million from $721 million, or by $19 million, for the year ended December 31, 2021, compared to 2020. Revenues increased primarily as a result of an increase in revenues from commercial programs of $87 million due to higher volumes and lower EAC growth primarily due to no COVID-19 program impacts for the year ended December 31, 2021. Revenues were negatively impacted by a $19 million decrease year over year related to our contract with Sirius XM Holdings Inc. (“Sirius XM”). The year ended December 31, 2021, included a $30 million cumulative adjustment to revenue primarily related to the loss of final milestone and expected orbital payments from Sirius XM due to the non-performance of the SXM-7 satellite and other adjustments that were recorded in 2021. After exhausting efforts to fully recover the SXM-7 satellite and further discussions with Sirius XM, in April 2021, we made the determination to record the cumulative adjustment to revenue. In addition, there were $3 million of costs incurred in the first quarter of 2021 related to attempts to repair and fully recover the SXM-7 satellite. The aggregate impact for the year ended December 30, 2021, was $33 million. The $33 million decrease was partially offset by the non-reoccurrence of a $14 million adjustment to revenue due to the identification of a design anomaly on the commercial satellite program, which was recorded for the year ended December 31, 2020. In addition, the total increase in revenues from the Space Infrastructure segment was partially offset by a $49 million decrease in revenues from U.S. government contracts.
Adjusted EBITDA for the Space Infrastructure segment increased to $17 million from $13 million, or by $4 million, for the three months ended December 31, 2021, compared to the same period in 2020. The increase in the Space Infrastructure segment was primarily driven by a $13 million increase related to margins on commercial programs for the three months ended December 31, 2021, compared to the same period in 2020. The increase in commercial program margins was primarily driven by a change in program mix related to the completion of less profitable programs offset by more profitable programs. These increases were partially offset by a $6 million increase in indirect costs and selling, general and administrative costs.
Adjusted EBITDA increased to $46 million from a loss of $3 million, or by $49 million, for the year ended December 31, 2021, compared to 2020. The increase in the Space Infrastructure segment was primarily related to a $92 million increase driven by increased volumes on commercial programs which resulted in increased margins and fewer negative EAC impacts during the year as compared to the year ended December 31, 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. These increases were partially offset by the $19 million reduction in revenue related to the above-mentioned SXM-7 satellite impacts and a $19 million increase in indirect costs and selling, general and administrative costs which was primarily driven by an $11 million increase in research and development expenses.
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 December 31, 2021 increased to $27 million from $18 million, or by $9 million, for the three months ended December 31, 2021, compared to the same period in 2020. The increase was primarily driven by a $6 million increase in labor related expenses driven by an increase in employee compensation and fringe benefits.
Corporate and other expenses for the year ended December 31, 2021 increased to $89 million from $61 million, or by $28 million, compared to 2020. The increase was primarily driven by a $14 million increase in selling, general and administrative costs primarily due to an increase in labor related expenses driven by an increase in employee compensation and fringe benefits. There was also an increase in stock-based compensation expense of $5 million primarily due to a higher fair market value of equity awards granted. The increase was also driven by a $3 million foreign exchange loss for the year ended December 31, 2021, compared to a $5 million foreign exchange gain for the year ended December 31, 2020.
Intersegment eliminations
Intersegment eliminations are related to projects between our segments, including WorldView Legion. Intersegment eliminations increased to $8 million from $6 million, or by $2 million, for the three months ended December 31, 2021 compared to the same period in 2020, primarily related to an increase in intersegment satellite construction activity.
Intersegment eliminations decreased to $25 million from $27 million, or by $2 million, for the year ended December 31, 2021 compared to 2020, primarily related to a decrease in intersegment satellite construction activity.
MAXAR TECHNOLOGIES INC. |
||||||||||||
Consolidated Statements of Operations |
||||||||||||
(In millions, except per share amounts) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
Year Ended |
||||||||||
|
|
December 31, |
||||||||||
|
|
2021 |
|
|
2020 |
|
|
|
2019 |
|
||
Revenues: |
|
|
|
|
|
|
|
|
|
|||
| Product |
|
$ |
678 |
|
|
$ |
633 |
|
|
$ |
560 |
|
| Service |
|
|
1,092 |
|
|
|
1,090 |
|
|
|
1,106 |
|
| Total revenues |
|
|
1,770 |
|
|
|
1,723 |
|
|
|
1,666 |
|
| Costs and expenses: |
|
|
|
|
|
|
|
|
|
|||
| Product costs, excluding depreciation and amortization |
|
|
601 |
|
|
|
615 |
|
|
|
593 |
|
| Service costs, excluding depreciation and amortization |
|
|
383 |
|
|
|
378 |
|
|
|
382 |
|
| Selling, general and administrative |
|
|
369 |
|
|
|
332 |
|
|
|
325 |
|
| Depreciation and amortization |
|
|
290 |
|
|
|
348 |
|
|
|
376 |
|
| (Gain) loss on orbital receivables allowance |
|
|
(49 |
) |
|
|
14 |
|
|
|
14 |
|
| Impairment loss |
|
|
— |
|
|
|
33 |
|
|
|
— |
|
| Satellite insurance recovery |
|
|
— |
|
|
|
— |
|
|
|
(183 |
) |
| Loss (gain) on sale of assets |
|
|
— |
|
|
|
1 |
|
|
|
(136 |
) |
| Operating income |
|
|
176 |
|
|
|
2 |
|
|
|
295 |
|
| Interest expense, net |
|
|
151 |
|
|
|
175 |
|
|
|
219 |
|
| Other income, net |
|
|
(8 |
) |
|
|
(104 |
) |
|
|
(1 |
) |
| Income (loss) before taxes |
|
|
33 |
|
|
|
(69 |
) |
|
|
77 |
|
| Income tax (benefit) expense |
|
|
(13 |
) |
|
|
(22 |
) |
|
|
5 |
|
| Equity in income from joint ventures, net of tax |
|
|
— |
|
|
|
(1 |
) |
|
|
(11 |
) |
| Income (loss) from continuing operations |
|
|
46 |
|
|
|
(46 |
) |
|
|
83 |
|
| Discontinued operations: |
|
|
|
|
|
|
|
|
|
|||
| Income from operations of discontinued operations, net of tax |
|
|
— |
|
|
|
32 |
|
|
|
26 |
|
| Gain on disposal of discontinued operations, net of tax |
|
|
— |
|
|
|
317 |
|
|
|
— |
|
| Income from discontinued operations, net of tax |
|
|
— |
|
|
|
349 |
|
|
|
26 |
|
| Net income |
|
$ |
46 |
|
|
$ |
303 |
|
|
$ |
109 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
| Basic net income per common share: |
|
|
|
|
|
|
|
|
|
|||
| Income (loss) from continuing operations |
|
$ |
0.65 |
|
|
$ |
(0.76 |
) |
|
$ |
1.39 |
|
| Income from discontinued operations, net of tax |
|
|
— |
|
|
|
5.75 |
|
|
|
0.44 |
|
| Basic net income per common share |
|
$ |
0.65 |
|
|
$ |
4.99 |
|
|
$ |
1.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
| Diluted net income per common share: |
|
|
|
|
|
|
|
|
|
|||
| Income (loss) from continuing operations |
|
$ |
0.63 |
|
|
$ |
(0.76 |
) |
|
$ |
1.38 |
|
| Income from discontinued operations, net of tax |
|
|
— |
|
|
|
5.75 |
|
|
|
0.43 |
|
| Diluted net income per common share |
|
$ |
0.63 |
|
|
$ |
4.99 |
|
|
$ |
1.81 |
|
| MAXAR TECHNOLOGIES INC. |
||||||||
| Consolidated Balance Sheets |
||||||||
| (In millions, except per share amounts) |
||||||||
|
|
|
|
|
|
|
|
||
|
|
|
December 31, |
|
December 31, |
||||
|
|
|
2021 |
|
|
2020 |
|
||
| Assets |
|
|
|
|
|
|
||
| Current assets: |
|
|
|
|
|
|
||
| Cash and cash equivalents |
|
$ |
47 |
|
|
$ |
27 |
|
| Trade and other receivables, net |
|
|
355 |
|
|
|
327 |
|
| Inventory, net |
|
|
39 |
|
|
|
31 |
|
| Advances to suppliers |
|
|
31 |
|
|
|
24 |
|
| Prepaid assets |
|
|
35 |
|
|
|
38 |
|
| Other current assets |
|
|
22 |
|
|
|
21 |
|
| Total current assets |
|
|
529 |
|
|
|
468 |
|
| Non-current assets: |
|
|
|
|
|
|
||
| Orbital receivables, net |
|
|
368 |
|
|
|
361 |
|
| Property, plant and equipment, net |
|
|
940 |
|
|
|
883 |
|
| Intangible assets, net |
|
|
787 |
|
|
|
895 |
|
| Non-current operating lease assets |
|
|
145 |
|
|
|
163 |
|
| Goodwill |
|
|
1,627 |
|
|
|
1,627 |
|
| Other non-current assets |
|
|
102 |
|
|
|
86 |
|
| Total assets |
|
$ |
4,498 |
|
|
$ |
4,483 |
|
| Liabilities and stockholders’ equity |
|
|
|
|
|
|
||
| Current liabilities: |
|
|
|
|
|
|
||
| Accounts payable |
|
$ |
75 |
|
|
$ |
115 |
|
| Accrued liabilities |
|
|
43 |
|
|
|
65 |
|
| Accrued compensation and benefits |
|
|
111 |
|
|
|
105 |
|
| Contract liabilities |
|
|
289 |
|
|
|
278 |
|
| Current portion of long-term debt |
|
|
24 |
|
|
|
8 |
|
| Current operating lease liabilities |
|
|
42 |
|
|
|
41 |
|
| Other current liabilities |
|
|
38 |
|
|
|
51 |
|
| Total current liabilities |
|
|
622 |
|
|
|
663 |
|
| Non-current liabilities: |
|
|
|
|
|
|
||
| Pension and other postretirement benefits |
|
|
134 |
|
|
|
192 |
|
| Operating lease liabilities |
|
|
138 |
|
|
|
158 |
|
| Long-term debt |
|
|
2,062 |
|
|
|
2,414 |
|
| Other non-current liabilities |
|
|
79 |
|
|
|
120 |
|
| Total liabilities |
|
|
3,035 |
|
|
|
3,547 |
|
| Commitments and contingencies |
|
|
|
|
|
|
||
| Stockholders’ equity: |
|
|
|
|
|
|
||
| Common stock ($0.0001 par value, 240 million common shares authorized; 72.7 million and 61.2 million issued and outstanding at December 31, 2021 and 2020, respectively) |
|
|
— |
|
|
|
— |
|
| Additional paid-in capital |
|
|
2,235 |
|
|
|
1,818 |
|
| Accumulated deficit |
|
|
(720 |
) |
|
|
(763 |
) |
| Accumulated other comprehensive loss |
|
|
(53 |
) |
|
|
(120 |
) |
| Total Maxar stockholders' equity |
|
|
1,462 |
|
|
|
935 |
|
| Noncontrolling interest |
|
|
1 |
|
|
|
1 |
|
| Total stockholders' equity |
|
|
1,463 |
|
|
|
936 |
|
| Total liabilities and stockholders' equity |
|
$ |
4,498 |
|
|
$ |
4,483 |
|
| MAXAR TECHNOLOGIES INC. |
||||||||||||
| Consolidated Statements of Cash Flows |
||||||||||||
| (In millions) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
Year Ended |
||||||||||
|
|
|
December 31, |
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|||
| Cash flows (used in) provided by: |
|
|
|
|
|
|
|
|
|
|||
| Operating activities: |
|
|
|
|
|
|
|
|
|
|||
| Net income |
|
$ |
46 |
|
|
$ |
303 |
|
|
$ |
109 |
|
| Income from operations of discontinued operations, net of tax |
|
|
— |
|
|
|
(32 |
) |
|
|
(26 |
) |
| Gain on disposal of discontinued operations, net of tax |
|
|
— |
|
|
|
(317 |
) |
|
|
— |
|
| Income (loss) from continuing operations |
|
|
46 |
|
|
|
(46 |
) |
|
|
83 |
|
| Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
|
|
|||
| Depreciation and amortization |
|
|
290 |
|
|
|
348 |
|
|
|
376 |
|
| Stock-based compensation expense |
|
|
45 |
|
|
|
43 |
|
|
|
20 |
|
| Amortization of debt issuance costs and other non-cash interest expense |
|
|
15 |
|
|
|
16 |
|
|
|
11 |
|
| Gain on remeasurement of Vricon equity interest |
|
|
— |
|
|
|
(85 |
) |
|
|
— |
|
| Loss from early extinguishment of debt |
|
|
41 |
|
|
|
7 |
|
|
|
22 |
|
| (Gain) loss on orbital receivables allowance |
|
|
(49 |
) |
|
|
14 |
|
|
|
14 |
|
| Cumulative adjustment to SXM-7 revenue |
|
|
30 |
|
|
|
— |
|
|
|
— |
|
| Impairment losses, including inventory |
|
|
— |
|
|
|
33 |
|
|
|
3 |
|
| Deferred income tax benefit |
|
|
— |
|
|
|
(17 |
) |
|
|
— |
|
| Loss (gain) on sale of assets |
|
|
— |
|
|
|
1 |
|
|
|
(136 |
) |
| Other |
|
|
15 |
|
|
|
1 |
|
|
|
(4 |
) |
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|||
| Trade and other receivables, net |
|
|
(20 |
) |
|
|
33 |
|
|
|
(20 |
) |
| Accounts payable and liabilities |
|
|
(95 |
) |
|
|
(84 |
) |
|
|
17 |
|
| Contract liabilities |
|
|
10 |
|
|
|
5 |
|
|
|
(117 |
) |
| Prepaid and other assets |
|
|
(18 |
) |
|
|
(19 |
) |
|
|
(21 |
) |
| Other |
|
|
(16 |
) |
|
|
(7 |
) |
|
|
10 |
|
| Cash provided by operating activities - continuing operations |
|
|
294 |
|
|
|
243 |
|
|
|
258 |
|
| Cash (used in) provided by operating activities - discontinued operations |
|
|
(13 |
) |
|
|
(54 |
) |
|
|
59 |
|
| Cash provided by operating activities |
|
|
281 |
|
|
|
189 |
|
|
|
317 |
|
| Investing activities: |
|
|
|
|
|
|
|
|
|
|||
| Purchase of property, plant and equipment and development or purchase of software |
|
|
(234 |
) |
|
|
(308 |
) |
|
|
(314 |
) |
| Acquisition, net of cash acquired |
|
|
— |
|
|
|
(120 |
) |
|
|
— |
|
| Return of capital from discontinued operations |
|
|
— |
|
|
|
20 |
|
|
|
28 |
|
| Sale of assets |
|
|
— |
|
|
|
— |
|
|
|
280 |
|
| Other |
|
|
— |
|
|
|
2 |
|
|
|
— |
|
| Cash used in investing activities - continuing operations |
|
|
(234 |
) |
|
|
(406 |
) |
|
|
(6 |
) |
| Cash provided by (used in) investing activities - discontinued operations |
|
|
— |
|
|
|
723 |
|
|
|
(7 |
) |
| Cash (used in) provided by investing activities |
|
|
(234 |
) |
|
|
317 |
|
|
|
(13 |
) |
| Financing activities: |
|
|
|
|
|
|
|
|
|
|||
| Repurchase of 2023 Notes, including premium |
|
|
(384 |
) |
|
|
(169 |
) |
|
|
— |
|
| Net proceeds from issuance of common stock |
|
|
380 |
|
|
|
— |
|
|
|
— |
|
| Net proceeds from issuance of 2027 Notes and 2023 Notes |
|
|
— |
|
|
|
147 |
|
|
|
980 |
|
| Net payment from Revolving Credit Facility |
|
|
— |
|
|
|
— |
|
|
|
(595 |
) |
| Settlement of securitization liability |
|
|
(13 |
) |
|
|
(11 |
) |
|
|
(20 |
) |
| Repurchase of orbital receivables |
|
|
— |
|
|
|
— |
|
|
|
(24 |
) |
| Refinancing fees paid to creditors |
|
|
— |
|
|
|
— |
|
|
|
(20 |
) |
| Repayments of long-term debt |
|
|
(10 |
) |
|
|
(525 |
) |
|
|
(523 |
) |
| Other |
|
|
(4 |
) |
|
|
3 |
|
|
|
(6 |
) |
| Cash used in financing activities - continuing operations |
|
|
(31 |
) |
|
|
(555 |
) |
|
|
(208 |
) |
| Cash used in financing activities - discontinued operations |
|
|
— |
|
|
|
(24 |
) |
|
|
(30 |
) |
| Cash used in financing activities |
|
|
(31 |
) |
|
|
(579 |
) |
|
|
(238 |
) |
| Increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
16 |
|
|
|
(73 |
) |
|
|
66 |
|
| Effect of foreign exchange on cash, cash equivalents, and restricted cash |
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
| Cash, cash equivalents, and restricted cash, beginning of year |
|
|
31 |
|
|
|
109 |
|
|
|
43 |
|
| Cash, cash equivalents, and restricted cash, end of period |
|
$ |
47 |
|
|
$ |
31 |
|
|
$ |
109 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
| Reconciliation of cash flow information: |
|
|
|
|
|
|
|
|
|
|||
| Cash and cash equivalents |
|
$ |
47 |
|
|
$ |
27 |
|
|
$ |
105 |
|
| Restricted cash included in prepaid and other current assets |
|
|
— |
|
|
|
4 |
|
|
|
1 |
|
| Restricted cash included in other non-current assets |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
| Total cash, cash equivalents, and restricted cash |
|
$ |
47 |
|
|
$ |
31 |
|
|
$ |
109 |
|
