Maxar Technologies Reports First Quarter 2022 Results

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 $25 million from $23 million, or by $2 million, for the three months ended March 31, 2022, compared to the same period in 2021. The increase was primarily driven by an increase in stock-based compensation expense of $3 million for the three months ended March 31, 2022, which was primarily due to incremental expense related to liability classified awards.

Intersegment eliminations

Intersegment eliminations are related to projects between our segments, including the construction of our WorldView Legion satellites. Intersegment eliminations increased to $9 million from $5 million, or by $4 million, for the three months ended March 31, 2022, compared to the same period in 2021, primarily related to an increase in intersegment satellite construction activity.

MAXAR TECHNOLOGIES INC. Unaudited Condensed Consolidated Statements of Operations (In millions, except per share amounts)

	Three Months Ended
	March 31,
	2022			2021
Revenues:
Product	$	154		$	142
Service		251			250
Total revenues		405			392
Costs and expenses:
Product costs, excluding depreciation and amortization		127			148
Service costs, excluding depreciation and amortization		93			93
Selling, general and administrative		104			84
Depreciation and amortization		68			74
Operating income (loss)		13			(7	)
Interest expense, net		23			78
Other income, net		(3	)		(1	)
Loss before taxes		(7	)		(84	)
Income tax (benefit) expense		—			—
Net loss	$	(7	)	$	(84	)

Net loss per common share:
Basic	$	(0.10	)	$	(1.30	)
Diluted	$	(0.10	)	$	(1.30	)

MAXAR TECHNOLOGIES INC. Unaudited Condensed Consolidated Balance Sheets (In millions, except per share amounts)

	March 31,			December 31,
	2022			2021
Assets
Current assets:
Cash and cash equivalents	$	22		$	47
Trade and other receivables, net		333			355
Inventory, net		36			39
Advances to suppliers		25			31
Prepaid assets		31			35
Other current assets		22			22
Total current assets		469			529
Non-current assets:
Orbital receivables, net		362			368
Property, plant and equipment, net		968			940
Intangible assets, net		761			787
Non-current operating lease assets		138			145
Goodwill		1,627			1,627
Other non-current assets		115			102
Total assets	$	4,440		$	4,498
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	81		$	75
Accrued liabilities		62			43
Accrued compensation and benefits		71			111
Contract liabilities		250			289
Current portion of long-term debt		29			24
Current operating lease liabilities		40			42
Other current liabilities		37			38
Total current liabilities		570			622
Non-current liabilities:
Pension and other postretirement benefits		131			134
Operating lease liabilities		133			138
Long-term debt		2,060			2,062
Other non-current liabilities		71			79
Total liabilities		2,965			3,035
Commitments and contingencies
Stockholders’ equity:
Common stock ($0.0001 par value, 240 million common shares authorized; 73.4 million and 72.7 million issued and outstanding at March 31, 2022 and December 31, 2021, respectively)		—			—
Additional paid-in capital		2,243			2,235
Accumulated deficit		(727	)		(720	)
Accumulated other comprehensive loss		(42	)		(53	)
Total Maxar stockholders' equity		1,474			1,462
Noncontrolling interest		1			1
Total stockholders' equity		1,475			1,463
Total liabilities and stockholders' equity	$	4,440		$	4,498

MAXAR TECHNOLOGIES INC. Unaudited Condensed Consolidated Statements of Cash Flows (In millions)

	Three Months Ended
	March 31,
	2022			2021
Cash flows (used in) provided by:
Operating activities:
Net loss	$	(7	)	$	(84	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		68			74
Stock-based compensation expense		15			11
Amortization of debt issuance costs and other non-cash interest expense		3			4
Loss from early extinguishment of debt		—			41
Cumulative adjustment to SXM-7 revenue		—			25
Other		5			4
Changes in operating assets and liabilities:
Trade and other receivables, net		29			3
Accounts payable and liabilities		(25	)		(49	)
Contract liabilities		(39	)		6
Other		(1	)		(8	)
Cash provided by operating activities		48			27
Investing activities:
Purchase of property, plant and equipment and development or purchase of software		(64	)		(50	)
Acquisition of investment		(2	)		—
Cash used in investing activities		(66	)		(50	)
Financing activities:
Net proceeds of revolving credit facility		—			25
Repurchase of 2023 Notes, including premium		—			(384	)
Net proceeds from issuance of common stock		—			380
Settlement of securitization liability		(4	)		(3	)
Repayments of long-term debt		(1	)		(2	)
Other		(2	)		1
Cash (used in) provided by financing activities		(7	)		17
Decrease in cash, cash equivalents, and restricted cash		(25	)		(6	)
Effect of foreign exchange on cash, cash equivalents, and restricted cash		—			—
Cash, cash equivalents, and restricted cash, beginning of year		48			32
Cash, cash equivalents, and restricted cash, end of period	$	23		$	26

Reconciliation of cash flow information:
Cash and cash equivalents	$	22		$	22
Restricted cash included in prepaid and other current assets		1			4
Total cash, cash equivalents, and restricted cash	$	23		$	26

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