Maxar Technologies Reports Third Quarter 2022 Results

Revenues from the Space Infrastructure segment increased to $186 million from $180 million, or by $6 million, for the three months ended September 30, 2022, compared to the same period of 2021. Revenues for the three months ended increased primarily as a result of a $4 million increase in revenues from U.S. government contracts and a $2 million increase in revenues from recurring commercial programs.

Adjusted EBITDA in the Space Infrastructure segment increased to $33 million from $14 million, or by $19 million, for the three months ended September 30, 2022, compared to the same period of 2021. The increase was primarily due to higher margins driven by reduced risks on certain programs nearing completion for the three months ended September 30, 2022, compared to the same period of 2021.

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 $28 million from $20 million, or by $8 million, for the three months ended September 30, 2022, compared to the same period in 2021. The increase was primarily driven by a $5 million foreign exchange loss for the three months ended September 30, 2022, compared to a $1 million foreign exchange loss for the same period in 2021. The increase was also driven by a $3 million increase in selling, general and administrative costs.

Intersegment eliminations

Intersegment eliminations are related to projects between our segments, including the construction of our WorldView Legion satellites. Intersegment eliminations increased to $10 million from $5 million, or by $5 million, for the three months ended September 30, 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

 

Nine Months Ended

 

September 30,

 

September 30,

 

2022

 

2021

 

2022

 

2021

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Product

$

161

 

 

$

166

 

 

$

469

 

 

$

498

 

Service

 

275

 

 

 

271

 

 

 

810

 

 

 

804

 

Total revenues

 

436

 

 

 

437

 

 

 

1,279

 

 

 

1,302

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Product costs, excluding depreciation and amortization

 

125

 

 

 

144

 

 

 

380

 

 

 

448

 

Service costs, excluding depreciation and amortization

 

95

 

 

 

93

 

 

 

280

 

 

 

286

 

Selling, general and administrative

 

110

 

 

 

89

 

 

 

320

 

 

 

261

 

Depreciation and amortization

 

64

 

 

 

74

 

 

 

199

 

 

 

221

 

Gain on sale of assets

 

(1

)

 

 

 

 

 

(1

)

 

 

 

Operating income

 

43

 

 

 

37

 

 

 

101

 

 

 

86

 

Interest expense, net

 

30

 

 

 

25

 

 

 

129

 

 

 

127

 

Other expense (income), net

 

12

 

 

 

(2

)

 

 

7

 

 

 

(6

)

Income (loss) before taxes

 

1

 

 

 

14

 

 

 

(35

)

 

 

(35

)

Income tax expense (benefit)

 

5

 

 

 

 

 

 

6

 

 

 

(10

)

Net (loss) income

$

(4

)

 

$

14

 

 

$

(41

)

 

$

(25

)

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per common share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.05

)

 

$

0.19

 

 

$

(0.56

)

 

$

(0.36

)

Diluted

$

(0.05

)

 

$

0.19

 

 

$

(0.56

)

 

$

(0.36

)

MAXAR TECHNOLOGIES INC.

Unaudited Condensed Consolidated Balance Sheets

(In millions, except per share amounts)

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

2022

 

2021

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

28

 

 

$

47

 

Trade and other receivables, net

 

 

399

 

 

 

355

 

Inventory, net

 

 

39

 

 

 

39

 

Advances to suppliers

 

 

27

 

 

 

31

 

Prepaid assets

 

 

32

 

 

 

35

 

Other current assets

 

 

64

 

 

 

22

 

Total current assets

 

 

589

 

 

 

529

 

Non-current assets:

 

 

 

 

 

 

Orbital receivables, net

 

 

348

 

 

 

368

 

Property, plant and equipment, net

 

 

1,036

 

 

 

940

 

Intangible assets, net

 

 

712

 

 

 

787

 

Non-current operating lease assets

 

 

136

 

 

 

145

 

Goodwill

 

 

1,627

 

 

 

1,627

 

Other non-current assets

 

 

109

 

 

 

102

 

Total assets

 

$

4,557

 

 

$

4,498

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

91

 

 

$

75

 

Accrued liabilities

 

 

73

 

 

 

43

 

Accrued compensation and benefits

 

 

65

 

 

 

111

 

Contract liabilities

 

 

245

 

 

 

289

 

Current portion of long-term debt

 

 

22

 

 

 

24

 

Current operating lease liabilities

 

 

33

 

 

 

42

 

Other current liabilities

 

 

70

 

 

 

38

 

Total current liabilities

 

 

599

 

 

 

622

 

Non-current liabilities:

 

 

 

 

 

 

Pension and other postretirement benefits

 

 

125

 

 

 

134

 

Operating lease liabilities

 

 

136

 

 

 

138

 

Long-term debt

 

 

2,172

 

 

 

2,062

 

Other non-current liabilities

 

 

64

 

 

 

79

 

Total liabilities

 

 

3,096

 

 

 

3,035

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock ($0.0001 par value, 240 million common shares authorized; 74.3 million and 72.7 million issued and outstanding at September 30, 2022 and December 31, 2021, respectively)

 

 

 

 

 

 

Additional paid-in capital

 

 

2,256

 

 

 

2,235

 

Accumulated deficit

 

 

(763

)

 

 

(720

)

Accumulated other comprehensive loss

 

 

(32

)

 

 

(53

)

Total Maxar stockholders' equity

 

 

1,461

 

 

 

1,462

 

Noncontrolling interest

 

 

 

 

 

1

 

Total stockholders' equity

 

 

1,461

 

 

 

1,463

 

Total liabilities and stockholders' equity

 

$

4,557

 

 

$

4,498

 

MAXAR TECHNOLOGIES INC.

Unaudited Condensed Consolidated Statements of Cash Flows

(In millions)

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

September 30,

 

 

2022

 

2021

Cash flows provided by (used in):

 

 

 

 

 

 

Operating activities:

 

 

 

 

 

 

Net loss

 

$

(41

)

 

$

(25

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

199

 

 

 

221

 

Stock-based compensation expense

 

 

35

 

 

 

31

 

Amortization of debt issuance costs and other non-cash interest expense

 

 

12

 

 

 

11

 

Loss from early extinguishment of debt

 

 

53

 

 

 

41

 

Cumulative adjustment to SXM-7 revenue

 

 

 

 

 

30

 

Deferred income tax expense

 

 

1

 

 

 

2

 

Other

 

 

11

 

 

 

(3

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Trade and other receivables, net

 

 

(31

)

 

 

(33

)

Accounts payable and liabilities

 

 

5

 

 

 

(57

)

Contract liabilities

 

 

(44

)

 

 

(20

)

Other

 

 

(9

)

 

 

(12

)

Cash provided by operating activities - continuing operations

 

 

191

 

 

 

186

 

Cash used in operating activities - discontinued operations

 

 

 

 

 

(1

)

Cash provided by operating activities

 

 

191

 

 

 

185

 

Investing activities:

 

 

 

 

 

 

Purchase of property, plant and equipment and development or purchase of software

 

 

(226

)

 

 

(156

)

Acquisition of investment

 

 

(2

)

 

 

 

Cash used in investing activities - continuing operations

 

 

(228

)

 

 

(156

)

Financing activities:

 

 

 

 

 

 

Cash paid to extinguish existing Term Loan B

 

 

(1,341

)

 

 

 

Proceeds from amendment of Term Loan B, net of discount

 

 

1,329

 

 

 

 

Repurchase of 9.75% 2023 Notes, including premium

 

 

(537

)

 

 

(384

)

Proceeds from issuance of 7.75% 2027 Notes

 

 

500

 

 

 

 

Net proceeds from Revolving Credit Facility

 

 

125

 

 

 

 

Debt issuance costs paid

 

 

(27

)

 

 

 

Settlement of securitization liability

 

 

(10

)

 

 

(9

)

Repayments of long-term debt

 

 

(12

)

 

 

(7

)

Net proceeds from issuance of common stock

 

 

 

 

 

380

 

Other

 

 

(10

)

 

 

(4

)

Cash provided by (used in) financing activities - continuing operations

 

 

17

 

 

 

(24

)

(Decrease) increase in cash, cash equivalents, and restricted cash

 

 

(20

)

 

 

5

 

Effect of foreign exchange on cash, cash equivalents, and restricted cash

 

 

 

 

 

 

Cash, cash equivalents, and restricted cash, beginning of year

 

 

48

 

 

 

31

 

Cash, cash equivalents, and restricted cash, end of period

 

$

28

 

 

$

36

 

 

 

 

 

 

 

 

Reconciliation of cash flow information:

 

 

 

 

 

 

Cash and cash equivalents

 

$

28

 

 

$

36

 

Restricted cash included in prepaid and other current assets

 

 

 

 

 

 

Total cash, cash equivalents, and restricted cash

 

$

28

 

 

$

36

 


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