WESTMINSTER, Colo.–(BUSINESS WIRE)–Maxar Technologies (NYSE:MAXR) (TSX:MAXR) (“Maxar” or the “Company”), a provider of comprehensive space solutions and secure, precise, geospatial intelligence, today announced financial results for the quarter and year ended December 31, 2021. All dollar amounts in this press release are expressed in U.S. dollars, unless otherwise noted.
Key points from the fourth quarter and full-year include:
- Fourth quarter consolidated revenues of $468 million, net income from continuing operations of $71 million, diluted net income per share of $0.94 and Adjusted EBITDA1of $112 million
- Full-year consolidated revenues of $1,770 million
- Full-year net income from continuing operations of $46 million
- Full-year diluted net income per share of $0.63
- Full-year Adjusted EBITDA1of $424 million
- Full-year operating cash flows from continuing operations of $294 million, CapEx2of $234 million and free cash flows1 of $60 million
1 This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in this earnings release.
2 CapEx is defined as the purchase of property, plant and equipment and development or purchase of software.
“Our performance this year demonstrates that we are executing on our strategic growth plans. We generated revenue and Adjusted EBITDA growth, and we won notable awards across a diverse set of customers, including the National Reconnaissance Office, the National Geospatial Intelligence Agency, the US Army, several key US allies, and a number of leading technology companies,” stated Dan Jablonsky, President and Chief Executive Officer. “Importantly, we generated over $100 million in growth from our Earth Intelligence products versus last year. As we look to 2022 and beyond, we remain focused on execution and on making investments across both Earth Intelligence and Space Infrastructure that we believe will position us well to continue to meet our customer’s critical mission needs into the future.”
“We generated cash flow growth in 2021 versus a year ago on better operating cash flow performance and lower capital expenditures. I am pleased with the full-year financial performance across the organization, particularly the Adjusted EBITDA margin expansion we saw in both Earth Intelligence and Space Infrastructure driven by mix and solid execution,” stated Biggs Porter, Chief Financial Officer. “Looking ahead, we continue to see strong growth in revenue, Adjusted EBITDA and cash flow over the next several years, and we remain focused on reducing debt and leverage.”
Total revenues increased to $468 million from $467 million, or by $1 million, for the three months ended December 31, 2021, compared to the same period in 2020. The increase was primarily driven by an increase in the Earth Intelligence segment which was partially offset by a decrease in the Space Infrastructure segment.
Total revenues increased to $1,770 million from $1,723 million, or by $47 million, for the year ended December 31, 2021 compared to 2020. The increase was primarily driven by an increase in revenues in our Space Infrastructure and Earth Intelligence segments. Revenue in our Earth Intelligence segment was inclusive of an $80 million decrease in the recognition of deferred revenue related to the EnhancedView Contract.
For the three months ended December 31, 2021, our net income (loss) from continuing operations increased to net income of $71 million from a net loss of $52 million, or by $123 million, compared to the same period in 2020. The increase was driven by a $49 million reversal of our orbital receivables allowance for the three months ended December 31, 2021. The increase was also driven by a decrease in total product and services costs of $34 million primarily within the Space Infrastructure segment for the three months ended December 31, 2021 compared to the same period in 2020 and the write-off of a $33 million prepaid asset with a commercial provider of ground station services under a contract which was above current market value for the three months ended December 31, 2020, which did not reoccur for the same period in 2021.
For the year ended December 31, 2021, our net income (loss) from continuing operations increased to net income of $46 million from a net loss of $46 million, or by $92 million, compared to 2020. The increase was driven by a decrease in depreciation and amortization expense of $58 million, a $49 million reversal of our orbital receivables allowance and an increase in revenue of $47 million for the year ended December 31, 2021, compared to 2020. The increase was also driven by a decrease in interest expense, net of $24 million, compared to 2020. Interest expense, net included a $41 million loss on debt extinguishment for the year ended December 31, 2021. These increases were partially offset by an $85 million gain on remeasurement of the previously held equity interest in Vricon for the year ended December 31, 2020, which did not reoccur in 2021, an increase in selling, general and administrative costs of $37 million for the year ended December 31, 2021 compared to 2020 and the write-off of a $33 million prepaid asset with a commercial provider of ground station services for the year ended December 31, 2020, which did not reoccur in 2021.
For the three months ended December 31, 2021, Adjusted EBITDA was $112 million and Adjusted EBITDA margin was 23.9%. This is compared to Adjusted EBITDA of $95 million and Adjusted EBITDA margin of 20.3% for the three months ended 2020. The increase was primarily driven by higher Adjusted EBITDA from the Earth Intelligence segment partially offset by higher Corporate and other expenses.
For the year ended December 31, 2021, Adjusted EBITDA was $424 million and Adjusted EBITDA margin was 24.0%. This is compared to Adjusted EBITDA of $422 million and Adjusted EBITDA margin of 24.5% for the year ended 2020. The increase in Adjusted EBITDA was driven by higher Adjusted EBITDA from the Space Infrastructure segment partially offset by lower Adjusted EBITDA from the Earth Intelligence segment primarily as a result of a $80 million decrease in deferred revenue recognized related to the EnhancedView Contract discussed above. The total increase was also partially offset by higher Corporate and other expenses.
Order backlog decreased to $1,893 million from $1,904 million, or by $11 million, for the year ended December 31, 2021 compared to December 31, 2020. Our unfunded contract options totaled $650 million and $856 million as of December 31, 2021 and 2020, respectively. Unfunded contract options represent estimated amounts of revenue to be earned in the future from negotiated contracts with unexercised contract options and indefinite delivery/indefinite quantity contracts. Unfunded contract options as of December 31, 2021 were primarily comprised of the option year in the EnhancedView Contract (September 1, 2022 through July 12, 2023) and other U.S. government and commercial customer contracts. In November 2021, the National Reconnaissance Office (“NRO”) announced the release of the Electro-Optical Commercial Layer (“EOCL”) contract Request for Proposal (“RFP”) which is expected to replace the existing EnhancedView Contract. In December 2021, we submitted our response to the EOCL RFP and anticipate the NRO to award EOCL contracts prior to the expiration of the EnhancedView Contract, including remaining option years.
Financial Highlights
In addition to results reported in accordance with U.S. GAAP, we use certain non-GAAP financial measures as supplemental indicators of its financial and operating performance. These non-GAAP financial measures include EBITDA and Adjusted EBITDA. We believe these supplementary financial measures reflect our ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.
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Three Months Ended |
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Year Ended |
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December 31, |
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December 31, |
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2021 |
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2020 |
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2021 |
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2020 |
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($ millions, except per share amounts) |
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|
Revenues |
$ |
468 |
|
$ |
467 |
|
|
$ |
1,770 |
|
$ |
1,723 |
|
|
Income (loss) from continuing operations |
|
71 |
|
|
(52 |
) |
|
|
46 |
|
|
(46 |
) |
|
Income from discontinued operations, net of tax |
|
— |
|
|
12 |
|
|
|
— |
|
|
349 |
|
|
Net income (loss) |
$ |
71 |
|
$ |
(40 |
) |
|
$ |
46 |
|
$ |
303 |
|
|
EBITDA1 |
|
160 |
|
|
76 |
|
|
|
471 |
|
|
801 |
|
|
Total Adjusted EBITDA1 |
|
112 |
|
|
95 |
|
|
|
424 |
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|
422 |
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Diluted net income per common share: |
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||
|
Income (loss) from continuing operations |
$ |
0.94 |
|
$ |
(0.85 |
) |
|
$ |
0.63 |
|
$ |
(0.76 |
) |
|
Income from discontinued operations, net of tax |
|
— |
|
|
0.20 |
|
|
|
— |
|
|
5.75 |
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Diluted net income (loss) per common share |
$ |
0.94 |
|
$ |
(0.65 |
) |
|
$ |
0.63 |
|
$ |
4.99 |
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Weighted average number of common shares outstanding (millions): |
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Basic |
|
72.7 |
|
|
61.1 |
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|
70.6 |
|
|
60.7 |
|
|
Diluted |
|
75.2 |
|
|
61.1 |
|
|
|
73.2 |
|
|
60.7 |
|
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1 This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in this earnings release. |
Revenues by segment were as follows:
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Three Months Ended |
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Year Ended |
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December 31, |
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December 31, |
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2021 |
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2020 |
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2021 |
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2020 |
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($ millions) |
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Revenues: |
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||||
|
Earth Intelligence |
$ |
289 |
|
|
$ |
258 |
|
|
$ |
1,093 |
|
|
$ |
1,081 |
|
|
Space Infrastructure |
|
199 |
|
|
|
224 |
|
|
|
740 |
|
|
|
721 |
|
|
Intersegment eliminations |
|
(20 |
) |
|
|
(15 |
) |
|
|
(63 |
) |
|
|
(79 |
) |
|
Total revenues |
$ |
468 |
|
|
$ |
467 |
|
|
$ |
1,770 |
|
|
$ |
1,723 |
|
We analyze financial performance by segment, which combine related activities within the Company.
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Three Months Ended |
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Year Ended |
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December 31, |
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December 31, |
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($ millions) |
|
2021 |
|
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|
2020 |
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|
2021 |
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|
2020 |
|
|
Adjusted EBITDA: |
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|
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|
||||
|
Earth Intelligence |
$ |
130 |
|
|
$ |
106 |
|
|
$ |
492 |
|
|
$ |
513 |
|
|
Space Infrastructure |
|
17 |
|
|
|
13 |
|
|
|
46 |
|
|
|
(3 |
) |
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Intersegment eliminations |
|
(8 |
) |
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|
(6 |
) |
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|
(25 |
) |
|
|
(27 |
) |
|
Corporate and other expenses |
|
(27 |
) |
|
|
(18 |
) |
|
|
(89 |
) |
|
|
(61 |
) |
|
Adjusted EBITDA1 |
$ |
112 |
|
|
$ |
95 |
|
|
$ |
424 |
|
|
$ |
422 |
|
|
1 This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in this earnings release. |
Earth Intelligence
|
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Three Months Ended |
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Year Ended |
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||||||
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|
December 31, |
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December 31, |
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|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
289 |
|
$ |
258 |
|
$ |
1,093 |
|
$ |
1,081 |
|
|
Adjusted EBITDA |
$ |
130 |
|
$ |
106 |
|
$ |
492 |
|
$ |
513 |
|
|
Adjusted EBITDA margin (as a % of total revenues) |
|
45.0 |
% |
|
41.1 |
% |
|
45.0 |
% |
|
47.5 |
% |
Revenues from the Earth Intelligence segment increased to $289 million from $258 million, or by $31 million, for the three months ended December 31, 2021, compared to the same period in 2020. The increase was primarily driven by a $16 million increase in revenue from international defense and intelligence customers and a $13 million increase in commercial programs, both largely as a result of an expansion of contracts with existing customers.
Revenues from the Earth Intelligence segment increased to $1,093 million from $1,081 million, or by $12 million, for the year ended December 31, 2021, compared to 2020. The increase was primarily driven by a $48 million increase in revenue from international defense and intelligence customers, a $36 million increase in new and expanded commercial programs and a $7 million increase in revenue from new contracts with the U.S. government partially offset by an $80 million decrease in the recognition of deferred revenue related to the EnhancedView Contract. We recognized $80 million of deferred revenue from the EnhancedView Contract for the year ended December 31, 2020, compared to none for the year ended December 31, 2021, as it was fully recognized as of August 31, 2020.
Adjusted EBITDA from the Earth Intelligence segment increased to $130 million from $106 million, or by $24 million, for the three months ended December 31, 2021, compared to the same period in 2020. The increase was primarily driven by the expansion of contracts with existing commercial and international defense and intelligence customers contributing to positive program margin growth. These increases were partially offset by an increase in selling, general and administrative costs primarily due to an increase in labor related expenses driven by an increase in headcount, employee compensation and fringe benefits.
Adjusted EBITDA decreased to $492 million from $513 million, or by $21 million, for the year ended December 31, 2021, compared to 2020. The decrease was primarily driven by a decrease in the recognition of deferred revenue related to the EnhancedView Contract as mentioned above. The decrease was also driven by an increase in selling, general and administrative costs due to an increase in labor related expenses driven by an increase in headcount, employee compensation and fringe benefits for the year ended December 31, 2021, compared to 2020. These decreases were partially offset by the expansion of contracts with existing commercial and international defense and intelligence customers contributing to positive program margin growth.
Space Infrastructure
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Three Months Ended |
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|
Year Ended |
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||||||
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|
December 31, |
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|
December 31, |
|
||||||
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
($ millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
199 |
|
$ |
224 |
|
$ |
740 |
|
$ |
721 |
|
|
Adjusted EBITDA |
$ |
17 |
|
$ |
13 |
|
$ |
46 |
|
$ |
(3) |
|
|
Adjusted EBITDA margin (as a % of total revenues) |
|
8.5 |
% |
|
5.8 |
% |
|
6.2 |
% |
|
(0.4) |
% |
Revenues from the Space Infrastructure segment decreased to $199 million from $224 million, or by $25 million, for the three months ended December 31, 2021, compared to the same period in 2020. Revenues decreased primarily as a result of a $24 million decrease in revenues from U.S. government contracts driven by a decrease in volumes.
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. |
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|
Consolidated Statements of Operations |
||||||||||||
|
(In millions, except per share amounts) |
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|
|
|
|
|
|
|
|||
|
|
|
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 |
|
Contacts
Jason Gursky | VP Investor Relations and Corporate Treasurer | 1-303-684-2207 | jason.gursky@maxar.com
Turner Brinton | Media Relations | 1-303-684-4545 | turner.brinton@maxar.com
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