Maxar Technologies reports second quarter 2018 results, declares quarterly dividend

 

Total revenues from the Imagery segment were $212.0 million in the second quarter of 2018 compared to $10.9 million in the same period of 2017. The increase is primarily due to the inclusion of the financial results of the acquired DigitalGlobe imagery business that contributed $201.9 million of revenue and $131.1 million of adjusted EBITDA in the second quarter of 2018. Imagery segment revenue for the three months ended June 30, 2018 included $30.0 million of revenue recognized from contract liabilities related to the EnhancedView contract.

Adjusted EBITDA margin percentage from the Imagery segment for the three months ended June 30, 2018 was 64.2% compared to 59.6% for the same period of 2017. The increase in margin percentage reflects the blend of margins from the acquired DigitalGlobe imagery business, acquired as part of the DigitalGlobe Transaction.

Recent Business Developments

In July 2018, the Company launched EarthWatch, a cloud-based subscription for viewing, streaming and downloading the Company's industry-leading geospatial data, enabling customers to solve their challenges with ease through a single powerful interface.

Services Results



Three months ended


Six months ended



June 30, 


June 30, 



2018


2017


2018


2017

($ millions)









Revenue

$

66.3

$

27.2

$

136.3

$

52.6

Adjusted EBITDA1

$

6.9

$

4.7

$

14.0

$

8.7

Adjusted EBITDA Margin1


10.4%


17.3%


10.3%


16.5%



1

This is a non-IFRS financial measure. Refer to section "Non-IFRS Financial Measures" in this earnings release.

 

Total revenues from the Services segment were $66.3 million in the second quarter of 2018 compared to $27.2 million in the same period of 2017. The increase is primarily due to the inclusion of the financial results from the DigitalGlobe services business that contributed $36.4 million of revenue and $3.7 million of adjusted EBITDA in the second quarter of 2018.

Adjusted EBITDA margin percentage from the Services segment for the three months ended June 30, 2018 was 10.4% compared to 17.3% for the same period of 2017. The decrease in margin primarily reflects the blend of margins from DigitalGlobe's services business, acquired as part of the DigitalGlobe Transaction.

Notable bookings in the Services segment in the second quarter of 2018 included:

  • A contract to provide geospatial predictive analysis services for a U.S. intelligence agency and their end users including Combatant Commands and other U.S. government agencies. This contract is to provide software development and support services, which include, gathering, analyzing, and manipulating foundation GEOINT as a basis for predictive analysis.
  • A subcontract with a large prime integrator for systems engineering services. This contract delivers systems modeling, algorithm development, engineering processors, and engineering services for the U.S. government.
  • A contract to provide subject matter experts in social cultural analysis, all-source analysis and signals intelligence to inform senior leaders, mission planners and deployed military personnel on socio-cultural, pattern analysis, and all-source intelligence in support of decision making, engagements and missions.

Revenue and Adjusted EBITDA by Segment:

The following table summarizes revenue and adjusted EBITDA by segment for the last 10 quarters in U.S. dollars. Actual numbers as reported are presented for the 2018 periods. Information for 2016 and 2017 is presented on a pro forma basis as if MacDonald, Dettwiler and Associates Ltd. and DigitalGlobe had been one company beginning in 2016. The table has been updated from our fourth quarter 2017 earnings release to exclude the effects of intersegment eliminations by segment for 2016 and 2017, consistent with our current presentation.



Actual



Pro forma



Q2



Q1



Q4



Q3



Q2



Q1



Q4



Q3



Q2



Q1



2018



2018



2017



2017



2017



2017



2016



2016



2016



2016

($ millions)






























Revenues:































Space Systems

$

329.9


$

293.4


$

292.4


$

299.1


$

339.6


$

342.7


$

339.9


$

347.8


$

356.1


$

376.7


Imagery


212.0



211.4



207.1



201.5



201.8



193.2



192.7



194.0



188.5



190.7


Services


66.3



70.0



62.3



72.1



68.7



57.8



68.8



61.8



61.3



52.5


Intersegment eliminations


(29.3)



(17.1)



(9.7)



(7.9)



(6.6)



(6.2)



(6.6)



(5.2)



(5.8)



(5.5)



Total Revenue

$

578.9


$

557.7


$

552.1


$

564.8


$

603.5


$

587.5


$

594.8


$

598.4


$

600.1


$

614.4

Adjusted EBITDA:































Space Systems

$

42.2


$

54.6


$

49.2


$

61.4


$

61.6


$

62.5


$

61.1


$

55.3


$

67.2


$

63.0


Imagery


136.2



138.1



133.6



128.2



128.8



120.1



123.4



124.9



123.1



124.3


Services


6.9



7.1



9.5



9.3



7.5



6.0



11.7



9.1



6.9



5.7


Intersegment eliminations


(5.4)



(2.0)



(1.0)



(1.3)



(0.6)



(1.1)



(0.7)



(0.5)



(0.9)



(1.0)



Adjusted EBITDA:


179.9



197.8



191.3



197.6



197.3



187.5



195.5



188.8



196.3



192.0

Corporate Expense


(8.7)



(10.4)



(6.4)



(8.5)



(10.0)



(9.5)



(10.1)



(8.2)



(8.3)



(7.7)

Adjusted EBITDA

$

171.2


$

187.4


$

184.9


$

189.1


$

187.3


$

178.0


$

185.4


$

180.6


$

188.0


$

184.3


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