WESTMINSTER, Colo. — (BUSINESS WIRE) — May 3, 2021 — Maxar Technologies (NYSE: MAXR) (TSX: MAXR) (“Maxar” or the “Company”), a trusted partner and innovator in Earth Intelligence and Space Infrastructure, today announced financial results for the quarter ended March 31, 2021. All dollar amounts in this press release are expressed in U.S. dollars, unless otherwise noted.

Key points from the quarter include:

• Net loss of $84 million, inclusive of a $28 million charge related to the SXM-7 satellite program and a $41 million loss on debt extinguishment from the early repayment of our 2023 Notes
• Diluted loss per share of $1.30
• Consolidated revenues of $392 million and Adjusted EBITDA¹ of $67 million, both inclusive of the $28 million SXM-7 charge
• Completed the public offering of 10 million shares of common stock at a public offering price of $40 per share and used the proceeds to repay $350 million in principal borrowings on our 2023 Notes
• Total debt of $2.1 billion at March 31, 2021 compared to $2.4 billion at the end of 2020

¹ This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in this earnings release.

“We continued this quarter to make progress toward achieving our longer-term targets, including efforts to drive sustainable growth in both our Earth Intelligence and Space Infrastructure segments and to reduce our debt and leverage,” stated Dan Jablonsky, President and Chief Executive Officer. “In Earth Intelligence we signed several renewals with commercial and international government customers and booked awards with the US Army and National Geospatial Intelligence Agency to support training, tactical, and intelligence missions. In Space Infrastructure, key wins included a contract modification with NASA and several study contracts supporting national security missions.”

“Revenue and earnings were negatively impacted by a $28 million charge related to the Sirius-XM7 satellite program. Without this charge, we performed in-line with our expectations for the quarter. Importantly, we issued ten million shares this quarter and used the proceeds to reduce indebtedness. This transaction strengthens our financial position and further positions us for continued growth,” stated Biggs Porter, Chief Financial Officer.

On March 22, 2021, we completed the public offering of 10 million shares of common stock, par value $0.0001 per share, of the Company, at a public offering price of $40 per share (“Offering”). We received proceeds of $380 million, net of $20 million of transaction fees as of March 31, 2021. We completed the Offering pursuant to the Underwriting Agreement. On March 26, 2021, we redeemed $350 million aggregate principal of our 2023 Notes using a portion of the net proceeds from the Offering. Additionally, we paid premiums of approximately $34 million related to the early redemption.

Total revenues increased to $392 million from $381 million, or by $11 million, for the three months ended March 31, 2021, compared to the same period in 2020. The increase was primarily driven by an increase in revenue in our Space Infrastructure segment partially offset by a decrease in revenue in our Earth Intelligence segment. The decrease in Earth Intelligence was primarily driven by a $30 million decrease in the recognition of revenue related to the EnhancedView Contract. We recognized $30 million of deferred revenue from the EnhancedView Contract for the three months ended March 31, 2020, compared to none for the three months ended March 31, 2021.

For the three months ended March 31, 2021, our net loss was $84 million compared to net loss of $78 million for the three months ended March 31, 2020. The change in net loss was primarily driven by an increase in interest expense due to a $41 million loss on debt extinguishment from the partial redemption of our 2023 Notes, partially offset by a $10 million decrease in interest on long-term debt primarily driven by a lower principal balance on Term Loan B due to repayments made on these borrowings in the second quarter of 2020. The increase in net loss was also due to a $14 million decrease in revenues period over period related to our contract with Sirius XM and the non-performance of the SXM-7 satellite. Our increase in net loss was partially offset by increases in revenue within the Space Infrastructure segment outside of the Sirius XM contract previously mentioned and a $14 million recognition of impairment on orbital receivables for the three months ended March 31, 2020 that did not reoccur for the same period in 2021.

For the three months ended March 31, 2021, Adjusted EBITDA was $67 million and Adjusted EBITDA as a percentage of consolidated revenues (“Adjusted EBITDA margin percentage”) was 17.1%. This is compared to Adjusted EBITDA of $77 million and Adjusted EBITDA margin percentage of 20.2% for the same period of 2020. The decrease was primarily driven by lower Adjusted EBITDA from the Earth Intelligence segment primarily as a result of a $30 million decrease in deferred revenue recognized related to the EnhancedView Contract. The decrease was also driven by higher corporate and other expenses for the three months ended March 31, 2021, compared to the same period of 2020. These decreases were partially offset by higher Adjusted EBITDA from the Space Infrastructure segment.

We had total order backlog of $1.8 billion as of March 31, 2021 compared to $1.9 billion as of December 31, 2020. The decrease in backlog was primarily driven by decreases in the Space Infrastructure segment. Our unfunded contract options totaled $0.9 billion as of March 31, 2021 and December 31, 2020, respectively.

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.