Maxar Technologies Reports Fourth Quarter and Full-Year 2021 Results

NON-GAAP FINANCIAL MEASURES

In addition to results reported in accordance with U.S. GAAP, we use certain non-GAAP financial measures as supplemental indicators of our financial and operating performance. These non-GAAP financial measures include EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Free Cash Flow.

We define EBITDA as earnings before interest, taxes, depreciation and amortization, Adjusted EBITDA as EBITDA adjusted for certain items affecting the comparability of our ongoing operating results as specified in the calculation and Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. Certain items affecting the comparability of our ongoing operating results between periods include restructuring, impairments, insurance recoveries, (gain) loss on sale of assets, CEO severance, (gain) loss on orbital receivables allowance and transaction and integration related expense. Transaction and integration related expense includes costs associated with de-leveraging activities, acquisitions and dispositions and the integration of acquisitions. Management believes that exclusion of these items assists in providing a more complete understanding of our underlying results and trends, and management uses these measures along with the corresponding U.S. GAAP financial measures to manage our business, evaluate our performance compared to prior periods and the marketplace, and to establish operational goals. Adjusted EBITDA is a measure being used as a key element of our incentive compensation plan. The Syndicated Credit Facility also uses Adjusted EBITDA in the determination of our debt leverage covenant ratio. The definition of Adjusted EBITDA in the Syndicated Credit Facility includes a more comprehensive set of adjustments that may result in a different calculation therein. We define Free Cash Flow as cash provided by operating activities continuing operations adjusted for the purchase of property, plant and equipment and development or purchase of software.

We believe that these non-GAAP measures, when read in conjunction with our U.S. GAAP results, provide useful information to investors by facilitating the comparability of our ongoing operating results over the periods presented, the ability to identify trends in our underlying business, and the comparison of our operating results against analyst financial models and operating results of other public companies.

EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Free Cash Flow are not recognized terms under U.S. GAAP and may not be defined similarly by other companies. EBITDA, Adjusted EBITDA and Free Cash Flow should not be considered alternatives to net (loss) income as indications of financial performance or as alternate to cash flows from operations as measures of liquidity. EBITDA and Adjusted EBITDA have limitations as an analytical tool and should not be considered in isolation or as a substitute for our results reported under U.S. GAAP. The table below reconciles our net income to EBITDA and Total Adjusted EBITDA and presents Total Adjusted EBITDA margin for the three months ended December 31, 2021 and 2020 and the years ended December 31, 2021, 2020 and 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

 

December 31,

 

December 31,

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

2019

 

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

71

 

 

$

(40

)

 

$

46

 

 

$

303

 

 

$

109

 

 

Income tax (benefit) expense

 

(3

)

 

 

 

 

 

(13

)

 

 

(22

)

 

 

5

 

 

Interest expense, net

 

24

 

 

 

42

 

 

 

151

 

 

 

175

 

 

 

219

 

 

Interest income

 

(1

)

 

 

 

 

 

(3

)

 

 

(3

)

 

 

(2

)

 

Depreciation and amortization

 

69

 

 

 

74

 

 

 

290

 

 

 

348

 

 

 

376

 

 

EBITDA 1

$

160

 

 

$

76

 

 

$

471

 

 

$

801

 

 

$

707

 

 

Income from discontinued operations, net of tax

 

 

 

 

(12

)

 

 

 

 

 

(349

)

 

 

(26

)

 

Restructuring

 

2

 

 

 

 

 

 

2

 

 

 

 

 

 

18

 

 

Transaction and integration related expense

 

 

 

 

1

 

 

 

1

 

 

 

7

 

 

 

16

 

 

(Gain) loss on orbital receivables allowance

 

(49

)

 

 

 

 

 

(49

)

 

 

14

 

 

 

14

 

 

Impairment losses, including inventory

 

 

 

 

33

 

 

 

 

 

 

33

 

 

 

3

 

 

Insurance recoveries

 

(1

)

 

 

 

 

 

(1

)

 

 

 

 

 

(183

)

 

(Gain) loss on sale of assets

 

 

 

 

(3

)

 

 

 

 

 

1

 

 

 

(136

)

 

CEO severance

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

Gain on remeasurement of Vricon equity interest

 

 

 

 

 

 

 

 

 

 

(85

)

 

 

 

 

Total Adjusted EBITDA 1

$

112

 

 

$

95

 

 

$

424

 

 

$

422

 

 

$

416

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earth Intelligence

$

130

 

 

$

106

 

 

$

492

 

 

$

513

 

 

$

548

 

 

Space Infrastructure

 

17

 

 

 

13

 

 

 

46

 

 

 

(3

)

 

 

(17

)

 

Intersegment eliminations

 

(8

)

 

 

(6

)

 

 

(25

)

 

 

(27

)

 

 

(29

)

 

Corporate and other expenses

 

(27

)

 

 

(18

)

 

 

(89

)

 

 

(61

)

 

 

(86

)

 

Total Adjusted EBITDA 1

$

112

 

 

$

95

 

 

$

424

 

 

$

422

 

 

$

416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) margin

 

15.2

 

%

 

(8.6

)

%

 

2.6

 

%

 

17.6

 

%

 

6.5

 

%

Total Adjusted EBITDA margin

 

23.9

 

%

 

20.3

 

%

 

24.0

 

%

 

24.5

 

%

 

25.0

 

%


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