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 |
|
