WESTMINSTER, Colo. & VANCOUVER, British Columbia — (BUSINESS WIRE) — May 9, 2018 — Maxar Technologies Ltd. (“Maxar” or the “Company”, formerly MacDonald, Dettwiler and Associates Ltd.), (NYSE and TSX: MAXR), a leading global provider of advanced space technology solutions for commercial and government markets, today reported financial results for the first quarter ended March 31, 2018. All dollar amounts in this press release are expressed in U.S. dollars unless otherwise noted.
Highlights from the quarter include:
- Consolidated revenues of $557.7 million
- Net earnings of $31.0 million and net earnings per share of $0.55
- Adjusted EBITDA of $187.4 million and margins of 33.6 percent
- Adjusted earnings of $83.2 million and adjusted earnings per share of $1.47
“We delivered results above our expectations in the quarter driven by strong growth in our Imagery and Services segments, where demand remains robust given a dynamic global geopolitical environment and the continued expansion of commercial use cases for geospatial data and insights,” stated Howard L. Lance, President & Chief Executive Officer. “We are reaffirming our full year 2018 guidance for revenue, EBITDA and cash flow from operations and increasing our full-year EPS outlook. We remain focused on delivering solid financial results throughout the year,” he added. “Maxar is unique, at the nexus of the new space economy, with four leading commercial business brands. Our diversification strategy is working, we are delivering on the cost synergies from the DigitalGlobe acquisition, and we are making progress on the long-term strategic and financial objectives for growth laid out at the Company’s inaugural investor days hosted in March 2018.”
Consolidated revenues for the first quarter of 2018 were $557.7 million compared to $373.5 million for the same period of last year. Revenue increased primarily due to the inclusion of DigitalGlobe’s Imagery and Services businesses as a result of the DigitalGlobe acquisition that closed in October 5, 2017. The increase was partially offset by lower revenues from the geostationary communications satellite line of business compared to the first quarter of 2017. Excluding the effects of intersegment eliminations, the Space Systems segment contributed revenues of $293.4 million (2017 - $341.5 million), the Imagery segment contributed revenues of $211.4 million (2017 - $7.7 million), and the Services segment contributed revenues of $70.0 million (2017 - $25.4 million).
For the first quarter of 2018, adjusted EBITDA was $187.4 million and adjusted EBITDA as a percentage of consolidated revenues (“adjusted EBITDA margin percentage”) was 33.6%. This is compared to adjusted EBITDA of $63.1 million and adjusted EBITDA margin percentage of 16.9% for the first quarter of 2017. These increases are primarily due to the DigitalGlobe acquisition, which contributed $133.5 million of adjusted EBITDA and adjusted EBITDA margin of approximately 66%, increasing the Company’s overall adjusted EBITDA margin percentage in the first quarter.
Adjusted earnings, or net earnings excluding the impact of specified items affecting comparability, were $83.2 million ($1.47 per share) for the first quarter of 2018 compared to $33.7 million ($0.92 per share) for the same period of 2017. The increase in adjusted earnings per share reflect higher adjusted EBITDA from the DigitalGlobe acquisition, partially offset by higher amortization, depreciation, and interest expense.
The comparison of financial results under IFRS between periods is impacted by the inclusion and variability of specified items that may not be indicative of the financial performance of the Company’s ongoing business. After including the specified items affecting comparability, net earnings for the first quarter of 2018 were $31.0 million compared to $4.3 million for the same period of 2017.
The Company had total funded order backlog of $3.3 billion as at March 31, 2018 compared to $3.3 billion as at December 31, 2017.
The Company has declared a quarterly dividend of C$0.37 per common share payable on June 29, 2018 to shareholders of record at the close of business on June 15, 2018.
Financial Highlights
| Three months ended | ||||||||||||
| March 31, | ||||||||||||
| 2018 | 2017 | |||||||||||
| ($ millions, except per share amounts) | ||||||||||||
| Consolidated revenues | $ | 557.7 | $ | 373.5 | ||||||||
| Adjusted EBITDA 1 | 187.4 | 63.1 | ||||||||||
| Adjusted EBITDA as a percentage of revenues | 33.6 |
% |
|
16.9 | % | |||||||
| Net finance expense 2 | (43.4 | ) | (10.6 | ) | ||||||||
| Depreciation and amortization 3 | (47.2 | ) | (11.0 | ) | ||||||||
| Income tax expense on adjusted earnings 4 | (13.6 | ) | (7.8 | ) | ||||||||
| Adjusted earnings 1 | $ | 83.2 | $ | 33.7 | ||||||||
| Adjusted earnings per share 1 | $ | 1.47 | $ | 0.92 | ||||||||
| Items affecting comparability: | ||||||||||||
| Share-based compensation recovery (expense) | 1.3 | (4.8 | ) | |||||||||
| Amortization of acquisition related intangible assets | (65.2 | ) | (8.0 | ) | ||||||||
| Acquisition and integration related expense | (4.7 | ) | (8.0 | ) | ||||||||
| Interest expense on dissenting shareholder liability | (2.1 | ) | — | |||||||||
| Restructuring and enterprise improvement costs | (0.4 | ) | (10.7 | ) | ||||||||
| Foreign exchange differences | 1.1 | 0.1 | ||||||||||
| Loss on sale of subsidiary | (2.2 | ) | — | |||||||||
| Equity in loss from joint ventures, net of tax | (0.2 | ) | — | |||||||||
| Income tax expense adjustment | 20.2 | 2.0 | ||||||||||
| Net earnings | $ | 31.0 | $ | 4.3 | ||||||||
| Net earnings per share, basic | 0.55 | 0.12 | ||||||||||
| Net earnings per share, diluted | 0.55 | 0.11 | ||||||||||
| Weighted average number of common shares outstanding (millions) : | ||||||||||||
| Basic | 56.4 | 36.5 | ||||||||||
| Diluted | 56.7 | 36.5 | ||||||||||
