Maxar Technologies Reports Third Quarter 2019 Results

Intersegment eliminations

Intersegment eliminations are related to projects between our segments, including WorldView Legion. Intersegment eliminations have increased for the three months ended September 30, 2019 compared to the same period of 2018 primarily related to an increase in intersegment 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,
	2019			2018			2019			2018
Revenues:
Product	$	158		$	201		$	542		$	686
Service		321			308			931			959
Total revenues	$	479		$	509		$	1,473		$	1,645
Costs and expenses:
Product costs, excluding depreciation and amortization	$	159		$	220		$	521		$	661
Service costs, excluding depreciation and amortization		105			100			336			296
Selling, general and administrative		92			132			275			368
Depreciation and amortization		96			119			293			343
Impairment losses		—			175			12			175
Satellite insurance recovery		—			—			(183	)		—
Operating income (loss)		27			(237	)		219			(198	)
Interest expense, net		50			52			148			155
Other (income) expense, net		(1	)		5			2			10
Income (loss) before taxes		(22	)		(294	)		69			(363	)
Income tax expense (benefit)		3			(6	)		4			(47	)
Equity in loss (income) from joint ventures, net of tax		1			1			4			(2	)
Net (loss) income	$	(26	)	$	(289	)	$	61		$	(314	)

(Loss) income per common share:
Basic	$	(0.44	)	$	(4.88	)	$	1.02		$	(5.45	)
Diluted	$	(0.44	)	$	(4.88	)	$	1.02		$	(5.45	)

MAXAR TECHNOLOGIES INC. Unaudited Condensed Consolidated Balance Sheets (In millions, except per share amounts)


	September 30,			December 31,
	2019			2018
Assets
Current assets:
Cash and cash equivalents	$	52		$	35
Trade and other receivables, net		484			464
Inventory		20			31
Advances to suppliers		7			42
Income taxes receivable		21			14
Prepaid and other current assets		44			51
Total current assets		628			637
Non-current assets:
Orbital receivables		412			407
Deferred tax assets		110			103
Property, plant and equipment, net		824			747
Intangible assets, net		1,065			1,232
Non-current operating lease assets		125			—
Goodwill		1,759			1,751
Other assets		119			124
Total assets	$	5,042		$	5,001
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	177		$	209
Accrued liabilities		56			116
Accrued compensation and benefits		99			100
Contract liabilities		279			361
Current portion of long-term debt		17			17
Current operating lease liabilities		33			—
Other current liabilities		59			46
Total current liabilities		720			849
Non-current liabilities:
Pension and other postretirement benefits		187			196
Contract liabilities		5			60
Operating lease liabilities		132			—
Long-term debt		3,114			3,030
Other non-current liabilities		182			222
Total liabilities		4,340			4,357
Stockholders’ equity:
Common stock ($0.0001 par value, 240 million common shares authorized and 59.6 million outstanding at September 30, 2019; no par value, unlimited authorized common shares and 59.4 million outstanding at December 31, 2018)		—			1,713
Additional paid-in capital		1,780			59
Accumulated deficit		(1,152	)		(1,211	)
Accumulated other comprehensive income		73			82
Total Maxar stockholders' equity		701			643
Noncontrolling interest		1			1
Total stockholders' equity		702			644
Total liabilities and stockholders' equity	$	5,042		$	5,001

MAXAR TECHNOLOGIES INC. Unaudited Condensed Consolidated Statements of Cash Flows (In millions)


	Nine Months Ended
	September 30,
	2019			2018
Cash flows provided by (used in):
Operating activities:
Net income (loss)	$	61		$	(314	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of property, plant and equipment		85			121
Amortization of intangible assets		208			222
Stock-based compensation expense		10			14
Amortization of debt issuance costs and other noncash interest expense		6			7
Impairment losses		15			213
Foreign exchange losses		5			3
Deferred income tax expense (benefit)		—			(29	)
Other		7			12
Changes in operating assets and liabilities:
Trade and other receivables		(24	)		(24	)
Accrued compensation and benefits		(11	)		(6	)
Trade and other payables		(31	)		(55	)
Accrued liabilities		(64	)		16
Contract liabilities		(143	)		(156	)
Advances to suppliers		35			39
Deferred tax assets		(5	)		(23	)
Deferred tax liabilities		4			34
Other		(16	)		(26	)
Cash provided by operating activities		142			48
Investing activities:
Purchase of property, plant and equipment		(163	)		(111	)
Purchase or development of software		(43	)		(42	)
Cash collected on note receivable		—			5
Disposal of subsidiary and short-term investments		3			(1	)
Acquisitions, net of cash acquired		—			(6	)
Cash used in investing activities		(203	)		(155	)
Financing activities:
Net proceeds from revolving credit facility		107			150
Repayments of long-term debt		(22	)		(25	)
Proceeds from securitization of orbital receivables		—			18
Settlement of securitization liability		(7	)		(12	)
Payment of dividends		(2	)		(49	)
Change in overdraft balance		—			2
Other financing activities		(1	)		—
Cash provided by financing activities		75			84
Increase (decrease) in cash, cash equivalents, and restricted cash		14			(23	)
Cash, cash equivalents, and restricted cash, beginning of year		43			42
Cash, cash equivalents, and restricted cash, end of period	$	57		$	19

Reconciliation of cash flow information:
Cash and cash equivalents	$	52		$	9
Restricted cash included in prepaid and other current assets		1			8
Restricted cash included in other assets		4			2
Total cash, cash equivalents, and restricted cash	$	57		$	19

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 Next Page »