Maxar Technologies Reports Third Quarter 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 and Adjusted EBITDA margin.

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, satellite insurance recovery, gain (loss) on sale of assets, CEO severance 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 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 and Adjusted EBITDA margin are not recognized terms under U.S. GAAP and may not be defined similarly by other companies. EBITDA and Adjusted EBITDA 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 and nine months ended September 30, 2021 and 2020.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2021

 

2020

 

2021

 

2020

 

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

14

 

$

85

 

$

(25)

 

$

343

 

Income tax benefit

 

 

 

 

(22)

 

 

(10)

 

 

(22)

 

Interest expense, net

 

 

25

 

 

36

 

 

127

 

 

133

 

Interest income

 

 

(1)

 

 

(2)

 

 

(2)

 

 

(3)

 

Depreciation and amortization

 

 

74

 

 

95

 

 

221

 

 

274

 

EBITDA

 

$

112

 

$

192

 

$

311

 

$

725

 

Income from discontinued operations, net of tax

 

 

 

 

(1)

 

 

 

 

(337)

 

Transaction and integration related expense

 

 

1

 

 

2

 

 

1

 

 

6

 

Impairment loss

 

 

 

 

 

 

 

 

14

 

Reduction of gain on sale leaseback

 

 

 

 

4

 

 

 

 

4

 

Gain on remeasurement of Vricon equity interest

 

 

 

 

(85)

 

 

 

 

(85)

 

Total Adjusted EBITDA

 

$

113

 

$

112

 

$

312

 

$

327

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

Earth Intelligence

 

 

124

 

 

128

 

 

362

 

 

407

 

Space Infrastructure

 

 

14

 

 

12

 

 

29

 

 

(16)

 

Intersegment eliminations

 

 

(5)

 

 

(7)

 

 

(17)

 

 

(21)

 

Corporate and other expenses

 

 

(20)

 

 

(21)

 

 

(62)

 

 

(43)

 

Total Adjusted EBITDA

 

$

113

 

$

112

 

$

312

 

$

327

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) margin

 

 

3.2

%

 

19.5

%

 

(1.9)

%

 

27.3

%

Total Adjusted EBITDA margin

 

 

25.9

%

 

25.7

%

 

24.0

%

 

26.0

%


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