Maxar Technologies Reports First Quarter 2022 Results

Earth Intelligence

 

Three Months Ended

 

 

March 31,

 

 

2022

 

2021

 

($ millions)

 

 

 

 

 

 

Revenues

$

251

 

$

250

 

Adjusted EBITDA

$

99

 

$

107

 

Adjusted EBITDA margin (as a % of total revenues)

 

39.4

%

 

42.8

%

Revenues from the Earth Intelligence segment increased to $251 million from $250 million, or by $1 million, for the three months ended March 31, 2022, compared to the same period in 2021. The increase was primarily driven by a $2 million increase in revenues from international defense and intelligence customers and a $1 million increase in revenues from commercial programs. These increases were partially offset by a $2 million decrease in revenues from the U.S. government.

Adjusted EBITDA decreased to $99 million from $107 million, or by $8 million, for the three months ended March 31, 2022, compared to the same period of 2021. The decrease was primarily related to an increase in selling, general and administrative costs, compared to the same period of 2021. The increase in selling, general and administrative costs was primarily due to an increase in labor related expenses driven by employee compensation and fringe benefits.

Space Infrastructure

 

Three Months Ended

 

March 31,

 

2022

 

2021

($ millions)

 

 

 

 

 

Revenues

$

44177

 

$

155

 

Adjusted EBITDA

$

19

 

$

(12

)

Adjusted EBITDA margin (as a % of total revenues)

 

10.7

%

 

(7.7

)%

Revenues from the Space Infrastructure segment increased to $177 million from $155 million, or by $22 million, for the three months ended March 31, 2022, compared to the same period in 2021. Revenues increased primarily as a result of a $28 million aggregate impact due to the non-performance of the SXM-7 satellite during the three months ended March 31, 2021, which did not reoccur in the same period in 2022. This increase was partially offset by a $3 million decrease in revenues from U.S. government contracts and a $2 million decrease in revenues from recurring commercial programs during the three months ended March 31, 2022.

Adjusted EBITDA in the Space Infrastructure segment increased to $19 million from a loss of $12 million, or by $31 million, for the three months ended March 31, 2022, compared to the same period of 2021. The increase was primarily related to the above-mentioned SXM-7 satellite impacts which did not reoccur in the same period in 2022. The increase was also driven by an $11 million decrease in indirect costs primarily due to reduced overhead costs during the three months ended March 31, 2022. These increases were partially offset by a $9 million increase in selling, general and administrative costs primarily due to an increase in labor related expenses driven by employee compensation, fringe benefits and an increase in efforts related to internal business projects. There was also an increase in sales and marketing expenses and research and development expenses.

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