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 $25 million from $23 million, or by $2 million, for the three months ended March 31, 2022, compared to the same period in 2021. The increase was primarily driven by an increase in stock-based compensation expense of $3 million for the three months ended March 31, 2022, which was primarily due to incremental expense related to liability classified awards.
Intersegment eliminations
Intersegment eliminations are related to projects between our segments, including the construction of our WorldView Legion satellites. Intersegment eliminations increased to $9 million from $5 million, or by $4 million, for the three months ended March 31, 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) |
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|
|
Three Months Ended |
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|
|
March 31, |
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|
|
2022 |
|
2021 |
||||
Revenues: |
|
|
|
|
|
|
||
Product |
|
$ |
154 |
|
|
$ |
142 |
|
Service |
|
|
251 |
|
|
|
250 |
|
Total revenues |
|
|
405 |
|
|
|
392 |
|
Costs and expenses: |
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|
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||
Product costs, excluding depreciation and amortization |
|
|
127 |
|
|
|
148 |
|
Service costs, excluding depreciation and amortization |
|
|
93 |
|
|
|
93 |
|
Selling, general and administrative |
|
|
104 |
|
|
|
84 |
|
| Depreciation and amortization |
|
|
68 |
|
|
|
74 |
|
| Operating income (loss) |
|
|
13 |
|
|
|
(7 |
) |
| Interest expense, net |
|
|
23 |
|
|
|
78 |
|
| Other income, net |
|
|
(3 |
) |
|
|
(1 |
) |
| Loss before taxes |
|
|
(7 |
) |
|
|
(84 |
) |
| Income tax (benefit) expense |
|
|
— |
|
|
|
— |
|
| Net loss |
|
$ |
(7 |
) |
|
$ |
(84 |
) |
|
|
|
|
|
|
|
|
||
| Net loss per common share: |
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|
|
|
|
|
||
| Basic |
|
$ |
(0.10 |
) |
|
$ |
(1.30 |
) |
| Diluted |
|
$ |
(0.10 |
) |
|
$ |
(1.30 |
) |
| MAXAR TECHNOLOGIES INC. Unaudited Condensed Consolidated Balance Sheets (In millions, except per share amounts) |
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|
March 31, |
|
December 31, |
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|
|
|
2022 |
|
2021 |
||||
| Assets |
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|
|
|
|
|
||
| Current assets: |
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|
|
|
|
|
||
| Cash and cash equivalents |
|
$ |
22 |
|
|
$ |
47 |
|
| Trade and other receivables, net |
|
|
333 |
|
|
|
355 |
|
| Inventory, net |
|
|
36 |
|
|
|
39 |
|
| Advances to suppliers |
|
|
25 |
|
|
|
31 |
|
| Prepaid assets |
|
|
31 |
|
|
|
35 |
|
| Other current assets |
|
|
22 |
|
|
|
22 |
|
| Total current assets |
|
|
469 |
|
|
|
529 |
|
| Non-current assets: |
|
|
|
|
|
|
||
| Orbital receivables, net |
|
|
362 |
|
|
|
368 |
|
| Property, plant and equipment, net |
|
|
968 |
|
|
|
940 |
|
| Intangible assets, net |
|
|
761 |
|
|
|
787 |
|
| Non-current operating lease assets |
|
|
138 |
|
|
|
145 |
|
| Goodwill |
|
|
1,627 |
|
|
|
1,627 |
|
| Other non-current assets |
|
|
115 |
|
|
|
102 |
|
| Total assets |
|
$ |
4,440 |
|
|
$ |
4,498 |
|
| Liabilities and stockholders’ equity |
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|
|
|
|
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||
| Current liabilities: |
|
|
|
|
|
|
||
| Accounts payable |
|
$ |
81 |
|
|
$ |
75 |
|
| Accrued liabilities |
|
|
62 |
|
|
|
43 |
|
| Accrued compensation and benefits |
|
|
71 |
|
|
|
111 |
|
| Contract liabilities |
|
|
250 |
|
|
|
289 |
|
| Current portion of long-term debt |
|
|
29 |
|
|
|
24 |
|
| Current operating lease liabilities |
|
|
40 |
|
|
|
42 |
|
| Other current liabilities |
|
|
37 |
|
|
|
38 |
|
| Total current liabilities |
|
|
570 |
|
|
|
622 |
|
| Non-current liabilities: |
|
|
|
|
|
|
||
| Pension and other postretirement benefits |
|
|
131 |
|
|
|
134 |
|
| Operating lease liabilities |
|
|
133 |
|
|
|
138 |
|
| Long-term debt |
|
|
2,060 |
|
|
|
2,062 |
|
| Other non-current liabilities |
|
|
71 |
|
|
|
79 |
|
| Total liabilities |
|
|
2,965 |
|
|
|
3,035 |
|
| Commitments and contingencies |
|
|
|
|
|
|
||
| Stockholders’ equity: |
|
|
|
|
|
|
||
| Common stock ($0.0001 par value, 240 million common shares authorized; 73.4 million and 72.7 million issued and outstanding at March 31, 2022 and December 31, 2021, respectively) |
|
|
— |
|
|
|
— |
|
| Additional paid-in capital |
|
|
2,243 |
|
|
|
2,235 |
|
| Accumulated deficit |
|
|
(727 |
) |
|
|
(720 |
) |
| Accumulated other comprehensive loss |
|
|
(42 |
) |
|
|
(53 |
) |
| Total Maxar stockholders' equity |
|
|
1,474 |
|
|
|
1,462 |
|
| Noncontrolling interest |
|
|
1 |
|
|
|
1 |
|
| Total stockholders' equity |
|
|
1,475 |
|
|
|
1,463 |
|
| Total liabilities and stockholders' equity |
|
$ |
4,440 |
|
|
$ |
4,498 |
|
| MAXAR TECHNOLOGIES INC. Unaudited Condensed Consolidated Statements of Cash Flows (In millions) |
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|
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|
Three Months Ended |
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|
|
|
March 31, |
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|
|
|
2022 |
|
2021 |
||||
| Cash flows (used in) provided by: |
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|
|
|
|
|
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| Operating activities: |
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|
|
|
|
|
||
| Net loss |
|
$ |
(7 |
) |
|
$ |
(84 |
) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
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|
|
|
|
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||
| Depreciation and amortization |
|
|
68 |
|
|
|
74 |
|
| Stock-based compensation expense |
|
|
15 |
|
|
|
11 |
|
| Amortization of debt issuance costs and other non-cash interest expense |
|
|
3 |
|
|
|
4 |
|
| Loss from early extinguishment of debt |
|
|
— |
|
|
|
41 |
|
| Cumulative adjustment to SXM-7 revenue |
|
|
— |
|
|
|
25 |
|
| Other |
|
|
5 |
|
|
|
4 |
|
| Changes in operating assets and liabilities: |
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|
|
|
|
|
||
| Trade and other receivables, net |
|
|
29 |
|
|
|
3 |
|
| Accounts payable and liabilities |
|
|
(25 |
) |
|
|
(49 |
) |
| Contract liabilities |
|
|
(39 |
) |
|
|
6 |
|
| Other |
|
|
(1 |
) |
|
|
(8 |
) |
| Cash provided by operating activities |
|
|
48 |
|
|
|
27 |
|
| Investing activities: |
|
|
|
|
|
|
||
| Purchase of property, plant and equipment and development or purchase of software |
|
|
(64 |
) |
|
|
(50 |
) |
| Acquisition of investment |
|
|
(2 |
) |
|
|
— |
|
| Cash used in investing activities |
|
|
(66 |
) |
|
|
(50 |
) |
| Financing activities: |
|
|
|
|
|
|
||
| Net proceeds of revolving credit facility |
|
|
— |
|
|
|
25 |
|
| Repurchase of 2023 Notes, including premium |
|
|
— |
|
|
|
(384 |
) |
| Net proceeds from issuance of common stock |
|
|
— |
|
|
|
380 |
|
| Settlement of securitization liability |
|
|
(4 |
) |
|
|
(3 |
) |
| Repayments of long-term debt |
|
|
(1 |
) |
|
|
(2 |
) |
| Other |
|
|
(2 |
) |
|
|
1 |
|
| Cash (used in) provided by financing activities |
|
|
(7 |
) |
|
|
17 |
|
| Decrease in cash, cash equivalents, and restricted cash |
|
|
(25 |
) |
|
|
(6 |
) |
| Effect of foreign exchange on cash, cash equivalents, and restricted cash |
|
|
— |
|
|
|
— |
|
| Cash, cash equivalents, and restricted cash, beginning of year |
|
|
48 |
|
|
|
32 |
|
| Cash, cash equivalents, and restricted cash, end of period |
|
$ |
23 |
|
|
$ |
26 |
|
|
|
|
|
|
|
|
|
||
| Reconciliation of cash flow information: |
|
|
|
|
|
|
||
| Cash and cash equivalents |
|
$ |
22 |
|
|
$ |
22 |
|
| Restricted cash included in prepaid and other current assets |
|
|
1 |
|
|
|
4 |
|
| Total cash, cash equivalents, and restricted cash |
|
$ |
23 |
|
|
$ |
26 |
|
