Adjusted EBITDA was $6 million for both the three months ended June 30, 2019 and 2018. The impact of the increase in revenues on Adjusted EBITDA which was partially offset by a change in an expense related to a lease.
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 for the three months ended June 30, 2019, were $18 million compared to $12 million for the same period of 2018. The increase of $6 million or 50% is primarily attributable to a $6 million increase in retention costs, a $2 million increase in selling, general and administrative expenses which were partially offset by $6 million in higher foreign exchange gains.
MAXAR TECHNOLOGIES INC. |
||||||||||||||||
Unaudited Condensed Consolidated Statements of Operations |
||||||||||||||||
(In millions of United States dollars, except per share amounts) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product |
|
$ |
190 |
|
|
$ |
257 |
|
|
$ |
384 |
|
|
$ |
485 |
|
Service |
|
|
300 |
|
|
|
322 |
|
|
|
610 |
|
|
|
651 |
|
Total revenues |
|
$ |
490 |
|
|
$ |
579 |
|
|
$ |
994 |
|
|
$ |
1,136 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product costs, excluding depreciation and amortization |
|
$ |
165 |
|
|
$ |
254 |
|
|
$ |
362 |
|
|
$ |
441 |
|
Service costs, excluding depreciation and amortization |
|
|
121 |
|
|
|
77 |
|
|
|
231 |
|
|
|
196 |
|
Selling, general and administrative |
|
|
80 |
|
|
|
133 |
|
|
|
183 |
|
|
|
236 |
|
Depreciation and amortization |
|
|
99 |
|
|
|
113 |
|
|
|
197 |
|
|
|
224 |
|
Impairment losses |
|
|
12 |
|
|
|
— |
|
|
12 |
|
|
|
— |
||
Satellite insurance recovery |
|
|
(183 |
) |
|
|
— |
|
|
(183 |
) |
|
|
— |
||
Operating income |
|
|
196 |
|
|
|
2 |
|
|
|
192 |
|
|
|
39 |
|
Interest expense, net |
|
|
49 |
|
|
|
50 |
|
|
|
98 |
|
|
|
103 |
|
Other (income) expense, net |
|
|
(3 |
) |
|
|
4 |
|
|
|
3 |
|
|
|
5 |
|
Income (loss) before taxes |
|
|
150 |
|
|
|
(52 |
) |
|
|
91 |
|
|
|
(69 |
) |
Income tax expense (benefit) |
|
|
2 |
|
|
|
(9 |
) |
|
|
1 |
|
|
|
(41 |
) |
Equity in loss (income) from joint ventures, net of tax |
|
|
2 |
|
|
|
(3 |
) |
|
|
3 |
|
|
|
(3 |
) |
Net income (loss) |
|
$ |
146 |
|
|
$ |
(40 |
) |
|
$ |
87 |
|
|
$ |
(25 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
2.45 |
|
|
$ |
(0.70 |
) |
|
$ |
1.46 |
|
|
$ |
(0.44 |
) |
Diluted |
|
$ |
2.45 |
|
|
$ |
(0.70 |
) |
|
$ |
1.46 |
|
|
$ |
(0.44 |
) |
MAXAR TECHNOLOGIES INC. |
||||||||
Unaudited Condensed Consolidated Balance Sheets |
||||||||
(In millions of United States dollars, except per share amounts) |
||||||||
|
|
|
|
|
|
|
||
|
|
June 30, |
|
December 31, |
||||
|
|
2019 |
|
2018 |
||||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
63 |
|
|
$ |
35 |
|
Trade and other receivables, net |
|
|
490 |
|
|
|
464 |
|
Inventory |
|
|
24 |
|
|
|
31 |
|
Advances to suppliers |
|
|
10 |
|
|
|
42 |
|
Income taxes receivable |
|
|
24 |
|
|
|
14 |
|
Prepaid and other current assets |
|
|
54 |
|
|
|
51 |
|
Total current assets |
|
|
665 |
|
|
|
637 |
|
Non-current assets: |
|
|
|
|
|
|
||
Orbital receivables |
|
|
405 |
|
|
|
407 |
|
Deferred tax assets |
|
|
112 |
|
|
|
103 |
|
Property, plant and equipment, net |
|
|
785 |
|
|
|
747 |
|
Intangible assets, net |
|
|
1,120 |
|
|
|
1,232 |
|
Non-current operating lease assets |
|
|
124 |
|
|
|
— |
|
Goodwill |
|
|
1,763 |
|
|
|
1,751 |
|
Other assets |
|
|
109 |
|
|
|
124 |
|
Total assets |
|
$ |
5,083 |
|
|
$ |
5,001 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
172 |
|
|
$ |
209 |
|
Accrued liabilities |
|
|
58 |
|
|
|
116 |
|
Accrued compensation and benefits |
|
|
82 |
|
|
|
100 |
|
Contract liabilities |
|
|
267 |
|
|
|
361 |
|
Current portion of long-term debt |
|
|
17 |
|
|
|
17 |
|
Current operating lease liabilities |
|
|
33 |
|
|
|
— |
|
Other current liabilities |
|
|
56 |
|
|
|
46 |
|
Total current liabilities |
|
|
685 |
|
|
|
849 |
|
Non-current liabilities: |
|
|
|
|
|
|
||
Pension and other postretirement benefits |
|
|
192 |
|
|
|
196 |
|
Contract liabilities |
|
|
29 |
|
|
|
60 |
|
Operating lease liabilities |
|
|
133 |
|
|
|
— |
|
Long-term debt |
|
|
3,127 |
|
|
|
3,030 |
|
Other non-current liabilities |
|
|
186 |
|
|
|
222 |
|
Total liabilities |
|
|
4,352 |
|
|
|
4,357 |
|
Stockholders’ equity: |
|
|
|
|
|
|
||
Common stock ($0.0001 par value, 240 million common shares authorized and 59.6 million outstanding at
|
|
|
— |
|
|
1,713 |
|
|
Additional paid-in capital |
|
|
1,776 |
|
|
|
59 |
|
Accumulated deficit |
|
|
(1,125 |
) |
|
|
(1,211 |
) |
Accumulated other comprehensive income |
|
|
79 |
|
|
|
82 |
|
Total Maxar stockholders' equity |
|
|
730 |
|
|
|
643 |
|
Noncontrolling interest |
|
|
1 |
|
|
|
1 |
|
Total stockholders' equity |
|
|
731 |
|
|
|
644 |
|
Total liabilities and stockholders' equity |
|
$ |
5,083 |
|
|
$ |
5,001 |
|
MAXAR TECHNOLOGIES INC. |
|||||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows |
|||||||||||||
(In millions of United States dollars) |
|||||||||||||
|
|
|
|
|
|
|
|||||||
|
|
Six Months Ended |
|||||||||||
|
|
June 30, |
|||||||||||
|
|
2019 |
|
2018 |
|||||||||
Cash flows provided by (used in): |
|
|
|
|
|
|
|||||||
Operating activities: |
|
|
|
|
|
|
|||||||
Net income (loss) |
|
$ |
87 |
|
|
$ |
(25 |
) |
|||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
|
|
|
|||||||
Depreciation of property, plant and equipment |
|
|
60 |
|
|
|
78 |
|
|||||
Amortization of intangible assets |
|
|
137 |
|
|
|
146 |
|
|||||
Stock-based compensation expense |
|
|
4 |
|
|
|
9 |
|
|||||
Amortization of debt issuance costs and other noncash interest expense |
|
|
4 |
|
|
|
5 |
|
|||||
Impairment losses |
|
|
15 |
|
|
|
— |
||||||
Foreign exchange losses |
|
|
3 |
|
|
|
8 |
|
|||||
Deferred income tax expense (benefit) |
|
|
6 |
|
|
|
(26 |
) |
|||||
Other |
|
|
(3 |
) |
|
|
6 |
|
|||||
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|||||||
Trade and other receivables |
|
|
(12 |
) |
|
|
(64 |
) |
|||||
Accrued compensation and benefits |
|
|
(22 |
) |
|
|
(15 |
) |
|||||
Trade and other payables |
|
|
(35 |
) |
|
|
(31 |
) |
|||||
Accrued liabilities |
|
|
(60 |
) |
|
|
24 |
|
|||||
Contract liabilities |
|
|
(126 |
) |
|
|
(113 |
) |
|||||
Advances to suppliers |
|
|
32 |
|
|
|
20 |
|
|||||
Deferred tax assets |
|
|
(9 |
) |
|
|
(14 |
) |
|||||
Deferred tax liabilities |
|
|
(5 |
) |
|
|
27 |
|
|||||
Other liabilities |
|
|
(7 |
) |
|
|
(17 |
) |
|||||
Other |
|
|
(10 |
) |
|
|
(19 |
) |
|||||
Cash provided by (used in) operating activities |
|
|
59 |
|
|
|
(1 |
) |
|||||
|
|
|
|
|
|
|
|||||||
Investing activities: |
|
|
|
|
|
|
|||||||
Purchase of property, plant and equipment |
|
|
(99 |
) |
|
|
(83 |
) |
|||||
Purchase or development of software |
|
|
(28 |
) |
|
|
(37 |
) |
|||||
Cash collected on note receivable |
|
|
— |
|
|
5 |
|
||||||
Disposal of subsidiary and short-term investments |
|
|
3 |
|
|
|
5 |
|
|||||
Cash used in investing activities |
|
|
(124 |
) |
|
|
(110 |
) |
|||||
|
|
|
|
|
|
|
|||||||
Financing activities: |
|
|
|
|
|
|
|||||||
Net proceeds from revolving credit facility |
|
|
112 |
|
|
|
141 |
|
|||||
Repayments of long-term debt |
|
|
(13 |
) |
|
|
(13 |
) |
|||||
Settlement of securitization liability |
|
|
(8 |
) |
|
|
(6 |
) |
|||||
Payment of dividends |
|
|
(1 |
) |
|
|
(32 |
) |
|||||
Change in overdraft balance |
|
|
— |
|
|
1 |
|
||||||
Cash provided by financing activities |
|
|
90 |
|
|
|
91 |
|
|||||
Increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
25 |
|
|
|
(20 |
) |
|||||
Effect of foreign exchange on cash, cash equivalents, and restricted cash |
|
|
1 |
|
|
|
— |
||||||
Cash, cash equivalents, and restricted cash, beginning of year |
|
|
43 |
|
|
|
42 |
|
|||||
Cash, cash equivalents, and restricted cash, end of period |
|
$ |
69 |
|
|
$ |
22 |
|
|||||
|
|
|
|
|
|
|
|||||||
Reconciliation of cash flow information: |
|
|
|
|
|
|
|||||||
Cash and cash equivalents |
|
$ |
63 |
|
|
$ |
12 |
|
|||||
Restricted cash included in prepaid and other current assets |
|
|
5 |
|
|
|
9 |
|
|||||
Restricted cash included in other assets |
|
|
1 |
|
|
|
1 |
|
|||||
Total cash, cash equivalents, and restricted cash |
|
$ |
69 |
|
|
$ |
22 |
|