Maxar Technologies reports third quarter 2020 results

Total revenues from continuing operations increased to $436 million from $413 million, or by $23 million, for the three months ended September 30, 2020, compared to the same period of 2019.

Maxar Technologies reports third quarter 2020 results
Maxar Technologies reports third quarter 2020 results

Maxar Technologies reports third quarter 2020 results

Maxar Technologies, a trusted partner and innovator in Earth Intelligence and Space Infrastructure, announced financial results for the quarter ended September 30, 2020.

Key points from the quarter include:

  • Consolidated revenues from continuing operations of $436 million
  • Net income of $85 million, including an $85 million gain on remeasurement of the previously held equity interest in Vricon
  • Diluted income per share from continuing operations of $1.32
  • Adjusted EBITDAfrom continuing operations of $112 million and Adjusted EBITDAmargin of 25.7%
  • Closed the acquisition of Vricon, Inc. to purchase the remaining 50% ownership interest on July 1, 2020

This is a non-GAAP financial measure.

“We generated solid year-over-year revenue growth this quarter as demand has remained resilient and our customers continue to rely on us for important national security and commercial missions. We also enjoyed significant backlog growth on a diversified set of awards with both government and commercial customers across our Earth Intelligence and Space Infrastructure segments,” said Dan Jablonsky, CEO.

“Our results this quarter further reflect progress on our multi-year strategy to position Maxar for sustained revenue, profit and cash flow growth. We are executing well against our strategic priorities for the year while continuing to respond to the global COVID-19 pandemic by focusing on the protection of the health and safety of our team members, families, customers and communities.”

“Our leverage continued to improve this quarter and we ended the quarter with over $500 million in liquidity, which we believe provides ample flexibility to execute on our multi-year growth plan,” stated Biggs Porter, CFO.

“Performance in the quarter was solid, with both year-over-year revenue and profit growth on a consolidated basis and positive free cash flow. While the existence of the COVID pandemic remains a risk to our operations and the operations of our customers, we have thus far been able to manage the crisis roughly in line with expectations. Given that, we are maintaining our outlook for 2020 consolidated revenue, Adjusted EBITDA, and Capex, and we are tightening the range of guidance for operating cash flow.”

Total revenues from continuing operations increased to $436 million from $413 million, or by $23 million, for the three months ended September 30, 2020, compared to the same period of 2019. The increase was primarily driven by an increase in the Space Infrastructure segment which was partially offset by a decrease in the Earth Intelligence segment. 

For the three months ended September 30, 2020, net income from continuing operations was $85 million compared to a net loss of $25 million in the same period of 2019. The increase was primarily driven by an $85 million gain on remeasurement of the previously held equity interest in Vricon and an increase in revenues.

For the third quarter of 2020, Adjusted EBITDA was $112 million and Adjusted EBITDA as a percentage of consolidated revenues (“Adjusted EBITDA margin percentage”) was 25.7%. This is compared to Adjusted EBITDA of $109 million and Adjusted EBITDA margin percentage of 26.4% for the third quarter of 2019. The increase was driven largely by higher Adjusted EBITDA from the Space Infrastructure segment partially offset by lower Adjusted EBITDA from the Earth Intelligence segment. More details here.