MAXAR TECHNOLOGIES INC. | ||||||||||||
Unaudited Condensed Consolidated Statements of Operations |
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(In millions of United States dollars, except per share amounts) |
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Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2019 | 2018 | |||||||||||
Revenues: | ||||||||||||
Product | $ | 194 | $ | 228 | ||||||||
Service | 310 | 329 | ||||||||||
Total revenues | 504 | 557 | ||||||||||
Costs and expenses: | ||||||||||||
Product costs, excluding depreciation and amortization | 197 | 187 | ||||||||||
Service costs, excluding depreciation and amortization | 110 | 119 | ||||||||||
Selling, general and administrative | 103 | 103 | ||||||||||
Depreciation and amortization | 98 | 111 | ||||||||||
Operating (loss) income | (4 | ) | 37 | |||||||||
Interest expense, net | 49 | 53 | ||||||||||
Other expense, net | 6 | 1 | ||||||||||
(Loss) before taxes | (59 | ) | (17 | ) | ||||||||
Income tax benefit | (1 | ) | (32 | ) | ||||||||
Equity in loss from joint ventures, net of tax | 1 | — | ||||||||||
Net (loss) income | $ | (59 | ) | $ | 15 | |||||||
(Loss) earnings per common share: | ||||||||||||
Basic | $ | (0.99 | ) | $ | 0.27 | |||||||
Diluted | $ | (0.99 | ) | $ | 0.26 | |||||||
MAXAR TECHNOLOGIES INC. | ||||||||||||
Unaudited Condensed Consolidated Balance Sheets |
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(In millions of United States dollars, except per share amounts) |
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March 31, |
December 31, | |||||||||||
2019 | 2018 | |||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 45 | $ | 35 | ||||||||
Trade and other receivables, net | 467 | 464 | ||||||||||
Inventory | 26 | 31 | ||||||||||
Advances to suppliers | 17 | 42 | ||||||||||
Income taxes receivable | 16 | 14 | ||||||||||
Prepaid and other current assets | 61 | 51 | ||||||||||
Total current assets | 632 | 637 | ||||||||||
Non-current assets: | ||||||||||||
Orbital receivables | 400 | 407 | ||||||||||
Deferred tax assets | 108 | 103 | ||||||||||
Property, plant and equipment, net | 768 | 747 | ||||||||||
Intangible assets, net | 1,175 | 1,232 | ||||||||||
Non-current operating lease assets | 129 | — | ||||||||||
Goodwill | 1,751 | 1,751 | ||||||||||
Other assets | 115 | 124 | ||||||||||
Total assets | $ | 5,078 | $ | 5,001 | ||||||||
Liabilities and stockholders’ equity | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 190 | $ | 209 | ||||||||
Accrued liabilities | 62 | 116 | ||||||||||
Accrued compensation and benefits | 101 | 100 | ||||||||||
Contract liabilities | 309 | 361 | ||||||||||
Current portion of long-term debt | 19 | 17 | ||||||||||
Current operating lease liabilities | 33 | — | ||||||||||
Other current liabilities | 52 | 46 | ||||||||||
Total current liabilities | 766 | 849 | ||||||||||
Non-current liabilities: | ||||||||||||
Pension and other postretirement benefits | 194 | 196 | ||||||||||
Contract liabilities | 43 | 60 | ||||||||||
Operating lease liabilities | 137 | — | ||||||||||
Long-term debt | 3,174 | 3,030 | ||||||||||
Other non-current liabilities | 184 | 222 | ||||||||||
Total liabilities | 4,498 | 4,357 | ||||||||||
Stockholders’ equity: | ||||||||||||
Common stock ($0.0001 par value, 240 million common shares authorized and 59.6 million outstanding at March 31, 2019; nil par value, unlimited authorized common shares and 59.4 million outstanding at December 31, 2018) | — | 1,713 | ||||||||||
Additional paid-in capital | 1,774 | 59 | ||||||||||
Accumulated deficit | (1,271 | ) | (1,211 | ) | ||||||||
Accumulated other comprehensive income | 76 | 82 | ||||||||||
Total Maxar stockholders' equity | 579 | 643 | ||||||||||
Noncontrolling interest | 1 | 1 | ||||||||||
Total stockholders' equity | 580 | 644 | ||||||||||
Total liabilities and stockholders' equity | $ | 5,078 | $ | 5,001 | ||||||||
MAXAR TECHNOLOGIES INC. | ||||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows |
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(In millions of United States dollars) |
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Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2019 | 2018 | |||||||||||
Cash flows provided by (used in): | ||||||||||||
Operating activities: | ||||||||||||
Net (loss) income | $ | (59 | ) | $ | 15 | |||||||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||||||
Depreciation of property, plant and equipment | 30 | 37 | ||||||||||
Amortization of intangible assets | 68 | 74 | ||||||||||
Stock-based compensation expense (recovery) | 1 | (1 | ) | |||||||||
Amortization of debt issuance costs and other noncash interest expense | 2 | 2 | ||||||||||
Inventory impairment | 3 | — | ||||||||||
Foreign exchange losses | 6 | 1 | ||||||||||
Deferred income tax (benefit) | — | (24 | ) | |||||||||
Other | 4 | 2 | ||||||||||
Changes in operating assets and liabilities: | ||||||||||||
Trade and other receivables | 6 | (35 | ) | |||||||||
Accrued compensation and benefits | 1 | (26 | ) | |||||||||
Trade and other payables | (11 | ) | (47 | ) | ||||||||
Accrued liabilities | (56 | ) | 22 | |||||||||
Contract liabilities | (71 | ) | (26 | ) | ||||||||
Advances to suppliers | 25 | 15 | ||||||||||
Deferred tax assets | (5 | ) | (18 | ) | ||||||||
Deferred tax liabilities | 2 | 31 | ||||||||||
Other liabilities | 4 | (28 | ) | |||||||||
Other | (8 | ) | (7 | ) | ||||||||
Cash used in operating activities | (58 | ) | (13 | ) | ||||||||
Investing activities: | ||||||||||||
Purchase of property, plant and equipment | (59 | ) | (43 | ) | ||||||||
Purchase or development of intangible assets | (14 | ) | (17 | ) | ||||||||
Disposal of subsidiary and short-term investments | — | 5 | ||||||||||
Cash used in investing activities | (73 | ) | (55 | ) | ||||||||
Financing activities: | ||||||||||||
Net proceeds from revolving credit facility | 150 | 90 | ||||||||||
Repayments of long-term debt | (6 | ) | (5 | ) | ||||||||
Settlement of securitization liability | (4 | ) | (4 | ) | ||||||||
Payment of dividends | (1 | ) | (16 | ) | ||||||||
Change in overdraft balance | — | 2 | ||||||||||
Cash provided by financing activities | 139 | 67 | ||||||||||
Increase (decrease) in cash, cash equivalents, and restricted cash | 8 | (1 | ) | |||||||||
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 | $ | 52 | $ | 41 | ||||||||
Reconciliation of cash flow information: | ||||||||||||
Cash and cash equivalents | 45 | 25 | ||||||||||
Restricted cash included in prepaid and other current assets | 6 | 7 | ||||||||||
Restricted cash included in other assets | 1 | 9 | ||||||||||
Total cash, cash equivalents, and restricted cash | $ | 52 | $ | 41 | ||||||||