Maxar Technologies reports fourth quarter and year end 2017 results

SAN FRANCISCO and VANCOUVER, Feb. 22, 2018 — (PRNewswire) —  Maxar Technologies Ltd. ("Maxar" or the "Company", formerly MacDonald, Dettwiler and Associates Ltd.), (NYSE and TSX: MAXR), a leading global provider of advanced space technology solutions for commercial and government markets, today reported financial results for the fourth quarter and year end December 31, 2017.

Effective with the fourth quarter of 2017, we have changed our reporting currency from the Canadian dollar to the U.S. dollar as the vast majority of our revenue, earnings and assets are based in U.S. dollars following the closing of the DigitalGlobe acquisition. Accordingly, all dollar amounts in this press release are expressed in U.S. dollars unless otherwise noted. Refer to the section entitled "Consolidated Results in Canadian Dollars" later in this press release for further information on our financial results in Canadian dollars.

Highlights from the quarter include:

  • Consolidated revenue of $545.1 million
  • Adjusted EBITDA of $180.9 million and margins of 33.2%
  • Adjusted earnings of $66.5 million and adjusted earnings per share of $1.19
  • Net earnings of $64.5 million and net earnings per share of $1.15

"We wrapped up a very busy year with a good quarter. The highlights included closing the DigitalGlobe transaction, renaming the company Maxar Technologies and dual-listing on the Toronto and New York Stock Exchanges as MAXR. We've created a unique integrated space and geospatial intelligence company with end-to-end solutions expertise to serve both commercial and government markets," stated Howard L. Lance, President and Chief Executive Officer. "We're making steady progress on delivering revenue and cost synergies of $55-110 million in EBITDA to be achieved by the end of 2019 and I'm pleased to report that we have now included run rate $25 million in our 2018 outlook as these potential benefits have become a reality," he added. "Furthermore, we continue to make progress on our U.S. Access plan, with several new program awards and our facility clearance for the Palo Alto, CA satellite factory now being achieved. This paves the way to capture revenue opportunities in the months and years ahead. Finally, we made several key executive hires that have rounded out our senior team."

"The year ended on solid footing, with the company generating solid cash flows from operating activities and achieving a net debt-to-EBITDA ratio of 4.0, well under our covenant ceiling with our lenders and below our prior forecast," stated William McCombe, Executive Vice President and Chief Financial Officer. "As mentioned earlier, we changed our reporting currency to U.S. dollars effective with the fourth quarter. We also changed our reporting segments to recognize the distinctive nature and margin profiles of our Space Systems, Imagery and Services offering across our four brands," he added. "We are providing unaudited pro forma historical income statements by quarter for 2017 and 2016, in U.S. dollars, and using the new reporting segments, as if the former DigitalGlobe and Maxar businesses had been combined. We believe this provides relevant trend data to better understand Maxar's current financial results and the context for our 2018 guidance."

For the fourth quarter of 2017, consolidated revenue was $545.1 million compared to $376.6 million in 2016. Revenue increased from the acquisition of DigitalGlobe on October 5, 2017, offset in part by lower revenue from the company's Space Systems segment.

For the full year 2017, consolidated revenue was $1,631.2 million in 2017 compared to $1,557.5 million in 2016. Revenue increased due to the inclusion of DigitalGlobe revenue of $221.6 million for the period October 5, 2017 to December 31, 2017 and from higher revenue from contracts with the U.S. government and other customers to supply spacecraft and perform design studies for scientific research and development missions. These increases in revenue were partially offset by lower revenue from geostationary communications satellite construction activity compared to the prior year. The Space Systems segment contributed revenue of $1,259.6 million (2016 - $1,417.2 million), the Imagery segment contributed revenue of $228.4 million (2016 - $41.0 million) and the Services segment contributed revenue of $143.2 million (2016 - $99.3 million).

Adjusted EBITDA for the fourth quarter of 2017 was $180.9 million and EBITDA margins were 33.2%, compared to $66.3 million and 17.6% for the same period of last year. The EBITDA increase was driven largely by the DigitalGlobe acquisition referenced above offset in part by lower EBITDA from the Company's Space Systems segment.

For the full year 2017, adjusted EBITDA was $378.7 million and adjusted EBITDA margin was 23.2%. Excluding the contribution from DigitalGlobe for the period Oct 5, 2017 to Dec 31, 2017, adjusted EBITDA in 2017 would have been $252.7 million and adjusted EBITDA margin percentage would have been 17.9%. This is compared to adjusted EBITDA of $267.6 million and adjusted EBITDA margin percentage of 17.2% for 2016. The increase in margin percentage was mainly due to a change in the mix of revenue between our various lines of business within our operating segments.

Adjusted earnings for the fourth quarter of 2017 were $66.5 million, or $1.19 per share, compared to $38.6 million, or $1.06 per share, for the same period of last year. On a full-year basis, adjusted earnings excluding the impact of specified items affecting comparability, was $172.0 million or $4.16 per share for 2017 compared to $159.5 million or $4.37 per share for 2016.

The Company declared a quarterly dividend of C$0.37 per common share payable on March 29, 2018 to shareholders of record at the close of business on March 15, 2018.

The following table provides selected fourth quarter and annual financial information for fiscal years 2017 and 2016.

Results of Operations

Three months ended
December 31,

Twelve months ended
December 31,





($ millions, except per common share amounts)

Consolidated revenues





Adjusted EBITDA 1





Adjusted earnings 1





Adjusted earnings per share 1





Net earnings





Net earnings per share, basic





Net earnings per share, diluted





Weighted average number of common shares outstanding:












1 Non-IFRS financial measure. 

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