Maxar Reports a Year of Revenue Decline
Maxar Technologies’ financial results for the Fourth Quarter (Q4) capped off a year of revenue decline as the company reported revenues of $410 million for Q4, down about 2% compared to the same time period in 2018. Maxar attributed the decrease to a net decrease in revenues in the Space Infrastructure segment. For the full year 2019, total revenues from continuing operations decreased to $1,666 million from $1,804 million in 2018, a decline of about 7.7%. The company attributed year’s revenue decline to a decrease in revenue in the Space Infrastructure segment, but said it was partially offset by an increase in revenue in the Earth Intelligence segment.
For Q4 of 2019, Adjusted EBITDA was $100 million and Adjusted EBITDA as a percentage of consolidated revenues was 24.4%. This compares to Adjusted EBITDA of $70 million and Adjusted EBITDA margin percentage of 16.7% for Q4 of 2018. Maxar attributed the increase to higher Adjusted EBITDA from the Earth Intelligence and Space Infrastructure segments, partially offset by higher corporate and other expenses.
Maxar highlighted the agreement it reached in December with Northern Private Capital to sell Canada-based subsidiary MDA for $765 million. The company said it expects to use the net proceeds to repay debt and improve capital structure to invest in the areas of Earth Intelligence and Space Infrastructure. The transaction is expected to close in the spring or early summer of this year.
“We made solid progress during the year in positioning Maxar for sustained top and bottom-line growth, including efforts to reduce debt and leverage levels, re-engineer the Space Infrastructure business, position our Earth Intelligence and MDA businesses for long-term growth, and create a leaner, more agile organization with a reduced cost structure,” President and CEO Dan Jablonsky said.