Friday, May 10, 2019

Maxar Technologies Reports $504Mln US Consolidated Revenues and Net Loss of $0.99 US per share for Q1 2019

          By Chuck Black

Westminster CO based Maxar Technologies has reported a decrease in quarterly revenues due to "lackluster geostationary communication satellite sales," the wind down of new Canadian procurement requirements related to the now ready to launch RADARSAT Constellation Mission (RCM) and the recent loss of its Worldview-4 high-resolution imaging satellite.

The front cover of the twenty-three page powerpoint deck covering its Q1 2019 quarterly conference call. For the complete deck, check out the MAy 10th, 2019 Seeking Alpha post, "Maxar Technologies Inc. 2019 Q1 - Results - Earnings Call Slides." For a transcript of the call, check out the May 10th, 2019 Seeking Alpha post, "Maxar Technologies Inc. (MAXR) CEO Dan Jablonsky on Q1 2019 Results - Earnings Call Transcript." Graphic c/o Maxar. 

The comments were made by Maxar CEO Dan Jablonsky during a May 9th, 2019 Maxar earnings call. Other Maxar participants on the call included EVP/CFO  Biggs Porter and VP of investor relations Jason Gursky.

As outlined in the May 9th, 2019 Maxar press release, "Maxar Technologies Reports First Quarter 2019 Results," key points of the quarterly report included:
  • Consolidated revenues of $504Mln US ($677Mln CDN).
  • A net loss of $0.99 US ($1.33CDN) per share.
  • A adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA1) of $117Mln US ($157Mln CDN) with a adjusted EBITDA1 margin of 23%.
As outlined in the May 8th, 2019 Maxar Press release, "Maxar Board of Directors Approves Quarterly Dividend," Maxar has also issued a quarterly dividend of $0.01 US per share payable on June 28th, 2019 to shareholders of record as of the close of business on June 14th, 2019.

According to CEO Jablonsky, the company remains "laser focused" on reducing the $3.18Bln US ($4.27Bln CDN) debt load, built up during its acquisition of Westminster CO based DigitalGlobe in 2017.

Maxar stock prices dropped sharply after the release of the earnings report from a May 9th, 2019 high of $6.71 US to $5.98 on May 10th, but have since recovered slightly in moderate trading.

The jury is still out on whether Maxar acted prudently by retaining its geostationary communication satellite manufacturing facility and its quarterly dividend. Both cost money to retain and with a growing debt load, the company will likely need to reassess its choices in the near future.

Here's hoping that Maxar can pull a rabbit out of the hat sometime soon.
Chuck Black.

Chuck Black is the editor of the Commercial Space blog. 

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