What happened
Shares of Maxar Technologies (MAXR +0.00%) have gotten crushed today, down 13.5% as of market close, after the company reported first-quarter earnings results. The space tech specialist also said it had scored a contract to build satellites for an undisclosed customer.
So what
Revenue in the first quarter came in at $381 million, which led to a net loss of $48 million, or $1.30 per share. Adjusted EBITDA was $77 million. The company noted that it recognized $18 million in charges related to COVID-19, as well as another for $14 million due to "a recent design anomaly detected in a final satellite test procedure." Excluding those charges, Maxar's net loss would have been $16 million and adjusted EBITDA would have been $109 million.
Image source: Maxar.
"Our results this quarter reflect progress on our multi-year strategy to strengthen our company and position it for revenue, profit and cash flow growth," CEO Dan Jablonsky said in a statement. "Importantly, we closed the MDA divestiture, which helped improve our balance sheet."
Now what
On the conference call with analysts, CFO Biggs Porter said Maxar was reducing its adjusted EBITDA guidance for 2020 by $30 million to an expected range of $370 million to $410 million due to impacts from the novel coronavirus pandemic. Maxar had approximately $500 million in liquidity at the end of the quarter and the company has no significant debt maturities until the end of 2023.
Total revenue for the year should be roughly flat, including both the Earth intelligence and space infrastructure segments.
