Before we begin to discuss the results for the year, I thought it would be helpful to expand on a few key activities took place during the fourth quarter.
First, we issued 1 billion in 2023 notes and the closed on the sale of our Palo Alto real estate and sale lease transaction during December. Net proceeds received from the real estate no transactions were used to repay all the borrowings that were outstanding at September 30, 2019 under revolving credit facility and Term Loan A, as well as certain fees and expenses related to the offering on the notes. This transaction also extended our maturities to better align with our forecasted cash flow stream.
Second, we entered into a definitive agreement to sell MDA for CAD $1 billion. The plan to use the proceeds from this sale, net of expenses in any reserve for contingencies to reduce leverage and continue to improve our capital structure. The transaction included all of MDAs Canadian businesses, it is important to note that as a result of this sale, the results of MDA segment had been classified as discontinued operations and the financial statements for all periods presented.
Also, we resegmented the way we report our results, throughout 2019 we implemented strategic initiatives to stabilize and position the company for growth. Part of this included taking a look at how we view our businesses, particularly in light of Dan's appointment as CEO of Maxar in January, which solidified our view during the fourth quarter, which resulted in a resetting phase of our business units into three segments; earth intelligence, space infrastructure and MDA.
Our legacy imagery and services business excluding the radar imagery business that was a part of the MDA transaction are now included in what is called the earth intelligence segment.
Our legacy space system segment included the results of the historical SSL/Space solutions business as well as MDA.
We have separated these out so that now the results of legacy SSL are reflected as a space infrastructure segment and continuing operations, while MDA and the radar imagery businesses are now included in discontinued operations. Also included in discontinued operations or taxes and certain corporate costs which align with MDA as a legal entity is worth noting that as a part of putting MDA in discontinued operations, it is now accounted for as if it were a totally separate enterprise. This means that former inner segment and intercompany eliminations related to MDA are no longer reflected in our consolidated financials.
Finally, in 2018 our auditors flagged material weaknesses in our internal controls over financial reporting. This was largely attributable to the amount of change being managed in 2018 which was our first year under SOX requirements. We initiated a remediation plan during the year and are happy to report that these material weaknesses have been remediated and are reflected as such in our 10-K.
Please turn to Slide 13 where we present year-over-year comparisons for Q4 and full year of 2019 results. Total company revenues declined 2% year-over-year in the quarter due to the decline in the space infrastructure segment, partially offset by an increase in Earth's intelligence. Adjusted consolidated EBITDA margin increased 770 basis points year-over-year driven by higher margins in both segments, the detail of which I will go into in a moment.
Corporate and other expenses were higher year-over-year driven primarily by their retention costs at space infrastructure that I have discussed in prior quarters. These retention costs were encouraged to stabilize the workforce after strategic shifts in the last two years. We believe it has had the desired effect. The recent wins is space infrastructure also are having a very positive effect on the workforce. There was also an increase in expense as a result of a shift to certain functional cost to corporate in conjunction with our refining of our segments.
Some of these costs also shifted to space infrastructure with a corresponding reduction to earth intelligence.
GAAP EPS from continuing operations was $0.87 versus a loss of $8 18 and the fourth quarter of 2018 driven largely by the impairments taken in Q4 of 2018 related to the continued decline in the overall GEO comsat business environment and a large drop in the stock price during Q4 2018 as well as the loss of Worldview-4 satellite.
For the full year 2019 revenues declined 8% driven by lower volumes and space infrastructure in part offset by the growth in the earth intelligence segment. Adjusted EBITDA margin increased 80 basis points driven by higher margin in both segments. EPS from continuing operations was $1.38 versus a loss of $15.03 last year driven by the Worldview-4 insurance company -- insurance recovery booked in Q2 this year in addition to gain on the sale and lease back to the Palo Alto real estate transaction, while the loss last year was driven largely by the impairments described earlier.
Please turn to Slide 14, earth intelligence revenues increased 8% year-over-year in the quarter primarily as a result of new contract or program expansion on existing contracts across the U.S. government business partially offset by the loss of Worldview-4 revenues. This growth is very strong when you consider the fact that the loss of Worldview-4 had a negative effect on revenue.
Adjusted EBITDA margins expanded to 850 basis points year-over-year in the quarter, primarily due to the growth of our Vricon JV and cost reduction efforts, partially offset by the loss of Worlview-4 revenues which had higher margins.
With regard to Vricon, we are seeing this entity now reach the point where significant awards are coming in and the product is maturing.
For the full year 2019 earth intelligence revenues were up 2% primarily as a result of the items mentioned earlier. Adjusted EBITDA margins increased to 180 basis points also driven by the factors mentioned earlier.
In addition to a shift of certain functions to corporate.
Please turn to Slide 15, space infrastructure revenues were down 13% year-over-year in Q4 driven primarily by the decline in GEO comsat activity and EAC growth partially offset by liquidity damage charge taken in 2018 which should not recur during 2019. Adjusted EBITDA margins increased 1270 basis points driven by the lower research and development spend, cost improvement as a result of restructuring efforts and the 2018 incurred liquidated damages charge previously mentioned. This was partially offset by EAC growth during the quarter on certain projects and the higher allocation to corporate expense I referred to earlier.
For the full year 2019, space infrastructure revenues declined 14% driven largely by the factors mentioned previously. Adjusted EBITDA margins have increased 670 basis points also as a result of the factors mentioned earlier, the overall adjusted EBITDA loss of 17 million for 2019 as a market improvement over the loss of 75 million at the end of 2018 and while we are not yet where we expect this business to be, we continue to be encouraged by the progress the segment is making.
I want to pause here on space infrastructure, talk about how it has progressed despite some major headwinds. We've talked about the decline in revenues as it burns-off legacy business and to the fact that there are contracts which are underperforming. In the fourth quarter, we increased cost to one of these contracts in large part the cost growth passing through to space infrastructure from MDA there previously would have been eliminated. This included the conversion of the MDA subcontract effort to space infrastructure to a fixed price arrangement. All in the detrimental effects in the quarter attributable to MDA was 6 million.
For the full year, the negative effects of MDAs cost growth flowing through to the bottom line of continuing operations was 20 million. By converting this to a fixed price arrangement, we compensated MDA for taking risk but also significantly reduced our continuing operation risk going forward post divestiture.
Another supplier engaged in a cost type development some contract had similar overruns in 2019, but as now set to start delivering hardware which should reduce risk. Combined with some internal cost challenges while we worked our way through development efforts in early assembly, this one program had over 50 million of cost increases affecting space infrastructure segment earnings over the course of all four quarters of 2019, once again in part due to the separation of MDA, which is now treated as an independent company.
Individually each quarter, these costs increases were moderate, when you look at it from a full year standpoint, they're worth noting.
So despite over 50 million in costs hitting the bottom line from this one program, space infrastructure only had a $17 million loss. Even the conversion of the MDA effort to fix price and maturing of the other subcontract work past the development phase there's real opportunities for future improvement in space infrastructure results.
New contract wins continue to support the business base combined with improved performance on new business will be our other critical success indicators.
Please turn to Slide 16, moving back to results quarter-over-quarter net loss from discontinued operations net of tax from the MDA settlement was 10 million in Q4 '19 compared to a loss of 456 million in Q4 2018 primarily driven by a goodwill impairment taken in this segment in Q4 of 2018. Also impacting these results was decline in volume 2019 which decreased revenues and costs.
Net income from discontinued operations, net of tax from the MDA segment was 26 million for the full year 2019 compared to a net loss of 377 million in 2018 largely driven by the factors mentioned previously.
In addition to the expected wind down in the RCM program and a 32 million reserve contingency recorded in Q4 of 2019.
Please remember that discontinued operations include taxes and certain corporate costs associated with MDA as legal entity and that these numbers are not directly comparable to what we previously indicated MDAs adjusted EBITDA was expected to be for 2019. I will put this in more context in just a moment.
Please turn to Slide 17, this slide bridges a reported consolidated adjusted EBITDA for continuing operations, the way we previously guided our results which had included MDA as a continuing business. We're presenting this for you to give investors a full picture of 2019 adjusted EBITDA against the guidance given throughout the year. There are various ways to look at this, but MDA is actual EBITDA was 81 million compared to 85 million in our guidance. The rest of the company was 416 million compared to 425 million on our guidance.
[Indiscernible] below guidance performance continuing operations is more than explained in the fourth quarter by the $6 million effect of higher share price on certain comp expense and cost increases at space infrastructure related to MDA subcontract work. Please note this will be the last time we present this view over our business, from now on, we will give guidance and report just in our continuing operations under the new segmentation as previously described.
Please turn to Slide 18, company generated 175 million in operating cash flow this quarter and invested 115 million in CapEx and intangibles.
For the full year, we generated 317 million in operating cash flow and spent 321 million on CapEx and intangibles. We outperformed the middle of our prior guidance on an operating cash flow largely due to improved cash receipts on new business at space infrastructure sound which accelerated in the 2019 from 2020. We spent less on CapEx in our prior guidance as a result of good discipline and the time of expenditures which also had some carry over to 2020. Space infrastructure generated solid cash flow in the quarter and consumed 75 million for the full year as recent new award activity had a positive effect.
As a reminder, let me discuss cash interest payments in the fourth quarter 2019 and what that means going forward in the 2020. Q1 of 2019 included a doubling up of interest that added 42 million of cash outflow in that quarter relative to the norm. We paid a full quarters worth of cash interest in Q2 and Q3. We'd previously entered a referral feature on our debt or we did not have to pay interest in the first quarter which led to the doubling up in Q1 of this year of 2019.
However, in connection with the refinancing in Q4, we repaid 12 million on accrued interest on the Term Loan A and revolver.
Going forward interest payments on 2023 notes begin in June, 2020 are payables semi-annually.
We will not have the deferral feature on these notes that we did previously and we'll pay interest in the fourth quarter of 2020 and going forward.
Please turn to Slide 19, we finished the quarter with consolidated net debt of roughly 2.9 billion down 220 million from Q3 as a result of our de-leveraging efforts during the quarter.
Our bank to fund leverage ratio end of the quarter at approximately 5.0 up roughly one 10th of a turn from Q3 as trailing 12-month bank adjusted EBITDA declined due to the roll off of add backs allowed for under the credit agreement.
Importantly, we remain well below our covenants. We had roughly 587 million of liquidity at the end of the quarter via a combination of cash on hand and availability on our credit facility.
Please turn to Slide 20, as mentioned earlier, we closed on our sale leaseback transaction on our Palo Alto manufacturers late during the fourth quarter. We used the net proceeds to retire our 2020 maturities. We're happy with the execution on our delevering strategy during the year. We plan to use the net proceeds received from the MDA sale once closed to pay down debt, which will bring down our current debt levels significantly.
Looking into the future, we expect increased cash generation in future years from expansion and adjusted EBITDA and lower CapEx as our investment in the Worldview Legion constellation will continue for two more years after which we will be positioned say a much greater free cash flow to delever.
Please turn to Slide 21, from a revenue perspective, we expect earth intelligence to be roughly flat year-over-year despite 40 million headwind from the burn-off of the deferred revenue in 2020.
We also expect flattish revenue in space infrastructure in 2020 as we see the revenue declines in this segment beginning to abate after several years of decline given the awards we received in 2019.
At this point, approximately 75% of space infrastructure 2020 revenue is in backlog, which makes intercompany eliminations to be approximately 80 million as SI continues to work on the Legion program, taking in total, we'll expect consolidated revenues to be roughly flat in 2020.
Moving on to adjusted EBITDA guidance, we expect earth intelligence margins to be between 47% to 49%, which is roughly flat when normalizing for the deferred revenue burn-off.
We expect space infrastructure to be roughly breakeven. We'll expect intercompany eliminations to be approximately 25 million and corporate to other expenses to be approximately 65 million, expects a decline in corporate and other expenses in 2020 is largely driven by the roll-off of the one-time retention cost of space infrastructure previously mentioned.
In total, we expect consolidated adjusted EBITDA to be between 400 million and 440 million this year. Keep in mind this stock comp expense, which is embedded at the segment level as we saw during the fourth quarter of 2019 stock comp expense could fluctuate depending on performance of our share price. And operating cash flow, we expect the range of 150 million to 250 million excluding transformation and restructuring costs, which we expect to be immaterial this year.
We expect CapEx for the year to be in the range of 275 million to 300 million excluded capitalized interest of roughly 40 million.
While 2020 operating cash flow and CapEx reflect the carryover effect so the favorable time and the cash receipts and expenditures in 2019.
We expect depreciation and amortization, roughly 335 million this year. Interest expense is expected to be in the range of 165 million to 185 million and net interest expenditures are expected to come in at roughly 210 million this year, with approximately 40 million of that capitalized.
We continue to forecast roughly 0% effective tax rate as it benefit to our NOL carry forward, divesting of shares will increase, our share accounts slightly to 62 million.
Please turn to Slide 22, I'd like to revisit the discussion we had during our third quarter earnings call back in November of last year about how we see cash adjusted EBITDA and free cash flows playing out over the next several years at least as we see it today.
As you'll recall, we suggested that we saw a path for 200 million and adjusted cash EBITDA growth and 500 million in free cash flow growth by 2022 to 2023 time period relative to 2019 guidance after normalizing for 120 million in deferred revenue and 183 million in insurance proceeds from the Worldview-4 loss.
We then went on to say at the time of the MDA transaction that we expected the outlook to come down by 50 million for both EBITDA and cash flow after the divestiture was complete.
So starting with the cash adjusted EBITDA in the left-hand column of this slide, we were expecting at the time of the third quarter call roughly 390 million in cash adjusted EBITDA, which was the 510 million or greater guidance less than 120 million in deferred revenue with that we added several items most notably the growth in earth intelligence post the launch of Legion, that leads to roughly 540 million in cash adjusted EBITDA in that 2022 to 2023 timeframe after the MDA sale.
Right column gets you to the same bottom-line number in that timeframe but shows you how to get there when starting from our 2019 actual results continuing operations. We start with 300 million in cash adjusted EBITDA, which is the 416 million we reported less than 120 million in deferred revenue for that we're adding Legion driven growth in earth intelligence and then in turn and profitability in space infrastructure.
Importantly, we encourage 16 million in negative EACs in 2019 including the one program I discussed earlier that we do not expect to recur as well as 25 million in retention costs that we don't expect to occur.
We also expect continue to see other growth across the company. When wrapped altogether, we continue to see 540 million in cash adjusted EBITDA in that 2022, 2023 timeframe.
Please turn to Slide 23, turning now to the free cash flow outlook, similar setup to the prior slide, with the left-hand column representing what we discussed on the third quarter call as well as the update we provided in the MDA divesture announcement. Starting at the top, the midpoint of our cash flow guidance excluding the 183 million insurance proceeds call for cash consumption of 216 million.
From there we guided to 500 million in cash flow growth driven by reduction in CapEx, retention and restructuring payments as well as EBIT growth across the business. We did reduce that outlook by 50 million to account for the MDA transaction which resulted at 450 million cash swing by the time we get out to that 2022, 2023 timeframe, all that gets you to 190 million in free cash flow.
Now the right-hand column here gives you our current outlook building from 2019 actual results continuing operations. And as you see, the end result is the same, 190 million of free cash and that 2022, 2023 time period. We start with the 240 million cash consumption, again normalized for the 183 million in insurance proceeds and net of that a decline in CapEx retention, restructuring and cash interest costs as well as EBITDA growth from the business.
Importantly, this outlook has space infrastructure generating a modest amount of positive cash flow assuming roughly 75 million in 2019.
And finally, please note that we have set aside 70 million for negative working capital with timing, even the difficulty of rejecting collections of payments step far out with any precision. Wrapped together we see 430 million in cash flow growth, which brings us to the same target a total of 190 million of free cash flow in the 2022, 2023 time period.
As we have said before, we remained committed to the CapEx holiday and would take something truly compelling to change that.
So to summarize my comments, we have grown earth intelligence despite the loss of Worldview-4 and have positioned it for further growth. We've operated near break even in space infrastructure despite the challenges of the development program and are building a sound base for the future. We outperformed on cash flow and delevering actions and have a clear path to future leverage improvement.
With that, I'd like to ask the operator to remind listeners how to queue up for questions and to open up the line.