Press Release Details

  • NYSE: MAXR
  • TSX: MAXR
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MDA reports third quarter 2011 results

October 28, 2011

Richmond, B.C. - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today reported financial results for the quarter ended September 30, 2011.

For continuing operations, third quarter 2011 revenues increased to $182 million compared to $167 million for the same period of last year. Operating earnings¹ were $30 million ($0.73 per diluted share), up from $23 million ($0.55 per diluted share) for the third quarter of 2010.

Funded order backlog at September 30, 2011 was $856 million compared to $833 million at June 30, 2011. Third quarter booking activity was robust, with particular strength from U.S. operations and medical robotics. Order backlog does not include the substantial build phase of the RADARSAT Constellation Mission.

Subsequent to September 30, 2011, the Company purchased for cancellation $500 million in value of its common shares (22.9% of outstanding shares) under a substantial issuer bid. The issuer bid will have an accretive effect on earnings per share going forward. After giving effect to the repurchase, 31.8 million common shares remained outstanding.

Financial Highlights


($ millions, except earnings per diluted common share amounts)

Three months ended September 30,

Nine months ended September 30,

2011

2010

2011

2010

 

 

 

 

 


From continuing operations

 

 

 

 

Revenues

181.5

166.5

582.9

479.6

Operating earnings1

30.3

22.7

85.8

68.2

Operating earnings per share1, diluted

0.73

0.55

2.08

1.66

 

 

 

 

 

Net earnings

 

 

 

 

    Continuing operations

40.5

22.0

100.4

55.9

    Gain (loss) on sale of discontinued operations

(1.2)

-

53.0

-

    Discontinued operations

-

18.6

-

37.7

    Total

39.3

40.6

153.4

93.6

 

 

 

 

 

Net earnings per share, diluted

 

 

 

 

    Continuing operations

0.98

0.54

2.44

1.36

    Gain (loss) on sale of discontinued operations

(0.03)

-

1.29

-

    Discontinued operations

-

0.45

-

0.92

    Total

0.95

0.99

3.72

2.28

   

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

(millions)

 

 

 

 

    Basic

41.2

41.0

41.2

40.9

    Diluted

41.2

41.1

41.2

41.0

 

 

 

 

 


1 See section "Non-IFRS Financial Measures" in this earnings release.


http://www.mdacorporation.com/corporate/investor/financial-reports

About MDA

MDA provides advanced information solutions that capture and process vast amounts of data, produce essential information, and improve the decision making and operational performance of business and government organizations worldwide.

Focused on markets and customers with strong repeat business potential, MDA delivers a broad spectrum of information solutions, ranging from complex operational systems, to tailored information services, to electronic information products.

The Company's common shares trade on the Toronto Stock Exchange under the symbol TSX:MDA.

Investor/Analyst Conference Call Today

MDA President and CEO Daniel Friedmann and Executive Vice President and CFO Anil Wirasekara will be available on a Conference Call today, October 28, 2011 at 1:30 p.m. Pacific (4:30 p.m. Eastern) to explain the financial results of the Company and to answer questions.

To participate, dial 1-888-231-8191 in Canada or the United States
International: 1-647-427-7450

The Conference Call will also be Webcast live and archived at:
http://www.mdacorporation.com/corporate/investor/events

Telephone replay will be available from October 28, 2011 5:00 p.m. PDT (8:00 p.m. EDT) to November 11, 2011 8:59 p.m. PDT (11:59 p.m. EDT) at the following numbers:

Toll free: 1-855-859-2056
Toronto: 1-416-849-0833
Pass Code: 92435654

Related Websites:
www.mdacorporation.com

Non-IFRS Financial Measures

In addition to results reported in accordance with IFRS, the Company discloses operating earnings and operating earnings per share as supplemental indicators of its financial performance. Operating earnings is defined as net earnings adjusted for specified items affecting comparability, including share-based compensation, fair value adjustments on financial instruments not subject to hedge accounting, write-downs and other gains or losses. Operating earnings per share is calculated using diluted weighted average shares outstanding. The Company uses operating earnings and operating earnings per share as a more meaningful way to compare financial results from one period to another.

Operating earnings and operating earnings per share do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. The Company cautions readers to consider these non-IFRS financial measures in addition to, and not as an alternative for, measures calculated in accordance with IFRS.


($ millions)

Three months ended September 30,

Nine months ended September 30,

2011

2010

2011

2010


Operating earnings from continuing operations

30.3

22.7

85.8

68.2

Items affecting comparability:

Share-based compensation

13.7

(6.9)

8.4

(16.3)

Fair value adjustments on equity forward contracts

(3.5)

2.7

2.8

2.9

Foreign exchange timing differences on certain
project-related foreign exchange forward contracts
not subject to hedge accounting

3.1

3.3

1.8

(3.5)

Foreign exchange loss on translation of
intercompany balances

(6.2)

-

(3.6)

-

Foreign exchange gain on conversion and
translation of foreign cash balances

3.7

-

5.5

-

Tax on items affecting comparability

(0.6)

0.2

(0.3)

4.6


Net earnings from continuing operations

40.5

22.0

100.4

55.9




Forward-Looking Statements


www.sedar.comwww.mdacorporation.com





Wendy Keyzer


wendy@mdacorporation.com


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