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MDA reports first quarter 2012 results

May 01, 2012

Richmond, B.C. - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today reported financial results for the quarter ended March 31, 2012.

For continuing operations, operating earnings¹ this quarter increased to $29 million, or $0.92 per diluted share, compared to $27 million ($0.65 per diluted share) for the first quarter of 2011. Net earnings were $33 million ($1.05 per diluted share), up from $28 million ($0.69 per diluted share) for the first quarter of 2011. Revenues were $172 million compared to $206 million for the first quarter of last year. Excluding pass-through items, first quarter revenues were comparable year over year. Funded backlog at March 31, 2012 was $765 million (December 31, 2011 - $805 million).

The Company paid a semi-annual dividend of $0.65 per common share in the quarter, representing a 30% increase in the annualized dividend rate over last year.

Financial Highlights

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

Three months ended
March 31, 2012

Three months ended
March 31, 2011

Results from continuing operations






Operating earnings1



Operating earnings per share1, diluted



Net earnings



Net earnings per share, diluted






Results from discontinued operations



Gain on sale of discontinued operations, net of income taxes






Weighted average number of common shares outstanding:











1 See section "Non-IFRS Financial Measures" in this earnings release.
2 On October 4, 2011, the Company repurchased and cancelled 9,433,962 of its common shares at a price of $53 per common share under a substantial issuer bid. The shares repurchased represented approximately 22.9% of the common shares outstanding at October 4, 2011.

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, May 1, 2012 at 2:30 p.m. Pacific (5:30 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:

Telephone replay will be available from May 1, 2012 5:00 p.m. PDT (8:00 p.m. EDT) to May 15, 2012 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: 64484090

Related Websites:

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
March 31, 2012

Three months ended
March 31, 2011

Operating earnings from continuing operations



Items affecting comparability:



Share-based compensation



Fair value adjustments on equity forward contracts



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



Foreign exchange gain on translation of intercompany



Foreign exchange loss on conversion and
  translation of foreign cash balances



Tax on items affecting comparability



Net earnings from continuing operations



Forward-Looking Statements

Wendy Keyzer

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