Press Release Details

  • NYSE: MAXR
  • TSX: MAXR
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MDA reports second quarter 2012 results

July 26, 2012

Richmond, BC - MacDonald, Dettwiler and Associates Ltd. (TSX: MDA), a provider of essential information solutions, today reported financial results for the quarter ended June 30, 2012.

For continuing operations, second quarter operating earnings¹ were $29 million ($0.91 per share) on revenues of $164 million. This is compared to operating earnings of $29 million ($0.70 per share) and revenues of $195 million for the second quarter of last year. Revenues in 2012 included lower volume of pass-through items.

Net earnings under IFRS for the second quarter were impacted by large, unrealized mark-to-market adjustments, primarily due to the effect of a sharp rise in the Company’s share price at quarter-end on the revaluation of share-based compensation awards. Furthermore, a large portion of these non-cash fair value adjustments included in share-based compensation expense was non-deductible for income tax purposes, which significantly reduced the amount of related income tax recovery. After giving effect to these accounting adjustments, the Company reported a net loss under IFRS of $1.0 million, or ($0.03) per share, for the second quarter of 2012.

On June 26, 2012, the Company signed a definitive agreement to acquire 100% of Space Systems/Loral, Inc., the leading global provider of commercial communications satellites. The acquisition, subject to regulatory approvals, will transform MDA into a leading global communications and information company and provide MDA with critical mass in the U.S. market.

Funded backlog at June 30, 2012 was $656 million (March 31, 2012 - $765 million). Backlog at June 30, 2012 does not include the recently announced contracts valued at over $125 million to provide communications payload solutions.

Financial Highlights


($ millions, except per common share amounts)

Three months ended
June 30,

Six months ended
June 30,

2012

2011

2012

2011


Results from continuing operations

 

 

 

 

Revenues

164.0

194.9

336.0

401.4

Operating earnings1

28.9

28.8

58.1

55.6

Operating earnings per share1, diluted

0.91

0.70

1.82

1.35

Net earnings (loss)

(1.0)

31.6

32.4

59.9

Net earnings (loss) per share, diluted

(0.03)

0.77

1.02

1.45

 

 

 

 

 

Results from discontinued operations

 

 

 

 

Gain (loss) on sale of discontinued operations,
    net of income taxes

-

(2.0)

-

54.2

   

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

(millions)

 

 

 

 

Basic2

31.8

41.2

31.8

41.1

Diluted2

31.8

41.2

31.8

41.2


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.



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, July 26, 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
In Toronto, dial 1-647-427-7450

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

Telephone replay will be available until August 9, 2012 at the following numbers:

Toll free, International, dial 1-855-859-2056
In Toronto, dial 1-416-849-0833
Pass Code 83415652

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. The Company defines operating earnings as net earnings excluding the after-tax effects of 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
June 30,

Six months ended
June 30,

2012

2011

2012

2011


Operating earnings from continuing operations

28.9

28.8

58.1

55.6

Items affecting comparability:

 

 

 

 

Share-based compensation

(31.9)

(1.5)

(28.7)

(5.3)

Fair value adjustments on equity forward contracts

6.0

1.8

5.1

6.4

Transaction costs related to proposed acquisition

(1.9)

-

(1.9)

-

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

0.0

(0.8)

(0.3)

(1.3)

Foreign exchange gain (loss) on translation of
   intercompany balances

(4.1)

1.1

(0.7)

2.5

Foreign exchange gain (loss) on conversion and
   translation of foreign cash balances

0.0

1.8

(1.2)

1.8

Tax on items affecting comparability

2.0

0.4

2.0

0.2


Net earnings (loss) from continuing operations

(1.0)

31.6

32.4

59.9




Forward-Looking Statements






www.sedar.comwww.mdacorporation.com





Wendy Keyzer


wendy@mdacorporation.com


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