Press Release Details

  • NYSE: MAXR
  • TSX: MAXR
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MDA reports first quarter 2013 results

May 02, 2013

Richmond, BC - MacDonald, Dettwiler and Associates Ltd. ("MDA" or the "Company") (TSX: MDA), a global communications and information company, today reported financial results for the quarter ended March 31, 2013.

Operating earnings1 this quarter were $41.8 million, or $1.30 per share, on consolidated revenues of $428.6 million. This is compared to operating earnings of $28.9 million ($0.91 per share) and consolidated revenues of $172.0 million for the first quarter of 2012. The results for this quarter included three months of activity from Space Systems/Loral (“SSL”), which the Company acquired on November 2, 2012.

Order booking activity was strong, resulting in record order backlog of $3.0 billion at March 31, 2013 (December 31, 2012 - $2.2 billion) with increases across all markets. Notably, the Company signed contracts with the Canadian Space Agency to build, launch and provide initial operations for the RADARSAT Constellation Mission and to support Canada’s robotic elements on the International Space Station through to December 2015. As well, the Company signed a contract with a subsidiary of EchoStar Corporation to build Jupiter 2/EchoStar XIX, a Ka-band satellite that will help meet the growing demand for the customer’s high-speed satellite Internet service in North America.

The Company’s net earnings under IFRS for the first quarter of 2013 were impacted by certain large, non-operational expenses. As a result, net earnings this quarter were $2.2 million ($0.07 per share) compared to $33.2 million ($1.04 per share) for the first quarter of 2012.

On March 27, 2013, the Company closed its public offering of 4,145,750 common shares at a price of $69.40 per share for gross proceeds of $287.7 million. The offering included the exercise in full of the over-allotment option of 540,750 common shares by the underwriters. Net proceeds have been used to reduce bank indebtedness, providing additional capacity to support future growth initiatives.

Financial Highlights


($ millions, except per common share amounts)

Three months ended
March 31, 2013

Three months ended
March 31, 20122


Consolidated revenues

428.6

172.0

Operating earnings1

41.8

28.9

Operating earnings per share1, basic and diluted

1.30

0.91

Net earnings

2.2

33.2

Net earnings per share, basic and diluted

0.07

1.04


Weighted average number of common shares outstanding:

(millions)

Basic and diluted

32.1

31.8


1See section "Non-IFRS Financial Measures" in this earnings release.
2Comparative prior period information has been restated for retrospective application of new amendments to IAS 19, Employee Benefits. The International Accounting Standards Board amended IAS 19 for annual accounting periods beginning January 1, 2013, with retrospective application.


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

About MDA

MDA is a global communications and information company providing operational solutions to commercial and government organizations worldwide.

MDA's business is focused on markets and customers with strong repeat business potential. In addition, the Company conducts a significant amount of advanced technology development.

MDA's well-established global customer base is served by more than 4,500 employees operating from 11 offices located in the United States, Canada, and internationally.

The Company's common shares trade under the symbol TSX:MDA.

Investor/Analyst Conference Call

MDA President and CEO Daniel Friedmann and Executive Vice President and CFO Anil Wirasekara will be available on a Conference Call on Friday, May 3, 2013 at 11:00 a.m. Pacific (2:00 p.m. Eastern) to explain the financial results of the Company and to answer questions.

To participate, dial toll-free 1-888-390-0605
In Toronto, dial 416-764-8609

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

Telephone replay will be available until May 17, 2013 at the following numbers:
Toll free, International, dial 1-888-390-0541
In Toronto, dial 416-764-8677
Password: 528442

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, where applicable, non-operational income and expenses, share-based compensation, fair value adjustments on financial instruments not subject to hedge accounting, and other gains or losses. The use of the term “non-operational income and expenses” is defined by the Company as those that do not impact operating decisions taken by the Company’s management and is based upon the way the Company’s management evaluates the performance of the Company’s business for use in the Company’s internal management reports. Operating earnings per share is calculated using diluted weighted average shares outstanding and does not represent actual earnings per share attributable to shareholders. The Company believes that the disclosure of operating earnings and operating earnings per share allows investors to evaluate the operational and financial performance of the Company’s ongoing business using the same evaluation measures that its management uses, and is therefore a useful indicator of the Company’s performance or expected performance of recurring operations.

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, except per common share amounts)

Three months ended
March 31, 2013

Three months ended
March 31, 2012


Operating earnings

41.8

28.9

Operating earnings per diluted share

1.30

0.91

Items affecting comparability:

Business acquisition costs

(1.9)

-

Amortization of acquisition related intangible assets

(7.3)

-

Write-off of bank facility fees

(3.1)

-

Share-based compensation

(30.5)

3.3

Fair value adjustments on equity forward contracts

-

(0.9)

Foreign exchange timing differences on certain project-

related foreign exchange forward contracts not subject

to hedge accounting

0.2

(0.2)

Foreign exchange gain (loss) on translation of

intercompany balances

(0.4)

3.4

Foreign exchange loss on translation of foreign currency

long-term debt and cash balances

(3.5)

(1.3)

Tax on items affecting comparability

6.9

0.0


Net earnings

2.2

33.2




Forward-Looking Statements






www.sedar.comwww.mdacorporation.com





Wendy Keyzer


wendy@mdacorporation.com


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